Developing a perfect mobile app is always a dream for every developer and entrepreneur. Needless to say but an app development process can be a little tricky affair. It can take a noticeable amount of time and money for an entrepreneur to get his app developed by a mobile app development company. If you too are keen on mobile app development for your business then make sure you choose the most suitable pricing strategy for cutting down on unnecessary costs and developing a perfect business app and that too in real-time.
Factors like the competition prevailing in the market, functionality and purpose of your mobile app must be taken into consideration while choosing a suitable pricing strategy for the same. Let’s understand what a pricing strategy actually is and strategically determine the best price for your mobile app.
All about Product Pricing Strategy
Pricing strategy can be defined as an activity that can help you generate revenues from your smartphone application. You can easily develop a robust mobile application by designing and implementing a suitable product pricing strategy in the initial stage itself. It may seem quite easy but developing such an app can be a complicated affair. Pricing a product can be quite overwhelming for you especially if this is the very first time you are getting an app developed for your business. You must consider the below-discussed factors prior to making a suitable product pricing strategy for your mobile application.
Human Psychology: Human behaviour has a very significant role to play in the determination of the actual price of a product. A rational customer will prefer making a comparison between two similar products majorly in terms of its quality, quantity, and price too. You as a product provider must ensure that you are providing your targeted users with the best quality products that offer more value to them as compared to the price that they will have to make for the purchase. It is also advisable for you to consider other products that are available in the market for characterizing your value proposition and ensuring that you are providing maximum value than your arch-rivals. This will enable you to make your product stand out amid the cut throat competition prevailing in the industry.
Evaluating the purchasing power of customers: A perfect product pricing strategy can be made by evaluating the purchasing power of your targeted customers. This also means that you will have to learn what your targeted audience shall be willing to pay for your product irrespective of their purchasing power. You can determine this by testing your app that is recently developed by a mobile app development company at multiple price levels and gradually receiving the response of the targeted market. You must ensure that you are reviewing the revenue models that are recurring in nature and ignoring every single aspect that is related to the revenues earned at different price levels. You will need to stay competitive by offering regular updates and adding new functionalities to your upcoming app.
Develop a user-specific product: You must ask your mobile app development company to develop a user-centric product by focusing on a specific problem that your app can resolve. Knowing your targeted audience and a specific issue that they are currently facing will help you in developing a specific mobile app for resolving that problem. This will make it easier for you to decide upon an effective price for your product. You can determine the product pricing model for your newly developed mobile application by learning about its overall cost of development that includes factors such as the actual development cost, value that your product has to offer, and its maintenance cost.
Market study: Studying the behaviour of the market is utmost important for your app. You must analyze your targeted user base by studying in detail about the competitive landscape and discovering specific opportunities where there is absolutely zero or minimal competition. You can gain a competitive advantage in the industry by getting your app developed and launched at a lower price as compared to your contemporaries. It is very substantial for you to carefully understand the behavioral pattern of a market and view the same from your targeted users’ point of view for deciding a suitable price for your product.
Sturdy marketing strategy: If you want to have a loyal customer base then make sure you are resorting to a sturdy marketing strategy instead of having an average one. An enterprise app development company can help you in developing a suitable app for your business but it is your marketing strategy that will help your app stand tall amid the strong competition prevailing in the industry. Rolling out new updates and enhancements after every 3 months is an ideal strategy for helping you retain your audience in the long-term.
Affordability: It is very crucial for an appreprenuer to offer an affordable app for the targeted customers. You must make sure that with your app you are offering great value to your users and that too at an affordable price range. You can adopt a penetration price strategy for helping your business attract new users by offering them valued products at lowest possible costs.
Types of Product Pricing Strategies for Mobile Apps
Free: Free applications are the ones that are free to download. Developing and launching these apps will let you generate income primarily through advertisements only. Free mobile apps are developed by mobile app development companies for facilitating communication as well as customer service. It is powerful tool for users to generate revenue and has a higher chances of downloads. These apps will help you drive consumer awareness and boost your user engagement too. The only drawback of this free app is that it shall require a huge customer base for generating sufficient revenue from advertisements.
Freemium: Freemium applications are the ones that will help you in attracting a lot of organic users apart from generating a generous amount of revenues. The utility of these apps will convince users to pay a decent amount. However, freemium apps require a lot of work and your enterprise app development company will be required to add regular upgrades alongside managing customer purchases.
Paid: The revenue generated from the paid apps is not directly linked with the customer interaction. Generating a lumpsum revenue is quite easy with paid apps for brands that have a lot of loyal users. These apps are unlikely to garner the attention of the prospective users owing to the price point.
Paymium: Paymium apps allow users to opt for ongoing money stream and will let you think something creative and unique for attracting customers easily. These apps can be a little time-taking and thus involve a lot of effort as the updates might generate sufficient value for the targeted customers.
Conclusion
It is very important for you to choose a perfect monetization strategy for earning sufficient revenues from your mobile app. You must ensure that your product pricing strategy meets your targeted users as well as market expectations and offer the best value and help you in the accomplishment of your business goals.
