Digital Application
Digital Application assignment
The assignment was simple. Create a mobile application that fit two criteria. 1) Added value to a brand 2) Was not currently available on the market Then create a campaign to promote it.
problem
The current PayPal smart phone app has limited capabilities and only allows you to check your account balance and transfer funds.
solution
PayPal In Store - an app that allows people to use their PayPal account as a form of payment in the real world. It functions by generating a barcode that is linked to your PayPal account that can be scanned as a regular UPC code.
process
Users must login with a password to access their account.
A unique barcode appears for each transaction and is scanned by the cashier.
User receives an electronic receipt.
benefits
campaign
- PayPal makes money on every transaction therefore anything that generates more usage of PayPal is going to greatly increase their revenue. - The consumers benefit for several reasons. They no longer have to carry a credit card with them so they are able to experience increased security. Also it keeps electronic receipts so that consumers have proof of purchase and can more easily track their spending. - Based off of PayPal’s revenue model, the more money spent with a particular vendor the more of a discount that vendor gets on every purchase. By having more purchases and a greater total with PayPal vendors end up paying less for every transaction, saving them money.
Safe. Steady. Easy. To promote the App, we chose to focus on the real world experience and security that this application offers. With that, I have shown a banner ad, an outdoor display and a print ad. The banner ad was an interactive experience in which an animated John Cleese would explain what the app was and how it worked in a witty, dry way. The outdoor display was simply a way to show that our app was accepted at that location. The banner ads (one is displayed on the next page) focused on both the security benefits of the consumer and the experience of using a digital transaction in the real world.
return
Based off of their revenue model I calculated that PayPal has roughly 2.4 billion transactions/year. When analyzed with their revenue from the same year I calculated that each transaction generates and average of $1.08. This coupled with the expected download and usage rate allowed me to calculate how much revenue should be generated from this application. Total spending on this application came in the ballpark of $29 million, which included research, development, security, support and marketing. With expected revenues of around $37 million this result in a return of about 27%
ROI = 27.68%