Why Your App Is a Financial Drain
October 7, 2013
Apps on the mobile market are like trying to build an audience for your book. You try to get the perspective readers, but if you do not have enough of a hook they never get past the summary on the back. According to Kontagent’s article, “Your App Is Dead: Why You’re Losing Users And Revenue Without Even Knowing It” most users download an app, use it once, and then uninstall it. This tells us that if the app does not impress on the first try, it gets recycled and you are losing money.
“Profit in the app world is a numbers game dictated largely by your app users. Theoretically, the more users you have, the more money you can make. Take freemium apps for example. Generally, conversion rates range from one to 10 percent. If you had one million users and were able to convert 10 percent into paying users all monetizing at $5 each, you’d rake in about $500,000. Pretty good, right?”
Even more awesome would be if you could retain the 90% of customers you lost in the first round. It would make your customer base even larger and you could bump your revenue up to $950,000. The secret is optimizing the first time user experience by figuring out what is wrong. Some of the biggest mistakes app designers make is having a complex registration process, a bad login experience, or an application full of bugs. Fixing these common problems could mean the difference between a living app and one that rests in peace after launch.
Whitney Grace, October 07, 2013
Sponsored by ArnoldIT.com, developer of Augmentext
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