Hike Messaging App – 5M users since 12/12/12, and counting!

BSB is a start-up funded by Bharti & SoftBank building mobile products for the Indian market. Hike is a messaging app which allows instant messaging and group chat on your phone with friends who have Hike, as well as those who don’t have Hike. We caught up with BSB’s head of products and strategy, Kavin Bharti Mittal (KBM), to talk about Hike, right before he was getting ready to launch Hike 2.0, a major update to the messaging app.

Introduction

Hike is a pure Made-in-India product. BSB is based out of Gurgaon, and the product was built from scratch by this team. Under the guidance of KBM, who is also the resident UX guru, the team brought out a beautiful and highly functional product in Dec, 2012 when the team size was 15. They are 30+ now, and furiously working on next set of features, supporting users and handling the success!

Product Highlights

  • The product has been designed from grounds-up by Hike team.
  • The design is beautiful and minimalist.
  • They chose a more efficient protocol for communication (MQTT, which is less chatty than the better-known and more-often used XMPP).
  • In India, Hike allows its users to message to non-Hike users by converting Hike message into an SMS (each user is given 100 free SMS every month). This is a key differentiator for Hike, in addition to a cool and modern design.

Product Development

  • Following an agile development model, they schedule a release every 4 weeks with a stop gap release for performance and related fixes in the middle if need be. Such a schedule ensures that they are not hitting the users with too many changes too often, and still stay responsive to market feedback.
  • KBM controls the product UX and works with his designers to create detailed wireframes and mockups before engineering starts working.
  • They have a very product-focused culture and so engineering-design conflicts are minimal as everyone understands the need for a great design and works hard for it.
  • They work on multiple platforms in parallel, so lessons learned on one platform are quickly incorporated into other platforms in the same release cycle.

Product Strategy

  • Beautifully designed product – Made-in-India products are not known for good designs. Hike is a notable exception and this will help it gain ground quickly.
  • Messaging Hub – In the world of Facebook and Twitter, there is a huge amount of information generated and consumed by people, causing information overload. Hike aims to cut this clutter and allow you to create a closed network of friends with whom you share right amount of information. This is a good differentiation strategy.
  • Close partnership with carriers – With smartphone penetration going up all over the world and cheap smartphones being available, messaging applications are well-positioned to kill SMS (and jeopardize a large portion of carrier revenue). Hike can offer opportunities to carriers to offer value-added services and retain (and enhance) that revenue.

Adoption

  • The messaging app space is very crowded (WhatsApp, Facebook Chat, WeChat, Nimbuzz , etc.) and Hike is a late entrant to the party. Still it has created considerable buzz in the market and have some impressive numbers to show.
    • In 4 months since the launch (they launched on 12/12/12), they have crossed 5M users (adoption is measured by # of active users – sending at least 1 message a day) and growing fast!
    • Over 50% of their users use hike2SMS feature, which is a key differentiator for them
  • They have used rewards (Talk-time rewards, ended now) and incentives (50 free SMS for each successful invite) to good effect to create good buzz. However, as KBM says, buzz and going viral work only when you provide a good value to the users. Hike 2.0 is expected to bring in lots of features.
  • Using digital channels for marketing and support very well: Blog, support site, Facebook page and twitter handles (@hikeapp and @hikesupport) are all well used by users and well-responded by Hike team.

Hike 2.0 and beyond

On Apr 17, BSB announced Hike 2.0, a significant release which introduces ‘circle of friends’ notion and many other features. With Hike 2.0, you can now create a circle of friends (consisting of your close friends), post status and mood updates to them, and review their recent updates. This is similar to Facebook’s Improved Friend Lists and Google + . Read the announcement for full list of Hike 2.0 new features and enhancements.

‘Status updates’ are asynchronous models of communication (you don’t expect your friends to read and respond immediately, though this Facebook generation usually does!) while messaging is supposed to be synchronous – you engage in conversation in real-time and expect a response. With 2.0 release, Hike is positioning itself as the ‘messaging hub’ for mobile-first crowd, and taking a ‘closed group, more engagement’ approach (as opposed to ‘everyone reads everything about me’ philosophy). While this might pit it against Facebook and G+ in terms of functionality, I think this is good strategy going forward to capture mindshare of an audience who is a public enough to chat with anyone, but private enough to need the solace of ‘circle of friends’. This also attracts users like me who prefer private and deep conversations and shun messaging apps because of its openness.

As Hike grows beyond the feature-functionality debate, it needs to give more focus on back-end: messaging is critical for its audience and disruptions caused by planned maintenance or rush to get new release must be avoided at all costs. 

The Road Ahead

My address book contains my US, China and India friends which add up to about 400 contacts. When I installed Hike on my phone (Nokia 710), I found hardly 5 friends who were on Hike (Hike looks for those who are on Hike and adds to your friend list). I did the same for WhatsApp, and I saw 80% of my contacts show up as using WhatsApp, including some of the people I didn’t think were in the target segment of messaging apps!

Hike has a long way to go, but I think they have started with the right product and are travelling in the right direction. May the force be with them! 

NowFloats – Getting small businesses online in 4 SMSes and 13 minutes!

NowFloats – Getting small businesses online in 4 SMSes and 13 minutes! 

I love clear mission statements, and NowFloats couldn’t be clearer:

9.6 million small and medium businesses need a website. Only 0.6 million have one. That’s 9 million tasks on our desk (and that’s just in India!)

I recently got a chance to catch up with Ronak and Jasminder (Jas), 2 of the cofounders of this exciting company called NowFloats that aims to bring SMBs online, without making them sweat over it (other 2 co-founders are Nitin Jain and Neeraj Sabharwal) . NowFloats is a team of 20 (4 founders, 4 tech, others in sales and support), based out of Hyderabad, though their customers are spread all over India. Overall, I was very excited by what I listened and saw, I sense that NowFloat holds immense possibilities for small businesses and has all the right ingredients to be successful in its mission.

The problem for small businesses

Given increasing reliance of users on search, it is becoming important for offline small businesses to have an online presence. An online presence needs to have discoverability (users know that you exist), engagement (users interact with you and like you), and conversion (users visit your offline business). However, when creating such an online presence, a small business has to grapple with 3 problems:

  1. Creating a website takes too much time and effort – even for tech-savvy type, which a small business owner is not.
  2. Updates require engaging website developer again – too much effort and dependency
  3. Online marketing is hard and expensive, and requires digital marketing expertise, not something a small business owner has

Standard option currently for a small business is to do nothing about online presence; very few businesses hire someone to create, maintain and market their site which is very expensive option without clear ROI.

NowFloats solves this problem for small business in an easy-to-use manner at an extremely affordable pricing.

NowFloats Promise

NowFloats promises to allow a business owner to create a website in 4 messages and in less than 13 minutes – send the name and address of your business, website name you desire, and your website is ready to use! If you wish to update the site (messages on message board or updating any of the original details you provided while creating the site), it is as simple as sending another message.

It may look like a simple and easy website to create, but it packs a lot of punch:

  1. Site and every message are geo-tagged, which means local searches will show up your website and deep-link to your message.
  2. Your website and each message is search engine optimized
  3. Each update is a page so it can be shared by your customers on social networks, which again has endless social, search and business possibilities.
  4. Visitors can subscribe to get all subsequent updates, or leave message for you to follow up with them 

NowFloats – The Product

Design: NowFloats is a very well-designed product. Their company website as well as the customer sites are beautiful in their minimalist and pleasing design.

Technology: They have a scalable architecture, built using Microsoft technologies. They have 4 patents filed and 2-3 are on the way. They offer subdomains under nowfloats.com in addition to allowing customers to use their own domain names if they wish – like Body Granite Gym and The Courtyard & Cafe Courtyard do.

Analytics: They care deeply about analytics that customers get about their online visitors. Businesses get weekly information about how their site is doing (# of page views in a week). On their product roadmap, they have features to provide details like which messages got max view, keywords which generated maximum views, etc., goal being to show what type of content is attracting maximum traffic.

Pricing: Pricing Plans (5K to 12.5K a year) are very competitive, given that even hosting a site costs 3-5K a year.  NowFloats is still reviewing pricing strategies based on market feedback so expect this to change soon.

Test-driving NowFloats

As I took the service for test-drive, here are my impressions:

  1. It is very easy to set this up indeed. I was up and running with http://ilovebooks.nowfloats.com/ in less than 10 minutes.
  2. As soon as the site was created, I got a call from their customer service. They wanted to confirm my identity and walk me through the next steps, including collecting payments.
  3. I realized I picked a wrong name for my business, so I wanted to change. A call to customer support informed me that they will have to do the change for me, though an app is coming which will allow self-service. Later I found it was only partially true, the name (and many other details of the business) can be updated through SMS messages even now. I promptly used the service.
  4. I wanted to update the site using my laptop, but changes can only be done using SMS, upcoming app, or customer support. I find this a little annoying.
  5. I tried to get creative and sent an html fragment as an SMS message, which created a broken message on the site. Given that I can’t update it online; this requires me to call customer support. Later I was told how to do this, and also given the current target audience, this is not an often used feature.


Customer Acquisition

Clearly small businesses see value in NowFloats offering. In a short span, they have 1600+ customers live, including customers like Hazzel Ice Cream Cafe and Dr. Chandrika’s Kerala Ayurveda . I was fascinated by the variety of customers they have attracted, including my favorite restaurant in Hyderabad, a Nokia Priority franchisee, and even a personal branding site. These sites are discoverable (through geo-tagging, auto-generated tags and other SEO techniques, sites and messages come up in ahead in all search results) and drive engagement (users subscribe to the messages, businesses get notified when someone subscribes or shows an interest). Conversion (people visiting the business) is hard to track and NowFloats team is working on some solutions that will allow such tracking.

NowFloats has multiple approaches and channels to acquire customers:

  1. Geography: Started out with targeting Hyderabad businesses. Currently they are focused on Bangalore businesses. The goal is to have pan-India sales presence soon through partnerships and other means and continue to expand city by city.
  2. Catagory: One of the innovative ways they target a particular category is to target the franchise business owners of a particular brand. For example, they have brought many Nokia Priority franchisee owners online, same with Printo. Given the huge number of franchisees in India, this seems to be a winning sales strategy.
  3. Partnerships: They have a shop-in-a-shop model with Printo. Since Printo serves much of the same customer segment as NowFloats but with a complimentary service, this is a great move to gain customers.  They are exploring similar partnerships with complimentary service providers.

Couple of other things I would like them to focus on:

  1. Online Presence: I can’t discover NowFloats online. Google search for getting my business online didn’t say anything about them in first 3-4 pages. I think they need to make their discoverability better as they go forward.
  2. Social: Small businesses thrive on communities and loyal customers who like the service they get. One of the best ways to reach small businesses is to tap into this community and loyal customer base, through social or other platforms. I would love to introduce NowFloats to the small shops I visit near me, but there is no good way for me to do so.

Competition and Differentiation

When I researched around, surprisingly, there aren’t many cost effective ways for small businesses to create online presence. India Get Online program from Google aims to get Indian businesses online and are a viable option for a small business. However, I think NowFloats offers a more targeted and sustainable product, that can potentially complement the Google offering.

Google’s strategy is to get a basic site up for you so that you are visible in local searches, to stay visible. NowFloats focuses on getting a site for you and market it online for you, thus helping you stay focused on what you do best – run your business.

What Future holds for NowFloats

I see NowFloats extending itself in 3 areas:

  1. Richer Eco-system: NowFloats plays in the local search space through their mobile app. A successful ‘NowFloats for business’ means rich data about local businesses available for their app to make use of. Controlling the supply of rich data from small, local businesses has lots of grand possibilities.
  2. Richer Revenue Models: Currently, there revenue is subscription-based, and it may be hard to show how an investment of 12500/- per year translates into increased traffic (and revenue) in their offline business. Their goal is to evolve newer revenue models that can directly tie NowFloats revenue with SMBs revenue, thereby creating a symbiotic and sticky relationships.
  3. Richer engagement with businesses – Businesses need many services as soon as they realize the potential of an online presence. Selling online, driving deals, building software solutions for their businesses, etc. all can be offered once the business is on-boarded.

Power of an idea lies in simplicity and pervasiveness. After I talked to NowFloats team, I have been observing small shops around me in a new light. If the great little corner shop selling briefs could be easily discoverable, If my favorite restaurant in Greater Noida could be more engaging, if the grocery shop in my apartment complex had an easier way to let me know of his deals, I am sure these businesses would benefit immensely. And it is so simple for them to do so now – by using NowFloats. Nowfloats is a very powerful idea whose time has come – may all the power be with small businesses and NowFloats!