The rumour is true. When was the last time you got really excited watching a smartphone launch? I bet it was a long time ago. Even the once highly sought after leaks are all too lacklustre these days. I love to be on Twitter during a major launch event and watch some really funny mock-tweets. It has got to a point where people don’t even know the difference. They just love Apple and buy! see one of the Jimmy Kimmel creations below!
In all seriousness though, we all know that smartphones have transformed the world. Growth in smartphone base, number of apps, and the amount time people spend on the apps is just staggering. This is true despite seeming lack of innovation. I highly recommend reading this blog post. It highlights that Apple & Google are now unassailable until the next S curve is here. AR, VR, AI, voice and chatbot may all turn out to be a thing, but that may not affect the S Curve of the Smartphone. In fact, as the unit growth in smartphone continues, Apple and Google will focus more on improving software, experience and the ecosystem. The massively increased share of revenue via app stores, is certainly a leading indicator of this shift. The reason I say the slow innovation is a good thing is because I believe it is an opportunity for Enterprises. They can focus now more than ever to catch-up on the incredibly challenging task of gaining, keeping and transacting with customers on Mobile. In fact, I strongly believe that many enterprises need to re-think their very perspectives on this.
We need to stop thinking of Mobile as “an interface” and think of it as “the interface” and invest sufficiently, where it matters
Imagine, a fictitious sandwich company that wants to leverage mobile. Sounds like a great idea. You can build an app to enable ordering, delivery, streamline payments, click-to-buy and a host of other things. Alright, assume you have a great app and a fantastic user experience but think about it for a second. How many of us will care to download the Sandwich company app, and even if we did, how many will use it or keep it without deleting? With almost zero footprint of user’s attention, it is incredibly hard. Even more so for a sandwich company! Business, technology and operational complexity even in a sandwich business is significant, and it would be foolish to suggest that there is one strategy. However I believe, as enterprises strive to leverage mobile they need to consider the following 3 key dimensions. Attention, interaction and transaction. If we consider economics of an app based commerce, we can assume for most businesses it means lower costs, increased margins and potentially great 1-1 customer experience. This is very foundation of e-commerce, so nothing new here; but apart from having a great product, I believe we need to incentivise customers along these dimensions.
Unless you are Snapchat and you can make a rainbow jump out of people’s mouth, there needs to be a compelling incentive for customers to even notice your app. Some offers are simply not good enough – for instance “a chance to win X” or “a chance to win trip to Y”. We can do better! something tangible, of real benefit to the customer.
Best fulfilled in context and instantly. For the sandwich company for example – 40% off your first purchase, or £5 credit on first usage. Nothing new here, most mobile native start-ups do this, so I wouldn’t dwell on it too much.
How many times a day do you expect people to open the sandwich app? In order to continue to occupy people’s mind-space, we need to incentivise the customer regularly for visiting the app. I understand that this is easier said than done. Obviously some app categories don’t need this kind of interaction incentive. For instance, great content e.g. Netflix, ultimate productivity e.g. Dropbox, Social e.g. Instagram, to name a few. So, interaction incentive is when you give something to the user for coming back to the app. Some games do this really well – every time you stop playing but come back to the game after some time, you get free virtual coins. Depending on the nature of business you can decide the frequency of your incentive. For instance, the sandwich company could do one of their best deals exclusively for app users every 2 weeks. Obviously all needs to make commercial sense – generally though customer retention cost is less than acquisition cost and there can always be limited number of deals. Oh and there is word-of-mouth! invite a friend and both get credit. Remember Uber? Virulence is an important feature that needs to be built in to the app. It is expensive though! You could build social invites too. We all hate random invitations on Facebook, something to keep in mind!
This is the holy grail. Assume that customer downloads the app, interacts with it regularly to redeem your generous incentives. How do you ensure they transact? Well firstly, the sandwich better be good, the ordering, payment, click-to-collect all needs to “just work”. That often is not enough, we still need to incentivise. You might think we’d be out of business after giving so much away in offers. However, with added volume of transactions, you will realise that it almost always makes commercial sense. Otherwise Starbucks wouldn’t do it – collecting stars on the app whilst having the ability to cut the queue is simply fantastic. So, how about an app exclusive loyalty program for our sandwich company? There can be a mix of options – coupons, points, virtual currency, or simply cashback. It is needless to say that apart from offering direct incentives, your app can just create magic through experience that cuts the time and effort it takes for customers to transact or reduces anxiety associated with the transaction. Invisible payments (Uber), cutting the queue (Starbucks), live waiting times (Citymapper), real time tracking (Dominos) are all fantastic examples.
To sum up, I believe that whilst its not necessary to pester the users with deals & offers enterprises must make explicit effort to address the attention, interaction and transaction barriers when they think about their adoption and engagement strategy. While we hit the maturity curve of smartphone product lifecycle, it is now more important than ever for enterprises to catch-up.
A small disclaimer – I realise any generalising is dangerous & this may or may not apply for everyone. Thanks a lot for reading, and I look forward to hearing your thoughts in the comments section.