This document discusses how to build recurring revenue services for a mobile app development business. It outlines the challenges of relying solely on project-based work and proposes recurring services as a solution. Specific recommendations include: - Mapping services to the typical app lifecycle to meet customer needs over time - Starting simply and making services progressively more complex - Clearly defining what each service level includes and excludes to facilitate upselling - Positioning services as an integral part of the process rather than an afterthought - Focusing on opportunities to increase sales, close more deals, and obtain new work from existing clients

1. How to get going with Recurring Revenue Services
THE BUILDING BLOCKS OF RETAINER BASED INCOME
August 24th 2017

2. Presenters on Todays Webinar
Founder of Kumulos
Commercial Role with Large Mobile App Dev Business
15 years working with businesses to productize service offerings
Head of Content
Journalist and Social Media
Tech industry for the last 22 years
Scott “the Chair” Calonico
Bob “the Content” Lawson

3. Today, we’ll cover…
• Why Recurring Revenue is critical to success
• How it changes behavior within your business
• How to get going
– One way to structure your services
• To sell
• To create monthly recurring revenue
• To open up new opportunities
• How to position this so you stand out from the crowd

4. Backdrop
Mobile App Development Business, building apps for
Enterprise, SMB’s, Start-ups and App Entrepreneurs
• Results from year-long research
• Talking to many, many Mobile App Development Businesses
– their challenges, their approach
• Common practice and denominators of success

5. The Drown or Swim Challenge
Project
Income
TIME
PROJECT #1 PROJECT #2 PROJECT #3

6. The Drown or Swim Challenge
Project
Income
TIME
PROJECT #1 PROJECT #2 PROJECT #3
Smooth Income
Resource Crunch
?

7. The Drown or Swim Challenge
Project
Income
TIME
PROJECT #1 PROJECT #2 PROJECT #3
Running Costs

8. The Drown or Swim Challenge
Project
Income
TIME
PROJECT #1 PROJECT #2 PROJECT #3
Running Costs
Profit Profit Profit
Cutting
into cash
reserves
Cutting
into cash
reserves

9. The Drown or Swim Challenge
Cash Reserves to see you through the lean times
3-6 months running costs
Growth anxiety
Under resourced in peak times
Chase “bad projects” in lean times

10. The Drown or Swim Challenge
Project
Income
TIME
PROJECT #1 PROJECT #2 PROJECT #3
Running Costs
SERVICES REVENUE
Running costs

11. The Drown or Swim Challenge
Project
Income
TIME
PROJECT #1 PROJECT #2 PROJECT #3
Running Costs
SERVICES REVENUE
Running costs
10x Value 1-1.4 x Value

12. Recurring Revenue – What are we talking about
Monthly Contracts
Pre-Paid Hours
Labor Supply
Reselling
Managed
Development
Teams
Retainer Based Income

13. What to Avoid
Don’t Get out of
your
comfort-zone
Avoid One size
fits all
support contract
Don’t Sell Services as an
“After-thought”
Don’t over-sell a
service – before its
right

14. Do…
Keep it simple
Make it clear
Custom fit
Align with CUSTOMER goals
Make it progressive
Make it visible
Make it Scalable
Make it easy for
them to buy

15. Customer Goals - Typical App Life Cycle
2-3 Years2-3 Months2-3 Weeks
CREATIVE BUILD OPTIMIZE
IDEATION
DESIGN
BUILD TEST DEPLOY
App PROJECT LIFECYLE
?

16. Customer Goals - Typical App Life Cycle
2-3 Years2-3 Months2-3 Weeks
CREATIVE BUILD OPTIMIZE
IDEATION
DESIGN
BUILD TEST DEPLOY
App PROJECT LIFECYLE
25% 75%
10% 90%
?0%

18. Questions…
I’m a Developer…
Not my area of
expertise…
I don’t have the
time…
This will increase
my costs…
I don’t want to
be
on the hook…
We don’t have
the skills…

19. Customer Goals - Optimization Service Blocks
2-3 Years
Acquire
Engage
Retain
Retire
RetentionMaintain - > Hosting Heath & Wellbeing Bug Fixing

20. Customer Goals - Optimization Life Cycle
2-3 Years
Acquire
Engage
Retain
Retire
RetentionMaintain - > Hosting Heath & Wellbeing Bug Fixing

21. Service Level – Match to Client Priorities

22. Right fit YOU and Right fit YOUR CLIENT
Reactive
Proactive
Managed
$
$ $
$ $ $ $
Service Blocks
ServiceLevels
Maintain Acquire Engage Retain
The Optimization Service Stack

23. Example – Client #1
Reactive
Proactive
Managed
$
$ $
$ $ $ $
Service Blocks
ServiceLevels
Maintain Acquire Engage Retain
The Optimization Service Stack

24. Example – Client #1 +6 months
Reactive
Proactive
Managed
$
$ $
$ $ $ $
Service Blocks
ServiceLevels
Maintain Acquire Engage Retain
The Optimization Service Stack

25. Reactive Service Blocks
How many
new
downloads
does the
App have?
How
recently
and how
frequently
are users in
the app?
How well is
the App
holding on
to users?
Is the App
stable and
working
properly?
Reactive
$
Reporting
and
Analytics
ASO Tools
Push
Notification
tools
Proactive
Managed
$ $
$ $ $ $
This is what
has happened
Service Blocks
ServiceLevels
Maintain Acquire Engage Retain

26. Proactive Service Blocks
Service Blocks
• Reporting
and Analytics
• App Store
Optimization
• Push
Notifications
• A/B Testing
Reactive
Managed
$
$ $ $ $
This is what we
recommend you
do to improve
the outcome of
your App.
This is what
we need to
do (with the
Store Listing)
to grow the
install base
This is what
we need to
do to get
more users
more
engaged
This is what
we need to
do to keep
your users
using your
App
This is what
we need to
do to
improve
performance
Proactive
$$
ServiceLevels
Maintain Acquire Engage Retain

27. Managed Service Blocks
Maintain Acquire Engage Retain
Service Blocks
• Manage the
App Roadmap
• Drive
Acquisition
Campaigns
• A/B testing app
functionality
• Drive
Engagement
and Retention
campaigns
Reactive
Proactive
$
$ $
Your Clients
“Digital Product
Manager”
ServiceLevels
We are at 73%
of the 10,000
new download
target – this is
what we are
doing to drive
more
These are the
results from
the push
notification
campaigns and
engagement is
up 14%
As a result of
the
improvements
to the App we
have seen a 7%
increase in
retention rates
from US active
users
iOS 11 is
launching we
need to
upgrade your
App to optimize
for the upgrade
Managed
$$$$

28. Reselling or Bundling up with your labor.
The Optimization Service Stack
Reactive
Proactive
Managed
$
$ $
$ $ $ $
ServiceLevels
Tool costs Margin Labor Cost Labor Margin
Reseller
Reseller with
Services
Managed
Services

29. What Does Your REACTIVE SERVICE Include?
• Host your App content and keep the infrastructure tuned
• A portal to manage App content
• Analytics Dashboard to see how track App performance
• Push notification management console to send push messages and see results
• Document store to share all project documents (specifications, brand guidelines, links
to Trello boards, Slack channels etc) so you can collaborate better with us
• App Store Performance Console to track key word ranks and star ratings
• Manage all your apps with us through one single portal…
• Monthly summary report on email showing App performance
• Monthly meeting to discuss findings (and agree costs for actions)
$250 a
month

30. What is NOT included in the REACTIVE SERVICE
• Suggestions on how to drive up the performance of the App
• A/B testing and detailed results analysis
• App Strategy Meetings
• Feature enhancement & development suggestions
• Advice on how the App should be developed
• Ideas to drive more downloads
• Help to increase user engagement
• Help to improve user retention
You want this?
Upgrade to our
Proactive Service
$749 a month

31. Pause & Summary
• Map services to customer needs & App Life Cycle
• Make them progressive – starting simple/easy to buy
• Choice of
– Resell & Mark Up
– Combination of labor and reselling
• Make it VERY CLEAR what's in scope for each service
block – don’t over deliver and hurt the upsell.

32. Hunt for App opportunities
• Services to Target Apps you
want to work with
• Show them how you would
to a better job and drive
better results for their App

33. Increase your Close Rate
• Offer more than your competition
• Demonstrate you offer greater insight
• Show you understand their business
• Tell them how you can drive a better outcome from their
App investment with you.
• That’s why you are different from the “Average Mobile
App Development Firm”

34. Stay close to Clients
• Keeps the dialogue open once the
App is delivered
• Make sure your sales don’t start
from $Zero
• Truffle-Hunt and find new opportunities with
Clients

35. Messaging to Clients
We are different from the Run-of-the-
Mill App Developer. We don’t “stop at
the waters edge” when we build your
App.
We get in the swamp with you… and
work with you to make your App a
success.

36. What its like to work with you
• We are your “Digital Program Manager”
• Regular dialogue & driving the agenda
on where the App should be improved –
to give better results
• Managing priorities & upgrades
• Managing Infrastructure
• Always working with you to drive the
commercial success of your App.

37. ESSENTIALS FOR SUCCESS #1
Position Recurring Revenue
Services as Part of your Process.
NOT an after-thought or upsell.
“Its just the way we roll”

38. ESSENTIALS FOR SUCCESS #2
• Start simple – progress when
the time is right.
• Make it easy for your customer
to say YES
Base hits rather than home runs

39. ESSENTIALS FOR SUCCESS #3
Think of this as the key that unlocks
sales opportunities
– Hunt for new customer
– Close more deals
– Land new projects from existing
customers
Be Different from the Competition

40. To help you get going…
• Playbooks
• Services Guides
• Marketing Material

41. Kumulos White-label Service Delivery Platform

42. Future Webinars
• How to build a Service Layer into your Mobile App Development Business
September 28th 11am (Eastern US)
• Service Blocks
• Service Scope
• How to message and sell
• How to Price Recurring Revenue Services in your Mobile App development Business.
October 26th 11am (Eastern US)
• Different pricing approaches
• How to price to sell
• How to price for profit
https://www.kumulos.com/webinars
Spaces are limited and filling up fast – register today

43. Free one hour telephone consultation
• Available to everyone on this webinar today.
• Deeper dive
• Fit the approach to unique aspects of your
business
• With your wider management team.
• info@Kumulos.com

44. Questions?
www.kumulos.com
info@kumulos.com

45. Thank You
See you next time
www.kumulos.com
info@kumulos.com