Apptentive – Opportunity, Segmentation and Analysis

Apptentive is a Seattle based startup, providing software as a service to help companies with mobile apps communicate with their customers.  Apptentive aims to make it easy for companies to get feedback from customers by easily integrating with the app, then getting feedback from those customers.  App developers can then use the information obtained to perform statistical analysis on their user base, and engage with them to improve their product.

In general, the market itself is pretty large – currently most companies/apps are leveraging the app store rating systems (where users leave a star rating plus character limited text to justify their rating).  This makes it difficult for companies to frequently gauge what problems their customers are experiencing, since many comments are incomplete or missing.  At the same time, these negative ratings impact the apps ability to attract more customers.  As a result, this market in general appears to be extremely large, since app stores are growing across various ecosystems, giving them a potential client base of over 3 million companies and app developers.

Based off of information on the company website, their blog, and other press releases, it doesn’t necessarily appear as though they have a concrete strategy in terms of segmentation.  Currently their product easily integrates with Android, Mac OSX, and iOS, so this does cut out some minor players (Windows, Windows Phone, Blackberry, etc.).  At the same time, because of the nature of product, they’re further segmenting things down to companies and apps where user feedback is critical, and an ongoing engagement with the user provides value to the company.  Finally, it also appears due to the nature of the way their software works, they’re targeting developers – their product integrates into a company’s app by inserting some sample code.  Furthermore, by largely being an open source based product, it naturally caters more towards software developers, rather than marketers at a given company.

Based on their business model (subscription service), it would be interesting to understand how they plan on scaling the business up; I would expect a large portion of their spending goes towards customer acquisition.

Posted by Samir Diwan

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