It hasn’t been many years when the marketing strategies in businesses sufficed to a specific pool of physically available resources only. With growing mobile internet users around the globe, operating businesses at a local scale is like limiting yourself to serve a certain group of customers.
To facilitate expansion, there was a dire need to exploit the benefits of mobile applications that now have changed the way we do business.
With over 5 million mobile apps competing on about 3.5 billion smartphones, it is quite evident why even the biggest brands in the market are turning to mobile apps for business growth.
These platforms give you an omni-channel approach to foster a value-added business relationship, earning market visibility, brand recognition and loyal customers: 3 most important pillars of business growth
For an easy read, we have divided this blog into 2 broad categories:
- Making you familiar with the business benefits of mobile apps;
- How some of the market giants have profited from mobile apps.
Business Benefits of Mobile Apps:
1.1 Access your Customer
For your business to grow, you need to take your products at the door-step of your customers.
Specifically, that’s exactly what a salesman does and now can be handled virtually by an app. Mobile platforms help you tailor the way you choose to market or promote each product or strategize which audience you want to target.
With a mobile app, you can make your presence in the market space by attractive eyeballs of your target audience. Obviously, materializing the awareness into revenue shall need deeper analysis and exploration of the digital business landscape, but it’s worth an investment.
1.2 Awareness in Market
While announcing new product launches, you may always want a greater outlook to boost its sales. While a website fails to make the consumers aware of this, a mobile app can easily notify the app users in real-time through attractive push notifications.
Apart from just transactions relating to your business, mobile platforms give you more ways to interact with your customers: online contests, flash sales, seasonal promotions, conducting surveys and many more.
Great insights can be generated through these exercises which help in designing better business models. Overall mobile apps enhance your brand visibility as well as recognition among users.
1.3 Digital stats help understanding the customers better
Understanding customer metrics is very important to devise marketing methods; with real-time data analytics, you are actually able to map the entire customer-business connection.
This facilitates you to decide which customers to engage in, which products to be sold more often and even how to drive customers towards a specific commodity.
Needless to say, with digitization, you systematically adapt your business to the needs and demands in the market.
Data obtained from these interactions can be augmented to discover more edges in your business or can be segmented too to help classify your audience and product groups into better categories.
1.4 One App=Multiple Services
Ever thought of recharging your phone, making transactions, listening to music, watching live TV and even playing video games on a single platform?
Yes, that’s what makes business on apps so great.
Rather than investing in different departments to manage each sector, the app gives you the perfect one-stop tool to manage; extending your service bandwidth.
Usually, low-cost as well as standard phones suffer from storage problems due to rapid media sharing through social media.
So, instead of installing separate apps for songs or recharge, a single app that caters to all operations shall be more often preferred by any consumer.
1.5 Growing User Base
Digital platforms give you the advantage of engaging product-related activities like payments, recharge, e-commerce within your app.
This provides one-on-one interaction with your customers, helping you to squeeze out more user acquisition with minimal operating costs.
Also, the growing mobility population is fueling the businesses through apps, making your products accessible to them in convenient ways.
1.6 Time & Location Constraints
Retail-shop chains usually depend on the location population to gain customers until now.
Highly reputed chains like Big Bazaar, Walmart, Reliance Trends, Pantaloons and many more have moved to app platforms to bring their sales, schemes and products within a tap on the mobile screen.
When your clients access the entire products and services offered by you, it enhances a loyalty bond which more often than not converts into revenue generation.
Thus mobile applications are the best platform for user acquisition as well as retention.
1.7 Retention Plan: Loyalty Programmes
You may be familiar with club membership schemes that you may have subscribed to at any point of time.
Loyalty programmes are just like that: Gifting users with incentives to make the consumers keep on using the service and as a result: repeatedly purchase from your app!
Subscription, renewal and bonanza are some favourite tactics implemented quite frequently to retain invaluable customers.
Companies often design multi-tiered loyalty programmes (like VIP, Platinum and Gold memberships) to target different sections of consumers according to purchase capacity, age groups, etc.
Partnering with another company, you can also give inclusive offers to your customers solely: “a value-added” policy.
1.8 Managing your employees
Apart from customer interactions, workforce management is also an essential ingredient while you are strengthening your business operations.
Connecting the user needs and distributing it among the different sections of expertise requires great effort physically.
An app can smartly generate and manage such tasks with only a single operator to feed the necessary information. It’s more trustworthy because along with management, it can evaluate faults in workflow or inefficiencies in the system.
Such data-driven analysis is necessary if you want to storm the competition!
Here’s How Some of the Market Giants Have Profited from Mobile Apps
Done with the ways apps have been helping the business world! Now let’s see how different companies and enterprises have used this platform to solve their problems and experienced growth.
2.1 The Pizza Competition: Domino’s vs Pizza Hut
Back in 2008, when Domino’s stocks hit huge setbacks, it thought of inspiring ways to get above the ruins. Among other bold steps, Domino’s switched to digital transformation empirically and the result we can see.
Just in a year Domino’s came up with a “Pizza Tracker” tool that tracks your pizza from the instant it’s ordered to when you actually get to eat them.
Pizza selection, toppings and add-ons were entirely mobilised inside the app, hence improved its image into a consumer-friendly interface.
Between 2011 and 2017, Domino’s online orders rose from 25% to 60% of its entire sales. This is exactly where Pizza Hut’s overall share fell from 25% to a meagre 14.5% in 2015.
The company’s dependency on ‘dining-in’ assets has continuously been outweighed by rapid mobility solutions by Domino’s as shown by this graph.
Realising the digital acumen of Domino’s, Pizza Hut’s parent company Yum! announced $130 million turnaround investment in “assets and technology”.
To help build a broad digital service with a robust delivery mechanism, Pizza Hut has got into partnerships with GrubHub, Telepizza and Quikorder globally.
Also, it’s dining-in assets are being partially transformed into “Delco” units that can take order and deliver simultaneously.
2.2 Starbucks Reward Programme
Starbucks, known for its exciting loyalty rewards programs, has the highest number of loyal app users, confirmed by Starbucks CFO Scott Maw himself in a JPMorgan forum.
He further emphasized an increased revenue of $2.65 billion, with their membership growing to more than 25%: 16 million members.
Loyalty programs include certain rewarding features like earning two stars for every dollar they spent, free in-store refills, special member offers/events, and the ability to pay by phone and order ahead.
Through this program, Starbucks actually made the users spend more: making up more than approx. 39% of the sales in the whole chain.
Coupling the rewards feature with ordering and payment from the same app with free WiFi sign-ins at its stores keeps the Starbucks app alive in the user’s phone.
These tactics have generated Starbucks a monstrous 14.2 million active reward users in the US in Q2 of 2018, an 11% rise in a single quarter.
Starbucks now plans to revamp its existing app users by dividing the existing reward users into Green and Gold levels where existing users have to redeem their membership by paying and in return, the stars shall be doubled up which can again be used as incentives.
The rewards program has been customised for different regions and the offers have also been made apt to the demographics there.
Such globalised personalisation is possible only through mobile apps interface.
Hence, digitally keeping its users engaged, Starbucks has drastically improved on its cost to acquire customers giving it more arms to invest in marketing and production efforts.
With cashless payments gaining momentum, especially recently in India – PayTM, an e-commerce and digital wallet company used unique strategies to gain and retain consumers as well as merchants. At present, it has over 15 million registered merchant clients under its umbrella.
Easy on-boarding has broadly benefited PayTM in its quest to acquire merchants who shall accept payments through paytm.
Merchants signing up to this app don’t essentially have to have a bank account registered, as the PayTM e-wallet facilitates the bank purposes digitally: accepting and purchasing through the wallet feature.
Not only this, PayTM has also copied PayPal’s strategy to instigate the current users to send money to contacts who are non-users of PayTM by rewarding both with cashbacks.
The non-users, in turn, have to sign-up to the PayTM app to accept the money and reward too.
Through its applications, Paytm not only supports one-to-one transactions but also live scores, booking trains, flights, buses and even online ordering, mobile recharges, etc.
By increasing its bandwidth of uses, Paytm is essentially developing into a “Power App” i.e. an app through which one can perform every task he/she wishes.
One special strategy in Paytm’s app design is that the sign-out option is deeply embedded within the app where the user doesn’t usually reach. Thus, he/she remains logged in most of the time.
Amazon, often termed as ‘Godfather’ in the e-retail market has helped in revolutionising m-commerce almost globally.
Relying less on brick-mortar assets, Amazon’s continual investments in its mobile app research has put it at the helm of the retail market for a long time now.
Back in 2015, Amazon initiated a bold user acquisition campaign by rewarding a user $5 for referring a contact (reportedly on an average 85% of internet users believe in recommendations from their contacts).
This resulted in a crazy jump from 43 million in 2015 to 67 million users by June 2016: the “rewarding” investment paid off well!
Rapid growth in users encouraged Amazon to relentlessly innovate its social platforms, loyalty programs (like Amazon Prime incentives) and users engaging seasoned sales, contests, gaming to have the user play with its app now and then.
These smart mobility solutions have helped Amazon fuel its agenda constantly.
With so many small and large enterprises extensively utilizing the mobile application platform, it’s of utmost necessity to invest in building a solid app that can be your face to your consumers.
At Quokka Labs, we believe in developing quality & stable mobile applications with smooth & pixel perfect UI/UX designs. Let us help you reach millions of users with a secure mobile app – You can always reach out to us for any queries or assistance at +91-9501620330 or send an email to email@example.com