psychology | Dogtown Media https://www.dogtownmedia.com iPhone App Development Wed, 03 Apr 2024 12:22:44 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.1 https://www.dogtownmedia.com/wp-content/uploads/cropped-DTM-Favicon-2018-4-32x32.png psychology | Dogtown Media https://www.dogtownmedia.com 32 32 Gamification in Mobile Apps: Boosting Engagement and User Retention https://www.dogtownmedia.com/gamification-in-mobile-apps-boosting-engagement-and-user-retention/ Wed, 03 Apr 2024 12:22:44 +0000 https://www.dogtownmedia.com/?p=21384 After reading this article, you’ll: Understand the psychological principles behind gamification, such as motivation, rewards,...

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After reading this article, you’ll:

  • Understand the psychological principles behind gamification, such as motivation, rewards, dopamine, and intrinsic vs extrinsic motivation, and how these drive user engagement and retention in mobile apps.
  • Learn about common gamification elements used in mobile apps, including points, badges, leaderboards, challenges, storylines, and avatars, and how these tap into human desires for achievement, status, self-expression and competition to boost app usage.
  • Discover best practices for successfully implementing gamification in mobile apps, such as setting clear goals, understanding the target audience, designing balanced game mechanics, analyzing results, and avoiding pitfalls like overemphasis on gamification at the expense of core functionality.

Gamification in Mobile Apps

Mobile apps have become deeply ingrained in everyday life, with millions of apps available across app stores and billions of downloads each year. However, most apps struggle to retain users over an extended period of time. A report found that nearly 25% of app users abandon an app after just one use. Thus, increasing user engagement and retention has become critical for mobile app success. 

Gamification offers a potential solution to this retention challenge. Gamification involves applying typical elements of game design, such as points, badges, leaderboards, and challenges that users complete to earn rewards, status, and recognition, to non-game contexts. This leverages people’s natural desires for competition, achievement, status, self-expression, and altruism. Studies have shown that gamification boosts engagement in applications and services by motivating continued usage.

This article will show that implementing gamification strategies can effectively increase user engagement and retention rates within mobile apps.

The Psychology Behind Gamification

Motivation and Rewards

Gamification taps into basic human motivations and reward-seeking behavior. When users complete challenges and advance in a gamified system, their brain releases dopamine, creating feelings of enjoyment and reinforcement. This motivates users to take further actions to receive their next dopamine boost. Gamification creates a cycle of motivation powered by dopamine’s role in reinforcement learning.

Apps can leverage this cycle by providing users with challenges that stretch skills without overwhelming them. Completing these meaningful challenges triggers dopamine release. Gamification mechanics like points, badges, and level-ups act as virtual rewards for completing tasks, fueling motivation through dopamine release. These predictable reward cycles are why gamified experiences can be so habit-forming.

The Role of Dopamine in Gamification

Dopamine plays a major neurological role in gamification. This chemical messenger in the brain drives seeking behavior and fuels motivation. Dopamine surges occur after unexpected rewards or positive reinforcements. In gamification, unpredictable rewards like loot boxes along with consistent rewards like badges utilize this dopamine seeking behavior.

When users get rewarded virtually through gamification, dopamine release causes them to form strong motivations to repeat the rewarding behavior. This is why gamified apps that leverage dopamine releasing reward cycles can modify user behavior patterns over the long-term.

Intrinsic vs. Extrinsic Motivation 

Gamification utilizes both intrinsic and extrinsic motivation. Intrinsic motivation means doing an activity for its own enjoyment, while extrinsic motivation relies on external rewards and punishments driving behavior.

Effective gamification balances rewards, status, and achievement that provide extrinsic motivators to drive user participation along with making the app experience entertaining in its own right by tapping into intrinsic motivations. Designing challenges that align with internal motivations and provide a sense of competency is key to long-term engagement with gamified systems.

Elements of Gamification in Mobile Apps

Gamified apps motivate usage and retention using game design elements like points, badges, and leaderboards. These create engaging experiences that harness competition and reward-driven behavior.

Points and Scoring Systems

Points and scoring systems are the most ubiquitous gamification elements. Points provide numerical feedback to users on their achievements, incentivizing further usage. Apps grant points for desired actions like checking in daily, referring friends, or completing key activities.

Displaying point totals and progress bars showing users how close they are to unlock the next level or reward taps into our motivation to pursue goals that seem within reach. The simplicity of points allows easy integration into most apps.

Badges and Achievements 

Digital badges and achievements reward user milestones much like trophies, medals, and ribbons do in video games. They provide satisfying virtual recognition of accomplishments. Apps can grant badges for different behaviors, from simple participation and sign-ups to referrals to mastering complex tasks.

Visual symbols make status and progression readily apparent to other users. By tying badges to stat boosts or privileges, they become more than just symbolic rewards. Badges leverage our emotional connection to achievement and mastery.

Leaderboards and Competition

Leaderboards display ranked performance data, allowing users to compare themselves with others. They tap into innate competitiveness and status seeking behavior. Apps commonly utilize leaderboards for things like most points, badges earned, products purchased, tasks complete, or even social influence.

Seeing one’s ranking and progress on leaderboards becomes addictively motivating. Competition creates added social incentives to keep engaging with the app and rise up the ranks. Integrating social sharing of leaderboard standings taps into show-off behaviors.

Challenges and Quests

Structured challenges and quests that users undertake to earn rewards and achievements are common in gamified apps. These challenges stretch skills through fun mini-objectives that unlock progression. Completing challenges triggers the satisfying dopamine release that drives repeat engagement.

Apps may challenge users to perform certain actions, win competitions against others, collect sets of badges or points, master skills, or finish quest lines. Well-designed challenges match user skill levels and remain achievable with some effort. Quests and challenges make mundane tasks feel more like an exciting game.

Storytelling and Narrative Elements 

Weaving an overarching story or narrative into the app experience helps immerse users, making gamification mechanics more impactful. Narrative context gets users invested personally in the journey their avatars, teams, or companies undertake by adding imagination and emotion to interactions.

Storytelling frameworks turn standard app behaviors into adventures or obstacles to overcome. Uber’s driver app gamifies earning bonuses around missions like “Quest for More Money” with thematic narratives that encourage desired driving habits. Integrating storytelling makes gamification feel like a coherent progression rather than isolated incentives.

Avatars and Customization

Avatars, virtual identities users create to represent themselves, are a staple of gaming that is transitioning into gamified apps. Avatars increase opportunities for self-expression through customizing character features and accessories. Users personalize avatars until they feel a strong social connection with their avatars.

Allowing avatar progression and granting access to exclusive avatar customization items based on gamified achievements makes users value their avatar’s growth. Avatars turn abstract user accounts into representations of status and achievement that users show off. They increase gamification’s ability to utilize social motivations and status as incentives.

Benefits of Gamification in Mobile Apps

Implementing gamification strategies in mobile apps provides significant benefits regarding improved user engagement, retention, and experience.

Increased User Engagement

Gamification mechanics dramatically increase engagement with app features. Points, badges, challenges, and rewards incentivize usage by making app actions feel more exciting and purposeful. Apps see higher daily and monthly active users through gamification.

Game elements also drive social engagement. Leaderboards, statuses, and sharing achievements on social feeds leverage peer motivation. Gamification makes using apps a collaborative experience between friends rather than an isolated activity.

Improved User Retention

Gamification has proven effects on long-term user retention. Turning app usage into a game that provides fresh challenges and incentives makes people more likely to incorporate app behaviors into their daily habits. The rewarding feeling of overcoming challenges and receiving new badges cultivates loyalty.

Apps satisfy users’ psychological needs for mastery, purpose, and recognition through well-designed gamification systems that guide them through the progression from newbie to expert. Meeting these needs fosters retention by making users feel invested in the journey.

Enhanced User Experience

Layering compelling and entertaining game elements on top of functional app features results in an overall more enjoyable user experience. Gamification intrinsically motivates previously boring activities like filling out profiles or sharing content by incentivizing participation with extrinsic rewards.

Seeing progress bars visually confirms growth towards goals and objectives, which also improves sentiment during the user journey. By making app usage more exciting, gamification leaves users happier and perceiving apps more positively due to fulfilling experiences.

Increased App Loyalty

Gamification increases not just user retention but also brand and app loyalty. When users invest so much time and effort into growing a gamified app presence through accumulating hard-earned points, badges, and customizations, they develop an emotional connection with their in-app identity and progress. 

This progress that users wouldn’t want to lose out on drives ongoing engagement. It also fosters positive associations with the app brand itself. Successfully gamified apps enjoy powerful brand loyalty stemming from users personal identification with app achievements.

Opportunities for Monetization 

Gamification provides new monetization opportunities by encouraging users to spend real money to further boost virtual achievement or status. For example, selling custom avatars, exclusive badges, boost power-ups, or conversion of money into app points allows users to take gamified progression to the next level by spending.

These in-app purchases enhance enjoyment for engaged users willing to pay to access rare customization options that indicate exclusivity or privileged status in the app ecosystem. Tapping into gamification systems this way provides revenue streams by letting engaged users level up in the virtual environment through purchases.

Implementing Gamification in Mobile Apps

Successfully integrating gamification into apps requires careful planning and design geared towards target users. Apps should avoid common pitfalls like overly simplistic systems or tacked on elements that don’t connect to business goals.

Defining Clear Goals and Objectives 

The first step is outlining goals for the behaviors and outcomes that the gamification aims to drive. Connecting gamification mechanics directly to KPIs like product usage, conversions, or retention makes results measurable.

Quantifiable objectives might include increasing average session length by 25%, boosting referral sign-ups by 30%, or getting 60% of users to input profile info. Concrete goals inform which game mechanics have the highest ROI.

Understanding Your Target Audience

Next, apps must research their target audience motivations, needs and behaviors to determine which types of game mechanics will be most compelling and effective with users. For example, competitive leaderboards work well for achievement-driven users while creative types may favor custom avatar illustrations as status symbols. Different incentives appeal to different demographics.

Designing Engaging Game Mechanics

With goals and audience insights established, apps can select appropriate game mechanics to build into flows to drive outcomes. Mechanics should connect with audience motivations and provide the incentive structures needed to achieve defined objectives.

If apps want users referring friends for bonus points, balanced incentive structures meeting that goal need implementation. Poorly designed systems with overly easy or trivial achievements fail to sustain engagement long-term. Playtesting and optimization adjust gamification to maximize results.

Balancing Gamification with App Functionality

Gamification should complement and support, not overtake, core app functionality. Overly distracting competitive elements undermine primary tasks. However, an implementation that is too subtle fails to drive habits. 

Apps must strike the right balance between highlighted gamification features spurring engagement and unobtrusive integration where game mechanics smooth natural feature usage. User testing prevents interfering with core app flows while still incentivizing behaviors.

Continuously Analyzing and Optimizing Gamification Strategies

Gamification requires ongoing iteration and A/B testing to determine the most effective structures. Apps must monitor metrics on achievement unlocks, activity influenced by mechanics, and impact on target KPIs to quantify gamification’s effects.

Constant optimization maximizes the ROI of gamification features. Both simple tweaks like point system adjustments and bigger changes like adding quest lines allow apps to tailor gamification strategies to what best resonates with their audience and move their metrics.

Potential Pitfalls and Considerations

While gamification drives impressive engagement and metrics when done well, there are also pitfalls to avoid and ethical considerations around manipulating user behavior.

Overemphasis on Gamification at the Expense of Core App Functionality

Apps should take care not to let gamification elements overshadow their core utility. As engaging as rewards systems are, they must ultimately support primary app goals rather than dominate the experience. If gamification features ever undermine or obstruct intended functionality, they require rebalancing.

Balancing Difficulty and Rewards to Avoid Frustration or Boredom

The incentive structures in gamified systems require careful calibration to sustain motivation. Making progression too slow or achievements too trivial leads users to lose interest. But setting unrealistic expectations that lead to frustration also damages engagement. Apps must continually evaluate feedback to hit the sweet spot between boredom and discouragement.

Ensuring Gamification Elements Align with App’s Purpose and Target Audience 

For gamification to work, integrated mechanics have to resonate with the app’s persona and user base. Gamification that feels disconnected from an app’s core identity—like overly competitive elements in a traditionally collaborative app—ring hollow. Systems should map to audience values, desires, and use cases.

Addressing Potential Ethical Concerns 

Gamification that manipulates vulnerable users or fosters unhealthy addictive behaviors raises ethical issues. Responsible gamification offers choice and balance in how much users engage. Ensuring business-driven behavior incentives provide actual utility rather than solely extracting excessive data or money builds user trust in gamified systems.

When done right, gamification becomes more than just a gimmick—it transforms bland app routines into compelling journeys that users want to embark on again and again. Points, badges, challenges, and rewards fulfill users’ needs for achievement, competency, creativity, and human connection. Satisfying these core motivations breeds loyalty and habit formation over the long term.

With increasing saturation of mobile apps, gamification can provide key competitive differentiation through higher engagement, retention, and enjoyment. Building the right gamified experience matched to business goals and audience desires sets apps up for success amidst fierce competition for user attention and retention.

Frequently Asked Questions (FAQs) on Gamification in Mobile Apps

1. What is gamification, and how does it benefit mobile apps?

Gamification involves incorporating game design elements like points, badges, and leaderboards into non-gaming contexts, such as mobile apps, to enhance user engagement and retention. It taps into basic human desires for achievement, competition, and social interaction, making app interactions more engaging and rewarding. This approach not only increases user activity but also promotes loyalty and a sense of community among users.

2. How does gamification impact user psychology in mobile apps?

Gamification significantly impacts user psychology by leveraging the brain’s reward system. Completing challenges and earning rewards in a gamified app triggers the release of dopamine, a neurotransmitter associated with pleasure and motivation. This creates a positive feedback loop that encourages continued app usage. Gamification also balances intrinsic (internal satisfaction) and extrinsic (external rewards) motivations, ensuring users find the app experience both enjoyable and rewarding.

3. Can gamification improve the monetization of mobile apps?

Yes, gamification can open up new avenues for monetization within mobile apps. By engaging users with a rewarding and entertaining experience, developers can introduce in-app purchases linked to the gamification elements, such as buying custom avatars or unlocking special achievements. This not only enhances the user experience but also encourages users to spend money to advance more quickly within the app or gain exclusive rewards, thereby increasing revenue.

4. What are some common gamification elements used in mobile apps?

Common gamification elements in mobile apps include points, which are given for completing certain actions; badges and achievements, which recognize user milestones; leaderboards, which foster competition by ranking user performance; challenges and quests, which provide structured goals for users to accomplish; and storytelling elements, which immerse users in the app through a narrative context. These elements work together to make the app more engaging and motivate continued use.

5. How does gamification affect long-term user retention in mobile apps?

Gamification has a positive effect on long-term user retention by making the app experience more engaging and rewarding. By continuously providing users with new challenges, rewards, and levels of achievement, gamification keeps the app experience fresh and exciting. It satisfies users’ psychological needs for mastery, autonomy, and purpose, making them more likely to stick with the app over time. Additionally, the sense of community and competition fostered by gamification elements encourages users to return regularly to see how they rank against others and to participate in new challenges.

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Screen Addicts Kick the Habit Using the Onward App https://www.dogtownmedia.com/screen-addicts-kick-the-habit-using-the-onward-app/ Fri, 06 Oct 2017 13:36:19 +0000 https://www.dogtownmedia.com/?p=10289 A lot of the mobile app development companies in the usa we know like to believe...

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A lot of the mobile app development companies in the usa we know like to believe that their apps help to improve users’ lives. They also want to create something that will become a part of people’s everyday routine. But what happens when people get too sucked into their screens?

We all have experienced that familiar suspicion that we are spending too much time on our phones. For some people, this attachment to technology becomes a full-fledged addiction. Whether it’s games or porn or screens in general, thousands are losing themselves in easy digital stimulation.

It’s a relatively new condition that the scientific community and general public are still struggling to understand. But some app developers are attempting to fight screen addiction with an app called Onward — and it appears to be working miracles.

After seeing firsthand how gamification makes tech irresistible, Onward co-founder and CEO Gabe Zicherman wanted to find a way to restore people’s tech-life balance. Onward does this by tracking phone usage and blocking trouble apps for those that want or need to cut down on their screen time. The app’s approach is rooted in sound behavioral psychology and is advised by respected neuroscientists and psychologists.

According to Onward’s own research, the app is truly rehabilitating screen addicts. 89% of users successfully cut down on their screen time. Of the 1,400 porn addicts studied, more than half kicked the habit altogether.

It may seem counter-intuitive to fight a tech addiction with tech, but it’s hard to argue with Onward’s results. Fortunately, other startups have recognized the power our mobile devices can have in reining in other addictive behaviors. Pelorus Health has put together an app that connects recovering addicts to the facilities that saved their lives. Recovery Record provides meal logs and plans, coping skills, and behavior-tracking charts for those struggling with eating disorders.

It’s no secret that millions in America wrestle with addiction — and as a nation we’re not quite sure how to deal with this fact. Problem-solvers that they are, MedTech app developers are stepping in and finding innovative new ways to empower people to conquer their addictions.

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How to Pitch Your Startup and Get Investment Capital https://www.dogtownmedia.com/how-to-pitch-your-startup-and-get-investment-capital/ Tue, 07 Jun 2016 21:31:44 +0000 http://www.dogtownmedia.com/?p=6639 In a recent episode of This American Life, first-time startup founder Alex Blumberg found himself...

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In a recent episode of This American Life, first-time startup founder Alex Blumberg found himself in a situation most iPhone app developers would kill for: meeting one-on-one with investor Chris Sacca (of Twitter, Instagram, etc.) to pitch his app idea.

Unfortunately, the meeting didn’t go as planned — to put it lightly, Blumberg crashed and burned. Tripping over his words, failing to cite statistics, prefacing virtually every statement with insecure words like “I think” and “maybe.”

Fortunately, this personal failure for Blumberg became an invaluable lesson for all of us in the tech community to learn from.

As his pitch fell apart, Sacca dropped the pretense of investing and began critiquing his pitching technique. At the end, he stepped into Blumberg’s shoes and pitched the app himself — including every detail he as an investor would want to hear. (If you haven’t heard it already, go check it out on NPR.)

In this post, we’re taking a close look at what makes pitches like Sacca’s so successful. We’ll start with the basic concepts and structures for startup pitch decks, then move on to look at the psychology that drives investors to pull out their wallets. At the end, we’ll offer some additional pointers based on our years of experience mentoring startups here at Dogtown Media.

What is a pitch deck?

A pitch deck is a presentation, usually in the form of slides and a prototype demonstration, that conveys everything an investor needs to know to decide they want to invest in a mobile app developer’s startup.

While slideshow presentations are the go-to method for accomplishing this (hence the term “deck”), the vast majority of startup slideshows go on far longer than the average investor’s attention span. Therefore, it’s important to fine-tune the flow until a person with no prior exposure to your app idea can understand and believe it.

A good pitch deck doesn’t just make your startup seem smart. It makes your startup feel inevitable.

The anatomy of a pitch

The elements of a pitch deck are similar to that of any other story. There should be a clear beginning that hooks the listener’s interest, a middle that fills in the details, and a conclusion that drives the listener to action.

Being formulaic may be bad for business, but it’s great for your pitch. Investors shouldn’t be left trying to put the pieces together. They expect mobile app developers to come to them with a clear, established structure.

1. Establish credibility

Establish your team’s credentials in your target industry. Management in a related business? Success with another digital product? This should take up no more than a few sentences.

2. Explain the problem

Successful mobile apps solve problems for their users. Uber solves the problem of getting places. Facebook solves the problem of staying in touch with friends.

Brevity is especially important here; any problem that requires a lot of backstory and circumstance will erode investor confidence. A problem that is simple and meaningful, on the other hand, will pique their interest.

3. Introduce your solution

They know who you are. They know what you’re fixing. Now it’s time to show them how you’re fixing it.

Be sure to highlight how your solution improves upon the current solution. For example, if you were pitching Uber, you wouldn’t just say it’s “an app that helps user get taxi rides.” Instead, you would highlight the pain the old solution causes millions of eager users: standing around in the rain, hoping a cab happens to drive by eventually.

If you have a functional prototype, this is a great time to include a demo — or at the very least screenshots.

4. Validate your competitive advantage

Now comes the tricky part: explaining why you’re uniquely qualified to implement a solution.

There’s a saying in Silicon Valley that “ideas are worthless and execution is everything.” While we’d argue that a good idea is far from worthless, in the case of investor relations the saying holds true. They don’t care how smart your idea is — they just want to believe that you, and you alone, can make it happen.

Competitive advantage doesn’t have to be years of experience serving your target demographic, or even years of experience in tech. Deep research, traction with a prototype, and strong existing partnerships can all convey a clear reason to invest in your team rather than someone else’s.

5. Validate your market

Building products for problems that don’t exist is, unfortunately, a big problem in mobile tech. Many startups build tools to scratch their own itches, only to discover that there isn’t a sufficiently large market to support their idea.

That’s why it’s important to prove a market exists for your product. Investors will expect to see some form of traction: excited beta users, web-based signups, convincing user interviews, etc. Beyond proving that people will use your product, you then have to prove that enough of them will pay for it in some form or another and drive revenue.

6. Monetization plan

Most apps are free. How will yours make money? This can be trickier to validate with only a limited prototype to draw beta users.

Were beta users willing to hand over payment information? How much are users spending on existing solutions? How is the competition faring? These are all questions you should be prepared to answer.

7. Competition

Completely new app ideas do exist, but the vast majority will have competition in some form right out of the gate. Remember, competition is good — it indicates that a market exists for your service, even if the competitors aren’t on mobile. From an investor’s standpoint, it’s important to see a clear plan for leveraging your competitive advantage — whatever that may be — and staying a step ahead of other teams.

8. Describe what you need to make it happen

Explain how the money will be used in detail, and ask for a specific amount based on actual needs. Investors want to see that you’ve done your homework and aren’t just looking for “padding cash” to keep you safe. Round figures like “two million” sound goofy because, honestly, they are. So, crunch the numbers, get an estimate of your actual business costs per round, and make sure it’s more in-depth than “half on development and half on growth hacking.”

9. Are you in?

Mobile is a time-sensitive world. Chances are you needed to launch yesterday to make the desired impact. An ideal pitch deck gets that urgency across to investors; they should feel like the time is now or never.

Psychology 101: What investors want to hear

iPhone app idea

Investors are, in many ways, the perfect audience for Los Angeles iPhone app developers.

They want to be there. They live and breath startups, just like you. They want to get out their wallets and invest, or else they wouldn’t be listening to you in the first place.

That said, investor’s have good reason to be risk-averse. Industry reports consistently cite only a 5–1% success rate for mobile startups.

Here are three psychological trump cards that can push your pitch deck a cut above:

1. Adapt to your audience

Whether or not they admit it, people like to invest in people that remind them of themselves. Every investor is different, so it’s important to be prepared to match their energy level and meet them halfway when it’s time to talk details. Business guy? Stick to the figures. Eccentric creative? Have fun with an energetic demo.

2. Brevity above all else

Most pitch decks are simply too long. There’s a saying in show business that you should “always leave them wanting more.” The same applies here — trimming down a mountain of data and background into a pint-size serving is no easy feat, but the payoff is worth it.

3. Connect emotionally

Startup founders tend to be a passionate crowd. That’s a good thing, and the structure of your pitch should convey what’s unique and important about your story. The problem you’re solving matters to you. Put the listener in your shoes and help them share that feeling.

Discouraging results aren’t defeat. They’re feedback.

Pitching is an art. Like any art, it takes practice and persistence. Only a tiny fraction of your contacts will convert into investors.

Be prepared to meet with as little as one in thirty investors you contact, and don’t get discouraged when an even slimmer percentage of those meetings turn into seed funding.

The rewards are endless for iPhone app developers who buckle down and make it happen.

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Ninety-Nine Problems: the Psychology of Mobile App Pricing https://www.dogtownmedia.com/ninety-nine-problems-the-psychology-of-mobile-app-pricing/ Mon, 15 Feb 2016 16:37:51 +0000 http://www.dogtownmedia.com/?p=6474 Scroll through the Apple App Store or Google Play and you’ll quickly notice that 99%...

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Scroll through the Apple App Store or Google Play and you’ll quickly notice that 99% of the top apps have something very conspicuous in common; they’re all priced in 99 cent increments. You don’t have to be a mathematician or iPhone app developer to notice that something’s afoot.

While freemium pricing is undeniably on the rise, the same phenomena holds true for those pesky in-app purchases and membership fees, with prices outside of $0.99–$4.99 few and far between.

For NYC iPhone app developers, pricing your mobile app is a question of psychology, perhaps even more so than economics. Studies have shown that the forces determining how we spend our hard-earned money are murkier than we’d like to think, with emotions and associations playing a huge part in the process.

It comes as a surprise to some iPhone app developers that 99 cent apps are so successful in the Apple App Store; particularly since the trick of pricing a product at one cent under the dollar has a stronger association with cheap dollar stores than a high-class brand like Apple.

The data disagrees. Studies on consumer spending habits have shown the trick to work again and again, with prices including the number 99 outperforming alternative figures — both higher and lower — by as much as 24%.

iPhone app development companies have also found that 99 cent apps perform well due to the lack of “free trial” capability in the Apple App Store. From a psychological standpoint, 99 cents seems like throwaway money compared to an even dollar, even though the difference is a single penny.

Meanwhile, on the higher end of the pricing spectrum, iPhone app developers will find that the reverse can sometimes be true. In the right context, mobile app users favor rounded “uncluttered” pricing to specific, complex decimal points. It’s the same thinking that separates fancy restaurants with whole-dollar pricing from cheap diners with messy menus including the decimals.

Take a look at AirBnB, for example. In a clever analysis on Medium, UX designer Aaron Otani illustrated how something as simple as including a coma in figures over 1,000 adds clutter and deters shoppers. (While AirBnB doesn’t take it this far, removing the dollar sign has also been shown to boost conversions for luxury goods.)

The lesson for iPhone app developers is clear: always use data to back up your app pricing decisions, and measure how minor “arbitrary” changes affect your users’ spending habits. You never know — nudging a penny or moving a comma could make a surprising difference to your bottom line.

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