Slack, the popular workplace collaboration tool, now has 4 million daily active users (DAU) and more than 1.25 million paid users, the company revealed in a blog post.
However, the company’s unmitigated growth rate is showing signs of decelerating, falling from 50% DAU growth recorded in December 2015 to 33% DAU growth. While this is by no means a company in the throes of a death rattle, the drop in growth could become a concern for the company as new players enter the market — particularly Facebook’s new Workplace.
Slack’s initial appeal may be its eventual downfall. Slack’s simplistic and intuitive chat-based interface, which supports seamless company-wide communication, was largely behind its rapid growth. But it also enables employee procrastination and low-value socializing, which could drive away businesses, according to TechCrunch. Other companies, like Dropbox, similarly approached the enterprise in a more casual way before realizing that this strategy wasn’t a hit with conservative businesses.
Meanwhile, rival collaboration app Workplace is quickly adding businesses to its portfolio. The company signed on 1,000 businesses during its trial phase, such as the Royal Bank of Scotland. Facebook’s new enterprise-facing offering could have a leg-up against Slack since users are more familiar with its layout, which mimics Facebook’s consumer offering.
Slack may need to begin investigating new tools and services aimed at user education as well as procrastination reduction in order to maintain its growth. This could serve to help Slack enter into bigger more established businesses, which will be integral to the company’s future growth.
Messaging apps have evolved beyond simple text communication tools to include commerce, file sharing, artificial intelligence, and more. And that evolution is ongoing.
BI Intelligence, Business Insider’s premium research service, has compiled a detailed report on messaging apps that takes a close look at the size of the messaging app market, how these apps are changing, and the types of opportunities for monetization that have emerged from the growing audience that uses messaging services daily.
Here are some of the key takeaways from the report:
- Mobile messaging apps are massive. The largest services have hundreds of millions of monthly active users (MAU). Falling data prices, cheaper devices, and improved features are helping propel their growth.
- Messaging apps are about more than messaging. The first stage of the chat app revolution was focused on growth. In the next phase, companies will focus on building out services and monetizing chat apps’ massive user base.
- Popular Asian messaging apps like WeChat, KakaoTalk, and LINE have taken the lead in finding innovative ways to keep users engaged. They’ve also built successful strategies for monetizing their services.
- Media companies, and marketers are still investing more time and resources into social networks like Facebook and Twitter than they are into messaging services. That will change as messaging companies build out their services and provide more avenues for connecting brands, publishers, and advertisers with users.
In full, this report:
- Gives a high-level overview of the messaging market in the US by comparing total monthly active users for the top chat apps.
- Examines the user behavior of chat app users, specifically what makes them so attractive to brands, publishers, and advertisers.
- Identifies what distinguishes chat apps in the West from their counterparts in the East.
- Discusses the potentially lucrative avenues companies are pursuing to monetize their services.
- Offers key insights and implications for marketers as they consider interacting with users through these new platforms.
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