People have embraced the smartphone era. Most people are within arms reach of their phones 24 hours a day. Our profound love of these devices has prompted companies to consider developing mobile apps. In many cases so that customers can easily interact with their company and business. It might sound like a great idea for a company to join the club and develop a mobile app, but is this a good decision for your business? As you might expect the answer is not as simple as either “yes” or “no.” This article states the pros and cons to help you determine if spending thousands of dollars on developing a mobile app is beneficial to your business.
PROS TO CREATING A MOBILE APP:
– Mobile apps can be a great way to marketing your business. They can provide instant notifications to alert your customers about the latest offers and discounts your business is running. This allows customers to be on high alert and to respond in an instant to your deals and promotions.
– With additional features, you can create new user-friendly experiences. For example, by adding a sort of reward system in your app you can engage customers and make them feel appreciated for their purchases. This increases satisfaction and makes them more likely to return to future business.
– Some apps can generate business revenue with in-app purchases. This is going to be applicable based on your industry and business model. This could mean that customers are buying group discounts, coupons or buying products or services right from their phone.
– Apps can boost your business social media presence and overall rating. Many apps connect with social media and can prompt users to join your social media channels to login or use the app.
Mobile apps also have a review system and in most cases social media sharing. This further allows your company to build an audience and generate forum-like interaction. Customers can speak with company representatives and bring up their personal enjoyment or customer service questions. This directly affects the download rate of the app as well.
– People love downloading new apps. More than half of all smartphone users have 30-70 apps installed and the average user will download around 9 apps per month. This means people are constantly downloading the latest apps for convenience as a customer.
CONS TO CREATING A MOBILE APP:
-The cost of development is extremely expensive and time-consuming. Developers will typically charge you from $20,000 to a whopping $100,000 to develop your app, depending on the complexity and quality of the app you’re searching for. The process is also extremely time-consuming, as it may take on average 4-8 months of development.
– There is usually long-term investment in maintenance. If an app runs slowly, it can really have an impact on the uninstall rate. More than 48% of users uninstall slow running apps. It almost forces a business to pay additional fees to their developers so they can run regular maintenance on the app. This is especially true whenever IOS and Android software is updated as developers will need to ensure the app can run on the updated software.
– Profit-shares with iOS and Android. If you are thinking of getting revenue with your app, whether it be through purchases via the app, paid downloads, or subscriptions, keep in mind that there is a substantial cut that both Android’s Google Play and Apple’s App Store have. They both charge a 30% rate for all app related purchases and 15% for subscription-based purchases. This, of course, does not include tax, and it really cuts a huge portion of the revenue.
– Uninstall rates are at an all-time high. Unfortunately, as much as people love to download apps, on average, apps have a 5% retention rate within 30 days of being downloaded, which means after just one month 95% of installed apps get uninstalled.
– The App game is competitive and flooded. Because of the App stores being flooded with miscellaneous apps, it is directly dependent on the following of your business for people to even find the app. If your business lacks the audience the huge investment in the development of the app might just have been all in vain. Because there’s no reason to pay for an app if you have no audience to download it in the first place.
OUR VERDICT ON CREATING MOBILE APPS FOR YOUR COMPANY
The simple answer is that mobile apps should be used primarily by large companies that have huge amounts or recognition throughout the market. If you are a small company and still working to create a household name for yourself there are far better options for your marketing dollars to be invested. Most small to mid-sized businesses don’t have the following necessary for the success of an app. If you’re looking to advertise your company in a new way try to change up your online marketing methods. What are your thoughts on creating a mobile app for business use? Have you found success in the past? Let us know below.