Bugs and the Bottom Line: A Rare Look at the Cost of App Instability

let’s apply this real-world scenario to the four pillars of a mobile app cost center: Marketing, Revenue, Support and Development.

Marketing

Every company spends marketing dollars to acquire new users. Customer Acquisition Cost (CAC) are calculated as follows:

Revenue Loss

Every user is a future revenue stream. Recognizing every venture has a different business model and the expected revenue per user will vary greatly, for the sake of this example, the organisation makes $5/year on every user. Since the business is losing 6,000 new users, the potential revenue to be lost is $5 * 6,000 * 12 = $360,000 a year in revenue loss due to instability. It’s another big hole in the bucket.

Support

The crash affected 30,000 users. Most users ignored it, some abandoned the app entirely, and some reported the issue. Say 1% of the affected users completed a support ticket — that’s 300 new support tickets every month.

Development

A significant chuck of a developer’s time is spent on debugging. Some reports suggest as much as 75% or 1,500 hours a year is spent on fixing problems. There is simply no way to write perfect code. Developers and development teams split their time between developing and polishing new features and debugging existing versions of the product.

Totals and Takeaways

In this scenario, the organisation spent north of $1 million a year on a super rare bug that affects only 0.3% of users.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Mobileappdaily

Mobileappdaily

227 Followers

MobileAppDaily is an unchallenged pioneer of the mobile app industry and caters to the need of the tech geeks. Visit : https://www.mobileappdaily.com/