2. Great Apps Pay Off​,​ Good Apps Are Not Enough
Julie Ask, VP & Principal Analyst
Study commissioned by IBM
October 14, 2015

3. Agenda Why bother creating a great mobile app?
What inhibits companies from mobile app greatness?
What makes a great mobile app?

4. Mobile has shifted your customers’ expectations.
Julie

5. The expectation that I can get what I want in my immediate context and moments of need.

6. 21%
21% of customers are shifted

7. 50%
Will be shifted within the next few years

8. What has changed? Consumers expect:
Convenience
Immediacy
“On sale now!” “Card stolen now!”
Shipping notifications
Product/pricing/inventory
Simplicity
Push notifications
Curated content
Task-oriented design flow
Context
Deals nearby
Relevancy based on past behavior
Time-sensitive notifications

9. Shifted expectations change how you engage with your customers.
Airline Example
Flight
-2 weeks
Book ticket
Change reservation
-2 days
Change seat
Request upgrade
-2 hours
Check in
Check gate
Departure time
Lounge access
+2 weeks
+2 days
+2 hours
Ground transport
Lost luggage
Navigation
Mileage points earned
Customer service survey
Mileage status
Reward travel
Upcoming reservations
Arrival time
Food order
Movies
Wi-Fi
Duty Free
Event

10. Create a great app that engages a customer in that mobile moment and reap the benefits.

11. What makes a good app? A Good App: A Great App: Works well
Works extremely well
Is quick
Is noticeably quicker
Is secure
Enables connection
Is easy and entertaining
Is easy, entertaining and compelling
Is relevant and contextual

12. Great apps outperform good apps. They:
Create direct revenue
Influence sales in other channels
Lower costs
Increase customer engagement and loyalty through improved customer experiences

13. Great apps outperform good apps on direct revenue
GREAT apps generated 5x more sales and advertising revenue than good apps…
$45,609,066
GREAT APPS
$9,526,037
GOOD APPS
Source: Q11, Q14 of Great Mobile App ENTERPRISE survey sorted by companies who self-rated their best performing mobile application as either “great” or “good”, conducted by Forrester Consulting for IBM, September, 2015

14. Great apps influence sales in other channels more
By how much would you estimate the app influenced sales through other channels (Website or in-store)?
Average increase
44.1%
GREAT APPS
Average increase
38.3%
GOOD APPS
Source: Q11 and Q16 of Great Mobile App ENTERPRISE survey, sorted by companies who self-rated their best performing mobile application as either “great” or “good”, conducted by Forrester Consulting for IBM, September, 2015

15. Great apps outperform good apps on cost savings
Source: Q11, Q20-24 of Great Mobile App ENTERPRISE survey sorted by companies who self-rated their best performing mobile application as either “great” or “good”, conducted by Forrester Consulting for IBM, September, 2015

16. Great apps provide more indirect financial benefits than good apps
Customer Engagement
Customer Experience
Customer Loyalty
Return customers spend, on average, more than new customers. And have no acquisition cost.
Increases in customer engagement and customer loyalty impact LIFETIME VALUE OF CUTOMERS and customer experience impacts INFLUENCE ON IN-STORE SALES. Return customers spend, on average, more than new customers. And have no acquisition cost. They will also tell their friends and family about the app and potentially make them more loyal customers too.
Source: Q11, Q25, Q26, Q29 of Great Mobile App ENTERPRISE survey sorted by companies who self-rated their best performing mobile application as either “great” or “good”, conducted by Forrester Consulting for IBM, September, 2015

17. But companies are not aligned with their customers on what makes a great app.

18. Enterprises miss where consumers place their expectations
Where enterprises incorrectly assume that consumers want these things
Multiple Touch points
Updates on products/services
Remember who I am
Specify type/frequency of communication
Control information shared
Control offers & content
Where enterprises and consumers are aligned on app expectations
Where consumers have high expectations and enterprises miss the mark
Offer discounts & extra services
Push notifications

19. Companies are under-resourced for the apps they have planned.

20. 58% of enterprises spend <$2M on mobile app development
Companies are spending relatively little on mobile apps …
Please estimate your company's total annual spend on mobile application development in your local currency (including technology platform, internal resources and external vendors)
58% of enterprises spend <$2M on mobile app development
Base: 200 US, Canadian, UK, & Indian decision-makers with responsibility for mobile app initiatives at companies of 500+ employees
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, September 2015

21. … but have big ambitions
How many mobile apps does your organization have/plan to build?

22. Organizations are not tracking and analyzing the right measures of app performance to understand the impact of their apps.

23. But enterprises who think their best app is “great” are starting to look at deeper measures
How do you measure the business performance of an app? (select all that apply) by Please rate the quality of your company's highest-performing mobile app – Selected responses (financial)
Base: 158 Mobile application professionals who rated their best performing mobile app as either “Good” or “Great”
Source: “IBM GoodToGreatApps TLP Enterprise”, a commissioned study conducted by Forrester Consulting on behalf of IBM, September, 2015

24. Great apps lead to higher engagement, which amplifies the financial benefit of the app.
Higher engagement means more return usage, increased spend of existing customers, increased lifetime value of the customer, and more sharing to friends and family, which leads to an increased app audience size. The increase in engaged app audience size is the compounding factor for really accelerating ROI.

25. Good to Great mobile apps enable consumers to engage more deeply
How does GOOD or GREAT mobile application performance affect your interaction with or opinion of the maker/owner of the mobile app? Included More & Very likely; sorted by Very likely, top 5 responses
Base: 1000 Consumers from US, Canada, UK, India who use mobile devices
Source: “Good to Great Mobile Apps TLP Consumer Survey”, a commissioned study conducted by Forrester Consulting on behalf of IBM, September, 2015

26. To summarize, with great mobile apps:
There is a major financial opportunity for enterprises who create great mobile apps
Consumers expect that a great app will provide relevant, contextual content and offers that are tailored and pushed to them
Organizations need to spend the time and money to create great apps
Organizations are not yet measuring the things that will lead them to create great mobile apps

27. Most of you will start with your existing “good” apps
Measure/ Get Data
Analyze
Offer Services Update Features Fix Bugs
Differentiate
Develop Insights
Be a software company. Why? [Build out the arrows]
You can’t serve your customers in 30B mobile moments a day without automation
You can’t get the feedback you need to understand and then better serve your customers without data and insights from the constant feeds that connected products and apps offer
You can’t roll out new features or functionality or fix bugs without being software.
Slide 37 [trends section] - are you planning to bring "things" into the discussion? How connected products beyond the mobile device may become part of the customer journey/experience with brands.  

28. Key Recommendations
Find out what your customers want. Align with that.
Get qualitative feedback
Use insights to improve your customers’ experience with your app
Make measurement a religion. And then do it again.
Invest well. Invest wisely. Invest long term.
Be agile in your mobile development.

29. Questions?

30. Julie Ask
@JulieAsk