The hidden benefits of In-App Purchases
Updated: Jan 8
In-App purchases are considered a very modern convenience, the extra utility and freedom they provide users having revolutionised on demand shopping and services. However, they are able to provide far more than just convenience and many apps don't properly utilise functions like these to the fullest extent nor do they see their true hidden value as functions. This blog aims to expose that untapped potential.
To begin, whilst convenience is often over focused, its effect cannot be overstated. Especially when it comes to special events and sales, studies focusing mostly on Black Friday have discovered sales on mobile devices increase to account for almost 50% of online sales altogether. This shows a clear effect, that when time is short people are prone to simply pulling out their accessible devices and making last minute spur of the moment purchases. For a smaller business with their own personal app, this could show far greater opportunity as such businesses often struggle to offer convenience traditionally. Managing even online services and convincing a customer to open their browser to use it, could be more difficult than pushing a user to utilise a pre-downloaded app right on the front of their phone. Furthermore, even if the your app still functions through utilisation of your website or other web-based payment service, many users are drawn to the utilisation of apps simply due to the ease of use. Your site may be difficult to locate on google, leading to people not purchasing from you when they may even have every intent to.
Other benefits of special note is how you can control a virtual storefront greatly. Other services may host your products but with an app you can control the user interface people purchase in. Tactics can be used to encourage spending and you can control how your products are categorised and what other products they are shown for sale alongside. Strategies like this help produce sales, especially of connected products that people might buy alongside their normal purchase, but simply not typically see
I hope this small blog has helped open you up to the many options that in-app purchases can bring as feature. Many foolishly believe them to be even detrimental due to poor businesses making them clunky and obtrusive, but well handled in app-purchasing is nothing but an extra option to expand convenience to your customers and better control and hopefully more profit long-term for the business itself.