For businesses to measure success, they should first be able to successfully measure the efficiency of their investments. This is why Return on Investment (ROI) is a key metric for every type of business there is. ROI is how businesses determine what is working for them and what isn’t.

ROI for App Development

This is evidently the age of m-Commerce. People make purchases through their mobile devices conveniently. Businesses with mobile applications can reach out to potential customers directly on their personal devices, and entice them to make purchases. The trend caught the attention of businesses worldwide paving for the enterprise mobility revolution.

But even with this being the case, many businesses are still reluctant to invest in mobile apps. One main reason for this is the uncertainty surrounding the ROI for mobile apps. Not all mobile apps can succeed in a competitive marketplace. Considering the fact that app development can be quite costly, many businesses are unwilling to risk believing in the success of the app they develop.

But that’s a different story. For now, we will explore how a business can determine the ROI of their mobile apps.

Measuring the ROI of Mobile Apps

Defining objectives

The first step to doing this is to define the objectives of the app i.e. what your business wants to achieve with the app. The app developers should be aware of the app’s business objectives and the key metrics at all stages of development.

Paying attention to the cost

This is how a business can ensure that it’s keeping within the confines of its app development budget, and not using any additional or unnecessary resources in the development process. Development costs generally include implementation costs, hardware costs, support and integration costs. Auditing these costs is important as it should be measured against the key performance indicators (KPIs) later.

Defining and measuring KPIs

A Key Performance Indicator is a metric that businesses use in order to evaluate factors that they believe would directly impact the organization’s success. As such, KPIs differ from one business to another. When it comes to a mobile app, the KPIs chosen would also be closely tied to the app’s objectives.

For instance, if the objective of the business is to interact with customers more via their mobile app, the interaction is considered a KPI. To measure it, all they need to do is to compare the cost of their mobile efforts with their efforts via other channels. This way, KPIs can give businesses a measure of how effective their campaigns are.

Estimating the app’s overall value

With measurable KPIs in place, a business can measure the value of their app. By weighing their KPI measurements against the development cost, they can determine the app’s value. But the business should keep the app’s lifespan in mind i.e. for how long they intend to maintain and use the app.

Additionally, they will also need to calculate CLV (Customer Lifetime Value) – the revenue expected from customer over the course of his/her association with the mobile app. With a projected CLV, measurable KPIs, and overall development cost, the app’s Return on Investment can be estimated.

Conclusion

Calculating the ROI of a mobile app, which is a worthy investment, would help organizations not only to maximize profitable outcomes but also to grow in the direction they want.

If your business requires a mobile app that delivers high ROI, get in touch with AOT’s app developers who’ve been at it for a long while now.

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Not all digital products become successful. Many websites, mobile applications, and other types of digital solutions fail and are forgotten every year due to a number of reasons. It doesn’t matter if the app maker has the right ideas in place. If the app doesn’t reach the target audience the way it’s supposed to, it will run out of steam. This is why it’s important to devise and execute ideal product strategies that increase the likelihood of the app’s success.

Stuffing the application with features

Developers are often instructed to prioritize building creative features into the app. This way the team can ensure high functionality of the application but that’s about as far as they can get. While the development team prioritizes performance, end-users only need to know how an app helps them and what benefits they get from that app. A feature-rich app won’t cut it if it doesn’t provide value to the target market.

At every step of the app’s design, the value of each of its features should be clear. Everything about the app should add more value to it, which ultimately benefits the end users or at least make things more convenient for them.

Not assessing the competition

Many companies invest in developing applications simply because their competition has one. Apart from this, they generally don’t know more about what the competition is doing with their apps. Making an app simply because other similar businesses have one, could end up as a product strategy mistake with horrible consequences.

Before building an app, the company should know its place in its niche which in turn requires them to have a great understanding about their competition. This should help the company figure out how they are different, the kind of problems they can solve, and what they can do that their competition can’t.

Thinking successful launch and successful product are the same

When companies prioritize timely product launch over everything else, it can brew up trouble down the road. Product launch is something that should be done only after ensuring that a product promotion and marketing strategy is in place. There are companies that make the mistake of launching the product early for faster market penetration at the expense of product quality.

A viable product that delivers value to the company’s customers should be the first priority. Not a publicized premium launch of a half-baked product. The influx of negative reviews will eventually kill the product almost as soon as its launch. The company will lose their credibility as well which is difficult to recover from.

Prioritizing client requests

Even with the flexibility of an Agile development ecosystem, it’s not always wise to take action based on frequent requests from the client. This may be the first app development venture for the client. But their genuine desire to build something that’d be of value to users may come down as requests to the development team.

Prioritizing these requests may drive the project off course. Just because the team can complete a certain request doesn’t mean they should always comply. The project outcome is more important.

Endnote

At AOT, we understand the importance of an effective product strategy which is why we have veteran strategists in product market analysis and project management. We ensure that the digital solutions we build are flawless after brainstorming and implementing feasible product strategies.

Interested to learn more? Get in touch with us.

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Mobile apps for a business is a strategic decision to stay ahead of competition in today’s world. There are millions of mobile apps in the app stores of major mobile platforms at present. Mobile users are given many options to choose from when it comes to apps serving a specific purpose, which makes it challenging for app owners to have their apps stand out from the rest.

There is no second chance when it comes to impressing users enough to have them keep using the app. But the first challenge for any business intending to release an app is to get people to download it. Considering the key factors of a mobile app’s success right from the beginning of app development is crucial. Ultimately, the success of the app comes down to the business’ goals and the nature of the app itself.

This blog explores a few important reasons why mobile apps for businesses fail to get downloaded by the target audience.

Insufficient Market Research

The app market is very competitive, which means a well-designed app with an appealing UI alone won’t be enough to succeed. The development of an app should start with extensive research that covers every aspect of the app and its purpose.

This includes identifying and researching the right target market, end-user expectations, current market needs and app development trends, rival apps and the features they offer etc. The research, in the end, would make it easier for the development team to define the prime objective of the app and how it’d meet the business’ goals.

Randomly choosing a mobile OS

While conducting market research, it’s also wise to identify the most influential mobile OS in the target market. Once the concept of the app is made clear, the next step is to choose the app’s mobile platform. The wrong platform means the app simply won’t reach the target audience. A mobile platform based on the target market exponentially increases the likelihood of the app succeeding, provided it serves its purpose well.

Ignoring the hottest tech trends

There’s the idea of getting a lot of hype for the app to give it a great head start. Today’s businesses leverage modern technologies to achieve this. Out of all of the hottest technologies leveraged in app development today, AR and VR are the best. AR and VR in an app grants a whole different, unique experience to app users, which would make them want more. There are other great technologies that can be used in apps too. Conclusively, the technology used is also a key factor in an app’s download ratio.

Incompetent marketing

Regardless of how well the app is designed and the technology it leverages, it would still not succeed without proper marketing. The idea is to create a pre-launch buzz and develop an effective launch strategy. The target market needs to be aware of the app and what it can do for them that other similar apps can’t.

Ineffective app marketing strategies and poor app store optimization leads to failure to raise app awareness that will then lead to lower app rankings.

Conclusion

Apart from the ones above, there are several other factors like adequate UX, great app security, extensive app testing etc. that directly tie into an app’s chance of success. The app developers at AoT are well-versed in every aspect of app development – from design to marketing and promotions. Contact us to take a better look at our success formula for mobile apps.

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It’s generally believed that the first major challenge for businesses when it comes to developing mobile apps is finding the right development company and the right development team. Though this is true, the next challenge determines the fate of the mobile app after its release – communicating the idea with the app developers.

Though there will be documentation involved which the development can team refer to during development, effective communication and collaboration ensures that the product meets the requirements and achieves success faster. If the idea of the app, its actual purpose, and expectations are not spelled out the right way to the developers, it may hinder the app development process and may also increase the estimated cost of development.

That said, let’s explore everything that app developers must get from their clients to deliver a product that meets or exceeds expectations.

Introduce your business briefly

The purpose here is to provide context to the developers. The developers need to know what kind of company requires the app, and what the company expects from the app. This would also help them figure out the target audiences and their demographics.

Compose the team

Once the feasibility check is done, the client can compose a team with qualified professionals for the project. The composition of the team depends on the size of the project, and the technologies that the app will be leveraging. The team comprising of project managers, programmers, back end developers, UI/UX designers, testers etc. should be aware of every detail regarding the app.

It’s best to meet the team in person and explain the matter. Two-way communication here is imperative, as the meeting also presents a great chance to see how the developers can get creative while also building a more personal relationship with them.

Segregate the project

Communicating directly with the development team also helps the client categorize the project into various categories, and segregate the categories into various segments subsequently. Each segment can then be discussed with the team periodically so as to determine effective development approaches. Because app development can get too complicated and long, segregation of the project can actually make a big difference. It’s also better than discussing the entire project in one go.

Beginning with the MVP

For most businesses wanting mobile apps to carry them further as soon as possible, a Minimum Viable Product (MVP) is the way to go. The MVP is a fundamental version of the mobile application with just the most important features and functionalities present. More features can be added later, as the MVP’s main purpose is to access the market quicker and authenticate the app’s idea there.

The added benefit is that the MVP will get user feedback after its release, which can then be referred to improve the app with updates. The development team would be able to come up with the idea for MVP, while the client business can ensure that the MVP can find success in the market. The feedback can be discussed with the team in order to explore the ways to improve the app further.

Using flow charts to describe app functionalities

Using images, diagrams, and flow charts can be quite effective when describing the functionalities of the app to the development team. This would make things clearer to the team, including what the user will experience when he/she taps a function or uses a feature of the app.

It’s important to clarify the functions properly, and images and flowcharts mean the client won’t have to use elaborate descriptions for each functions. With a clear picture, the developers would also be able to come up with suggestions that could enhance an expected functionality.

Clarification on the quotation and project deadline

As budget is a vitally necessary factor when it comes to mobile application development, most companies right away ask the development team how much it would cost to build the app. The developers, on the other hand, would enquire about their client’s budget or how much they are willing to invest in the app so that they can provide a good quote.

The business would have to consider the project deadline, and communicate whether they are flexible with the deadline. If it’s a strict development schedule, it’s best to ask for an overview of their development plan and how the app would look like in the end within the budget.

User success stories

User success stories should also be a part of the client’s discussion with the development team, because these stories help understand the app’s target audience and their expectations from the app better. This would help the team add more features or improve existing ones, and provide a better experience to users. Additionally, the app marketing team can leverage user success stories to highlight app features and increase its value in the market.

Value the team’s work

The app development team needs to be occasionally appreciated for their hard work and effort to motivate them even further. This also helps establish a good, long-term relationship with the development company. Many businesses incentivize development teams throughout the development cycle, leading developers to put their best efforts in delivering an app that serves it purpose in the best way possible.

Conclusion

In most cases, clients can only express their ideas verbally while the developers reason with the idea from a technical standpoint. This is why two-way communication is key – share ideas freely with all the ifs and buts. This way both parties involved can visualize the idea together to craft an app that accelerates the business’ progress.

If the client is new to the field and is not aware of how app development is done, it’d be up to the development company to take responsibility, establish good communication, form a team with all the right talents, and assist the client to craft the product he/she desires.

At AoT, we have served all kinds of clients with transparency. Our team is capable of coming up with creative ideas without compromising what our clients require in their apps. We have built countless successful apps, and can build one such solution for you too. Send us a message to learn how we can build a high-performance mobile app for your business.

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