Do You Have to Develop a Mobile App for Your Business?

How to assess whether a costly investment is worth it

The world has gone mobile. That little electronic device in your pocket can do just about everything via the multitude of mobile apps available to us. You have apps for groceries, books, fitness, note-taking, entertainment, and pretty much anything you can think of. The Google app store now boasts a whopping 2.56 million applications to choose from, making it the largest app store in the world, followed by Apple at 1.85 million. It’s abundantly clear that the app industry is booming, and getting bigger every day. So naturally, a business might start to wonder whether it should spend the time and money required to create a competent mobile app. You might be in a similar position, or you simply might be wondering what it takes to make a mobile app worth it.

Just a quick refresher- mobile apps are a type of software application designed to run specifically on mobile devices, be it a smartphone or a tablet. They aren’t restricted to any one industry or any one platform, and while they might not be the most sophisticated piece of software, they can certainly get the job done. It takes a good chunk of resources to develop an app and keep up its maintenance, so it’s essential that you think it through before jumping on the bandwagon. There are several questions you need to ask yourself, but some of the most important ones can be divided into three primary categories.

I. Business Type

This essentially refers to the nature of the business any company is conducting. They could be dealing with physical goods or services. They might be experts in customizing things or creating solutions that are sustainable. Regardless, they must always have a clear idea of the type of business they own, and what their company has to offer. When it comes to the mobile app dilemma, it’s essential to ask the following two questions:

[i] Does the business need it?

[ii] Does it expand your reach?

For example, if the company is more focused on B2B (Business-to-Business) sales and dealings, the number of customers they deal with is more restricted. Apps generate revenue based on the number of downloads and other monetizing strategies that require large user numbers. It would certainly prove far more economical to create a versatile web app for a better mobile experience. Similarly, mobile apps might make their business more accessible, but this will only matter if their target audience is present in those areas in the first place. Understanding the business’s current reach and the potential revenue they could generate by expanding their reach is a great way to forecast their potential for success.

II. Demographic

The client base is the most important element of any business. The customers dictate the needs that must be fulfilled by the company’s product or service and the most effective ways of marketing that business. Hence, it is equally important that they play a role in assessing whether a mobile app will increase a company’s revenue while making the customer experience better. Identifying the key demographic and staying up-to-date with their needs and requirements is essential to any business. In addition to that, two important questions to ask are as follows:

[i] How do they buy and what are their buying habits?

[ii] What’s the best way to reach them?

A great way to gain information on users’ habits is by asking them to complete simple surveys at the end of a purchase or when they’re using the business website. It allows the company to ask non-personal, generic questions that will provide them with the data they need. Understanding what percentage of the demographic uses mobile apps and how they interact with the business will let the company forecast the rate of success of developing a mobile application. By gaining this knowledge, the company will be equipped to answer the second question regarding the best ways to reach them. Advertising and marketing a product/services is a great way to boost sales, but it won’t be nearly as impactful if the target audience isn’t encountering those ads. If a majority of the clientele use mobile apps and finds that easier, it is worth considering.

III. Finance

Mobile apps can be sleek and highly responsive, but creating a well-designed app is a massive undertaking that will take substantial resources, primarily in the form of money and time. Startups and many small to medium-size businesses might not have the resources necessary to take on such an investment. So in addition to assessing whether a company has the money and time to spare on an app, here are 2 more questions to ponder over:

[i] Does the business have resources to keep the app running?

[ii] Will the business profit from it?

A mobile app is not a one-and-done sort of investment. Once you make the jump, you’re in it for the long haul. The market changes every day, and the customers will expect the business to keep up. It will require constant upkeep, which takes money and time. A lot of young businesses may not have either of those resources in abundance, so it’s worth assessing whether the app will be able to thrive sustainably. Another consideration is whether there is any scope for profit from the app. Businesses tend to jump on the bandwagon because of their competitors, but it’s essential to understand for yourself whether that investment is worth it or not. The competitors should weigh into the company’s decisions and how they want to navigate the future, but that doesn’t mean they blindly follow everything others do.

Mobile apps are not something you should decide to develop on a whim. That being said, they can seriously help boost your sales and increase your user base. It is certainly worth thoroughly investigating the matter because the ultimate goal is to cater to your users' needs. With the whole world in your pocket now, you should consider how to make your business instantly and easily accessible.

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Inheaden is a young IT and software startup based in Darmstadt, Germany. As an “Idea and Tech Factory”, we have set out to be a driving force of innovation, digitization, and automation with a focus on the areas of services, products, and research. Under the Inheaden brand, we work on individual “high performance” software solutions that bring a change. Modern designs, innovative technology approaches, and IT security for our partners and customers are important components of our work profile.