Productization And Monetization
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Maximizing Revenue
Productization and Monetization both share the common goal of increasing revenue and profitability for a business. They both involve turning a product or service into a profitable and sustainable revenue stream. Productization involves creating a standardized, scalable, and replicable product offering while monetization involves finding the best ways to generate income from that product. Both processes require market research, strategic planning, and execution in order to be successful.
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why monetize?
- Digital strategies depend on short-term, month-to-month product roadmaps, digital marketing campaigns, and other activities tied to actionable items and measurable business objectives, such as online sales, conversions, and customer-based metrics (LTV or referrals as an example), and other factors.
- To be successful, the strategy should focus on where the company value chain is vulnerable to disruption or crisis and could be optimized for a digital reboot. One of the challenges of establishing a digital strategy is determining which services should be done in-house, which services should be outsourced or co-sourced with a third-party provider, and which services require customization or productization to be viable and beneficial.
- Sometimes, a free or public asset is turned into a profit center—such as a public road being converted into a private tollway. This is a very crude or straightforward method of monetization, but when it comes to more complex business models, new techniques and ideas are needed to innovate ways to bring value to the consumer of a B2B client while financially justifying the service product or capability.
Boosting Profits in the Cloud
The revenue projection for the SaaS (Software as a Service) industry by 2025 is estimated to reach approximately $223 billion. This is a significant increase from the revenue projection for 2020, which was estimated to reach $143 billion.
The SaaS industry has seen tremendous growth in recent years due to the increasing demand for cloud-based solutions and the shift towards remote work caused by the COVID-19 pandemic. As a result, the SaaS industry is expected to continue its rapid growth in the coming years, with many companies investing in cloud-based solutions to streamline their operations and increase efficiency.
The ARPU (Average Revenue Per User) of freemium apps varies greatly depending on the type of app, target market, and monetization strategy. It can also change from year to year.
The ARPU of freemium apps in 2023 is expected to continue to increase as more businesses adopt the freemium model and as more users become comfortable with making in-app purchases. The COVID-19 pandemic has also accelerated the shift towards digital services, which is expected to further drive the growth of the freemium model and the ARPU.
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