Don’t Build An App
One thing I wish I didn’t hear anymore is “what do you think of my idea for an app?”
I can keep this one quite brief:
Don’t build an app.
The opportunity has gone, building an app is no longer the default.
Lots of people are already on this train, but I still keep hearing the “I’m raising money to build an app” line and I feel like there’s a massive disconnect between those who have spotted the signs and those who are just getting started.
Why Shouldn’t I Build an App?
There are three main reasons:
Our habits and inertia
Opportunity cost
Demand
Just as a human being - user or consumer - take a look at the apps you have open on your phone. How many of them have you downloaded in the last month, never mind three years?
We are stubborn beings, and it takes a lot of convincing to get us to change our ways.
Creating an app now that people will download, and use is a multi-layered challenge that takes a full team.
You don’t just need the technical skills to create the app (although this part is arguably getting easier thanks to the no-code revolution), but more important are the product management and comms roles required to get it to stick.
The cost investment required to build the thing needs to be backed up with the expertise that makes sure you’re building (and prioritising) the right things for the right people, that they know about it and tell all of their friends.
Even if you do build an app, and get people to download it, you have the next challenge of getting people to keep coming back.
Whether it’s new features, new content, promoting it, maybe it addictive (and balancing the line), or having some kind of regularity to its use or requirement, it’s no good overcoming the hurdle of getting it installed if it never gets used.
You then have all of the upkeep, maintenance, bug fixes, patches and coping with annual software updates. It becomes the thing, not your core service or business.
There’s sunk cost (read one & two), and then there’s needing an asset to pay you back.
If you’ve put all that time, effort, and cash into building it then you won’t feel like you can drop it without a thought if it isn’t working out.
You’re more likely to persevere, and it’s hard to know when that perseverance is unwelcome.
If you’re one in a thousand it might be that you need an app - but don’t be the judge of that yourself.
We covered that two weeks ago.
Back to the stubbornness, inertia is a simple concept. Nothing starts, stops, or changes course on its own without an external force.
The best way to get through that inertia is to influence or address the behaviour change, but that isn’t so easy.
We had the first rush, where all the low hanging opportunities were realised and that gave a lot of hope that it would be easy for everyone to get in on the action.
Now, network effect leads people to use new apps and platforms. It’s the one which is growing so fast that those who are already there must know something, or that your friends and family are already at.
What Does Your App Give People?
Can having an app help your users do things faster or better, easier or cheaper?
The important thing here is that the app is no longer the thing. The thing is the thing, and the app is the way to access that thing.
What I mean by this is that in the late 00s the app was the novelty. Having, launching, or developing an app was a gold rush.
Over the last decade things have sophisticated a lot. Today, the app is just one window to access the tech solution.
It’s an interface, as is Alexa, a website, your watch, your in-car entertainment system.
Each interface has its own role and limitations. When I’m checking my football scores on my watch I just want the information quickly, I don’t need a screen full of stats and what the possession is looking like. Similarly if I’m asking Alexa what the weather is, I don’t want to be asked to confirm if I mean today, or if I mean at home, I just want that info fast.
If I’m browsing AirBnb I might use my phone, but if I’m making a decision I’m more likely to use my laptop or iPad to get a better look at the images and keep more tabs open. AirBnb currently has a split of 42% of traffic coming from traditional computers and 58% from mobile (according to Semrush in May 2023).
If you build an app, it will be a window into something else. Creating a simple web app or progressive web app can help you test how people want to engage with what you do.
Cardboard Cut-outs
I want to make one quick final point on technology and our hope that the more we innovate the more we can gain an advantage.
There’s a technology company which has built a very successful reputation on using out of date technology to create products that inspire and outsell their much more advanced competitors.
Nintendo is a 133-year-old company that has profit margins that their competitors could only dream of.
There’s a story of a member of the team coming to Gunpei Yokoi - the Chief Engineer - with news that Sega had announced the Game Gear which could potential be the killer for their Game Boy. Yokoi asked about the specs and then said they needn’t worry - they’re doing something totally different.
He was right, the Game Boy outsold the Game Gear by 11 to 1.
The Game Boy was seen as an embarrassment internally before it launched, with a nickname of DameGame. Dame translates as hopeless.
The Nintendo Wii and Switch were primitive compared to their contemporary competitors but you wouldn’t have much luck when trying to get your hands on one at Christmas. They struck a chord with their innovation and user-centred design, and reached new audiences for video games that Sony and Microsoft could only dream of.
Don’t assume you need to build the best version to be competitive. Being innovative, nimble, creative, and understanding the problem better is an advantage that means you don’t have to spend as much time and money up front, and if you get it right you can build something beloved.
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I hope this post finds you well…
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