According to Statista, the number of mobile device users was 6.95 billion in 2020. It is expected that by the end of 2021, this number will grow to 7.1 billion, and in 2024 it will even reach 7.41 billion. Impressive? But that is not all! As eMarketer experts have found out, smartphone and tablet owners spend almost 90% of the time in applications. And if you still think that you are not losing anything by abandoning the mobile application, you are mistaken. Why?
MOBILE APPS: TRENDS IN BRIEF
According to a global study by Statista, there has been a steady increase in mobile app downloads over 2016-2020. In 2016, users downloaded and installed about 141 billion applications on mobile devices, almost 193 billion in 2018, and 204-218 billion in 2019-2020. It is about downloads from both the iOS App Store and Google Play, as well as third-party Android stores, excluding reinstallations and updates.
As of June 2020, according to the same Statista, about 3 million applications were posted on Google Play, which made the Android OS the undisputed market leader. Despite this, the level of competition here is much lower than in the Apple App Store. It wins in terms of the number of applications (4+ million) but loses in terms of the release speed: Android publishes applications, on average, 3 times faster: compare 30,000 versus 100,000 new applications per month for iOS and Android!
Regardless of which operating system you prefer, having your own business application is beneficial in any case. While the Google Play Store is cheaper and simpler (according to industry analysts), many companies choose both platforms. It is prudent, as it allows you to reach both a large audience of Android users and a smaller but highly dedicated iOS devotees army.
If you think that the number of downloads does not show popularity that you should base on (which is even logical because not all downloaded applications are necessarily used), there are other statistics. Analysts of The Manifest focused not on downloads but user activity. They found that over 50% of people enter installed programs from 1 to 10 times, 25% up to 20 times, and 2% even more than 100 times. And this is one day! Just imagine how profitable it is to own an app with this engagement level.
Have you realized? Now let's talk about what happens when you abandon a mobile application preferring a website.
MOBILE APPLICATION VS MOBILE VERSION OF THE WEBSITE
It is difficult to imagine a company that does not have a website or an application. Typically, 90% of startups start with website development, but not everyone thinks about building an application. You can get by with a mobile version of a web resource, but only if you do not plan to scale your business and attract a new audience. Otherwise, you lose a large army of fans in the face of tech-savvy youth. For example, millennials open applications on smartphones 50+ times a day, i.e. 2 times more often than generation X and boomers.
Besides, according to statistics, millennials and zoomers have high purchasing power. Considering the fact that they enjoy using media applications more than browsers, the conclusion is obvious. If you target the younger generation, creating an app turns from a mere whim into a necessity. Especially if you provide services "on-demand": trade, passenger transportation, and delivery of goods.
Why do young people prefer apps? It's all about the comfort level. According to Mindsea, 48% of millennials say that functionality is important, and 37% pay attention to design, which often is not perfect in mobile versions of websites. Unsuccessful design adaptation for smartphones can negatively affect the convenience and speed of the website. More than 50% of people are not ready to wait longer than 3 seconds for a mobile page to load. If there is no alternative, for example, an application, they go to competitors.
In addition to the unique functionality and design, there are other advantages of mobile application in comparison with a website:
- Geolocation: to obtain data on the user's location in real-time.
- Push notifications: to inform customers about news, updates, or promotions, which is essential for online retail.
- VR and AR technologies: for creating effective advertising campaigns and non-standard product presentation.
- Fingerprint identification: for instant access to the application without entering a username and password.
- QR Scanner: to quickly read matrix barcodes and obtain product information.
- Offline mode: for free access to data without the need for an Internet connection.
The golden mean is the complementarity of mobile and web technologies. An optimized website helps to find customers, and the application helps to retain them by introducing new functions that are not available in the webspace.
BENEFITS OF A MOBILE BUSINESS APPLICATION ARE:
- Providing a high level of value for customers by creating a loyalty program. The points earned can be used to conclude transactions with regard to the goods and services they are interested in. An example is Starbucks, which motivates customers to purchase by encouraging app subscriptions.
- Building a strong brand and maintaining an image. By regularly interacting with your customers by the app, you increase their brand awareness. It is an excellent opportunity to demonstrate that you are trustworthy.
- Improving customer service. The application allows you to be constantly in touch with the audience, provide the necessary information on the first request, and inform about updates by sending push-notifications to target customers.
- Increased income. According to SalesForce, 70% of the shopping experience depends on how satisfied customers are with the company's attitude towards them. The application allows you to maintain customer satisfaction 24/7 by stimulating demand.
One of the main advantages of a business application is the ability to monetize. According to Google Play,98% of the app revenue comes from the free version. However, you can always add value to the program by adding paid features or creating a Premium subscription. Other options: content localization for countries with high growth rates of mobile technologies (India, China, Indonesia, Brazil), advertising placement, integration with social networks to attract additional traffic.
Summing up, we should mention the amount of global revenue from mobile applications: in 2020, it amounted to 582 billion dollars, and by the end of 2021, it promises to soar to 111 billion dollars! Nowadays, owning a business application means staying competitive in the market and quickly adapting to the changing needs of the audience.
