App Return on Investmentadmin
Let’s focus on the top 3 results.
- Increase sales
- Improve the customer experience
- Stay competitive
These are all great reasons.
Mobile apps can help you make things more efficient, which will ultimately save you time and money in the long run.
Building an app can enhance the communication between customers and employees as well if you include the necessary customer service features.
These apps can also directly generate profits.
Let’s say you have an ecommerce site.
If your customers are browsing products on their mobile devices (which they are) you could have much more success generating revenue by launching a mobile app.
Look at the impact an app has on user buying habits.
Making improvements to your company based on the habits of your customer is typically a recipe for success.
Examples of companies who successfully used mobile apps
I’ll show you some data from different businesses that had a successful mobile app launch.
These companies built an app for one or more of the reasons that we previously discussed.
If your business has a similar reason, these examples can help you determine if you think that your app would be successful as well.
The Freeman Company
The Freeman Company provides services for events and trade shows to various businesses.
They determined that the current system for navigating one of these events was difficult for both the exhibitors and attendees.
So they built an app called Concierge Elite in an attempt to improve customer service.
The app provides general information about each trade show.
Customers can also avoid lines, order equipment for their booth, and get shipping notifications for their freight.
The app also streamlined the checkout process.
In terms of customer service, the results were undeniable.
Concierge Elite boosted The Freeman Company’s positive customer service feedback by 300%.
Toyota Financial Services
Toyota Financial Services wanted to build an app that improved customer experience and dealer experience as well.
The brand launched different versions of the same app, based on the different subdivisions in their lineup of cars.
- Toyota – myTFS
- Lexus – myLFS
- Scion – Scion Solutions
These apps were basically an extension of the services offered on each respective website.
Customers now have the ability to set up mobile payments for their vehicles.
When a billing statement came in the mail, they could scan a barcode using their smartphone to make a digital payment instead of writing a check.
The positive response from their customers was massive.
In the first five months, the app had nearly 350,000 downloads between iPhone and Android devices.
As a game developer, Ustwo Games launched the Monument Valley app in April of 2014.
They aimed to create something that was free for users but also profitable for their business.
90% of users don’t spend any money while playing.
However, of the 10% that buy upgrades turned out to be extremely profitable.
Here’s a look at Monument Valley’s revenue during the first year.
It cost them about $1.4 million to develop the first two versions of the app.
But after the first year, it brought in just under $6 million in revenue.
Fast forward to today.
This app has over 30 million downloads.
I included this example for a very specific reason.
When you’re looking at averages and numbers for the mobile app industry as a whole, the numbers can be skewed.
Just because certain apps have success, it doesn’t mean that those numbers will translate to your industry or your company.
Games dominate the mobile app space in terms of daily revenue.
Let’s look at some numbers.