By 2023, Mobile Apps are projected to generate over $935 billion in revenue through paid downloads and in-app advertising (iResearch, 2019). While the key eCommerce indicator for a while has been how many sales are made online, the reality is that it is not that simple. As seen in the graphic below, omni-channel activity occupies 75% of buying activity.
Considering that most people habitually carry their mobile devices with them, this poses an incredible opportunity exists for businesses to use Mobile Apps to reach their target audiences who do not only use their mobiles for online purchases only.
BENEFITS OF MOBILE APPS FOR YOUR BUSINESS
1. A Mobile App can increase sales
Whether you are a coffee shop, fitness studio, restaurant or any other type of business, increasing sales of your products and services is what will lead to the success of your business.
Research shows that time spent in-app correlates strongly with sales. People use your Mobile App to connect with your brand and to research purchases. The more time they spend doing this, the more they are likely to buy from your business.
2. Customers are also increasingly purchasing on Mobile Apps
- 53% of ecommerce sales came via mobiles in 2019
- Mobile App experiences ensure you are best placed to take advantage of changing consumer habits
- After using one of our Mobile Apps for a year, the average annual online spend per customer increased by 112%.
3. It is easy for people to buy via Mobile Apps.
- Once they register as a user their profile, delivery, and payment information is saved in the account.
- There is little barrier to repeat purchases.
It is also easy to offer extra features such as loyalty schemes and push notifications that encourage your customers to buy from your business.
4. Compete with Larger Businesses
Running a small business is never easy, and you need every advantage you can get to help compete with larger brands, ensure customer satisfaction and boost brand awareness.
Having a Mobile App helps you to offer the same experiences as larger competitors which are already benefiting from Mobile App development.
|Mobile Order Ahead This is a way of ordering at restaurants or coffee shops in which customers order the food prior to arrival at the store. Nearly three-quarters of customers expressed an interest in using Mobile Order Ahead because of its potential to save money and reduce the frustration of waiting in line. Once larger companies roll this out, it is likely to become something that customers look for when deciding where to buy. With a Mobile App, small food businesses can also offer the same experience as their larger competitors.
5. Communicate Directly With Customers
Mobile Apps enable communication between businesses and consumers in many ways. Here are some of the most effective:
Push communication can be one of the biggest app communication channels. If you have a Mobile App, your business can send notifications to customers when you have news to share, such as alert customers to:
- new products and services,
- or company updates.
With Mobile Apps customers view products from anywhere, as they have the ability to display products where clients are.
Direct Messaging provides a better way to communicate where customers could request help, ask questions, or even make purchases from anywhere using their mobile device. Online shoppers often need real-time support to complete a purchase.
You could also use in-app messaging to offer customer support, enable bookings or reservations, or take orders directly.
Promote Other Mobile Communication Channels
Mobile Apps are a useful way to direct customers to other support channels, eg:
- Linking your phone number, links to social media channels, and email address to the app makes it easier for customers to contact you,
- Providing support documentation that answers common customer questions on your apps.
6. Simplify the Buyer Journey with mobile apps
One of the advantages of Mobile Apps is that it takes this evolution one step further by allowing consumers to buy any location. They no longer have to come to your physical location or log in to a computer.
- Mobile Apps are generally faster to use.
- Customers no longer have to navigate to the website on their phone.
- They open the app on their mobile devices and are already on your platform.
- Additionally, customers who use Mobile Apps can stay logged in and save their details, including payment and delivery information, to their phone. This makes buying easy to do.
- Customers do not always have to be connected to use an App and can also work offline
- Safe and secure native apps must first be approved by the App Store and/or Google Play.
7. Build Customer Loyalty
Having loyal customers can increase sales. Research has shown that members of loyalty schemes spend more than non-members. It is much cheaper to sell to existing companies than new ones.
Businesses can improve customer loyalty with a Mobile App through a customer rewards program. These programs encourage customers to make repeat purchases by offering rewards and freebies to those who frequently buy from your business.
Rewards schemes are not the only way to build repeat sales with a Mobile App. You can segment users and then send them personalized offers and discounts that appeal to their needs.
8. Build Your Brand Value
Providing a positive in-app experience can help drive sales at your business as it increases brand loyalty. Having a Mobile App puts your company in the same category as the larger business. It makes you appear to be at the cutting edge of technology.
Mobile Apps are excellent tools to increase customer engagement. They do this in several ways.
- Users can communicate with your business directly through the Mobile App. By making it easier for users to get in touch, they are more likely to do so.
- By releasing Mobile App content frequently, you can encourage users to keep coming back for more.
9. Create a Direct Marketing Channel
A huge benefit of a Mobile App for your business is that it is a direct marketing channel between you and your customer. This means you own the channel and there is no third party controlling your communication or messaging.
10. Mobile Apps are economical
Once a customer has downloaded your Mobile App, you do not have to pay a cent to get in front of them. You can send notifications, offers, or messages promoting your business as often as you want, at no extra cost.
11. You own your data
Mobile Apps are not the only free marketing channel. Social media sites also offer free ways to get your brand in front of customers, but their effectiveness is entirely reliant on an algorithm controlled by a big tech company. This means you are always at risk of losing access to your audience. Building your own direct channels alongside social audiences can reduce your risk exposure to algorithm changes.
12. Keep all your profits
Another benefit of owning your own marketing channel is that you keep all profits from sales. You do not have to pay a third party a percentage of your sale.
There is no need to move away from these platforms entirely, but by building your own Mobile App audience alongside sales from these products, you will be able to reduce your dependence on third-party platforms.
13. Provide a personalized experience
Another benefit of Mobile Apps for business is that apps provide a personalized experience. For example, you can schedule notifications using geolocation technology so that the customer receives a notification when they are close to your business.
Alternatively, you can create customer segments and then tag each customer based on these segments to provide more relevant content. This will allow a restaurant to send one offer to families and an alternative version to young professionals.
The Mobile Apps Market
eCommerce.co.za describes a booming Sub-Saharan Africa market where communities have transitioned into adopting a mobile-first approach to tackle most daily challenges. The growth was most notable in the retail and finance industries, emphasising that increasing web and in-person traffic towards mobile experiences will be a primary focus for traditional businesses.
According to Statista: the total revenue in the South African App market is projected to reach US$571.70m in 2022.
According to the Mobile Economy Report: 615 million people in Sub-Saharan Africa will subscribe to mobile services by 2025.
Having analysed over 6,000 apps and two billion installs, AppsFlyer and Google reported that overall installs increased by 41%, with:
- Nigeria showing the highest growth, with a 43% uplift,
- followed by 37% in South Africa,
- and 29% in Kenya