Why do we need a mobile app? The business side of story

People download apps everyday. Some are used frequently; many are abandoned or never used. But still almost every business entity has its mobile app. Why? The answer lies in the behaviour of consumers; us!

We have screen-full days. Our day starts with a screen, ends with a screen. We use our smartphones for anything and everything during the day. Missed a meeting? Mail just a tap away. Not feeling well? Video call from home. New movie released? Tickets right in your inbox. This POWER of having everything within the reach of a tap, is enabled by mobile apps and businesses leverage it for increasing their reach into our hands.

So what makes a business want a small piece of real estate in your mobile?

Businesses use mobile as a tool to increase their brand recognition through increased penetration and brand recall. It is necessary for every business to leave an impression in the consumer’s mind. Mobile apps empower businesses to analyse consumer preferences and intent apart from their demographics and location while using analytics engine. This enables them to improve their services and provide user targeted content which connects more with the person.

Below are some points:

Shift from Web to Mobile

Consumers have started shifting from accessing information from a desktop and laptop to Mobile and Tablets. They now spend 99.5% of their time in consuming information (Search Engine Watch). So why should businesses be behind? Ultimately businesses would follow anywhere consumers feel comfortable accessing their services. They have started to accept the shift of trend and move into the mobile space. This not only serves as an add-on channel but also is cost effective given the penetration and usage it has compared to its web counterpart.

Visible to customers all the time

According to research, the total time spent on mobile device by a person is huge! Consumers pick up their mobile phones 150 – 200 times in a day (Forrester). And approximately 85% of the time a person uses his mobile is by using apps (excluding games).

(Marketing Charts)

While probably only a few apps make up in a device, it doesn’t change the fact that they are right in front of you while locking, unlocking and swiping; which happens all through the day! This is important to a business, as a person’s mind unconsciously records everything that it comes across.

Customer engagement to ensure customer loyalty & build brand recognition

Primary goal here is to gain and retain the attention of users. Push notifications ensure content is delivered to the consumer based on their location, interest and time. Gamification and mobile app contests gives an opportunity to get the products, services more visible to the consumer which lead to more business and retain existing customers. However, any bad experience with the app (not finding relevant information or is too slow) will just drop the trust and brand perception to the bottom.

A direct marketing channel to promote products, increase reach & generate revenue opportunities

Mobile app is an opportunity for the business to showcase its products and services out to the consumers and gain more traction. Users can share the content and promote a business on Facebook, Instagram and other social media apps. Advertisements with user targeted content are guaranteed to be viewed by users who are likely to generate business.

Mobility to do things

A mobile app enables a business to be available at all times, during day & night, weekends, holidays and allows users have an on-the-go access to business’ products & services. This engages the customer more than anything.

However, there is a fundamental roadblock that businesses have to face:

Limited space on mobile!

On an average consumers only use 4-6 apps in a day as compared to 40-70 apps installed on the device. This is fairly a small number for business to fight for. On the other hand, 72% of the consumers uninstall their app because it is a battery or memory hogger (Emarketer).

Even though Businesses can leverage Mobile as a powerful channel to engage more customers, the truth is, if they are not able to keep consumers happy with better user experience on the app, they are out of the device!


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