Mobile Apps: Why Delaying Can Be So Costly

June 20, 2023 , , , , , , , , , ,

Mobile Apps: Why Delaying Can Be So Costly

Launching a commerce-enabled mobile app is a strategic business move that can significantly impact your bottom line. And yet many companies put off building an app. In this post, we will examine the two main reasons apps are delayed. We will point out the potential opportunity losses related to this delay. And we will highlight some of the reasons a mobile app should be viewed as an essential new sales channel, rather than a discretionary nice-to-have.

Several months ago, there were concerns about an impending recession. This led many companies to cut discretionary spending and postpone planned technical projects, including the launching of apps. Many retailers and wholesalers want an app but have been hesitant, waiting for improved market conditions.  Others have delayed offering an app because they are considering re-platforming to another eCommerce vendor. They don’t want to start an app project and then have to reconfigure it.

Why Shouldn’t I be Hesitant?

The recent market performance suggests a shift is underway. In May 2023, the Nasdaq 100, considered the global tech benchmark, recorded an impressive 8.4 percent increase. This marks its most robust May performance since 2005. Year-to-date, the Nasdaq 100 has outperformed the broader US benchmark, the S&P 500, delivering a return of 31 percent compared to a 9.5 percent increase in the S&P 500. The positive jobs report from May signaled to investors that the long-anticipated recession may no longer be imminent for the economy or, at the very least, pushed off until 2024. Companies delaying technical projects might want to seize this moment of relief.

While it may be tempting to put off an app when considering a re-platform to a new eCommerce vendor, the reality is that a typical eCommerce re-platform is a heavy lift and takes 9-12 months, at a minimum. The lost opportunity costs of not offering an app during this delay can be significant. Most custom app development companies, including Unbound, can reconfigure a launched app to integrate with a new eCommerce platform fairly easily. Often, the re-platform takes far longer than expected and this only adds to the lost opportunity impact of not having an app during the interim.

Here are some factors to consider regarding the changing consumer environment, the advantages of offering an app, and the negative impacts of not having one.

A Shift in Consumer Behavior.

Consumer behavior has undergone a significant shift towards mobile-centric experiences and the demand for mobile apps continues to grow rapidly. According to Statista, global mobile app revenues are projected to reach $935.2 billion in 2023. With a growing number of consumers preferring to shop via mobile apps, delaying your app launch means continuing to miss out on taking full advantage of this trend. Mobile app development should be seen as an essential channel for sales rather than discretionary spending, as it aligns with the changing behaviors and preferences of most target audiences.

Early Market Entry.

Being an early entrant in the market provides significant advantages. Research from CB Insights reveals that approximately 70% of startups fail due to premature scaling or late market entry. By launching your app, you can establish your brand presence, capture market share, and build a loyal user base before competitors enter the space. A first-mover advantage can be instrumental in securing a strong market position.

Iterative Development and User Feedback.

Launching an app allows you to gather valuable user feedback and insights. The iterative development process enables you to refine and enhance your app based on real user experiences. By listening to early adopters, you can identify areas for improvement, address pain points, and deliver a more polished and user-centric app.  Delaying the launch means delaying this crucial feedback loop, hindering your app’s potential for long-term growth and success.

Capitalizing on Trends.

The mobile app landscape is dynamic, with trends evolving rapidly. By launching your app promptly, you have the opportunity to capitalize on emerging trends and market shifts. Scanning and Augmented Reality are good examples. Staying ahead of the curve allows you to align your app with changing user preferences, technologies, and market demands. Waiting might result in missed opportunities as trends shift or competitors gain traction.

Sales Potential and Customer Reach.

A commerce-enabled mobile app opens up new avenues for sales and expands your customer reach. According to eMarketer, US mobile e-commerce sales are projected to reach $510 billion in 2023 and jump to $710 billion by 2025. According to JP Morgan, apps make up 54% of all completed mobile commerce transactions. By delaying your app launch, you risk missing out on capturing a significant share of the mobile commerce market and the associated sales opportunities.

Competitive Advantage.

In today’s fast-paced digital world, competition is fierce. Launching a mobile app expeditiously can give you a competitive advantage by differentiating your brand and providing unique value to the most-valuable slice of your target audience, not to mention your sales reps. Delaying your app’s launch could allow competitors to establish themselves, making it more challenging to stand out and capture user attention.

Customer Engagement and Higher Conversions.

Mobile apps offer convenience and personalized experiences that can significantly enhance customer engagement and drive sales. Studies have shown that customers spend more time on mobile apps compared to mobile websites, resulting in increased opportunities for product discovery, repeat purchases, and 2-6X higher conversion rates.

Mobile apps have become indispensable for both retail and wholesale online businesses, offering increased sales opportunities, more personalization, deeper customer engagement, loyalty program integration, and valuable data-driven insights that allow you to evolve the app as you go. By launching a custom mobile app, you can fully leverage the immense potential of mobile eCommerce, gain a competitive edge, foster customer loyalty, and drive incremental revenue growth.

Remember, every day you delay your app launch is a missed opportunity. You’ll need to wait to connect with customers, generate sales, and establish your presence in the mobile-driven marketplace. Adding a B2C or B2B mobile app is an essential new sales channel. Doing so positions your business for success in the (increasingly mobile) digital age. And remember, we can reconfigure your app to your new eCommerce platform. You can avoid the need to wait until after you re-platform.

Unbound Commerce makes the process easy and the first step is a free Needs Assessment call, at no obligation. We promise, no sales pitch! We specialize in customer service and have built and launched over 600 mobile solutions for our customers. Contact us today!

Custom Mobile Apps

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

March 29, 2023 , , , , , , , , , , , , , , , ,

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. 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. The PCE index, which is a measure of inflation and consumer spending, increased by 0.7% in December 2022. That is the largest increase since June 2021. Consumer spending accounts for two-thirds of the U.S. economy. It 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 Fed has undertaken to keep inflation under check have not found the desired results. It’s expected that Fed may resort to further rate increases, which may harm the economy. That could 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 the market may be in for a soft landing. Many experts believe that the market may be in for a longer high-interest rate regime during 2023 and the market will only adversely react when the numbers turn negative. However, it’s crucial to recognize that there’s always an opportunity in uncertain times and every crisis.

According to a recent study, mobile commerce sales in the US are expected to reach $432 billion by 2022. That’s 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. 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. This is great for increasing customer loyalty and driving sales. Additionally, mobile apps allow businesses to send push notifications. You can use those to remind customers about sales, new products, and other promotions, increasing the likelihood of a purchase.

Mobile apps can offer a faster and more streamlined checkout process. This reduces cart abandonment rates and increases conversion rates. According to a study by the 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 costs, but the potential return on investment can be significant. Businesses that invest in mobile app development can see a significant increase in revenue. According to a Clutch report, businesses that have mobile apps 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. Customers may prefer to shop on mobile apps rather than websites or mobile web. 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, 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. Businesses can potentially increase their revenue by up to 29%. They can do this by providing a more personalized shopping experience, streamlining the checkout process, and reducing cart abandonment rates. Moreover, the lack of a mobile app can result in lost sales. This makes it even more important for businesses 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.