Growth Strategies

10 Growth Strategies for Apps

In today’s hyper-competitive digital landscape, the mobile app market is cutthroat. As Silicon Valley venture capitalist Andrew Chen firmly asserts, the average app hemorrhages 90% of its daily active users within 30 days. But fear not, for in this blog, we’ll show you that a high churn rate doesn’t have to spell doom for your app. There are proven re-engagement strategies that can help you bring those users back into the fold. 

Mobile apps are more than just software – they are potential revenue generators. Whether aiming for significant financial gains or simply seeking to cover your operational costs, we understand the importance of monetizing your app effectively. In this blog, we’ll guide you through essential strategies, sharing the best tips and methods we’ve used in the past to help you navigate the path to app monetization.  

Four Strategies to Monetize an App

Monetizing your app can be a complex task, and there is no single strategy that works for every app. Your approach should be based on your app’s purpose, your team’s strengths, and your target audience’s behavior. The key to success in app monetization is effectively leveraging your app’s value to your user base, and there are many strategies to choose from. In this blog, we’ll explore four of the most popular and effective methods that have stood the test of time. 

1.     In-App Advertising: With digital advertising on the rise, mobile apps have become a prime platform for advertisers. In 2018, over $70 billion was allocated to mobile ads, and this trend continues to soar. You can explore various mobile ad types, including banner ads, interstitials, native ads, video ads, and rewarded video ads. The latter, in particular, has proven to be highly effective by offering users incentives for watching ads, such as in-app currency or game credits. While the mobile ad market is narrower than web advertising, it still provides numerous vendor options. 

2.     Freemium Apps: The freemium model has gained widespread popularity, allowing users to download and use essential features for free. If they desire advanced features, they can subscribe to a paid plan, which can come in various tiers. Often, free versions of apps include ads, and users can eliminate them by upgrading to a premium version. Many app developers, including popular brands like Slack, Grammarly, and Dropbox, embrace this model. 

3.     Free App With In-App Purchases: This model keeps the app free to download and use but allows users to buy specific app features or products as needed. This approach is trendy in mobile games and can include consumable purchases, which are temporary and require refills, or non-consumable purchases, which can be bought once and used across multiple devices. In-app purchases have shown remarkable growth. 

4.     Paid Apps: While the paid app model may decline, it’s still a straightforward way to monetize your app. Users only pay a one-time fee to download and access your app. However, this method is becoming less common, with fewer than 5% of Google Play store apps following this approach. Paid apps must be positioned as premium products to succeed, avoiding lower pricing strategies that may erode perceived value. Companies such as EA Sports, Ubisoft, and Mojang often use it. 

To maximize your app’s monetization potential, consider combining two or more strategies to create a profitable hybrid approach. Each method has advantages and disadvantages, and the right one for you will depend on various internal and external factors. By carefully assessing your app’s characteristics and understanding your target audience, you can tailor your monetization strategy for optimal results.  

Six Re-engagement Strategies to Get Users Back

n the ever-evolving world of mobile apps, maintaining user engagement is an ongoing challenge. To address this issue, we’ve identified six re-engagement strategies that can be powerful, albeit with certain limitations. These strategies can’t work miracles if your app suffers from fundamental issues like a poor concept, a mismatch with the target market, or a subpar user experience. Therefore, successful re-engagement begins with a solid app idea and effective retention tactics. 

1.     App Icon Updating: One of the simplest yet highly effective re-engagement strategies is updating your app icon. The icon is often the first impression users have of your app, making it a crucial element for engagement and discovery. Even minor icon revisions or seasonal embellishments can lead to substantial improvements, increasing your app’s visibility and attracting users back to explore the changes. 

2.     Tracking User Events: Event tracking is fundamental for app developers, as it provides insights into user behavior and identifies weak points within your app. Understanding where users drop off or encounter issues allows you to optimize your app, especially during critical stages like onboarding. Event tracking complements other re-engagement efforts, helping you refine your strategies and make data-driven decisions. 

3.     Mobile App Marketing: Reminding users about your app’s existence and distinguishing it in a highly competitive market is crucial. By refining your targeting strategies and optimizing your app store page, you can attract the right audience and enhance your app’s reputation. 

4.     Rewards: Incentivizing dormant users can be a compelling re-engagement tactic. Whether through discounts, exclusive content, or special promotions, rewards can rekindle user interest and build usage habits. Challenges and personalized offers, such as birthday gifts, can create a sense of fulfillment and motivate users to return. However, rewards should never compensate for a poor app experience, as their impact is most effective when combined with an engaging app. 

5.     Push Notifications: When used judiciously, push notifications can significantly enhance retention rates, reminding users of your app’s presence and value. To maximize their effectiveness, explain the benefits of notifications to users and keep your messages concise and engaging. Sending relevant and well-timed notifications can transform push notifications into a potent re-engagement tool. 

6.     Deep Linking: Deep linking, borrowed from websites, streamlines navigation within your app and simplifies user journeys. This technique minimizes friction in re-engagement funnels, ensuring users swiftly reach their desired destination within your app. Deep linking is particularly valuable for running retargeting campaigns on dormant users, offering a seamless and hassle-free experience that can reignite their interest and participation. 

While these strategies are powerful tools in your re-engagement arsenal, remember that they work best when your app has a strong foundation and a compelling value proposition. To truly excel in re-engagement, start with a solid app concept and invest in effective retention tactics, laying the groundwork for sustained success in the competitive app market.  

To Summarize 

In mobile apps, successful monetization hinges on tailored strategies that align with your app’s unique value and user base. Flexibility is crucial, so consider combining multiple monetization methods for a robust approach that can adapt to changing market dynamics.  

Remember, app success goes beyond revenue; user engagement and delivering value are equally vital.  

Do you want to develop an application for your business? 

At ThinkUp, we are a digital product development company obsessed with quality and specializing in mobile applications and unique user experiences. We create world-class digital products for startups and enterprises to transform and empower businesses.  

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