#145: Real World Price Dynamics with Lauren Smith.
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Hello and welcome to Developing Perspective. Developing Perspective is a podcast discussing
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news of note, and that was development, Apple, and the like. And this week, we're going to
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take a break out of my normal 15-minute monologue, and I'm going to have a conversation. It's
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not quite the interview series that I've done sort of periodically on and off. It's more
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just a natural conversation that came up that I thought would be interesting to share. And
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so this week, I'm going to have a special guest, Lauren Smith, my wife, sometimes known
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as Mrs. Underscore, who is-- we were having a conversation
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earlier today.
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We were just talking about work.
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And I was mentioning to her some of the-- I guess,
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some of the drama, some of the back and forth
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that had been going on about app store pricing,
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about the nature of that, and the difficulty
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and the disconnect that often seems to happen between
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developers and customers, and how that frustration seems
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to be manifesting itself now.
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And I was talking to Lauren, the difficulty of this was interesting in talking to her
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because she's somebody who's both a typical customer in the app store, she has an iPhone
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and works a lot with it, as well as somebody who is aware of what it's like to run a business
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the way I do.
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And so without further ado, I'm going to introduce Lauren.
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Lauren, say hi.
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Hi, everybody.
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And so we're going to start talking about this a little bit.
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And so I guess at first I thought it would be interesting if you could just talk about
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your reaction and the way you kind of reacted and thought when you saw what happened with
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Clear, which is an app I believe you use all the time, right?
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Yeah, I love the app Clear.
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And so recently you were aware of sort of all the things that happened where they created
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a new version, released it, and just kind of walked through your reaction to that.
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Yeah, it's interesting.
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I first found out about this because after Dave stood in line for me to get the iPhone
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5S, I decided to start with a clean slate on my phone.
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I'm a big to-do list person, I have a lot of things juggling as many people do.
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One of the first apps I decided to re-download was Clear.
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I went to download it and it said I needed to pay again and I was confused.
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So I asked you, I said, "What's going on?"
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And you said, "Oh, they released a new version."
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So my very first thought was, "Oh man, what a bummer."
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And then of course my second thought is knowing the business side, "Well, okay, that makes
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I understand that they have to make a living just like everyone else."
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But the reality is I chose not to pay the extra whatever two or three dollars it was
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to download the new version.
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And so instead, what I decided to do is say, "Well, maybe Apple's native app is actually
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not going to be so bad in iOS 7 after all.
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So I'd used Reminders when it first came out and didn't like it for a number of reasons.
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It just didn't suit my needs.
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And so I stopped using it and really have loved Clear ever since.
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But then because they decided to charge again for the iOS 7 version, I am back to Reminders.
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And it's not so bad.
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So that's where I am at this point.
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And the interesting thing I think about that I find about that is it's not necessarily
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that you have an objection to paying for it so much as it seems like there's this interesting
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thing where by forcing you to make that decision again, you immediately sought out other alternatives.
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And I mean, I think the reality is I didn't seek out other paid alternatives.
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It wasn't that I decided I didn't like the app style or their philosophy about how to
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to do a to-do list or whatever. It was just if I have to make the decision to buy it again.
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I mean, I liked the old version if they had given me an easier option to just download
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the old version. And I know I could go back and do that. But there's just that mental
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block against going back and kind of rehashing the same thing I've already done. So yeah,
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I don't know how else to explain it.
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And it's – the interesting thing there is do you think if you'd gone back to reminders
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and you'd found that it just – it didn't really work at all or it was not a good experience,
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that at that point you'd go back and sort of start working your way back up the tree
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of like, "Oh, I wonder if there's a free option.
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I wonder what the next other paid options would be."
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Is that kind of where your mentality would go or did you just go right back to clear?
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Because in thinking about my philosophy with app purchases, I think I would go right back
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to clear because I'm willing to pay, given the relatively small amount of money it is
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for really any app in the App Store, I'm willing to pay that money if I feel like I really
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get value from it.
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I was thinking about it, some kind of irrational fear though of paying, God forbid, $2 for
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something that I feel like does not meet my needs.
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And so I think that's where my block comes from,
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is that it's, I know that the old Clear app met my needs,
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I was happy to pay that, but what if this new app
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doesn't actually do things even as well?
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'Cause I know in the spirit of changing things,
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sometimes developers make decisions
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and they can't always make everyone happy.
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And so what if I'm that person who doesn't like it anymore
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and then I just paid more money for something
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that is gonna not really be what I'm interested in?
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Do you think, one of the things that often comes up when us developers are talking about
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this kind of thing is we come up with a concept of trials.
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Some kind of time limited thing where you would buy an app from the store, you'd have
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it for some amount of time, whether that's 30 minutes, two days, a week, whatever it
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And then after that trial runs out, you'd have to pay, but you could try it for free
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for a while.
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Do you think that would change your kind of calculus as you're sitting in front of the
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store? Absolutely. I love free trials. Many, many apps that I have upgraded to the paid
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version have been because I downloaded the free version. It was limited in some way and
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I realized I love it and I want more. And so I'm glad to pay that extra money because
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I want to support the person who's making that. But there have been many apps that I've
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downloaded the free version and I've said this is not suit my needs for whatever reason.
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I'm so glad I didn't. Even though mentally a dollar isn't even that much, it just feels
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wrong somehow to pay that money for something that I'm never going to use.
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Another thing that's interesting as I was thinking about it is the difference between
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an in-app purchase and a paid new version of an app similar to what Clear did. And I
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think the thing as a regular consumer, the thing to me that I like about in-app purchase
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that feels less wrong in some ways is that you have a basic app that you've purchased
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and that has a certain set of functionality and features and if it's something that you're
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happy with, you feel good about the value that you receive from that.
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An in-app purchase is a feature set that's above and beyond the basics and so that as
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a consumer, that feels perfectly reasonable to me to add that additional level of cost
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to additional features.
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In my mind, I'm not an unreasonable person as the regular normal, where I realize that
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more features should cost more money or do cost more money, and so that's fine.
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But when you present it as, in my mind, the same app that may have some of the same features
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that I already had in the old version, then that's where it feels...
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There's a check there where I'm like, "Wait a minute.
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I thought I already had paid for these features."
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For better or for worse, I expect my app to be bug-free for the duration of its lifetime
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and my need of it.
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So in some ways, I know that becomes tricky for developers.
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But on the other hand, I think that the misconception that people aren't willing to pay for extra
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features is actually a misconception.
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It's just the presentation of how it's paid for.
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Because if you present it as this is an add-on, this is an addition to the basic set of features,
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then I think people are much more willing to do it.
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And really, for better or for worse, that is why the free-to-play model works so well.
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We don't need to get into the conversation of whether it's moral or not to extort money
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from people in a psychological fashion.
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But the reality is there is not the outcry from people about apps like Candy Crush or
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or whatnot where it's this addictive, free-to-play business model because people feel happy to
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pay that extra money because whether or not they actually are getting the value, they
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feel like they're getting more value for every dollar they spend.
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Whereas if you – another business model as we've been talking about, it just – it
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feels like you're paying for the same thing again rather than something additional.
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Sure. The interesting thing, and I know this for myself, is there's a once bitten, twice
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shy kind of a thing where having a couple of bad experiences where you end up buying
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something that you have buyer's remorse for can sour you on things. That disconnect, I
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I think in some ways between the logical part of your mind, maybe, and the kind of emotional
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side of it, where logically you know it's a dollar.
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It's not a huge amount of money, but it still feels like somehow you cheated or swindled
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out of that dollar.
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And I will say the one category that is not that way for me is if a friend has recommended
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say not to be stereotypical, but having small children, one of the areas that I actually
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am willing to spend money on apps is children's apps in a way that I wouldn't risk that money
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for myself. But if I have a friend who says that her child loves a certain app, I'm willing
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to buy the full version or "risk it" even if there's not a free version right away because
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I know somebody I trust uses it and is pleased with the product.
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So the power of a friend's recommendation is very strong.
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And is that just in terms of so that it eliminates the risk to you?
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Or is it just on the strength of like the – because it's recommended, you know it's
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going to be good?
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I mean, I would say some of both.
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It kind of seems like the same thing to me where there's not risk because there's
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someone I trust says it's good, and so I feel like there's a certain amount of value to
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I think that there's a maze of apps in the App Store in any category.
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I would say I think most people would agree that there's a lot of junk apps in the store
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as well as some really good ones.
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It's hard to find those gems even as we know there's the black box of how Apple chooses
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which ones to feature.
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But other than that, there's really no way to know what your $3 is really going to buy
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you if it's going to be really worth it or not.
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And so I think that's another reason is knowing what friends use helps with that.
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I do have some friends though that just don't buy apps.
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They download a lot of apps.
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They use their phones for apps.
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But if it's not free, they're not interested.
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And so I think that's a different perspective as well.
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Even though it's not a money thing necessarily, I think it's more of a philosophy on their
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part. Sure. I was wondering if you could elaborate on that. That was actually going to be my
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next question. In terms of, do you think, what do you think is, like, just in your
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normal day-to-day, your interactions with people, people who have
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smartphones or iPhones, what do you think is sort of the prevailing philosophy that
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people seem to have if you have kind of have any insight into that from just
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like your just day-to-day interactions with them or things the way that they
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interact with the App Store and the way they view it.
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Well, it's interesting.
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I mean, I think that a lot of people don't realize that the App Store is separate from
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Apple in terms of the fact that third-party developers can submit and sell apps in the
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App Store independent from being Apple employees.
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When I talk about what you do, a lot of my friends or family or whatever will say, "Oh,
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does that mean he works for Apple?"
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Which is just a very different perspective obviously than someone who is on the inside
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and knows how all these things work.
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So I think that's the first thing, is that people don't really realize that these are--
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I mean, sometimes the apps are made by big shops, but a lot of these are indie apps who--
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a small team of developers, or in your case, a one developer who's trying to make a living.
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It feels much more like an amorphous entity to them without a name or a face.
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And so I think because part of that, they have very high expectations and expect very
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So they don't understand the necessity for repeat revenue from a single customer in order
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to have a sustainable business.
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So I think that's definitely something that is important to think about in terms of interaction.
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Another thing that's really interesting is that Apple has a whole suite of really very
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complicated, high quality apps that come for free with the purchase of your phone and regularly
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get updated through OS updates.
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And so I think that that's another thing that the average person is primed by Apple to expect,
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"Hey, I have amazing apps and they are regularly updated, they fix bugs, they do all these
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cool new features and I never have to pay anything for them."
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And maybe the average person doesn't realize that they're indirectly paying with all the
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other ways that they support Apple.
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But I think specifically thinking about the apps in the App Store and that are native
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on the phone, it's huge that you are primed to not expect to pay additional money for
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additional features in a way that people are primed to expect to pay when they're looking
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app software, even for their Mac or PC or other devices.
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The phone specifically, I think people expect more and higher quality for free.
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And that's also been compounded, I think, by the recent announcement that their Office
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Suite pages and all of those are going to be available now for free.
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And I'm sure Apple had a host of reasons for doing this.
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But I think the reality is that that's even going to exacerbate the problem even more,
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that the average person, not only do they not differentiate
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between third party developers and Apple,
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but now they see these amazing apps that are free
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and expect others to be either free
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or at least no paid upgrades as you go.
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- Yeah, I mean, I think it's certainly a difficult thing
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and I know software development,
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it's been especially difficult in this way
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that the output has a very limited relationship necessarily to the input that went into it.
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It's not the kind of thing where you look at...
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If you look at a brick layer laying bricks and you see the wall getting higher and higher,
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you kind of have a sense of that was a lot of work going into that.
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Whereas I think in software, because you're seeing such a thin layer on the front of an
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app that you actually interact with, that you have no sense of...
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I imagine even something like, if you think of the concept of something like sync and
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synchronizing data and all that kind of thing, I imagine most people just think it just works.
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Is that accurate?
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Are those types of things, like a lot of these kind of features that are actually under the
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hood really difficult and expensive to maintain or just sort of, "Oh yeah, that's just something
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that you do."
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I mean, most people, I would say, probably don't even realize what the cloud is or how
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it works or not iCloud, even just syncing in general.
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It just magically happens.
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And I think, too, there's this expectation.
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It's a difference in perspective of if it just works, they don't really appreciate how
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complicated that is.
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But if something breaks, no matter how small, it's very offensive.
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And so I think that's the other side of it is the bug fixes seem to be sort of emergency,
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immediate, "You must put out my fire," even when they don't realize the larger scope of
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of what you're trying to do and all of the other competing priorities.
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And then I think just to wrap up, I thought it would be interesting, do you have any thoughts
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or things that you would think would improve the situation in terms of developers?
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Is it a communication challenge?
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Is it just an education thing that if Apple spent a lot of time doing commercials, trying
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to create that face to developers and what's going on there.
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That would help.
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Is it a structural thing or is it just an inevitable thing?
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Where do you think this kind of could be going forward?
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- I really don't think that Apple has probably any interest
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or desire to make the third-party developer experience
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with their customers any better.
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I mean, it doesn't hurt them.
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Customers still buy apps.
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I think it's really the onus is on the individual developer
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to try and make their customer base understand
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they're coming from and the complexities involved.
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I don't know.
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It's very hard to communicate with your customers because you don't want to spam them.
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Many people are annoyed even in a new version of an app with a pop-up comes where you're
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explaining something.
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Most people won't even read it.
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But I think that there is, at least in our own business, I have seen interacting with
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the customers to some degree on support.
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I have seen that there's a much more stronger level of understanding and forgiveness if
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they see a face and a name and a person behind this amorphous product.
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I think interacting with one of our apps is basically the same to the average person as
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interacting with Microsoft Word or one of Apple's native apps or something like that,
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where it's like they assume that this giant company with these large number of faceless
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People slash bots are creating something that should work perfectly every time.
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And so when something, especially if something doesn't work or you're trying to make some
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type of change that people may be surprised by or uncomfortable with or just need to get
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used to, even if it's a better change, I think communication really is key to that.
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And so being as respectful and personal as you can with customer support, I think is
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really your strongest touch point with your average user and those users will tell their
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friends if they feel like they were treated like an individual and you cared about their
00:19:24
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Even knowing what I do about the business of apps, I have emailed other developers for
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compliments as well as concerns and I very rarely even get a response saying, "Thanks
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your feedback, which leaves a very bad taste in my mouth.
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I know it's annoying.
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I know it's time consuming, but it really does make a huge difference.
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And even for those folks who did write back saying, "Thank you.
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I'm thinking about that," or, "Maybe I'll add that feature in the future," or whatever,
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even if, "Hey, my letterpress feature that I suggested to Lauren still isn't in the store,
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but you know what?
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Maybe someday it will be."
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And he wrote me back and said, "Thanks.
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I've thought about adding that feature myself, so it's on the list."
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And that makes me feel really good about using his apps.
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And if he released something new that cost additional money, even if it was the same
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basic concept as Letterpress, I probably would buy it just because I feel better about that
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experience with the developer.
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I mean, I think definitely there's a -- it's that difference of in a store as large as
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the App Store, which I think is up to about almost a million apps now.
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It's the nature of what's happening is still the same.
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If you want to have a relationship with a customer, you need to find whatever way possible.
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There's a lot of difficulties and hurdles in the app store to doing this.
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Their relationship is primarily with Apple and we're on the side.
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But when we have opportunities to interact with customers, to try as best we can to humanize
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that and make it into a personal thing.
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I know I've had the same thing, doing support, where you have this funny response where the
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first response I get from somebody is very negative and very just sort of
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letting off steam and you kind of respond back and it's like oh I'm so
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sorry you know here's what I'm doing to fix it here's a workaround for now you
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know I'll let you know if I have any updates and then you get a response back
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from that it's like oh I'm so sorry and they're embarrassed because they were
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yeah it's like they were they thought they were talking to a bot and they
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found that they're actually talking to a person and I think that probably has a
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big big impact on them because I mean at the end of the day we're all good you
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It's like you kind of hope we're all kind of good people trying to think the best of each other.
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So, I think that's a good place to stop.
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I really want to thank you so much for taking the time to do this.
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I know it's a bit outside of the norm, but I think it's especially helpful for myself and fellow developers to hear from,
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I guess, I think you're aware of this, that says someone who we sort of,
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I guess we always refer to it as normals, right?
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I think you listened to some of the developer podcasts, right?
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So we talk about, it's like, "Oh, it's like there's the us and then there's the normals."
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And it's good, I think, to hear from someone who's more of a normal.
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So we're not just making assumptions.
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They're actually basing some of our thinking on actual real-life data and thoughts.
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So I really appreciate you taking the time.
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I'm happy to present the layman perspective.
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Sounds good.
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>> All right. Bye.