In today’s digital age, mobile app developers are constantly seeking new ways to monetize their creations. One of the most effective strategies for generating revenue in iOS apps is through in-app purchases. However, choosing the right in-app purchase type can be a critical decision in the planning of your app. In this article, we’ll introduce four different in-app purchase types—Consumable, Non-Consumable, Auto-Renewable Subscriptions, and Non-Renewing Subscriptions—and guide you on how to select the most suitable one for your iOS app.
- Consumable: Use, Buy, Repeat
Consumable in-app purchases are items or features that users can buy and use once. These purchases are typically used for consumable virtual goods, such as virtual currency, power-ups, or one-time-use items.
Example: In a gaming app, players can purchase a pack of 100 gems to enhance their gameplay. Once they use these gems, they need to buy more if they want to continue benefiting from the boost.
When to Choose: Consumable purchases are ideal for apps where users frequently need to buy items to enhance their experience. Games and productivity apps with limited-use features can benefit from this model.
- Non-Consumable: Buy Once, Keep Forever
Non-consumable in-app purchases are items or features that users purchase once and retain permanently. These purchases are typically used for unlocking premium features, removing ads, or accessing content.
Example: In a photo editing app, users can buy a “Pro” version to unlock advanced editing tools and remove watermarks. This purchase remains with the user indefinitely.
When to Choose: Non-consumable purchases are suitable for apps offering premium features or content that users would like to access continuously without recurring payments.
- Auto-Renewable Subscriptions: The Steady Stream
Auto-renewable subscriptions allow users to pay a recurring fee (weekly, monthly, or yearly) to access premium content, features, or services within the app. These subscriptions automatically renew until the user cancels.
Example: A news app offers a premium subscription that provides ad-free access to articles, exclusive content, and offline reading. Users are billed monthly, and the subscription renews automatically unless canceled.
- Non-Renewing Subscriptions: You Decide When
Non-renewing subscriptions grant users access to premium content or features for a fixed duration. Unlike auto-renewable subscriptions, these subscriptions do not automatically renew and require users to manually renew when they expire.
Example: A fitness app offers a 3-month workout plan as a non-renewing subscription. Users pay a one-time fee to access the plan, and when the 3 months are up, they must decide whether to renew for another 3 months or not.
Consider the following factors when deciding on the appropriate in-app purchase model:
- Nature of Your Content: Determine whether your app offers consumable items, non-consumable features, or access to premium content. This will guide you toward the suitable in-app purchase model.
- User Behavior: Understand your users’ preferences and usage patterns. Are they more likely to make one-time purchases, subscribe for ongoing access, or prefer a combination of both?
- Competitive Analysis: Research similar apps in your niche to see what in-app purchase models are successful. This can provide valuable insights into what resonates with your target audience.
- Pricing Strategy: Develop a pricing strategy that accounts for your costs and revenue goals while remaining competitive in the market. This includes considering the price points for different in-app purchases or subscription tiers.
- User Experience: Ensure that the chosen in-app purchase model aligns with a positive user experience. Make it clear and easy for users to understand and access the premium content or features they are purchasing.
- Long-Term Sustainability: Think about how the chosen model will impact your app’s long-term sustainability. Consider how it will keep users engaged and coming back for more.
- Flexibility and Testing: Be open to testing different models and adjusting your approach based on user feedback and performance data. Flexibility is key to optimizing your monetization strategy over time.
In addition to the above factors, you can also consider the following to deeply monetise your app and get a better reach for the user.
If your app has an international audience, consider localizing your in-app purchases by offering different pricing tiers and currencies to cater to users in various regions.
Regularly Review Metrics
Continuously analyze your in-app purchase metrics and user feedback to identify areas for improvement. Be prepared to make adjustments to your strategy.
Experiment and Iterate
Don’t be afraid to experiment with different pricing models, offers, and promotions to find what works best for your specific audience.
In summary, successful iOS in-app purchases require a combination of strategic planning, user-centered design, and ongoing optimization. By considering these additional tips and being proactive in adapting to user preferences and industry trends, you can maximize your app’s revenue potential and provide a valuable experience for your users.