Mobile apps have different revenue sources such as subscriptions, in-app advertising, sponsorships, referral marketing, etc. Among these methods to make money through an app, in-app spendings have an important place.
The lockdowns that took place all around the world in 2020 due to the Covid-19 pandemic triggered an increase in users’ in-app spendings. In 2020, smartphone users spent approximately $111 billion on in-app purchases, subscriptions, and premium apps, which is 30% more than in 2019. 2021 started with the same uptrend. In the first half of this year, global mobile app spending reached $64.9 billion.
Therefore, every mobile app marketer has a question on their agenda: how to maximize users’ mobile app spending. In this article, we’ll explore five ways that will help you increase user spendings on your mobile application.
In-app spending is a broad concept and cannot be limited to in-app sales. Mobile marketers need to think about how to increase transactions or how to maximize players’ spending money on mobile games according to their app’s vertical. All these will help you generate app revenue.
Users’ lifetime value (LTV) is directly related to their tendency to spend money on your app. Thus, every step taken for the sake of higher LTV will affect user spendings positively. Here are some tips on how to maximize LTV.
Monetization strategy lays the foundation for a roadmap that will help you have a profitable business. Hence, you need to have a solid strategy to increase your app revenue. Here are some well-known app monetization methods that you can have a look at beforehand:
Develop your monetization strategy based on the function, features, and value propositions of your app. In this way, you can ensure that your users spend money on your mobile app.
In-app advertising is also a very effective method to increase mobile application spending. Both games and non-game applications have very positive effects on the advertising network for users. Although games are more popular, it is a method that can be used in many applications.
To have a maximum amount of app spendings, you need to have the right users who will do the spending at first.
The easiest way to achieve this is by optimizing how your app looks on Google Play Store and Apple App Store. Since these are different platforms, they have varying requirements in terms of character limits and image sizes. Thus, you should individually optimize the icon, video, description, screenshots, and reviews.
A successful ASO work will increase the number of downloads of your app. Therefore, users’ mobile application spending will also increase.
User retention means how many users return to your app during a given period. If you cannot make your users visit and use your app repeatedly, you are doomed to fail.
It is quite simple to calculate the user retention rate:
This calculation gives you your retention rate as a percentage.
With retention, you can increase app users, do not lose existing users, and enable them to spend on your mobile application. Sustaining your users and developing customer loyalty programs is a significant factor for users to spend on your app.