New opportunities in a challenging market with a mobile application

A declining market reveals the potential shortcomings in a company's digital services and competitiveness rather quickly. However, readiness can and should be improved even in challenging times

For many companies, the digital market simply means operating on the internet. However, when we consider how the web is used today, it’s noticed that a significant portion of the traffic is no longer traditional browser usage. According to statistics, already in 2014, over half of the internet traffic came from applications, and this trend has continued in the same direction since then.

Why is this the case, and why can mobile be a significant opportunity, especially in a declining market?

The author of this blog post points out that the purpose of this blog is not to claim that a mobile app can save a poorly performing business, but to briefly explain how it can help survive in a declining market.

1. Application is a cost-effective solution to access real-time customer and business data

Traditionally a declining market leads to the fact that acquiring new customers becomes more challenging. Internal cost-cutting pressures within companies further complicate this equation, as efficiency dictates allocating euros where they can yield the most return: to existing customers.

Every sales organization knows that acquiring a new customer requires multiple times more resources than retaining an existing one. In this scenario, data derived from customer purchasing behavior becomes invaluable. A mobile application is one of the most cost-effective ways to generate such data to support decision-making. Because this customer already has some level of familiarity with your company’s operations, investing in service quality ensures that the customer continues to use your services.

2. A mobile application provides a personalized user experience and an efficient communication channel

A mobile application always provides a more personalized service experience than a website. However, this doesn’t mean that the app should offer exactly the same content as the website. Instead, content that is personally relevant to the user works best in the app, while more general content is better kept on the website to enhance user experience.

The sense of personalization largely stems from how people generally perceive their phones. For most of us, a phone is a vital tool in life, and navigating daily routines without it feels odd at the very least. The same applies to apps. When an app installed on one’s phone is used exclusively by the phone’s owner, the perception of personalization is entirely different than logging into a service via a browser along with the masses.

It’s also no secret that apps offer the best possible communication channel between a company and its end-users. Push notifications, for instance, can efficiently guide customers back to a familiar service for reminders, promotions, or rewards purposes. Maintaining customer loyalty through a mobile app has become a fairly established practice, especially in service-oriented businesses, if the resources for such implementation are available.

From a communication perspective, the most significant difference between a mobile app and a website is that once an app is installed on a phone, the customer is usually reengaged multiple times through reminders and notifications. Communication through a website requires bringing the user back to the service somehow, whether through social media, paid advertising, or a newsletter.

Moreover, a significant portion of communication through the app can be automated based on customer behavior, reducing manual work and consequently saving costs.

3. The future is even smarter, and the share of mobile devices will increase even further

According to last year’s statistics from Statista, 89% of the world’s population has a smartphone, which is a significant number considering the diverse living conditions people have around the world. In domestic context, the percentages are naturally even higher, making it easy to see why investing in mobile should be part of every company’s strategy, at least in discussion.

4. A declining market can be the best time to launch a new service

When economic prospects begin to weaken and the near future is hard to predict, the number of new service launches also decreases. Of course, there are exceptions from time to time (as the pandemic showed), but on average, the number of new app releases declines during economic downturns. As the number of releases decreases, standing out in the market becomes easier. Those who understand the importance of updating their services in time gain an advantage when the economic climate brightens again.

Companies that have kept their existing customers satisfied can confidently focus on acquiring new customers when their own house is in order, while others are in panic mode.

5. The money spent on applications continues to grow significantly

The amount of money spent on mobile devices is increasing year by year. According to Statista, last year’s growth was still over 8%, even though the economic outlook significantly darkened in the early part of the year.

How do we know if a mobile app is a suitable solution for our company?

This can be determined quickly in a joint meeting, but it’s also easy to assess the need in advance with these considerations:

1. Is your user base generally willing to use services on mobile devices?
2. Do you have a significant number of returning customers, or do you want to reduce customer churn?
3. Are there goals in your strategy that would benefit from mobile features?
   1. Is there a need for enhanced communication?
   2. Is there a need for cost-effective customer data?
   3. Is there a need for cost-effective automation based on customer data?
   4. Are there location-based services?
4. What mobile solutions are your competitors currently implementing?
5. Are there parts of your digital services that customers cannot find or have difficulty using in their current format?
   1. Would such a service benefit from being differentiated as a separate mobile application?

If you’re interested in the possibilities of mobile applications, please contact us, and let’s schedule a meeting!

Also, read more about improving customer loyalty in the next part of the blog series: Enhancing customer loyalty with a mobile application.