FSTEC 2016 — Why Mobile isn't a "Check the Box" Initiative
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Thanx CEO Zach Goldstein presents at FSTEC 2016 in Dallas, TX on why restaurants shouldn't build mobile apps just for the sake of having an app. Covered in this presentation: -5 things all restaurants should consider before building a mobile ap. -what makes consumers want to download — and KEEP! — an app on their smartphone. -pitfalls of traditional apps. -which features should remain on mobile web vs. app.
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FSTEC 2016 — Why Mobile isn't a "Check the Box" Initiative
- 1. © 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
- 2. © THANX, INC. ALL RIGHTS RESERVED 2 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
- 3. © THANX, INC. ALL RIGHTS RESERVED3 AGENDA 3 • The rise of mobile and the state of the “restaurant app” today • Guiding principles for a winning mobile strategy
- 4. © THANX, INC. ALL RIGHTS RESERVED 4
- 5. © THANX, INC. ALL RIGHTS RESERVED 5 2.2M unique apps in the App Store Jul '08 Apr '09Nov '09Jun '10Jan '11Oct '11Jun '12Jan '13Jun '13Jun '14Jan '15
- 6. © THANX, INC. ALL RIGHTS RESERVED 6 ~40% transaction capture #1 app iOS first week
- 7. © THANX, INC. ALL RIGHTS RESERVED 7 Average number of Apps on phone: 27 Time spent in top 5 Apps on phone: 88%
- 8. © THANX, INC. ALL RIGHTS RESERVED 8 MOST RESTAURANT APPS ARE FAILING Across a random sample of 150 restaurant apps, the average star rating was 2.9
- 9. © THANX, INC. ALL RIGHTS RESERVED 9 APP RATINGS AND REVIEWS TELL THE STORY
- 10. © THANX, INC. ALL RIGHTS RESERVED10 AGENDA 10 • The rise of mobile and the state of the “restaurant app” today • Guiding principles for a winning mobile strategy
- 11. © THANX, INC. ALL RIGHTS RESERVED 11 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
- 12. © THANX, INC. ALL RIGHTS RESERVED 12 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
- 13. © THANX, INC. ALL RIGHTS RESERVED 13 TWO-THIRDS OF REVENUE COMES FROM TOP 25% CUSTOMERS Customer base % of total spend
- 14. © THANX, INC. ALL RIGHTS RESERVED 14 GEAR APPS FOR YOUR BEST CUSTOMERS Your VIPs are more likely to use your app The rest of your customers will not
- 15. © THANX, INC. ALL RIGHTS RESERVED 15 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
- 16. © THANX, INC. ALL RIGHTS RESERVED 16 FAR MORE PEOPLE ARE ON MOBILE WEB THAN APPS
- 17. © THANX, INC. ALL RIGHTS RESERVED 17 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
- 18. © THANX, INC. ALL RIGHTS RESERVED 18 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
- 19. © THANX, INC. ALL RIGHTS RESERVED 19 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
- 20. © THANX, INC. ALL RIGHTS RESERVED 20 S A V E D A C C O U N T S
- 21. P U S H N O T I F I C A T I O N S
- 22. © THANX, INC. ALL RIGHTS RESERVED 22 G E O L O C A T I O N
- 23. A C C E L E R O M E T E R
- 24. © THANX, INC. ALL RIGHTS RESERVED 24 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
- 25. © THANX, INC. ALL RIGHTS RESERVED 25 Inactive Active 58% Out of 29 loyalty program memberships per U.S. household, 58%(!) are inactive. PEOPLE ARE LAZY INACTIVE MEMBERSHIPS
- 26. © THANX, INC. ALL RIGHTS RESERVED 26
- 27. © THANX, INC. ALL RIGHTS RESERVED 27
- 28. © THANX, INC. ALL RIGHTS RESERVED 28
- 29. © THANX, INC. ALL RIGHTS RESERVED 29 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?
- 30. © THANX, INC. ALL RIGHTS RESERVED 30 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
- 31. © THANX, INC. ALL RIGHTS RESERVED 31 JOYLESS EXPERIENCES
- 32. © THANX, INC. ALL RIGHTS RESERVED 32 INSTEAD WHAT IF IT WAS EFFORTLESS Pay As Usual Get Rewarded
- 33. © THANX, INC. ALL RIGHTS RESERVED 33 PHONE STAYS IN YOUR POCKET OR PURSE
- 34. © THANX, INC. ALL RIGHTS RESERVED 34
- 35. © THANX, INC. ALL RIGHTS RESERVED 35 FINAL WORDS OF WISDOM Minimize Unnecessary IT Headaches Make It Joyful For Consumers Measure Results
- 36. © THANX, INC. ALL RIGHTS RESERVED36 Zach Goldstein zach@thanx.com
Editor's Notes
- 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 5 Considering 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