During the last couple of weeks I have attended several apps conferences. A number of executives from telcos have appeared, to talk of the importance of detailed subscriber information and operator billing; device makers have trumpeted the benefits of tight hardware and software integration; and the great and the good from the developer community have shared their experiences on the best ways to create apps, and how to make money in a competitive marketplace.

The tone changes noticeably, however, with the arrival of executives from the ‘brands.’ A number of marketing executives, complete with iPad and sharp suit (strictly no tie, though), stand up and talk customer engagement and demographics. But rarely, if ever, do they talk about the quality of an app. The idea of the app as a way to increase the reach of the brand is first and foremost; the utility to the customer comes later.

Not that long ago I was talking to the editor of an online retailing publication about the iPhone app of a major international retail chain. It was, effectively, a shopping list of omissions. Clearly it had been decided by the execs that an app was needed. What that app would do, and how it would benefit customers, seems not to have entered the equation. It worked on an iPhone, it had some pretty pictures; surely that was enough?

As apps move to the next stage of their life, customers will become more and more familiar with sophisticated products integrating location-based services, transactional capabilities, and social networking support. In addition to a number of great apps created by amateur developers, a number of serious media companies are offering increasingly sophisticated products, all designed to deliver the best user experience to the customer. As this happens, a poorly-defined brand-app will stick out like a sore thumb, with the precious brand equity tainted by a sub-standard user experience.

That is not to say that the involvement of brands in the app ecosystem is a bad thing – far from it. They are cash-rich to fund developments, and are not necessarily looking to generate massive profits directly from an app, instead seeing the benefits of an additional channel to customers. Their knowledge of their customer base can be extremely useful in defining the features and functionality that may appeal. In addition, the deft use of loyalty schemes and discounts can actually increase revenue, with customers feeling valued and therefore less likely to head off in the direction of a rival. And brand support can help an app stand out in a crowded marketplace.

But this does not alter the fact that first and foremost an app should provide some value to the user, which then reflects well on the supporting brand.
 

Steve Costello
 
The editorial views expressed in this article are solely those of the author(s) and will not necessarily reflect the views of the GSMA, its Members or Associate Members