App Install Addiction Shows No Signs of Stopping

By: Simon Khalaf

It has been just over four years since Apple was awarded a trademark for “There’s an App for That.” Since then, mobile apps have multiplied at an accelerated pace and have even surpassed the weband TV in total time spent. Lately, however, many industry analysts cautioned that in mature markets such as the US and South Korea the rate of app downloads is decelerating and the app market is reaching a saturation point. For example, in August of this year, CNN Money ran a segment on app overload and the slowdown of app downloads. This fall, Paul Adams of Intercom, wrote a thoughtful and provocative post on the future of apps, predicting that apps will become more of a service layer, replaced by enhanced notifications as the consumer interface. At Flurry, we were curious to see whether our Analytics data validated these theories, so we took a look. We found that consumers are still downloading apps at very nearly the same rate since 2011.

 

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Deceleration? What Deceleration?

For our research, we focused on the US, one of the most mature app markets. We found that in the US, consumers are downloading apps at the same rate over the past four years. The chart below shows the number of apps an average US consumer downloads per month from 2011 till now. On average, US consumers are downloading 8.8 apps per month in 2014, compared to 8.8 apps in 2013, 8.6 apps in 2012 and 8.9 apps in 2011. This is both iOS apps downloaded from the Apple AppStore and Android Apps downloaded from Google Play or any other Android App store operating in the US. That is a lot of apps downloaded by a single consumer.

This means that there is actually very little change in the rate of downloads since 2011. It doesn’t mean that consumers are continuously using all the apps they’ve downloaded over the years. In fact, they are not. You can look at previous research we’ve published where we shared the half life of apps and their rate of decay.

In our research, we also looked at the percentage of apps downloaded as a result of app marketing (or app install ads) by dividing the estimated yearly app install ads market in the US by the average Cost Per Install (CPI) in the same year. Despite the fascinating growth of app install ads, the vast majority of app downloads are still organic. In fact in 2014, 93% of all app downloads in the US were organic, compared to 95% in 2011. The only thing on a slight decline here is organic downloads. This is a very small change and a further validation of the growth opportunities in app marketing in general and app install ads in particular.

“Install Addicts” Are Keeping up the Pace

We dug a little deeper into our data to gain better insight into the US consumers responsible for these steady download numbers. The distribution is shown in the chart below. The majority of consumers (54%) are actually downloading less than eight apps per month. What is keeping the average up is a new segment of mobile consumers that we are calling “Install Addicts.” These are US consumers that download more than 17 apps a month. This includes apps downloaded on all smart devices such consumer owns. This segment represents 20% of the US mobile consumer base or an estimated 32 million people.

 

The Profile of “Install Addicts”

We were intrigued by the large number of Install Addicts, so we dug a little deeper in our data to better understand the audience behind these 32 million US consumers.

First we looked at gender. Install Addicts are 53% female and 47% male, compared to 48% female and 52% male for the average mobile consumer. That means that females over-index by 10% compared to the average mobile consumer.

We then looked at age groups. Install Addicts over-indexed in the 13-17 (Teens), 18-24 (College Students) and 35-54 (Middle Aged) age groups and under indexed in the 25-34 (Adults) and 55+ (Seniors) age groups.

The analysis gets a lot more interesting when we looked at the differences in Flurry Personas. On the female side, the following Personas over-indexed as Install Addicts: Gamers, Mothers and Social Enthusiasts. For males, the following Personas over-indexed as Install Addicts: Gamers, Social Enthusiasts and Parenting and Education.

The “over-index” is shown in the chart below. It refers to the division of the percentage reach of that Persona in the Install Addict segment compared to the percentage reach of that Persona for the average mobile consumer. For example, in the female Install Addicts segment, Mothers are 32% of the total, compared to 4% of the average female mobile consumers. In other words, female Install Addicts are much more likely to be Mothers than non-Addicts.

Looking at the three charts above and comparing this Install Addicts audience to the mobile addict audience we highlighted earlier this year, it is becoming clearer to us that what we call family devices (or shared devices, or hand-me-down devices) make up a good chunk of the Install Addicts audience. Such devices are for the mother or the father, but the children (teens) have access (and most likely passwords) to them and routinely visit the App Stores and download their new favorite app.

It is also hard for us to ignore the over-indexing of the Social Enthusiast persona. This is the Flurry Persona of consumers that heavily use social apps, including messaging apps and photo and video sharing apps. It could be a mere coincidence that Install Addicts are also messaging and social networking addicts, but it could also indicate that consumers are discovering apps through social and messaging applications. In the United States, both Facebook and Twitter have solid app install businesses. In Japan and China, LINE and Tencent, respectively, have bet big on game and app distribution, organic and paid, as lines of business. While it is still hard to measure the true impact of social discovery on app downloads, the chart above seems to indicate a big one.

We are a week away from the height of the holiday season, one that traditionally accelerates app downloads and brings app developers in general and game developers in particular more consumers to their apps. But as the data above suggests and as the past four years have demonstrated, app developers don’t need to wait for Saint Nick. They simply need to keep hoping for app install addiction to keep going strong.

Canadian Small business, improve customer relationships by developing smartphone applications

Great Article in the Toronto Star as to how important Mobile Apps are for Business Owners.

Apps – those things you install on your smartphone or tablet to perform specific tasks – have traditionally been seen as a luxury offering available only to large or tech-savvy organizations.

Apps – those things you install on your smartphone or tablet to perform specific tasks – have traditionally been seen as a luxury offering available only to large or tech-savvy organizations.

A small business can’t easily afford to invest $10K – $40K to develop a customer-friendly app. But new products available now let small businesses purchase their app services on a monthly basis, just like internet and phone. These cover areas such as payments, scheduling, and appointments, messaging and marketing with coupons, deals and social sharing.  This means that, for the first time, apps are now affordable for small businesses — and they may be one of your best secret weapons to staying competitive.  With more than one million applications available across the Google Play and the Apple App store, and users spending nearly half a day each month using the programs, the message is clear: users like apps.  With this in mind, here are five reasons why a small business should consider investing in its own mobile application:

Customer service – providing information at the fingertips of your customers is a significant value add. From the convenience of wherever/whenever they are, they can find information that is essential to their purchasing decision.
Retention through brand recognition – Staying top of mind is easy when an app puts your company’s logo in front of your customers.
News and information updates – Whatever you need to share, an app gives you the ability to ensure a customer’s smartphone has up-to-date information. From holiday closures to extended hours to trending news and reviews or something as simple as construction they might want to avoid while making their way to your business, an app can be a valuable information resource.
Company image – Having your own app projects a professional, tech-savvy image. It shows you’re invested in the latest customer trends and can make your business appear larger or more well established than it may in fact be.
Push out messages for promotions/launches – Apps are a new direct line of communication with customers. You can push out notifications for promotions and new product and service launches, literally putting the news in the palm of your audience’s hands. Plus, these notifications tend to stand out from the stream of emails most people receive about the other guy’s promos.

5 Ways to Maximize your Mobile Strategy

For the first time, mobile devices outnumber people. This benchmark underscores a crucial fact for entrepreneurs: as the number of mobile devices rises, so do their importance.

Apple Will Constantly Remind iPhone Owners to Buy an Apple Watch

Eighty-five percent of consumers believe their mobile devices are essential to daily life. Clearly, the mobile interface is crucial for consumers, and the savvy businesses that hope to connect with them increasingly choose to do so via smartphones and tablets. A mobile strategy can help companies of all sizes reach more customers and help maintain a strong market presence.

But creating a mobile strategy involves more than building an app. A great strategy ensures that your in-person, mobile and traditional online experiences communicate a cohesive message that motivates customers to interact with your business. Here are five ways to maximize your mobile efforts:

  1. Design great experiences.

Make sure you deliver a customer experience that enables users to interact with your brand in new and exciting ways. Most users have experienced the frustrations of trying to navigate a mobile website, with distorted layouts and impossible navigation.  This is why they prefer a native app experience.  So when you are planning your app with your developer, make sure you address ease of use, and functionality.

  1. Make your strategy scalable.

Mobile App downloads are projected to double during the next 3 year period, and the smartphone market is forecasted to grow by more than 10 percent every year for the next four or five years. Your mobile strategy must be flexible, so allow and plan for rapid growth.

  1. Look to Unify User Experience.

When possible look to align user experience across multiple channels, make the visual of your app align with that of your website, online shop, and your bricks and mortar location.  Having the ability to link to your facebook, twitter, website and ecommerce sites is a definite plus.

  1. Find a strong team.

A bare-bones app can cost upwards of $10,000 to develop, and developing a more in depth experience can run in into the hundreds of thousands of dollars. Having a solid team of developers is critical to building successful apps.  Look at the experience of your prospective developers, and if at all possible contact some of their existing clientele for feedback on support, and overall satisfaction.

  1. Extend your OWN Brand.

There are 2 different models that enable business owners today to launch a mobile strategy.  The first is to join a community of merchants inside of the app of the developer. Your company will appear geographically alongside other participating merchants. While you may expose your brand to potential customers that may have never heard about you, the probability is that you will not.  Why because users of these types of Apps, do not look for other merchants when using the loyalty aspect of the app at their businesses of choice.  Additionally you will be required to promote this app to your customers, and if you do gain some from your inclusion you may also lose some for the same reason.  The second and most effective is to develop your OWN custom app, where you do not share your customers with your competition, and you extend your own brand, with your logo and the credibility that comes along with having your own custom app.

Denim Industries is a great example of a merchant that tested several of the multi merchant platform, and eventually ended up going with their own mobile app, developed by Mass Mobile Apps.

A mobile strategy that’s tailored to your goals and connected to your customers’ needs will help you connect with your target audience on a deeper level, additionally a strong mobile strategy will also accelerate your company’s growth in a market place where mobile technology is quickly becoming an expected avenue to maintain and nurture customer relationships.

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Costs of Custom App Development

Figuring the costs of custom mobile business app development

How much are custom mobile business apps going to cost you? Here are some estimates, analyses and offers we’ve found that should help set some reasonable expectations.

General app development costs

This post is primarily about apps for for mobilizing business processes, but if you are interested in the more general topic of app development costs here are some pointers:

Business app development costs

Surveys

Update: A November 2014 Kinvey report based on a survey of CIOs and Mobile Leaders found that mobile application development is “costly, slow and frustrating.” According to this survey:

56 percent of mobile leaders surveyed say it takes from 7 months to more than one year to build one app. 18 percent say they spend from $500,000 to over $1,000,000 per app, with an average of $270,000 per app.

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Source: Kinvey Survey

survey of IT professionals conducted in 2013 by AnyPresence, a backend-as-a-service company, asked about the initial cost of developing a typical mobile application. Over half reported spending more than three months and over $50,000  developing a typical app. Very nearly a quarter reported spending over $100,000.

Analyses

App development company Propelics specializes in iPad apps and posted a very informative blog post in December 2011 with a breakdown of iPad app development costs. This is recommended reading on the difference between consumer and enterprise apps. In a nutshell, Propelics describes three levels of complexity in enterprise apps corresponding to three price ranges:

  • Simple Enterprise iPad App Development Cost: $50,000 (+/- 20%)
  • Medium Enterprise iPad App Development Cost: $100,000 (+/- 20%)
  • Complex Enterprise iPad App Development Cost: $150,000 (and up)

Features that bump an app into the $100,000 range include a branded and highly tuned user experience, and integration that leverages your existing enterprise capabilities. For real-time integration, mobile device management (MDM) and mobile application management (MAM) infrastructure, you enter the $150,000+ category.

In a late 2012 webinar Propelics reiterated these figures in the context of mobile budget planning for 2013.

An October 2012 post provided some very detailed estimates by the CTO of 5App and his conclusion:

It’s safe to assume that using traditional development techniques to create a cross-platform enterprise app won’t come in under £100K.

He lays out a grid splitting out costs for design, development and testing on one, two or three platforms for four app categories.  Here are some example estimates (converted from GBP to USD for comparison to other estimates here):

  • An app that extracts data from a database and displays it in a simple list can be expected to take 4-8 weeks to create at a cost of $26,000 on a single platform.
  • An app with more complex server-side integration and offline data caching will probably take 8-12 weeks and cost $71,000 to develop for two platforms.
  • A full-scale enterprise automation app with integration to business processes will take anything from 3-6 months and may cost over $150,000 to develop on three platforms.
  • Assorted Quotes
  • An October 2012 analysis of why enterprise apps fail begins with this rather revealing anecdote:
  • The head of digital for a major UK interactive agency shut the door and slid the iPad across the table with a pained smile. Her team had developed an app for a major financial services firm. $140,000 and six months later they were about to start again. The client was, unsurprisingly, unhappy.
  • Kevin Benedict:
  • Companies are under tremendous pressure to develop and deploy mobile apps for their business systems, yet the traditional approach to mobile app development typically costs $250K+ and takes 6+ months for a single app.
  • StarMobile:
  • Based upon complexity, the initial costs to develop a native enterprise application for one mobile device platform can range from $50,000 to $250,000. Those costs grow exponentially if you need that app to support multiple mobile device platforms.

A Mobile App – A gift that keeps on Giving!

No longer hold the belief that building loyalty is through discounting, but rather by building a strong bond between brand and customer.  The connections that customers attach to a brand must also be considered as being added value.  Businesses that have already made their brand mobile and sociable have risen to the top by prioritizing loyalty and by developing emotional connections with their customer.

The customer is the heart of a business, and a good way to increase customer satisfaction is to keep the customers needs central to all business operations, from the top down.  Furthermore, by incorporating current technology to ensure a business provides the customer service that consumers expect, business owners can expect to turn that loyalty into increased revenue and a healthier bottom line.

The most anticipated holiday season of the year is only 30 days away businesses must be prepared to leverage this technology to increase customer retention which will translate into a successful Christmas season!

Here are a few steps you can take to ensure that your Holiday Season is the best one yet!

1.  Content Marketing – Keep it fun and reflective of the season, special promos and themes

2.  Discounted Shipping – Offer special rates for delivery

3.  Social Media – Make regular updates, especially during the holidays when usage is at its peak!

4.  Customer Service – OVER DELIVER!

5.  Support a Local Charity – Tis the season for giving…setup a promotion with a local charity

6.  Appify – Get a gift that keeps on giving – to your customers!  Mobile apps can update customers on current events and offers that your business has, and with features like push notifications, you will have access to your customers 24/7!

Referral Marketing

A loyalty program should keep your hard earned loyal customers YOURS while allowing a business to nurture that relationship unlike many generic programs that share your contacts with other businesses some may even be competitors in the hopes of bringing new customers through the door.  Many business owners are disappointed from the results generated from these types of loyalty programs for the simple reason, its only discounts not engagement and that brings the wrong type of customer through the door…a deal seeker who ultimately hurts a businesses bottom line. Businesses need to shift their way of thinking towards their most valuable asset their loyal customer, since it is their brand advocates that will bring new customers and shop more frequently with you and not a competitors.  A Mass Mobile customization app can create a loyalty program that will build brand affinity by including share-able aspects of your business that are key to the apps success for your business.

Mass Mobile gives business’ the ability to encourage customers to “SHARE” on all social media platforms and gives the customer the opportunity to earn dollars/points for behaviors like sharing on social media. A business can increase their persuasive impact and customers intention to purchase through engagement. Customers are more engaged when the customer finds value in the loyalty rewards offered creating brand affinity. Business’s must connect their loyalty programs to their social media profile since the integration of social media to apps & websites needs to be seamless  in order for customers to share. The value of referral marketing is just as significant as S.E.O  since it drives the number of new customer acquisitions by creating trust and loyalty. A business can connect to more potential customers by simply tapping into the customers circle of friends. By intising customers with an offer that is both exciting and rewarding it will enable a business to capture the attention of its customers to share and download. endorsements by a ‘friend’ are regarded positively since 84% of consumers trust recommendations from their friends. A business must have an effective referral strategy to meet their objectives in a loyalty app strategies may include: 1) share and win, 2) share and save (coupons sweepstakes), 3) give and get, 4) share and charitable donations.

The referral feature on mass mobiles loyalty app is extremely user friendly for easy sharing. Businesses need to encourage the help of its loyal customer to become its marketers through spreading the word to their circle of friends and by sharing the apps content. It is estimated that for every ten referrals a business will gain up to eight new customers from simply using a refer friend marketing program. The results are astounding with a 54% conversion rate since customers trust recommendations from their friends. Referral programs are the simplest way to successfully introduce your business to your customers own personal network of friends. This is a cost effective approach to market your brand by bringing the right customers through your door via loyal customers.

 

 

5 Reasons why business owners need a mobile app

Why business owners need a mobile app

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Mobile apps are the fastest growing segment in mobile marketing, and will be a driving force for any business to achieve not only sales success but to establish brand loyalty.  All SME’s need to be up to speed with the technological developments, as well as keep pace in the market and MOST IMPORTANTLY be of use to their customers.  It is no longer a question of whether your business will adopt a mobile strategy, but rather when it will happen.  Here are 5 reasons why you should invest in a mobile app:

  1. The very near future is going to be all about mobile

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Estimates are that by 2015 there will be over 2 billion smart phones in use.  Of these users approximately 39% will not even own a laptop or desktop computer.  The only way they will be able to access the World Wide Web, is via their smartphone of tablet.  Pair that information with the fact that 55% of searches on mobile devices result in some form of action, either a visit to an actual bricks and mortar store front, a telephone call, or a purchase, confirms the relevance of mobile devices.  An astute business owner will realize that early adoption is the key, and be at the fore front of the mobile revolution.

  1. Mobile will encourage local shopping

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Small business owners who lean on their local community will need to start thinking of their mobile strategy if they are to stay competitive, and hope to increase their market share.  A recent study done by Pew Internet & American Life Project, has shown that 74% of smartphone owners use location services to find places they plan to visit, such as retail stores, restaurants, and cafes.  Another study conducted in 2013 indicated that 66% of buyers planned to do their Christmas shopping in local and independent stores, and that 68% of them planned on using their mobile devices to assist them with purchases.

 

  1. Mobile payments

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Some merchants have already begun offering mobile payment methods for consumers, and all major processing companies have invested heavily in updating aging hardware to be able to transition to mobile payment systems. Apple, and Android devices are already capable, and it won’t be long before the option of mobile payment will be as prevalent as the traditional plastic credit card.  It is no longer the American Express card that people don’t leave home without – it is the smartphone!

 

  1. Users

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To keep your customers coming back, its time you not only show them you value their business but you prove it as well.  How can you do this with a mobile app? A built in loyalty program will do the trick!  This will not only give your customers further incentive to shop with you, but will also make sure that your app is not something that is downloaded and then deleted shortly after. Studies have shown that applications with any types of rewards are maintained on mobile devices, even if the user no longer uses the app.  Investing in mobile is a good way for business owners to stay competitive and relevant in their respective fields. The future is now!

  1. Speed and all the other virtues

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Today’s consumer does not only want quick and instant service, they expect it.  If a customer cannot get they want out of your website within a few seconds, they are on to the next one, likely your competition. If your business has developed its own smartphone app, your customers will be able to contact you in seconds, and it will be much easier for them to do it this way.  It is services like this that will separate you from your competition!

Click Here to find out more

Marketing Ideas that build your brand

” The product should be it’s own salesman.  Not the product alone but the product plus a mental impression, atmosphere which you place around it.” therefore a business needs to have a solid understanding of their customer and of how to go about building their brand to achieve sustainable profitability. As a result  the job of marketing your business does not end at figuring out who your target audience is, it is just the beginning. After collecting data from these four categories;

A) Demographic ( male,female,income, age)

B) Location (town,city,province,state,global)

C) Interests (clubs,hobbies, affiliates)

D) Life Events (Single, married expecting,retiring)

A business will not only have a solid insight into who exactly their  customer is, but their IDEAL customer ” a person who not only wants to do business with you, but that you want to do business with.” It is important to utilize this information to your advantage when marketing your business that your objectives (increase customer satisfaction,and or increase profitability) are implemented effectively to achieve desired results.  A business owner must  find extremely innovative ways to engage with it’s customer’s by building social communities via social platforms e.g facebook, twitter, instagram, pinterest etc by sharing ideals, photos and by posting regularly in order to remain visible to your customer.  A consistent, relevant communication on these social networks will encourage customers to interact with your business and develop an affinity to your brand.  But the icing on the cake of marketing your business would be a customizable loyalty app tailored to YOUR customers wants & needs.  An app would allow a business owner direct access to its customer 24/7 giving an immense opportunity to interact with your customer in a meaningful way!

It is important that existing and potential customers recognize the value in down loading your app by showcasing the benefits of the program that comes along with being a valued member.  The challenge will be present itself  initially  when trying to acquire the apps first users but it will go much more smoothly by creating a hype and excitement before launching your new loyalty app.  It is important that you know exactly the goals or goals that you want your app to achieve

1) solidify loyalty from existing customers

2) increase sales through engagement

3) keep customers knowledgeable of sales, promotions or events

4) interact with your customers through engagement, similar threads of interest

To help  make the launch of your app successful marketing strategies can be used to further your brand and help reach their target audience and boost downloads

1) add originality to your app, be creative, don’t mimic someone else

2) optimize your app so it is visible

3) have a working website, be active setting up social networks

4) update new versions based on feedback

5) keep an accurate  account of your apps progress

It takes the time and effort of a business  to take the initiative to go the distance, not just to meet but to exceed the customers expectations. The key lays in engaging shoppers throughout the year, across as many social platforms as possible.  Since the wants and needs of the consumer is constantly changing  “Consumers value their time and will change their shopping behaviors based on the technological tools available.” An app from MASS MOBILE APPS will execute your vision and make shopping a social mobile experience for your business… giving  customers a compelling reason to do business with you! [contact-form][contact-field label=’Name’ type=’name’ required=’1’/][contact-field label=’Email’ type=’email’ required=’1’/][contact-field label=’Website’ type=’url’/][contact-field label=’Comment’ type=’textarea’ required=’1’/][/contact-form]

The Mobile Web is Dead, It’s all about Apps!

It is becoming more apparent that the one thing people today don’t leave home without is not their American Express card, but their smartphone.  They aren’t spending the day making calls, so what are they doing?

Data shows that the average user checks their phone about 110 times a day, and throughout the day they are spending 86% of their time in mobile apps.

The accompanying chart from mobile analytics company Flurry shows just how dominant the native app is compared to the mobile web.  The chart shows a 6% growth in mobile app usage compared to a 6% decline in mobile web usage.  More significantly, the read rate of promotional emails is between 5% – 20%, whereas a push notification is read at an astounding rate in excess of 97%.  It’s still too early to predict the course apps will take in 2014, but it’s clear to see that mobile web activity is dwindling and the apps are taking over. Now every company in the world is adjusting to that reality

Amazon doesn’t have to build native apps — Amazon essentially has no competition. So why do they do it? Any why does eBay, and Facebook, and Twitter, and all the others who pour masses of development dollars into apps that no one needs?

Your customers are checking their phones 110 times a day — do you have a mobile app?

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source: http://blog.flurry.com/bid/109749/Apps-Solidify-Leadership-Six-Years-into-the-Mobile-Revolution