Numerous businesses have recognized the significance of developing customized mobile app development to promote their products and services. In today's modern world, mobile phone apps have become an omnipresent aspect of daily life. Disregarding the potential of apps as a means to connect with customers and cultivate engagement could lead a business down the path to failure.
However, despite the widespread adoption of apps, many companies fail to explore the complete array of methods available to optimize their return on investment (ROI). This oversight begins with the initial creation of the app and the foundational architecture supporting its operation. It extends through user interactions with the app's features and the valuable feedback they provide, which can be instrumental in shaping future development.
This article aims to delve into a diverse range of strategies for enhancing ROI through custom mobile apps. These strategies span from incorporating security measures and analytics tools to instill customer confidence and gain valuable insights, to adopting various techniques employed by industry leaders to foster engagement and build brand loyalty.
Building Return On Investment Strategies Into Your Mobile App
When embarking on developing a new mobile app for a business, the initial decision revolves around choosing between custom software and off-the-shelf solutions. While the latter offers its advantages, opting for custom software enables a more meticulous development approach, ensuring that the application's core architecture contributes significantly to a robust return on investment.
Constructing a custom mobile app from the ground up facilitates the incorporation of essential features that enhance the user experience and instill confidence in the platform. Forbes' article, "Essential Considerations For A Business Building Its First Mobile App," outlines key points that businesses should take into account during the development of their custom mobile app. These considerations form the foundation of the app's architecture and can profoundly influence how effectively it drives return on investment.
Before delving into various methods to directly boost ROI for a custom app, let's examine some of these fundamental features necessary for an optimal user experience.
1. Integrated Analytics
2. Security and Protection
3. User Customization
4. Cross-Platform Performance
5. Integration With Social Media
Effective Ways Custom Mobile Apps Increase ROI
Establishing a uniform and polished user experience relies on elements such as security, customization, analytics, and social media integration, all of which contribute indirectly to boosting the ROI of a custom mobile app.
Now, let's dissect specific tools and strategies that business owners and software developers can directly employ with their custom apps to amplify customer revenue streams. Additionally, these tools can serve to enhance employee productivity by providing them with a mobile tool for on-the-go work. For this discussion, let's concentrate on the former strategy and explore how custom mobile apps effectively increase ROI by more efficiently connecting with a customer base.
Using Personalized Ads the Right Way
Utilizing personalized ads is a proven and effective approach for engaging customers and driving sales. However, it is crucial to handle them with care to ensure they are delivered without compromising the client's confidence in the security of their personal information.
A Harvard Business Review report emphasizes the importance of respecting boundaries of trust and confidence when implementing targeted ads, stating, "Control over personal data is becoming increasingly important in today’s online world, where protracted, multilayered data collection is now common."
a) Avoiding the use of personal information such as sexual orientation and health conditions.
b) Committing to transparency regarding how data is utilized for personalized ads.
c) Justifying data collection through full disclosure to customers.
d) Utilizing data effectively, aligning with insights derived from data analytics and reports.
Implementing Engagement Strategies
A thoughtfully crafted custom mobile app offers numerous avenues to enhance customer engagement. Once users are acquired, employing these strategies becomes crucial to ensure they remember the app and feel motivated to return regularly for ongoing interaction with its content.
This involves comprehending how the custom app can effectively guide customers toward making purchases. Simultaneously, these engagement strategies serve to leverage existing customer bases, enabling businesses to extend their reach and connect with potential new clients.
Engagement strategies you can use to increase the ROI of custom apps include:
Encourage social media sharing. As mentioned earlier, integrating social media platforms into the app is crucial. Actively use these integrations to promote the app to a wider audience. Existing customers are likely to have associates and colleagues who share similar interests and may be interested in the product or service supported by the app.
Incentivize users with rewards and perks. Establishing a loyalty program exclusively accessible through the custom mobile app provides users with a clear motivation to return. This could include perks like early access to products and services available only to app users.
Create a new revenue stream through the app. While mobile devices may still be catching up to other platforms in terms of consumer purchases, the app provides an excellent opportunity to expand purchasing options and offer clients more choices. According to Gallup's report, "if companies can create an engaging mobile storefront, they can generate a new revenue channel that does not compete with their existing revenue channels. This is equivalent to striking business gold."
Deliver consistent value through the custom app. This can involve providing access to high-quality blogs and guides relevant to the product or service. Additionally, incorporate practical tools such as scheduling and reminders to enhance the app's functionality and provide ongoing value to users.
Increasing ROI With App Store Optimization
ASO initiatives begin with understanding what these stores expect from apps to promote them to potential users. Aspects to consider include:
a) The app’s name, title, and URL optimization.
b) Keyword research that reflects the search terms most likely to be used by potential customers.
c) Ratings and reviews the app has received.
d) Thumbnail images and other images used to build a store presence.
e) Deep linking within the mobile app.
f) Optimising the click-through rate.
Ways To Check Your Custom Mobile App’s ROI:
Let’s look at a four-step process business owners can use to determine their app’s ROI so they have a fuller understanding of its value.
1. List the purpose and goals of the application:
A clear understanding of the function and desired outcomes from the app is necessary to work out the ROI. Other metrics that can be used to measure an app’s ability to achieve its stated aims include:
a) Customer satisfaction scores (CSAT).
b) Net Promoter Scores (NPS).
c) Daily and monthly active users.
d) Customer churn rates.
e) The average number of transactions.
f) Session times and visitor frequency.
2. Add up the development cost of the app:
Following that, it's essential to calculate the overall cost of the app, encompassing software development, asset creation, server expenses, and other associated development costs. This calculation should include integration costs, payments for graphic design work, and any fees for freelance services utilized throughout the app's development process.
3. Establish the key performance indicators (KPIs) that reflect anticipated financial benefit:
After determining the total cost, the subsequent step involves comprehending the quantifiable financial advantages derived from the app. This entails revisiting the goals established in the initial step and employing data analytics to precisely quantify engagement, purchases, social media reach, and other crucial performance indicators.
Detail the information regarding lead acquisitions and sales conversions based on these KPIs, utilizing this data to ascertain the total anticipated financial benefits.
4. Calculate the ROI:
Finally, it's time to select the timeframe over which the ROI will be assessed. For instance, in conducting a five-year ROI assessment, the following steps can be taken:
a) Take the anticipated business benefits established in step 3 and multiply this figure by five.
b) Subtract the capital costs from that figure to obtain the net present value benefits (NPV Benefits).
c) Add the annual maintenance costs associated with the app to the overall development costs, multiplying the maintenance costs by five and subtracting the opportunity cost of capital to determine the Net Present Value Costs (NPV Costs).
d) Divide the NPV Benefits by the NPV Costs to arrive at the ROI of the application.
With this calculation in place, ongoing app development can be leveraged to adjust and enhance various maintenance costs, with KPIs serving as a guide to increase the ROI further. Collaborating with an experienced full-stack developer to build a custom mobile app tailored to the business's needs ensures that all development costs are directed toward the most essential features. This approach also ensures the app evolves with the tools and features best suited to drive reach, engagement, and robust ROI growth for years to come.
In conclusion, custom mobile apps serve as powerful tools to significantly enhance return on investment (ROI) for businesses. By fostering healthy consumer engagement, leveraging social media sharing, and implementing loyalty programs, custom apps create a valuable connection between businesses and their audience. Metrics such as customer satisfaction scores, net promoter scores, and user activity further gauge the app's effectiveness.
Additionally, the careful consideration of development costs and the calculation of measurable financial benefits provide a clear understanding of the app's economic impact. Choosing an appropriate timeframe for ROI assessment, such as a comprehensive five-year plan, allows businesses to evaluate the long-term success of their custom app.
Collaborating with experienced developers ensures the app aligns with business goals and evolves to meet changing needs, maximizing its potential for ongoing success. Ultimately, the strategic integration of custom mobile apps into business operations not only drives immediate benefits but also positions companies for sustained growth and increased ROI in the dynamic digital landscape. For more information, please contact us now!