Pricing strategy of an app is the way you earn money off the app. The pricing strategy plays an important role in determining the success of your app, in terms of a number of downloads and users retained.
There are millions of apps available online, with each having a business model of its own. Pricing an app isn’t as easy as it seems. In this article, we will go through a few of the most important factors that contribute to the pricing strategy for your app.
The Perceived Value of the App Should be Greater Than its Actual Price
Whatever be your business model, there would always be competition in the market. But you have to ensure that your products are pricing as per the market trends. Of course, the customers should feel that the price you would be charging them is fair and competitive.
Research About the Willingness of the Customers to Pay for an App
You should study what price attracts the customers to your product. Eventually, this can be done by testing your product at different price points and see how the markets respond. However, it is important to stay competitive with regular upgrades and newer functionalities.
Build a Product Which can Solve a Real-World Problem
The need for a product makes it invaluable. So, you have to work on an app that solves an everyday issue that your customers face. You have to stay relevant with regular updates and added features too. Also, the app development cost would also have to be considered.
Plan Your Marketing Strategy Well
The pricing strategy should be back with an intelligent marketing strategy. In today’s world, marketing plays an important role in the success of a new product. You can leverage the reach that social media has to send your message to a larger audience. You can check how Netflix has done marketing.
Make Sure Your App Product is Affordable
Even if you roll out an excellent product which would prove beneficial for customers, affordability is a crucial issue that has to be addressed. Lower pricing attracts new customers to your app.
Know Your Product and Target Customer Groups Well
The “one-size-fits-all” approach might not work for all apps. Things which have worked for other apps might not fit this app. Therefore, you should know your product well and be prepared to think creatively.
Understand the Business Problem Well
If you want a lot of users in a short time, consider giving the initial version of the app for free. You can charge the users for the required additional features. Users would not want to make repeated payments for each of your updates. Also, paid apps should provide sufficient value for the money charged.
Apps that provide similar services have grown tremendously. Your pricing strategy would be the make-or-break factor, as it gives an indication of product acceptance. It determines the success of the app. Choosing the right pricing model early gives you an edge.
Not only choosing the right pricing strategy but choosing the right service provider is also a difficult task. But, if you follow the right guidance then it will become easy.