Birds Research Review by amyxin919

RESEARCH REVIEW

AGENDA

1 2 3 4 5 6

Introduction Summary of Findings Goal Reassessment AIDA Recap Appendix

PROBLEM

Getting a haircut at Birds can be a challenge.

Birds is launching an app.

Birds wants various promotion strategies to ensure a successful launch.

KEY OBJECTIVES ● Discover reasons for why specific segments would or would not download the Birds app ● Gain insight on how to market to the 20% (new customers) through the 80% (current customers) ● Research best practices for successful app launch and adoption

METHODOLOGY ANALYZED SECONDARY RESEARCH, SURVEY DATA ADMINISTERED 39 CUSTOMER INTERVIEWS, PRE-HAIRCUT SLAUGHTER

S. LAMAR

FAMILIES

41ST STUDENTS

S. CONGRESS

E. 6TH

GOOD MIX

ANALYZED INTERVIEW FINDINGS TO HYPOTHESIZE SOLUTIONS

OVERVIEW OF INSIGHTS 1

Many Birds customers brought up a Loyalty Program

#1 reason customers want the app: Convenience #1 reason customers donâ&#x20AC;&#x2122;t: Infrequent Use

In-Store promotions and Initial Discounts are the best ways to reach the Birds customer base

Based on the research we gathered, we have split Birds customers into 3 distinct groups that will each have specific promotional strategies

(Birds customers are loyal; over 75% would actively not download a competitorâ&#x20AC;&#x2122;s app)

SUMMARY OF FINDINGS

SUMMARY OF FINDINGS MORE THAN 2/3 OF CUSTOMERS WOULD DOWNLOAD THE BIRDS APP

SUMMARY OF FINDINGS “CONVENIENCE” IS THE TOP REASON WHY PEOPLE WOULD DOWNLOAD THIS APP

SUMMARY OF FINDINGS “INFREQUENT USE” AND “NO NEED” ARE THE TOP REASONS WHY PEOPLE WOULD NOT DOWNLOAD THE APP

SUMMARY OF FINDINGS WE FOUND THAT THE BEST WAY TO REACH BIRDS CUSTOMERS ARE THROUGH IN-STORE METHODS AND INITIAL DISCOUNTS

SUMMARY OF FINDINGS PARTICULARLY FOR NEW CUSTOMERS, THE BEST WAY TO GET THEM IN THE DOOR IS WITH AN INITIAL DISCOUNT.

SUMMARY OF FINDINGS APP STORE OPTIMIZATION IS CRUCIAL

Know what people are searching for so you can use targeted keywords. Genre Inspirational

80%

5-10%

Transactional

Source: Forbes https://www.forbes.com/sites/johnrampton/2015/10/16/the-beginners-guide-to-app-store-optimization/3/#6276c8c86a91 https://www.forbes.com/sites/johnrampton/2014/10/16/a-guide-to-app-store-optimization-aso-for-small-businesses/#184d211a447d

Category

SUMMARY OF FINDINGS APP STORE OPTIMIZATION IS CRUCIAL

Know what people are searching for so you can use targeted keywords. Types of searches to be mindful of below.

80%

5-10%

<5%

Genre

Inspirational

Transactional

App Titles

(Specific category searches)

(Subjective keyword searches, such as “best”)

(Specific functions of app searches)

(Specific titles of app searches)

Ensure you’re embodying the haircare category in the app description

Ensure “Best Barbershop in Austin” (or equivalent) is in the app description

Ensure “haircut appointment”, “haircut booking”, etc. phrases are in the app description

Ensure your title and description use good category keywords (e.g. haircut, appointment, buzzcut) because 95% potential downloaders are not specifically searching for the app

(Even though technically it’s more of a “check-in” model)

SUMMARY OF FINDINGS APP STORE OPTIMIZATION IS CRUCIAL ●

●

Know what people are searching for so you can use targeted keywords. ○ 80% of app store searches are “genre searches” → ensure you’re embodying the haircare category ○ Less than 5% of of app store searches are for the specific app titles → ensure your title and description use good “category” keywords ○ 5-10% of app store searches are for “inspirational” searches (i.e. best games, best haircuts, etc.) → ensure these are in your description ○ Around 5% of searches are “transactional” (i.e. resize image or organize tasks) Test ALL parts of the app with your ideal customers before launching it, including the imagery/”look and feel” ○ Posting video screenshot tutorials on how easy it is to book an appointment on the app distributed on social media (include a demo) Promote the app on channels where you already have the most influence -- i.e. your website

SUMMARY OF FINDINGS 2

Post video screenshot tutorials on how easy it is to book an appointment on the app distributed on Birds social media (e.g. Facebook, Instagram) and the Birds website (include a demo)

Promote the app on channels where you already have the most influence -- i.e. Birds website

SUMMARY OF FINDINGS SUCCESS FACTORS FOR PROMOTING THE APP ● ● ● ●

●

Have tangible, realistic goals and KPIs that you can use to measure the apps success over time (i.e. app store rankings, organic and loyal user acquisition, cost-per-download, etc.) Don’t simply market the fact you have an app, market the NEW EXPERIENCE your customer will have because of the app Make sure to market your MOBILE app on MOBILE-optimized advertising platforms (ideally, the consumer can see an ad for you app and have it downloaded on their phone in just a few clicks) Paid social only gets you so far, leverage your paid social to spark organic conversations and downloads ○ Use paid social to get downloads so your app ranks higher ○ Use unique and engaging advertising content that sparks engagement and incentivizes downloads Remember that loyal users are better than downloads

SUMMARY OF FINDINGS SUCCESS FACTORS FOR PROMOTING THE APP

Have tangible, realistic, and measurable goals

Promote the new experience given with the app

Create engaging advertisements that spark downloads

ACHIEVING OUR GOAL

ORIGINAL GOAL ● Develop a promotion plan that will achieve increased 5% month-over-month adoption of the app Birds is going to launch - For the first 3 months following the app’s release: MONTH 1: Achieve 1,250 new adoptions MONTH 2: Achieve 1,312 additional adoptions (2,562 total) MONTH 3: Achieve 1,378 additional adoptions (3,940 total)

● Adoption = download and use once

UP-TO-DATE GOAL â&#x2014;? Develop separate promotion plans for recurring and new customers based on their customer journey location that will achieve adoption of the app Birds is going to launch Recurring Customers

New Customers

Month 1: 1,000 adoptions Month 2: 2,500 adoptions Month 3: 2,500 adoptions +_____________________ 6,000 adoptions

Month 1: 250 adoptions Month 2: 625 adoptions Month 3: 625 adoptions + _____________________ 1,500 adoptions

80% OF TARGET

20% OF TARGET

Note: Adoption number assumptions and calculations can be found in the Appendix

THREE TARGET CUSTOMER GROUPS 20%

3 3

= Current customers = New customers

FOCUS: Current customers (the 80%)

THREE TARGET CUSTOMER GROUPS GROUP 1

GROUP 2

GROUP 3

Current Birds customers who would download the app

Current Birds customers who would not download the app

Customers who have never been to Birds

53% of target

27% of target

20% of target

Easiest group to drive adoption

Barriers & how to overcome

TARGET: 80% returning customers / 20% new customers

THE AIDA FRAMEWORK THE CUSTOMER JOURNEY End

Beginning

A I D A

ATTENTION

INTEREST

DESIRE

ACTION

GROUP 1: Current Customer + Ready to Download WHAT WE KNOW ABOUT THIS GROUP: ● Loyal to Birds, we just need to make them aware of the app and they will go straight to “ACTION” ● Easiest group to drive adoptions ● 75% have been a customer for 1-4 years REASONS WE LIKE THIS GROUP: ● Willing to book with or without the app, frame it as convenience ● Excited about customizable features like choosing their stylist REASONS WE’RE NOT A FAN: ● Might not remember to download the app

ACTION GOAL: Get these customers to download the app through in-store promotions In-Store Promotions: ● Signage - windows, front desk ● Front desk and stylist informing customer of app / encourage them to download ● Store takeover (app promo items, giveaways, etc.) Additional Promotion Opportunities ● New hold phone recordings ● WiFi landing page in stores ● Website (scheduling page)

GROUP 2: Current Customer + Skeptical to Download WHAT WE KNOW ABOUT THIS GROUP: ● Value simplicity / don’t think apps are necessary ● 42% are first-time Birds customers ● An additional 42% have only been a customer for a few months REASONS WE LIKE THIS GROUP: ● Existing customers ● Show potential for downloading app REASONS WE’RE NOT A FAN: ● Not immediately sold on app, requires unique promotions to download ● Worried about mobile storage since they won’t use the app often

INTEREST/DESIRE GOAL: Overcome hesitations of these customers through creating interest and desire through a “Birds with Benefits” (“BWB”) program. “BWB” program: ● Downloading the app is your entry into the “BWB” program. ● You need your email address to create an account on the app — emails addresses will be collected and special discounts/promotions will be emailed to these “BWB”s occasionally. ● Provides a value-add to app — app has more of a purpose

GROUP 3: New Customers WHAT WE KNOW ABOUT THIS GROUP: ● Have never been to Birds ● Maybe have never heard of Birds REASONS WE LIKE THIS GROUP: ● Potential Bird’s customers REASONS WE’RE NOT A FAN: ● Have to overcome switching costs if they are used to visiting to another barbershop - potentially very difficult ● Have to find ways to reach them if they have never heard of Birds

ATTENTION GOAL 1: Raise awareness of Birds Barbershop and convince them to become Birds customers through social media ads, influencers, and referral programs. Social Media: Facebook ads/posts, Instagram ads/posts, Tinder/Bumble/Grindr fake profile, Indeed/LinkedIn job posting (but really an ad) Influencers: @365thingsaustin Referral program / “BWB”: Discount if you refer a friend / referred friend gets discount

GROUP 3: New Customers (Cont.) WHAT WE KNOW ABOUT THIS GROUP: ● Have never been to Birds ● Maybe have never heard of Birds REASONS WE LIKE THIS GROUP: ● Potential Bird’s customers REASONS WE’RE NOT A FAN: ● Have to overcome switching costs if they are loyal to another barbershop - potentially very difficult ● Have to find ways to reach them if they have never heard of Birds

INTEREST GOAL 2: Encourage these newly acquired customers to download the app through promotions and referral programs. How to convince people to come to Birds for the first time? Promotions: Discounts on haircuts, raffle for tickets to cool Austin event (e.g. SXSW, Quesoff) Referral Program / “BWB”: Refer a friend to the app, get a discount A person is 3x more likely to adopt a mobile app if a friend also adopts it.

RECAP GROUP 1

GROUP 2

GROUP 3

Current customer & ready to download

Current customer & skeptical to download

New customer

Focus on ACTION (on the app)

Focus on INTEREST/DESIRE (in the app)

Focus on ATTENTION (on the Birds store)

IN-STORE PROMOTIONS

“BWB” PROGRAM

SOCIAL MEDIA, INFLUENCERS, REFERRAL / ”BWB” PROGRAM Focus on INTEREST (in the app)

PROMOTIONS, REFERRAL / ”BWB” PROGRAM

80%

Month 1: 1,000 adoptions Month 2: 2,500 adoptions Month 3: 2,500 adoptions +_____________________

6,000 adoptions

20%

Month 1: 250 adoptions Month 2: 625 adoptions Month 3: 625 adoptions + _____________________

1,500 adoptions

LOOKING FORWARD Strategy finalization

11/8

11/13

11/17

11/20

12/1

Final recommendation presentation

Research Review Final recommendation assembly Preliminary strategy formulation & analysis

12/8

Strategy implementation planning

APPENDIX

Adoption Number Logic Recurring Customers Monthly Birds Customers Recurring Customer % Monthly Recurring Customers Call-ahead Customer % App Adoption Max Target Expected Adoption % Expected Adoption Amount

New Customers 25,000 80% 20,000 60% 12,000 50% 6,000

Monthly Birds Customers First-time Customer %

25,000 20%

Monthly New Customers

5,000

Call-ahead Customer %

60%

App Adoption Max Target Expected Adoption % Expected Adoption Amount

3,000 50% 1,500

Q1 - Birds Location

Q1 - Birds Location #

Answer

Count

183 / Anderson Mill

0.00%

41st / Red River

25.64%

Burnet

0.00%

East 6th

15.38%

Rock Rose @ Domain Northside

0.00%

Slaughter Lane

20.51%

South Congress

28.21%

South Lamar

10.26%

Total

100%

Q2 - Topics - The purpose of the Birds app is to make it easier to view appointment availability and allow you to make a reservation ahead of time on the app. Would you download this app and why/why not? Breakdown of overall â&#x20AC;&#x153;yesâ&#x20AC;? responses

Q2 - Topics - Would you download this app and why/why not? Answer

Count

Yes

29.67%

Web app preferred

2.20%

Similar to other apps

1.10%

Pick your stylist

5.49%

Organization

1.10%

No need for more apps than essential

2.20%

9.89%

Maybe

3.30%

Less Friction

9.89%

Infrequent Use

5.49%

If incentivized

1.10%

Q2 - Topics - Would you download this app and why/why not? Answer

Count

Convenience

21.98%

Children

4.40%

Brand loyalty

2.20%

Total

100%

Q3 - Topics - If Birds were to come out with an app, what would be the best way to get you to download it?

Q3 - Topics - If Birds were to come out with an app, what would be the best way to get you to download it? Answer

Count

In-Store

24.62%

Raffle

1.54%

Print on receipt

1.54%

Street

1.54%

Word of mouth

3.08%

Front desk

6.15%

Unknown

3.08%

Stylist mentions it

3.08%

SEO

1.54%

7.69%

Discount

13.85%

Q3 - Topics - If Birds were to come out with an app, what would be the best way to get you to download it? Answer

Count

Less Wait

6.15%

Text message

1.54%

Rewards Program

3.08%

Walk In Wait Times

1.54%

Social Media

10.77%

Website

4.62%

Availability

4.62%

Total

100%

Q4 - Topics - If Birds were to come out with an app, would you have any concerns about downloading it or using it?

Q4 - Topics - If Birds were to come out with an app, would you have any concerns about downloading it or using it? Answer

Count

Privacy

1.85%

51.85%

Yes

7.41%

Cost

1.85%

Phone storage

9.26%

Easy cancellations

1.85%

Security

9.26%

Ease of use

3.70%

Notifications

1.85%

Wouldn't download

11.11%

Total

100%

Q5 - Topics - If you were a non-Birds customer, what would it take to get you to download and use the app?

Q5 - Topics - If you were a non-Birds customer, what would it take to get you to download and use the app? Answer

Count

In fashion news / media

1.82%

Trendy

3.64%

Get a band to promote at a show

1.82%

Word of mouth

20.00%

Lives / works by one nearby

7.27%

BOGO Package

1.82%

Unknown

12.73%

Competitive pricing

5.45%

Meme

1.82%

Text reminder

1.82%

Q5 - Topics - If you were a non-Birds customer, what would it take to get you to download and use the app? Answer

Count

1.82%

App pricing

1.82%

Initial discount

16.36%