The mobile opportunity: what every business leader needs to know

The mobile app opportunity: what every business leader needs to know

Mobile rules the world. Mobile apps more so.

Mobiles: everywhere and more used than desktops

0

700

1400

2100

2800

2013 2014 2015 2016

In the US, 92% of 18- to 29-year-olds own a smartphone

0

450

900

1350

1800

2012 2013 2014 2015

Desktop Mobile

Mobile users have eclipsed desktop users 2.8bn - global smartphone installed base

In the US, 92% of 18- to 29-year-olds own a smartphone

Source: Comscore

Mobile now represents almost 2 out of 3 digital media minutes

Source: Comscore

Hourly spend on mobile

Japan

UK

USA

China

0 5 10 15 20

4.29

4.33

11.03

18.42

2.01

2.36

4.6

13.98

Spend, in USD, generated by each hour of app use includes mCommerce, App Store and in-app advertising

Source: AppAnnie

In some countries, mobile users spend >1 hour per month shopping

South Korea

India

Japan

Germany

UK

USA

0 25 50 75 100Shopping Finance

Average minutes per month per user

Source: AppAnnie

Mobile apps are approaching 60% of total digital time spent

0

17.5

35

52.5

70

Dec 2014 Jun 2015 Dec 2015 Jun 2016

Mobile Mobile App Desktop

Source: Comscore

Smartphone app usage time is highest among millennials

0

25

50

75

100

19-24 25-34 45-54 55-64

55.6

78.885.6

93.5

40.7

73.182.5

90.6

Average Monthly Hours per Smartphone App Visitor by Age Source: Comscore

18-44 year-old males most likely ‘heavy app downloaders’ - test-drive at least 5 new apps each month.

13-17

18-24

25-34

35-44

45-54

55-64

65+

0 35 70 105 140

Index High as Heavy App Downloaders Source: Comscore

Apps are integral to categories like travel & local

0

32.5

65

97.5

130

US UK Mexico Germany

May 2016 May 2017

70

75

80

85

90

US Mexico Germany Brazil

May 2016 May 2017

Average minutes per month per user in travel & local Percent of users who used at least one travel & local app

Source: AppAnnie

Mobile apps are re-defining the retail experience

• 71% of retail app users claim to enjoy shopping on their mobile devices.

• 57% of mobile users say they shop using mobile apps regularly (1x / week).

• 72% of mobile users claim mobile apps make shopping easier.

• 46% of users say they are more likely to shop using mobile apps than they are to shop online.

No. of mobile retail apps have on smartphone (US)

0

5.5

11

16.5

22

1 2 3 4 5 6-10 11+

Source: eMarketer

Mobile apps are re-defining the banking experience

• Mobile banking customers bring 72% more revenue than branch-only customers.

• Mobile banking customers have 2.3 product holdings compared to only 1.3 products for branch-only customers.

• “Customers with high mobile banking satisfaction are much more likely to recommend their bank to others as well as reuse a bank for another product than customers who do not use a banking app.”

Source: Forbes

For one minute of time spent on mobile web, seven minutes are spent on a mobile app.

13%

87%

Mobile app or Mobile web?

Source: Comscore

App audiences spend 20x more time on apps than mobile web visitors.

0

3

6

9

12

App Web

11.4

4

Average Monthly Unique Visitors (MM)

0

50

100

150

200

App Web

9.3

188.6

Average Monthly Minutes per Visitor

Key takeaway: building an app audience is not easy. But they are a lot more loyal than mobile web users

Source: Comscore

Top 1000 Mobile Apps vs. Top 1000 Mobile Web Properties

No access to device except geo location

Needs internet for access

Less expensive than mobile app to design & maintain

Hardware’s camera, microphone, accelerometer ,

GPS can be accessed

High level of personalisation possible

Superior user experience

More expensive than mobile web; custom coding, cross

platform

Mobile Apps offer better functionalities, user experience and engagement

Mobile Web Mobile App

Mobile apps: the challenges

1. Highest engagement apps - owned by a handful of companies with deep pockets

Facebook

FB Messenger

YouTube

Google Maps

Google Search

Google Play

Gmail

Pandora

Instagram

0 37500 75000 112500 150000

Top Mobile Apps by Unique Visitors (000)

Key Takeaway: Top apps fall into Utilities, Social. Entertainment and Retail - fulfilling some critical need of users

Source: Comscore

2. Nearly 50% of smartphone users don’t download any apps in a month, and the average user downloads two

51% 49%

0

15

30

45

60

676811

131 App2 Apps3 Apps4 Apps5-7 Apps8+ Apps Key Takeaway:

13% of smartphone owners account for more than half of all download activity in a given month.

Smartphone Users’ Number of App Downloads Per Month

Source: Comscore

3. Only a handful of apps are most often used

0

17.5

35

52.5

70

1 2 3 4 5

358

18

61

4710

18

45

Phone Tablet

Share of Individual Users’ Time Spent on Apps by Rank (in %)

Source: Comscore

So, what can app owners do to increase chances of success?

1. Build these critical factors into the app strategy

PROVIDE VALUE, RESOLVE A PAIN POINT

DELIGHTFUL USER EXPERIENCE

DESIGN TO ACCOMPLISH TASKS

1

2

3

Provide a unique value - a reason to use the app regularly. It could be solving a problem, offering entertainment, utility value etc.

Your app should be a delight to use - both from a design and functionality point of view. Personalise customer experience when possible

Help users accomplish tasks fast, the easy way

1. Build these critical factors into the app strategy

KNOW THY CONSUMER

USE ANALYTICS WISELY

ENCOURAGE REPEAT USAGE

4

5

6

A deep understanding of consumer behaviour towards category & app usage is a must. E.g in data-poor countries, app size & phone capacity is a big deterrent

Adopt a data first mental model that is user centric more than business centric. Track app usage data to constantly improve

Use a combination of app features and push notifications to drive repeat usage

2. Work with experienced technology partners who add value

PRODUCT MINDSET

USER EXPERIENCE ARCHITECTS

SOFTWARE & DEVELOPMENT EXPERIENCE

Work with team who have experience & skill sets in developing beautiful and successful digital products

Partner with a team which has user experience architects driving the digital product design

A digital product is only as good as the experience and that can be delivered by engineers who know how to get things done.

How To Choose the Perfect Technology Partner

3. Follow rigour in the app development process

1 2 3 4 5 6 7

Discovery: user insights

Storyboarding: app map

UX Prototyping: the mockup Extreme Engineering: coding Acceptance Testing

UI Design: look & feel Functional Testing

Image: Wired

What is it?

Messenger-like interfaces powered either by bots, humans or 'machine augmented human intelligence', meant to simplify predefined task(s)

Why popular?

Seen as easy and fun way to help customers achieve an outcome.

Pros:

Works well for most transactional interactions – ordering flowers, booking utility services, news

Cons:

Little scope to create a brand experience or immersive app usage. Not suitable for some categories

Chatbots

Key Trends: chatbots

• Siri is the first chatbot most people became familiar with. Apple created an easy to use chatbot to answer user questions

• Alexa is an intelligent personal assistant developed by Amazon, made popular by the Amazon Echo, that allows users to command many aspects of their home with the ease of simply saying “Alexa,” followed by the command.

• Google’s Allo has smart reply technology that learns the style of the user to formulate likely responses to friends to save time for the user.

Image: RoboTech Labs

What is it?

Inter-networking of physical devices which enable them to collect and exchange data.

Why popular?

They bridge the gap between physical and digital world; improve productivity

Use cases:

Smart homes, wearables, connected cars, smart retail healthcare and more

Internet of Things

Nest allows users to control their home thermostat and other devices from anywhere in the house or country

Amcrest WiFi Smart Plug give your wall outlets WiFi Connectivity scheduled tasks and shutdown timer utilities

Yale, the world’s largest lock manufacturer offers products that let you lock and unlock your home remotely. And it works with Nest.

ShotTracker is a system that uses wearable technology to track basketball team’s shooting success, giving insights into player strengths and areas for improvement

Internet of Things

What is it? inter-networking of physical devices which enable them to collect and exchange data.

Why popular? Aside from novelty, virtual reality has the potential to create immersive brand experiences.

Use cases: gaming, virtual tours, product demos, immersive brand experiences

Virtual Reality

What is it? a technology that superimposes a computer-generated image on a user's view of the real world, thus providing a composite view.

The next wave: the next version of Apple’s iOS 11 will make it easier for developers to create augmented reality experiences thanks to ARKit - a new frameworkUse cases: gaming,

utilities, product demos, brand experience, shopping

Augmented Reality

AR in the real world

Lowes: Guides Customers to In-Store Items via Augmented Reality

Location based services

• Snapchat is a perfect example of and LBS, as they have “Snapchat Stories” where users at the same location can add videos to a nationwide story for others to view. They also recently added “Maps” where users can see the locations of their friends.

• Tinder is a great example of an app that thrives on LBS. It allows users to match with each other as long as they are close enough based off location.

• Uber, a giant in the App industry uses LBS, allowing users to call Uber to their location for easy ride-sharing.

Voice can replace typing

Google Assistant: Nearly 70% of Requests are Natural or Conversational Language

- Mary Meeker Report, 2017

The Next Billion Mobile Users Will Rely on Video and Voice

- WSJ

Taking Pictures Can Replace Typing

Google Lens Will Provide Greater Context to Images

- Mary Meeker Report, 2017

In sum…

• Mobile apps are a critical part of business success for several categories

• A technology partner who understands the business and crafts an optimal strategy & design solution is a critical factor for success

• Seek to provide value and delightful customer experience

• Embrace emerging technologies to add value

Some best in class mobile apps

McDeliveryIntuitive navigation, joyful interactions and improved visual appeal

Key areas of the app re-design: 1. Making discovery easy 2. Promote decision making 3. Delightful interactions

38© Robosoft Technologies 1996-2016 - Confidential Document

25% reduction in support tickets with new apps

2x increase in mobile orders in a span of 3 months

More users customising their meals on the mobile app.

Around 80% of the users have rated the McDelivery app experience as good or loved.

McDelivery: results

DubberA simple but smart call recording app

A cloud-based call recording and audio asset management service on iOS and Android.

A ‘game-changer’ app in client’s words.

An all-in-one, many-in-one news app

One of the first news apps in India to create a native mobile app for iOS and has grown in content across platforms over the years.

This iPad app for a leading US airline had a host of ground breaking features: a unique Glass Bottom which allowed the user to see an aerial view of the map as from the air. The development of this app required that we integrate geo tagging in addition to developing PDF readers for the in-flight magazine within the app. Users can customize their profile, view transactions and frequent flyer account on the go

A LEADING US AIRLINE

This app, nominated at the prestigious BAFTA Awards, is an exercise buddy and coach in your living room. It features an avatar which demonstrates the exercise routine. At the end of the session the app displays fitness scores and levels of progress. These points are graphed over time and a tailor made exercise regimen is set to suit your needs.

Activity Friends Leader board Profile

A MAJOR US FOOTWEAR & APPAREL COMPANY

About Robosoft

1500+ apps developed

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300 million+ downloads

3

200+ apps featured in Apple’s ‘New & Noteworthy’ section

Several prestigious global awards

A talented team of 600+ across six offices

1 4 5 6

20 years of software development experience

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