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Mobile apps are dead; long live the app-enabled consumer service

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Apple’s announcement this week grabbed plenty of headlines. A couple of new phones, a watch, and a payment service…oh, and something about a new album from U2.

Although exciting for the Apple fan boys in our office, most of Apple’s new offerings aren’t amazing. We’ve already seen larger phones, smart watches, and the ability to pay via a smartphone. The main difference is the attention that the products have gained, and the reach that Apple has not only with consumers but also with major organisations (e.g.: Visa, Amex, MasterCard). Is this the catalyst that will mean wearables hit the mainstream?

However, it’s not just the new shiny objects that really matter, there are a lot of things under the hood that will make a massive difference to the world of mobile in the coming months.

In fact, Apple’s announcements a few months ago were perhaps more critical. HomeKit, HealthKit and add to that Apple Pay (as well as Google’s equivalents) combined with their phones and watch mean that we’re all about to see a new raft of innovation around mobile.

It’s these additions that Australian companies should pay attention to.

Over the last few years we’ve already seen a bunch of innovation in mobile, but most of it has centred around the smartphone. Essentially providing apps that people can use anywhere, but really only dipping into information and functionality. The recent additions by Apple and Google will extend the innovation beyond the smartphone, and out to smart devices that we have in the home, business, or even what we wear.

Why does this matter to Australian business? Think of what services will now be possible in the health industry, for utilities, the media, property, retail, and the Government, etc.

Health insurance companies are already using technology to offer discounts the more active people are; hit your daily step goal, and save money on your health cover. Energy companies are also offering flexible pricing for customers using smart meters (already installed in Victoria).

This is just the tip of the iceberg. With smart devices about to boom, imagine the other innovations that will be enabled.

Australian organisations should evaluate what the boom in the Internet of Things means to their business. What will this technology mean to their existing service, or are their new services they can offer? Will it mean new players can enter their market and flip their business model on their head (look at what Uber has done to the taxi industry recently)?

It’s now not only important that an organisation has a mobile strategy; they need a broader strategy that looks at how technology can enable, extend, improve, or add new services to their organisation. If they’re not, their competitors are.

Mobile apps are dead. Long live the app-enabled consumer service.

Posted by adapptadmin in News, Observations

Branded Apps vs Brand Advertising. How being useful gets consumers’ attention too.

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Branded apps must be useful

Just like Fleetwood Mac, the Internet wants to be with you everywhere. On the train, in the café, even tucked up in bed on a Sunday morning, nursing a hangover, that little terrier we call the Internet runs in the room, licks your face and begs you to share your condition with friends and strangers alike.

It never used to be so clingy. We would ‘log-on’ and more importantly, ‘log-off’. There was, after all, a time and a place. Not anymore, no sir-e. Thanks to our mobiles the majority of Australians now wake up to the Internet, commute with the Internet, work on the Internet and ‘relax’ with the Internet.

By 2015 Telsyte predicts 87 percent of Australians (over 16 years old) will own a smart phone. So just about every adult will be online for 100 percent of their waking life: reading, playing, sharing and consuming company services via their mobile.

Even now, in 2013, the phone is our Internet device of choice, but ask any of Australia’s best digital marketing planners and they’ll tell you their clients still fail to invest the appropriate time, planning and budget towards ‘mobile’.

We’ve seen this kind of lag between digital opportunity and digital spend before. In Australia at least, we didn’t see an appropriate media investment in Google Adwords until 2008, a full eight years after Google launched the service. Similarly we’re now seeing investment in social media gaining favour, some three years after Facebook became Australia’s number one media destination.

But what’s causing the current lag in mobile app investment; is it an Australian thing, are we just too laid back or do we consciously ignore the data? Possibly, but a more likely cause is a simple lack of ideas, caused in part by a lack of understanding of what’s possible.

To understand what’s possible businesses need to understand the difference between branded apps and brand advertising. The best branded apps do not belong to a campaign, they are not simply another channel through which to communicate the current brand message or product promotion. They are a utility in their own right; something useful that earns the attention of consumers. This type of app should be the obvious starting point for marketing and operations managers, take an existing business process or service and mobilise it through an app, thus delivering an improved customer experience.

But the more exciting opportunity lies in using mobile apps to provide brand new services that only the mobile Internet can deliver. Take a look outside of Australia and it’s not hard to find examples of disruptive new mobile services. Walgreens, the US based pharmacy chain has developed an app driven service allowing customers to ‘scan and refill’ their own prescriptions, an innovative use of mobile technology that provides a distinct point of differentiation over their competitors.

Australian businesses may have been a little slow out of the mobile blocks but 2013 will see the ideas (and investment) begin to flow. Financial services, health, telecommunications, education and real estate will likely lead the charge. Many of the apps will continue to mobilise existing business services but a few innovative companies will seize the opportunity to do something different.

As with Walgreens, it will be the brave first movers in Australia, who’ll reap the rewards through app differentiation. By considering ‘mobile’ to be an opportunity to deliver useful new services (and not just another channel to market) these disruptive Australian companies will be rewarded with publicity for their innovation, earn referral from their existing customers and increase profitability through more efficient service delivery.

 

Australian Smart Device Saturation Point Is Closer Than We Thought

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Next time you’re in a café, airport departure lounge, or any other place in Australia where phone/tablet usage is acceptably explicit, take the time to do a quick count of those using smart devices compared to those folk texting away on their ‘appless’ mobile.

And the result? Well according to mobile analytics company Flurry, your ‘café survey’ should show almost 8 out of 10 people using a smart device. Flurry’s most recent mobile usage report finds 79% of Australians aged 15-64 years actively use an iOS or Android capable device.  It’s an impressive figure (particularly given its omission of other operating systems such as Windows Phone and Blackberry) and places Australia 4th in the league of smart device penetration, beating technology loving nations such as the US (78%), South Korea (76%) and the UK (74%).

Chart showing Smart Device Penetration by Country

This rate of growth is making a mockery of respected industry forecasts. It wasn’t supposed to happen this fast. According to Flurry, the growth of iOS and Android is happening 3X quicker than our recent uptake of social media and 10X more rapid than the 1980s uptake of personal computing. And very soon the vast majority of these smart devices will be downloading and pushing data at 4G speeds transforming the experience from super convenient alternative to our undisputed Internet of choice.

Make no mistake, this hyper-connected mobile audience presents the greatest opportunity for industry since the creation of the worldwide web. And as per the desktop web, the service industries have been first out of the blocks: Banking, Insurance, Telecommunications, Travel, Government and Health were first to mobile optimise web sites and build self service apps. After all 100% of Australians connected to a mobile Internet means 100% of Australians capable of serving themselves, anytime and anywhere, massively reducing the all important cost-to-serve.

But mobilising pre-existing company services is just the beginning; think of it as the necessary housekeeping before moving onto the important stuff. Creating entirely new mobile services for existing customers and the wider market is where the real opportunity lies. The banks are a case in point, after taking the standard online banking experience to the phone, the banks quickly turned their thoughts to the creation of new services such as mobile-to-mobile payment.  The result has been a race to market between ANZ’s goMoney and CBA’s Kaching, with both banks actively campaigning the new services.

The health insurance industry has also been quick to respond. The first apps in this sector focused on mobilising existing services such as online claiming and account management but quickly progressed to entirely new applications like Bupa’s FoodSwitch app, a food nutrition aid and HBF’s ‘Pocket Health’ app*, a personal health record to help members document their family health. These apps serve not only as a retention tool to existing health insurance members but also provide compelling reasons to recommend the brand to others.

And so as Australia’s big brands move from ‘mobile housekeeping’ to ‘mobile innovation’, so they will be rewarded with unique opportunities to disrupt the market and differentiate through utility. It has already begun, even the slowest moving organisations are restructuring for disruption, creating internal innovation groups charged with harnessing the power of ‘Big Data‘ to provide highly sticky applications that customers simply cannot give-up. So it should come as no surprise, that with 100% smartphone saturation fast approaching, many of these innovation groups are taking a ‘mobile first’ approach.

 

Editor’s note: (16/10/2012) The title of this article has been changed from ‘Smartphone’ to ‘Smart Device’ to more explicitly show the inclusion of tablets in the referenced research data.

[*Disclosure: HBF is an Adapptor client]

Posted by adapptor in Mobile, News, Observations, Opinion | Tags: , ,

2012 – The year Australian mobile apps get down to business

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According to research house Flurry, Australians downloaded 28 million apps last week. That’s 46 apps a second. Not too shabby.

But it’s far from topping out there. Despite this being an all time record, no doubt boosted by the Christmas rush, Flurry predicts that 28 million downloads per week will soon become the norm as the addressable smart-phone market continues to grow. And grow it most definitely will, the Telsyte/AIMIA’s Digital Nation Report forecasts 87% of Australians will own a smart phone by 2015, up from 45% ownership in 2011.

Couple this growth in market size with the rapid shift in Internet consumption habits (we now spend more time using apps than the desktop and mobile web put together) and what should now be obvious is that apps are here to stay, they won’t be superseded by some miraculous conception of superfast, easy to use mobile websites. Sure the mobile web will continue to grow but Tim Chang’s ‘Appification of Everything‘ is certainly upon us and the question for big business is no longer whether to invest in apps but what type of app to invest in, what service to provide or process to improve.

This will be the year of service delivery apps as the enterprise starts to realise the potential of business process improvement through mobilisation. For business the fun but ‘throw away’ apps (think branded games and novelty utilities) will be replaced with business critical applications that enable the delivery of new and improved services to customers, members and employees wherever they are.

It’s already beginning, insurance companies are making it easy for members to claim from their phone, tourism authorities are helping tourists to roam free of charges and banks are letting customers shop without cash or cards. These aren’t apps for the sake of apps, once distributed they can’t be thrown away or left unsupported; like the business itself they must evolve, improve and stay relevant. These apps provide valuable services, improve NPS and in some instances single-handedly sway a joining or purchasing decision.

As this realisation takes hold, 2012 will see Australian companies embrace mobile apps to deliver and socialise company services, gather business intelligence data, deliver product recommendations and serve customers in places (and at times) that were previously unserviceable. It will be the year that Australian apps get down to business.

 

Posted by adapptor in Mobile, Observations, Opinion, Recommendations

A ‘NUI’ Generation of Users

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Natural User Interface - Synergy Kinect App

Take note digital planners and designers, we’re undergoing the greatest revolution in user interface design since Microsoft and Apple thrust their point and click interfaces on us in the mid 1990s. The 2010s will see a shift away from mouse controlled Graphical User Interfaces (GUIs) to Natural User Interfaces (NUIs) as users expect gesture, voice and touch in their everyday applications.

The NUI generation (born 2003 onwards) already demand a more natural interface having known nothing but touch screens and waving their arms in front on an XBox Kinect, but given the simplicity of NUI control it will soon find favour amongst older folks and everyone else in between.

Let’s face it, the mouse was always a bit fiddly and was bound for the bottom drawer eventually but it is the speed of change that’s caught many interface designers off guard. In just 12 months we have seen smart phones, tablets and game designers make touch controls expected, the next 24 months will see touch all but replace the mouse, aided by intuitive voice and gesture based navigation. This change will be driven largely by computer games but also by other application designers looking for more convenient, user centred, ways to engage with their content.

By way of example we recently launched an application with 303 (for West Australian energy retailer Synergy) that was aimed squarely at kids aged 7 and up. It was an application that sought to educate young Australians about energy consumption and needed to engage kids, who have little time for written instruction. In short, it had to be natural.

Taking some ideas from game designers we developed an Xbox Kinect style game whereby kids could simply step up to a mat and start running to power an application that would teach them valuable lessons about energy consumption. By making it a movement controlled game we created an interface that was not only natural to our target audience but also one which engaged them to participate.

The results had to be seen to be believed. Kids, as if at a theme park, queued to participate and parents stood in the wings soaking up the energy conservation message. Only by exerting physical effort themselves could children truly experience the the effort required to produce energy and in turn how we should be more careful with using it unnecessarily. A traditional web based GUI just wouldn’t have worked.

As developers we may get caught up in the intricacies of the technology at play, using Kinect and complex code to convert body movement to indicative energy output, but the success of this digital communication came down to a simple to use, natural interface that suited the target audience. No instructions required, no mouse, no keyboard, no information architecture, just run….and learn.

 

 

 

 

 

 

 

Posted by adapptor in Observations, Opinion, Projects

World Wide What?

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mobile app vs web consumption

The folks over at Flurry know how to fish and the tech blogs (including us) happily snapped at the bait; a plump piece of wriggling research that tells a story of mobile apps leaving the web in its world wide wake.

Measured in minutes per day of consumption, the figures are certainly impressive, at least to the founder of an apps development company. Mobile apps are getting more share of attention than the web but read on and you’ll find that 47% of this time is spent playing games, not exactly apples with apples because unless you’re engaged in a ding-dong battle of Words With Friends, you’re rarely using the Internet to power your app driven gaming experience.

Having said all of that, one can’t help think that the tipping point for mobile apps as the preferred method of internet consumption (not simply media consumption) isn’t that far away, even without Angry Birds et al skewing the results. Playing mobile games is patterning a certain type of behaviour after all and in this case the behaviour is an ever increasing reliance on apps for all our media needs, online or otherwise.

So the web isn’t dead just yet, but don’t forget what WWW stands for, as it’s likely to pop-up in quiz nights of the future and you could be the nerd at the table who knows the answer to the “World Wide What?” question.

Posted by marc in Mobile, News, Observations

Sunday Mornings

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I was born in 1974 a year when inflation was spiralling out of control, the IRA were bringing old school terror to the UK and the average Sunday morning still involved dads burying their heads in “the papers” and entering a strange hypnotic state that barred them from playing football in the garden, cleaning the gutters or doing anything that involved getting up. If you were a brand, it was the perfect time and place to advertise.

Thirty-six years have passed and very little has changed although some might argue that the IRA have been well and truly outclassed by Al-Qaeda. Sunday is still bloody Sunday as far as the kids are concerned but now mum and dad won’t come out to play because they are hypnotised by their iPads, absorbed by a blend of social connectivity, news and games, anything to avoid thinking about the Monday ahead.

If you’re a brand marketer now, it’s still the perfect time and place to advertise but

Posted by adapptor in Observations

iPads are like newborn babies

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I wasn’t particularly taken aback to read over 250,000 iPads had been sold in Australia. It just doesn’t sound like a very big number. But when you dig a little deeper it really is quite an impressive statistic. The iPad went on sale back at the end of May this year, which means about 50,000 units are being shifted a month and we haven’t had the Christmas rush yet.

At the last count (that I could find) there were approx 8.1 million “households” in this country which means about 1 in 32 homes now have an iPad. And just like a newborn baby, you can’t avoid everyone in the family wanting to take it off your hands and pass it round a room.

All this considered, it’s now sounding like a substantial audience that brands should be spending time thinking about. Throw in the fact that, to date, most iPads have ended up in the hands of early adopters (think influencers), business executives (think decision makers) and high income earners (think money to burn), getting the brand into the hands of 250,000 families with the aforementioned characteristics should most definitely be sparking interest in your marketing department. If it’s not then go and give them a kick from me will you?

Posted by adapptor in Observations