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Mobile 101: Planning and Strategy

               Raj Singh
           CEO @ Tempo AI
            raj@tempo.ai
             @mobileraj
Agenda
• Idea
• Product
    – AARRR
•   Product Defensibility
•   Platform
•   Tools
•   Partnerships
Idea
• No magic bullets here
• Get started and iterate
    – You will start with A and end-up with B (always!)
• Browse top lists; look for apps after the top 25
    – Why aren’t they in the top 25?
    – Can you make them better?
• Less competitive categories
• Lifestyle or venture-backed business
• Consumer vs Enterprise
    – Consumer GTM (go to market) is via the App Store but enterprise is now following
      the same suit (bottoms-up sales)
    – B2B (business to business) custom apps is a big business but not usually organic
• Mobile first or is mobile an extension
    – If the latter, create the audience at the web and provide mobile to increase
      stickiness
    – Some use mobile the other way; mobile as their customer acquisition channel but
      primary use is at the Web (eg Expensify)
• Ultimate goal is often high DAU (daily active use) which translates into high
  revenue ($$$)
Product
• Dave McClure’s AARRR as a guideline
  – Acquisition
  – Activation
  – Retention
  – Referral
  – Revenue
Product - Acquisition
• App store will represent the majority of your downloads
    – Users may discover your app via the website or PR, but most will then open the
      App Store, search for your product and download
    – Direct search will represent 50%+ of your product (and thus why PR is important)
• SEO/SEM is now a science; ASO (App Store Optimization)
    – A/B testing of keywords, icons, app title
    – Descriptions and even sample images now have a format
• Different categories have different models of use
    – Games tend to have high acquisition but high bounce / drop-off and lower MAUs
      (monthly active users) but high revenue
    – Business and Productivity categories (to contrast) have lower acquisition but
      higher DAU
• Some apps can benefit from paid acquisition especially if you can calculate
  the LTV (lifetime value) of your user
    – Unfortunately, it is still difficult to track ads to actual app usage since cookies
      can’t carry into apps
• Product UX is key
    – High delight apps will have higher retention early-on
    – Path users like the animation but don’t know what the app is for?
Product - Activation
• Activation is the on-boarding experiencing (the first time
  use)
• Mobile users are fickle; the killer app is the App Store itself
  (download, use and disappear)
• The activation experience needs to be finely tuned
   – A/B tested to the extreme, from button placement, language
     and more
   – Count clicks
   – Be transparent with the data you are collecting
• Social login (eg login via Facebook) vs registration vs no
  registration
   – Each have pros/cons
   – Logging-in via Twitter/Facebook etc is no magic bullet for virality
Product - Retention
• Retention is always hard (mobile or not)
• If not gaming, are you a replacement app or a companion app (useful or
  fun?)
    – Replacement apps are hard but can have high reward
    – Companion apps are new use cases or more vertical
• Combination of gaming-like mechanics, psychology, clever CRM, social
  mechanics and other to keep retention high
    – Game mechanics such as vanity, gamification of stats, social obligation and
      other can get a user hooked
    – CRM works well in-app; create a communication channel to your user like
      Twitter is to your audience
• Can your app benefit with additional platforms (web or other devices);
  benefits across platforms and a universal ID?
• Use push notifications to alert the user but don’t get too noisy (sensitivity
  to noise has skyrocketed)
• Updates is a great way to get the user re-engaged
    – Analysis around app updates; every 18 days?
Product - Referral
• How do you achieve unfair customer acquisition?
• Can you make your app viral?
    – Virality = frequency X reach X yield (Sean Parker’s virality formula)
         • Frequency = How often does the user perform a viral action
         • Reach = How many people does that action reach
         • Yield = What % of the reach converts to a new user
• Can you make your app social?
    – Does it drive vanity?
    – What is the benefit if my friends use this app?
• Paid acquisition only makes sense if you have a good understanding of
  your user’s LTV
• Cross-promotion is very effective and more valuable then even advertising
  revenue
    – Heavily used in gaming (critical mass moved among games)
• WOM (Word of Mouth) can work but not often
    – An experience that hasn’t been seen (usually from very delightful UI)
    – Incredibly useful
    – Games your buddies play
Product - Revenue
• 5 major business models in the App Store
   – Free (just for fun or I don’t care about revenue)
   – Paid (usually a life-style business since 1-time paid plateaus in
     the few M / year range (max)
   – Advertising (definitely a life-style business; ad revenue is not
     substantial to the individual publisher unless you have 10s if not
     100s of apps or are in search)
   – In-app purchase (the model of choice within gaming; effective
     but requires a lot of tuning)
   – Subscription (often requires a multi-platform strategy since the
     sub is converted at the desktop b/c of the mobile App Store tax;
     usually self-selects certain categories like Productivity, Health or
     Business)
• What do you want to be and what are your goals?
Product Defensibility (Esp. Mobile First)
• Software mobile apps have become too easy to develop
• Very successful apps often have 10s of copycats in a matter
  of weeks (2 kids in a garage)
• Ways to increase defensibility
   – Use custom UI/controls (as opposed to native controls/widgets)
     although this will eventually also be copied (it will take more
     time)
   – Collect user data and create benefits in the app with user data
     (is your app learning or personalized to the user)
   – Create app benefits or capabilities with scale where being first-
     to-market helps
   – Unfair partnerships
   – Unfair go to market (offline created brand etc)
Platform
• iOS or Android is the first debate
• No right answer; depends on your goals
• iOS makes more money
• Android has more users and it’s growing even
  faster
• Android easier to develop on early-on; harder to
  develop on later (b/c of emerging fragmentation)
• Blackberry or WinPhone7
Tools
• User analytics (Flurry, Google etc)
   – Great for seeing what activities in your app drive
     usage to A/B test
   – Can perform basic cohort analysis and iterate
• Bug tracking (Crittercism, Crashlytics etc)
   – Locating bugs can be tiring; these tools can help with
     stack traces and more
• Customer service (Zendesk etc)
   – Good comments go to the App Store and bad
     comments go to you
   – Channel feedback and respond to users directly
Partnerships
• Mobile ecosystem is wide and deep
• Handset manufacturers (OEMs), operators, 3rd party
  app stores, chipset providers and many others
• Unfair go-to-market channels based on your app
  category
   – Enterprise apps can leverage MDM (mobile device
     management) providers to penetrate large enterprise
   – Game apps do well in 3rd party app stores as well as
     operator app stores (because they are revenue generating
     and operators want revenue)
   – Replacement apps can often be pre-loaded with work to
     the OEMs (eg Samsung wants an alternate mail app)
Summary
• Lots of stuff to think about
• Many will be answered as you go along
• Get started and start iterating; you will learn
  along the way and you will zig-zag before figuring
  it out

Raj Singh
CEO @ Tempo AI
raj@tempo.ai
@mobileraj

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WIPJam @ MMM - Mobile 101 Planning and Strategy by Raj Singh

  • 1. Mobile 101: Planning and Strategy Raj Singh CEO @ Tempo AI raj@tempo.ai @mobileraj
  • 2. Agenda • Idea • Product – AARRR • Product Defensibility • Platform • Tools • Partnerships
  • 3. Idea • No magic bullets here • Get started and iterate – You will start with A and end-up with B (always!) • Browse top lists; look for apps after the top 25 – Why aren’t they in the top 25? – Can you make them better? • Less competitive categories • Lifestyle or venture-backed business • Consumer vs Enterprise – Consumer GTM (go to market) is via the App Store but enterprise is now following the same suit (bottoms-up sales) – B2B (business to business) custom apps is a big business but not usually organic • Mobile first or is mobile an extension – If the latter, create the audience at the web and provide mobile to increase stickiness – Some use mobile the other way; mobile as their customer acquisition channel but primary use is at the Web (eg Expensify) • Ultimate goal is often high DAU (daily active use) which translates into high revenue ($$$)
  • 4. Product • Dave McClure’s AARRR as a guideline – Acquisition – Activation – Retention – Referral – Revenue
  • 5. Product - Acquisition • App store will represent the majority of your downloads – Users may discover your app via the website or PR, but most will then open the App Store, search for your product and download – Direct search will represent 50%+ of your product (and thus why PR is important) • SEO/SEM is now a science; ASO (App Store Optimization) – A/B testing of keywords, icons, app title – Descriptions and even sample images now have a format • Different categories have different models of use – Games tend to have high acquisition but high bounce / drop-off and lower MAUs (monthly active users) but high revenue – Business and Productivity categories (to contrast) have lower acquisition but higher DAU • Some apps can benefit from paid acquisition especially if you can calculate the LTV (lifetime value) of your user – Unfortunately, it is still difficult to track ads to actual app usage since cookies can’t carry into apps • Product UX is key – High delight apps will have higher retention early-on – Path users like the animation but don’t know what the app is for?
  • 6. Product - Activation • Activation is the on-boarding experiencing (the first time use) • Mobile users are fickle; the killer app is the App Store itself (download, use and disappear) • The activation experience needs to be finely tuned – A/B tested to the extreme, from button placement, language and more – Count clicks – Be transparent with the data you are collecting • Social login (eg login via Facebook) vs registration vs no registration – Each have pros/cons – Logging-in via Twitter/Facebook etc is no magic bullet for virality
  • 7. Product - Retention • Retention is always hard (mobile or not) • If not gaming, are you a replacement app or a companion app (useful or fun?) – Replacement apps are hard but can have high reward – Companion apps are new use cases or more vertical • Combination of gaming-like mechanics, psychology, clever CRM, social mechanics and other to keep retention high – Game mechanics such as vanity, gamification of stats, social obligation and other can get a user hooked – CRM works well in-app; create a communication channel to your user like Twitter is to your audience • Can your app benefit with additional platforms (web or other devices); benefits across platforms and a universal ID? • Use push notifications to alert the user but don’t get too noisy (sensitivity to noise has skyrocketed) • Updates is a great way to get the user re-engaged – Analysis around app updates; every 18 days?
  • 8. Product - Referral • How do you achieve unfair customer acquisition? • Can you make your app viral? – Virality = frequency X reach X yield (Sean Parker’s virality formula) • Frequency = How often does the user perform a viral action • Reach = How many people does that action reach • Yield = What % of the reach converts to a new user • Can you make your app social? – Does it drive vanity? – What is the benefit if my friends use this app? • Paid acquisition only makes sense if you have a good understanding of your user’s LTV • Cross-promotion is very effective and more valuable then even advertising revenue – Heavily used in gaming (critical mass moved among games) • WOM (Word of Mouth) can work but not often – An experience that hasn’t been seen (usually from very delightful UI) – Incredibly useful – Games your buddies play
  • 9. Product - Revenue • 5 major business models in the App Store – Free (just for fun or I don’t care about revenue) – Paid (usually a life-style business since 1-time paid plateaus in the few M / year range (max) – Advertising (definitely a life-style business; ad revenue is not substantial to the individual publisher unless you have 10s if not 100s of apps or are in search) – In-app purchase (the model of choice within gaming; effective but requires a lot of tuning) – Subscription (often requires a multi-platform strategy since the sub is converted at the desktop b/c of the mobile App Store tax; usually self-selects certain categories like Productivity, Health or Business) • What do you want to be and what are your goals?
  • 10. Product Defensibility (Esp. Mobile First) • Software mobile apps have become too easy to develop • Very successful apps often have 10s of copycats in a matter of weeks (2 kids in a garage) • Ways to increase defensibility – Use custom UI/controls (as opposed to native controls/widgets) although this will eventually also be copied (it will take more time) – Collect user data and create benefits in the app with user data (is your app learning or personalized to the user) – Create app benefits or capabilities with scale where being first- to-market helps – Unfair partnerships – Unfair go to market (offline created brand etc)
  • 11. Platform • iOS or Android is the first debate • No right answer; depends on your goals • iOS makes more money • Android has more users and it’s growing even faster • Android easier to develop on early-on; harder to develop on later (b/c of emerging fragmentation) • Blackberry or WinPhone7
  • 12. Tools • User analytics (Flurry, Google etc) – Great for seeing what activities in your app drive usage to A/B test – Can perform basic cohort analysis and iterate • Bug tracking (Crittercism, Crashlytics etc) – Locating bugs can be tiring; these tools can help with stack traces and more • Customer service (Zendesk etc) – Good comments go to the App Store and bad comments go to you – Channel feedback and respond to users directly
  • 13. Partnerships • Mobile ecosystem is wide and deep • Handset manufacturers (OEMs), operators, 3rd party app stores, chipset providers and many others • Unfair go-to-market channels based on your app category – Enterprise apps can leverage MDM (mobile device management) providers to penetrate large enterprise – Game apps do well in 3rd party app stores as well as operator app stores (because they are revenue generating and operators want revenue) – Replacement apps can often be pre-loaded with work to the OEMs (eg Samsung wants an alternate mail app)
  • 14. Summary • Lots of stuff to think about • Many will be answered as you go along • Get started and start iterating; you will learn along the way and you will zig-zag before figuring it out Raj Singh CEO @ Tempo AI raj@tempo.ai @mobileraj