The Success Journey of Zoom App — Case Study
The tech giant of the world of video communication platforms is none other than Zoom. From the name itself, almost everyone knows the Zoom app, as it is really hard to find a mobile or other digital device that has not installed the Zoom app. It was one of the fastest-growing apps during the pandemic and it enabled people to continue with many academic and professional endeavors without suffering any significant losses.
Even though you are so familiar with the Zoom app, do you know how Zoom became such a popular app?
Let’s explore the UNPOPULAR story of the MOST POPULAR app.
The Zoom app, a well-known video communications platform, has become an essential digital tool for numerous people to conduct video conferences virtually. Industry professionals, lecturers, teachers, and even students now use Zoom on a daily basis.
Have you ever thought that you could attend a professional meeting or lecture just by wearing your comfy pyjamas while lying in bed?
However, with just one click, Zoom brought the entire physical meeting room into your bedroom.
When colleagues are speaking from different locations and devices, it is crucial that they can still communicate with one another. Zoom has made it possible for people by enabling them to remotely conduct work, meetings, lectures, and other virtual sessions.
Due to its effectiveness, Zoom’s user base has significantly increased in recent years, causing it to grow excessively.
Eric Yuan, a former vice president of Cisco, invented the Zoom app for video conferencing in 2011. He was the engineer for Cisco WebEx, another videoconferencing product from Cisco. However, he decided to leave the company and found Zoom when he realized that his product was not being used effectively by the company and was not satisfying users.
Zoom app enhances the experience in the team meetings, conferences, and lectures, for example, by enabling users to engage using cameras and microphones from internet-connected devices like PCs, smartphones, and tablets. Users can also share anything on their screens with one another.
In May 2012, the business changed its name to Zoom after being influenced by Thacher Hurd’s children’s book Zoom City. They released a beta version of the app in September 2012, allowing for up to 15 video participants. They signed their first customer, Stanford University, in November 2012. The service was finally launched on January 15th, 2013, and by the end of the first month, Zoom had 40,000 subscribers. By May 2013, that number had increased to 1 million.
From that point onward, the business developed several B2B partnerships, expanding its market share. Additionally, it improved the features of the app, such as meetings with multiple screens and devices, HD and wireless screen sharing, and calendar integration with iCal, Google Calendar, and Microsoft Outlook. Because of these updates, the app has distinguished itself from other video conferencing software on the market.
With a growth of 2,900% in active meeting participants, Zoom was one of the fastest-growing applications in 2020 and 2021. They had 300 million attendees per day in meetings on average in April 2020. Surprisingly, the app was downloaded and installed 3.5 million times in a single day in April 2020. This is an all-time high for Zoom app downloads in a single day.
In 2020, Zoom was downloaded 485 million times and 23 million times in September 2021 across Google Play and the App Store put together.
Along with Zoom Meetings, the platform also provides additional tools with various subscription choices, including Zoom Phone, Zoom Video Webinar, and Zoom Rooms.
The Zoom Freemium Business Model
Zoom has a business strategy that gives users free access to basic services while charging for more advanced features of the system. This model is known as the “freemium model.”
Since most individuals are ready to try out a new app or service for free, this model is quite common among software applications since it has the benefit of having a large faction of initial users, making it simple for the business to attract potential consumers and analyze their user behavior.
Nowadays, the corporation may still generate money by gathering user data and presenting targeted advertisements to users even if they don’t upgrade or purchase premium features. However, if the product is unsatisfactory, free consumers might never upgrade to premium users. An excessive number of features may discourage users from upgrading to the premium version.
- Extra storage.
- Greater flexibility.
- Time permitted on the app.
- Customizations.
These are among the benefits that consumers are typically given as part of premium services. Additionally, users are provided with personalized or customer support related to an account.
How Much Money has Zoom Made?
Zoom has been profitable over the past few years, and its net income has increased each year. Since 2017, Zoom’s revenue has been rising annually, but the 2021 financial year has turned out to be a turning point for the business. From $622 million in FY 2020 to $2.6 billion in FY 2021, Zoom’s revenue increased by roughly 4 times compared to FY 2020.
Zoom’s market value was $5,780,018,000 as of the end of its fiscal year in 2022.
According to Forbes, the Zoom founder’s net worth as of March 9 is $5.7 billion.
Why is Zoom More Popular than Other Video Conferencing Apps?
- Zoom is able to maintain high-quality video.
- Maintaining a straightforward, user-friendly interface.
- Its free version succeeds in providing value as part of the strategy to draw in new users.
- It ensures a positive experience for the users.
- Quality of the support provided.
As already mentioned, Zoom’s market share has expanded significantly and steadily as a result of the pandemic, making it an essential tool for both businesses and private users. Businesses that choose to rely on Zoom’s services to continue to operate despite the Covid-19 pandemic, social isolation, and requirements for working from home across all nations had no minimum criteria for the number of workers.
The platform continues to serve a far higher number of customers than it did before the coronavirus epidemic, even after vaccination and the return to work of many businesses.
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