With the latest report by Comcast showing that 87 percent of smartphone users spend their time in apps and the number of app downloads hitting record highs in 2020, the mobile app market is proving to be a lucrative investment for businesses. Businesses invest in a mobile app as a way of extending their sales channels, improve customer service, and driving recognition of their small business brand. However, with large corporations spending as much as $1000,000 on their business app development, there is no doubt that it is a hefty investment. For smaller businesses, the price tag can still be between $50,000- $100,000. Therefore, if you take the financial plunge into app development, you must ask the key question — is it the right move for my business?
Does Your Customer Base And Target Audience Align With A Mobile-Friendly Audience?
Similar to targeting your marketing strategy, aligning your mobile app development helps you identify the customer segments that are most likely to use your mobile app- and ones that it is most likely to convert uses to sales. If your business’ key target market is not frequent users of mobile apps or preferring mobile shopping, then investing in a business app may not be a great move right now. With this in mind, you need to have a clear and defined target market in mind for your mobile app.
Research has shown that millennials and generation Z are leading mobile shopping preferences. According to YPulse’s Shoppability survey, 82 percent of consumers aged 19-37 years olds use their phones to shop online at least once a month. Meanwhile, 50 percent of those aged 25-37-year-olds open a mobile shopping app at least once a week. Take the time to do your market research and figure out whether a business app is a tool that could address concerns of your target market- and whether it is one that will resound well amongst your customers, current and potential.
Can Your Business Budget Handle App Development And Maintenance?
One of the benefits of investing in a mobile app for your business is that it provides another contact platform between you and your customers. It is also highly customizable, giving you the chance to include key features customers want from a mobile app like personalization and easy navigation. However, each of these features come with a cost attached to them- now and in the future. In addition to investing in app development, your business budget must be able to handle the inclusion of regular app maintenance costs and overheads including any promotional plans for your application. It is not enough to invest in developing a great mobile app for your business; businesses must also invest time and money in driving downloads one launched.
Will A Mobile App Aid Achievement Of Your Company Goals?
There is no doubt that a business app can be a great source of marketing, customer service, and increased revenue. With consumer spend in app stores steadily rising and a continuous shift towards digital/mobile shopping experiences, the inclusion of a mobile app can provide a great way to increase your revenue and attract new customers. However, even with all of the benefits supporting the investment of a business app, the decision to invest should still be in line with the company’s overall goals i.e. what it wants to achieve. Are you looking to increase brand awareness on social media? Is your business looking to boost customer engagement? Have your customers cited demand for checkout or browsing options?
With the growth of mobile commerce accelerating this may be the perfect time to invest in a business app. The popularity of mobile apps is rising and mobile spending per consumer is set to increase from $344 to $946 per consumer by the end of 2021. However, before taking the steps to enter the mobile app market, you need to be sure that it fits in with your business goals, direction, and market.