Mobile apps here to stay

4 min read

The global mobile app market is expected to hit $ 189 billion by 2020, sentiment that these applications are on the way out might seem largely unfounded. In fact, you just need to walk around or sit in any coffee shop to see people of all ages glued to their mobile devices.

According to Statista, the number of worldwide mobile phone users is expected to pass the 5 billion mark next year. Already, smartphone users account for close on half of the mobile population. But is it necessary for a business to have both a mobile-friendly website and an app to cater for its customer base? Given current economic conditions, would it not make more sense to pool resources and focus on developing a comprehensive mobile app instead?

The debate between having a mobile site or having an app might appear to be topical but the reality is quite different.

Data-driven world

Understanding the importance of data is fundamental to choosing the strategic path to follow. In recent years, data has been said to be the new oil of the digital age. The Economist published an article last year that illustrated how data has become the latest commodity that is spawning a lucrative and fast-growing industry.

But unlike oil, which has a finite supply, the amount of data being generated is expanding by the second. The World Economic Forum estimates that in the next two years,  40 zettabytes of data will be created. To put this in layman’s terms, it is the equivalent of four million years’ worth of HD video.

And with all that data, making sense of it becomes a priority. But how best can a business capture relevant data from its customers? Websites are generally designed to push information to visitors, whereas apps can gather data (and insights) surreptitiously without impacting on the user experience.

Of course, this does not necessarily make an app the silver bullet many hope it to be. Consultancy Localytics found that 22% of people who download an app only use it once. It is therefore vital that an app (much like a website) grabs the attention of the user immediately. It needs to create value and offer the consumer a reason to engage with it.

Unlocking features

Already, mobile apps, unlike web pages, provide for a richer user experience thanks to their ability to use more of the functionality of the device. Think about your banking app, for example. It can use the built-in GPS to determine the ATM or branch closest to you. Similarly, a restaurant review app can highlight quality eateries in your proximity and can even plug into your social network profile to offer you more customised choices. After all, if you do not like sushi then what is the point of recommending such a restaurant to you? 

Security company Fidelity ADT have embraced the Mobile app concept by offering their members a dynamic solution to home security. “With the correct hardware and equipment, the app will allow customers to view the status of their home security system, arm and disarm their alarm, switch and dim the lights, detect movement, and so much more using their smartphone. Using geolocation technology, the mobile app can automatically arm the alarm when a customer is 5km away from home. These features not only provide convenience but also further enhance home security because it creates the illusion that someone is home.’ comments Johan Joubert, Product Manager.

Mobile apps are also a brilliant way of capturing user data to provide a more unique experience. It gets to ‘learn’ about its user and share that insight with the company. In turn, the company can determine in what areas to invest future research and development and can even customise existing solutions to better fit the profile of its users. Medical aid apps, insurance apps, take your pick … they are all able to build a rich profile of a user that can help optimise premiums according to the individual instead of a demographic grouping.

A personal experience

But how much of an impact does an app have on customer growth? Does it really mean your business will be successful if people are downloading and using your app? Well, in a way, the answer to both these questions is yes.

Customer relationship management firm MyCustomer believes that the app is a great way to gain new customers for a business. It quotes statistics that show how app users tend to spend three times longer online compared to those simply accessing a mobile-friendly website. One of the problems when it comes to app development is that decision-makers tend to want all the bells and whistles installed straight off the bat.

But keeping it simple and using feedback from the user community to continually tweak and customise a business app are important elements when it comes to really benefiting from a mobile app. Also, finding ways of rewarding customer loyalty via an app is a great strategy to ensure people keep ‘coming back for more’. Think about how well Makro and Discovery are utilising rewards programmes on their apps and enticing customers not only to spend more but to keep on engaging with the companies using their mobile devices.

A 2017 survey conducted by market research firm Clutch has found that 42% of small businesses surveyed have built a mobile app. The primary reason behind this was to improve customer service and increase sales. Additionally, the surveyed small businesses admitted that the most valuable app features for them were social integration, mobile payments, and personalisation – all areas driven by data capturing, analyses, and insights.

So, can you really afford not to look at developing an app for your business?