Lesson
Why Monetization Matters
Monetization is the process of transforming a product, service, or audience into a sustainable source of revenue. It’s about helping customers see enough value in your product to actually invest in it.
Monetization – and the revenue growth that comes with it – wouldn't be possible without customer engagement. The more users engage with your brand, the greater the opportunities for monetization. However, simply messaging customers isn’t enough; you must deliver genuine value.
For example, a fitness app can help a user plan their workout classes by sharing location-based gym recommendations. A ride-sharing service that simplifies their ride request process makes booking easier for customers who are juggling multiple things. A retail brand's restock notifications ensure customers don't miss out on their favorite products.
What are some ways that you use messaging to bring value to your customers' experiences?
Understanding Conversion vs. Monetization
It's important for marketers to differentiate between conversion and monetization.
- Conversion occurs when a customer takes a specific action—like making a purchase or signing up for a newsletter—often driven by marketing efforts.
- Monetization, however, focuses on how brands generate revenue and profitability by aligning customer actions with financial goals.
Strategies for conversion and monetization help you turn interactions into revenue, while also building your brand's understanding of your customers with valuable data.
Monetization in Action
Monetization can be achieved through various strategies, including subscriptions, advertising, in-app purchases, and premium features. Select the options below to learn more about key areas marketers should focus on to prioritize monetization.
First impressions matter! By engaging users effectively during their initial interactions with your brand, you will pave the way for them to complete high-value actions, like purchases. For example, a new user of a meal kit service should receive clear messaging about the benefits of each subscription option to build trust and select the right plan for their needs.
Check out the Braze Acquisition in Action Guide to learn more about how to engage users in the early experiences with your brand. You can also access a collection of activation-related Braze use cases in the Customer Activation Playbook on Braze Learning.