How I Scaled My AI App: Reducing Costs and Improving Retention

00:02Two months ago, I launched my AI calorie Two months ago, I launched my AI calorie tracking app. And if I'm being honest, tracking app. And if I'm being honest, tracking app. And if I'm being honest, it has not been the smoothest it has not been the smoothest it has not been the smoothest experience. The profit margins were experience. The profit margins were experience. The profit margins were rough because the AI costs were so high, rough because the AI costs were so high, rough because the AI costs were so high, most people stopped using the app after most people stopped using the app after most people stopped using the app after a week, and I just wasn't sure if I

00:11a week, and I just wasn't sure if I a week, and I just wasn't sure if I could turn this into something could turn this into something could turn this into something sustainable. It's been about two months sustainable. It's been about two months sustainable. It's been about two months and a lot has changed. In this video, and a lot has changed. In this video, and a lot has changed. In this video, I'm going to share the real numbers, I'm going to share the real numbers, I'm going to share the real numbers, revenue, profit, retention. I'll show revenue, profit, retention. I'll show revenue, profit, retention. I'll show you how I dramatically improve my AI you how I dramatically improve my AI

00:21you how I dramatically improve my AI bill, which then increased profit bill, which then increased profit bill, which then increased profit margins, and all the changes that I made margins, and all the changes that I made margins, and all the changes that I made to start moving the needle on retention. to start moving the needle on retention. to start moving the needle on retention. If you're new here, welcome to the If you're new here, welcome to the If you're new here, welcome to the video. My name is Chris and I build video. My name is Chris and I build video. My name is Chris and I build productivity apps. I usually focus on productivity apps. I usually focus on

00:30productivity apps. I usually focus on one productivity app per video, and one productivity app per video, and one productivity app per video, and today we're focusing on Amy. Quick today we're focusing on Amy. Quick today we're focusing on Amy. Quick context, Amy is a calorie tracker in the context, Amy is a calorie tracker in the context, Amy is a calorie tracker in the style of Apple Notes. You type the food style of Apple Notes. You type the food style of Apple Notes. You type the food that you ate and we will magically that you ate and we will magically that you ate and we will magically calculate the calories on the right. calculate the calories on the right.

00:40calculate the calories on the right. Probably the most frictionless calorie Probably the most frictionless calorie Probably the most frictionless calorie tracking app out there. So, let's talk tracking app out there. So, let's talk tracking app out there. So, let's talk numbers. We just crossed $1,500 in numbers. We just crossed $1,500 in numbers. We just crossed $1,500 in monthly recurring revenue. And that's on monthly recurring revenue. And that's on monthly recurring revenue. And that's on 148 paid subscribers paying around $10 a 148 paid subscribers paying around $10 a 148 paid subscribers paying around $10 a month. The last 28 days was $1,968. month. The last 28 days was $1,968.

00:55month. The last 28 days was $1,968. For an app that's only two months old, I For an app that's only two months old, I For an app that's only two months old, I am very happy with this. But, the am very happy with this. But, the am very happy with this. But, the revenue is only half the story. The revenue is only half the story. The revenue is only half the story. The other half, the part that keeps me up at other half, the part that keeps me up at other half, the part that keeps me up at night is the costs. And if you're night is the costs. And if you're night is the costs. And if you're following along, you know that the costs following along, you know that the costs

01:04following along, you know that the costs were really high, but I'm proud to say were really high, but I'm proud to say were really high, but I'm proud to say we actually got it down. My AI bill for we actually got it down. My AI bill for we actually got it down. My AI bill for the first month was about $700, but this the first month was about $700, but this the first month was about $700, but this month, we got it down to $221. month, we got it down to $221. month, we got it down to $221. And that's with even more users using And that's with even more users using And that's with even more users using the app. The reason the costs are so the app. The reason the costs are so

01:17the app. The reason the costs are so high in the first place is I'm using a high in the first place is I'm using a high in the first place is I'm using a very expensive AI model, Perplexity very expensive AI model, Perplexity very expensive AI model, Perplexity Sonar, to power the search and calorie Sonar, to power the search and calorie Sonar, to power the search and calorie calculation. Every time someone logs a calculation. Every time someone logs a calculation. Every time someone logs a food or makes an edit, we call this food or makes an edit, we call this food or makes an edit, we call this model, which then costs me about half a model, which then costs me about half a

01:29model, which then costs me about half a cent. I tried a bunch of different cent. I tried a bunch of different cent. I tried a bunch of different models, but this is the best one I could models, but this is the best one I could models, but this is the best one I could find in terms of speed and accuracy. find in terms of speed and accuracy. find in terms of speed and accuracy. It's just kind of expensive. So, this is It's just kind of expensive. So, this is It's just kind of expensive. So, this is the big thing that I've been working on the big thing that I've been working on the big thing that I've been working on is getting this cost down. And I made is getting this cost down. And I made

01:38is getting this cost down. And I made two major changes to do this. The first two major changes to do this. The first two major changes to do this. The first is that I introduced a way cheaper model is that I introduced a way cheaper model is that I introduced a way cheaper model for editing. Something I was doing that for editing. Something I was doing that for editing. Something I was doing that wasn't good was I was using Perplexity wasn't good was I was using Perplexity wasn't good was I was using Perplexity Sonar for everything. So, if someone Sonar for everything. So, if someone Sonar for everything. So, if someone typed in food, we would call Perplexity

01:48typed in food, we would call Perplexity typed in food, we would call Perplexity Sonar, it would do a web search, it'd be Sonar, it would do a web search, it'd be Sonar, it would do a web search, it'd be really expensive. That makes sense. But, really expensive. That makes sense. But, really expensive. That makes sense. But, if they edit it, so let's say they write if they edit it, so let's say they write if they edit it, so let's say they write burrito and they change it to half a burrito and they change it to half a burrito and they change it to half a burrito, we call Perplexity Sonar again. burrito, we call Perplexity Sonar again.

01:58burrito, we call Perplexity Sonar again. It a whole web search and recalculates It a whole web search and recalculates It a whole web search and recalculates it to make an edit. Super unnecessary it to make an edit. Super unnecessary it to make an edit. Super unnecessary because for edits like this, it's really because for edits like this, it's really because for edits like this, it's really just basic math. So, I made a just basic math. So, I made a just basic math. So, I made a modification where now when we make an modification where now when we make an modification where now when we make an edit, we check, is it just a portion edit, we check, is it just a portion

02:08edit, we check, is it just a portion change? And if it is, we will send it to change? And if it is, we will send it to change? And if it is, we will send it to a way cheaper model, which is Gemini 2.5 a way cheaper model, which is Gemini 2.5 a way cheaper model, which is Gemini 2.5 Flash Light, and it will go ahead and Flash Light, and it will go ahead and Flash Light, and it will go ahead and recalculate everything for us. Instead recalculate everything for us. Instead recalculate everything for us. Instead of half a cent, this costs like a tenth of half a cent, this costs like a tenth of half a cent, this costs like a tenth of a cent. And a quick note because I

02:19of a cent. And a quick note because I of a cent. And a quick note because I got a lot of questions after I posted got a lot of questions after I posted got a lot of questions after I posted this online, why couldn't I just do this this online, why couldn't I just do this this online, why couldn't I just do this stuff programmatically? Why did I have stuff programmatically? Why did I have stuff programmatically? Why did I have to use AI for the recalculation at all? to use AI for the recalculation at all? to use AI for the recalculation at all? I did originally try that, but there are I did originally try that, but there are

02:27I did originally try that, but there are so many edge cases because it's just a so many edge cases because it's just a so many edge cases because it's just a free-form text input. Like you can type free-form text input. Like you can type free-form text input. Like you can type anything you want in here. So, sometimes anything you want in here. So, sometimes anything you want in here. So, sometimes someone would change one burrito to half someone would change one burrito to half someone would change one burrito to half a burrito, very easy to figure out. But a burrito, very easy to figure out. But a burrito, very easy to figure out. But sometimes they change it to a couple

02:37sometimes they change it to a couple sometimes they change it to a couple bites of a burrito. So, I ended up using bites of a burrito. So, I ended up using bites of a burrito. So, I ended up using natural language processing anyway to natural language processing anyway to natural language processing anyway to figure out what was the portion change. figure out what was the portion change. figure out what was the portion change. And at that point, I thought, might as And at that point, I thought, might as And at that point, I thought, might as well just use Gemini 2.5 Flash Light and well just use Gemini 2.5 Flash Light and

02:46well just use Gemini 2.5 Flash Light and have it figure out the portion and do have it figure out the portion and do have it figure out the portion and do the recalculation anyway. Luckily, the the recalculation anyway. Luckily, the the recalculation anyway. Luckily, the model's super cheap, so when you look at model's super cheap, so when you look at model's super cheap, so when you look at the total cost for my bill, Gemini the total cost for my bill, Gemini the total cost for my bill, Gemini actually ended up only being about $3 of actually ended up only being about $3 of actually ended up only being about $3 of the bill. The second change I made, the bill. The second change I made,

02:56the bill. The second change I made, which I believe had a way bigger impact which I believe had a way bigger impact which I believe had a way bigger impact on the cost, was I added caching. If on the cost, was I added caching. If on the cost, was I added caching. If someone typed in burrito, we would go someone typed in burrito, we would go someone typed in burrito, we would go run an expensive web search and call run an expensive web search and call run an expensive web search and call Perplexity, and that would cost half a Perplexity, and that would cost half a Perplexity, and that would cost half a cent. Now instead we're doing caching. cent. Now instead we're doing caching.

03:07cent. Now instead we're doing caching. So, let's say they have typed burrito in So, let's say they have typed burrito in So, let's say they have typed burrito in the past and they type it again this the past and they type it again this the past and they type it again this time, it's going to check Superbase, time, it's going to check Superbase, time, it's going to check Superbase, which is the database we're using, and which is the database we're using, and which is the database we're using, and we'll see, okay, we already have the we'll see, okay, we already have the we'll see, okay, we already have the nutrition info. We're going to pull nutrition info. We're going to pull

03:16nutrition info. We're going to pull that, and then we'll use the cheaper that, and then we'll use the cheaper that, and then we'll use the cheaper Gemini model to then just figure out all Gemini model to then just figure out all Gemini model to then just figure out all the portions, which saves us from this the portions, which saves us from this the portions, which saves us from this very expensive Perplexity Sonar call. I very expensive Perplexity Sonar call. I very expensive Perplexity Sonar call. I knew this would make a difference, but I knew this would make a difference, but I knew this would make a difference, but I was not aware of how big a difference

03:28was not aware of how big a difference was not aware of how big a difference that this made. I think this was the that this made. I think this was the that this made. I think this was the bulk of why the bill went from $700 to bulk of why the bill went from $700 to bulk of why the bill went from $700 to $200. And the reason is because it turns $200. And the reason is because it turns $200. And the reason is because it turns out people eat a lot of the same stuff out people eat a lot of the same stuff out people eat a lot of the same stuff every day. 60 to 70% of my calls are every day. 60 to 70% of my calls are every day. 60 to 70% of my calls are actually hitting the cache now. I was

03:41actually hitting the cache now. I was actually hitting the cache now. I was anticipating it would save like 20, 30% anticipating it would save like 20, 30% anticipating it would save like 20, 30% in cost, but it ended up reducing my in cost, but it ended up reducing my in cost, but it ended up reducing my bill by almost 70%. Now that I had a bill by almost 70%. Now that I had a bill by almost 70%. Now that I had a little bit more breathing room on the little bit more breathing room on the little bit more breathing room on the profit margin side, it gave me the profit margin side, it gave me the profit margin side, it gave me the confidence to work on something I've

03:51confidence to work on something I've confidence to work on something I've been to build, but I kind of held off on been to build, but I kind of held off on been to build, but I kind of held off on because I was scared of the costs. And because I was scared of the costs. And because I was scared of the costs. And that feature is menu scanning. And it's that feature is menu scanning. And it's that feature is menu scanning. And it's a feature I have not seen any other a feature I have not seen any other a feature I have not seen any other calorie tracking app do. [music] Here's calorie tracking app do. [music] Here's

04:01calorie tracking app do. [music] Here's why I built it. I noticed that when I'm why I built it. I noticed that when I'm why I built it. I noticed that when I'm at a restaurant, yes, I have the ability at a restaurant, yes, I have the ability at a restaurant, yes, I have the ability in Amy to scan a picture of your food in Amy to scan a picture of your food in Amy to scan a picture of your food and then we'll calculate the calories and then we'll calculate the calories and then we'll calculate the calories that way. But sometimes I found that the that way. But sometimes I found that the that way. But sometimes I found that the menu actually had really good menu actually had really good

04:11menu actually had really good descriptions of the dish and I kind of descriptions of the dish and I kind of descriptions of the dish and I kind of just wanted to scan the menu directly just wanted to scan the menu directly just wanted to scan the menu directly instead. But I held off on building the instead. But I held off on building the instead. But I held off on building the feature because I didn't want to make my feature because I didn't want to make my feature because I didn't want to make my already not so great margins even worse. already not so great margins even worse. already not so great margins even worse. But now that I have a little bit more

04:21But now that I have a little bit more But now that I have a little bit more breathing room, I decided, let's just go breathing room, I decided, let's just go breathing room, I decided, let's just go ahead and add it. Now when you're at a ahead and add it. Now when you're at a ahead and add it. Now when you're at a restaurant, there's a new option where restaurant, there's a new option where restaurant, there's a new option where you can take a picture of the menu. And you can take a picture of the menu. And you can take a picture of the menu. And we're using Gemini 2.5 flash light to we're using Gemini 2.5 flash light to

04:29we're using Gemini 2.5 flash light to extract all the items for the menu and extract all the items for the menu and extract all the items for the menu and kind of reconstruct it in the app with kind of reconstruct it in the app with kind of reconstruct it in the app with the description and even broken down by the description and even broken down by the description and even broken down by section. And you can just tap the section. And you can just tap the section. And you can just tap the relevant items and we'll add them into relevant items and we'll add them into relevant items and we'll add them into Amy and calculate the calories. I think Amy and calculate the calories. I think

04:41Amy and calculate the calories. I think this is one of the coolest features I've this is one of the coolest features I've this is one of the coolest features I've added into the app. It's definitely a added into the app. It's definitely a added into the app. It's definitely a magic moment for me. But I think when magic moment for me. But I think when magic moment for me. But I think when people use this a couple times, that's people use this a couple times, that's people use this a couple times, that's when they'll go from, okay, this is a when they'll go from, okay, this is a when they'll go from, okay, this is a cool feature to I can't use an app that

04:50cool feature to I can't use an app that cool feature to I can't use an app that doesn't have this. And again, because of doesn't have this. And again, because of doesn't have this. And again, because of the cost, I don't think a lot of the cost, I don't think a lot of the cost, I don't think a lot of competitors are going to be adding this competitors are going to be adding this competitors are going to be adding this feature anytime soon. I am so happy with feature anytime soon. I am so happy with feature anytime soon. I am so happy with how this feature turned out. By the way, how this feature turned out. By the way,

04:59how this feature turned out. By the way, the way that I've been tracking all of the way that I've been tracking all of the way that I've been tracking all of my costs as you've seen is through my costs as you've seen is through my costs as you've seen is through PostHog. And a huge shoutout to them for PostHog. And a huge shoutout to them for PostHog. And a huge shoutout to them for actually sponsoring this video. If actually sponsoring this video. If actually sponsoring this video. If you've been following along, you know you've been following along, you know you've been following along, you know that I've been recommending them way that I've been recommending them way

05:07that I've been recommending them way before they sponsored the channel and I before they sponsored the channel and I before they sponsored the channel and I will continue to do so. But they are my will continue to do so. But they are my will continue to do so. But they are my favorite tool for app analytics. I've favorite tool for app analytics. I've favorite tool for app analytics. I've also been tracking all of my AI costs also been tracking all of my AI costs also been tracking all of my AI costs with their LLM analytics feature. And with their LLM analytics feature. And with their LLM analytics feature. And it's amazing because you can see total it's amazing because you can see total

05:17it's amazing because you can see total costs, you can see the cost per model, costs, you can see the cost per model, costs, you can see the cost per model, latency, everything is laid out here for latency, everything is laid out here for latency, everything is laid out here for you. You can even see a breakdown here you. You can even see a breakdown here you. You can even see a breakdown here that Perplexity Sonar is costing me $217 that Perplexity Sonar is costing me $217 that Perplexity Sonar is costing me $217 and Gemini is only $3, which is amazing and Gemini is only $3, which is amazing and Gemini is only $3, which is amazing because now I have a benchmark of what

05:30because now I have a benchmark of what because now I have a benchmark of what these models typically cost me in a these models typically cost me in a these models typically cost me in a month. And if I see something like the month. And if I see something like the month. And if I see something like the Gemini cost rising, for example, I can Gemini cost rising, for example, I can Gemini cost rising, for example, I can go figure out, okay, is there something go figure out, okay, is there something go figure out, okay, is there something wrong? It's also how I track things like wrong? It's also how I track things like wrong? It's also how I track things like retention. So I have a bunch of these

05:40retention. So I have a bunch of these retention. So I have a bunch of these different graphs set up for all of the different graphs set up for all of the different graphs set up for all of the important metrics like the download to important metrics like the download to important metrics like the download to sign up rate, how many people are sign up rate, how many people are sign up rate, how many people are turning on notifications, a bunch of turning on notifications, a bunch of turning on notifications, a bunch of other metrics that I care about. I other metrics that I care about. I other metrics that I care about. I seriously cannot imagine trying to build

05:50seriously cannot imagine trying to build seriously cannot imagine trying to build an app and make decisions without Post an app and make decisions without Post an app and make decisions without Post Hog. I'll leave a link in the Hog. I'll leave a link in the Hog. I'll leave a link in the description if you want to check them description if you want to check them description if you want to check them out, and if you do sign up, please tell out, and if you do sign up, please tell out, and if you do sign up, please tell them that I'm the one that sent you. them that I'm the one that sent you. them that I'm the one that sent you. Since we're talking about metrics, let's

05:58Since we're talking about metrics, let's Since we're talking about metrics, let's actually talk about the most important actually talk about the most important actually talk about the most important metric that I've been tracking, and that metric that I've been tracking, and that metric that I've been tracking, and that is week one retention. If you've been is week one retention. If you've been is week one retention. If you've been following me for a while, you know that following me for a while, you know that following me for a while, you know that this is my North Star metric. It's the this is my North Star metric. It's the

06:06this is my North Star metric. It's the percentage of people who, after percentage of people who, after percentage of people who, after downloading your app, are still using it downloading your app, are still using it downloading your app, are still using it one week later. And it's the best signal one week later. And it's the best signal one week later. And it's the best signal that I have found to answer the that I have found to answer the that I have found to answer the question, "Have I built something truly question, "Have I built something truly question, "Have I built something truly valuable?" When I first launched, week valuable?" When I first launched, week

06:16valuable?" When I first launched, week one retention was about 3%. That means one retention was about 3%. That means one retention was about 3%. That means that for every 100 people that signed that for every 100 people that signed that for every 100 people that signed up, only three people were still using up, only three people were still using up, only three people were still using it one week later. After about a month it one week later. After about a month it one week later. After about a month of work, we did bump that number up to of work, we did bump that number up to of work, we did bump that number up to 8%, which is good, but the number that 8%, which is good, but the number that

06:278%, which is good, but the number that I'm really trying to target is 30-40%. I'm really trying to target is 30-40%. I'm really trying to target is 30-40%. That's where the really successful apps That's where the really successful apps That's where the really successful apps tend to live. So, a lot of the changes tend to live. So, a lot of the changes tend to live. So, a lot of the changes that I've been making, the features I'm that I've been making, the features I'm that I've been making, the features I'm adding, the bugs that I'm fixing, are adding, the bugs that I'm fixing, are adding, the bugs that I'm fixing, are all in service to try to move the needle

06:38all in service to try to move the needle all in service to try to move the needle on that 8% week one retention. And I'm on that 8% week one retention. And I'm on that 8% week one retention. And I'm proud to report that in the last month, proud to report that in the last month, proud to report that in the last month, we did move the needle on that. It went we did move the needle on that. It went we did move the needle on that. It went from an 8% week one retention to about a from an 8% week one retention to about a from an 8% week one retention to about a 10% week one retention. That might not 10% week one retention. That might not

06:4710% week one retention. That might not seem like a big change, but these seem like a big change, but these seem like a big change, but these percentages are really hard to get. So, percentages are really hard to get. So, percentages are really hard to get. So, let's go over some of the things that I let's go over some of the things that I let's go over some of the things that I changed to move the needle on this. The changed to move the needle on this. The changed to move the needle on this. The first is that there were a ton of small first is that there were a ton of small first is that there were a ton of small UX improvements that I made. Now, that UX improvements that I made. Now, that

06:56UX improvements that I made. Now, that sounds really boring, but it really does sounds really boring, but it really does sounds really boring, but it really does add up. The less friction that an app add up. The less friction that an app add up. The less friction that an app has, the more likely people are to stick has, the more likely people are to stick has, the more likely people are to stick with it. I'll give you one example. I with it. I'll give you one example. I with it. I'll give you one example. I was talking to users to try to figure was talking to users to try to figure was talking to users to try to figure out what kind of pain points they were

07:05out what kind of pain points they were out what kind of pain points they were facing, where the friction was. facing, where the friction was. facing, where the friction was. Something that kept popping up was that Something that kept popping up was that Something that kept popping up was that they loved the photo feature, where they they loved the photo feature, where they they loved the photo feature, where they can take a picture of the food, and can take a picture of the food, and can take a picture of the food, and it'll go calculate the calories, but it'll go calculate the calories, but it'll go calculate the calories, but they wish that they could edit the

07:14they wish that they could edit the they wish that they could edit the description after the photo was taken. description after the photo was taken. description after the photo was taken. They said that they would use the They said that they would use the They said that they would use the feature way more if they had that feature way more if they had that feature way more if they had that ability, which kind of surprised me, ability, which kind of surprised me, ability, which kind of surprised me, because I was like, "Wait, I definitely because I was like, "Wait, I definitely because I was like, "Wait, I definitely built it where you can edit [music] that

07:23built it where you can edit [music] that built it where you can edit [music] that description afterwards." Like, this is description afterwards." Like, this is description afterwards." Like, this is an input box. When I told them, they an input box. When I told them, they an input box. When I told them, they were like, "Oh, I had no idea. I thought were like, "Oh, I had no idea. I thought were like, "Oh, I had no idea. I thought you couldn't really edit that." I'm you couldn't really edit that." I'm you couldn't really edit that." I'm pretty sure they weren't alone, so I pretty sure they weren't alone, so I pretty sure they weren't alone, so I went ahead and added an explicit button

07:32went ahead and added an explicit button went ahead and added an explicit button that says, "Is something wrong? Do you that says, "Is something wrong? Do you that says, "Is something wrong? Do you want to make an edit here?" [music] And want to make an edit here?" [music] And want to make an edit here?" [music] And now they can type what edit they want to now they can type what edit they want to now they can type what edit they want to make in plain English, and we'll update make in plain English, and we'll update make in plain English, and we'll update everything for them. It's a a change, everything for them. It's a a change,

07:40everything for them. It's a a change, but it really did reduce the friction but it really did reduce the friction but it really did reduce the friction and made the photo feature just that and made the photo feature just that and made the photo feature just that much better. I probably made about 10 UX much better. I probably made about 10 UX much better. I probably made about 10 UX changes that were similar to that to try changes that were similar to that to try changes that were similar to that to try to improve the UX of the [music] app. to improve the UX of the [music] app. to improve the UX of the [music] app. Now, the second thing I added, which I Now, the second thing I added, which I

07:51Now, the second thing I added, which I think is going to make a pretty big think is going to make a pretty big think is going to make a pretty big difference to retention in the long run, difference to retention in the long run, difference to retention in the long run, is that I added proper weight tracking is that I added proper weight tracking is that I added proper weight tracking with progress photos. This was hugely with progress photos. This was hugely with progress photos. This was hugely requested. People wanted to be able to requested. People wanted to be able to requested. People wanted to be able to track their weight over time, but they track their weight over time, but they

08:00track their weight over time, but they also wanted to attach a progress photo also wanted to attach a progress photo also wanted to attach a progress photo so they can see the changes physically so they can see the changes physically so they can see the changes physically in front of them. Here's the strategic in front of them. Here's the strategic in front of them. Here's the strategic reason of why I think this will make a reason of why I think this will make a reason of why I think this will make a big difference and I took the time to big difference and I took the time to big difference and I took the time to implement it. When people start storing implement it. When people start storing

08:10implement it. When people start storing data in your app, especially data like data in your app, especially data like data in your app, especially data like this, kind of like a journal, their this, kind of like a journal, their this, kind of like a journal, their switching cost of changing to a switching cost of changing to a switching cost of changing to a different app goes up dramatically. They different app goes up dramatically. They different app goes up dramatically. They really don't want to lose all that really don't want to lose all that really don't want to lose all that history when they move to a competing history when they move to a competing

08:22history when they move to a competing app. It does really help improve app. It does really help improve app. It does really help improve retention. The third thing that I added retention. The third thing that I added retention. The third thing that I added was a better way to export data and also was a better way to export data and also was a better way to export data and also better syncing with Apple Health, so better syncing with Apple Health, so better syncing with Apple Health, so we'll send even more data to Apple we'll send even more data to Apple we'll send even more data to Apple Health. We actually have this Apple Health. We actually have this Apple

08:32Health. We actually have this Apple Health integration where we can pull in Health integration where we can pull in Health integration where we can pull in your steps, your workout data into the your steps, your workout data into the your steps, your workout data into the app and display it, but Amy also has the app and display it, but Amy also has the app and display it, but Amy also has the ability to send information to Apple ability to send information to Apple ability to send information to Apple Health. So, we send in the calories Health. So, we send in the calories Health. So, we send in the calories consumed data to Apple Health so other consumed data to Apple Health so other

08:43consumed data to Apple Health so other apps can use it. At the request of some apps can use it. At the request of some apps can use it. At the request of some users, I made some improvements so we users, I made some improvements so we users, I made some improvements so we also send in how much protein you also send in how much protein you also send in how much protein you consumed, how much sugar you consumed. consumed, how much sugar you consumed. consumed, how much sugar you consumed. But, changes like this and that ability But, changes like this and that ability But, changes like this and that ability to export your data, this was made to to export your data, this was made to

08:53to export your data, this was made to really build trust with users that really build trust with users that really build trust with users that they're the ones that own their data they're the ones that own their data they're the ones that own their data here. If users trust that they can here. If users trust that they can here. If users trust that they can export and get their data out of the app export and get their data out of the app export and get their data out of the app really easily, they'll be way more really easily, they'll be way more really easily, they'll be way more willing to input data and invest the willing to input data and invest the

09:02willing to input data and invest the time into building their data footprint time into building their data footprint time into building their data footprint into your app, which again, increases into your app, which again, increases into your app, which again, increases retention. Now, the fourth thing I added retention. Now, the fourth thing I added retention. Now, the fourth thing I added on the retention side was smarter on the retention side was smarter on the retention side was smarter notifications. This one was actually notifications. This one was actually notifications. This one was actually driving me crazy as a user of my own driving me crazy as a user of my own

09:12driving me crazy as a user of my own app. Amy has notifications where we'll app. Amy has notifications where we'll app. Amy has notifications where we'll send you reminders throughout the day send you reminders throughout the day send you reminders throughout the day reminding you to log your food. But, reminding you to log your food. But, reminding you to log your food. But, something I hated was they did not take something I hated was they did not take something I hated was they did not take into account if you already logged food into account if you already logged food into account if you already logged food for that day. So, let's say you logged for that day. So, let's say you logged

09:22for that day. So, let's say you logged dinner, then 30 minutes later you get a dinner, then 30 minutes later you get a dinner, then 30 minutes later you get a notification saying, "Oh, reminder to notification saying, "Oh, reminder to notification saying, "Oh, reminder to log dinner." So, now it does take into log dinner." So, now it does take into log dinner." So, now it does take into account where if you logged food for account where if you logged food for account where if you logged food for breakfast or dinner, we're not going to breakfast or dinner, we're not going to breakfast or dinner, we're not going to send you a notification for that. And send you a notification for that. And

09:31send you a notification for that. And this matters a lot because notifications this matters a lot because notifications this matters a lot because notifications are a huge, huge, huge lever when it are a huge, huge, huge lever when it are a huge, huge, huge lever when it comes to improving retention. If you comes to improving retention. If you comes to improving retention. If you bombard users and annoy them with bombard users and annoy them with bombard users and annoy them with notifications and they turn that off, notifications and they turn that off, notifications and they turn that off, that could have a dramatic effect on that could have a dramatic effect on

09:42that could have a dramatic effect on retention. In the future, I actually retention. In the future, I actually retention. In the future, I actually really want to make the notifications really want to make the notifications really want to make the notifications even smarter where we'll take into even smarter where we'll take into even smarter where we'll take into account your eating patterns so that we account your eating patterns so that we account your eating patterns so that we can send you the notifications at the can send you the notifications at the can send you the notifications at the right time. I was actually hoping to do right time. I was actually hoping to do

09:51right time. I was actually hoping to do it this week, but then I realized I made it this week, but then I realized I made it this week, but then I realized I made a huge mistake and I have not been a huge mistake and I have not been a huge mistake and I have not been storing timestamps properly this entire storing timestamps properly this entire storing timestamps properly this entire time. I did store the date, so I know time. I did store the date, so I know time. I did store the date, so I know exactly what day someone ate their lunch exactly what day someone ate their lunch exactly what day someone ate their lunch at, but I didn't store the time. So, I

10:02at, but I didn't store the time. So, I at, but I didn't store the time. So, I have no idea when that actually have no idea when that actually have no idea when that actually happened, so I can't even build these happened, so I can't even build these happened, so I can't even build these smart notifications. So, I fixed that smart notifications. So, I fixed that smart notifications. So, I fixed that and now we are collecting way better and now we are collecting way better and now we are collecting way better data. So, I'll give it some time and data. So, I'll give it some time and data. So, I'll give it some time and then hopefully in the future we can then hopefully in the future we can

10:11then hopefully in the future we can start building these smarter start building these smarter start building these smarter notifications. But, after all these notifications. But, after all these notifications. But, after all these changes, the week one retention went changes, the week one retention went changes, the week one retention went from 8% to about 10% 10.2% to be exact. from 8% to about 10% 10.2% to be exact. from 8% to about 10% 10.2% to be exact. I know this doesn't sound huge, but I know this doesn't sound huge, but I know this doesn't sound huge, but percentage points at this stage are very percentage points at this stage are very

10:22percentage points at this stage are very hard to move. So, I'm actually really hard to move. So, I'm actually really hard to move. So, I'm actually really happy with this number and more happy with this number and more happy with this number and more importantly, the revenue is going up, importantly, the revenue is going up, importantly, the revenue is going up, the cost is going down, and I have a the cost is going down, and I have a the cost is going down, and I have a pretty clear road map of what I need to pretty clear road map of what I need to pretty clear road map of what I need to build next to move these numbers in the build next to move these numbers in the

10:30build next to move these numbers in the right direction. The profit margin on right direction. The profit margin on right direction. The profit margin on the AI stuff went from 50% to about 85% the AI stuff went from 50% to about 85% the AI stuff went from 50% to about 85% and when you factor everything else like and when you factor everything else like and when you factor everything else like hosting costs and all the other stuff, hosting costs and all the other stuff, hosting costs and all the other stuff, we're at a very sustainable and healthy we're at a very sustainable and healthy we're at a very sustainable and healthy profit margin now. That's where we're at

10:41profit margin now. That's where we're at profit margin now. That's where we're at 2 months in. Is it a massive success? 2 months in. Is it a massive success? 2 months in. Is it a massive success? Not really, but it is working. I'm Not really, but it is working. I'm Not really, but it is working. I'm learning stuff every single week and I'm learning stuff every single week and I'm learning stuff every single week and I'm having way too much fun doing all of having way too much fun doing all of having way too much fun doing all of this. If you like this kind of content, this. If you like this kind of content, this. If you like this kind of content, check out my Instagram and TikTok. I

10:51check out my Instagram and TikTok. I check out my Instagram and TikTok. I post every single day about building post every single day about building post every single day about building productivity apps and obviously if you productivity apps and obviously if you productivity apps and obviously if you like this content, don't forget to like this content, don't forget to like this content, don't forget to subscribe. But, thank you guys so much subscribe. But, thank you guys so much subscribe. But, thank you guys so much for watching and I will see you guys in for watching and I will see you guys in for watching and I will see you guys in the next video. the next video.

11:00the next video. >> [music]