Mini-Lesson: Succeeding on the
Marketplace

Frédéric Harper
Developer Evangelist @ Microsoft Canada

@fharper | outofcomfortzone.net
Building apps is fun!


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



                                     *us, coding apps with
                                      tears of joy
…but here’s a little reality check.

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

* Source: Localytics - http://www.localytics.com/blog/2011/first-impressions-matter-
26-percent-of-apps-downloaded-used-just-once/
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.
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                            Use an in-app trial mode
  (how to give a
 user a trial app)                     Create a new app as 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
     Tactics         App may be used only x number of times if the app is in trial
 (example ways of                              mode
  implementing a     App is time-bombed to not work after y number of days after
                                            the first use
       trial)
                         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.
Don’t give it
                 •   Understand the motivations that will entice your user to want to
  away               go beyond the trial and pay for your app.

                 •   Don’t limit the functionality of your trial app so severely that a
Make the trial
                     user can’t get a good understanding of the paid app’s value
 compelling      •   Leave them wanting more – don’t leave them frustrated.

                 •   If you want a user to pay for your app to compensate you for your
  Use Ads            effort, why not monetize your trial with ads?
                 •   You get paid either way.
Pricing your app is fraught with risk.

 $1.99 for that? Are they               If you price your app too high,
   crazy??? I’ll pass.                  users will bolt.


                                              $0.99 for an app that does
      If you price your app too low,           <your scenario here/>.
                     users will bolt.         Must not be very good. I’ll
                                                         pass.
Perception is reality.
                                Statistics to Use in Cocktail Party Chit Chat

        The average price of an iPhone
                                                                          The price of an extra large coffee at
        app in Apple’s App store in 2011
                                                                                Tim Horton’s is $1.90. 2
                 was $1.61. 1
      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.

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

 1:Source -                                                               2:Source - http://www.huffingtonpost.ca/2011/08/29/tim-hortons-small-
 http://www.appleinsider.com/articles/11/07/11/ios_app_store_downloads    coffee_n_940091.html
 _grow_61_average_app_price_up_14.html
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
                          Great Apps . . .
                          Stand Out - Look and feel as if they
                          are designed for and integral part of
            Delight       Windows Phone 7

                          Are Useful – providing expected
            Utility       feature set, presented with visual
                          impact, that compels frequent use in a
                          new way
        Functionality
                          Work as promised, include quality
                          content, and are easy to use

     Functionality promised, include quality content and are easy
    Highly Functional apps work as
    to use as promised, includes quality content, and is easy touse
      Works




Outstanding performance. Quick loading.   Content is dynamic or exceptionally well       First use of the app is intuitive and
Does not hang or crash.                   prepared. Description and metadata help sell   reassuring. Advanced features are
                                          the app                                        discoverable and understandable
Utility
Incorporatesmobile featuresandvisual impact thatcompel frequent usein anew way
   Useful apps allow users to do new things and frequently enable creation and
    sharing, not just consumption of content




App takes full advantage of    Great use of color, graphic   Apps that are likely to compel   Concepts that push the
device features and mobile     placement, and visual         frequent and repeated use.       boundaries for mobile apps,
scenarios and surprises with   elements                                                       offering innovative features or
unexpected capabilities                                                                       best-in-category innovation
Delight
     Looks andfeels like anintegral partoftheplatform




Amazing app capabilities that make the    Makes full use of platform’s design and     Best adoption of platform features
user smile and inspires “Show and Tell”   style guides. Uncluttered, polished clean   (push notifications, Hub Integration)
behavior                                  experience
Questions
            Frédéric Harper
            Developer Evangelist @ Microsoft Canada

            fredh@microsoft.com
            @fharper

            webnotwar.ca
            outofcomfortzone.net




20
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.

All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.

Windows Phone Code Camp Montreal - marketplace

  • 1.
    Mini-Lesson: Succeeding onthe Marketplace Frédéric Harper Developer Evangelist @ Microsoft Canada @fharper | outofcomfortzone.net
  • 2.
    Building apps isfun! Let’s face it – we all get a kick around building apps! *us, coding apps with tears of joy
  • 3.
    …but here’s alittle reality check. Only 26% of all mobile apps downloaded are ever opened more than 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. * Source: Localytics - http://www.localytics.com/blog/2011/first-impressions-matter- 26-percent-of-apps-downloaded-used-just-once/
  • 4.
    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.
  • 5.
    If you arecharging 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.
  • 6.
    You still haven’ttold 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:
  • 7.
    Ok, great. Sowhat’s a trial? Strategies Use an in-app trial mode (how to give a user a trial app) Create a new app as 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 Tactics App may be used only x number of times if the app is in trial (example ways of mode implementing a App is time-bombed to not work after y number of days after the first use trial) 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
  • 8.
    Principles of theTrial • Put serious thought into what you want to put in your trial. Don’t give it • Understand the motivations that will entice your user to want to away go beyond the trial and pay for your app. • Don’t limit the functionality of your trial app so severely that a Make the trial user can’t get a good understanding of the paid app’s value compelling • Leave them wanting more – don’t leave them frustrated. • If you want a user to pay for your app to compensate you for your Use Ads effort, why not monetize your trial with ads? • You get paid either way.
  • 9.
    Pricing your appis fraught with risk. $1.99 for that? Are they If you price your app too high, crazy??? I’ll pass. users will bolt. $0.99 for an app that does If you price your app too low, <your scenario here/>. users will bolt. Must not be very good. I’ll pass.
  • 10.
    Perception is reality. Statistics to Use in Cocktail Party Chit Chat The average price of an iPhone The price of an extra large coffee at app in Apple’s App store in 2011 Tim Horton’s is $1.90. 2 was $1.61. 1 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. Picture Source: http://euroross.blogspot.com/2006/08/workplace-evals.html 1:Source - 2:Source - http://www.huffingtonpost.ca/2011/08/29/tim-hortons-small- http://www.appleinsider.com/articles/11/07/11/ios_app_store_downloads coffee_n_940091.html _grow_61_average_app_price_up_14.html
  • 11.
    There are fourrules to pricing your app correctly. • Understand your addressable market • Know your competition • Treat your app like a business • Keep your options open
  • 12.
    Rule #1: Understandyour 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?
  • 13.
    Rule #2: Knowyour 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?
  • 14.
    Rule #3: Treatyour 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?
  • 15.
    Rule #4: Keepyour 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.
  • 16.
    The best wayto get promoted is to know what app stores are looking for Great Apps . . . Stand Out - Look and feel as if they are designed for and integral part of Delight Windows Phone 7 Are Useful – providing expected Utility feature set, presented with visual impact, that compels frequent use in a new way Functionality Work as promised, include quality content, and are easy to use
  • 17.
    Functionality promised, include quality content and are easy Highly Functional apps work as to use as promised, includes quality content, and is easy touse Works Outstanding performance. Quick loading. Content is dynamic or exceptionally well First use of the app is intuitive and Does not hang or crash. prepared. Description and metadata help sell reassuring. Advanced features are the app discoverable and understandable
  • 18.
    Utility Incorporatesmobile featuresandvisual impactthatcompel frequent usein anew way  Useful apps allow users to do new things and frequently enable creation and sharing, not just consumption of content App takes full advantage of Great use of color, graphic Apps that are likely to compel Concepts that push the device features and mobile placement, and visual frequent and repeated use. boundaries for mobile apps, scenarios and surprises with elements offering innovative features or unexpected capabilities best-in-category innovation
  • 19.
    Delight Looks andfeels like anintegral partoftheplatform Amazing app capabilities that make the Makes full use of platform’s design and Best adoption of platform features user smile and inspires “Show and Tell” style guides. Uncluttered, polished clean (push notifications, Hub Integration) behavior experience
  • 20.
    Questions Frédéric Harper Developer Evangelist @ Microsoft Canada fredh@microsoft.com @fharper webnotwar.ca outofcomfortzone.net 20
  • 21.
    The information hereinis 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. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.

Editor's Notes

  • #2 Presentation checklist-Launch Visual Studio-Launch Zune if planning to deploy to phone-connect phone to laptop-Launch Internet Explorer and have tabs for:APP HUB http://create.msdn.com/en-US/IMAGINE CUP VIDEO http://www.youtube.com/watch?v=DOp-fUbZ26I&amp;feature=player_embeddedDEVELOPER MOVEMENT developermovement.comDuring TechCheck you will want to test whether you have sound for the video and the sound level, if you don’t have sound bring speakers or skip the video and talk about Imagine Cup instead