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Six months before launching the first Mac computer in 1983, Steve Jobs gave a conference in Aspen predicting a new digital distribution system. He said it would be a little like a record store, downloaded over phone lines. Derived from PDAs and emerging technology, the Apple app store debuted in July 2008.
An application is a form of software that allows us to perform specific tasks. Applications cannot run by themselves, they are dependent upon the system software within the device.
For example, iPhones are programmed with iOS software to enable the application to run. Software is intangible, encompassing multiple programs that a computer or phone uses.
Creating an app comes with a hefty price tag. Mobile app developers are hired by corporations and entrepreneurs to build accessible, user friendly interfaces. Simple app development projects start around $25,000, while complex apps cost at least six figures to upwards of $1,000,000.
With the abundance of options in the app store, prices were driven down from perhaps $1 per download to $0. In 2013, just over 6% of all apps downloaded were paid for. For most users, there are a few options for nearly anything they could be looking for.
Without much knowledge or experience using the app, users gravitate towards the free option and don’t give the paid apps a second thought.
The “freemium model” allows users to download the app and then pay for additional features. Once users have developed a preference for one free app, they then have the opportunity to purchase additional features. They are more likely to spend the money to upgrade after the download because they trust the brand.
Social media apps, like Instagram and Facebook, often make money through display ads or promoted posts. The app earns advertising revenues from allowing brands or users to promote their pages or websites. When using best-practice, this is favorable to consumers because they have complete access to the site at no cost.
E-commerce sites often create mobile apps not directly to make money, but to drive additional sales due to accessibility. When the consumer is offered a mobile friendly platform to shop on that saves their account information, customers can check out on the go!
Businesses that utilize mobile apps have the opportunity to send users push notifications to their home screen.
The ability to remind consumers of promotions through push notifications takes email marketing to the next level. While consumers check their email a few times a day, a push notification sent to their home screen will immediately remind the consumer of the product or service. Push notifications can avoid the noise the email marketing is forced to silence.
Under Armour – MapMyFitness is a mobile app for Under Armour offering users a complete health and fitness experience. The app gains more than 100,000 new users per day. The app is not inherently e-commerce but it increased brand awareness and encouraged their customers in their fitness journey.
L’Oreal – L’Oreal offers the Makeup Genius app using augmented reality to let users try on products chosen by L’Oreal experts.
Starbucks – The Starbucks app allows users to locate coffee shops, browse the menu, sort gift cards, and mobile order using credit cards. The app allows for customization and increases efficiency for consumers, driving revenue.
Ikea – Ikea uses augmented reality to help consumers see how furniture will look in their spaces. Users can take a picture of their room and virtually installs ikea furniture; this incites interest and helps users feel comfortable with larger purchases.
Volkswagen – The SmileDrive app creates travelogues for drivers that include miles traveled, weather, minutes on the road, photos and status updates. It’s connected via Bluetooth and reports “Smile Score” to users.
To learn more about apps, follow the links below:
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