📺 Stream EntrepreneurTV for Free 📺

3 Strategies to make your app stand out Small communities with high density provide a huge potential for a good product to spread virally in that market.

By Josiah Humphrey Edited by Dan Bova

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

While the mobile app ecosystem flourishes, getting lost in the crowd of 1.5 million apps is more likely than ever before. And most apps actually do get lost, as most of the discovery happens in the top 25 charts. Thus, not surprisingly, most developers refer to the App Store as the top 1 percent economy.

Once you hit the top 25, you can pretty much expect your download rates to skyrocket. The question is, which market should you go for? That depends on who your ideal users are, but in general it's best to stay in culturally similar markets.

Horizontal and Vertical distribution

Because we live in a globalised world, things that are popular spread across borders fast. So we want to make it as easy as possible. An alternative way to approach growth is the so-called horizontal distribution strategy. Instead of climbing up in the ranks, some developers choose to focus on being everywhere.

By creating different versions of their app, they can rank in multiple categories. For example, in addition to its core app, Udemy – a platform for online learning – created several different apps for each of their courses. So when you look for programming apps, you will find its programming course, etc.

The downside to this approach is that you lose a little bit of ranking for each of the apps, but on the other hand, you make up for it with your presence across the App Store's ecosystem.

App Bundling

A very related strategy and something that's only available since the last update is taking advantage of app bundling. Apple basically allows developers to include their apps in up to three bundles of 10 different apps. There are few potential advantages here. Firstly, bundles are featured in the separate section of the featured apps
page, making them much easier to be found.

Then there's revenue potential. Bundled apps are often a better value deal which makes them more appealing to at least a certain demographic. The question here is, if someone downloads your app bundled with nine other apps, how likely are they to actually use it? The way I view it is it may and may not matter. If you can give your app a boost big enough to rank higher, you will reach more users and, as a result, more will adopt.

Retention

So that raises another question. What about retention? The answer is, it's much harder than the user acquisition. In fact, retention makes user acquisition look like a piece of cake. Mobile analytics companies like Flurry and Apptentive report that you can expect to retain less than 5 percent of users over the course of first 12 months.
Retention has a lot to do with designing a great onboarding process and user engagement.

However, the right place to start is just making a product that users love. That, of course, sounds like just another start-up cliché. What few entrepreneurs get right is understanding that building a great product starts with a focus on a narrow demographic. There's a reason few of the successful apps have launched in the mainstream market.

Facebook first started on Harvard, Instagram focused on travellers and foodies, Uber launched in San Francisco,
etc. Such approach, of course, is the complete opposite of going for quantity. However, the potential results are not that different. Small communities with high density provide a huge potential for a good product to spread virally in that market.

And viral growth means download velocity, which is the ultimate metric to reach the top of the list. But even that doesn't happen organically. What some of the fastest growing apps did extremely well compared to the rest is that made it easy for viral growth to happen. Whichever way you choose to go, knowing your users is the critical thing without which it's very difficult to create an excellent product. And without that, it's practically impossible to retain users – no matter how smart or creative your marketing is.

Josiah Humphrey

Co-Founder and Co-CEO of Appster

Josiah Humphrey is co-founder and co-CEO of Appster. 
Side Hustle

These Coworkers-Turned-Friends Started a Side Hustle on Amazon — Now It's a 'Full Hustle' Earning Over $20 Million a Year: 'Jump in With Both Feet'

Achal Patel and Russell Gong met at a large consulting firm and "bonded over a shared vision to create a mission-led company."

Collaboration

5 Ways Solopreneurs Can Scale Their Business Through Collaboration

Our culture loves to perpetuate the myth that entrepreneurs must go it alone. But for many, the path to success is found in collaboration.

Side Hustle

How to Turn Your Hobby Into a Successful Business

A hobby, interest or charity project can turn into a money-making business if you know the right steps to take.

Productivity

Want to Be More Productive? Here's How Google Executives Structure Their Schedules

These five tactics from inside Google will help you focus and protect your time.

Business News

How Much Do Engineers, Software Developers, and Analysts Make at Apple? See Salary List

Using application data from highly-skilled foreign workers, Insider revealed a range of salaries at the tech giant.

Business News

These Are the 10 Most Profitable Cities for Airbnb Hosts, According to a New Report

Here's where Airbnb property owners and hosts are making the most money.