Amazon has a new informative slideshare presentation ‘What the Top 50 Apps Do with IAP that the Rest of Us Don’t’ with insights into in-app purchasing. While the insights have been obtained from the Amazon app store, they are just as applicable to all stores and all OS platforms.
Here are some of the learnings and consequent recommendations…
- Start cheaper and increase price(s) over time to about 60% of the original price.
- 48% of purchases happen within 1hr of previous purchase. Hence, make sure you offer an IAP within this time.
- 37% of users who will purchase, purchase on the first day. Again, engage the customer early.
- Offer between 1-5 price points for the best conversion. More prices points can confuse the user.
- Apps with tutorials have a 2.5X higher conversion rate,
- 1.14% of paying customers generate 30% of the sales. Cater for your best and longest customers by differenting your IAP offering.
- As with non-IAP apps, retention is the only important metric. Give them a reason to come back, for example use social, leaderboards and achievements.