Today, most businesses realize that to maintain relevance and connect with the modern consumers they need a great mobile app. In fact, 91 percent of the top 100 brands in the world have already released mobile applications, according to the Guardian. And many small companies are also trying to get in on the game.
But although it is widely accepted that mobile is the next step in marketing and expanding a brand, it remains difficult to tell how effectively a new mobile strategy is working. How can companies determine if an app is truly influencing business?
Here are a few tips for attempting to measure your mobile investment.
Why Is It So Hard to Tell?
When it comes to analyzing ROI in mobile strategies, it is tricky to tell how well things are paying off whether it is a mobile advertisement or a brand new native app. Especially in the beginning stages, it can prove difficult to see a clear picture of the value in mobile spending.
Writer Ameet Ranadive points out two basic hurdles that prevent a clear look at how profitable an investment actually is. The first major roadblock to understanding ROI comes from the unpredictable nature of consumer behavior on smartphones. Currently, shoppers spend about 32 percent of their time browsing on mobile phones, but only make around 10 percent of purchases via a mobile device.
At this stage in the mobile market, consumer behavior seems less predictable because:
â€¢ Web connectivity and app use may lead to purchases on a website, but it is hard to make a direct correlation when this occurs.
â€¢ Smartphones are most commonly used for shopping on-the-go and finding deals or comparing prices while out and about. A person might find products on a business app, and then purchase them offline in the store. Once again, it is tricky to track.
Following the Right Metrics
Since it is already difficult to get a good reading on the connection between a mobile investment and company success, following the right metrics is a must. Some important stats to track include:
â€¢ User acquisition cost
â€¢ Percentage of new leads
â€¢ Percent of mobile influenced customers
â€¢ User retention rate
â€¢ Average session length
By finding these crucial metrics, companies will have the numbers they need to answer questions about ROI. This information will also point to new ways to improve a mobile strategy.
Design Equals Dollars
Another area of importance that cannot be overemphasized is application design. Unlike most art, design is less a matter of personal preference and more about what is clear, attractive and easy to navigate. Mobile apps should be carefully laid out for the smaller screen size of most smartphones and other mobile devices.
Because users judge an app by its appearance and the first impression of its usability, design equates directly to mobile success. Flow and intuitive format are a must to help guide people through the application and realize its capabilities. A great design helps consumers form a great opinion of the entire brand.
With the right metrics and quality design, business apps can realize their full potential and bring in a successful ROI.