Surviving A Recession: Developing a Custom Mobile App Can Help Businesses Stay Competitive and Increase Revenue

March 8, 2023

In today’s fast-paced world, mobile commerce is becoming increasingly popular, and businesses need to adapt to this trend to stay competitive. With the fear of recession looming, it’s understandable that businesses are becoming cautious with their investments.

Despite the fear of a possible recession, macroeconomic indicators such as Personal Consumption Expenditures (PCE), consumer spending, and the labor market are very strong at the moment. In fact, the PCE index, which is a measure of inflation and consumer spending, increased by 0.7% in December 2022, the largest increase since June 2021. Consumer spending, which accounts for two-thirds of the U.S. economy, also rose by 1.1% in December 2022, indicating a strong demand for goods and services. The labor market is also robust, with the unemployment rate falling to 3.9% in January 2023.

The interest rate increases the US federal has undertaken so far to cool the economy and to keep inflation under check has not found the desired results Hence it is expected that Fed may resort to further rate increases which may have an adverse impact on the economy that may trigger a recession. The kind of strong macroeconomic numbers that the market throws up month on month and quarter on quarter gives a sense that market may be in for a soft landing. Many experts believe that market may be in for a longer high interest rate regime during 2023 and market will only adversely react when the numbers turn negative. However, it’s crucial to recognize that there’s always an opportunity in uncertain time and in every crisis.

In fact, according to a recent study, mobile commerce sales in the US are expected to reach $432 billion by 2022, up from $207 billion in 2018. This presents a significant opportunity for businesses to tap into this growing market and increase their revenue. Market fears should not deter businesses from investing in custom mobile e-commerce app development. In fact, it could be argued that now is the perfect time to invest in custom mobile e-commerce app development, as it can help businesses stay competitive in a market where consumers are increasingly shopping online.

While websites and mobile web are still important, developing a custom mobile app can provide businesses with several advantages. First and foremost, mobile apps provide a more personalized shopping experience. By using data analytics, businesses can offer targeted promotions and recommendations to customers, which can increase customer loyalty and drive sales. Additionally, mobile apps allow businesses to send push notifications, which can remind customers about sales, new products, and other promotions, increasing the likelihood of a purchase.

Furthermore, mobile apps can offer a faster and more streamlined checkout process, which can reduce cart abandonment rates and increase conversion rates. According to a study by Baymard Institute, the average cart abandonment rate for mobile web is 70.91%, compared to 57.43% for desktop and 41.18% for mobile apps. This suggests that businesses can potentially increase their revenue by up to 29% by developing a custom mobile e-commerce app.

Developing a custom mobile e-commerce app may involve some upfront cost, but the potential return on investment can be significant. In fact, businesses that invest in mobile app development can see a significant increase in revenue. According to a report by Clutch, businesses that have a mobile app can expect to see an average revenue increase of 28%. Additionally, a report by Salesforce suggests that businesses that use mobile apps to engage with customers can see an average revenue increase of 33%.

Moreover, the lack of a mobile app can result in lost sales, as customers may prefer to shop on mobile apps rather than websites or mobile web. In fact, a study by Google found that 61% of users are unlikely to return to a mobile site they had trouble accessing and 40% would visit a competitor’s site instead.

In conclusion, while the fear of recession is understandable, developing a custom mobile e-commerce app can help businesses stay competitive and increase their revenue. With strong macroeconomic indicators and the increasing demand for online shopping, developing a custom mobile e-commerce app can help businesses stay competitive and thrive in an uncertain market. By providing a more personalized shopping experience, streamlining the checkout process, and reducing cart abandonment rates, businesses can potentially increase their revenue by up to 29%. Moreover, the lack of a mobile app can result in lost sales, making it even more important for business to invest in custom mobile e-commerce app development.

Unbound Commerce has the expertise and experience to develop a custom mobile e-commerce app that meets your specific business needs and requirements. Unbound Commerce is a certified-level partner of BigCommerce and has delivered over 600 mobile solutions for online retailers.