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© THANX, INC. ALL RIGHTS RESERVED1
WHY MOBILE ISN’T
A “CHECK-THE-BOX”
INITIATIVE
Z A C H G O L D S T E I N
F O U N D E R A N D C E O , T H A N X
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Z A C H G O L D S T E I N
F O U N D E R A N D C E O , T H A N X
F I N E D I N I N G
C A S U A L D I N I N G
Q U I C K S E R V E / F A S T
C A S U A L
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AGENDA
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• The rise of mobile and the
state of the “restaurant app”
today
• Guiding principles for a
winning mobile strategy
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2.2M
unique apps in the App Store
Jul '08 Apr '09Nov '09Jun '10Jan '11Oct '11Jun '12Jan '13Jun '13Jun '14Jan '15
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~40%
transaction capture
#1 app
iOS first week
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Average number of
Apps on phone:
27
Time spent in top 5
Apps on phone:
88%
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MOST RESTAURANT APPS
ARE FAILING
Across a
random sample
of 150
restaurant apps,
the average star
rating was
2.9
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APP RATINGS AND REVIEWS TELL
THE STORY
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© THANX, INC. ALL RIGHTS RESERVED10
AGENDA
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• The rise of mobile and the
state of the “restaurant app”
today
• Guiding principles for a
winning mobile strategy
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© THANX, INC. ALL RIGHTS RESERVED
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KEYS TO MOBILE SUCCESS
• Start with your top customers
• Build basics on mobile web
• Utilize app-only tech
• Compliment existing behaviors
instead of forcing new ones
• Keep it Simple, stupid
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KEYS TO MOBILE SUCCESS
• Start with your top customers
• Build basics on mobile web
• Utilize app-only tech
• Compliment existing behaviors
instead of forcing new ones
• Keep it Simple, stupid
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TWO-THIRDS OF REVENUE COMES
FROM TOP 25% CUSTOMERS
Customer base % of total spend
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GEAR APPS FOR YOUR BEST
CUSTOMERS
Your VIPs are more
likely to use your
app
The rest of your
customers will not
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KEYS TO MOBILE SUCCESS
• Start with your top customers
• Build basics on mobile web
• Utilize app-only tech
• Compliment existing behaviors
instead of forcing new ones
• Keep it Simple, stupid
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FAR MORE PEOPLE ARE ON
MOBILE WEB THAN APPS
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W E B S I T E S
A P P
• Menu / Nutrition
• Locations
• Contact Information and Hours
• Reservations
• Basic Ordering / Delivery
• Loyalty
• Customizable Ordering
• Personalized Push
Notifications
KNOW YOUR CHANNEL
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KEYS TO MOBILE SUCCESS
• Start with your top customers
• Build basics on mobile web
• Utilize app-only tech
• Compliment existing behaviors
instead of forcing new ones
• Keep it Simple, stupid
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WHAT CAN YOUR APP DO THAT A
WEBSITE CANNOT
S A V E D A C C O U N T S
P U S H N O T I F I C A T I O N S
G E O L O C A T I O N
A C C E L E R O M E T E R
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S A V E D A C C O U N T S
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P U S H N O T I F I C A T I O N S
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G E O L O C A T I O N
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A C C E L E R O M E T E R
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KEYS TO MOBILE SUCCESS
• Start with your top customers
• Build basics on mobile web
• Utilize app-only tech
• Compliment existing behaviors
instead of forcing new ones
• Keep it Simple, stupid
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Inactive Active
58%
Out of 29 loyalty program memberships
per U.S. household, 58%(!) are
inactive.
PEOPLE ARE LAZY
INACTIVE MEMBERSHIPS
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WHAT MAKES A CONSUMER WANT TO
DOWNLOAD AND KEEP AN APP?
Does it make my life
easier/provide
continued value? Does it provide a
joyful experience?
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KEYS TO MOBILE SUCCESS
• Start with your top customers
• Build basics on mobile web
• Utilize app-only tech
• Compliment existing behaviors
instead of forcing new ones
• Keep it Simple, stupid
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© THANX, INC. ALL RIGHTS RESERVED
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JOYLESS EXPERIENCES
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© THANX, INC. ALL RIGHTS RESERVED
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INSTEAD WHAT IF IT WAS
EFFORTLESS
Pay As
Usual
Get
Rewarded
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PHONE STAYS IN YOUR
POCKET OR PURSE
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FINAL WORDS OF WISDOM
Minimize Unnecessary
IT Headaches
Make It Joyful
For Consumers
Measure
Results
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© THANX, INC. ALL RIGHTS RESERVED36
Zach Goldstein
zach@thanx.com
There are currently 2M unique applications live in the app store. We represent just one. And the growth is continuing at a meteoric rate.
Millennials spend 23,.5 hours a day on phones
So if you were a brand — whether a tech company, a consumer product or a restaurant chain — the answer is obvious right?
Apps are the future and you have to jump on board or risk missing out.
Unfortunately, upon closer inspection, the world of the App is not quite as rosey as it seems.
Restaurant brands are rushing to mobile because they they see big players like Starbucks and Chick-fil-a with successful mobile programs and think they’re behind. They see headlines about mobile and want their brand to be at forefront. They see consumer demand
Of that entire universe of available applications, the average consumer has just 27 installed on their phone.
The average number of apps used by the typical US smartphone owner has been stuck around 27 for four years straight
To make matters worse, outside the native apps that come with the phone like texting and phone calls, 84% of all in-app time is spent in just five applications. 10% of apps that are downloaded are actually never even opened and more than 20% are opened only once.
50% of All App Time is Concentrated Within Our #1 App, and 88% is Within the Top 5Considering the outrageous amount of time we are spending within our apps, one of the more astounding findings from a Comscore report is how much of that activity is concentrated within the small handful of a user’s most-frequented apps. An almost unbelievable 50% of all time spent on smartphone apps occurs just within a user’s #1 most used app. And nearly 8 out of every 9 minutes occurs within that user’s top five apps.
Truth is consumers have no tolerance for bad mobile experiences and are very selective about what they download and even more selective about what they KEEP on their phones - - especially the first screen
Just look at the ratings and reviews of restaurant apps. There are some phenomenal ones… but there are a lot of big players with really bad apps. And the ratings and reviews tell the story. This is such a poor reflection on great brands. If your restaurant had a 2 star review on yelp would that be ok? NO! The GM would be out... The front of house would be out... The chef would be replaced... But for some reason brands seem to be taking this on the chin.
(comscore)
(comscore)
This also makes business sense.
If it all seems very futile… it is. Unless you do one very important thing - - Design your app for your best customers and focus your efforts there. Everyone else can go to your mobile optimized website. Mobile optimized sites should come first.
(comscore)
(comscore)
How do you use mobile to provide value in a way that websites can’t?
What is on the phone that’s not on computer? Location data, push notifications, accelerometer
Here’s a good example of how push notifications can be used - Feedback tied to purchase
Here’s a good example of how push notifications can be used - Feedback tied to purchase
Make this about earning?
ZACH – Do you feel like this is the same as the one before?
Specialties is a sandwich place that focuses on highly customized sandwiches. They used a mobile-only technology - - the accelerometer - - to develop a fun feature that allows people to shake and swipe to create their sandwich. This wouldn’t’ work for the VAST VAST majority of restaurants but it is on brand and I’m sure they were thinking about their customers when they created it.
(comscore)
I want to talk about loyalty programs since it’s largely the central feature of your mobile app and why people download in the first place versus just going to your mobile site. Loyalty Programs are tough to get right. They need to be joyful.
Despite massive interest in loyalty programs, 60% of loyalty programs fail, as consumers stop using them. That’s due to a poor user experience
With low consumer engagement, loyalty programs become cost centers, not revenue generators. And that 60% figure — that’s on average.
To work, loyalty cannot be dependent on low tech punch and plastic cards, nor can it be dependent on “high” tech clunkiness. You need an effortless experience — for both merchants and consumers.
Game this out with me. Brands here are assuming that every time a consumer comes in to their store they will:
Get out their phone
Unlock their phone
Find the branded app icon on their list of 29 apps
Open the app and wait for it to load
Find the page in the app where they can scan a QR code
Enhance their brightness on the screen so that app gets picked up by the scanner
Turn off the changing orientation feature to make sure the code gets picked up by the scanner
Etc. etc. etc. EVERY TIME THEY VISIT!
Here’s another classic example — people are going to actually upload every receipt they ever get to their phone?
Not to mention the bugginess introduced by people having apps get built by offshore developers
These are some of the most important IT people can build, but companies are trying to build them with teams who can’t be relied upon for high functioning apps. Bugginess is a serious issue.
Consumers ask these 2 questions before they download and keep an app.
(comscore)
What’s the opposite? This makes my head spin. Is this a program you want to WORK to be in?
Or have you ever tried to remember which phone number or email you used to sign up for a loyalty program? The line is building up behind you and you’re struggling…
So what makes an experience joyful? It needs to be frictionless, effortless and magical.
(Combine frictionless and effortless?)
Phone is on you at all times but that doesn’t mean that consumers want to get phones out more.
Show Bad example - making someone whip out phone every time. (QR Code at checkout)
This slows down lines, can be embarrassing and adds friction to the experience