Does Your Business Really Need A Mobile App?

Posted on March 21, 2013 by Rahul Varshneya

The mobile space is really gaining ground and increasingly companies and individuals are starting to get more traction through this medium. Just take for instance Facebook; it now calls itself a ‘mobile company’.

But is that really a good thing, like the article linked above asks? Is Facebook actually making money off it and are companies that are jumping the bandwagon really getting any traction from mobile apps?

This really is the big question. And the reason why is because most companies feel that it is ‘cool’ or ‘being accepted’ or ‘with it’ to have a mobile app; whether that goes with their overall strategy or not is beside the point.

Not only is it time consuming to get traction on your mobile app, but it is also quite an expensive proposition that may not give you significant returns. The costs do not end with the development of the application. You need to market the app and also maintain it. You would need to constantly update with enhancements based on customer feedback and also to sustain their interest.

So, look before you leap and only hop on to the bandwagon if you feel it will make a significant impact on your company’s performance.

Why should you make an app?

#1 – Customer Engagement

The best thing about the mobile channel is that it gives companies the potential to engage with their customers in real-time, by location and complete with profile information. You need to get your customers to talk to your brand and not the other way round.

This, of course, is one of the most challenging category, but if done right, can help turn those engaged customers into revenue generating ones. Take for instance Kraft’s iFood Assistant. The application offers over 2000 recipes, many of them using Kraft products with shopping lists and interactive deals and coupon features to incentivize shoppers. The app also includes social sharing capabilities allowing consumers to share recipes with friends on social networks.

#2 – Customer Service and Support

Making it easier and more efficient for your customers to get in touch with your company and offering them tools to make their life easier while using your products or services can be a great reason to develop a mobile app.

Digital Federal Credit Union, based in Marlborough, Massachusetts, has launched an app called Mobile PC Deposit that allows members to deposit a check using the iPhone and Android-based smartphones, among other platforms. This makes customers’ lives easier and is a fantastic value add to their service.

Another example is Air Asia, giving customers the ability to ask questions through their smartphone. The iPhone app has reportedly generated two million downloads and the introduction of the app is said to have resulted in a 40% reduction in contact center costs.

#3 – Monetization

One of the most popular means to attract more customers to your business to monetize from is offering coupons. And mobile adds an interesting layer of location-based push notifications. So imagine being the owner of an apparel store in downtown New York with thousands of people in a 1 mile radius of your outlet and if they were to get notified on their mobile phones about your offer with a coupon delivered to them, what is the likelihood of them visiting your store right then?

Target offers mobile coupons and you’ll get money-saving offers on items delivered via text message to your Web-enabled phone with a link to a barcode and discount offers. To redeem, simply show your coupon bar codes to the cashier, who will scan them like a regular coupon.

#4 – Extension of your Product/Service Experience

If you sell your products or services (cloud-based) online, a mobile app may be an option worth considering. What is does is that it gives your customers the mobility to do the same things that they would traditionally have done sitting at their desks.

Many examples for this one where most online shopping companies have extended their offerings to customers who want to shop on the go using their mobile phones. If you’re a service company, you too can capture a larger share of the market such as what Dropbox did.

Whatever is your reason to develop a mobile app, make sure that it blends in with your company’s business plans. And if you really must develop up mobile app, think of creative ways from the above areas that will capture your existing or potential customers’ fancy.

And when you’re ready to develop, look up Arkenea, a service partner to entrepreneurs and small and mid-sized businesses helping them develop their mobile apps. (Disclosure: I’m the co-founder of the company)

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How To Monetize Your Mobile Startup – App To Revenue

Posted on December 31, 2012 by Rahul Varshneya

It’s fantastic to know that you’ve decided to launch your mobile startup. (Otherwise, you wouldn’t be reading this article, would you?) But have you given the monetization a thought?

You probably have, but do you know all the options that exist? How do you know what is best for your mobile app?

Do you know that you need to think about monetization the moment you start working on your app idea? A good monetization strategy plays a crucial part in determining the success of your mobile app.

While there are many options to monetize, the way to achieve any kind of revenue growth, you require repeated transactions. Think about how you can constantly get your users to pay while they use your application.

Option #1 – Free App

Not really an option, but something you’d put your bets on, not just for the success of the app, but for getting revenues, if any. This is the Instagram model.

You create a free app, get a whole host of users (typically, at least a million engaged), and hope to arrive at a monetization later on, an option wherein you could even sell your mobile startup. Just like Instagram did (sell), or Twitter did (figure out and monetize later).

Both are very high-risk strategies as you really need to be lucky for someone to consider buying out your mobile startup. Also, you’ve got to have a sizeable number of engaged users, month on month to be able to monetize from at a later stage like how Twitter is doing and so did the social app Path.

This strategy does not suit all. Only if you’re building a social app or where you expect users to stay engaged and interact with the application (not utility ones or the ones which run in the background), is where this strategy would work best.

Option #2 – Paid App

It’s as simple as that. You put up a paid application on the app store. Herein, the users pay just once to download the app and don’t pay anything anymore throughout the lifecycle of the app, even if you have several updates and feature additions.

Think hard before you choose to use this strategy. Is your application compelling enough for users to pay to download the app? Is your application compelling enough that users will choose to pay for the download even without sampling it?

If you’ve got a must-have app, then sure, you can pull this off. But if you’ve got a nice-to-have app, it’s going to be difficult unless you build enough hype that makes it seem like a must-have app.

The kind of apps that do best in this are personality driven apps such as Glenn Harrold’s or utility applications such as Clear, which was a hugely successful to-do app that launched in an already crowded market. This also works with many game apps.

Option #3 – Free App With Advertising

This option is where an application that is free to download and use, but displays advertising in the app so that the developer can make money while users get a free experience.

Many game apps use this strategy and so do many apps that are complete versions with ads for the entire lifecycle of the app, even if there are feature additions or upgrades.

See this example, Sleep Easily Meditations by Shazzie. This author has many paid applications in the app store, but has given one of her apps as a free download with ads in it for users to sample what she has to offer. If they like, they proceed to buy more. Her Sleep Easily application received over a 100,000 downloads within a very short span of time since launch.

A point to note though: you only make money when a large number of users download and use your application on a very frequent basis. So choose this option wisely as you only make money when users click on ads in your app.

Here, the iOS apps draw larger revenues than Android apps, generally.

Option #4 – Free App With Paid Upgrade For Ad-Free Version

These are apps that are basic versions with ads and require the user to purchase a version that does not have ads in it for an un-hindered experience.

This is a very good dual monetization strategy to adopt. Especially, when you’re not very sure whether to go in for a free app or a paid one. Or that you want a user to experience your app and then if they want a better experience, they have the option of removing the ads.

Here you earn when the app is used for free and you earn again if the user upgrades!

One such example is FITEO Free. The app gives users a complete experience but with display of advertising in it. And the users can always buy the version without adds for an un-hindered experience.

Another great example of this is the Hanging With Friends game. Go check it out how brilliantly they have used the ads in the game app.

Option #5 – Free App With In-App Purchase

This is the most popular option used by game apps. Free games are available in plenty, which require you to pay (once you’re hooked) to get virtual goods that help you play the game better. See Mega Jump and Jetpack Joyride.

The way apps use it is that they offer basic features for free and require the user to pay through within the app (in-app purchase) to download and use premium features in the application. See Pandora Radio and Emoji>.

If you feel you’ve got a compelling app, but will take some time for a buy-in from your customer, you can then offer a free basic version and let them buy specific features independently from within the app or a group of features for a price.

These are some of the most widely used monetization strategies and there are some others, which are an offshoot of these. Which means that you can get creative even with pricing your app.

Most importantly though, think about monetization right at the beginning so that the entire product offering can be structured accordingly so that you get feedback on pricing as well at the prototype stage.

All of these above tips will define whether your app is successful or not. If you’ve gone through this process, I would love to hear your experience in the comments below.

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Should You Outsource The Development Of Your App Or Website?

Posted on December 19, 2012 by Rahul Varshneya

When you are bootstrapping to launch your venture, pool in all your funds, keep the costs low and go with an outsourced provider that understands your requirements best. I understand the predicament that most have with regards to outsourcing, but the most important thing for you at this moment is to get your product out there.

Remember this, most products do not see the light of the day for months and years just because entrepreneurs wait for something or the other to happen.

Once you have a Beta going, maybe go in for funding, scale it up and hire a team who can then carry it on from there.

I will go on to give you an example of what kind of service provider you should look for. I am also the co-founder of Arkenea Technologies, that helps entrepreneurs build engaging mobile and web experiences.

While there are a dime and dozen development companies in the market, what separates Arkenea is that the company gets into the skin of the entrepreneur and understand the product from their perspective. They figure out the business (through their own orientation), provide business and customer insights, help mould your product to carve a niche for itself in the market, essentially helping you build a product that you can be proud of.

And of course, end of the day, there are developers in the team who work to deliver as per the specifications.

You should look for these qualities in a service provider. This will benefit your venture and most importantly, you will enjoy the process of creation!

The Ultimate Guide To Marketing Your Mobile Startup

Posted on November 29, 2012 by Rahul Varshneya

In one of my previous articles, I had written about Launching A Successful Mobile Startup and provided four rock-star tips on how you can do so. I had also promised a detailed article in that on how you can market your mobile startup to success.

And here it is, as promised.

Getting down to business, if you’re looking at launching a successful mobile startup, then reaching out to your customers is as important as having a great app.

Marketing begins the day you put your mobile app idea into production. The activities are divided into two phases: Pre-launch and Post-launch marketing.

Most of the ideas here require no money at all to market. All it requires is time and commitment to get you the much-needed visibility.

Pre-Launch
The day you have firmed up your product idea and put into development, start with these activities immediately for unbelievable results.

Blog: create a blog where you write regularly about the issues that your product touches up on. Remember to keep this generic; no one likes to be pushed updates only about your product. Content marketing is a huge traffic driver and helps in monetizing. Read this awesome post by Neil Patel on his Quicksprout blog on how to write a powerful blog post/article in two hours.

Microsite: create a microsite, typically a one-three page website that is an advertising tool for your app. Even though a lot of downloads will come through app stores directly, a huge amount of traffic is driven through the web. Here are some such examples of great app microsites: Piictu, Instagram, Path, Sonar and Assistant App.

Social Media Profiles: create a profile across social media and bookmarking sites such as Twitter, Facebook, Linkedin, Digg, Stumbleupon, etc. This will help you spread the word about your blog posts and also write much more about the category and related content of your product idea. Always include a link to the microsite. Here are 10 ways to get more traffic, attention and higher rankings through social sharing.

Teaser or Giveaway: what good is a microsite and linking that to posts when the product is not available in the app stores yet? My suggestion is to build a teaser campaign or a giveaway into your microsite and invite people to share their email address to stay updated on when the app launches. Now you’ve got your own database from people who have shown interest in your product. These are the people that are more likely to convert as customers. Here’s an excellent example of such a page: Turnplay.

SEO: begin search engine optimization or SEO immediately for your microsite. SEO takes anywhere between 3-6 months to start showing good results. By the time the traffic starts building up, you would have had a version of your product ready for launch. Even if not, you still have your teaser campaign running and getting more opt-ins for when your app launches. Works both ways and is very crucial to begin with at this stage.

Tech Blogs: when you’re about a month away from launch, prepare a fantastic press release or write up about your product idea and why you think it will change the world. Here’s an article on writing a brilliant pitch for blogs. Start getting in touch with blogs such as Mashable, TechCrunch, TheNextWeb, FastCoDesign, Ars Technica, etc who are likely to write about your product even before it launches if they feel that it truly is a path-breaking idea or execution.

Take for instance Clear. This iPhone app started to get tech blog coverage based on demos, previews and teaser videos. It sold 350,000 copies within nine days of its launch thanks to the pre-launch coverage!

Post-Launch
This phase covers activities that you need to do when you’re ready to launch and what to do after your mobile application is approved in the app store. All the activities in the pre-launch phase have to be continued through the launch and much after if you want to keep driving greater downloads.

App Store Marketing: this one’s a less-hyped activity, but gives fantastic results. A lot of people simply browse through the app stores in categories looking for new and attractive apps. This caters to that huge audience who goes to an app store looking for new apps to maximize downloads.

Make sure you have a fantastic name for your app. It should connect with the audience instantly and should be very catchy. Similarly, your app icon should grab attention, as these are two things that people see when browsing through the app store categories.

Select your keywords wisely. App stores require you to mention keywords that you feel your customers will use to search for your application. Look at successful apps in your category and learn from them.

Your app description should catch the fancy of your customer. The first paragraph should be your selling pitch. Don’t make it too long or boring, as the online audience doesn’t have much patience to read through. Also include your keywords in the description content.

The application screenshots that you are required to upload shouldn’t be just screenshots of your application. These should be customized to attract your customer. Again, think of this as your advertisement. Here’s a great article on how to design app store screenshots that sell.

Here’s an App Store Optimization Cheat Sheet for your ready reference. (click on the image to view it in full screen)

App Review Websites: there is a large audience that reads online reviews and recommendations before downloading an app. Once your app is launched and available on the app store, draft a press release and send it to a list of app review websites. Look at generic websites (here’s a good list) and also look at app review blogs specific to your category.

If yours is a paid app, Apple gives 50 promotional codes that lets that many number of people download your application for free. Send these to the app review websites along with a link to your application, as most of them will not bother paying to download for an app. If yours is a free app, simply include a link where they can download it.

Tech Blog Redux: don’t forget the tech blogs you wrote to earlier for after you have launched your app. If they did not cover your idea or product initially, you have another reason to write to them, informing of the launch. If your app does well, that’s another reason to write to them informing of the statistics and how well it has been received in the market. Include customer testimonials and case studies.

Ratings and Reviews: you need to find ways to encourage your customers to review and rate your application. The more the ratings, the more chances of it being downloaded from the app store. One of the more obvious (albeit fantastic) ones is to build a code in your application asking your users to rate. Another great idea is to gamify the rating itself. Reward customers who rate or review your app.

All of these activities, if executed well with fantastic content and a great product, will fetch you unbelievable results.

And if you’re ready with your product idea and want it to be designed and developed, I can help you with that. Just drop me an email.

photo credit: Haags Uitburo via photopin cc

Launching A Successful Mobile Startup – 4 Quick Tips

Posted on November 19, 2012 by Rahul Varshneya

You’ve come here because an app ‘idea’ is all you have at the moment. You have a long journey waiting ahead of you and somewhere along the way, you will see the launch of your idea as a product. A product in the hands of your customers.

If that should bring you joy, then I’ve got 4 quick tips for you that will make sure that the experience you offer to your customers is superior. So superior and so fantastic that they become your brand ambassadors.

So let’s get started. Remember these important pointers that will help you launch a successful mobile startup.

Tip #1 – Finding The Right Development Partner

When you are bootstrapping to launch your venture, pool in all your funds, keep the costs low and go with an outsourced provider that understands your requirements best. The most important thing for you at this moment is to get your product in the hands of the customer.

Some of the most famous products today were outsourced in their initial days – Alibaba, Fab.com, Digg, Skype.

So how do you choose an outsourcing partner that will not rob you off your sleep?

Look for one that will get into the skin of the entrepreneur and understand the product from their perspective. They should be able to provide business and customer insights through their knowledge of working in the market with other entrepreneurs, help mold your product to carve a niche for itself in the market.

And of course, at the end of the day, they should have a proven track record of design and development with a good selection of apps as portfolio, excellent customer reviews and ratings.

Arkenea Technologies, a service partner to entrepreneurs from across the globe, is one such example that does this best (Disclosure: I’m a co-founder of the company).

Tip #2 – Build A Minimum Viable Product

You want to build an application that catches the fancy of your customers so much so that you are able to build a great business out of it. But, how do you know the market response until you’ve built the app and put it out in the market?

Invest in building a minimum viable product or a prototype. The idea is to put out something that offers the core value or your app or that solves the core problem of your customers.

The MVP could be a PowerPoint slide, a dialogue box or just a landing page. This is something that you can often build it in a day or a week.

A prototype can be an actual functioning app with the core features offered.

Share this with your network and see the response. Are people excited to use it? Do they actually feel their needs or problems are resolved by using your product? Is it easy to use?

The answers to these questions will get you far more ahead in the game than most mobile startups that do not invest in building a minimum viable product or a prototype.

Tip #3 – Marketing Before Development

One thing is to build a great product. But what good is a product that is not visible to your target audience?

Don’t make the mistake of starting to work on your marketing plan once your app is developed. Successful apps are promoted way before they even hit the app store.

Take for instance Clear. This iPhone app started to get tech blog coverage based on demos, previews and teaser videos. It sold 350,000 copies within nine days of its launch!

So what do you do?

Divide your marketing plans into pre-launch campaign, launch campaign and post-launch campaign. Create banner images that will go up on the app store app profile page. Create a microsite for your app. Use absolutely stunning screenshots of your app in the app store description. Write a fantastic app description and use the right keywords.

There’s a lot more that you need to do in terms of getting visibility for your application. And justice to that can only be done in a separate article with step by step plan for pre-launch, launch and post-launch marketing.

Here’s the Ultimate Guide On Marketing Your Mobile Startup.

Tip #4 – Plan For Monetization From Day One

The trickiest part of it all is to get a fix on the pricing of your application. Nevertheless, it is also one of the most crucial bits in the success of the app.

Here are a few monetization strategies that are popularly adopted across app categories:

Paid application: an application is available on the app store for a price and you don’t pay anything anymore for the lifetime of the application.
Free with ads: an application that is free to download and use but displays advertising in the app so that the developer can make money while users get a free experience.
Free with ads and upgrade for ad-free version: similar to the above one but with an additional option for users to remove the ads by purchasing the upgrade.
Free with in-app purchase: the app is available for free with basic functionalities and premium content is available as a purchase from within the application. This is best used in Games.

While there are many options, the way to achieve any kind of revenue growth, you require repeated transactions. Think about how you can constantly get your users to pay while they use your application. I will write a more detailed post on Monetization from the application soon, so do subscribe to stay updated.

Importantly, think about monetization right at the beginning so that the entire offering can be structured accordingly so that you get feedback on pricing as well at the prototype stage.

All of these above tips will define whether your app is successful or not. If you’ve gone through this process, I would love to hear your experience in the comments below.

If you need any help and advice on taking your mobile startup idea to launch, shoot me an email.

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