As soon as a green owl appears on some of my friends’ screen, it is time for them to pick up their phones to continue a streak. Ten minutes later, they tell me how they completed their 100-day streak, which has become important as keeping streaks on Snapchat alive. Duolingo streaks have become a staple for almost millions of people and many of my own personal friends. In my opinion, those who can keep these streaks going have always impressed me since I can barely keep a streak on Snapchat active with my own friends.
However, my biggest question is not just why was Duolingo invented, but most importantly, what is their equation in becoming this addictive part of our lives?
Duolingo co-founder Von-Ahn described in an interview with Americas Quarterly how in Latin America the education gap varies across the socioeconomic spectrum. If you come from a better off family, then you may receive a better education, but if you come from the other end of the socioeconomic spectrum, then you may not be able to learn the basics of education. This is one reason why Duolingo has remained free since its founding in 2012, as the founder knew how essential it was for people to learn English if they wished to advance in life or get any sort of job.
Duolingo’s founders developed a business model which used parts of other successful app techniques of remaining free by having their app ad-supported, but then added another level via their paid subscription service. Duolingo’s profit margin shows that in 2023, the company’s profit was $531 million, with a forecast showing a $731 million profit in 2024. Only 8% of Duolingo users pay the subscription prices, making up around 80%of their overall profits. Though, many users, like me, use the free version of the app making up around 8% of their overall earnings.
They attribute their business success to their branding and marketing strategy. They believes that what separates them from their competition is that they understand how hard it is to stay motivated when you are learning something new. Gamification was their answer to keeping users coming back to the app. By using gamification as their main marketing strategy, they have created a fun habit and increased the likelihood of coming back since when users feel a sense of accomplishment and feel that they did something productive with their time.
The app has become synonymous with their green owl. This owl has taken on a life of his own, throwing parties and reminding those using the app that they need to come back to practice. It has created a distinct personality and the memorability of its logo. They were able to build trust amongst their customer base, and whenever you see a green owl, many automatically think of Duolingo.
Duolingo proves that when you see a consumer need, want to help those with those needs and understand mentally who you are targeting, as your brand could dominate an entire area of their own.
