The Lunch Pail

App envy can be a dangerous thing.

There is a lot of sizzle in the iPhone app universe that is being driven by the 30-second spots. It works to get a lot of marketers – CMOs included – hypnotized with starry-eyed app envy. Marketers with a bad case of app envy can make poor decisions about when an app is or is not beneficial, what an app should be used for, what value an app provides to the consumer and for the business, and even whether other apps (Android or Blackberry, anyone?) need to be considered.

Nationwide Insurance is running a comprehensive broadcast campaign promoting their Nationwide Mobile for iPhone app, and I believe this warrants a review of the experience to see if they were delivering on the hype they are paying big dollars to create. To some degree they succumb to the sizzle of the app – spending big dollars on a national TV campaign announcing they have an iPhone app. A brand can alter its perception with consumers in dramatic ways simply by broadcasting “we have an iPhone app, now. We, too, are uber-cool.”

To its credit, Nationwide avoids the pitfalls of the all-sizzle-but-no-steak approach to app marketing. Nationwide did not let app envy cloud the strategic vision and execution, and this is why the app provides a solid case study that can be applied to other enterprises in industries such as insurance, financial services, telecom and broadband, etc.

One of the classic pitfalls of app development is losing focus on scope. I use the basic formula of “content + time + place” as a filter for scope and functionality decisions. “Is this content useful and appropriate to the user when and where they are.” Nationwide focuses most of the functionality of the app appropriately on tools helpful to a driver while they are on the roads (primarily within the context of a fender-bender). The scope of the app is tidy, providing an excellent user experience. Drivers – whether Nationwide customers or not – have access to very slick tools for documenting all aspects of an accident. These tools are mind-blowingly relevant – exchanging driver and insurance information, recording contact information for witnesses, taking photos of the scene and damage, calling the police, calling a tow truck, and give directions to the nearest body shops. While you’re waiting for the police to arrive on the scene you can have a full accident report detailed to expedite the claim process.

I initially feared the features for non-customers would be out-of-scope and a misguided attempt to recreate their entire online presence or corporate website within an app – another symptom of app envy and clouded judgment. Nationwide found a very useful balance in tools and services provided to any iPhone user, regardless of their insurance company, and this must be applauded. Yes, certain functionality is necessarily limited to customers, but this does not interfere with the overall value of the app.

I am not a Nationwide customer, but Nationwide provides enough functionality to create value for me. The pitch they are making to me is subtle and driven through a very positive brand experience. If I use the tool I can easily look up the nearest agents to facilitate a switch. It’s the ultimate soft-sell and I love it. For that, I will tolerate 30-second spots telling me about the app.