Maximizing IAP Revenue For Your Mobile Game
In-app purchases (IAP) have become a crucial revenue stream for mobile game developers. According to a recent report, IAP accounted for 89% of all mobile game revenue in 2020. However, developing a successful IAP pricing strategy is not always straightforward. In this article, we’ll outline a framework for developing a mobile game IAP pricing strategy that maximizes revenue while providing value to the user.
- Market Research
Before setting IAP prices, it is important to understand the competitive landscape and the prices at which similar IAP is being sold in other mobile games. This market research can help inform your pricing strategy and ensure that your prices are competitive. Look at the prices of IAP offered by your competitors, as well as the value proposition of those IAP. This research can help you determine a price range for your own IAP.
2. Value Proposition
The next step in developing a mobile game IAP pricing strategy is to determine the value that your IAP provides to the user. Consider the benefits and features of the IAP and how it enhances the overall game experience. For example, an IAP that provides access to additional levels or premium features will likely have a higher value proposition than an IAP that simply provides additional virtual currency.
3. Cost Analysis
It is important to understand the cost of creating and delivering the IAP. This may include development costs, marketing costs, and transaction fees charged by the app store. The cost analysis should be considered when determining the price of your IAP.
4. Customer Segmentation
Segmenting your target audience into different groups based on their willingness to pay and purchase behaviour can help inform your IAP pricing strategy. For example, some users may be willing to pay a premium for a high-value IAP, while others may be more price-sensitive. Customer segmentation can help you determine the appropriate price points for different segments of your target audience.
5. Price Points
Determining the appropriate price points for your IAP is an important step in the mobile game IAP pricing strategy. Consider offering a range of price points to appeal to different segments of your target audience. For example, you may offer an IAP at a low price point for users who are price-sensitive, while offering a higher-priced IAP for users who are willing to pay a premium for a high-value experience.
6. Bundle and Upsell Strategies
Offering bundles of IAP or upselling users to higher value IAP can help increase the average purchase value and generate additional revenue. For example, you may offer a bundle of three IAP at a discounted price, or upsell users from a low-priced IAP to a higher-priced IAP with more benefits and features.
7. Monitoring and Adjustment
An analysis is important to continuously monitor the performance of your IAP and adjust the prices as needed based on customer behaviour and market trends. Gather feedback from users and make changes to ensure that your IAP pricing strategy remains effective and profitable.