In-App Purchases: Tips for Turning your Engaged Users into Monetizing Users

December 1, 2014

Laura Perez

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“Tis the season of holiday cheer, sharing time with loved ones, and let’s not forget - getting your app into gear for the holiday surge.

It’s only been a few days since Thanksgiving, and we’re already seeing mobile play a significant role in the customer experience this holiday season. In between turkey comas and endless football games, it was a given that I was either scouring my shopping apps for Black Friday deals or passing time Candy Crushing (yep...still addicted).

Amazon reported that 50% more apps are purchased the week of Thanksgiving than the average week the rest of the year. This is the perfect time of year to keep the momentum going and capitalize on a captive audience with a solid in-app purchase (IAP) strategy.

Employing in-app purchases is quickly becoming a main source of revenue for mobile marketers. Read our tips on  using mobile marketing, big data, and human nature to successfully create and monetize a virtual economy as you prepare for the holidays and 2015.

Know Your Audience

Recent studies have shown a difference between in-app spending habits of Android and Apple users.

Apple users are more likely to purchase in-app than Android users. However, Android users are more likely to generate more engagement. According to recent holiday stats from IBM, there was a 25.4% year-over-year increase in purchases made from mobile devices, with iOS leading the way.

This is important to keep in mind. It should be noted, though, that while the obvious answer would be to gear an app towards Apple users, since Android makes up a large market share, the numbers alone may balance out. 

But regardless of which platform an app skews toward (if at all), following these three simple pieces of advice will help grow a virtual economy.

3 Ways To Turn Engaged Users into Monetizing Users

  1. Create Your Own Currency and Keep it Fresh. The basis of any economy is money. Whether it’s credits, stars, virtual money, or virtual pastries, it all begins here. A good way to increase an app’s actual monetization is to offer both free and premium currency. Premium currency can be earned sparingly and also purchased in-app by using actual money. The premium currency can then be used to purchase items in-app that are not otherwise available. Also, mix it up new virtual goods. Your loyal users may get a kick out of buying a holiday-themed item or power-up. This creates a fun and engaging experience.
  2. Reward Loyalty and Re-Engagements. Positive reinforcement never hurts. Rewarding your users for returning to an app frequently creates a sense of gratitude to the end-user and strengthens credibility. Daily rewards increase the longevity of an app and promotes the user to return back tomorrow to see what other reward they’ve earned.
  3. Real World Cross Promotion. Extending your app’s virtual branding into the real world creates more promotion for the app or business overall. Everyone wants to be a part of the in-crowd, and if your app has built enough of a following that they would purchase products with a brand name and/or logo on them, even better. They become walking billboards for products and expose businesses or companies to potential new users everywhere they go.

 
 
 
 
 
 
 
 
winningstrat_feature_01-1To learn more best practices for boosting your mobile marketing strategy, download our whitepaper 4 Steps to Create a Winning Mobile Launch Strategy.

 

In: Marketing, Analytics, Industry News

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