February 15, 2018 - No Comments!

5 Golden Rules for Product Development

As you probably know, bringing innovative products to life and creating hardware devices is a complex task. It takes few months to make a perfect market research and analyze a demand for that product. Then it’s time to think how to generate a perfect solution and verify correct operation at the prototyping stage. And of course, it doesn’t happen in a blink of an eye.

A methodology of creating innovative products and services based on deep understanding of the problems and needs of the users is not a short-term process, and it needs a decent construction. Structuring to the process of design thinking let us solve complex problems by understanding users’ needs. What’s more, it allows re-framing the problem in human-centric ways, creating ideas in brainstorming sessions and adopting a hands-on approach to prototyping and testing. In other words, this structure lets us define our 5 golden rules of creating products desired by users, technologically feasible and economically justified. So how to design a great hardware for a product?

Creating a product -  step by step

  • Empathize. Innovation starts with empathy

New solutions are created mainly for people. That’s why the first point is to gain an empathic realization of the problem you are trying to solve. You have to conduct research to develop an understanding of your users. It is crucial to recognize the hidden and intuitive motivations that affect human choices and behavior. You have to know what your future consumers need and gain perfect knowledge about similar products. Which of them have not succeed? Why? What made the others succeed? Follow the “must-do” actions and avoid competitors’ mistakes.

  • Define the problem and get to know your customers

During the defining stage, together with your team you combine all your research and observe whether a problem exists. You need to check if your future client needs your solution. What’s the main value of it? Is the price affordable? Or will your customer use a cheaper product from your competitors? Try to frame the problem correctly so that you will gather more certain data and good solutions.

  • Generate the ideas and brainstorm with your team

This stage involves generating as many crazy and creative ideas as possible. Your team members have to ‘think outside the box’ to identify new solutions to the problem statement you’ve created. Remember not to ignore ideas that seem obvious or easy — they can turn out to be the brilliant ones, if only you focus on them. To finalize this stage, write down the best ideas and try to test them to find the correct answer.

  • Build a prototype which will meet the expectations of customers

At this stage you have to build real, tactile representations for your product. For now, don’t make things more complicated than necessary. Your top goal is to make a prototype that is visually ready to present the idea to users and quickly gather feedback on the solution. The final shape of your product needs to be designed and built according to the user feedback and with a particular focus on their tips or needs they’ve described. This brings us to another point…

  • Test the product and eliminate all the inconveniences

The stage of testing is extremely important and should not be overlooked in the course of the project. This is the moment of confronting the idea of a product design with its users. You have to prepare a well-working device. Feedback has the greatest importance at this stage because it enhances your involvement in the product growth. If the users love the product it means that it's ready to entry the market. But if they flag some inconveniences, it’s up to your team to get back to the third point and figure out new ideas for your users' satisfaction.

Published by: admin in Uncategorized

February 12, 2018 - No Comments!

Our Year in Review

May 12, 2017 - No Comments!

Monetizing your free app

Text by our friends from Gummicube – leader in providing App Store Optimization and App Store Intelligence

While every app developer wants to say they made a successful app, the fact remains that they still need to turn a profit. There are many ways developers can go about monetizing apps, and each strategy comes with their own form of success depending on the type of app. But how does a free app make money?

Apps can use a variety of options to improve their revenue stream, and the three most common forms of monetization are:

  • Advertisements
  • Upgrading to premium
  • Microtransactions

While these forms of monetization are the key to increasing any app developer’s bottom line, they still beg the question of how much money can be earned?

Monetization Broken Down
Even though the above methods of earning money apply to any form of “free app,” let’s look at one type of app fares. Mobile games, which are often offered for free, tend to make millions and even billions of dollars each year; while the games industry generated a little over $108 billion in revenue, mobile games accounts for over 54% and generated $59.2 billion.

While the exact numbers will vary from person to person, the average user spent around $35 on “freemium” games and apps in 2016, and that number is only expected to rise. Around 47% of the in-app purchases or premium upgrades people bought cost between $9.99 and $19.99, and around 6% cost between $0.99 and $1.99. For mobile games, however, around half their profits came from the dedicated players, around .15% of their users, who were willing to constantly spend to get ahead.

So how can other apps besides games put these monetization efforts into practice? Let’s break down each type of effort and how it can help app developers.

Monetizing with Advertisements
Advertisements are exactly what you would expect: banners ads or commercials that show up in the app. Ads can be:

  • Small, unobtrusive banners at the bottom of the screen
  • Pop-ups that show up every couple of minutes
  • Large videos that show gameplay or UI and more

The more clicks they get, the more developers earn, but too many ads will drive users away.

One way apps try to entice their users to stay is by including in-game currencies that often make viewing advertisements optional. In return for watching a 30-second video ad, the players will receive a small amount of the game’s currency, encouraging them to view the ads regularly. This in turn brings profit to the developer, advertisers and the users.

Upgrading to Premium
For many apps, free versions provide just a small sampling of all the features the app can offer. All other features are locked behind a “premium” paywall. So while a user could very well enjoy the app for free, the temptation to upgrade to premium grows more appealing the more they use it.

Often times, apps will offer free versions with advertisements, or premium versions without any. That may be the only difference, or one of several, but some customers will be willing to spend a dollar or two just to make the advertisements stop. The goal is to encourage users to upgrade to premium, not to pester them in to it.

Take, for example, Spotify – the app is available for free, and the unpaid version offers optimized playlists, recommendations, and full-length songs to anyone. However, there are some caveats: free users can only skip songs so many times per day, and short advertisements will play between songs.

As a result, Spotify sees a stunning 27% conversion rate, turning over a quarter of all free users into paying customers. Given that the industry average is closer to 4% conversions, Spotify’s success is nothing short of impressive.

Microtransaction and How They Work
Microtransactions are purchases made available within the app to provide certain enhancements or in-game currency at the cost of real money. The prices can start off small to nearly a hundred dollars for a far more significant amount.

Microtransactions are everywhere within mobile games, from casual phone tappers to the most intense of action games. “Candy Crush,” one of the most popular mobile games, earns hundreds of millions of dollars annually through microtransactions. They can also be seen frequently in mobile apps referred to as “gacha games,” short for “gachapon,” the Japanese term for vending machines that offer little toys in capsules. Players can slowly earn currency by logging in and completing events
over time, or they can spend actual money for a larger quantity at once.

Developers need to be careful as some apps that offer microtransactions have recently come under heavy criticism due to users spending large sums of money without the guarantee of succeeding, if your app is a game offering any sort of “loot box,” be prepared for the controversy.

Key Takeaways
Now that developers know the different forms of monetization, they simply must ask:

  • What kind of app are you providing?
  •  Is it one where a few ads on the side won’t interfere with the user experience?
  • Can you offer premium services without crippling the free version?
  • Would users be willing to spend repeatedly to gain new features?

Consider what services the app offers, and what it’s worth to the users. From there, developers will be able to figure out what monetization option is right for them.

Published by: admin in blog