If you’ve done everything you could in marketing and still have not thought about emerging into the app market, it’s time to innovate and begin a new journey. In a time that almost every person has a smartphone, a mobile app can be a tremendous help for companies to increase profit.

Here are the reasons why you need to start considering developing a mobile app to help your revenue:

 

1. Reach more customers everywhere!

 

Smartphone has become the most important communication device in today’s business world because of its powerful functionalities and flexible accessibility.

According to the Pew research, 68% of adults have smartphones and the percentage is still increasing. That means 68% of the population who has purchasing power has access to a smartphone. Now, you may think: Well, what does that have to do with my company’s profit? Looking from the surface, it is difficult to see how you can benefit from this. If you take a step back and try to break down this information, you will learn that you can have a marketing tool to potentially help increasing your revenue at the hand of 68% of the population who has purchasing power. You reach more people on the go, anytime and everywhere. That’s something that marketing could not achieve before smartphone came into existence. Yes, you get all those benefits by just having an app right on your potential customer’s smartphone. 

The increasing number of people who have smartphones indicates that the potential revenue to be made from mobile users are increasing. The large customer base offers companies opportunities to sell products and services to a larger crowd more easily on the go. Miss out on the opportunity and you’re most likely slowly letting your company falls behind in the competition. 

 

2. Make better strategic marketing decisions with your mobile apps data.

 

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The mobile app provides detailed information about your customers. For example, a travel app can tell you which place is most popular, how many days people usually stay at the place, which hotel they like and to which restaurant they gave the highest rating. All this information helps you draw a more detailed customer persona so you know who your customers are and how to attract their attention. Once you have a clear vision of your customer demographics, purchasing behaviors and lifestyles, you can save so much of the costs of market research and lower the risk of negative investment. Of course, you can increase your profits.

3. Mobile apps help you target your customers more accurately

 

Do you know why you always get the notifications that you are really interested in? That is because that companies only sent certain notifications to segmented customers by analyzing the data generated by the mobile apps. For example, if the Amazon detected you searched headphone, it will only push notifications of headphone to you because it assumes you may need to buy a new headphone. Additionally, the mobile apps can push notifications to people in a certain location. If you opened the Expedia app, you will recognize that the app will refresh to your current location and you will get different recommendations near this location. All these functions of app help you target your customers more accurately, so you can reach the highest marketing efficiency and increase your profit.

 

4. Is it worth to develop an app? Thinking about your profits and costs.

app

If a mobile app had been widely advertised and customers were likely to purchase products or services through the app, the app would effectively increase the revenue of the company which developed the app. In 2008, Apple’s revenue increased 149.2% because it launched the App Stores. In the same year, Google’s revenue increased 110.8% because of the Google Play Store. Because the revenue is high and the barriers to entry is low, so many companies launched their free apps. In January 2012, 46% of the Apple’s store revenue is from free apps. More importantly, the revenue is still increasing. The graph shows the production of the revenue growth from 2017 to 2022.

 

However, you still need to consider whether the increased revenue covers the costs of app development. The revenue data mentioned above is the data from Apple and Google, two world leading technology companies. The revenue may not increase because companies are different. For example, a small donut shop in a town may not need to develop a new app because it is only targeting the local residents in the town. The development costs depend on different app development agencies. A big app agency may costs $500,000 to $1,000,000 to develop an app and a medium agency may costs $150,000 to $450,000. If you only hire 2-3 people to develop an app, it may only cost $50,000 to $100,000. Therefore, companies should comprehensively consider its own situation, predict the potential increase and balance the weaknesses and strengths before making the decision whether to develop a new mobile app.

 

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