Store Pass and it's Competitors.

Though I've mentioned in some previous posts that Store Pass's greatest competitors would most likely be Groupon and Voucher cloud (but only indirectly). Along my research I discovered more apps that enhanced shopping experience but none in the way that Store Pass does. But by collecting information on these apps, they can all contribute to enhance and perfecting Store Pass.

So who are the competitors and what do they do?

Let's start with the most well known ones.

• Groupon

Groupon is an American company that, due to it's success has now expanded globally. Rapidly overtaking America, Groupon soon interested the capitals of Europe and Asia also.
To reiterate the above video, Groupon (the combined words of Coupon and Group) distributes large savings and offers by encouraging users to book activities with friends. For example, if a Spa was offering 70% but required 10 individuals to sign up, these 10 individuals would have to all pay in order for the deal to "activate". If they don't reach the quote needed by the time the offer expires, all customers get their  money back.
The unique selling point of Groupon is that it works in numbers, by urging consumers to bring their friends to events, companies are guaranteed a large numbers of customers. This helps with company footfall, free marketing via word of mouth, a great deal and gains customer loyalty.

These numbers are correct as of 2012 and can be assumed to only have grown:

• The company has now sold 170 million Groupons to date and counts 33 million active customers and 250,000 merchants in 48 countries.

• In 2011, $2 billion in business sent to “Main Street” small merchants.

• Also in 2011, 11 new products launched, including a several that take the company away from the daily deals format Groupon Goods, Getaways, Rewards, Now!, and Scheduler.

• 11 acquisitions, including several in the mobile space in the year.

[Source]

However it's not always been smooth sailing for Groupon as it fell victim to it's own success with consumers placing more orders than expected for some companies.

• Vouchercloud

[Source]

Vouchercloud is the virtual take on the good old days of cutting coupons out of magazines and newspapers. Before internet discounts for your local restaurants and boutiques were invented, if an individual wanted to use a discount or coupon, they'd have to cut it out of cereal boxes and other packaging, but ever since the rise of Voucher cloud, that novelty has much been neglected as apps began taking over.

Compared to cut out and carry, Vouchercloud is:

• Always accessible as it's in app form inside your Smart Phone.
• Always up to date as updates are electronic and therefore instant.
• Location relevant and can be filtered via tabs in interests of 
• Does not require a group interest like Groupon does.

• Living Social

[Source]

Extremely similar to Groupon, Living Social encourages individuals to urge their friends to partake in deals, which earns the individual money off their original discount or purchase. Living Social states that "We help local and national businesses grow by introducing them to high-quality new customers. We deliver compelling and cost-effective marketing solutions for businesses large and small and provide our partners with the tools to make our members their regulars." 

Living social offers discounts from local activities, to small getaways and coupons for shopping.

Covering all platforms of smartphone, Living social is also available on the App Store, Google Play and Windows Phone - demonstrated above.

However Living Social seems to be quite hit and miss from the reviews read on this site. Another site gives the same idea of disappointments by Social Living.

Those are what I believe to be the top three competitors for Store pass.

I've also looked at other discount apps/websites and comparison sites for a richer understanding of how they work. An extremely comprehensive blog has put together a lost of the Top 20 Mobile Shopping Apps can be viewed here.

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.]

Beginnings and blue sky thinkings | Initial Ideas.

For the purpose of my dissertation project I’ve been trying to keep myself inspired. Whether it be in creative, political or literal fields. Well I try to keep myself inspired regardless, actually. Initially I wanted to create a really abstract project but deterred by the difficulty of that I began looking into more practical ideas that I can see working.
I always try to flaunt my geeky side whenever I can, yet, I hate any item of clothing branded GEEK or NERD worn by seemingly hipster and obviously “cool” girls. But that’s another topic.
Being an avid player of Nintendo consoles and following the evolution of the DS from the very original to the 3DS I became inspired by a feature that the 3DS had, known as “Street Pass”.

[Source]

[source - Nunneley, S. (2013). Nintendo Zone StreetPass enhancement hitting North America in a few weeks. Available: http://www.vg247.com/2013/07/18/nintendo-zone-streetpass-enhancement-hitting-north-america-in-a-few-weeks/. Last accessed 26th Nov 2013. ]

StreetPass is a feature present in every Nintendo 3DS system that allows users to exchange data from games & applications that the two own. It is on regardless of whether the 3DS is in sleep mode or not (though the system itself must be on), and automatically acts when another 3DS user walks within the console’s range. With it, players can acquire new features in games that they own (even if the game’s card is not presently in the 3DS card slot) and obtain the Miis of 3DS users that walk past them. If one wishes, they can turn the feature off completely or assign the games that they want it to work with. Several games have made use of this function in unique ways.

- Source N/A. (N/A). StreetPass. Available: http://nintendo.wikia.com/wiki/StreetPass. Last accessed 26th Nov 2013.]

The function is basically a new way for fellow DS owners to interact, communicate and earn points in games with minimal effort. This encourages the expansion of the DS community. However gaming is very little linked with my initial idea.

My initial idea was to use the StreetPass functionality but as an app. This app would be developed so that information could be transferred with the simple passing of someone else with the same app. I first suggested and flirted with the idea of a business card exchange which would allow users to create a database of local professionals and talent to help expand their business or to help an individual find their niche in a hiring company. Also, to avoid spam e mailers and or pranksters, an account would have to be created and then interests that are genuine would be forwarded to a user at which point the user can choose whether or not he/she would like to disclose personal information, such as number and/or email address.

However technology similar to this already exists via an App named Bump. Bump allows the near immediate transfer of media and contact cards. However requires the physical motion of bumping and connecting that way.
If the street pass / business card swap idea had been set in motion  the app would cut out the middle man and not require any physical communication as you'd be unknowingly collecting information whereas with Bump you'd need to know the person before taking their contact details.

"How does Bump work?There are two parts to Bump: the app running on your device and a smart matching algorithm running on our servers in the cloud. The app on your phone uses the phone's sensors to literally "feel" the bump, and it sends that info up to the cloud. The matching algorithm listens to the bumps from phones around the world and pairs up phones that felt the same bump. Then we just route information between the two phones in each pair."[Source] For my next idea I considered this type of technology and it's compatibility with it.

{Image & Video Source}

The (business card) idea quickly crashed and burned after some speculation and speaking to a friend (God, I hate talking to him but he’s just so helpful) who was working in industry and had a fair amount of business know-how. He refuted the idea saying that people would be able to do the same thing on LinkedIn, the only USP would be the passing and that would not be enough to encourage people to download said app.
He then helped me construct a different idea using a similar functionality but for retailers.
The second idea I guess could be called a Store Pass. The way this would work is that an individual with the Store Pass app would literally pass by a high street retailer (this isn’t just limited to clothing retailers but for the purpose of this scenario and project, let’s just focus on that) and then the user would be alerted or ‘pinged’ with a limited time offer.
E.g Purchase any item(s) over £20 within the hour and receive 20% off!

The fact that the buyer is limited to an hour of purchase makes these offers exclusive and adds an element of fun.
Pings like these would increase footfall within a store and encourage impulse buys. If someone was browsing and idly walked past a store that they regularly shop at, they’d be more inclined to browse, knowing they had an offer to use, exclusive to themselves.
After pitching this idea to the peers on my course they were worried that they’d be pinged all the time everywhere they went and would become annoyed with the app and switch it off. My counter-argument for this is that since the offers are exclusive and mainly timed they’d only receive a maximum of 1 ping per store, per day.

This also ensured that stores that weren’t doing as well in certain departments or even cities could send more pings, or more encouraging pings. For example, Topshop in Oxford Circus could be doing extremely well in selling jewellery and accessories but Topshop in Birmingham could be lacking. So in an attempt to balance the sales out, Topshop Birmingham could ping about an instant accessories flash sale to some users which would help improve sales in that department.

So concludes this post in intial ideas as I attempt to conduct more research to backup my thesis!

Ideation.

The combination of the words idea and generation. It’s the beginning of everything. It’s where innovators begin innovating. It’s the blank canvas of the mind, waiting to be filled with the past, the present, the future and the needs of an individual and the masses, today.