App Stores are a great way to make money.
To emphasise my point, I’m going to talk about Spotify. Please hold on! I’m not claiming that your company will grow to the same size or scale as Spotify. What I’m about to say, on the other hand, is equally applicable to small enterprises.
It’s impossible to expect most small firms to become the next Spotify, and I completely understand that. When it comes to their business strategy, though, it is something that has been proved to work for a variety of businesses in a variety of industries.
Building your own mobile app could be the ideal choice for you if you have a subscription-based company model and are searching for efficient and cost-effective strategies to increase conversions.
You can give the base tier for free if you have different subscription tiers, similar to Spotify. When you use an app to offer a subscription-based business model to your clients, you have a higher chance of converting them than if you only sell a product.
In fact, it has been shown that 60% of free trial users will convert to paying clients. When you set up subscriptions in your mobile app, you can simply fatten up your revenue streams and grow at a rapid pace.
Users may safely save their payment information in the app, and you, as the app owner, have a better chance of converting and retaining clients who sign up for an auto-renewing subscription.
Spotify has grown their business to 170 million monthly active users by following this technique. It’s a common misconception that in order to make money from your app in the app store, you must charge your clients for it. This is far from the case, as Spotify has demonstrated beyond a shadow of a doubt.
The Spotify app is available for free download, and users can upgrade to premium plans based on their tastes and preferences. Spotify promises to convert 27% of free trial users into paying customers, with a strong retention rate.
Create a Marketplace for On-Demand Services
Customers are enthralled by on-demand marketplaces, which have become increasingly popular in recent years. Whether it’s Uber, Lyft, Grubhub, Postmates, or something completely else, smartphone apps can help you get it done. However, if you want to establish an on-demand marketplace mobile app, you don’t have to start a completely new line of business.
Even if you already have an established web business, you may use a mobile app to create an on-demand marketplace to extend your business. Rover is one of the companies that accomplished it really effectively.
Dog walking, dog boarding, doggie daycare, dog visits, and even house sitting are among the services provided by the organisation. They had merely a website before and were seeking for strategies to grow their business.
Rover was able to grow their reach and presence to over 11,000 cities after launching their own mobile app. Aside from the regional expansion, the organisation had a 200 percent increase in user registrations. Around 10,000 users were using the app on a weekly basis at the peak of its popularity.
According to the firm, 90% of customers who downloaded their app and booked a service through it are still active consumers. In addition, more than 90% of Rover app users would suggest it to their friends and family. This is a huge win for the company, and it’s all thanks to the fact that they decided to employ a mobile app to strengthen their present services.
Between 2016 and 2017, the company tripled its net sales, and this surge has helped them expand into new areas. As a result, Rover can consider expanding into Europe. The significance of this figure becomes clear when you consider that more than 80 million European families own a pet, and Europe accounts for 30% of worldwide pet spending.
The platform’s entire yearly gross bookings are estimated to be over $375 million, with the corporation keeping 20% for itself. Rover’s annual revenue is therefore estimated to be around $75 million.
The company was valued at roughly $970 million last year, owing partly to a significant increase in mobile app downloads and usage. Rover’s mobile apps included a number of unique features that were not available on their website.
They were able to address a user demand and provide a feasible solution with the software they created. 83 percent of pet owners were concerned that the dog walkers they hired were shirking their responsibilities. Rover realised this need and developed a function in their app that allowed pet owners to track their walkers using GPS. They may rest comfortable that the walkers will complete the distance promised in the time allotted.
This capability will be extremely useful as the company seeks to grow into the European market. As a new product enters an established and perhaps over-crowded market, the level of comfort and trust it can generate at first is crucial, and this new function is a wonderful move in that direction, adding significant value to their offering.
Now, instead of establishing a new business with a mobile app like Rover did, you can utilise it to better your current business model, and you’ll be shocked at how many opportunities are provided to you. When you create an on-demand marketplace for your mobile app, do so to complement your current app.
