3 App Success Metrics Through Data – Hopper’s Flight Tonight

In July, Hopper launched its new iPhone App, Flight Tonight that provides prices for last minute, same day and next day flights. Personally, I am extremely excited about the app and use it habitually every Thursday and Friday to see if I can book an affordable last minute getaway. But with over 1.2 million apps in the app store and an average travel app’s half-life of 4 months, how is an app to get noticed and succeed long term? The way I look at it, in order for this app to prosper, it must attain these three success metrics: habit formation, conversion and viral appeal. Through data, I believe an app like Flight Tonight can succeed at attaining these metrics. For example, gathering more data on the user to refine users’ experience will promote habits and increase app utilization, overlaying additional data to better inform a user will increase the likelihood of conversions/purchases, and tracking data regarding the app’s usage can create a viral loop. Now I know the app is just over a month old, but I believe Hopper has the right skillset and vision to benefit from implementing these types of data. So here are my thoughts as to how Hopper can use data to its advantage in growing its Flight Tonight app. I have no knowledge of whether Hopper takes, or plans to take, any of these approaches.

OpenTable’s Data Creates Revenue Opportunities

Recently, Priceline purchased OpenTable for a 46% premium!  This may seem high for the restaurant reservation service, but I can see why Priceline would pay $2.6 billion for the company.  The company still has a great opportunity to further expand its reservation and software sales into domestic and international markets, as they have only captured a small portion of these markets.  The purchase also allows for Priceline to provide a dining experience for its traveling customers.  But I am more interested what Matt Roberts, OpenTable’s CEO, said in the 2013 Annual Report “we serve and engage users in new ways that create active, loyal customers for life” and I believe these “new ways” will not only foster a greater customer engagement, but will also drive new revenue opportunities through its data knowledge of its 15 million users.

Product Awareness and Its Value from Goose Island Beer Company

This past Saturday, my wife surprised me with an urban scavenger hunt through Boston sponsored by Goose Island Beer Company from Chicago. How could I say no, beautiful weather, drinking beer and becoming a mobile billboard for Goose Island.  Throughout the hunt, all I could think about is how we paid $22.50 (through Groupon) for the opportunity to promote Goose Island’s products through the streets of Boston and create product awareness to our Facebook friends and Instagram followers.  Brilliant on Goose Island’s part!

Product Management Driving Domino’s 12X Stock Growth

While watching the Boston Bruins take a 3-1 series lead over the Detroit Red Wings, commercials advertising Domino’s new “Specialty Chicken” caught my attention.  I began thinking that chicken dishes were an interesting product expansion for a restaurant known for 30 minute pizza delivery.  So the next day, I Googled Domino’s and was shocked to see that Domino’s stock value has generated a 12x return over the last 5 years! Further digging has brought me to the conclusion that Domino’s is winning through product management by improving and expanding upon its menu with the help of technology to increase spend per order, as well as interacting with its customers to increase customer retention.

12X Growth, Amazing!

St. Patrick’s Day, Uber, and LTV

St. Patrick’s Day

This past St. Patrick’s Day, I was enjoying a pint at a South Boston drinking establishment when a couple of patrons began passing out Uber promotion cards. The card offered a free ride of up to $25 by downloading the Uber app and signing up for the car service. I struck up a conversation with one of the Uber reps. He indicated that with every successful sign-up and redemption he received $25. This all got me thinking about how Uber views its customer lifetime value (LTV) and whether this marketing campaign generate positive cash flow.