Store Pass App: Utlising Geo-Fencing.

Although the post "The Store Pass App. Introductions and Features."explained briefly how the app would work in regards of location and notifcations however I'd like to expand on geo fencing.

"Programs that incorporate geo-fencing allow an administrator to set up triggers so when a device enters (or exits) the boundaries defined by the administrator, a text message or email alert is sent. Many geo-fencing applications incorporate Google Earth, allowing administrators to define boundaries on top of a satellite view of a specific geographical area.  Other applications define boundaries by longitude and latitude or through user-created and Web-based maps."

[Source - Rouse, M. (2013). geo-fencing (geofencing). Available: http://whatis.techtarget.com/definition/geofencing. Last accessed 11th December 2013.]

Some practical uses that have been utilised for geo-fencing are parental controls. It's becoming more and more common that younger teenagers and children have smart phones these days and with parental controls, parents can be notified of when their child leaves a designated area. 

For construction workers, they can be notified of when they are entering no entry zones and receive SMS and alerts that way.

Geo fencing is a little bit like a gate that you can pass through.
So with geo fencing, you can set up the parameters in which you wish your offers to activate. These can be allocated as zones.

Here is an example I made using Google Maps. Depending on the parameters set by the user, they can opt in and out of as many areas/as wide of an area as they wish.

The iPhone has been using this technology for some time too now. Via the 'Remind me at a location' on the Reminders function.

The Store Pass App. Introductions and Features.

So after all this research what have I concluded?

My initial idea stays the same.

The App:

The Pros:

• As I already demonstrated with the Bump App and more initial research this is very possible.
• Provides the function for users to opt in and out of their favourite retail stores and restaurants/café's.
• Provides different types of discounts such %'s off (e.g. 10% off when you purchase over £10), money off (e.g. £5 off when you purchase over £20).
• Free incentives and treats. (e.g. at a fashion store, free bracelet with every dress purchase or at a restaurant free drink with every main course).
  - This helps towards the promotion of new products and even the clearing of products that are overstocked or not selling well!
• The location service function and geo-fencing function is useful as it only offers services that are local. Users can also filter offers from 30ft to a mile away.
• Open to all businesses, big and small. Corporate and independent. From Tesco's to the local corner shop. (If necessary.)
• Is cheap to manufacture ($99 for a Software Development Kit & App License) requires a Mac (which I own) and a couple of really driven techie people. (Check!)

The Hurdles:

• A new concept can be quite difficult to encourage users to embrace.
• Indirect competitors such as Groupon, Vouchercloud can also be quite large competitors due to their success.
• Would require a lot of exposure and mass public use to get running and off the ground plus to maintain.

[Background Image Source]

So how would it work?

Head office computers / the marketing team would calculate which stores require the use of the Store Pass app. Notification allowances would then be sent to the store and distributed at the store manager's discretion.

The marketing team would also set the margins for which the offer operates. The time and price limits etc. and how many to send per hour per day.

Users that receive this offer than have a limited amount of time to claim it, they'll be encouraged to browse even if they were initially uninterested. For the user there is no loss, browsing is costless and they may find something they're interested in.

Initially the app would be free as costs could run on profit from store discounts, if the app proves to be popular, a small price can be implemented. The price would be a small amount such as £0.69 - £0.99. People would quickly earn this money back via the discounts therefore wouldn't mind the small cost of maintaining the app.

The idea is fairly straight forward but extremely effective, all faults and worries that have been brought up can also be ironed out and smoothed, with the right amount of work and knowledge.

As expressed in my Survey results, available here and here it would prove useful and an exciting new shopping experience.

The WWWWWH's

[Image Source]

Who?

• Stores that use this can vary from large companies to small companies. It may appeal to retail stores such as: River Island, Dune, Urban Outfitters, H&M, Forever21  - stores that don't usually offer many sales or existing discounts (e.g. Student Discount)
• Consumers that use this app can be anyone of all ages that enjoy shopping and discounts. It's open to anyone with a smart phone and downloadable for no cost at all. However with this kind of demographic, the age range that would be most interested in this app would be between the ages of 21-29+. Individuals in that category have usually secured a small to medium disposable income who would be interested in shopping and saving.

What?

• Utilising this app would be extremely simple, it would just require the installation of a program into head office and store computers for retailers and just a simple app download for users.

When?

• The great thing about this app is that it's time of use is completely controllable, there is no promise of high or low, frequent or seldom discounts. A store can utilise this to their full benefit ensuring a days profit is always secured.
• However due to consumer needs there should be a guaranteed minimum time of discounts e.g. two-three times a week, to keep interest in the app up.

Where?

• Store pass is extremely flexible but for the purposes of trialling it's success I would like to launch it in a city smaller than London. With London hosting the majority of head offices and flagship stores and the highest population in England, it tends to not struggle with huge sales and footfall.
• Store pass would be more directed at second cities such as Birmingham, Manchester, Leeds, Liverpool etc. All the cities named have notable shopping centres and a high population count. Despite all that, some stores still struggle with footfall and completing daily targets. For this reason it'd be much easier to test the effectiveness of store pass.

Why?

• As far as my research can prove, this type of app does not yet exist. There are apps in which you can manually search for discounts but it's far more time consuming than an app where discounts search for you. 
• This method is fast, easy and accurate. Stores can mix up the offers and discounts however they want to suit their company's needs.

How?

• As mentioned and to quite myself, Store Pass "Is cheap to manufacture ($99 for a Software Development Kit & App License) requires a Mac (which I own) and a couple of really driven techie people. (Check!)"

Monetizing apps.

"Passion is without doubt the main driver of a developer’s motivation to build great and beautiful apps. This passion will keep you awake at night and fuel the creativity and hard work necessary to the completion and perfection of a beautiful product.However, passion is not enough."

- [Source - Thomas Sommer. (2013). Monetizing Your App with Game Offers.Available: http://appdevelopermagazine.com/895/2013/12/2/Monetizing-Your-App-with-Game-Offers/. Last accessed 2nd December 2013.]

Free Apps

While it is true that some of the world's most downloaded apps are free (Angry Birds, Facebook, Twitter, Facebook Messenger, Fruit Ninja [source 1 & 2]) Free apps make money through advertising, a lot of free apps have a paid version where you can enjoy the app without advertisement interruptions or a premium service. Initially attracted by the free download, some apps then offer in-app purchases which are optional but generally persuasive (depending on the market) and will generate revenue that way.

"Ad spending on apps of all kinds – both mobile and desktop — is growing. Most industry analysts choose to measure only mobile app spending though, as most apps are created for the mobile and smartphone space. Mobile advertising revenue increased nearly 1.5X in 2011, to top out at $1.6 billion for the year.

The future of app monetization clearly lies in ad-supported model. A recent study by Cambridge University computer scientists found that 73% of apps in the Android marketplace were free, and of those, 80% relied on advertising as their main business model. Free apps are also far more popular in terms of downloads, the researchers said. Just 20% of paid apps are downloaded more than 100 times and only 0.2% of paid apps are downloaded more than 10,000 times. On the flipside, 20% of free apps get 10,000 or more downloads."

 -[Source -  Manoogian, J. (2012). How Free Apps Can Make More Money Than Paid Apps. Available: http://techcrunch.com/2012/08/26/how-free-apps-can-make-more-money-than-paid-apps/. Last accessed 5th December 2013.]

Here are some examples of advertising within apps, working as live links, if you tap on the image banners shown in the app you'll be redirected to the web page origin of the app for browsing of it's products and services. Some apps also lead directly to app downloads e.g the Amazon app.

{Left: The DailyHoroscope App, Nike Advertisement Shown - Right: Pic Jointer App, Amazon Advertisement Shown}

In app purchases are usually more popular for games, in which you can purchase extra "lives" (turns) and in-game bonuses (more points!) 

{Candy Crush since it's release has harboured over half a billion downloads on Facebook and as an app.}

"70% of the people on the last level haven't paid anything. It's designed so you can complete the game," says Tommy Palm, whose official job title is "Games Guru" at King, although his role is more akin to a head of global studios for the social and mobile games publisher."We focus internally a lot on the player experience, making sure it's really fun to play. And we do not differentiate between people who pay and people who don't: we just see them as players, and optimise in making sure the game is really fun. So far, that's been a great strategy for us."

[Source -  Dredge, S. (2013). Candy Crush Saga: '70% of the people on the last level haven't paid anything'. Available: http://www.theguardian.com/technology/appsblog/2013/sep/10/candy-crush-saga-king-interview. Last accessed 5th December 2013.]

For My Research

The Store Pass app will initially be free, much like Voucher Cloud and Groupon as I believe with restaurants and stores investing it'll be enough to cover the cost of the initial construction of the app. To test the market also the launch should be free, users should be encouraged to download and then from it's success it can be a paid app. Like a multipass discount card, similar to how railcards work, if you use the app enough times you eventually earn back the £1 or £2 that you'll be asked to pay for it. People will see past this small cost and continue to download and use the app.

With the right marketing and promotion, this app could be released and working then earning money back at the low cost of make. 

Resources used:

http://appdevelopermagazine.com/895/2013/12/2/Monetizing-Your-App-with-Game-Offers/

http://www.pureoxygenmobile.com/how-many-apps-in-each-app-store/

http://mashable.com/2013/09/12/popular-smartphone-apps/

http://www.pcpro.co.uk/realworld/381058/how-to-make-money-from-apps

http://www.forbes.com/sites/tristanlouis/2013/08/10/how-much-do-average-apps-make/

http://e-string.com/articles/9-ways-monetize-your-ios-app/

The rise of Apps.

"Apple's App Store boasts 585,000 apps with 1bn downloads a month"

- [Source - Thornhill, H. (2012). Apps have overtaken the Web in popularity according to the latest statistics (actually, there's probably an app to tell you that) Read more: http://www.dailymail.co.uk/sciencetech/article-2119332/App.Available: http://www.dailymail.co.uk/sciencetech/article-2119332/Apps-overtaken-Web-popularity-according-latest-statistics-actually-theres-probably-app-tell-that.html. Last accessed 30th Nov 2013.]

[Source]

Apps have existed since before the iPhone but wasn't popularised since the release of the first ever iPhone along with the app store in 2007. The rise of such apps quickly overtook everyday life just as much as the internet for it's ease of use and convenience. Basic apps like alarms, calculators, calendars and notepads are used by all smart phone users. As the technology of apps advanced many more things became possible with standard mobile devices; You could keep up to date with the news, network with your friends, check your bank statements, use GPS, purchase items and even sell items [eBay] just with one mobile device. Research suggests that nowadays apps are even more widely used than web browsers since an individual with no laptop or computer could purchase a tablet and experience the same services in the internet for a lower price.
However this may only be true to a certain demographic for example the more mature audience. Technology evolved so quickly in the past 50 years that laptops and computers are now often complex machineries that the older users find hard to navigate around. Apps are far more practical and cleaner than a lot of desktop computer systems. Also tablets are cheaper.

Apps may be easy to use but they're just as easy to use with the amount of the resources available on the internet. An App license is $99 (around £60) per year and comes with an iOS SDK (Software Development Kit). This innovation has not only improved the lives of many, but also the businesses of huge companies like Asda, Tesco, Sainsburys. On the high street also for retailers such as Topshop, River Island, Forever 21 and more. But don't take it from me, hear more about the ease and accessibility of App development and it's future from 12 year old Thomas Suarez who appeared on TED talks which is " a nonprofit devoted to Ideas Worth Spreading. It started out in 1984 as a conference bringing together people from three worlds: Technology, Entertainment, Design. Since then its scope has become ever broader. " [Source]

Not to belittle the intelligence of 12 year olds but if this success with apps can be accomplished at such a young age, it's incredibly inspiring to think how far the boundaries of app development and technology can be pushed when backed by a house of creative ideas and the right technology.

I'd like to leave this post on a high note with one last motivational story: A man crafted his $6 billion empire from his hospital bed which began with the necessity of paying his hospital fees.

[Source - Chun, J. (2012). Chad Mureta Of App Empire Started His $6 Million App Business From A Hospital Bed. Available: npost.com/2012/06/20/chad-mureta-app-empire-6-million-business-started-in-hospital_n_1607456.html. Last accessed 30th Nov 2013.]

Innovation. What is it? How do you innovate?

  

Rei Kawakubo.
http://www.comme-des-garcons.com/
Portfolio: Comme Des Garçons est. 1969
We live in a world where acceptance is beautiful. Open minds are the most intelligent, and to embrace is to learn.

Rei Kawakubo's innovation was her approach to fashion, or rather, anti-fashion. In 1981 when Kawakubo arrived in Paris ready to showcase her collection for Comme des Garçons, fashion critics dismissed her (lack of) use for colour as dull and her distressed and asymmetric cuts as ridiculous.

During that time, French designers were most influential and believed that fashion should be excessively decorate, feminine and bright. Kawakubo’s collections of ‘Anti-fashion’ “challenged the notion that fashion was meant to beautify or to be beautiful.”

"Rei Kawakubo has refused to accept stereotypes in fashion. AMONG the plethora of international labels that biannually produce fashion according to what’s written in the stars, Comme des Garcons stands out simply because it doesn't give a glossy toss about fitting into the conventional world of style."

[Source - N/A. (2004). ANTI-FASHION DESIGNER. Available: http://forums.thefashionspot.com/f60/anti-fashion-designer-6240.html. Last accessed 20th November 2013.]

Through her undying passion she has now become one of the worlds most succesful fashion designers and continues to pioneer through the fashion world today. One of her most famous stores to name, the Dover Street Market is a collective hub of some of fashion's biggest brands and often showcases art exhibitions.

Jonathan Ive.
http://www.jonathanive.com/
Portfolio: iPhone, iPod MacBook Pro, iMac,MacBook Air, iPod, iPod Touch, iPhone, iPad, iPad Mini and iOS 7
British product designer Jonathan Ive can be remembered as one of the key people who aided Apple's flourishing company. He's done so since 1992 and continues to release and evolve products even today. By perfecting every design and detail, ever since Jonathan Ive's rise, he has ensured that every Apple product is capable of flying off the shelves. The demand for such Apple products still exists today.
Ive has won several awards including:British Visionary Innovator award for 2012, Design Museum's Designer of the year and 'Most Influential Person On British Culture' by the BBC in 2004.
Ive is truly innovative in the way that he's led the market for smart phones, tablets and completely revolutionised the market in that aspect. He's highly respected in the technological world and is dubbed by some - a true genius. [Source]

This short documentary video discusses a brief history of Apple's computer technology and design. Features Stephen Fry and Jonathan Ives.

James Dyson.
http://www.dyson.co.uk/
Portfolio : Dyson Hoovers
Perhaps one of the most well known inventors in the world, James Dyson is the creator of aptly named Dyson Hoovers which tackled the need for a hoover that doesn't loose suction as it picked up dirt.
Dyson Hoovers boast "Dual Cyclone bagless vacuum cleaner, which works on the principle of cyclonic separation. In laymen's terms, James Dyson invented a vacuum cleaner that wouldn't lose suction as it picked up dirt." [Source ] 

The inventor is advocates and promotes the education of engineers. In 2002, James Dyson set up the Dyson foundation which nourishes and inspires young designers of Britain. Individuals involved in this foundation are also legible for entering and winning the James Dyson Award which receives the backing of industry professionals that recognise the brilliance of the idea presented and gives £2,000 in the aid of manufacturing and researching such products.

Here James Dyson imparts a few pearls of wisdom to do with innovation, engineering and the industry of product design and development.