Leader’s Blog

Apple has decided to allow in-app purchases from free iPhone apps.  Previously purchases were only allowed from paid apps.  I think this is a good decision on Apple’s part.

It benefits the consumer from a user interface perspective because it eliminates several steps in the process in getting from the decision to buy to actually making a purchase.  It also eliminates the need for users to go back and delete the old app after installing the paid version and having to login to the new app as a new user.  All of that information will be maintained now.

There is benefit to Apple in this scenario as well.  Many users may not even be aware there are paid versions of the apps they enjoy with more features.  By giving users a quick and efficient way to upgrade a free app to the paid version not only informs the customer of its existence but it also helps reduce the chances a customer will abandon an unnecessarily complicated transaction.

I also like the opportunity for opening up payment gateways to third-party transactions in free apps. A good example of this type of app is the Chipotle ordering application that is a free app but allows you to order and pay for your order direct from your iPhone.  I see lifestyle applications like this one really taking off as a result of this expanded opportunity.

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Two points of interest and inspiration were gained from this article.

One, it is good to see Wind Mobile is taking a differentiated approach to media buy and placement by investing 25% in a viral video campaign. Interactive marketing continues to overshadow traditional advertising as the preferred way to experience brands. More importantly, the increased spend in this channel catapults Wind Mobile into a space few geo-specific competitors have navigated well.

Secondly, I love the creative concept behind the campaign. It positions the company as “the people’s” carrier by connecting with the audience practically and emotionally. Throw in the aspect that the strategy involves social media and Wind Mobile empowers the audience to pass on the story to others – people spread the word and customers begin to shift.

Really great illustration of what can be achieved through an intelligent shift and use of spend.

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I enjoy an article that gives you a “sneak peak” on what it takes to power a site like Gilt.com.  Most people never think about things like that (naturally I do).  We just expect the site to work when we want it to work.

To those of you unfamiliar with Gilt.com, it is a membership only site that offers short term sales (usually 24 hours) on a limited amount of discounted luxury merchandise.  Recently it has expanded to include a site geared to men’s apparel, a travel discount site, and a site offering emerging designer brands of apparel.  Members are notified about the sales via email each day where they can log on to the site, view the merchandise, and make a purchase.

That is where the challenge lies.  Each day Gilt.com accommodates large spikes of traffic activity as their customers receive their emails and logon for deals.  The article explains how they have leveraged JRuby to power the seamless experience that the customers have come to expect and their business depends on.  The success of their operating model depends on their customers being able to access the merchandise quickly and complete a purchase.  If navigating the site and the checkout process was slow customers would quickly miss out on the fast selling merchandise and not return in the future.  The fact that Gilt.com has been able to create a visually appealing and stable user interface is beneficial for getting the customers what they want immediately and keeping them coming back for more.

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As more web searchers bypass the typical search destinations to utilize search engines within their social media websites, Google and Bing offset the shift by announcing plans to incorporate social search into their search tools – an excellent counter move.

Interestingly this mitigation effort will quickly turn into opportunity for Google and Bing’s online advertising products. For example, Google will begin to spider an individual’s friend’s social media posts – let’s say on Twitter. In one of those Twitter posts, a friend mentions their admiration for a new Nike shoe. Google can seize this opportunity to position its ad words advertisement product in close proximity on the page and direct browsers to the product page on the Nike e-commerce website – resulting in a paid click when the searcher click’s the link to view the product their friend adores – a profitable outcome for Google.

And an even better outcome for the brand – in this case Nike. Along with extension of the Twitter viral marketing, Google’s social media search mechanism also delivers additional advantage that the ad display was based on recommendation by a friend – an influencer. This type of referral will often result in a shorter sales cycle for Nike. Furthermore, thanks to Google’s evolved ad word placement, Nike is positioned directly where the customer is when their interest is peaked and the customer is most likely ready to interact – an absolutely incredible opportunity for a brand.

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