The AppyApp company faced a challenge where their app wasn't getting enough attention in the app stores, resulting in low ratings and few reviews. To boost their download rates, they implemented Instabug's in-app chat product to handle negative feedback privately between users and developers, while also encouraging positive reviews by solving user problems and asking for postive comments on app store reviews. This strategy led to a significant increase in user feedback, resulting in a two-star ratings bump, making in-app feedback indispensable for direct communication with their users.