This is a story about a mobile app that brought Meinestadt media company the revenue 2,4 times bigger than planned. In 2015, the Meinestadt team decided to create a new mobile product to replace the outdated one. The work was started with a prototype (MVP) entitled StadtMeister. The market and users accepted the MVP well, and the transfer to the new product received a green light.
We received a task to provide the commercial department with an opportunity to attract large clients of the Mercedes-Benz level with the new approaches to advertising.
HOW TO INCREASE MOBILE APP REVENUE IN 6 STEPS
Our work is based on the following approach:
- we form a business model for a mobile app;
- we make a monetization formula;
- we analyze the correlation between a mobile app KPI and revenue;
- we integrate analytic systems to control the indicators;
- we launch the first version and measure audience indicators, fill in the KPI calculator with the data obtained;
- we develop iteratively, via short-term product changes , which we call “sprints”. In each sprint, we implement new ideas, measure their effect on the KPIs and set tasks for the following sprint.
MEINESTADT APP BUSINESS MODEL ON IOS AND ANDROID
At this iteration, we set a goal for ourselves to show that a product can not only provide the sales department with a new approach to advertising but also generate the revenue itself. For this, we envisaged monetization models via native advertising and working with partners.
MOBILE APP KPI
At this step, we created a table showing the correlation between the mobile app’s KPIs and the revenue. This let us build a revenue forecast to check against during 2017. The table was called a “KPI calculator”. It helps choose a project development strategy.
To build the KPI calculator, we use a ready-made and publicly open template.
We came up to the first sprint. The sprint tasks were to prepare Stadtmeister to be launched for the large audience, rename it to Meinestadt and tune up the analytics according to the calculator.
LAUNCH AND SOAR INSTEAD OF losing one's face
The apps started to get updated while we were taking measurements in the analytic systems and receiving users’ feedback.
Below are the first positive discoveries!
- We obtained a sufficient number of the viewed screens for the sales department to start working.
- The average number of visits made by users per month — 2,78 times — is more than we expected to see. And the indicator has remained unchanged for 4 months. People like the new product!
And a couple of disappointments:
- Not every user is ready for drastic changes, due to which we started receiving low rates and negative comments. This will affect the development roadmap, and we will be adding changes to the following sprints in order to win back the loyalty of these users.
- There is a sudden problem with the “content for adults”. Since the app has the functionality of user generated content, it starts to be abused by malicious people.
That is why we add the following tasks to the second sprint on developing the mobile apps:
- To design and launch an app guide for long-time users. It will help them understand what has changed and cope with difficulties.
- To make changes in the moderation system and tune up blocking of the undesired content on the server.
THREE MODELS OF MONETIZING A MOBILE APP
- Monetizing via native advertising.
- Monetizing via partner advertising.
- Monetizing via special projects.
NEXT STEP IN MEINESTADT DEVELOPMENT FOR IOS AND ANDROID
We confirmed the hypothesis. We can create a mobile app which will reinforce the offer of the Meinestadt sales department. What awaits the app further on?
In the following sprints we focus on improving the mobile app for users. And the two key indicators, the growth of which becomes our goal, are user retention and monthly active users (MAU).
We made the weather interface maximum informative, as this section is visited by 43% of the app users. This should improve the impression from the app and inspire the audience to come back. This is our work on retention.
Besides, we launched an advertising campaign on the Meinestadt web projects, which increased the user migration from the website to the mobile app. This is a direct influence on the monthly audience figures. This is our work on MAU.
RESULTS OF THE FIRST THREE SPRINTS AFTER MVP LAUNCH
Today the app is units of traffic percentage in relation to the web portal visits. And in the falling market of media advertising we have created a mobile product which attracts an advertiser with its innovations. For the sales department, this opens the doors of the clients which were previously closed. And this helps them sell other advertising products of the Meinestadt company.
Meinestadt mobile app helped get famous clients into the portfolio:
WE HAVE HELPED A MOBILE APP EARN 2,38 TIMES MORE. YOUR BUSINESS CAN DO THE SAME
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