Developing a dedicated mobile app is not necessarily the best way for businesses to reach customers, contrary to popular belief.
So says Lee Hartman, CEO of Connecto, who adds: "The average consumer has around 30 business relationships," says Hartman, "and they are simply not going to download a separate app for each one. We've surveyed over 1 000 smartphone users and the main thing they consider when deciding whether to download an app is how often they think they will use it."
Connecto offers a solution to the problem of underuse by providing a single application that allows users to connect with multiple businesses. "This means users don't have to download multiple apps to connect with the businesses they use and love. For businesses, it means they can make meaningful connections with their customers without having to build their own apps," explains Hartman.
Businesses using Connecto can invite customers to connect with them in the app. All of a customer's connections then appear in a list format within the app, each leading into a dedicated space with the business' information, offers and other content.
"The current economics of developing bespoke apps don't make sense. They are too expensive and difficult to develop and maintain, and businesses still need to address the motivational hurdle in getting customers to download the app," Hartman continues.
A dedicated mobile app is likely to be worthwhile if the target audience frequently consumes content and services from a brand on smartphones, says Lynette Hundermark, head of product strategy at Prezence Digital. "Ideally, an app should complement the business' mobile strategy. Businesses need to ensure the app will be offering value to the customer."
According to Hundermark, apps are likely to go unused if they are poorly designed or marketed, or not updated frequently.
Mobile apps carry considerable added value over mobi sites, according to Hundermark. Some audiences simply demand apps, she says, and dedicated apps provide a rich user experience while making it easy to tap into the native functionality of the device.
Access to the phone's hardware, such as location and camera, and the ability to use push notifications - which are read up to four times more than e-mails - are essential benefits of mobile apps over mobi sites, says Hartman.
"The aim of business-to-customer apps is to connect with customers in a way that enhances loyalty and drives repeat business. Customers want quick and easy engagement, and to stay informed of things that might benefit them, like new products and specials," Hartman continues.
If time and budget permit, creating an app is a good idea, says Hundermark. "There may be only a few customers who will use it, but analytics tell us that this user base is likely to purchase more."
Connecting with customers via an app, whether dedicated or not, may assist with user retention, according to Hartman. "Small changes in revenue per customer, or in customer retention, can lead to big increases in profits. Figures run for a local Internet provider showed that a 1% increase in customer retention can increase profits by R8 million to R10 million."
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