4 Reasons Why Your Business Should Build a Mobile App

Updated 09/07/2022

For businesses seeking new ways to engage their customers, mobile apps are all the rage.

The number of small businesses and startups planning to build a mobile app has only increased over time. In 2022, the mobile app development industry is estimated to be worth $206.73 billion. 

If nothing else, the increase in the amount of businesses embracing mobile apps reflects a larger recognition among the business community of the value mobile apps can provide.

The following article lists four benefits of mobile apps that drive customer engagement and produce value for a business, all of which serve as powerful reasons that all businesses should consider investing in, and building, an app for themselves.

4 Reasons to Invest in Mobile App Development

In a world where smartphones, social media, and mobile devices run the world, it many seem obvious why investing in an app would be critical in meeting business needs. 

Regardless of whether you choose to develop for iOS, Android, or both, here are four areas where mobiles apps can grow a customer base, build brands, and increase brand loyalty:

1. Targeting capabilities
2. Improved customer service
3. Boosted customer loyalty
4. Marketing automation opportunities

The advantages of mobile apps is apparent in the abundant improvements they offer to customer experience, customer support, and customer satisfaction. 

1. Apps Have Powerful Targeting Capabilities

The “mobile” aspect of mobile apps provides the distinct dimension to the marketing utility of apps.

In addition to niche targeting and data-driven advantages of traditional digital marketing channels, mobile apps have mobile-specific technologies that provide unique and effective means for app owners to engage with their customers.

One such form of mobile-specific technology compatible with mobile apps is geo-targeting, a function which allows mobile marketers to segment target audiences on a granular level by tracking user location through an app.

The degree of targeting capable through this technology allows marketers both to deliver personalized messages to their customers and engage them in the most optimal marketing contexts, for instance, when they enter a store.

The success of the marketing campaign, and others like it, is not possible without the specialized technology that’s compatible with mobile products and allows marketers to reach their customers in small but influential ways.

Duolingo Uses Targeted Push Notifications as Part of Their Marketing Strategy

Duolingo is known for leaning into comedy when crafting push notifications for their app. 

To encourage users to pick up their mobile phones and learn a language (which can be a difficult thing to keep up), they send notifications that could only be described as playfully threatening.

​

Source: Duolingo

Here, the notification motivates a user to take their daily Spanish lesson....or else. This marketing strategy has been highly effective for the company, and has made Duolingo’s cute-but-threatening owl beloved on social media. 

Duolingo proves that push notifications don’t need to be boring. Consider how you want to build your brand, get creative, and the engagement will follow.

2. Apps Boost Customer Service

According to the aforementioned survey, small businesses invest in mobile apps to improve customer service.

However, this benefit is not exclusive to small businesses. Mobile apps provide an opportunity for all businesses to improve and expand their customer service capabilities.

There are two primary methods through which mobile apps enhance customer service capabilities

• Convenience
• Customer-facing technology, like interactive chatbots

Below are respective examples of how each of these app-centric methods work to improve customer service for a business. 

CVS & Walgreens Improve Convenience

CVS and Walgreens offer apps that improve customer service through convenience, by allowing customers to refill orders and prescriptions in their apps.

While this functionality is by no means revolutionary, it's very effective. By offering this type of convenience, these brands set themselves apart from the competition. This helps attract customers who don’t have time to visit the store and have their prescription refilled.

Chatbot Technology Gains Customer Trust

Chatbots and other integrated customer-facing technology in mobile apps provide another boon to customer service through garnering consumer trust and goodwill.

Because chatbots respond instantaneously to customers, they allow users to engage with brands in real-time, from any location.

Thus, bots prove particularly useful when applied to functions like answering frequently asked questions or educating customers about how to use a product.

3. Apps Boost Customer Loyalty Customer Loyalty and Brand Awareness

Mobile apps also work to help businesses secure loyalty among users.

Customer loyalty procurement through an app commonly takes the form of loyalty programs and promotions, either exclusive to, or compatible with, a company’s app.

Through an app-based loyalty program or promotion, a business may: 

• Inform users about early-bird special offers
• Carry out strategically timed promotions
• Offer access to exclusive deals as users come within a certain radius

Starbucks Uses Its Mobile App to Attract Loyal Customers

Starbucks Rewards is one example of the impact a loyalty program can have on securing customer loyalty, which in turn, can improve a businesses’ bottom line.

Customer retention strategies should be top-of-mind for all companies, and Starbucks is one of many companies that have mastered turning in-app experiences into offline purchasing decisions. 

Starbucks’ loyalty program rewards consumers for their purchases and makes it easy to place orders before entering the store. (The program actually was so popular that it caused lines to become too long in the stores.)

4. App Data Supports Marketing Automation

Whenever a new user downloads a mobile app, a treasure trove of valuable customer data is unlocked, all of which has revenue-generating potential for your business.

Ultimately, collecting and measuring mobile user analytics allows for businesses to track, measure, and optimize their marketing campaigns for user engagement and returns.

The benefits brought by analyzing app analytics data include:

• Better understanding of customer behaviors
• Ways to segment users based on interests and online behavior
• Ability to develop personalized campaigns and messages
• Ability to identify the best channels for delivering these messages
• Ability to determine optimal time to reach customers

These tactics are particularly popular with e-commerce and retail companies with a need and infrastructure for automating online campaigns. However, in-app findings can steer companies of all kinds in helpful directions. 

How Companies Use Mobile App Data

After smartphone users access apps and mobile websites, it’s time for the marketing team to put the information to work. 

Ideally, brands use data collected from mobile app analytics to automate their marketing efforts and deliver messages in the most relevant context for customers.

Customer data can help marketing teams develop automated email marketing messaging, ads encouraging in-app purchases, or the promotion of new products. Having this data makes segmenting users based on demographics and behaviors much easier.  

Secondly, knowing more about customers’ in-app behavior allows entrepreneurs and business owners to get a glimpse into how to improve the app for potential customers.

For instance, if few users are successfully completing a specific user flow, the UX team may be able to identify an issue with the user experience. 

By fixing these UX issues, companies are able to use data for good by making their product usable and accessible. 

In this context, the process of converting users to paying customers becomes much easier.

Mobile Apps Provide Unique, Multi-Dimensional Value

The benefits of providing an amazing mobile experience for your customers through an app are undeniable.

Specifically, a mobile app helps you connect with your target audience in a timely, location-based, and context-specific manner that is unique to any other vehicle for customer interaction.

There are four elements inherent to mobile apps that help businesses improve customer interactions:

1. High-performance marketing channels
2. Excellent customer service tools
3. Engaging consumer loyalty platforms
4. Productive marketing automation support

These capabilities show that mobile apps can make a critical impact for businesses that want to engage their target audience and drive value for their business.