Case Study

Service (Platform Operation): Monetizing a Loss-Making App with High Development & Ad Costs via Business Model Redesign
App × EC × Reward Design Achieved +1,000 Members and +30% YoY Profit Margin

Annual revenue ¥1.6 billion · Community App Operator | Seamless App × EC integration through a CX perspective and video ad expansion in Asia
Service Platform App EC Integration Business Model Design CX Improvement Reward Design Asia Expansion

Client Overview

IndustryService: Community Platform Operation
Annual RevenueApprox. ¥1.6 billion
Core ChallengeApp and revenue existed as disconnected "dots" instead of a connected "line"
Services ProvidedBusiness Model Redesign / App × EC Integration / UX Improvement / Reward Design / Video Ads for Asia

Situation & Challenges Before Engagement

The company launched a self-developed community app connecting people through hobbies. However, development and advertising costs outpaced revenue, resulting in persistent deficits. They had a vision for the app and a certain number of users, but it wasn't translating into revenue—this situation was caused by a collection of disconnected "dots." The product (app), the sales channel (EC site), and the acquisition method (ads) each existed independently and were not connected as a single "line" in the user experience.

Using the app didn't lead to purchases. There were no pathways to the EC site. The reasons for users to keep using the app were weak. As a result, users acquired through ads abandoned the app, leading to a vicious cycle of mounting costs.

Meets Consulting's Approach

The first thing Meets Consulting did was "designing to connect the dots." Redesigning the app from a mere product into a platform where user experience, purchases, and enthusiasm circulate was the only path to monetization for this client. After identifying pain points through user interviews and redrawing the overall CX map, concrete mechanisms were built one by one.

Phase 1 | Identifying Pain Points via User Interviews & CX Redesign

First, we conducted interviews with actual users to carefully gather feedback on "what is inconvenient about using the app" and "what they wish was better." Before adding features, prioritizing the design of an "experience that makes them want to keep using it" was paramount. We visualized the entire CX (Customer Experience) and improved experiences at every touchpoint where users interact with the app.

Phase 2 | Seamless App × EC Integration and Monetization via Reward Design

We built a system that seamlessly connected the app with the company's EC site. Additionally, we introduced a reward design where "enjoying hobbies accumulates points for purchasing merchandise." Linking app usage directly to purchase incentives simultaneously increased user activity and purchase rates. Fostering in-app events and activating user-to-user interaction created a level of community enthusiasm unmatched by competitors.

Phase 3 | Asian Target Video Ad Expansion (China/Taiwan)

Moving beyond the domestic market, we rolled out video ads targeting the Asian market (primarily China and Taiwan) that strongly resonated with this community's worldview. By highlighting the app's benefits and community features via video, we successfully acquired overseas users. Asian expansion was positioned as a new pillar to break through the growth limits of the domestic market.

Results Achieved

By interlocking business model redesign, CX improvement, and Asian ad expansion, members increased by over 1,000 (centered on China and Taiwan). The company broke out of its chronic deficits, and the profit margin improved by +30% year-on-year. The "dots" of the app, EC, and ads connected into a "line," completing a sustainable business model where more usage inherently generates more revenue.

Members
+1,000
New acquisitions primarily in China/Taiwan
Profit Margin
+30%
YoY improvement (Breakthrough from deficit)

The core takeaway from this case is that "product design and revenue design are fundamentally different." Bridging a great app and generating profit from it requires robust business model and CX design. Building that bridge was the role of Meets Consulting.

Client Testimonial

"While we had ideas for the app and site as 'dots,' we couldn't connect them into a 'line' as a business model. The proposals integrating EC and reward ads were very effective and led directly to monetization. In particular, I felt that the CX (Customer Experience) perspective was something we completely lacked. Moving forward, we want to achieve EC site growth alongside the app's expansion."
— Service (Platform Operation), Manager

Key Takeaways from This Case

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