How Can You Increase Revenue From Mobile Apps

Original Source — https://medium.com/swlh/how-can-you-increase-revenue-from-mobile-apps-e265d3351417

“Mobile business apps are becoming not only the new digital hub but also the bridge to the physical world. That’s why they will affect not only your digital operations but also transform your entire business”, said Thomas Husson, Vice President, and Principal Analyst at Forrester Research.

Mobile apps have completely revolutionized the business world. The user-friendly and intriguing features of these incredible apps attract one and all. This is why consumers NOW are using mobile devices more than ever and are more comfortable in doing in-app purchases, which ultimately increases the overall mobile app revenue.

In 2016, the total mobile app revenue from mobile app downloads, advertising, and in-app purchases was $88 billion — this number is projected to pass $188 billion in 2020, says Statista.

With so many mobile apps emerging in the market, the competition is getting tougher. So, in order to increase revenue from mobile apps, your business needs to compete in the market space. It is important that you adopt the right mobile trend that compels your customers to spend more money.

Ways to increase revenue via Mobile Apps

In order to increase revenue from mobile business apps and make it a success, it is essential that you understand the customer’s needs. You must figure out what they want and how they want it. Here is the big secret,

“Exceed your customer’s expectations. If you do, they’ll come back over and over. Give them what they want — and a little more” Sam Walton.

Since many consumers are using smartphones, you need to take advantage of this and compel them to invest more money through it. In this blog, I have discussed the ways using you can let your customers spend more through your mobile apps. Here are these.

Implement a Customer Loyalty Program

Implementing customer loyalty programs enables you to keep your customers coming back to you which lets your customers spend more money. This greatly helps to increase revenue via mobile apps. But, before you implement this strategy, you need to design an alluring loyalty program.

Research says that increasing retention by just 5% through customer loyalty programs can boost revenue by 25 to 95%.

Loyalty programs are great for your companies as they encourage repeat purchases. Moreover, it is cheaper to sell something to the existing customers than it is to acquire new ones. Undoubtedly, the type of program that you choose has a huge impact on customer retention.

You can also reward your customers by giving them a discount or free item after they complete a certain number of purchases. This way you compel users to keep visiting your app time and again thus assisting in increasing revenue via mobile apps.

Let’s say for example if there are two customers and each of them makes 20 transactions, but one spends a total of $70 and the other spends $1,200. Don’t you think the second customer who spends more should get a better reward?

Another way by which you can make your program more effective is by giving your customers more rewards based on every $800 they spend in a year. Every time the consumers reach the threshold, the benefits would get better.

Implementing this strategy encourages your customers to spend more thus resulting in drawing more mobile app revenue. It also keeps your customers happy as they get rewards for choosing your services.

You can increase revenue for your business through mobile apps too. For this, you need to hire a mobile developer to build well-tailored mobile applications suiting your business requirements.

Source

Render a Personalized Customer Experience

It’s very clear that having a mobile app gives you more benefits that you wouldn’t get if you just had a brick and mortar store location. Let me explain this to you in detail.

Let’s say for example that you have a physical store location and a customer comes in. They keep checking around the same sections of the store but they do not buy anything.

Now, you won’t know about this and so you won’t be able to do anything.

Having mobile business apps allow you to see the customer browsing history. Based on this data, you can monitor and analyze customer behavior. Accordingly, you can offer a personalized experience for attracting more users in order to increase revenue from mobile apps.

According to research cited by McKinsey, “Organizations that leverage customer behavior data to generate behavioral insights outperform their peers by 85% in sales growth and more than 25% in gross margin. ”

Netflix and Amazon are the two best examples. Both of these companies have built their user interaction around customer behavior data and analytics.

• 75% of Netflix viewer activity is driven by recommendations. (Source)
• 35% of Amazon’s sales are generated through their recommendation engine (Source)
• Netflix’s recommendation system saves the company an estimated $1Billion per year through reduced churn (Source)

Tracking the behavior of your customers through your mobile business apps gives them a more personalized shopping experience. As you can clearly see, rendering a personalized shopping experience helps to increase revenue from mobile apps.

“If your message is irrelevant to them, people not only tune it out but think less of your brand for not understanding their needs.”
— Kerry O’Shea Gorgone

Brand Yourself

People prefer to choose brand names these days. Needless to say but it’s true, if your business has a well-established brand, people will certainly spend more money. Doing this will surely increase revenue via mobile apps.

But how? Big brands are trusted by one and all. So, the consumers won’t question your credibility and will assume that everything you make is great. This allows the customers to spend more which ultimately increases the mobile app revenue.

“Your brand is what other people say about you when you’re not in the room”, said Jeff Bezos, Founder of Amazon.com.

But brand building takes time. It is not a thing that can be implemented overnight. You can build a brand by having a strong presence on social media. For this, you need to ensure that you have a lot of followers and high engagement.

By encouraging a lot of ratings, reviews, and downloads from the app store, you can create a brand for your business and increase revenue from mobile apps. If your users find that there are many people who are satisfied with your app and brand, then surely they assume that they’ll be satisfied too.

Thus, the brand building draws more consumers to your business and increases mobile app revenue. Look at a brand like Apple. The company’s services division includes its App Store, Apple Pay, iTunes, cloud services and more.

Every time a new version of its product is out in the market, the consumers want to grab it at the earliest. This is because Apple is a brand and it is what matters the most to the consumers now.

It is now the second biggest segment for Apple after the iPhone, with revenue of $37 billion in 2018, and Morgan Stanley expects it to top $100 billion in 2023. The projected growth speaks to the power of the Apple brand.

Apple tops Forbes’ annual look at the world’s most valuable brands for the ninth straight time. The brand of the tech giant is worth $205.5 billion, up 12% over last year. It is the first time a brand crossed the $200 billion thresholds.

You can also create highly engaging apps for your business to build brand image so that your consumers want to spend more on you.

Final Words,

By now, I am pretty sure that you have a clear idea of the ways to increase revenue from mobile apps. So, by implementing a customer loyalty program that rewards people for buying things from you, rendering a personalized shopping experience after tracking the customer’s browsing history and creating a brand for your company, you can surely compel your users to spend more thus enabling your business to increase revenue via mobile apps.