When you own a business, it can be a challenge figuring out how to take your company to the next level in the most sustainable, profitable way. Growing your revenues and customer base doesn’t usually come easy. But if you can capitalize on a already established trend, it could help make that process much smoother. This is where mobile apps come in.
These days apps are big business. In fact, according to recent statistics, mobile apps are expected to generate 188.9 billion U.S. dollars in revenues via app stores and in-app advertising in 2020. With roughly 3.8 million apps on Google Play and 2 million in App Store, that number is hardly surprising.
4 Ways Mobile Apps Can Make More Money in Your Business
But how can this help your business to generate additional revenue or gain more customers? Here are four areas to seriously consider regardless of your business model:
1. Sell your app. The most straight forward way an app can provide your business with additional streams of revenue is to sell it directly to customers. As long as your app offers some kind of tangible value that customers would be willing to pay for, you could charge a small fee. The average price of apps is around $.50 to $1.00, so it may not be such a cash cow. But, it could give your business a reliable source of passive income.
Alternatively, you could make the app free to download in its most basic form, but then offer an upgraded option as well that includes premium features or performance. This strategy works well with services that are separated into different service levels or payment tiers, such as business tools, platforms and services.
2. Market your product or services. Knowing that the demand for mobile apps is on the rise, many companies see this area as a marketing opportunity. Create a free or low cost app that your potential customers would enjoy or find useful. When potential customers download your app onto their device and use it, it will help to keep your business and its products or services in their mind.
3. Monetize your app with third-party advertisements. If you don’t want to make your customers pay to use your app, then one viable option is to make money through advertisements. Similar to website advertisements, you would generate money based on impressions or clicks. Of course, you need to consider the kind of business that you are running and whether or not third-party advertisements would be a distraction that would make your business look less professional.
4. Use your app to up-sell, cross-sell, or increase the purchase size. Your app can help your business sell more. For example, if you have an ecommerce business, offering a mobile app could simply make it easier for mobile consumers to complete their purchases. This could increase your revenue, especially if you utilize incentives to buy, such as discounts or free bonus offers.
On a more subjective note, your app can enhance customer engagement by providing a positive customer experience. You can use the app to make the order and purchase process as easy and enjoyable as possible. This can help to build brand loyalty that can ultimately lead to more sales.
In short, mobile apps offer a tremendous amount of opportunity for businesses looking to expand their reach and their revenues.