Why is a custom app better for your business?

Evan Johnson
red_mad_robot mobile
4 min readJul 29, 2016

There is no denying the impact of mobile on every sphere of business, from grocery to healthcare to clothing. In fact, it would seem that those businesses which don’t at least have a mobile strategy in the works are doing a remarkably good job of hiding under their respective rocks. That being said, it is never too late to upgrade to mobile, and once a company has made the decision to go forward, they are faced with a choice: Is it better to have a custom-developed mobile app or use a white-label platform? While each have their advantages, custom development proves to be the better choice.

First, some definitions are in order. A custom-developed mobile app is made specifically for one company by a software developer specializing in mobile apps. While developers use their previous experience with other apps in the same industry as guidelines, they create apps from scratch. Two apps for two different grocery stores, for example, may have completely different design and functionality depending on the goals of each store. Each client signs a contract with a developer to create and support a unique app specifically for them.

White-label platforms, by contrast, are developed by a software company with an industry in mind as opposed to a particular company. Such platforms are designed to encompass as many companies as possible, and each company’s app ends up being identical in design and function. For example, two grocery stores using the same white label platform would have apps that looked and behaved the same, save for differences in logo and color. This software is typically sold as Software as a Service (SaaS), which means that companies essentially rent the use of the application. This often results in a lower upfront price for the client.

“You get what you pay for” is a maxim which is true for just about everything, and mobile solutions are no exception. While the lower upfront cost of renting a white-label platform may be attractive for some companies, especially those just starting out, having custom development pays far greater dividends in the long run.

Let’s start with the obvious- every business has its own unique needs and goals which are deserving of a customized solution. In every industry, competitors try to increase their market share by offering something different than the competition, and their mobile apps should emphasize the factors which differentiate their offerings. One grocery store, for example, may focus on attracting customers via home delivery, while another may place a greater importance on its loyalty program. Customized apps allow each business to highlight its particular competitive advantage.

A mobile app should be an all-encompassing portal for a customer to interact with a business, and here customized apps stand head and shoulders above white label platforms. White label platforms are designed with a specific function in mind, such as delivery, e-commerce, or loyalty programs. These kind of platforms cannot add functions, so a company’s mobile offerings are limited to what the platform provides. Sometimes, this means that a company has to have multiple apps- it is not unheard of in retail and restaurants, for example, for a business to have one app for ordering and a separate one for its loyalty program. This is inconvenient and confusing for customers and contributes to the fact that only 25% of users keep using an app after 90 days. Businesses want to ensure that their app is as convenient and relevant as possible, and a customized app which allows for multiple functions is a much better answer.

Anyone who has ever purchased software before knows that there is no such thing as a perfect software product. Rigorous testing is needed during the development phase, both of the mobile app and how it interacts with a business’s software systems. Custom app developers are in a better position to ensure a smooth integration with the business’s systems, as they create mobile apps with this specific integration in mind. White label platforms, on the other hand, are developed and tested without focusing on integrating with the software system of a particular business. If a business has a different system than the one which was tested with the platform, this will lead to greater errors and delays in implementation. Not exactly things which businesses look forward to.

What businesses like are close relationships with their technology partners. Mobile apps are no longer novelties, which means that businesses are becoming increasingly cost-conscious regarding their mobile solutions. Nobody wants to be treated as if they are merely one client out of one hundred, and white label platforms which serve dozens of clients simply don’t have the resources to give each business the individualized attention it deserves. Since custom app developers have a business model of supporting and upgrading an app via a long-term contract, they have a vested interest in paying close attention to each client. Would you rather wear a suit off the rack or have it fitted by your trusted tailor whom you have worked with for several years?

Custom app development beats out using white label platforms for a simple reason- when a business purchases a custom app, they own it. Renting white label platforms doesn’t give a business the same level of control and security. Custom development allows for an app to evolve and grow alongside a business instead of having to switch platforms with a change in priorities. Customers appreciate consistency, and businesses value the knowledge that their mobile solution can scale with them.

Purchasing a custom app means that a business is investing in itself, while renting a white-label platform means that a business is handing over money to a platform it has little control over. Clearly, for a business looking to grow over the long term, custom app development is the superior option.

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