How E-Commerce Mobile App Will Elongate the E-Commerce Revenue In 2017
With the influx of technology and mobile devices in our lives and in our homes, it isn't a surprise that the world is shifting online. From storing information online to watching content online, everything is turning digital. But the thing that has probably been most affected by this sudden outburst of technology is the retail business. Shops are turning smarter, buyers are turning technologically savvier and the world is officially moving to E-Commerce. If you're a retailer, it is high time for you to move online and set up shop on the internet. And if you already have an E-Commerce business, here are a few tips on how a mobile application for your E-Commerce website would help generate more revenue this year, than any preceding year.0 Comments
1. Understanding the basics of app monetizationThere are a number of ways how your E-commerce website can make some cash for you, but following a streamlined approach is always welcome. Follow these to understand how your mobile application can get some money for you:
- Research your market competitors to identify missed monetization opportunities.
- “Freemium” apps are free to download and offer paid access to additional features.
- In-app purchases are a way to offer optional, paid features within an app.
- Subscriptions provide paid content or features over a set amount of time.
- In-app advertising generates revenue from user click-through and impressions.
- Grow a large, active user base to improve your chances of generating significant revenue.
- Successful monetization strategies look and feel like a normal part of the app experience.
2. User growth in keyThe simplest way to gain more money from a website is to have an extremely large user-base. Inorganic app downloads seem legit only for some time. If you're really hoping to make it big, figure out a way to focus on user growth. It's important to think about metrics like free-to-paid conversion rates, lifetime value of a customer, churn rate (for recurring subscriptions), and comparable items. Andreesen-Horowitz recently published a guide to important revenue-focused metrics to help businesses, especially startups, identify the metrics most significant to tracking the health of a company. And John Egan, growth engineer at Pinterest, showed what those metrics look like in a post earlier this year. Without a keen eye on these metrics, you'll be ill-equipped to grow your app to the point where that minority of users is actually generating revenue.
3. Focus on in-app purchases and advertsAn app that utilises in-app purchases offers a free version of the app that includes additional, optional, paid features. These are commonly seen in gaming apps where users are encouraged to purchase new levels, gear, and items. These types of purchases encourage repeat purchases because they are consumable, such as buying extra lives in Candy Crush Saga. Apple uses their in-app Music pay option to allow users to buy music. Same works with other popular music apps such as Saavn. Companies like these provide users with an option to get more out of their experience, without feeling the need to pay a massive amount. In-app adverts work in a similar fashion. In-app advertising comes in a variety of sizes, positions and placements in mobile apps. The amount of revenue you generate from in-app advertising is based off of traditional advertising models. Advertising can pay differently for click-throughs, impressions, which countries the users are from, and the format of the ads, with videos tending to be worth more than static ads. Here's a chart that'll help you figure out the exact placements that'll work just fine for your adverts.
4. Focus on augmented reality and real-time experiencesAugmented-reality, a field that seems vast enough in technology, can provide a wide gamut of users. AR, in particular, can provide users with an in-store shopping experience, regardless of their location. Devices can superimpose 3D objects in various spaces, giving customers a chance to interact with digital renderings from the comfort of their own homes. IKEA and Converse, respectively, already allow users to envision pieces of furniture in their homes or shoes on their feet in real time using smartphone apps. Try working on these three fundamentals the next time you talk about your E-commerce application:
- Offer a more useful experience: For example, a Sephora app employs ModiFace technology to allow users to take a "selfie" and then apply a variety of cosmetic products to their faces. Instead of spending hours debating the merits of eyeliner options in-store, Sephora customers can narrow their choices from home and streamline the shopping process.
- Add novelty to purchase: Between physical and online marketplaces, intense competition is being waged within most verticals. Incorporating AR is an immediate way for retailers to stand out from the pack.
- Allow users to customise