What Are the Benefits of Having A Mobile App for Business?
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In comparison, the time users spent on their phones browsing websites was approximately ten times less in most markets. In a world where more & more people are spending huge chunks of their lives on apps and not websites, it’s not surprising to see companies jump on the mobile app bandwagon. But, is this bandwagon worth it? Most tech experts say yes, it is.
Mobile apps can offer better personalization, provide more accessible service, & send direct notifications to consumers. Many business functions can only be performed via apps. Here are some examples of business-critical functions in different industries that can only be performed via mobile apps:
Event Management: In the post-pandemic world, large public events that feature hundreds of vendors, visitors, speakers, etc., are too complicated to manage without integrated software tools & user-facing apps.
eCommerce: New-age consumers are used to shopping on Amazon or Walmart apps. eCommerce companies that only sell via websites fail to provide the convenient shopping experiences eCommerce apps provide.
Financial Services: The global digital banking network is expected to consist of 3.6 billion participants by 2024. Most of these consumers use mobile apps to fulfill their day-to-day banking needs.
Field Service: In any industry where professionals engage in on-field service, real-time reporting is a business-critical need. Custom mobile apps enable employees to fulfill this need.
Customer Service: Having a digital product with your brand name on it in a customer’s pocket at all times is a huge step towards building customer loyalty. Plus, customer service agents can help customers directly via personalized mobile apps.
Any customer-facing business can benefit from having a mobile app, especially retailers whose businesses rely on building personal connections with consumers. But, developing an app can cost anywhere between $20,000 to $150,000 in 2023. Is fulfilling a few business-critical functions worth this fee? Yes.
Benefits of Having a Mobile App for Your Business
Constant Availability
In the 21st century, a company’s customer service efforts must go way beyond face-to-face interactions. Approximately 6.8 billion people across the globe will own smartphones by the end of 2023. Customer service in such an era should be focused on being constantly available & accessible to these billions of potential customers. That’s what apps do for the majority of brands.
Mobile apps allow brands to be ever-available for their customers, even more so than business websites. Mobile apps are available & can be interacted with even when users don’t have working Internet connections. Having an app with your brand name on your customer’s phone at all times is the key to building a strong foundation for your customer service efforts.
Once this foundation is built, you can perform all types of important, customer service functions via your business app, including:
Answering questions via human operators or AI-powered chatbots
Collect user complaints about your products/services
Upsell and cross-sell products/services directly to customers.
Collect data about customer interactions & mine the data to further improve your business offerings, customer service processes, marketing efforts, etc.
A custom-designed mobile app can make your company easy to interact with. It can personalize how customers interact with your brand. The quality of personalization will only improve as you use customer data to refine your customer service efforts. In short, a mobile app can set off a circle of satisfaction for your customers.
Direct Marketing Channel
Digital marketing accounted for approximately 57% of all ad spending in 2023. This figure is expected to go down over the next few years, mainly because of inflation, slowing global growth, & rising interest rates. Any company that’s planning to cut down its marketing spend in 2023 can benefit greatly from having a personalized business app.
A business app will always contain key information about the business. So, if your brand is unable to share important information with customers via expensive marketing avenues, you can always rely on your app. Unlike pop-up ads or paid search campaigns, sending push notifications via your app doesn’t cost money.
Informing customers about new business offerings/features via your mobile app will always be cheaper than relying on indirect and expensive communication tools like marketing or advertising.
Collect Customer Insights
There’s a long list of customer insights that a mobile app can collect for a business if it features the right tracking features. Some of them include:
Customer demographics (age, gender, real-time location, etc.)
Active users
The number of sessions the average user engages in per day
Average session length
Pages viewed on the app
In-app purchases
Customer churn (tracking users who stop using the app)
Customer engagement rate
Customer interests and preferences
Customer retention rates
Average customer lifetime value
Average customer acquisition cost
Customer referral rates
Response rates to promotions and discounts
Interactions with customer service professionals, chatbots, and virtual assistants
Interactions with push notifications
All of this data can be sanitized and analyzed to identify consumer behavior patterns and trends. E.g., you can perform customer sentiment analysis to understand what types of marketing campaigns appeal the most to your customers. You can also perform cohort analysis to evaluate customer retention rates on different pages or sections of your app.
Real-time user analytics can also help you recognize the best time and avenue to engage with your app users. Many AI & ML-powered statistical analysis tools can help you take data-based business actions. E.g., you can use customer data to further personalize your app/website’s customer experience or create targeted marketing campaigns.
Boosting Brand Visibility
In marketing, there’s a concept called “effective frequency.” It refers to the number of times a consumer needs to be exposed to an ad within a set time frame to take actions that the brand behind the ad desires. According to Facebook, the effective frequency of the ads on the platform is somewhere between 1.8 and 4.
That means the average Facebook user will respond to your brand’s Facebook ad only after he/she has seen it over 1.8 times. Now, the average smartphone user checks their phone at least 58 times per day. That means if your business app is on a smartphone user’s phone, they will see your brand name & logo at least 50+ times a day.
That means your business app’s effective frequency is way more than the standard PPC ad or marketing newsletter. Of course, merely viewing your app’s icon 50 times a day won’t compel users to take specific actions. But, just the fact that your company’s mobile app is being viewed so many times a day is great news for your brand.
You’ll still have to make additional marketing or customer service efforts to make them engage in your services/products. But, your brand’s identity will start solidifying in your customers’ minds the day you make them download your business app. This identity will only grow stronger the more they use your business app.
The Chance to Offer Something Unique
Starbucks has a mobile app that allows users to pay in advance so that they can skip the line
Audi has an app that allows drivers to remotely locate their vehicles, start, or stop their vehicles
Nike has an app that allows users to set and track fitness goals
Walmart has an app that allows users to scan in-store items to check prices
The New York Times has an app that recently went viral for its daily word game
Do you notice the trend? Every major brand offers something unique to its customers via its mobile apps. Creating an app can allow your business to do the same and stand out. Offering unique, out-of-the-box user experiences isn’t something that only major brands do. Many small businesses have leveraged their apps to do the same:
Honest Tea uses its app to allow customers to track their carbon footprints.
Warby Parker uses its app to encourage customers to try on their glasses virtually.
Blue Bottle Coffee uses its custom app to let users order and pay for their coffee ahead of time.
Cava is a Mediterranean restaurant chain that uses a custom app to let customers order ahead and pay in advance.
Glossier is a beauty/fashion brand that uses its mobile app to educate customers about its products.
Harry’s is a men’s grooming brand that sells razors, shaving cream, etc., only via its app.
Indochino is a custom-clothing brand that allows users to measure themselves on the app.
All of these small and big businesses offer something unique to their customers via their apps. These unique experiences contribute greatly to the long-term loyalty of customers. Overall, the benefits of having a mobile app for business far outweigh the costs & challenges involved in the process!
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