The global mobile application market size was valued at $106.27 billion in 2018, and projected to reach $407.31 billion by 2026, growing at a compound annual growth rate of 18.4% from 2019 to 2026as per Allied Market Research. Despite 90% of Small and Mid-sized Businesses (SMBs) being major drivers of global economic growth (Salesforce, 2019), they have only scratched the surface when it comes to enterprise adoption of mobile apps.
With a steep increase in mobile phone usage, 6 out of 10 shoppers say that being able to purchase products on mobile devices is a key factor when it comes to choosing brands or retailers to buy from (Google, 2019). Though this is staggering, many SMBs have failed to adapt to the changing needs of customers which has led them to become irrelevant. Guidant Financial, an American small business financing company has noted that failure to adapt is one of the top five reasons why small businesses fail.
MOBILE APP VS MOBILE-FRIENDLY WEBSITE
Most enterprises, regardless of their size, own websites. It does give your business an online presence, but is it sufficient to be just digitally present? With the desire to build a brand identity and amplify user engagement, large enterprises are investing on latest technologies and digital tools to have an edge over their competitors. Creating enterprise mobile app is one such endeavor that takes user experience and brand interaction to a whole new level.
Though large companies have fully understood the benefits of enterprise mobile app, small businesses are still in the nascent stage.? Here are some key ways in which a mobile app can enhance your business.
Reach – A report from Sensor Tower revealed that consumer spending on mobile apps and app installs grew significantly during the first half of 2020, reaching $50.1 billion worldwide across the App Store and Google Play Store. The same report also estimated there were 71.5 billion first-time app installs during the first half of 2020. A website, as a stand-alone marketing tool, can never draw this many customers to view it. When it comes to marketing, mobile app and websites can work hand in hand to achieve your business goals.
Purpose – a mobile app can create a “fun experience” for its users through engaging content whereas a website can serve as the product/service information portal.
Connectivity – mobile apps can provide information in the app (such as store location, hours, menus, and products) that can be accessed even without the internet.
Features – mobile apps allow businesses to provide customized in-app ads and discounts.
Sales – while websites takes a passive approach to sales, apps allow you to actively push marketing laced messages.
Speed – Apps can retain user data, enabling one-click checkouts and minimizing load times which is not the case with mobile websites. Website conversion rates drop by an average of 4.42% with each additional second of load time. (Portent, 2019)
Brand loyalty – 40.4% of all users buy more of a brand’s goods after downloading its e-commerce app while mobile websites barely retain 40% of all visitors past the first few seconds.
View rate – research done by Criteo shows that mobile apps are the deal makers with consumers. People view 4.2x more products per session within apps, compared to mobile sites.
Conversion funnel – mobile apps boast 3x higher conversion rates compared to mobile websites.
Shopping Cart Abandonment (SCA) – SCA on mobile sites is much higher than on desktop, driving the global abandonment rate up to 73.4 percent. Mobile apps reduce shopping cart abandonment by saving user data and pre-loading the information when the app is opened.
MOBILE APP DEVELOPMENT BENEFITS FOR SMBs
The human mind registers what it sees. The more your users see your brand on their mobiles, the more your enterprise stays in their minds. This factor plays a vital role when your customers decide to purchase.
3600 customer life cycle
Mobile apps play a crucial role in user engagement through the five distinct stages of customer life cycle: reach, acquisition, conversion, retention, and loyalty. Through engaging content and regular interactions promoted by push notifications, your enterprise can easily move users down the purchase funnel.
Market research made easy
Test your new products with your existing user base. This will reduce your market research cost to a great extent and also create a buzz among your customers. You could use A/B testing method to understand which variant of the new product is received well by your audience.
Look-alike modelling strategy
Another innovative marketing strategy, this method helps you to identify new users based on the characteristics of your seed users. This modus operandi will increase your enterprise ROI.
Real-time user triggers
This highly personalized custom marketing (based on user behaviour, location or transaction pattern) at the relevant moment improves customer experience and generates more income for your enterprise.
Want to offer a discount to your customer in the vicinity of your brick and motor shop? or Do you want to send a surprise birthday wish on your user’s birthday? Push notifications can amplify customer engagement and thereby enhancing customer loyalty.
THE NEXT STEP
Here are the pointers while considering a mobile app for your enterprise.
- Be clear on what your enterprise wants to achieve through the app.
- Choose a well-experienced app development company.
- Choose the best platform for the app (cross-platform or single platform).
- Build a minimum viable app focussing on all the crucial features.
- Scrutinize the ways to market your app.
- Come up with monetization methods using the app like private advertising to boost your enterprise revenue.
Compared to traditional marketing, mobile apps, with its unique features like personalization and customization, have created a new marketing platform for SMBs. Mobile application advantages are numerous and will put SMBs on a growth path.