#129: Creating a profitable growth strategy for Subscription Apps with Alexander Guerra, Head of Monetization from baz SuperApp
Nov 21, 2022
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Head of Monetization at baz SuperApp, Alexander Guerra, shares a 7-step strategy for profitable growth in subscription apps. He discusses challenges app marketers face, importance of validation, pricing structures, experimentation, and feedback loops. Topics include app industry bugbears, Android vs. iOS preference, and favorite features like communication apps.
A strong growth strategy is crucial for profitability in the app subscription market.
Incorporating monetization goals and pricing simulations are key steps in building a profitable app business.
Deep dives
Developing a Robust Growth Strategy for Subscription Apps
In the evolving landscape of app monetization, the shift towards app subscriptions necessitates a strong growth strategy for profitability. Former members of app marketing teams, like Alex from Uber, provide valuable insights on the importance of a solid growth strategy in building a profitable app business. Subscription apps now require a robust growth strategy to navigate the competitive market and retain users effectively.
Challenges and Strategies in App Monetization
App businesses face challenges like retention and monetization in a competitive market. Companies need to focus not only on customer acquisition but also on retaining users and effectively monetizing their apps. The current economic landscape, marked by layoffs and changing demand post-COVID, underscores the importance of adapting monetization strategies to sustain app businesses effectively.
The Seven-Step Strategy for Building a Profitable App Monetization Strategy
At a recent summit, Alex presented a seven-step strategy for building a profitable growth and monetization strategy for subscription apps. This comprehensive strategy encompasses external assessments, internal analysis, conceptual packaging, monetization goals alignment, pricing structure simulation, experimentation, and continuous feedback loops. By following these steps, app developers can create a sustainable business model that aligns with market demands.
The Future of App Monetization and Industry Innovation
As the app industry evolves, the focus on monetization becomes increasingly crucial. Alex highlights the need for innovation in business models and a shift towards sustainability and profitability. By incorporating monetization-focused innovations and adapting to changing market dynamics, app developers can navigate the evolving landscape of app subscriptions and emerging technologies like the metaverse.
Back in the day, when app developers made money selling copies of their apps, a growth strategy was important, then in-purchases came along and the necessity to retain app users, by having a solid strategy, became even more important. Today, when app subscriptions are the name of the game, it is absolutely crucial to have a robust app growth strategy to build a profitable app business.
Chances are you listening to this episode as you’re on your Uber ride and so who else not a former member of Uber’s marketing team should be on this episode to talk about a profitable growth strategy for subscription apps, so we’ve got Alex.
Today’s Topics Include:
The landscape of challenges app marketers face today
7-step strategy to build a profitable growth subscription strategy for apps
#1 - External Validation
#2 - Internal Validation
#3 - Conceptual Packaging
#4 - Monetization Goals
#5 - Pricing Structure & Simulation
#6 - Experimentation & Roll out
#7 - Feedback Loops
What bugs Alex about the app industry
Android or iOS? iOS
Alex's first mobile phone was an iPhone
What features would Alex miss most? Communication apps
“The first step is about external validation, external assessment. These basically imply making sure that your customers are perceiving your value proposition in a way that makes you identify these key success factors and which are relevant for them.”
“The second step is Internal Analysis and this normally works the best for companies that already have a subscription plan or any sort of pricing model that they want to revisit."
“I think there is a need to be more focused on monetization.”
A message from App Promotion Summit
Discounted ticket prices are currently available on all of our 2024 summits
https://apppromotionsummit.com/
London - 25 Apr 2024
NYC - 27 Jun 2024
San Francisco - 26 Sep 2024
Berlin - 5 Dec 2024
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