how brands create value from apps by @mwj
DESCRIPTION
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.TRANSCRIPT
how brands can create value from apps
and the role of the mobile operator
Mark Watts-Jones@MWJOpenMIC, OxfordDecember 2010
and the role of the mobile operator
This is what I’m going to say…
1Who are your users?
and why we should develop for specific customer needs
2Operators are brands
and how brands can create value from their apps
3Operators and apps
as carriers/operators rather than brandsand apps
4 Devicesand why mobiles are not yet all smartphones but might end up that way
5 A final thought Is London 2012 the next tipping point?
Who are your users?1 Who are your users?and why we should develop for specific customer needs
In the UK there’s 60 million mobile consumers – it’s fair to say that they’re not all the same
1
They have different life stages, expectations, experience, capability and importantly money
1
Average monthly spend:
PAYM: about £45PAYG: about £12
So the simple point is to target your apps at specific customer
groups
Operators are brands2 Operators are brandsand how brands can create value from their apps
Selling direct is tough – some apps succeed but there’s a lot of competition for consumers 59p’s
2
…so lets have a think about other ways that apps can create value
for brandsfor brands
‘Value’ can be created in different ways…2
One overriding principle:
Apps should directly benefit how brands
1. Raise revenue
2. Stimulate mobile commerce
3. Save cost
4. Extend reach
5. Improve brand perception benefit how brands create value from their day–to-day
business
5. Improve brand perception
6. Improve customer engagement
7. Advertising/brand extention
8. Differentiate product
9. Lock in customers
1. Raise revenue - charge for app/in-app purchases2
1. Free app with In App recipe purchases
2. Revenue oriented
3. Extends Jamie Oliver’s reach into new content
4. Supports book sales?4. Supports book sales?
Jamie OliverJamie’s Recipes
Free
2
1. Stimulates new revenue opportunities
2. Highly integrated with online
3. Focuses on convenience for customer
2. Stimulate mobile commerce
4. Extends Tesco’s reach
Tesco Tesco Grocery
Free
2
1. Reduces calls/emails to expensive call centres
2. Convenient and immediate for the customer
3. Encourages regular interaction with brand
3. Save cost
with brand
4. Opportunities for cross promotion
O2 My O2Free
2
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,
4. Extend reach
search for property when mobile, uses location
RightmoveFree
2
1. Is really about customer engagement
2. Adds richness and extends customers experience
3. Encourages regular interaction with brand
5. Improve brand perception – give customers something they value
with brand
4. Reminds the customer about the benefits of Orange
OrangeOrange Wednesdays
Free
2
1. Positioned as a useful utility
2. Encourages regular interaction with brand
3. Extends Starbucks reach
4. Trojan horse for future Starbucks
6. Improve customer engagement – help the brand get and keep in touch
payment card/reward points features?
StarbucksMy Starbucks
Free
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
WaitroseWaitrose Christmas
Free
4. Encourages interaction with brand
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
Nike Nike+£1.99
customer experience
4. Encourages regular interaction with brand
5. Huge PR benefits
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
Sky Sky+/Sky Mobile TV
Free
3. App is the ‘face’ of strong product differentiation
4. Reminds the customer about the benefits of Sky
…but then there can be too much of a good thing!2
Operators and apps3 Operators and appsas carriers/operators rather than brands
Operators will continue to customise and brand devices and apps
3
• 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+ andAndroid strongly perform in
mainstream customer groups
Operators App Stores of one kind or other will continue to emerge
3
As will loads and loads and loads of others3
Some will be bigger than others… Don’t ignore Nokia3
• Symbian may be resurgent or on it’s last legs depending on who you believe but…
• Nokia have a massive worldwide installed base worldwide installed base
• the Qt framework seems better
• They have loads of cash to invest
• And decent operator relations
Devices4 Devicesand why mobiles are not yet all smartphones but might end up that way
Total market share by manufacturer (in UK)4
Still dominated by Nokia, SE, Samsung
Sales of new mobiles by OS (in Western Europe)4
High growth in smartphones, still lots of Symbian
Forecast sales of smartphones (in USA and Canada)4
Smartphones soon dominate the whole market
Source: Morgan Stanley
And why is this important?4
Much higher use of data for smartphones
A final thought5 A final thoughtIs London 2012 the next tipping point?
London 2012
Ubiqiuitous Wifi?
High levels of smartphone and tablet use
Mobile coverage on the Underground?
7 There’s a few things coming together around 2012
Contactless ticketing and payments for all events
Live content streaming