Why are small businesses developing mobile apps? The answer is simple: You’re always on your phone!

Since Apple introduced the first iPhone in 2007, our collective attention has continued to shift towards our devices. Today our phones wake us up, connect us to the world, and they even help some of us go to sleep. It’s safe to say that mobile technology is fully integrated into our lives.

Since October 2016, most internet usage has been via mobile phone.

It’s been almost 4 years since mobile internet use eclipsed desktop use for the first time. In October of 2016, a bit more than 50% of all internet users accessed the web via phone or tablet. Today, roughly 2 out of 3 internet sessions are mobile. (StatCounter)

Interestingly enough, almost all of this mobile internet use is being done via mobile app, rather than through web browsers like Chrome or Safari. For example, you’re probably reading this article on a mobile app right now. On average, Americans spend 4 hours per day on their phones, and 90% of that time is spent using mobile apps. (eMarketer)

Almost all mobile internet access is being done through mobile apps.

In an attempt to capitalize on this shift, companies of all sizes are developing mobile apps of their own. Flexibility is a huge factor in this trend, as apps are being used to tackle a wide range of business problems ranging from increasing sales to reducing operational costs.

Due to the relatively low cost of app development, small businesses have been leading the way. They develop custom mobile apps at a higher rate than any other business segment in North America.

As of 2019, over 42% of small businesses have a mobile app. Not to be left behind, an additional 23% of small businesses are planning on building their own mobile apps within the next year. (Clutch)

It’s important to note, however, that a mobile app is not the right answer for every business. Extensive planning and research are required to outline clear goals and a well-defined audience. Software development isn’t cheap, and a custom mobile app only makes sense if it helps your business run better.

When it comes to developing a mobile app for your business, the most important thing to keep in mind is ROI (return on investment). Calculating your projected ROI can be difficult, however. Each industry has several variables to consider, and your company has unique circumstances of its own.

To help determine your projected ROI, it’s important that you understand and measure the KPIs (key performance indicators) that make sense for your individual situation. Put simply, a KPI is any measurable value that has an effect on your business. This includes things such as sales numbers, inventory levels, employee metrics, etc.

The most important part of the planning process is the process of determining the measurable effect(s) you want the app to have on your business. These may include goals such as increasing average order size, lowering the number of customer complaints, growing total sales revenue, etc.

It’s difficult to reliably account for all of the ways a mobile app might have an impact. That being said, a clear audience and a set of measurable goals will help ensure positive results.

More than mobile app developers. Sometimes, you need a hero!

A well-researched professionally developed mobile app can help your business in many ways. The top 5 most common results of custom app development include:

1. An improved brand experience
2. Increased marketing efficiency
3. Increased high-value lead acquisition
4. Increased operational efficiency
5. Reduced IT costs

Now let’s get into each of these effects in a bit of detail:

• Improved Brand Experience

Branding consists of much more than your logo design and color scheme. Branding is the story that comes to mind when a person thinks about your company.

It’s a vital part of your company that makes a true impression on your customer. Branding is the deciding factor for how people will perceive your business.

Every interaction a person has with your company, from viewing your ads to customer service, all combine to create your branding message. When you develop a mobile app for your business, you’re taking control of your branding message, and placing it directly in front of your customer.

Like all relationships, this involves an exchange: Your customer will only allow you to have space on their phone if you actually provide some kind of utility or value in return, but we’ll talk about that later.

Once a user downloads your app, your logo remains visible on their phone, and your business is always “just a tap away”, allowing for a much more streamlined online user experience versus navigating to your website via mobile browser.

This positive brand experience has tangible effects, as user-experience surveys show a decline in user complaints regarding online transactions, and users report a more positive view of companies after app-based interactions versus web-based interactions.

Mobile apps are streamlined, customized versions of your brand and its message. When done right, an app can completely change the perception of your business.

• Increased Marketing Efficiency

61% of small to mid-sized businesses report that more than half of their revenue comes from repeat customers. This makes perfect sense, as repeat customers are easier to sell to, spend more per purchase, and are 16x cheaper to retain than acquiring new customers. (Smile.io)

If you can’t get people to come back more than once, you’ll soon run out of viable (affordable) customers. Having a custom mobile app allows you to effectively increase repeat/referral customer activity cheaply and instantly, allowing you to target specific customer segments with marketing offers and special messages.

A popular tool for this purpose is called a push notification. A push notification is simply an on-screen message from an app that pops up on a mobile device.

When a user downloads your app, they have the option to allow the app to send these notifications. When a user opts into receiving push notifications, this means they are giving you explicit permission to send them direct messages to their phone, which can appear on the phone’s lock screen as well.

Push notifications are often used for important updates such as medication refill reminders, financial account info, workout reminders, etc. This seems like a marketer’s dream, but it’s actually a very tricky dance!

Sending push notifications requires a bit of tact and care on your part. Send too many and you risk being annoying or worse, losing a customer. Send too few, and you’ll end up missing out on a valuable marketing opportunity with a willing audience.

The balance really depends on you, your specific business environment, and your goals.

Mobile apps allow you to take a more multifaceted approach to customer engagement than before. A push notification is just one of many useful features available to you when designing your new app.

The customized marketing possibilities of an app for your business are only limited by your imagination as a business owner.

• Increased High-Value Customer/Lead Acquisition

In our fast-paced internet culture, there’s a fundamental rule for companies seeking a person’s attention. It’s a variation of the oft-quoted Field of Dreams line, “If you build it, he will come”:

Provide real value, and the people will come.

As mentioned earlier in the “brand experience” section, if you give the user the information or help they need, the user will give you their attention. From there, the relationship is yours to grow.

This fact is central to the SEO (search engine optimization) process. SEO is the practice of growing a site’s visibility among organic search engine results. Your knowledge is valuable, and your target market needs you.

SEO can take time to become effective, but it’s relatively simple. SEO should be a part of your marketing strategy, but it’s not the only way to gain online attention for your business.

An increasingly popular way to acquire high-value customers is to develop a useful app-based tool for your target market.

A few recent examples include:

• A landscaping business that recently developed a tool to help people understand when and how to plant seeds and water their lawns.
• A financial services firm that created a tool to calculate potential loan costs and investment returns.
• A car sales and repair facility recently developed a tool to help users track, schedule, and pay for vehicle maintenance.

Each of these three tools is a mobile app specifically designed by a non-tech-focused business, to solve a problem for consumers within their target markets.

Mobile apps such as these are often designed to be downloaded by users with no prior connection to the company. Companies use these apps to introduce themselves, demonstrate their expertise, and convert new customers.

Each of the above real-world examples demonstrates how businesses in different industries have used mobile apps to acquire new customers, simply by providing value.

You have knowledge that your customers can benefit from. Sharing it can help your business grow!

• Increased Operational Efficiency

In a small business, one inefficient process can drag the entire organization down. As a business owner, it’s your job to ensure that never happens.

Whether we’re talking about internal or external processes, custom mobile software can help streamline your operations. Businesses are using custom apps to gather customer data, track warehouse inventory, manage employees, and much more.

Field service companies (security, home repair, etc.) often realize the most significant operational benefits when it comes to custom app development.

A popular trend among these companies is to develop mobile apps that safely allow their workers or customers to submit/access field reports, repair tickets, technical data, and other (often sensitive) information.

Normally, these procedures involve numerous steps and written documents, making them prone to human error as well as data theft.

In contrast, custom mobile field reporting tools have been shown to speed up response times, reduce data leaks, and improve first-time-fix rates for field service companies across the board. This is in addition to reducing inventory control issues like waste and shortages. (Field Service News)

By developing custom software, small businesses are able to streamline their processes and reduce loss, while still maintaining strict compliance with their data security standards.

Outside of field services, industries from manufacturing to construction are starting to produce custom mobile apps to improve workflow, track efficiency, and lower costs. Some companies even use mobile apps to reduce fuel costs by tracking and rewarding their most efficient drivers!

From simple data entry to more advanced GPS tracking and video surveillance functions, custom mobile apps have been helping Fortune-500 companies manage and improve their operations for years. Now you can do the same for your small business.

• Reduced IT Costs

IT functions are sometimes invisible, but their effects are usually very tangible, often vital within a business. Unfortunately, the costs in both time and money are tangible as well. IT costs can sometimes surprise a small business and the strain can prevent proper growth.

For example, your subscription-based inventory control software may be fine for a warehouse with only one location and a couple of user accounts, but what about when your business expands into more locations with multiple users?

A few hundred dollars per month for each location begins to add up fast!

This doesn’t even take into account the cost of constantly re-configuring and finding new systems to fit your changing business needs. In contrast, a customized digital solution can easily be designed to seamlessly grow and scale within your business.

Depending on the nature and size of your company, developing a custom mobile app can save you hundreds, thousands, and even millions of dollars in IT costs such as recurring subscriptions, leases, maintenance, staff, and other considerations.

A mobile app is often part of a larger custom software solution, streamlining or possibly eliminating the need for multiple IT functions and “middlemen”. By implementing custom mobile solutions, companies have been known to reduce the costs of certain IT functions by double-digit percentages.

A custom mobile app is a powerful tool that can help your small business grow.

People are spending more of their time online and on their phones than ever before. As the numbers continue to increase, marketers and large corporations are starting to shift their efforts accordingly.

The increasing affordability of mobile app development is allowing small businesses to participate as well. With the right development partner, your company can develop anything from a robust customer-facing social platform to a simple, internal tool to help manage payroll.

Choosing whether or not a custom mobile app is right for your business can be a complex decision.

We are an Atlanta-based team of engineers and business professionals, ready to help your business grow!

From brainstorming to launching in the App Store, the award-winning Atlanta-based app development team at Mobile App Hero is here to help you understand your options and help you achieve your goals.  

Do you have an app idea for your business? Do you need help evaluating your current IT situation?

Get in touch with one of our solutions specialists at 1 (877) 55-APPHERO today to discuss your ideas, challenges, and how the team at Mobile App Hero can help you achieve your business goals.

Sources

“BIA/Kelsey and Manta Joint Report: SMBs Shift Priority to Customer Retention BIA Advisory Services – Local Media Watch.” BIA Advisory Services – Local Media Watch, blog.biakelsey.com/index.php/2014/04/03/biakelsey-and-manta-joint-report-smbs-shift-priority-to-customer-retention/.

McEachern, Alex. “Repeat Customers Are Profitable and We Can Prove It!” Smile.io Blog – Rewards, Loyalty, Psychology, Referrals, & VIP Insight, Smile Blog, blog.smile.io/repeat-customers-profitable-stats-to-prove.

“Should Your Small Business Invest in a Mobile App?” Why Employers Should Offer Health Insurance & Other Employee Benefits | Clutch.co, clutch.co/app-developers/resources/small-business-apps-survey-2018.

Ulbert, Sebastian. “How to Increase First-Time-Fix Rates in Field Service.” Field Service Management Software, Field Service Blog, www.coresystems.net/blog/checklist-what-you-need-to-increase-first-time-fix-rates#_ednref1.

Wurmser, Yoram. “Mobile Time Spent 2018 – EMarketer Trends, Forecasts & Statistics.” EMarketer, EMarketer, 18 June 2018, www.emarketer.com/content/mobile-time-spent-2018.