There are numerous ways as well as revenue models that one can make in order to monetize a mobile app. Freemium is certainly one of the the best ways that is adopted by most of the development companies in order to monetize their app. Though we can say that it is one of the most popular ways but this is certainly not for everyone.
In this blog we will find out what is Freemium and what all factors are responsible to make it work.
The word Freemium is formed after combining the words “Free” and “Premium”. In Freemium revenue model, you to not levy any charges on your apps for the users but this do not means that you render all the features to your users. In this model you gate or block some features and to access those features youneed to pay certain sum to get access to those features. As a novice Android app developer, this is a welcoming news as you need some vent from where the users can get attracted and this monetization policy clearly offers you that space from where you can make sure that the user gets to know what you wish to deliver.
However, the basic functionality offered by this app is free but certain features that are proprietary come with a charge. The basic idea behind this feature is that the “Free” things certainly attract users and something which is useful and is for free will certainly be highly attractive. Freemium is one of the best monetization model that tries to gather as many users as possible by attracting the users using the basic features and functionality of the app.
The basic idea behind this policy is to keep their users engaged and attracted enough so that they hop on from using the free version to premium version of the app by purchasing these features. There are several enterprise apps that run subscription based businesses prefer this monetization approach and have revenue stream that sustains.
There are ample of successful gaming apps that are running on this revenue model. For instance, we have Candy Crush, Angry Birds, Clash of Clan and several others – all come with a free basic version for the users.
However for premium level the users latter need to pay a certain amount to unlock these levels.
The Reason Behind The Success Of Freemium
The sole reason why freemium works is because free apps work. Users are attracted towards this as they like free things, one of the biggest reason why they are familiarized because they like the pace.
The best thing that they like is what they eventually discover about the app and what they eventually discover about the basic functionality of the app. If the app is a game, then get to have the basic functionalities as well as moves of this game. Along with this they have basic tutorials that are provided to the app publishers that allow the app users grasp the functionalities of the app in the right way.
Moreover if they like what they are watching, they promulgate about the app to their near and dear ones, and also share them on their social network. Which is what we call word or mouth publicity for the developers. This is when the app gets users time and attention without you spending much amount. This creates a buzz and eventually works in order to increase your user base. This helps you to get more and more people along with you.
#Make use of free features as a Marketing Tools
Make sure that you think clearly before you segregate the features of the product for free as well as for paid users. Make sure that the features that you offer are free and they need to work as marketing tools for your users.
Make sure that the users must try to create a buzz through these features. After launching your product make sure that you generate the excitement in order to attract towards your product or services. Make sure that you gather as many users as you can.
#Take care of your loyal customers
Every user be it a free user or a premium one are valuable to you. After using your app there are chances that may allow them to get addicted to your app and eventually transform themselves to be a premium user and they might also spread a word of mouth about your app. They turn into ambassadors for your app and help to market your app.
So what special are you doing for your special customers?
Make sure to have a special content strategy that targets them. And to have referral incentives for them. Make sure that you have happy, contented and free customers that help you to take your app to a new level. Make sure to use the leverage as well as this opportunity quite efficiently.
#Make sure that you keep the zest of upgrading your app alive
We know that is not just the generation of smart phones but we know the fact users have also become very smart. They know what all features they require and do not have any reason why they need to upgrade.
Moreover is you have provided a sterling free version to the users which offers all the needs to the user, then they will see not user to purchase the paid premium version of your app. This is the reason why you need to know what you need in order to attain a perfect balance.
Therefore you need to make sure you haven’t given anything for free to your users. Thus, you need quite a subtle segmentation when it comes to segregating your users as well your visitors as well as features of your app.