On financial grounds, businesses have faced a huge loss due to COVID-19 crises and the stigma is expected to prevail throughout 2020. The most affected here is the retail industry. While several business owners are busy finding out ways to cut their costs amid the crises, they tend to overlook the emerging business strategies (basically virtual) that might help them smoothen their business process. Apparently, certain potent technologies are still unexplored that can help the business not only now but in the near future (post-COVID-19 scenario).
In this digital era, every big brand owns a customized mobile app that keeps them connected to their customers and acts as a gateway for the exchange of goods and/or services. These are basically self-service apps that let the customer step out less in the market, order and pay from the comfort of their homes. Well, looking at the current situation where it is highly recommended to avoid human interaction one can easily figure out how far a mobile app is helpful. Mobile strategy is quite crucial for businesses as it not only smoothens the business process but helps earn more revenue and cut the business cost in a single move.
In the write-up, we will come across the benefits of initiating/updating the self-service mobile app in this sensitive period focusing on two arenas namely ‘reducing the cost’ and ‘increasing the revenue’. Well, it is obvious that every retailer has a pre-set budget proportion he would like to invest in the mobile app. There are enormous third party app development agencies in the market that will develop a mobile app balancing the budget you have told them. Know SAG IPL is a well-renowned hire best dedicated mobile app developers in India, Our innovative and future-ready projects, as well as incomparable IT services are appreciated and awarded by many organizations.
For business owners/retailers who wish to know how far a mobile app will help them in earning revenue, here is the data analysis driven from Hootsuite’s Digital 2020 Global Digital Overview report, that will give a clear overview of the growth of mobile usage among consumers:
- There are currently 5.19 billion individual mobile users across the world.
- 91% of the time on mobile is spent on applications.
- 66% of the users are aged in-between 16 to 64 years and are using mobile applications for online shopping.
- The total value of the global consumer (B2C) e-commerce market is $3.43 trillion of which mobile has a 50 percent share
1. Cost Cutting
Payments are done in a Click – Businesses can now reduce their transaction/processing costs as payments are accepted via the mobile app they own (mobile POS system). This will curb the need for the business owner to invest in a separate IOS for the transaction of money and it will be convenient for the customers as well.
Business owners who do not own the online payment mechanism are liable to pay the fee every time a consumer uses the card. The fee is set by the card issuer (the bank), the network (Visa or MasterCard) and the payment processor. The fee charged here is basically a certain percentage of the transaction amount plus the flat fee.
For instance Starbucks, the Starbucks app encourages its regular customers to have funds loaded in the Starbucks card in which they can use anytime they buy anything from the shop. This way the brand pays the processing fee only when the card user is loading funds in the Starbucks card and not every time they purchase a cup of coffee. So this way a lot of money can be saved by a business.
Adding on to that the availability of Starbucks app has allowed the company to carry on with the services amid COVID-19 (as there is minimum human interaction) when other restaurants and coffee shops have completely stopped their operations.
Market Analysis – In order to progress, every business should know the current needs/desires of the customers so that it could strategize its processes accordingly and to know the current needs of the consumers, a business should have data. However, many businesses fail to acquire relevant data that leaves them clueless of their clients’ demands.
Here comes to rescue, an efficient mobile application. A self-service app allows the business to analyze user behavior using the bounce rate, purchase history, retention rate. The consumer data is enough for a business to take up wise decisions regarding their future business initiatives and marketing strategies. Working in par with the data will let businesses earn guaranteed ROI.
For instance, with the help of the user data accumulated by the app you will get to know which product has high demand and which product is not at all moving. Based on the analysis you will clearly come to know which product needs investments and which doesn’t.
Sales Support – A self-service mobile app allows a business to have two benefits at a single time: increase in sales support and reduce the labor cost on sales support. One of the prominent features of a mobile app is it lets the consumer present their needs themselves. This cuts down the need to have an extra workforce in sales support.
Customers can easily find out the items they need are in the stock or not, ongoing discounts on them and shop them without actually visiting the store. So here the utility has already taken the position of field staff (as the footsteps to the store will be comparatively less), so you don’t need to hire many people for the job.
With the help of the data collected from the app, employers can achieve clear data of how much traffic is coming online to do the shopping and accordingly manage the online and offline service staff. The renowned business owners use the technique which in turn saves their labor cost by 4 to 12 percent without compromising with the quality of their customer service.
2. Revenue Generation
An efficient mobile app not only helps in cost-cutting but simultaneously allows revenue generation. Here is the trick to this:
Geolocation targeting – A mobile application has a permission from the customer to access his mobile’s in-built utilities like camera, contacts and especially the location. Having access to these utilities (and mainly location) will give the business owner an opportunity to serve the app user according to his/her location and show location-based ads, promote profitable deals in nearby store branches and so on.
A customized location-based app is a boon for any business. How? For instance, a clothing brand owning a customized mobile app can earn by local weather forecasts and advertize the clothing that is suitable for the weather and compliments the clothing tastes of the customers. With the help of a mobile application, businesses can communicate with their clients regarding their nearest outlets, timings, deals and other facilities they are offering. As per the data drive from Localytics, the notifications sent via the mobile applications have increased the conversions and location specific ads have three times more conversion rate than regular push notifications weekly.
Loyalty/reward schemes – With the help of the self-service mobile app the business can give loyalty/reward benefits to the clients that in turn will retain the clients and in the future let them purchase from your brand because of reward points and profitable deals.
As per the data driven out by a renowned marketing agency, 73% consumers prefer and recommend brands with good loyalty programs, 79% consumers stay with the brands giving them loyalty/reward schemes, 66% have decided to make purchases only from the brands that offer them loyalty/reward benefits and make them a permanent spot for shopping.
The loyalty program is a sure-shot way of not only retaining the current clients but to attract more traffic resulting in revenue generation.
In the End…
The mobile app will not only benefit a business in the current scenario but it will prove itself as an asset throughout. An efficient and feature-loaded app helps businesses find out the needs of the consumers and accordingly plan their business strategies to earn profits. Apart from revenue generation, it is quite evident that an app will help in cost-cutting in the form of labor cost, additional service fees from banks and a lot more.
If you are also looking to get your own self-service mobile app to better help your customers and boost the growth of your retail business, hire SAG IPL Web and mobile app development company for the best mobile solutions in a budget.