One of the consequences to the App Economy is the fact that, as more and more companies pour dollars into their mobile app presence, the overall quality of apps is vastly improving. While this is no doubt a great thing for app users, for companies publishing apps, the situation could be creating a challenge that can put them at a severe disadvantage.
Companies are not just competing within their market segment for app users, they are competing for app users period. And if the other apps on a user’s device is slicker, more functional and just plain better than what you are offering, users are probably going to abandon the app and look for alternatives that match their expectations.
IBM has highlighted this very problem in a new report, “Why Good Apps Are Not Good Enough.” IBM commissioned the report through Forrester Consulting who conducted a survey of: 1,000 consumers in the US, UK, Canada, and India who use mobile devices; a survey of 200 technology and business professionals in the US, UK, Canada, and India responsible for delivering mobile apps; and six qualitative interviews with mobile app initiative leaders in enterprises of 500+ employees.
Overall, the report finds that companies that produced mobile applications that the company defined as “great” achieved remarkable results, even over those who produced mobile apps they defined as “good.”
The report provides four key findings:
- A great app not only works flawlessly, it also provides immediate and relevant mobile moments.
- Great apps increase revenue, reduce cost, and engage customers exponentially more than good apps.
- Firms must invest to create great apps.
- Firms must measure the things that will lead them to create great mobile apps.
The study also reports:
- Consumers spend 84% of the time spent on smartphones in mobile apps.
- A “great app” makes an average of 5x more revenue than a good app.
- Great apps improve customer loyalty rates by 15% over good apps.