Mini-Lesson: Succeeding on the Marketplace

Frédéric HarperDeveloper Evangelist @ Microsoft Canada

@fharper | outofcomfortzone.net

Building apps is fun!

*us, coding apps with tears of joy

Let’s face it – we all get a kick around building apps!

…but here’s a little reality check.

Only 26% of all mobile apps downloaded are ever opened more than once.*

* Source: Localytics - http://www.localytics.com/blog/2011/first-impressions-matter-26-percent-of-apps-downloaded-used-just-once/

A user is willing to download your app, but if it’s not awesome on the first run, it’s basically dead to the user.

Marketing does matter!Chances are if you are watching this presentation, you are a developer/designer or you do dabble in mobile app development.

As a developer, you probably think a lot about:• The functionality of the app• The design of the app / user experience• Quality and stability of the code• etc.

What you probably don’t think about (as much) is how to make users aware that your app even exists, let alone get them excited enough to download it.

You’re gonna

love my apps

If you are charging for your app, you really should provide a trial.

Trials give the user a chance to use your app before they buy it.

“Buyer Beware” is a mode you want to avoid at all costs.

You still haven’t told me why a trial is a good thing.

Ok, I get it. I haven’t answered why trials rock yet.

As my answer, check out the data that the Windows Phone Marketplace has gathered based on trial-to-paid conversions:

Ok, great. So what’s a trial?Strategies

(how to give a user a trial

app)

Use an in-app trial mode

Create a new app as a trial

Tactics (example ways

of implementing a

trial)

Limited functionality for your app if the user is in trial mode for your app

Ad-supported if the app is in trial mode

App may be used only x number of times if the app is in trial mode

App is time-bombed to not work after y number of days after the first use

App only allows z number of transactions in trial mode

App makes use of a service you implemented on the server-side only n number of times per day

Principles of the Trial• Put serious thought into what you want to put in your

trial. • Understand the motivations that will entice your user to

want to go beyond the trial and pay for your app.

Don’t give it away

• Don’t limit the functionality of your trial app so severely that a user can’t get a good understanding of the paid app’s value

• Leave them wanting more – don’t leave them frustrated.

Make the trial

compelling

• If you want a user to pay for your app to compensate you for your effort, why not monetize your trial with ads?

• You get paid either way.Use Ads

Pricing your app is fraught with risk.

$1.99 for that? Are they crazy??? I’ll pass.

$0.99 for an app that does <your scenario here/>. Must not be very good. I’ll pass.

If you price your app too high, users will bolt.

If you price your app too low, users will bolt.

Perception is reality.

The average price of an iPhone app in Apple’s App store in

2011 was $1.61. 1

The price of an extra large coffee at Tim Horton’s is

$1.90. 2

Statistics to Use in Cocktail Party Chit Chat

Picture Source: http://euroross.blogspot.com/2006/08/workplace-evals.html

1: Source - http://www.appleinsider.com/articles/11/07/11/ios_app_store_downloads_grow_61_average_app_price_up_14.html

2: Source - http://www.huffingtonpost.ca/2011/08/29/tim-hortons-small-coffee_n_940091.html

Users will think nothing of buying a coffee in the morning, but will gnash their teeth and hesitate several times before buying an app that is roughly the same price.

Lesson: Users are skeptical and expect a lot of value in their apps.

There are four rules to pricing your app correctly.

• Understand your addressable market

• Know your competition

• Treat your app like a business

• Keep your options open

Rule #1: Understand your addressable market.

• What is the target demographic / ideal user you are aiming at with your app? Does your app solve a problem they have?

• How much buying power does your sweet spot demographic have?

• How many of these target demographic users are there overall? In specific geographic regions?

Rule #2: Know your competition.

• Can you name the top five competitors to your app?

• How does your app compare to these competitors (be honest with yourself!)? How do others (i.e.: focus groups) assess your app to the competition?

• Think into the future – can you foresee new competitors for your app? Can you anticipate how a new competitor’s app could be better than yours?

Rule #3: Treat your app like a business.

• MARKET your app. Create a marketing strategy for it and stick to it.

• Can you estimate the volume of downloads your app will get?

• Is there a seasonality to your app?

• What was the cost to build your app?

• What are the carrying costs for your app?

Rule #4: Keep your options open.• Be flexible. You need to be prepared to

change your direction in the face of competition.

• Lower the price of your app temporarily (i.e.: a sale) to generate interest.

• If your app becomes popular, you may need to hire people to keep up with updates and potential bug fixes.

• Partnerships could make your business even more successful.

The best way to get promoted is to know what app stores are looking for

Delight

UtilityFunctionalit

y

Great Apps . . .

Stand Out - Look and feel as if they are designed for and integral part of Windows Phone 7

Are Useful – providing expected feature set, presented with visual impact, that compels frequent use in a new way

Work as promised, include quality content, and are easy to use

Great Apps start with strong functionality, add device-focused utility, and finish with a delightful platform experience

FunctionalityWorks as promised, includes quality content, and is easy to use

Highly Functional apps work as promised, include quality content and are easy to use Core Functionality Content Quality Ease of Use

Outstanding performance. Quick loading. Does not hang or crash.

Content is dynamic or exceptionally well prepared. Description and metadata help sell the app

First use of the app is intuitive and reassuring. Advanced features are discoverable and understandable

UtilityIncorporates mobile features and visual impact that compel frequent use in a new way

Useful apps allow users to do new things and frequently enable creation and sharing, not just consumption of content

Feature Set Visual Impact Stickiness Originality

App takes full advantage of device features and mobile scenarios and surprises with unexpected capabilities

Great use of color, graphic placement, and visual elements

Apps that are likely to compel frequent and repeated use.

Concepts that push the boundaries for mobile apps, offering innovative features or best-in-category innovation

DelightLooks and feels like an integral part of the platform

Wow Factor Design WP7 Platform Features

Amazing app capabilities that make the user smile and inspires “Show and Tell” behavior

Makes full use of platform’s design and style guides. Uncluttered, polished clean experience

Best adoption of platform features (push notifications, Hub Integration)

Questions

20

Frédéric HarperDeveloper Evangelist @ Microsoft Canada

fredh@microsoft.com@fharper

webnotwar.caoutofcomfortzone.net

The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation.

MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

© 2011 Microsoft Corporation.

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