If a decade ago it was said that business was going to happen on the Internet, today that statement extends to the mobile phone and apps, which have become the main link with customers.
To put figures into the matter, they are worth a couple of data: the global application market generates revenues of more than $ 100 billion annually, and employs more than one million people globally. These figures are provided by the specialized firm App Annie, which also details that last year 200,000 million downloads were made worldwide.
In Argentina, its growth has also been exponential, especially in the last year. Users have become accustomed to the so-called "app economy" and have lost their fear of making purchases from their cell phones: according to Kantar, 6 out of 10 Argentines recently performed an operation from their mobile.
The ranking of operations is led by the payment of services (37%), followed by cell phone recharge (29%) and the SUBE card (22%), money transfer (19%) and QR code transactions (10 Average% and almost 30% in CABA).
Those who have between 35 and 45 years are the ones who most resort to these applications, because they have greater financial independence and are very prone to the adoption of new technologies.
Airbnb, Uber, Cabify, Zolvers, Mercado Libre, Iguana Fix, Freelancer, Workana, Rappi and Glovo make up the top ten of the most used in the country. It is also surprising how companies have adapted their traditional business models to the "4.0" era. And it is precisely where they increasingly point their budget cannons.
Developments inside and outside the company
The app business expands in two ways: that of application developers, on the one hand, and companies that use them to strengthen their image and underpin sales, on the other. Along these lines, more and more organizations are launching their own initiatives, aware that they improve the bond with their clients and can add new ones.
The factors that underpin this upturn are basically two: the improvements achieved in terms of connectivity and the rise of "m-commerce": according to data from the Argentine Chamber of Electronic Commerce (CACE), the sale through the mobile phone already represents the 25% of electronic commerce in Argentina, being the fastest growing modality.
"Today, the application is the business. If it is slow, or the transaction is not secure, that business ceases to exist," says Roberto Ricossa, general director for Latin America of F5 Networks. And he adds: "Apps work as a link between consumers and companies and for the latter they are the main driver of innovation," he adds.
The big companies are the ones that have more problems when it comes to aggiornarse to the times that run. Although they have more economic and human resources, they lack the flexibility to achieve rapid adaptation.
In Argentina, more and more companies use the concept of startups to help traditional firms maintain their leadership in the digital world. One of them is YopDev, created by Guido Grinbaum, a member of the "old guard" of local entrepreneurship. Currently, it has clients such as Coca Cola, Unilever and Garbarino.
Federico Giesenow, managing partner of the firm, who worked as a Unilever executive in several international venues, says that large companies "do not know how or do not have the skills" to advance certain digital projects. In addition, he points out that many times they "lack focus."
The reason is simple: they do not have the operation of a startup (which is 24 hours thinking about the project), so YopDev is responsible for developing an idea with the company and assigns it an "agile team" for its implementation.
From the company they point out to iProUP that the link is not limited to promoting ideas to others. Rather, it must be a joint effort.
"We believe in teams. We work together, we co-create. Coca-Cola is a luxury partner, because it shows a high level of commitment," says Giesenow. In this case, the proposed project is called Wabi and consists of a mobile application for home delivery of beverages.
"It solves how to get to the house of the final consumer: what can you ask for and can be delivered to you but within the framework of a long-term sustainable system. Outsourcing the last 100 meters is very expensive," says the executive.
The idea is simple and effective. Users place their order from the cell phone and immediately they receive a notification to the attached shops (also to the phone), whether it is a kiosk, a warehouse or self-service. The first who accepts the order takes the beverage pack to the client's house.
In addition, the soda giant has also faced 100% in-hose projects, such as Coca Cola For Me, an evolution of its interactive online radio. "The goal is to provide benefits and exclusive experiences to the teen segment," says Gonzalo Duperré, Digital & Technology Manager for Cono Sur.
The application was first launched in Argentina, Chile and Peru; then, exported to Colombia, Costa Rica and Panama. The development took 9 months and was in charge of an internal company team. It can be downloaded on mobile or web. It has more than 2 million users who access an average of three times per day, according to company data.
In the case of Club Personal, of the Telecom group, it uses an app to manage its benefits platform. "Customers participate in games, in travel and equipment draws and get prizes (such as cell phone credit, cable service packs, bonuses)," explains Fernando Diaz Baylon, CEO of Aper, the developer.
Regarding the cost of these types of projects, Baylon clarifies: "The developments are tailored. The cost can range from $ 400,000 to $ 10 million depending on complexity and amount of work hours. The salary of a developer is around $ 60,000 to $ 120,000 according to its seniority and we are quoting the hour between $ 35 and $ 45 ".
Aper started as an SME that created websites, but nowadays it already has clients throughout the country and plans to expand to Latin America, first, and then to other countries.
Today, he is working with one of the first bank sales portals developed in Argentina: ICBC Mall. He also has projects with the Santa Fe, San Juan, Entre Ríos, Santa Cruz, and Columbia Bank banks.
In the industry, experts agree: building an app that can be considered "competitive" in the mobile market requires at least an investment of $ 100,000. Even to spread it and for users to know it, the investment must be at least double or think at least $ 300,000.
The cases of projects that with $ 10,000, $ 20,000 or $ 30,000 made an app and had great success was years ago, but today it is a much less frequent phenomenon.
Thus, when the "startup" spirit is not within the company itself, looking for a luxury ally is the ideal solution to develop an app and not die trying.
Developments that arrive "from above"
Some firms operating in the country did not face their own developments but have received from their parent companies the platforms to be implemented in Argentina.
For multinationals, it is a solution to win customers in the world, thanks to unified proposals that, in many cases, are used without restrictions in any territory in which the firm operates.
For example, the Starbucks coffee chain launched the Starbucks Rewards app globally. "It is a tool for the customer loyalty program that allows you to top-up, pay and check balance, locate nearby stores and obtain discounts and benefits according to consumption," said Federico Bonino, marketing manager for Argentina and Uruguay.
Specifically, the app gives you the possibility of:
- Pay from the application in your favorite stores
- Register as a member of Starbucks Rewards
- Check your "stars" and available benefits
- Reload and manage all your Starbucks Cards
- View your available balance and the detail of your movements
- Access a store search engine, receive program news and special promotions
In addition, those who adhere can pay with their Starbucks Card, a prepaid card not linked to a bank, and accumulate "stars" each time they consume.
According to the executive, this platform targets those who are looking for "trend and innovation", since from their cell phone they can monitor and manage all aspects of their account, with the convenience of acquiring products regardless of cash.
In the area of ââtraditional retail, Supermercados Día is a witness case, as it boosted its business with its application of Offers and Savings. "In a year and a half we had more than 1.7 million downloads and almost 1 million people use it every month to plan their purchases," says Analía Mikati, Marketing Manager of DIA Argentina.
"Today, 15% of customers in our stores use the ClubDIA App and we aim to exceed 30% by the end of the year," says Mikati.
"The app is used a lot to visualize offers, query of accumulated savings and location of shops. Clients value their offline functionality and the little space it occupies in the phone's memory," the executive added.
Through the analysis of the data of its users, the firm offers discounts and promotions relevant to each customer based on their purchase history. The next step will be to enable the purchase directly from the app on the cell phone.
