The other day I was looking through some of my old notebooks when I came across the notes I'd made during a meeting with the creators and founders of this restaurant app.
I haven't spoken to them for a while, and in fact, I think we've lost touch.
It might be a good idea to get in touch with them again and see how they're coming along.
When I first met them, they'd begun for over a year and they were kinda wondering about their direction. They were great, hardworking peeps. They'd thought long and hard about the industry they were in, and they knew, from whatever was trending, that there would be substantial growth in the years to come.
The problem was, they said, was whether their app, and their company, could sustain through the intervening years. They had low user base, they had low marketing budget, and they didn't know how else they were going to get the word out to get more users.
I guess that's one of the most boggling problems that face app developers. See, truth is, it's doable to create the app. You've got the SDK all decked out for you. And after the app is created, it becomes a sort of pattern to market it out.
The problem is always the CAC- because whether you like it or not, every customer comes with a price tag attached to them- and the user acquisition.
Between CAC (which will have most people controlling like mad), and user acquisition, it is always user acquisition that shapes the name of the game.
I've seen apps die fast because there were no users.
I've seen apps die slow because users downloaded them for a period of time and then offloaded them when they were done with them.
But I've also seen apps win because they calculated their CAC well, they grabbed the loyalty of their users, integrated them into their lives and made them a necessary part of their lifestyle.
Not just that, I've seen apps work together with merchandise, or wearables, or something physical, where as a pair, the user becomes needful for it and grows dependency on it.
And of course, besides all of that above, there's always the business of monetization. This is one thing to look at- always. Investors love, love, love to ask this question.
"What's your revenue model?"
And now with the Uber-Grab thingy, they're more obligated to ask you about it. Because, whether or not you're an Uber lover, let's face it, they're out of this region. Not because they had no users. They had. Users aplenty. But because it seemed that their monetization model for the region didn't seemed to be working out for them, their investors made a decision. Of course, it is Grab's problem now, and one which they're going to have to whip out the calculators and forecasting software and get into the hunk of things, even as consumers on both sides grapple with the reality that the joys of price wars are presently gone.
Still, before one gets to the monetization model, there is the user acquisition.
This part is a b**ch.
App downloaders are a f**king fickle minded bunch.
One day they love you. Next day they don't. I don't know whether it is a millennial thing or a curiosity thing or whether we're all very practical these days. I can speak for myself, but I can't speak for others, and admittedly, I'm not a fine example of a typical app downloader. I'm the practical sort, and yes, I'm one of the a**holes who has no loyalty towards any app whatsoever.
I'm the "give me a d*** good reason to d/l your app otherwise I'm not going to do it because I don't need it, thank you."
I'm the "why are you charging me moolah for this app, what's so fantastic about it, does it make my life easier, do I really need your app to solve my problem, and is there any way you can offer it to me for free?"
And I'm the "apps i don't use have no place on my phone so can I delete the d*** thing?"
It's not the most accurate description of most downloaders, thank goodness, but yeah, you get the picture.
So, back to the restaurant app, we suggested that they do a SWOT. They seem to call it differently these days, but basically it means you have to identify your own lack, the opportunities and the market needs. You have to identify the gaps in the market, which simlar markets there are that have the same lack and you have figure out which is the one that you can plug right in.
Another thing we suggested was that they take one targeted solution and then repackage it to three different markets. Now, whilst this might sound weird, fact is, it isn't, and this technique has been heavily utilized in many an industry. What you think is three different solutions is in fact a single one- with the distinct differences taking the place of what we often call the USP.
Whether they've implemented their cross--market strategy or not, I'm not sure. What I'm pretty sure of is that they' would've changed their UI, and transformed their UX. They already were in the midst of doing it the other time we spoke.
They still have a road ahead of them.
That much these enthusiastic, hardworking peeps know.
If one has to examine category level growth, if one has to look at market dynamics and key customer trends and channel requirements and customer requirements and the competitor landscape plus the potential new market entries and potential growth industries and customer requirements all at the same time- all of this just to get a substantial foothold in the industry- it's not going to happen overnight.
It's going to be a sort of swirly-whirly journey, and these guys... they know it.
And that's a fairly great start. :)
When I first met them, they'd begun for over a year and they were kinda wondering about their direction. They were great, hardworking peeps. They'd thought long and hard about the industry they were in, and they knew, from whatever was trending, that there would be substantial growth in the years to come.
The problem was, they said, was whether their app, and their company, could sustain through the intervening years. They had low user base, they had low marketing budget, and they didn't know how else they were going to get the word out to get more users.
I guess that's one of the most boggling problems that face app developers. See, truth is, it's doable to create the app. You've got the SDK all decked out for you. And after the app is created, it becomes a sort of pattern to market it out.
The problem is always the CAC- because whether you like it or not, every customer comes with a price tag attached to them- and the user acquisition.
Between CAC (which will have most people controlling like mad), and user acquisition, it is always user acquisition that shapes the name of the game.
I've seen apps die fast because there were no users.
I've seen apps die slow because users downloaded them for a period of time and then offloaded them when they were done with them.
But I've also seen apps win because they calculated their CAC well, they grabbed the loyalty of their users, integrated them into their lives and made them a necessary part of their lifestyle.
Not just that, I've seen apps work together with merchandise, or wearables, or something physical, where as a pair, the user becomes needful for it and grows dependency on it.
And of course, besides all of that above, there's always the business of monetization. This is one thing to look at- always. Investors love, love, love to ask this question.
"What's your revenue model?"
And now with the Uber-Grab thingy, they're more obligated to ask you about it. Because, whether or not you're an Uber lover, let's face it, they're out of this region. Not because they had no users. They had. Users aplenty. But because it seemed that their monetization model for the region didn't seemed to be working out for them, their investors made a decision. Of course, it is Grab's problem now, and one which they're going to have to whip out the calculators and forecasting software and get into the hunk of things, even as consumers on both sides grapple with the reality that the joys of price wars are presently gone.
Still, before one gets to the monetization model, there is the user acquisition.
This part is a b**ch.
App downloaders are a f**king fickle minded bunch.
One day they love you. Next day they don't. I don't know whether it is a millennial thing or a curiosity thing or whether we're all very practical these days. I can speak for myself, but I can't speak for others, and admittedly, I'm not a fine example of a typical app downloader. I'm the practical sort, and yes, I'm one of the a**holes who has no loyalty towards any app whatsoever.
I'm the "give me a d*** good reason to d/l your app otherwise I'm not going to do it because I don't need it, thank you."
I'm the "why are you charging me moolah for this app, what's so fantastic about it, does it make my life easier, do I really need your app to solve my problem, and is there any way you can offer it to me for free?"
And I'm the "apps i don't use have no place on my phone so can I delete the d*** thing?"
It's not the most accurate description of most downloaders, thank goodness, but yeah, you get the picture.
So, back to the restaurant app, we suggested that they do a SWOT. They seem to call it differently these days, but basically it means you have to identify your own lack, the opportunities and the market needs. You have to identify the gaps in the market, which simlar markets there are that have the same lack and you have figure out which is the one that you can plug right in.
Another thing we suggested was that they take one targeted solution and then repackage it to three different markets. Now, whilst this might sound weird, fact is, it isn't, and this technique has been heavily utilized in many an industry. What you think is three different solutions is in fact a single one- with the distinct differences taking the place of what we often call the USP.
Whether they've implemented their cross--market strategy or not, I'm not sure. What I'm pretty sure of is that they' would've changed their UI, and transformed their UX. They already were in the midst of doing it the other time we spoke.
They still have a road ahead of them.
That much these enthusiastic, hardworking peeps know.
If one has to examine category level growth, if one has to look at market dynamics and key customer trends and channel requirements and customer requirements and the competitor landscape plus the potential new market entries and potential growth industries and customer requirements all at the same time- all of this just to get a substantial foothold in the industry- it's not going to happen overnight.
It's going to be a sort of swirly-whirly journey, and these guys... they know it.
And that's a fairly great start. :)