MAKING DECISIONS BASED ON RESEARCH

If you're going to take the time and money to develop an app, you may as well make informed decisions to allow it the best chance to succeed. This section examines how to find key metrics that are available both in the App Store and via online resources, and then collecting and interpreting the data.

Although the statistics quoted earlier in this chapter provide a good overview, they are not anywhere close to being all-inclusive. Some meanings can be derived, however. So, before you get started with your research, here is a bit of analysis for the statistics presented earlier, as well as general things you can learn from them. Take these as rough guidelines, and feel free to be the exception to any of them:

• If you're doing a game, you will likely be charging the consumer less than any other type of app (free to $0.99 is the norm).
• iPad apps have a different price point, with users paying roughly 250 percent more per app than a paid iPhone app. Considering the ease with which a developer can port an app to iPad, it is usually worth the cost to deliver to both platforms.
• Price points of $3.99, $6.99, and $8.99 encompass a lower percentage of apps. So, if your app (after competitive research) can fit into one of these price points, it might help it stand out slightly easier. (“Archetype” was initially priced at $2.99.)
• Being in the top 100 to 200 apps gets an app on many more web lists, so aim for that.
• When doing competitive research on successful apps within your niche, be sure to note other apps by the same developer to see how that developer may have leveraged positioning, talent, or technology to build and market more apps.
• Because all apps have a 100-character keyword limit during submission, keyword density will be less in categories with fewer apps. (You learn more about keywords in the “Analyzing Successful Apps” section later in this chapter.)
• It may be easier to find a niche in categories other than Games. It may also be less costly to develop without a lot of art and special effects (mainly programming), and you may potentially realize more revenue from each app sold. It is logical to assume, then, that for the average developer, an app other than a game would be more feasible and possibly profitable to create.

  Obviously, don't let that stop you if you have a great game idea, because the potential is always there for the next “Angry Birds.”

Opportunity Size: Is There a Hole in the Market?

Later in this chapter in the section, “Analyzing Successful Apps,” you'll discover how to go about searching the App Store. Information about keywords and your notes on feature lists of other successful apps will help you to gauge whether there's an opening.

It's likely you already feel you know whether an opening exists. After all, you are interested in developing one of your ideas. However, don't make the mistake of assuming there's a hole in the market when there may not be. You'll want to use both Google (or insert your favorite search engine) and the iTunes App Store for this research.

So, how do you draw the conclusion that there is indeed room for your idea? Here is a list of some considerations:

• Is there a “successful” app (or more than one) in your niche already? If so, this might be a warning sign, but you'll need more information.
• Are you attempting to better existing features, or are you coming up with new ones? If you are evolving existing features, it becomes more risky, because you have fewer unique selling points.
• Is the category you're attempting to enter one of the most frequently downloaded? Table 3-1 should help answer that question. This just means more competition, but should not be a deterrent. It will only be a factor if most answers to other questions in this list are also “yes.”
• Are competing apps being recently updated? If you can answer “no” (or, “not too much”), that's a positive sign that the other apps may have run their course.
• Can you be confident that you can do one or more features of a competing app (visual, performance, or functionality) better than the competitor can?
• If you are first to market with your app, are you willing to take pains to ensure that you are giving it all your effort so that it won't be so easy to emulate or better? This includes art, functionality, programming, and so on. If your app is remotely popular, people will take notice and fill the niche quickly with apps that may be better (that is, should you have a good idea, but lack in execution).

Whatever your answers to these questions, the one thing you'll want to concentrate on is flawlessly executing your core features, so that even if some of the presentation is lacking, the functionality more than makes up for it.

If you don't yet have a niche picked out, don't worry. You'll discover some pointers for how to find one next.

Choosing Your Niche

Let's say that you just want to get in on the iPhone App Store action and don't yet have a niche, or you've already begun one app and are ready to start your second. How do you go about finding a new niche?

Innovation generally begins with finding a need that's not being met, for whatever reason. When you use a lot of software, you'll inevitably come across those apps that seem to do the job you want, but are lacking in one or more key areas.

Therefore, finding a need usually comes about either naturally (by being suddenly inspired with an idea and wondering if it's been done), or by normal use of everyday products (and starting to develop an entrepreneur's analytical eye by asking, “Hey, wouldn't it be better if…” types of questions).

A need can also be proactively searched out. In fact, that's exactly what the Google Keyword Tool is all about (https://adwords.google.com/select/KeywordToolExternal). Taking a lesson from search engine optimization (SEO) research, finding a new niche can be as simple as discovering an unfulfilled sector — in this case, keywords about a certain product that don't have a lot of competition, but bring about a lot of searches. Then, should you be driven to, you are ready to capitalize on that need.

So, for apps, you can go about finding a need via several approaches, including the following:

• Use the method-driven research described later in this chapter to discover an unfulfilled need. (User reviews are a good place to begin, as well as category and search bar searches on keywords.)
• Discover a need by using apps within your field of expertise, or those revealed as potential candidates through other research.
• For any interesting niches or appealing apps, perform competitive research by combing user reviews and even critical reviews for missing elements.
• Analyze successful apps to find out what they have in common in a niche. (You will likely need these features.)
• Analyze unsuccessful apps within a niche you are interested in to find out what went wrong.

You can wrap up your search by answering these questions:

• Is this something that is ideal for mobile use touchscreens such as the iPhone/iPod/iPad?
• Is this something that users would be better suited using on another device such as the PC or Mac?
• Has this been done already on app stores for other devices, such as the Android market or the Mac App Store?

Perform Due Diligence Early

Once you have a planned niche, you're ready to start analyzing the competition. This step is crucial, and can not only save a lot of money and time, but make you money. Here is a rough list of benefits:

• You won't spend unnecessary time working on features that have been done more effectively in another app.
• You'll discover missed opportunities you can take advantage of, further branding your app as unique and innovative.
• You'll discover trends and/or technologies that have been used in ways you would not have thought of.
• You'll discover how other apps are promoting their brands via keywords, feature lists, and social media.
• You'll learn about the life cycle of an app in your niche, as well as the best ways to plan for and prolong it.
• You won't be “one-upped” by another app developer who had the same idea and was able to release earlier than you. There's always that chance, but that's why you keep your idea fairly hidden until other developers no longer have time to react.

Rough Planning Is Cheap

As you're putting together features for your app, begin early by building up mockups of its interface flow. You could use flowchart software such as Microsoft Visio, or online collaboration flowcharting such as that offered by Creately (www.Creately.com). This will allow you to make early tweaks when you start to narrow down your features.

Paper prototyping is dirt cheap as well, and a bit more visual. Glue, scissors, maybe some tape, and markers are all you need. Just remember not to be too attached (no pun intended) to your early mockups, and allow them to change and iterate with your research findings.

Aside from doing interface mockups, you might want to have an artist start to do some creative style mockups as well.

Development Is Expensive!

As you learned in Chapter 2, it costs quite a bit to develop an app properly, depending on scope. Make use of all the cheap tricks early, which include the following:

• Competitive research
• Paper prototyping
• Art style concept mockups
• Rough feature lists and concept documents (as url(images/rtrif.jpg)ussed in more detail in Chapter 5)
• Online collaboration software for milestone planning (such as Basecamp offered by 37signals at www.basecapmhq.com)

Summary Decisions

There are some factors to be aware of as you're exploring and expanding features while researching the App Store. Let's take a look at some important ones.

Rough Budget versus Opportunity

When looking at the competition, you'll start to get an expert overview of your selected niche(s). During this time, try to do a little predicting about what type of outlook and opportunity is possible within your niche. Compare this with the budget you have in mind to determine just how much risk might be involved.

With more features comes more complexity, both with programming costs and with the possible cost of functionality, usability, as well as challenges with streamlining the interface. So, unless there's a definitive opportunity, be careful about adding too many features.

Is Profitability Possible? If Not, Stop, Re-Assess

Just as in web marketing with SEO keyword research, in the App Store, you'll find niches with relatively little competition, and others that are already somewhat saturated. Before even starting to look at the competition, learning to spot over-saturated niches will be a huge benefit to help you reassess whether your ideas have legs.

For example, are you entering a niche that includes a few bigger-budget apps with similar features and noticeable polish that you might have trouble competing with? If so, you might carefully consider your approach. In general, researching niche opportunity is the key before even researching the competition.

Pretend You're an Investor — Try to Poke Holes Aggressively

Sometimes it's difficult to look your million-dollar idea in the eye and be objective about it. Though it might hurt your ego a bit, ask others. Pitch it to friends and family to see what they say. The results could be surprising, and help shape how you proceed.

Scrutinize your earning potential as if you were an investor. Ask questions such as the following:

• What is the profit potential?
• What does the niche look like in terms of opportunity, and how saturated is it with competition?
• How strong is the competition?
• What is the competition charging, and how are they monetizing?
• What is your development budget?
• How experienced is your team?