Taking your small business mobile

Date: Thu, 12/09/2010 - 17:03 Source: By Raam Thakrar and Freddie Gjertsen, Touchnote

Going mobile isn’t easy. It seems anyone can turn out an iPhone app nowadays (even my local curry restaurant), but for those looking to create a viable business ‘going mobile’ is more complicated. Touchnote moved into mobile in 2009 and our postcard-sending app will reach over 15 million users by the end of 2011

Taking your small business mobile Raam Thakrar, CEO of Touchnote

However, as we learned, even with a great product, you’re never going to make it big without exposure. Advertising campaigns, brand-building and all kind of expensive activities can help, but as a small start-up we simply didn’t have the means to invest in such expensive activities. So, seeing the increasing saturation of the online greetings card market, we decided to move to mobile.
This time, we wanted to make sure we took advantage of being first. We trusted our instincts on product, we’d been right before, and we focused on getting in front of consumers. The most effective way to do this on mobile? Have your app on the phones when they’re purchased.
The following article covers the lessons that we learned about developing an app and working successfully with Sony Ericsson, Microsoft and Palm to distribute it.

Finding a developer
Assuming that you’re not coding your app yourself, you’ll need to start by hiring a developer. We quickly learned that finding a developer is very different from finding a good developer. Every college student who’s knocked together a game thinks they’re an iPhone developer.
It’s hard to identify the professionals. For some platforms good developers have simply not had time to emerge. Android is less than 2 years old. Windows Phone 7’s latest incarnation is only months old. Symbian, though around for 8 years, is complex and has a lack of developers.

Designing your app
Once you’ve found a developer that you trust, be aware that mobile design is different. We came to mobile from the web and initially we tried to create small websites as apps. This was a mistake. Apps are self-contained and shouldn’t replicate the sequence of distinct pages that you find on a website.
You also need to bear in mind that with a touch interface the user needs constant feedback that they have pressed what they intended. Buttons need to be large and simple. The whole app needs to be fast and responsive. You need to let the user achieve what they want to achieve as quickly and as painlessly as possible.
Don’t try and be clever, look pretty but keep out of the user’s way.

Choosing your features
Everyone will say this, few will actually apply it. Work out the minimum number of features that your app needs to be effective and only incorporate these. Your app should perform its key function as effectively and effortlessly as possible.
This isn’t about being cautious when adding new features, it’s about scrutinising those that you already think you need. Go through your features list and cull. Take out that social network integration feature. Remove whatever it is that your Product Manager added because it was featured in TechCrunch this week.
It may seem painful, but it will result in a more focussed, better performing product. You want to end up with simple, focused functionality and a great user interface. That’s what works. Take a look at TapBots if you don’t believe me.

Things to bear in mind
What about analytics? Web analytics are ubiquitous; every site has them. Mobile analytics are just as necessary. What are users doing when they use your app? Where are they leaving the app? Which functions are they using? You need to embed analytics into the app from the outset, and this is something that’s easy to overlook.
Another thing to watch out for is payment methods. Assuming that you’ve got a freemium model for your app (perhaps the app is free and users have to pay for a service) you’ll need a payment method within the app. This is a big problem. iPhone won’t let you have in-app payment for physical goods and Android doesn’t have in-app payment at all. This means that you have to redirect users to a website to pay for stuff. Web from mobile is slow and painful, and you’re forcing users to use it just at the point when you want to close their purchase.

And don’t forget testing
Once your app is built you’ll need to get testing. Testing a mobile app is hard. Allow more time than you expect – at least a third of build time.
Testing is complicated by things such as multiple handsets with slight variations, the need to handle a loss of network coverage, peculiarities that different network operators introduce and you never have enough test phones and end up having to buy more.

Securing distribution for your app
Once you’ve got an app, you need distribution. Time to start talking to the mobile manufacturers.

Mobile manufacturers need you!
Mobile manufacturers want to sell phones.  They’re always looking for ways to show-off the expensive hardware they’ve packed into a new phone, or to extend the life of an existing model (perhaps by dressing it slightly differently) or to more clearly differentiate one phone from another.
In the good old days (a couple of years ago) manufacturers could incorporate ever more impressive hardware to make a device stand out. However, doing so is increasingly difficult and expensive. Another megapixel on a phone camera piqued consumer interest at one time; nowadays an adequate camera is a given.
This makes apps increasingly important. The absence of certain ubiquitous apps can be actively damaging. Their presence is assumed, their absence a frustration. No Facebook app? You don’t have Angry Birds? Oh dear. On the flip side, new and novel apps are a means to be cooler than the competition and a cheap way to tailor a phone to specific demographic.

Mature mobile player seeks fresh young app company
If they need an app, mobile manufacturers are prepared to offer distribution in return. Get into partnership and you can suddenly see your user base increase one thousand fold.
But before you start chasing a partnership, bear in mind that if you’re targeting the most trendy and glamorous area in the mobile industry, everyone else will be too. Mobile is illusory in that the manufacturers selling the highest volumes of phones are not necessarily the ones receiving the greatest attention in the media or showing the highest growth figures. Those manufacturers not currently receiving plaudits may be easier targets, they’re likely to be looking for new ideas.
Also, be aware that phone manufacturers are not app wholesalers. You won’t get them handing over several million pounds to license an app across a portfolio of devices. While this might have happened once upon a time, it’s now extremely rare. Budgets are tighter and the advent of app stores means companies don’t need to pay for your apps – the consumer can do it directly. If you’re angling for a deal that will see your app pre-embedded on a phone (that is, your app will be on the phone when it’s sold) you need a viable business model. It’s that model and a distribution deal with a phone manufacturer that will get you in front of millions of users from whom you can set about making money.

Working with a big company
If you do enter partnership, as a small company working with a big company, at times the process can seem opaque and protracted. As a small company, Touchnote operates in terms of hours, days and weeks. We turn things around in days and like to see an immediate impact. It’s hard for us to justify work that won’t see a return within three months. Big companies work on very different timescales. Quarters, halves, years and more. An eternity to a small company is a brief moment to a big one. Going through the process of agreeing and signing-off a contract can take a painfully long time.
Another problem with big companies is their sheer number of employees. At Touchnote, like most small businesses, we have one person for every job, sometimes one person for several jobs, and everyone in the company knows everything or can find it out quickly. With big companies we often don’t know if we’re talking to the right person. We might be contacting an “Account Manager”, but there may well be nine other account managers, each with a tightly defined area of focus – one of whom would be more appropriate. To complicate matters further, when personnel change within a big company you might not find out about it. Your link can suddenly be lost.
Finally, be aware that partnerships with big companies carry real risks. You will be tied and exposed to a company’s strategy and its shifts.

Operational nitty gritty
One noteworthy aspect of working with big companies is the financial and operational robustness that they enforce. It can be painful, but ultimately such rigour is extremely beneficial.
We were fortunate. Most of our systems and controls were already robust thanks to our web business - meeting the requirements of big companies hasn’t been a problem. But it’s worth listing the areas we modelled and audited to ensure readiness. These included ensuring that our payment and reporting systems could handle a massive spike in load, that our website was secure and that our testing process was thorough and robust.
Big companies are extremely sensitive about bugs in the software that they ship. Their testing cycles are incredibly thorough and have strict deadlines. Some of their tests may be normal for a large organisation, but are time-consuming for a small company. For example, we wouldn’t normally test whether an app can cope with a user repeatedly switching back and forth between Chinese and English whilst in the middle of sending a postcard.

Build app. Get distribution. Succeed (we hope)
How to summarise what we’ve learned about creating a mobile business? Your app has to have a business model - and then all about distribution. Having a great app goes a long way, but getting in front of the user is the most important thing.
By the end of 2011 our partnerships with Sony Ericsson, Microsoft and Palm will sees our branded app on over 30 million phones. To reach similar volumes of users you either need to have a massive brand, be one of the tiny minority of apps that 'just take-off', or start pursuing distribution partners.

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