The mobile space is really gaining ground and increasingly companies and individuals are starting to get more traction through this medium. Just take for instance Facebook; it now calls itself a ‘mobile company’.
But is that really a good thing, like the article linked above asks? Is Facebook actually making money off it and are companies that are jumping the bandwagon really getting any traction from mobile apps?
This really is the big question. And the reason why is because most companies feel that it is ‘cool’ or ‘being accepted’ or ‘with it’ to have a mobile app; whether that goes with their overall strategy or not is beside the point.
Not only is it time consuming to get traction on your mobile app, but it is also quite an expensive proposition that may not give you significant returns. The costs do not end with the development of the application. You need to market the app and also maintain it. You would need to constantly update with enhancements based on customer feedback and also to sustain their interest.
So, look before you leap and only hop on to the bandwagon if you feel it will make a significant impact on your company’s performance.
Why should you make an app?
#1 – Customer Engagement
The best thing about the mobile channel is that it gives companies the potential to engage with their customers in real-time, by location and complete with profile information. You need to get your customers to talk to your brand and not the other way round.
This, of course, is one of the most challenging category, but if done right, can help turn those engaged customers into revenue generating ones. Take for instance Kraft’s iFood Assistant. The application offers over 2000 recipes, many of them using Kraft products with shopping lists and interactive deals and coupon features to incentivize shoppers. The app also includes social sharing capabilities allowing consumers to share recipes with friends on social networks.
#2 – Customer Service and Support
Making it easier and more efficient for your customers to get in touch with your company and offering them tools to make their life easier while using your products or services can be a great reason to develop a mobile app.
Digital Federal Credit Union, based in Marlborough, Massachusetts, has launched an app called Mobile PC Deposit that allows members to deposit a check using the iPhone and Android-based smartphones, among other platforms. This makes customers’ lives easier and is a fantastic value add to their service.
Another example is Air Asia, giving customers the ability to ask questions through their smartphone. The iPhone app has reportedly generated two million downloads and the introduction of the app is said to have resulted in a 40% reduction in contact center costs.
#3 – Monetization
One of the most popular means to attract more customers to your business to monetize from is offering coupons. And mobile adds an interesting layer of location-based push notifications. So imagine being the owner of an apparel store in downtown New York with thousands of people in a 1 mile radius of your outlet and if they were to get notified on their mobile phones about your offer with a coupon delivered to them, what is the likelihood of them visiting your store right then?
Target offers mobile coupons and you’ll get money-saving offers on items delivered via text message to your Web-enabled phone with a link to a barcode and discount offers. To redeem, simply show your coupon bar codes to the cashier, who will scan them like a regular coupon.
#4 – Extension of your Product/Service Experience
If you sell your products or services (cloud-based) online, a mobile app may be an option worth considering. What is does is that it gives your customers the mobility to do the same things that they would traditionally have done sitting at their desks.
Many examples for this one where most online shopping companies have extended their offerings to customers who want to shop on the go using their mobile phones. If you’re a service company, you too can capture a larger share of the market such as what Dropbox did.
Whatever is your reason to develop a mobile app, make sure that it blends in with your company’s business plans. And if you really must develop up mobile app, think of creative ways from the above areas that will capture your existing or potential customers’ fancy.
And when you’re ready to develop, look up Arkenea, a service partner to entrepreneurs and small and mid-sized businesses helping them develop their mobile apps. (Disclosure: I’m the co-founder of the company)
Daman Anand
Rahul,
I have a question. If one has an e commerce website and also a mobile version, why should one go for an app? I have been thinking over this with no satisfactory answer. My website is http://www.indiafloristdirect.com
Abey John
Daman, that depends. Can’t say without testing. But you are in a event driven/opportunistic space (birthdays, anniversaries etc).
You will need to think long and hard about the value your app will add to a user who orders a few times a year. Great way to push notifications though. Hmmm. Probably an app that hooks to event data from FB/Google calendar and pops a notification reminder. “Your friends xyz’s birthday is on 1st April. Order a bouquet today and we’ll see he sees it first thing on his birthday morning.” Question is ROI: value of orders placed and lifetime value of app using customer. Generally the app enabled customer esp on iphone will have higher LTV.
Daman Anand
Abey, thanks for your reply. Now this brings me to another question. This also I have been thinking for long. Suppose its your birthday tomorrow. Now I want all your friends to see my paid Ad on Facebook which says, hey its Abey’s birthday tomorrow and click here if you wish to send him some flowers. Are you aware of any such Facebook app? This Ad should also have filters like all those who are in Delhi, age group so and so. Thanks in advance.
Rahul Varshneya
Hi Daman,
There should be a compelling reason for creating a mobile app. Most often, it is driven by consumer demand, specially in a venture like yours.
How many times will the same person engage with your website? Is it going to be once a day or twice a week? Then probably it makes sense to develop a mobile app. But if the interaction is much less, which I’m guessing it would be given the nature of business, mobile app may not be such a good idea.
Study your analytics and check for source devices. If you see a decent number of people, at least 10% accessing your website through their mobile, you should consider building a mobile website, which will be far most cost effective and will serve the need of the audience.
Hope this helps.
Rahul Varshneya
Facebook itself runs this service where if it’s your birthday, it gives you the option to buy a gift. Facebook had recently bought an app which did that on their platform.
Daman Anand
Rahul, thanks for your frank and candid opinion. This is what I thought. For now, I do not see much value with an app as an average user buys flowers only 5 to 6 times an year.
Daman Anand
Unfortunately people do not buy flowers for themselves on their birthdays.Anyways thanks for your input.
Abey John
This is supported to FB ads I think I saw those birthday targeting options in there.
Abey John
Hmmm another angle. Try and find app sellers who sell event apps and cross promote. Give them a special deal or something. If there is a birthday tracking app you could offer a deal to the publisher to push your offer to their users.