Apple Store has over 2.2 million apps, and the Google Play Store takes it up a notch with 3.3 million apps. So, as a business building apps for your customers, how do you stand out and succeed amidst such vast competition?
In the Indian app development market, there’s a common misconception that rapid growth and massive user acquisition are the keys to success. However, that is not true. Building AppsForBharat has taught me that this approach often leads to a high churn rate, where users come and go without forming lasting connections to your product.
How do you build products that make users stick?
In this blog, I’ll share some of my insights from my journey of building AppsForBharat, coupled with my time working for tech giants like Samsung and Microsoft. We’ll dive into understanding how to build apps that not only attract users but keep them coming back.
Let’s dive in and explore how to create apps that don’t just survive but thrive in the long run.
Retention: The Cornerstone of Sustainable Growth
You know that feeling when you download an app, use it once, and then forget about it? That’s precisely the kind of app you need to avoid becoming into. Many founders and investors get caught up in the allure of explosive growth, chasing millions of installs without considering user retention.
At AppsForBharat, we’ve taken a different approach. We believe that understanding and improving customer retention from day one is crucial for long-term success. For instance, we closely monitor our D30 (30-day retention) rates. For users showing daily usage patterns, we aim for a D30 of at least 40%. This laser focus on customer retention has been a game-changer, allowing us to build a more stable user base and refine our product based on real user behavior.
There’s a dangerous belief in the startup world that customer retention issues will magically solve themselves once you reach a certain scale. Spoiler alert: they don’t. If your fundamental metrics are broken at 5,000 DAU (Daily Active Users), they’re likely to remain broken at 1 million DAU.
So, here’s my advice: fix customer retention issues early. Think of your first 20 million installs as your playground for experimentation. Beyond that, you need to get serious about retention, as you’re dealing with a significant portion of your potential user base.
Evolution From an App to a Successful Business
One of our key realizations has been the importance of transitioning from ‘just an app’ to a sustainable business. This means not waiting until you’ve reached a massive scale to figure out monetization. At AppsForBharat, we’re currently in the process of understanding our users‘ propensity to pay and what kind of business model will work best for our product.
This approach allows us to build a tight module that proves our product is loved by users and has a viable business model. Only then can we focus on scaling.
The other important aspect that we prioritized from day one is data exposure across our entire team. Even our content creators have access to dashboards that show the impact of their work. This data-driven approach has allowed us to make more informed decisions about product development and user engagement strategies.
For example, we closely monitor the percentage of our DAU that comes from notifications. Currently, it’s around 24% during festivals and drops to 18% during non-festive periods. This tells us that our users are forming genuine habits around our app rather than relying on external prompts.
Building for Endurance
Building a successful app is not a sprint; it’s a marathon. At AppsForBharat, we think in terms of a 15-20-year journey. This long-term perspective allows us to make decisions that prioritize user trust and love over short-term growth hacks.
Many apps claim to have network effects, but it’s essential to be honest about whether your product truly benefits from increased usage. At AppsForBharat, we had our ‘aha’ moment when we realized that while we have some network-like features, we’re primarily a single-player experience with social awareness.
This understanding has been a total game-changer for our growth strategy. Instead of relying solely on viral growth, we’re focusing on creating a product that users love and trust, which naturally leads to word-of-mouth growth. For example, 4% of our MAU (Monthly Active Users) comes from outside India, purely through organic spread.
Conclusion
So, what’s the secret sauce to building enduring apps in India (and beyond)? It’s not about chasing vanity metrics but creating products that users genuinely love and trust. By focusing on customer retention, understanding your true market dynamics, and transitioning from an app to a business mindset, you can build something that stands the test of time.
Remember, it’s not about how fast you grow but how well you serve your users’ needs.
Ready to take your apps to the next level? This blog is just the beginning. I’ve spilled even more secrets in our latest podcast episode with Ankur Gattani. Head over to Spotify or YouTube to hear the full story behind AppsForBharat’s journey, plus some bonus tips I couldn’t squeeze into this post. Feel free to drop a comment and let me know what resonated with you.
Authors Bio:
Prashant Sachan is the Founder and CEO of AppsForBharat, a company dedicated to creating innovative digital solutions for spiritual and cultural needs in India. Prior to founding AppsForBharat, Prashant gained valuable experience at tech giants like Samsung and Microsoft. He was also a co-founder of Trell, further honing his skills in building social media and content platforms.
