On the podcast: Ramit Arora talks about…

Key Takeaways:

📱 The App Store advantage: Microsoft's data reinforces that the App Store, despite the fees attached, offers significant advantages. The seamless experience from things such as pre-attached payment methods results in a conversion rate from trial to paid that is five times higher than on other direct channels.

🚀 On the App Store, think like a startup (even if you’re not): Despite Microsoft’s strong brand, success in the App Store requires the agility and innovation of a startup. The platform's democratic nature allows new startups to challenge established companies. Continual innovation is essential and you need to be at the top of your game with ASO.

🔗 Bundling apps can mean better retention: Combining multiple apps into a single subscription can boost user retention by meeting a variety of needs. Even if a use case is one-off, there will be other use cases met by other apps. This strategy generally involves developing a wide range of features rather than focusing deeply on a single application.

🧠 Integrate AI thoughtfully: When integrating AI, it's important to consider if it genuinely enhances the tasks users perform and brings a desktop-level experience to mobile devices. This ensures the technology is both practical and user-focused, and not simply jumping on the bandwagon.

⚖️ As you scale, prioritization never becomes any less important: As the number of monthly active users grows, you need to think bigger and bigger in terms of impact. Focus on optimizations that affect large user groups. Simple improvements in app reliability, performance, and the purchase process can often impact the largest number of users.

About Guest:

👨‍💻 Program Manager on the Microsoft 365 (Office) Mobile and Mac team.

🚀 An expert in subscription management, growth, and monetization strategy, Ramit leads the Microsoft app division like a start-up.

💡 “We keep seeing this trend that people just want to make a purchase from their phone… We see almost 5x higher trial-to-paid conversion rates on mobile than on other direct channels.”

👋 LinkedIn

Episode Highlights:

[1:14] From desktop to mobile: Microsoft is famous for its desktop software, but it’s increasingly prioritizing its mobile apps to keep up with consumer trends.

[3:09] Paying by phone: Users prefer to make purchases using their mobile device — trial-to-paid conversion rates are nearly 5x higher on mobile than other direct channels.

[4:56] The start-up mindset: Think like a start-up to stay agile against the competition in the app stores.

[6:21] Value they can’t refuse: To retain users over the long term, Microsoft bundles multiple products and features into a single cost-effective app.

[8:22] Staying ahead of the curve: The key to becoming and staying a leading app? Neutralize the competition, differentiate, and incubate.

[17:19] Lighting up the small screen: Apps like Photoroom and Microsoft Copilot are using AI to make tasks historically done on a desktop easy on a mobile device.

[21:09] You can’t do it all: Prioritize the app optimizations and features that will have the biggest impact on your business.

Operating Like a Start-up inside the World’s Biggest Company — Ramit Arora, Microsoft

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