Three steps to choosing your app monetisation strategy

As outlined in our earlier post ‘Navigating the monetisation minefield’, there is a lot of complexity and inconsistency to app store monetisation options, and so it’s important you think carefully about what will work for you.  But with all of those variations, how do you come to the right decision? We believe the key is considering who your audience are, how they will initially onboard with your app, and how it will keep them returning.

Who is your audience?

Establishing your target audience is vital to creating a successful product, and opting for everyone just isn’t enough. You need to be able to identify a segment that you can hone in on to ensure what you deliver is as effective as possible. For monetisation though, you primarily need to establish if you are working B2B or B2C:

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• B2B - If you are looking to sell to organisations and their staff, we recommend against relying solely on app store monetisation strategies as they are too restrictive.  Instead serve your product on the web with web based payment methods, and use an app to enhance/personalise your offering.
• B2C - There are many variations on B2C monetisation, so consider the following questions in detail.

How will you initially onboard them?

When monetising any product you ultimately have to persuade your customer to part with their hard earned money.  There will always be resistance to this, so consider strategies to make purchases easier and demonstrate why it is worth it. 

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• Freemium - Is there a limited service that could be offered for free forever? Users are more likely to purchase if they can directly experience the value your app brings. This can lead to a larger audience, but needs more effort in upselling to convert to paid users using the range of IAP options.
• Upfront subscription with a free trial -  If it’s all or nothing with your service, and subscription suits, a free trial still gives users the chance to experience the value of your product without paying straight away. Bear in mind though that users must agree to pay for renewal before joining the trial. This means payment details are required even if they are never charged.
• Promotions - Promotions can only be achieved on subscription model IAP or one-off purchase and we would recommend avoiding them for initial engagement in most circumstances.

How will you retain them?

Nobody wants to be a one-hit wonder. To maintain ongoing ROI and a long lasting customer base you must be able to retain those people who initially show interest in your app. First establish where your users will get the most value and engagement from your app, then combine this with monetisation options so that both you and your customer get a return.  

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• Fresh content - If you're selling content that is regularly updating and staying fresh to the general public then subscription may suit. Efforts should be focused on continuous content creation in order to ensure subscribed users see the value.
• Gamification - If you are creating a game or one driven by game principles, you are more likely to need consumable or non-consumable IAPs. These fit better with game engagement like personalisation and achievement.
• Enhancing features - If your product has enhancements that complement the base experience these can be sold as subscription or non-consumable items, depending on their purpose and value to the user.
• A problem solved - If what you offer provides a quick solution but is unlikely to grow much a one off purchase might be best. Although subscription would offer longer term ROI it’s hard to retain customers long term if value isn’t added along the way. Paying upfront can put buyers off so be careful about pricing if you choose this strategy.

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If you can establish a specific answer to each of these questions that suits the primary purpose of your app then this can lay the groundwork for your initial strategy. These questions aren’t just about establishing your ROI, they inform your functionality, marketing, and ongoing strategy that will build out your business plan as a whole. Once you are up and running you can then start to layer additional strategies to continue to grow, such as running retention promotions or adding paid for enhancement features.

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If you have an app project in mind and would like to discuss some of these options in more detail to establish your monetisation strategy get in touch with us today.

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