Mobile Messaging & Mobile Web before an App

Everyday, we at QWASI are asked by many leading brands where mobile is moving and how they should embrace mobile marketing and mobile communication. We always have to ask a simple question: What are you doing today to reach today’s mobile consumer?

The first reaction is either something like this: “Well, we’re starting to think about an iPhone App and maybe a Blackberry or Android App by the end of the year”… OR they simple respond “We have an iPhone App and we think it’s great.” It’s almost so predictable that its easy to write it down on a piece of paper before asking the question and then passing across the table and asking how close you were to guessing their response.

Here’s the problem with having just an App: it should never be the “your mobile strategy” or solution to having a mobile channel. Why? It’s simple: Mobile App usage trails mobile web and mobile messaging.

TEXT MESSAGING REIGNS SUPREME
The most popular activity for the average cell phone user is Text Messaging. It’s then followed by mobile web access and then Apps. Text Messaging reigns supreme because of two simple forces: reach and usage.

Nearly every mobile phone in the U.S. is text messaging enable. To send or receive a text message, you do not need a smart phone (Blackberry, iPhone or Android device). In the US, only 18% of all phones are smartphones. Within the next 2-3 years, Juniper Research predicts that smartphone usage worldwide will only account for just 23 percent of all new handsets sold. That means that main population in a few years will still not have enhanced capabilities of using Apps.

MULTIPLE PLATFORMS: IPHONE, BLACKBERRY, ANDROID (and SEVERAL OTHERS)
When a company considers launching an App, they typically go right to the iPhone. A recent Nielsen survey found that Apple dominates app downloads with a 25 percent market share. However, the iPhone only represents 4 percent of the entire mobile market. And in the US, it’s currently still only available on AT&T network. If you’re looking to launch an App, consider this - Nielsen has identified more than 10 major app stores for your App. That means developing across several platforms that differ in the use of libraries, code and submissions (to get the application approved and added to the app store).

USAGE
We return back to text messaging for ease of development and uniform customer experience because it is used more than Apps. According to Pinch Media, the vast majority of apps downloaded from the App Store are in use by less than 5% of users after one month has passed since it was downloaded. Just 20% of users even return to run a free application again the day after it’s downloaded. As time goes on, that decline continues, eventually settling below five percent at the one month elapsed mark and nearing zero after three months. According to Strategy Analytics (October 2009) only four to six mobile apps are used on a consistent basis.

Furthermore, if you create an iPhone App, you will be one of over 180,000 Apps available in the Apple App Store (as of March 2010). It’s such a competitive share of mindshare and space is limited on the phone’s screen. The iPhone for example offers 10 pages of Apps, but many people never make it past their third screen to even get to your app if it’s not up front. I would argue that we’ve hit the saturation point for most users. Why? Because of a simple litmus test called utility. If your App provides utlity to the end user, they will continue to use it to connect to people, places, information and entertainment. An App with a few stars or a low rating really does indicate how most end users will think and use the app.

SIMPLE IS OFTEN BEST
Most companies dismiss SMS or Text Messaging for two reasons: simplicity and cost. Let’s examine each.

First, a text message is limited to 160 characters. Every space counts. Creative wording is often required to communicate the message. However, it can also include a phone number or link to a mobile website or information page optimized for mobile phones. In it’s simplicity lies it’s strength.

• Delivered – each SMS using carrier-grade messaging is delivered

• Read – almost 95% or all text messages are read by end users

• Direct – often provides a preview w/o reading the entire message

• Concise – read and take action in seconds

• Easy-to-Read – most of the message fits on the screen

• Link-Enabled - ability to point to a Mobile Website

• Call-Enabled - include a phone number to call

More reasons why simple is often best. A single text message can easily be forwarded to a friend or posted to a social network. SMS can be interactive providing two-way messaging features included information on demand, mobile coupons, mobile ticketing, surveys, voting and polling. Finally, with a list of opt-in users, messaging can be sent out to users via blasts, notifications and alerts.

The other hesitancy by brands in using text messaging for marketing is the cost factor of an SMS. Companies often are quick to sign off on large budgets to build mobile Apps, yet never conduct a full cost analysis of SMS and Text Messaging to evaluate how it scales over a longer period of time while achieving greater usage and take up. Sure, a text message can cost a few pennies per message, however, during an ROI analysis, it’s easy to see how it pays itself back with the value it provides customers to connect with the Brand in building some of the strongest one-to-one relationships possible.

MOBILE METHODOLOGY (see the QWASI Mobile Methodology)
Don’t be so quick to rule out Text Message Marketing (SMS) or the Mobile Web.

Build out your mobile site. Offer Mobile Messaging. Then build specialty apps that provide usefulness for your customer. And don’t neglect voice as part of your mobile strategy.

Let QWASI help you build out your mobile channel today.

About the Author:
David Geipel is COO & Founder of QWASI (http://www.qwasi.com). You can reach him at dgeipel at qwasi.com or chat with him - text DAVE to 79274 (QWASI).

April 5, 2010 in Blog   |   1 Comment

Apple and the new frontier of iCommerce

How Apple created and continues to innovate the digital marketplace of tomorrow.

COMMENTARY: I loved my Zune 30 – a music device introduced by Microsoft in 2006. It was a great MP3 player. The first generation Zune was a 30GB model in black. I loved it so much that I ended up buying one for my wife, in white, the next year. After purchasing my Zune, I then proceeded to spend just as much on accessorizing it as I did on the device itself! As we all know, accessories alone- from gels to screen protectors- are multi-billion-dollar industries. From there, the focus shifts to power sources, because of course you need a power cord for your computer (USB) and for your car so you don’t run out of juice. Speaking of your car – where you listen to your tunes- you’ll need an adapter for the audio system (unless your car has an accessory jack and AUX input, in which case you will need yet another cord). And finally, you’ll want to be able to listen to your tunes in your office or around the house. You don’t want to be rude and walk around the house jamming to the latest download with your headphones. However, if you’re a teen, then not having a pair of headphone in your ears probably never occurred to you.

Aside from all of these “additions” that I did not consider prior to my purchase, I could not have been happier with my Zune. I liked the interface, software and storage it offered, which is appropriate because at the time I was considered a full-fledged PC guy. Until one day, when my Zune took a swim in the reservoir of my coffee pot. It was all downhill from there.

Today, as I type this on my silver Macbook Pro, I should clarify that my “full conversion” to a MAC Guy began with my iPhone. While deciding whether or not to replace my beloved Zune, I was enticed to consider the iPod. I ended up with an iPhone instead, converted to iTunes (proprietary formats and interface) and eventually purchased said Macbook. See, I told you it was a slippery slope.

I had fought getting a Mac for years. I use my laptop for more than 12 hours a day, causing me to chew through one a year, regardless of brand or price range. My experience with the longevity of my iPhone is what ultimately led me to consider the Macbook, and I will never look back. Call this my brief testimonial for Apple; a simple story of how one PC Guy became a Mac Guy and a diehard Apple fan. I attribute 80% of my Apple conversion to the iPhone. Without my iPhone, I would still not understand why everyone has become so gaga over Apple. Now, anything Apple releases, I have to contemplate adding it to my wish list, considering how it will make my work and play easier and more enjoyable.

Many ask me if I like my iTunes software compared to Zune. The answer is a resounding “NO.” While Microsoft seems to have every step of the process ironed out and has proved to be successful, iTunes remains difficult for first-timers to navigate through even simple tasks. However, once you master iTunes on your computer or iPhone, making a purchase is simple and repeat purchases are even easier with a click of a button. In my opinion, Apple still needs to fix some snags before iTunes grows into an even larger online marketplace.

So how does Apple continue to grow despite a weak application called iTunes? Simple: sexy devices that you can’t put down and great marketing. They are smooth, slick, and intuitive, impressive to almost everyone. And they are driving commerce. The iTunes software can only improve, and I have confidence that as it evolves with new downloads and digital content, purchases will increase, as will Apple’s dominance as a retailer.

Let’s take a look at a brief history on how Apple (and the iPod) revolutionized digital purchases.

The iPod came on the scene in 2001 (and was met with great skepticism regarding Apple and their business model). By 2009, the skeptics long since silenced, iPod and iTunes sales added more than $12 Billion to Apple’s revenue. What Apple accomplished helped to change the way music is bought and sold. Remember the days you could go to the mall and buy the latest cassette tape and then CD from a “record store” such as Coconuts, Strawberries, Planet Music or Tower Records? And while you can still find a few F.Y.E and Suncoast stores at some malls, I wonder for how long. With the introduction of the iPhone, physical media has been dealt the final blow and is becoming obsolete. Apple developed an empire that created a new segment of the market: highly interactive phones that included touch screens and mobile marketplaces for Music, Books and Apps.

In September 2009, Apple announced that it has sold more than 30,000,000 iPhones. Over 2 billion app downloads, with 100 million accounts with credit cards and 8.5 billion songs sold. Apple currently has 73.8 percent of the Music Device market (followed by 18 percent held by “other,” SanDisk with around 7.2 percent and Microsoft about 1.1 percent share). Apple has also shown, with its own data, that 50 percent of new iPod sales are to new customers (those who haven’t previously owned one) and the total number of iPods sold is closing in on 225 million units.

So how does this story about my Zune and iPhone continue as we begin this new decade?

With the launch date of the Apple iPad upon us, the same company that dominates the music device category is looking to do the same with tablet or slate devices. Their digital sales will continue to propel their business, as others like Amazon and Microsoft (don’t count them out….yet) work to overthrow the Apple empire. The battle is really not about music, books or movies. For Apple, it’s all about iCommerce.

So what’s on the horizon? High definition investments in each home have significantly driven the bottom line for companies like Best Buy and WalMart. And it hasn’t escaped the attention of those who deliver content to your home, such as cable companies and even Verizon (with their FIOS service).

Xfinity (Comcast) is working on new technology to further exploit their relationships with subscribers (a brilliant subscription model). They are actively working on new ways to provide an even better experience for those people adding new devices to their televisions, ranging from networked Blu-ray players to computers running Windows 7 Media Center equipped with a cable card. Verizon’s FIOS now sports Facebook and Twitter integrated into their service so you can multi-task and tweet or post a status update. And don’t forget leveraging TV content through online and device distribution.

A recent DirectTV commercial that showed a bank hold-up with a guy on the floor using his phone to tell his TV to record a show is a great example of the power of mobile access. That’s one example of building a ubiquitous network. What about activating each device the cable subscriber uses in and outside the home from the computer to mobile phone to their new iPad? Now that’s bringing it all together. It’s quickly moving into the “cloud” and a device like the iPad is helping to make that push and thrust for the industry with Touch, Social Connections, Location-based, Tablet, Wireless and Commerce.

The battle now is brewing over devices and distribution of all kinds from advertising to content. And yes, including video – even your TV will soon reclaim center stage appearances again as it becomes more interactive and connected. You will see that the new frontier will be centered around connected devices. And who can we count on to be right in the middle of the commerce war? Why Apple, of course.

And may the best one win – the consumer!

THIS ARTICLE WAS PUBLISHED IN MOBILE MARKETER. Read it here.

About the Author:
David Geipel is COO & Founder of QWASI (http://www.qwasi.com). You can reach him at dgeipel at qwasi.com or chat with him - text DAVE to 79274 (QWASI).

NOTE: This is not an endorsement for Apple. We consider them to be the leading innovator today for consumer adoption of interactive commerce. The iPad debuts at Apple stores on April 3, 2010. Start standing in line now.

April 1, 2010 in Blog   |   No Comments

The Apple iPad - the new "tablet computer" killer

Apple’s new device is called the iPad.

According to Apple’s announcement this morning from Steve Jobs, Apple currently has the phone market covered. They have the notebook category. But it needed to find something “in between” - and therefore, a new category of devices they have named their iPad.

The new Apple iPad supports: Browsing the web. Doing email. Enjoying and sharing pics. Watching videos. Enjoying music. Playing games. Maps. Reading ebooks. Super smooth scrolling. iCons fly in when you unlock it. It has iTunes store built right in. YouTube, and YouTube in HD. Replaces the old paper calendar with a similar size version.

Hardware Details:
.5 inches thin
1.5 pounds
9.7 inch IPS display
1GHz Apple A4 chip
Full capactitive multi-touch
Available in 16GB, 32, 64
Wifi & Bluetooth 2.1 + EDR
10 Hour Battery Life (they claim)
App Store - supports iPhone Apps
Built in Apple Software
Speaker, Microphone
Accelerometer & Compass
iWork - for the iPad

The Specs:

Size and weight:
Height:
9.56 inches (242.8 mm)
Width:
7.47 inches (189.7 mm)
Depth:
0.5 inch (13.4 mm)
Weight:
1.5 pounds (.68 kg) Wi-Fi model;
1.6 pounds (.73 kg) Wi-Fi + 3G model

The other announcement is iBooks. The new iBookstore allows for easy book browsing and purchases, includes a great reader too. All in one really great app. We use the ePub format.

The uses for the new iPad are unlimited. It’s the true “cross-over” platform and device. including leisure activities to light business work. It is also expected to take colleges and universities wireless for textbooks.

“At that price, they’ll sell millions,” Hakim Kriout of New York-based Grigsby & Associates told Bloomberg News. (Kriout’s firm owns Apple shares.) “It’s very, very affordable for what it does. This is going to add a huge revenue stream for Apple.”

As for connectivity, the iPad works on WiFi networks, and there are models that will have 3G connectivity. AT&T will offer unlimited data for $29.99 a month, or $14.99 for 250 Mb/month. There are six models in all, ranging in price from $499 to $829, depending on the amount of storage you want and whether you want 3G.

For more information, visit http://www.apple.com/iPad/

January 27, 2010 in Blog   |   No Comments

New Apple Tablet Device Leaked (iPad)

Today marks the date for Apple’s release of it’s speculated tablet device. However, in advance of Steve Jobas taking center stage, new details are leaked by McGraw-Hill chief lets information slip in an interview.

Details on the forthcoming new Apple product, rumored to be named the iPad or iSlate, have been revealed on US TV. Terry McGraw, head of publishing company McGraw-Hill, revealed in an interview with CNBC this morning that the product was going to be based on the operating system of the iPhone, and would be able to display book content to read. Watch the video here:

Apple is holding a press conference later today (January 27) to reveal details of the new product. “The tablet is going to be based on the iPhone operating system, and so it will be transferable,” he said. “We have a consortium of ebooks – we have 95 per cent of all our materials that are in ebook format on that one – so with the tabloid you’re going to open up the higher education market, the professional market. The tabloid, the tablet is going to be just really terrific.”

It is still unclear whether McGraw was using the words “tabloid” and “tablet” to refer to a specific product name. We shall see.

Bottom Line: Apple will shake up the Apps and Publishing World with their new device. Mobile Marketers take note - new opportunies are being created with Mobile Apps and Mobile Marketing services. It also sets the stage for new mobile commerce. The new decade marks the start for an explosion in sales of mobile apps and e-book marketplaces.

in Blog   |   No Comments

Amazon adds Apps to Kindle

Amazon Thursday (January 21, 2010) announced a SDK (software development Kit) for its popular Kindle e-reader. These tools will let developers create and sell Apps (applications for the Kindle). The news comes days before Apple is expected to announce a new e-reader/device that is expected to be part e-reader and tablet computer, The Yankee Group projects in a new forecast that the U.S. e-book reader market will nearly double to $2.3 billion by 2013, from $1.3 billion this year.

The competition from Apple will be the Kindle’s most formidable competitor to date. It also comes a day after Amazon said it was hiking the royalty rate for authors for each e-book sold via the Kindle to 70% — the same rate Apple pays developers on app sales through iTunes.

Some Kindle Apps in the works include a Zagat guide for restaurants worldwide, games from Electronic Arts and word games and puzzles from smaller game publisher Sonic Boom. The third-party apps won’t be available in the Kindle Store until later this year. Starting next month, Amazon will allow developers to download the software development kit in a limited beta.

“We’ve heard from lots of developers over the past two years who are excited to build on top of Kindle,” said Ian Freed, vice president, Amazon Kindle, in a statement. “The Kindle Development Kit opens many possibilities — we look forward to being surprised by what developers invent.”

Apple, has been coy about its designs on the e-reader market. But recent reports that the company is in talks with a wide range of publishers including HarperCollins and The New York Times to supply content for its forthcoming tablet device suggest it’s taking dead aim at the Kindle.

The release of yet another App Store and digital marketplace shows the trend for Apps and Digital Content to grow over the coming years (see the Mobile App Stores Sales expected to hit $6 Billion in 2010 article).

January 22, 2010 in Blog   |   No Comments