7.12 Return on Investment

Purpose

-Fully developed App concept and product testing. -Surveys -Product Testing -Outsourcing survey and banding tests. -Users find the app hard to use and unfriendly. -Users do not connect with App image and branding.

Outputs

-Report that tell us about our user’s needs. -Creating color scheme, logo, image and identity. -Creating process ideations to shape the way the user will navigate through the app -Surveys -Image and Branding -Tests. -Outsourcing survey and banding tests. -Report is not giving concluding evidence about important topics that we can use to continue the developing process.

Activities

-Marketing Research to understand our potential users. -Understanding about the problems that students are dealing with to accommodate the design of the app to successfully help them solve those issues. -Pithing the app to get sponsorship and economical resources to develop the App. -Personnel -Investment from the 4 initial owners -Outsourcing marketing research services. -Pitching will be given by the owners of the App. -Problems finding information that can help us put out a helpful report about our potential users. -After pitching nobody is interested in investing in “Task” or we get a quantity that is lower than needed to continue.

Indicators

Indicators Verification Sources Assumptions

Verification Sources Assumptions

Indicatios/Means Verification Sources Assumptions

7.12 Return on Investment

Based on the analysis made when explaining the “Task” subscription model and target-

ed advertising model that we intend to ensure as the App’s main source of income in sections

above, we can have a better understanding that can help with.

In that analysis it was mentioned that under a very conservative approach, in its first

year, “Task” would be able to reach at least 1% of the total population of undergrads, that, up to

this date, is equal to 108,000 students. If the subscription cost of the App is $0.99/month, then

“Task” will be receiving a revenue equals to $106,920 per month. What is more, if we predict

that we can get an average of at least 750,000 clicks per month on our targeted ads inside the

App, we will be generating an additional revenue of $180,000/month. Combining these two

numbers, we can predict that “Task” will be making a total of approximately $286,920 a month,

which annually it will represent $3,443,040.

On the other hand, we will have to consider the costs related to the App. The main cost

associated with “Task” is the development of the app itself. According to a Clutch survey,

“skipping all the factors in cost breakdown, a median price to create an app by expert agencies

is $171,450” (ThinkMobiles). This is only for the development of the app but we also need to

consider that once the app is upon and going, there are going to be costs related to storage ser-

vices that we will have pay so users can store information and the app can work properly. If an

average cost of storing is $0.1 per GB of space per month per user, with a limit of 5GB per per-

son, then estimating that at least 108,0000 students will be using the app, we will have an annu-

al cost of storing services of $648,000.