AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Season 3, Episode 18: The future of alternative app stores and payments (with Archie Stonehill)
Mobile Dev Memo Podcast
Focus on Engaging Whales in Freemium Model
In the freemium model, the key focus is on engaging high-spending players known as 'whales'. The approach is not geared towards acquiring new users or monetizing peripheral users, but rather emphasizing the premium experience for the top spenders. The success of products like Stash relies on catering to the small percentage of users who contribute the majority of the revenue. Understanding the non-traditional probability distribution of spend and engagement in this model, which is not bell-shaped but exponentially decreasing, is crucial for navigating the freemium space effectively.
00:00
Transcript
Episode notes
Speaker 1
Yeah. And I think that goes without talking. And again, this was a consequence that was very quiet about the Apple ruling in America is this notion of you're not allowed to communicate with players using information obtained from within the app about alternative payment channel that used to be the policy. So if you obtain an email address from a player that you got through the app store, you were not previously allowed to communicate with them about a web shop. And that changed. As you say, because the class action will sit in the Apple case. What you said about the D base is super important, and this is the whole point behind Stash. This product, the static product, would not work if it weren't for free -to -play whale monetization, because if you needed to ship 50% of your users to capture 50% of your spend, I'd totally love to be realistic to web shops. But you only need to shift 1% of your users to get 70% of your spend. So Stash's whole product is like, we are building the best possible way to engage with your best players for those whales, right? And that's the whole point behind crafting this experience is you're not doing this to acquire new users. You're not doing this to monetize peripheral users. We're not trying to enforce payments to access with like rural Indian players, for example. Like no, we trying to access your biggest spenders, your most engaged players with the most premium possible experience.
Speaker 2
Trey Lockerbie Yeah, I think that's just one of the traits or one of the characteristics of freemium, of the freemium model that gives people the most trouble, right? It's wrapping your head around the probability distribution of spend, of engagement, of everything, right? Nothing looks like a bell curve. Nothing looks like a Gaussian curve. It's all decreasing exponential, right?
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
More snips
Season 4, Episode 5: Understanding the retail media landscape (with Andrew Lipsman)
Balance Ads and Customer Experience
01:18
Season 3, Episode 23: Netflix games and the necessity of gaming for legacy media (with Joost van Dreunen)
The Evolution of Monetization in Gaming and Streaming Services
05:17
Season 3, Episode 19: Understanding AdAttributionKit (with David Philippson)
Driving User Engagement with Advertisements
00:31