Defining product and ICPs

What is Gamma?

Gamma is an AI-powered content creation tool that enables users to quickly create presentations, documents, and webpages in a seamless and visually appealing format. It combines the power of design automation, text generation, and modern sharing capabilities to make content creation simple, fast, and engaging.

->Key features:

• AI-driven content creation: Automatically generates presentation content based on your input text, suggesting headlines and structuring slides. 
• Card system: Uses "cards" instead of traditional slides, allowing for easier content organization and flow. 
• Customizable templates: Offers a wide range of pre-designed templates that can be tailored to your brand and style. 
• Drag-and-drop interface: Easily add and rearrange elements like text, images, and videos within your presentations. 
• Real-time collaboration: Work on presentations with multiple team members simultaneously. 
• Multiple export formats: Download presentations in various formats like PDF, PPTX, and images. 
• Built-in analytics: Track audience engagement with presentation views and interactions. 
• Cross-platform accessibility: Access and edit presentations on different devices. 
• Content refinement tools: AI-powered suggestions to improve text clarity and tone. Core problem that Gamma is solving: Gamma removes the need for manual formatting and design while creating content, allowing users to focus on their core work. The tool is tailored to individuals and teams who need to present or share information quickly without compromising on quality.

->Core Value Proposition

Create and share beautiful, interactive and professional-looking documents in minutes by using Gen AI. It does so by following- first, offering pre-designed templates that can be customized according to the content. Second, by automatically generating text and images around a topic in a well-presented layout. Third, allowing users to share the content with the colleagues.

->User experience:

Users are given option to either build documents from existing text or from existing files/webpages. Users can also generate the text and image based content from one-line prompts and share them.

Based on the metrics our prioritized ICP is- IT professionals

Monetization litmus test

Gamma is already monetizing but still we will go ahead go though the framework, to make sure it holds true for Gamma.

1.Retention Graph

We went ahead and conducted some market research in order to understand the retention curve for gamma

"Gamma.app, an AI-powered platform for creating presentations and documents, was launched in November 2021. By July 2024, Gamma celebrated a significant milestone, surpassing 20 million users and generating over 100 million presentations."

"In November 2024, the platform received approximately 28.58 million visits, indicating sustained user engagement."

On the basis of the above publicly available information for Gamma, we found that the users who use gamma return to app and number of users have increased drastically from 2021 to 2024. In fact there is a famous case study on YT where Gamma's CEO and co-founder discussing their company's rapid growth to 3 million users in 3 months and how they later acquired 20M users in 3 months. This signifies that Gamma has a smile-shaped retention curve.

2.Depth of Engagement

I am assuming that core + power users > 50% of total users for Gamma

3.Willingness to Pay

If your product is already monetizing

Skip the litmus test and create at least 3 experiments for free to paid conversion and cross-selling and up-selling

If the product is not yet monetizing

Define your GTM strategy by identifying the right customer touchpoints and develop the right communications for these touchpoints.

CASE 1: When your product is already monetizing, without having to conduct a litmus test let's dive into two key areas to improve the product's monetization

Experiment-1: In-app prompt for free-tier users who wish to use AI generated images but are out of AI credit quota for free-tier users. Here an upgrade CTA will help users upgrade to Gamma Plus and unlock the AI credits needed for generating AI images

Experiment-2:

Email campaign for free-tier users who dropped off while upgrading to Gamma plus paid plan. A clear CTA of upgrade to make them complete the purchase for paid plan.

Experiment-3:

Email campaign to ask free-tier users to upgrade to Gamma plus to extend their AI credit limits

Substitute Pricing

Work on the following aspects:

1. What are your customers paying for?
2. How does your product stand out?
3. How do you position your product?

What are your customers paying for?

Where does your product stand out?

Key Differentiators for Gamma.app:

1. Ease of Use: Intuitive interface designed for both beginners and professionals, enhanced by modular card-based editing.
2. Customizability: Offers pre-built templates and the ability to tailor content to match branding and use cases.
3. AI Features: Advanced AI for generating content, images, and slide recommendations, unmatched by most substitutes.
4. Design Capabilities: Balances ease of design with high-quality visuals, including AI-generated images and interactive elements.

This comprehensive table positions Gamma.app as a modern, AI-driven presentation platform that bridges simplicity and advanced functionality to cater to diverse user needs.

How should you position your product?

Gamma.app provides a consolidated, AI-powered slide deck/website creation solution that addresses multiple needs in a single platform:

• Customers save time by automating content creation.
• They achieve professional quality without needing separate tools for design or branding.
• Integrated analytics and interactivity enhance the presentation impact.

If they aren’t paying, customers are likely cobbling together multiple tools, increasing costs, effort, and complexity.
Gamma.app must emphasize its value as a unified, time-saving, and creative solution to convert users who seek efficient usage of their time and effort and professional touch in presentations (at optimal cost) into paying customers.

Monetization design

Add an introduction for monetization connecting it to your Litmus Test and User Insights)

Gamma.app's monetization design should be based on subscription and we will be covering details in next sections:

Who to charge?

(Conduct an RFM Analysis and identify the users that you are monetizing and think about why them and not others?)

Step 1: Lay down the baseline scenario

Lets say 40% of non-revenue generating customers converted to paid users paying Rs. 300/month, so at the end of the year we have Rs 40x300= RS 12000/month from our earlier non-revenue generating users that we have just converted.

Step 2: Test their elasticity

We will charge the core and power users. We will introduce pricing campaigns we designed (in-app, email based, discount, upsell, cross-sell from 1st section to our core and power users)

Outcome Measurement:

·       Churn Rate: We will monitor how changes in pricing impact cancellations in each segment.
Example: Offering extra value in a premium tier may reduce churn among Power Users.

·       Revenue Gain: Measure increases in revenue by tracking upsells or new subscriptions from each segment.
Example: If casual Users upgrade to power, the strategy successfully increases revenue.

RFM analysis:

Gamma is a matured product having over 40M users. We can ideally use the RFM segmentation. Assumptions will be marked in **

• Champions are the users who bought Gamma plus/pro plans for >12 months and have made the last purchase/upgrade until this month.
• Loyalist customers: are the users who bought Gamma plus/pro plans for >12 months and have made the last purchase/upgrade until last month.

The Champions and the Loyalists will be the ones will the highest price elasticity and lowest churn!

I will divide the champions in our ICPs:

1. IT professionals (60%)
2. Educators (20%)
3. Students (10%)

Out of these three, IT professionals will be the one that will have the highest appetite to pay, as these payments will be done by the organizations they are working in. Hence we'll be targeting IT professionals ICP who are the champion users. This ICP has maximum number of users who bought Gamma plus/pro plans for >12 months and have made the last purchase/upgrade until this month. .

When to charge?

(Calculate the Aha Moments and Happy Moments and the Perceived Value attached thereon, try to plot Perceived Value and Perceive Price on a graph )

Step 1: Perceived value : Identifying which aspect determines value for your product

Step 2: Competitor Benchmarking

Competitor Benchmarking for Gamma.app

Analysis

1. Assessing Product Benefits vs. Competitors:
2. • Gamma.app offers unique features such as AI-powered content generation and real-time collaboration, which are attractive to users looking for modern presentation solutions. However, competitors like Presentations.AI provide more robust AI capabilities focused on corporate branding, which could appeal to business users.
3. Differentiation Opportunities:
4. • While Gamma has strengths in design flexibility and innovative formats, it can enhance its offering by improving the export functionality to PowerPoint and ensuring better compatibility with existing tools. Additionally, emphasizing its analytics features could provide users with clearer ongoing value.
5. Value Proposition at Similar or Lower Offering:
6. • If Gamma can lower its pricing or enhance its free tier offerings while maintaining quality, it could attract users from competitors like ChatGPT for PowerPoint, which offers advanced features at a lower cost.
7. Next Best Alternatives in the Landscape:
8. • If users find Gamma lacking in specific areas (e.g., advanced AI capabilities or ease of use), they might consider alternatives like Presentations.AI for corporate-focused presentations or Beautiful.ai for traditional slide-based presentations.

Conclusion

Gamma.app has a solid foundation with innovative features that cater to modern presentation needs, but it faces stiff competition from platforms that offer stronger AI capabilities or better integration with existing tools. By addressing its limitations and enhancing user value propositions, Gamma can strengthen its position in the competitive landscape of presentation software.

Step 3: Quantify your results ensuring they align with your price

We spoke to 6+ users to find out that gamma saves them atleast 1 hour of day when they actually work on any presentation.

core users: use 3 times in 1 month -> 3x1= saves 3 hours/ month

power users: use 12 times in 1 month-> 12x1= saves 12 hours/month

Step 4: Map out the products’ perceived value of across the user’s journey

1. We'll be charging for perceived value of card
2. We will limit the generation of card with money. Free tier users will be able to generate up to 10 cards in a deck. If user has to use more than 10 cards, he will have to upgrade to plus plan.
3. We will charge for cards after 14 days or 25 AI credits consumption as by that time we will build enough perceived value for card
4. Aha moment will occur for the user as soon as he generates a first thorough slide deck.

What to charge for?

(Identify what you're charging for- the core value and the currency for the product)

Proposal:

Apart from above two for which Gamma already charges, it can also charge for slides shareability and collaboration with team members and additional accesses:

So we will be charging for base product (free-tier) plus extra features based on access and sharing/collaboration

How much to charge?

(Do your own math and build 2-3 different pricing strategies and maximize your revenue)

• For a champion user- ICP IT professional, Gamma helps save 2 hours a week
• Say an IT professional earns RS1000 per hour, Gamma saves Rs 2000 per week or 4x2000= Rs 8000 saving per month. This is perceived value
• On an average an IT company pays Rs145 per month for access to Microsoft 365 (MS power point being the closest competitor with a considerable market share). This is perceived price
• 8000/145~ 55x

Pricing Page

(Understand the existing user discovery flow for pricing and try to understand why things are being done they are currently)

Pricing Page Design

(Step 1 - Analyze the existing pricing page objectively)

(Step 2 -Re-design the Pricing Page)

(Step 3- Add reasoning for the same)

We hope this helped you break the cold start problem!

Reminder: This is not the only format to follow, feel free to edit it as you wish!

Delete the boilerplate once you've made your project

Discovering Gamma's pricing page

1.Clear Navigation

There is clear navigation on the homepage. Free tier user ca click on 'get unlimited AI' to upgrade to paid plans and unlock access to unlimited access to AI.

2.SEO ranking

SEO ranking is good- Gamma pricing plans come on top in organic search on google

3.Contextual linking

help section: for earning more credits:

Personalized CTAs

User coming from email campaigns offering holiday discount:

The email campaign:

The personalized CTAs:

User segmentation

individual users:

Pricing page design

Incorporating behavioral and cognitive biases can guide users toward a particular pricing plan, simplify the decision process, and make your product’s value more apparent.

Step 1: Pricing Page Teardown

1. Gamma follows the three pricing strategies, with a default selection of middle tier i.e Gamma Plus. Most people will pick the second/ the middle option of the three on their screen. Thinking first is useless but the third is the most expensive.
2. Visiting a saree shop/ownership effect: Gamma provides a freemium subscription model. Gamma's free tier experience is very good that not paying for it makes them feel like they lost something of value. Free tier experience is an experience of paid features but in a limit.
3. Price anchoring: Decoy effect, people opting for mid-ranged Gamma Plus option, with a default set on middle option.
4. System Design: Gamma opts for system-1 design for Gamma plus and pro which are single click checkout designed for individual customers and SMBs. RS260 ad Rs 487 per seat per user boils down to pretty low AOV. Plus, if we think about frequency, the subscriptions need monthly/annual renewals.
5. Gamma opts for system-2 design for Enterprises. There is a lot of friction added here purposefully. If as an Enterprise, I wish to decide right plan for our team, I should go to FAQs and mail my requirements on an email.

Step 2 and Step3 : Redesigning Pricing Page and reasoning

1. We have introduced an enterprise plan which is as of now deeply integrated into FAQs and has so much friction that its hard for users to find out. We'll still be going ahead with system-2 design for Enterprise plan.
2. There are no nudges for users to understand which plans are ideal for which ICPs, hence we have added short description of use case and ideal user segment.
3. We are adding scratching effect for price display to add a natural feeling of getting a better deal for users.