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98% of Small Businesses Claim to Protect App Users’ Data, But Most Lack Significant Security Measures

April 17, 2019

Nearly all small businesses claim to protect their app users’ data, but most fail to meet adequate security standards such as requiring strong passwords or encrypting data. The majority of small businesses (84%) invest in social media or messaging features for their mobile apps, while one-third (33%) invest in AI features. 

WASHINGTON, DC, April 17, 2019 – The majority of small businesses (98%) claim to protect their app users’ data, but most companies do not implement the basic measures required for online security.
 
Less than half of small businesses (41%) require a strong user password for their mobile app, while only 40% of small businesses encrypt their user data or implement two-factor authentication. These actions leave users’ data vulnerable. 

This data comes from a survey published by Clutch, the leading B2B ratings and reviews company. The report analyzes the app features and security measures developers prioritize in 2019.

Features such as encryption are vital to mobile app security.

“It’s very important to protect your app code with encryption; you want the code to be hard to read and secret,” said Clare Bittourna, a marketing designer at Codal, a mobile app development company based in Chicago. 

How Small Businesses Protect User Data

Small Businesses Prioritize Social Media and Messaging Integration in Mobile Apps

Small businesses prioritize mobile app features that encourage community engagement. Nearly all small businesses (84%) use social media integration or messaging features. 

Broken down, almost half of small businesses (44%) incorporate social media into their mobile apps while 40% use messaging features. 

“Businesses prefer to integrate…social sharing because it motivates new users to download the app and use it,” said Joana Kelly, chief operating officer of Small Planet, a mobile app design and development company.

Small businesses can easily integrate social media into their app using a software development kit (SDK), which streamlines users’ login process. By incorporating an SDK, small businesses allow people to use their mobile app by simply connecting to their social media account.  

Small Businesses Recognize Value of Artificial Intelligence (AI) for Mobile Apps 

Small businesses invest in AI and augmented reality (AR) to create more personalized and automated services for their mobile apps. 

One-third of small businesses (33%) integrate AI into their mobile apps. Small businesses can use AI to analyze data and personalize users’ experiences.

AI powers machine learning, which allows applications to learn and grow as users interact with them. “[Machine learning] always leads to better and stickier experiences for our customers, which is the name of the game at the end of the day,” said Dary Merckens, chief operating officer of Gunner Tech.

Approximately the same number of small businesses (30%) incorporate AR in their mobile apps. 

AR features can increase an app’s marketing capabilities. For example, the IKEA Place app allows user to see how a product would look in their own home before purchasing it.

Clutch’s 2019 Small Business Mobile App Survey included 529 small businesses across the U.S.

Read the full report here: https://clutch.co/app-developers/resources/small-business-app-features-security-2019

For questions about the survey, a comment on the findings, or an introduction to the industry experts included in the report, contact Emily Clark at [email protected]

About Clutch

A B2B research, ratings, and reviews firm in the heart of Washington, DC, Clutch connects small and medium businesses with the best-fit agencies, software, or consultants they need to tackle business challenges with confidence. Clutch’s methodology compares business service providers and software in a specific market based on verified client reviews, services offered, work quality, and market presence. 

Contact

Emily Clark

[email protected] 

(202) 840-6682