Selling direct to consumers through app stores is tough, particularly if you’re a small developer and although some apps succeed there’s a lot of competition for consumers 59p’s. But if you’re a developer working for a brand, whether small or large, the critical success factor is to ensure that the app that you build creates the maximum value for the business that you’re working for.
In my presentation to OpenMIC in Oxford I talked about the different ways that businesses create value and how it’s important for developers creating or pitching for apps support this value.
The key point is that if you understand the motivation of the brand and how they benefit then your app development or pitch will hit what your client is looking for.
I provide these examples:
1. Raise revenue
2. Stimulate mobile commerce
3. Save cost
4. Extend reach
5. Improve brand perception
6. Improve customer engagement
7. Advertising/brand extention
8. Differentiate product
9. Lock in customers
Later on in the pack I look at the role of the mobile operator in app markets and provide some stats on smartphone penetration.
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How brands create value from apps by @MWJ
1. how brands can create value
from apps
and the role of the mobile operator
Mark Watts-Jones
@MWJ
OpenMIC, Oxford
December 2010
2. This is what I’m going to say…
Who are your and why we should develop for specific
1
users? customer needs
Operators are and how brands can create value from their
2
brands apps
Operators
3 as carriers/operators rather than brands
and apps
and why mobiles are not yet all smartphones
4 Devices
but might end up that way
5 A final thought Is London 2012 the next tipping point?
3. 1 Who are your users?
and why we should develop for specific
customer needs
4. 1 In the UK there’s 60 million mobile consumers – it’s fair to say
that they’re not all the same
5. 1 They have different life stages, expectations, experience,
capability and importantly money
Average monthly
spend:
PAYM: about £45
PAYG: about £12
So the simple point is
to target your apps at
specific customer
groups
6. 2 Operators are brands
and how brands can create value from their
apps
7. 2 Selling direct is tough – some apps succeed but there’s a
lot of competition for consumers 59p’s
…so lets have a think
about other ways that
apps can create value
for brands
8. 2 ‘Value’ can be created in different ways…
1. Raise revenue
2. Stimulate mobile commerce
One overriding
3. Save cost principle:
4. Extend reach
Apps should directly
5. Improve brand perception benefit how brands
6. Improve customer engagement create value from
their day–to-day
7. Advertising/brand extention business
8. Differentiate product
9. Lock in customers
9. 2 1. Raise revenue - charge for app/in-app purchases
1. Free app with In App recipe
purchases
2. Revenue oriented
3. Extends Jamie Oliver’s reach into
new content
4. Supports book sales?
Jamie Oliver
Jamie’s Recipes
Free
10. 2 2. Stimulate mobile commerce
1. Stimulates new revenue
opportunities
2. Highly integrated with online
3. Focuses on convenience for
customer
4. Extends Tesco’s reach
Tesco
Tesco Grocery
Free
11. 2 3. Save cost
1. Reduces calls/emails to
expensive call centres
2. Convenient and immediate for
the customer
3. Encourages regular interaction
with brand
4. Opportunities for cross promotion
O2
My O2
Free
12. 2 4. Extend reach
1. Extends Rightmove reach into
new channel
2. More convenient and immediate
for the customer
3. Obvious consumer benefits e.g.
search for property when mobile,
uses location
Rightmove
Free
13. 2 5. Improve brand perception – give customers something
they value
1. Is really about customer
engagement
2. Adds richness and extends
customers experience
3. Encourages regular interaction
with brand
4. Reminds the customer about the
benefits of Orange
Orange
Orange Wednesdays
Free
14. 2 6. Improve customer engagement – help the brand get
and keep in touch
1. Positioned as a useful utility
2. Encourages regular interaction
with brand
3. Extends Starbucks reach
4. Trojan horse for future Starbucks
payment card/reward points
features?
Starbucks
My Starbucks
Free
15. 2 7. Advertising/Brand extention – support a campaign or
extend brand
1. Supports the Waitrose Christmas
advertising
2. Adds richness and extends
customer experience
3. Extends Waitrose reach
4. Encourages interaction with
brand
Waitrose
Waitrose Christmas
Free
16. 2 8. Product differentiation
1. Strong innovation in core Nike
business of training shoes
2. Delivers great feature
differentiation
3. Significant addition to Nike
customer experience
4. Encourages regular interaction
with brand
5. Huge PR benefits
Nike
Nike+
£1.99
17. 2 9. Customer lock-in
1. Customers can only use the app
if they continue as a Sky
customer
2. Adds richness and extends
customers experience
3. App is the ‘face’ of strong product
differentiation
4. Reminds the customer about the
benefits of Sky
Sky
Sky+/Sky Mobile TV
Free
18. 2 …but then there can be too much of a good thing!
19. 3 Operators and apps
as carriers/operators rather than brands
20. 3 Operators will continue to customise and brand devices
and apps
• This is the £99.99 Orange San
Francisco Android on PAYG
• Shipped with Android 2.1
• Great hardware spec
Takeaway:
Android prices will fall,
market share will soar in Q4
2010+ and
Android strongly perform in
mainstream customer
groups
21. 3 Operators App Stores of one kind or other will continue to
emerge
23. 3 Some will be bigger than others… Don’t ignore Nokia
• Symbian may be
resurgent or on it’s last
legs depending on who
you believe but…
• Nokia have a massive
worldwide installed base
• the Qt framework seems
better
• They have loads of cash
to invest
• And decent operator
relations
24. 4 Devices
and why mobiles are not yet all smartphones
but might end up that way
25. 4 Total market share by manufacturer (in UK)
Still dominated by Nokia, SE,
Samsung
26. 4 Sales of new mobiles by OS (in Western Europe)
High growth in smartphones, still lots
of Symbian
27. 4 Forecast sales of smartphones (in USA and Canada)
Smartphones soon dominate the
whole market
Source: Morgan Stanley
28. 4 And why is this important?
Much higher use of data for
smartphones
29. 5 A final thought
Is London 2012 the next tipping point?
30. 7 London 2012 things coming together around 2012
There’s a few
Mobile coverage on the
Ubiqiuitous
Underground?
Wifi?
High levels of smartphone
and tablet use
Live content
streaming
Contactless ticketing and
payments for all events