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Lean Startup meets Android: Growth EditionMark Masterson - @mastermark

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what will we cover?

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● Product / Business Fit

● What is your product?

● Driving the business via the (core) features of

your product

● Using architectural features of Android in

examples

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Karl Marx

“Sell a man a fish, he eats for a day, teach a man how to fish, you ruin a wonderful business opportunity.”

what we won’t cover

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● Working code

● Working code

● Working code

● and lastly: working code...

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Why Android?

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62% of the world’s tablets run Android

78% of the world’s smartphones run Android

Android iOS Other

78.5%

4.1%17.4%

38%

62%

Android Other

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1B1 Billion active devices

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$5,000,000,000

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What are the engines of growth?

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photo by Betsy Weber, CC BY 2.0

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http://www.slideshare.net/annelispeaks/the-lean-startup-14638989

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Sticky

Business model that relies on retention

Churn rate is the critical metric

If rate of CA > rate of churn then Yay!

Sales and marketing may be waste

Recurring event is the core of the business architecture

● Re-engagement

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Viral

Business model relies on P2P transmission for CA

Viral coefficient is the key metric

If user acquires > 1 other user then Yay!

Often a freemium model, might earn via advertising or other passive revenue stream

Should be an inevitable side-effect of using product; viruses are not optional

● Viral vector

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Paid

Business model relies on paying for customers

Customer Acquisition Cost (CAC), & Customer Lifetime Value (CLTV) = key metrics

If CAC < CLTV then Yay!

Marginal profit is the difference

The product should seek to lower the CAC and / or increase the CLTV

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So what is product / business fit?

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Product / Market FitMarc Andreesen:

“Product/market fit means being in a good market with a product that can satisfy that market.”

Product

MarketFIT!

https://en.wikipedia.org/wiki/Product/market_fit

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Product / Business FitMark Masterson:

“Product/business fit means having a product that is designed to drive the business model.”

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Let’s see some examples!

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An imaginary app, which does the following:

● Provides a shopping concierge service

● Earns revenue via affiliate fees with partners like Tesco, Sainsburys, Waitrose, John Lewis, etc.

● The recurring event is being in physical proximity of a previous purchase

Sticky App

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An imaginary app, which does the following:

● Uses technologies like Google Play Services (Geolocation, Geofencing), and Beacons to sense location

● Uses Notifications, Activities, and Intents to signal the customer when they’re in the vicinity of something they’ve previously purchased

● Also relies on imaginary tech, such as smart tills and something like RFID!

Sticky App

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● Location awareness: https://developer.android.com/training/location/

● Notifications: http://developer.android.com/guide/topics/ui/notifiers/notifications.html

● Activities: http://developer.android.com/guide/components/activities.html

● Intents: http://developer.android.com/guide/components/intents-filters.html

● Beacons (Eddystone): https://developers.google.com/beacons/

Sticky App

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An imaginary app, which does the following:

● Provides a Bitcoin funds transfer service

● Earns revenue by charging interest on the balance held in an account

● The viral coefficient manifests as: receivers of funds need the app to access them.

● Transfers are free, to encourage them

Viral App

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Player engagement through Google Play Games

Saved Games

Quests

Achievements

Multiplayer

Leaderboards

Game Gifts

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An imaginary app, which does the following:

● Uses Google Play Services (Gifts) to transfer funds

● “If the recipient does not have your game installed on the device, the recipient is directed to the Google Play store to download the game.”

● This app might not be acceptable under current Play Store T’s&Cs. That’s why it’s imaginary!

Viral App

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Users are 47% more likely to trust and download

Sign in with Google &user over-the-air installsDevelopers have seen a 40% app install acceptance rate

Use the Google Playbadge

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● Play Games Services: https://developers.google.com/games/services/android/quickstart

● Play Games Gifts: https://developers.google.com/games/services/android/giftRequests

● Google Play Badge: http://developer.android.com/distribute/tools/promote/brand.html

● Google Identity Over-The-Air Installs: https://developers.google.com/+/features/play-installs

Viral App

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An imaginary app, which does the following:

● Provides exclusive content (videos, music) from MasterMark, an imaginary rap titan

● Earns revenue via IAP, per piece of content

● Content drops irregularly; each piece of content requires a marketing campaign

Paid App

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An imaginary app, which does the following:

● Uses technologies like app indexing and deep linking

● Uses AdWords, AdMob, YouTube and Display Ads to market content drops and drive app installs

● Uses features like the Conversion Optimizer to target high-value prospects

Paid App

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Source: VentureBeat Mobile User Acquisition Study, 2014

However

1 in 6 users never

spend in apps

of installed apps are

used once

80%

App Economics Today

< avg LTVavg CPI

Not all installs (or users) have the same value

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Paid promotions to discover users while they… Watch

on YouTubeSearch Surf

the webPlay

in apps

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Paid promotions to re-engage your users

`

On Search In App

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Indexing your app content makes it possible to surface in-app results in organic Google search results. It also improves your organic ranking.

Benefits of app indexing:● More user choice: Links can be

opened in app, or on your mobile website

● Auto-completions: The app indexing API captures pageviews in app to later redirect users back to the page. Links appear as auto-completions next time a user looks for content

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Paid search ads help users remember your app when searching for relevant content. Top placement ensures users notice you.

Tailor messaging in paid search ads to:● Monetize your existing user base● Prompt users to use new app

features or try new promotions● Remind users of existing app

features● Direct all search traffic to your app

for relevant keywords

There are two formats to choose from:● Mobile App Engagement Ads or● Text Ads with App Engagement

Engage existing app users by giving them the option to open links in-app or via your mobile website:

Text ad with App Engagement

hotels cambridge

Mobile App Engagement ad

Headline links into app deep link

mSite link option

Headline links into app deep link

no mSite link option

+1

2

1

2

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On the AdMob network, you can engage existing app users when they are in other apps with an easy to use, customizable template.

AdMob re-engagement supports custom lists, which makes it possible to design creative around different user activities: ● Upsell and cross sell to customers

who have made a purchase● Drive engagement with infrequent

visitors● Foster loyalty with high value users● Close the sale when shopping carts

are abandoned● Cross promote other app titles to

existing app users

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discount or coupon towards next purchase

Offer incentives tailored to each remarketing list to drive installers to action

Source: Google/Ipsos, Mobile App Marketing Insights: How Consumers Really Find and Use Your Apps (U.S.), May 2015, Base: Average among those in each vertical who have stopped using apps on their smartphone (n=6650), Google/Ipsos Survey Q37. Now thinking about [...] apps that you've stopped using or uninstalled from your smartphone, which of the following would make you more likely to start using the app again?

Display App Remarketing

All app users (auto-created)

Version of app or Lapsed users

Shopping cart abandoners

Target audience list

Clear call to action

Top prompts that renew app usage

exclusive or bonus content

notifications of new features

24%

Check out

app-only

contentExplore new

features of

the app

Discount

today only...

16% 30%

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Drive installs from users who are likely to make a purchase within your app

Campaigns using this feature are 24x more likely to generate a buyer than other campaigns.

Delivers extremely high user quality by optimizing bids for each user, depending on their varying levels of in-app purchase probability within your specific app.

Simple to activate -- select the ‘paid users’ checkbox in an Android campaign, and use Conversion Optimizer to tell CO to optimize for installs from In-App Buyers.

Important to set target cost-per-installs based on the higher value of these users. The best way to get more of these high-value users is to bid aggressively.

Leverages Google Play and AdMob data combined with Google’s proprietary bidding algorithms.

Conversion Optimizer for Android In-App Buyers

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● App Indexing: https://developers.google.com/app-indexing/introduction

● AdWords App Promotion: https://developers.google.com/adwords/apps/

● App Install Campaigns: https://support.google.com/adwords/answer/6032059

● App Reengagement Campaigns: https://support.google.com/adwords/answer/6046233

● Conversion Optimizer: https://support.google.com/adwords/answer/2471188?hl=en-GB

Paid App

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Launchpad

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g.co/launchpadApply

thankyou

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