For any app development company making the app profitable is one of the most important aspects of its business strategy. Most of the time as any person or company gets an idea that they think they need for their app is good, the first thought that strikes their mind is to build it as soon as possible. But the harsh reality in the field of app development is that most of the apps fail to generate profits and it is not cheap to build one.
As you are ready with your idea to build your app you need to make sure of analyzing ways you are going to make it profitable. Developing an app is not an easy task. It requires time, investment, technology, and manpower to make it work best. So, before digging up to a decision you need to take proper measures to reduce the chances of failures and making the app profitable.
What is the reason most apps fail to get a profitable turnout?
Mobile apps have a high potential to gain popularity and turn it into profits but in case things are not done as they are supposed to be then the app suffers losses and so does the business. There are so many reasons as to why apps fail to generate profit. Some of these are listed below:
1. The developer team focuses on building too big feature set as quality serves over quantity.
2. There are simply too many applications to choose one and most of them offer the same features
3. They fail to do proper data analysis on the prime subject of the app and the app loses track from its prime objective.
4. The UI of the app is not engaging and is tough to use
5. Lack of motivation and confidence in the team members.
6. Make sure to perform regular tests within the code.
How to start making the app profitable?
Instead of making your app do everything that you have thought of, make it do 10 percent of what you want it to do. Analyze whether it is able to give the solutions that you wanted to do. In case your app is able to generate it well enough it will eventually grow. You can then put your investment in building up more powerful features that will make your consumers stay with you for a longer period.
People want their mobile application to perform extremely well in this competitive environment. But in case you want your app to compete with others, it has to compete with its own previous versions during the development phase. For making your app profitable you need to take care of the following things in mind:
1. Do not make your app complicated for a new user. Let them explore the features of your app.
2. Make regular bug fixes and fix other security issues to gain the trust of consumers.
3. Ask consumers for minimum personal information so that they do not feel vulnerable.
4. Enhance the abilities of the UI and the scope of your application as time passes. You can do this alongside regular updates.
5. Provide enhanced features for little extra charges. These features should be able to provide benefits that they are supposed to provide.
6. Do a regular analysis of the performance of your app. Look at the feedbacks and reviews and try to resolve the issues of the customers.
What mobile metrics are to be taken into account?
Even if your app is able to gather initial downloads, it does not signify whether people are going to download it later or keep using it for longer durations. Here, to get answers to your questions as to how well your app is going to perform is based on three major mobile metrics. These are ARPDAU, Day 1 retention, and LTV.
● Day 1 retention:
Day 1 retention plays an important role in getting estimates as to what percentage of people are going to love the idea of an app that starts using it and comes back the next day to use the app again.
This information can be used to generate an estimate on how much you can earn from the individual user and you can use this data to compare it with other similar apps.
● Average Revenue per Daily Active User (ARPDAU):
As you have an app that is able to show good retention then the next step you need to take care of is to make it earn money. There are so many ways to generate income using your application. For free apps, the best way is to place in app purchases, subscriptions and advertisements.
The benchmarks for the ARPDAU value are set on the basis of the genre of the application. They vary greatly according to the kinds of users that they attract. ARPDAU usually stays quite consistent even when you have large variations in the number of users.
● Calculation of Lifetime Value (LTV) of any user:
A combination of the effects of the above two parameters gives us a brief about the LTV of any consumer. By knowing it we know the true potential of the app and the only thing that needs focus is the evolution of the app and its marketing. These figures give estimates of how much you are going to earn ultimately.
Taking into account all of these three matrices, you can get to know a lot about the abilities of your application. You can work on these abilities and enhance their functionality over time.
Conclusion:
The mobile app development industry has seen top mobile app developers fail in gaining profits with their application. The reasons are mostly lack of responsibility and communication between the team members.
In any case, if you need to hire mobile app developers to ease out the process as there are many options available over the internet. These people can help you build an app easily as per the requirements. We hope that this information helps you with your queries and you are able to generate great revenue through your mobile application.
