Are In-App Purchases Enough to Monetize Your App?

Not long ago Swrve, a trusted app marketing and analytics company, published the results of a survey that claimed that only 0.15% of all mobile game players contribute 50% of all in-app purchases revenue in free-to-play games. This means that despite all mobile game developers’ efforts most users will never spend any money within the mobile game.

The good news is that the report confirms the idea of groups of power users who are essential to the app’s growth. As a developer you can use your analytics to identify these users and start your user retention campaigns. You can retain those users by offering them goodies like VIP status that allows access to early updates and extra features. Your power users are those who are very likely to react to in-app purchases and spend money within your app or game.

Another important thing that the report shows is that once you convince the user to make the initial purchase, he or she is very likely to keep spending money within your app.

As for the rest of your users, they are very unlikely to spend anything on your game. That’s why you need to get really creative and convince them to make in-app purchases. One way of doing so is offering them attractive discounts and rewards. But if that strategy doesn’t work too well, you might consider implementing some form of advertising. Just make sure you keep the annoyance levels at the minimum.

The bottom line is that if your app or game offers in-app purchases, you should make the maximum out of analytics to pinpoint your power users and market the app to them.

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