marketing

Your iPhone App is a 99¢ Lawnmower

Vlasic, one of the world's top pickle producers, delivered a top selling item to Walmart — a gallon of pickles for about $3. It was huge, Walmart shoppers went pickle crazy, and bought them by, well, the gallon. The only problem was that the gallon jugs of brine were only minimally profitable — picklers make their real money on cut and prepared pickles. But Walmart and Vlasic were caught up in the pickle-fever, and Vlasic ignored the shrinking margins as their business shifted from premium gherkins to dime-a-dozen salted cucumbers. Finally, Walmart's continued pressure to lower the cost of a gallon of pickles, and the total loss of more profitable business, forced Vlasic into bankruptcy.

Simplicity Manufacturing, a premium lawnmower manufacturer, was offered the opportunity to become Walmart's house brand of lawnmowers, guaranteeing millions of sales. But that would have watered down Simplicity, forced them to lower their standards, and to reduce their profit margins. Ultimately, they said "no," and continue selling high priced and high quality lawnmowers today. They haven't filed for Chapter 11.

Your iPhone application is a shiny red lawnmower, and you're selling it for 99¢ a gallon.

It would be flattering to call the App Store Walmart on Black Friday. Sure, it generates a ton of traffic, but that traffic is a bunch of sweaty bargain hunters digging through endless shelves of games and applications, guided by $1 flashlight applications, haphazard search and vague and untrustworthy reviews. It's a great place to sell if you're willing to sell your app at the absolute lowest possible price (quality be damned!), and be in cutthroat competition with the next guy who can give the Walton family some pickles for half a cent less per gallon. Unless you're as good at the low price game as Walmart, you'll be in a race to the bottom.

Remember Simplicity and their shiny red lawnmowers? Not only are they unavailable at Walmart, they're also nowhere to be found on Amazon, or at Sears, or most anywhere else. They're sold exclusively through certified dealers, each of which is equipped to be a full service support shop for the mower. There are two such dealers within 100 miles of my house. But that's all right, because if I'm going to spend over three grand on a lawnmower, I'm happy to make the trip.

You've got this great application that's well worth a premium price. Why are you trying to draw people in who are window shopping at Walmart's app store? It's time to to quit bitching and build your dealer network.

Start with your own storefront — make it a killer website with the sort of depth and trustworthiness that makes people happy to shell out a thousand bucks to upgrade their copy ofAdobe Creative Suite. Heck, make ten killer websites, each targeted at a specific market segment or use for your app. Or give away a thousand copies of your app as coupons in MacHeist-like promotions to get the word out. Put a quarter of your money into advertising and search marketing. Get endorsements from the people in your very particular market niche telling other enthusiasts and professionals how critical your app is to their lives. And keep investing in quality, design, and support, the last thing you can afford is customers who feel cheated. 

Yes, this costs money, and time, and has huge risks. Welcome to the world of business. And seriously, what's the alternative…?

Pickles, that's what.

Community and Independent Developers

This morning, I posted an article that was highly critical of Matthew Drayton’s management of the Interarchy file transfer application since he, as Nolobe, purchased it from the original developer. Specifically, I was frustrated with the lack of communication and shutting of communication channels between the big 9.0 release and the much-needed 9.01 bug fix which just came out.

Only a few hours after I posted this article, Matthew contacted me to apologize for the release and also to explain the circumstances which made a timely release of 9.01 impossible. As my criticism was both public and unjustified, I’ll apologize here, publicly, for this criticism. I have also unpublished that article.

However, beyond the specific criticism, it does demonstrate the importance of maintaining open communication with your customers. While most customers respond favorably to open communication, I think it’s especially important for small and independent companies, including independent software developers. This is probably even more important for independent developers who sell exclusively online, since their customers are much more likely to be part of the blogging/forum posting/twittering crowd.

People who purchase from independent developers act like grass roots supporters of a political campaign. Whether or not it’s justified, they feel that they are on a first-name basis with their favorite software’s developer, and they tend to especially watch new products from the same company.

This relationship is based on trust and communication. Those developers who actively maintain blogs, participate in forums, or who simply email quickly and responsively to requests can generate very passionate users. (Even if their software isn’t terribly high quality!)

Of course, those supporting customers come to count on this open communication. If it breaks down, it can leave customers feeling abandoned, and make them lose faith in the developer and their software. It can cause them to cease upgrading or even to defect to other programs. And, of course, there’s the beatings that an unresponsive developer can face on forums such as VersionTracker and MacUpdate.

What some developers overlook (and, again, I am not picking on Matthew here) is that this intimacy is a two way street. Just as the open communication helps users learn to use their software better, it is also a fantastic tool for priming the market for new updates and new products. And, perhaps even more importantly, it creates opportunities for the developer to get their users’ aid when they need it. Whether that’s a request for patience on an overdue update, advice on where to move web hosting to, or to gather a group of volunteer beta testers or even contributors. (documentation wiki, anyone?)

When Nolobe went “dark,” and stopped posting to blogs and pulled its forums, I lost confidence in the company and the software. I hadn’t upgraded to Interarchy 9 and was still using 8 until a less buggy version was available. Even though the developer was doing his utmost to get that 9.01 update out the door, it took a few months.

In the grand scheme of things, that isn’t much.

On the other hand, I’ve been using Interarchy (well, Anarchie and then Interarchy) for more than ten years. Seeing it change owners and then become unreliable on the next update is something else entirely.

Should Matthew have posted, at a minimum, a blog entry saying “It’ll come out later, please be patient?” It couldn’t have hurt. When a favorite restaurant is closed, you at least expect a sign saying when they’ll be open again — whether that’s tomorrow morning and you just caught them outside of business hours, or if it’s in a few weeks while they renovate.

Sometimes a person doesn’t even have the time or energy to even do that much. But for the users, the faithful supporters of a business, that note can mean everything.

Want proof? I just purchased the Interarchy 9 upgrade I’d been holding off on.

I didn’t buy it by way of apology for my undue critique. I bought it for two reasons: It fixed the bugs that made me hold off on the upgrade in the first place; and Matthew’s prompt and charitable email, even after my harsh criticism of Matthew himself — not just his software or his company. This email restored my faith in Matthew and Nolobe as stewards of one my mainstay programs. After all, what could be more personal and intimate than that personal email?

Web optimization made easy (sort of)

A very, very, interesting new product from Google just launched: Google Website Optimizer

They boast that it can perform multivariate tests of landing page content in order to increase website conversions. In non-marketer speak, that means that you can send people to different versions of your website’s landing page, each with a different mix of text and graphics. You can then track whether or not you got a purchase/registration/subscription from each person who landed, and thus quantify the added benefit of each different combination of web page pieces.

Syndicate content