6 Financial Benefits of Offering a Mobile App
Regardless of the vertical in which your business operates, publishing a mobile app has the potential to both save and earn you money.
In virtually every industry, companies are beginning to recognize the value of building their mobile apps. More than a standard mobile-friendly website, a mobile app allows you to engage and delight countless consumers around the globe.
Studies show that consumers today spend around 4.2 hours a day using mobile applications, but they only spend a fraction of their time visiting websites on mobile browsers.
Learning how to make a website into a mobile app, or to create an app from scratch, can seem like an expensive endeavour, even with easy-to-use platforms. While there are initial costs to consider for development, offering a mobile app can help you save – and even make – money in the long term.
Turning your website into a mobile app is quite an affordable way to unlock significant opportunities for growth, a common practice many of today’s businesses turn to to increase customer engagement and loyalty. Here are the key financial benefits of building a mobile app.
#1 - Save Money on Marketing and Branding
First, a mobile app helps to boost brand visibility and recognition. It places your brand experience in a new environment (on the Google or Apple app stores), and gives you a way to showcase your logo to your customers on a daily basis. As soon as your customer downloads your app, they’ll have a constant reminder of your brand on their phone.
This can reduce the amount of money you need to spend on brand awareness and retention marketing campaigns, by ensuring your company is instantly visible to mobile users.
If you create an excellent user experience, you can also turn your customers into advocates, who will recommend your app to users, increasing download rates, and referrals. You can even integrate your app with social media platforms, allowing users to share their experiences via their profiles, for a powerful network effect.
#2 - Increase Customer Engagement
Research shows that customer engagement is directly tied to revenue growth. Bain & Company has found that engaged customers spend up to 40% more than their peers. While you can drive engagement to your mobile website using marketing campaigns, mobile apps are often more effective at preserving high levels of engagement.
Studies show users spend up to seven times more time in mobile apps than they do on mobile browsers. Plus, mobile apps give you opportunities to keep pulling customers back into the app experience. Push notifications can automatically inform your customers about the latest deals, experiences, or features your app has to offer.
This means even if they forget about you and your business temporarily, you can remind them to keep visiting your app without relying on them finding your social posts, or reading your emails.
#3 - Reduce Purchasing Objections
The evolution of mobile apps has led to new and exciting features in these tools that can significantly improve your conversion rates and revenue. For instance, augmented reality, a feature common in many mobile app experiences today, can allow consumers to “try on a product” or see what it looks like in their homes without actually visiting a store. Studies show that 80% of consumers are more likely to buy a product after they’ve experienced it with augmented reality.
Mobile apps can also reduce your risk of purchasing objections and hurdles in other ways. For instance, they can include access to a chatbot that can instantly answer any customer questions before they make a purchase.
You could also create mobile app experiences that simplify the purchasing process for your consumers. For example, you might allow customers to set up recurring subscription plans or payments they can control through their mobile app. This means they can essentially “set and forget” their purchasing habits.
#4 - Higher Conversions with Personalization
Effective personalization leads to a 10 to 15% lift in revenue for most companies. While there are many ways to personalize an experience for a customer, mobile apps can make the process a lot simpler. For instance, you can use location-based targeting and beacons to send messages and push notifications to your customers, wherever they are.
This means retail stores can share specific offers with customers when they’re close to a store. Additionally, since mobile apps allow you to gather information about your customers, with access to their profiles, you can use AI to deliver more personalized product recommendations.
You could offer customers distinct deals and discounts based on their most-purchased products, or their loyalty to your brand. You could even use personalized strategies to sell partnership services. For instance, a free budgeting app could recommend specific paid bank accounts and credit cards based on a customer’s identified goals.
#5 - Boost Customer Retention and Lifetime Value
Customer retention is the key to financial success, particularly in today’s economic environment. It’s easier to convert a loyal customer than a new prospect. Plus, loyal customers are 50% more likely to try new products and spend an average of 31% more per purchase than new customers.
Developing a mobile app is an excellent way to increase customer loyalty and retention rates. First, consider the fact that 85% of customers prefer to shop in an app instead of a browser. This means e-commerce and retail companies can adhere to their customers’ specific preferences, improving the experience they have with the brand.
Mobile apps also give you a range of ways to enhance loyalty. For instance, you can create a “loyalty program” within your app, where customers can earn tangible rewards every time they interact with you. You could even offer rewards for actions like inviting other users to download the app.
#6 - Generate Profits Through Insights
Finally, a mobile app offers businesses an exceptional way to increase profits and even reduce costs with access to valuable market insights. A mobile app can provide you with a huge amount of data about your audience’s preferences, how they interact with your brand, and even which products they purchase and when. This can help you to craft more effective product offerings and marketing campaigns.
For instance, if you learn that your customers are most likely to use your app at a certain time each day, you can tailor your push notifications to arrive just at the right moment. You can even use your mobile app data to find out more about customer service needs, so you can schedule employees according to the right strategy, and reduce your labor costs.
Mobile apps can give you a wealth of information you can use to strengthen the customer experience and enhance your sales strategy.
The Financial Impact of a Mobile App
Investing in a mobile app isn’t just a good way to keep up with the latest trends in today’s digital world. Increasingly, mobile apps are emerging as a valuable tool for companies looking to reduce operational costs, increase profits, and unlock new opportunities.
If you’re wondering whether a mobile app is worthwhile for your business, the evidence above shows that it definitely can be.