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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

A 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.
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How to Build a Successful Loyalty Program

Regardless of the size of your business, customer loyalty programs ensure more repeat business than any other form of advertising. However you need to make sure that your customers are  participating, and are able to advantages of your program.JoinNow

The easiest way to promote your loyalty program is to do it at the point of sale, face to face with your customer.  It is imperative that your employees are well trained and enthusiastic when promoting your program.  The customer is already committed to buying something from you, why would they not want to receive some type of a reward for giving you their business?  If your business has the ability at the time a transaction is being made, it would be an easy way to help your customer sign up, or download your program, alternatively if you are a high volume enterprise, then having professionally printed material explaining how the customer would be able to join your program at a later time would be important.  In both scenarios there should be clearly marked signs outlining how to join, and what the benefits of your program are.

Featuring your loyalty app, with the links of the respective app stores, in all your marketing material, is also an excellent way to quickly gain users.  Places that would be helpful are, your website, your company facebook page, your company twitter account, and other company social media accounts…

For any loyalty program to work, it essential that you are able to get your customers to adopt it.  Offering an instant reward upon signing up is a tool that is also very effective;  for example, upon signing up for your program, offer the customer an instant savings or a gift.  This will dramatically increase early adoption, and get your program off to a good start.

At Mass Mobile Apps, we have account experts that can help you structure a program, and ensure your success. Contact us to get started! [contact-form subject=’Contact from Blog’][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]

 

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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.

 

 

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PROMOTE, ENGAGE and REWARD

A common mistake made by many retailers is investing too much of their marketing budget on trying to get new customers, rather than investing in the customers they already have.  Companies/brands must first reward their profit makers for being loyal.  A business should differentiate between customers who bring the most value to their business and reward them accordingly.   To drive activity and boost revenue from a business’s loyalty program it needs to incorporate a tiered reward based platform to reward it’s most valuable asset it’s repeat customer. A spend more – earn more strategy  by rewarding VIP customers based on the value that they bring to your business. By offering discounts and special privileges business’ are afforded the opportunity to build closer relationships with their ideal customers.  Rewarding VIP customers in a tiered loyalty program may include:

1) offering  free goods for liking and sharing on social media.

2) discounts and promotions.

3) special buying opportunities(e.g. advanced viewing of new product).

4) offer preferential service terms/ offer special service(e.g.waiving minimum order quantities).

5) offer cost on products that are affiliated with a big regular priced purchase(e.g.purchase of a coat at regular price, offer either hat, scarf or gloves at 50%off retail).

6) reward introductions and referrals (e.g.offer discounts or free gifts for every new customer they introduce to the business.

7) entice customers to spend more then intended (e.g. spend $50 and get double rewards).

It is a mistake to underestimate the a value loyal customers brings to your business, since they are the ones who purchase more frequently and recommend your brand!

Does your loyalty program recognize the benefit of differentiating rewards to reflect the value they bring to your business?

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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

 

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Keep in Touch

Small businesses are investing more of their time, money and resources by effectively strengthening relationships by implementing a loyalty program.  If you are a small business owner that has not leveraged the use of a loyalty program, you should…and this is why:

The January 2014 report “Achieving Big Customer Loyalty” focussed on surveying 1,000 small business owners practices and released its findings; that it is imperative that brands create personalized experiences for their loyal customers.  The results are astoundingly in favor of a business implementing a loyalty program. “Manta” reported that of 1,000 small businesses (members of Manta) surveyed, 50% of business owners reported 61% of their annual revenue came from repeat customers.  Loyal customers were spending 67% more than a new customer.  As a result, businesses were only allotting 14% of their marketing budget  towards the acquisition of new customers.  So it can be said, that future marketing dollars are better spent not by chasing a new customer, but by maximizing the value in customers they already have!   Unfortunately, only 34% of small business owners have adopted a loyalty program for their business, and those that have are using the tired old punch card.

For any loyalty program to be successful, it requires mass adoption.  And offering a another plastic card to a customer just doesn’t cut it in today’s high paced tech savvy world!  I for one automatically balk at the request of a store clerk that is offering me another piece of plastic for my wallet.  It is time to enter the world of mobile marketing…why not offer your loyalty program in the form of a mobile app?  In doing so, it allows a business owner to not only offer their customer the benefits associated with a loyalty program, but it gives the business a way to reach their customer on a platform that is the most engaging, and on a device that they have with them 24 hours a day.  The custom mobile app offered by Mass Mobile is a product that does just that!   The businesses that adopt this type of high tech engagement, get the instant credibility of being found on the “App Store” , which in the past was reserved for large scale operations, along with the ability to market in way that is sure to have the message being sent, seen by the target audience.  Push notifications have the ability to been on a users smartphone just like a text message…and these messages are opened at a rate of 99.8%.  This is staggering when compared to emails sent by businesses getting open rates of between 15-30%.  The question is no longer, will a business adopt a mobile app, it is when will they adopt it?

Small business owners need to engage with its customers to increase its sphere of influence and to create meaningful relationships by creating personalized experiences. “Every retail brand now understands that acquisition is just the first step, and that retention is a top priority for achieving profitability.”  Since 89% of consumers already participate in some type of loyalty/rewards program, the time is now to implement your own marketing loyalty strategy. Ted Williams, BIA/KELSEY’S Professor of Strategic consulting, confirms that customer loyalty programs are starting to gain traction in the small business community and went even further to say that these findings align BIA/KELSEY’S analysis that over half of small businesses will launch customer loyalty programs by the end of 2014 to help their businesses be more competitive.

Don’t be left behind, grow your sales and be on the forefront of the new way to do business!

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5 Things you must know about the future of Mobile Marketing

1. The future of mobile started yesterday

The future of mobile marketing has started, and it is exploding.  If your business does not have a mobile strategy in place today, you had better have one soon! Most of the world’s biggest retailers and corporations have not jumped on the bandwagon yet either, but that landscape is changing everyday.  The Apple app store is adding 20,000 apps per month, and no they are not all angry birds wanna be’s.  More and more companies are launching mobile apps for their businesses.  Whether it is an online shopping app, or simply an app that contains relevant company information, mobile apps are definitely the way of the future.  The mobile app will be for businesses in the future what the website was for businesses in the past.  One of the fastest growing segments within the corporate appesephere is the mobile loyalty app.  This is a great way for companies to reward their customers, and have the access they so desperately desire to market to them as well.  Now with the explosion of smart phones, a tech savvy company that develops their own app will have the ability to reach their customers in ways that they have not had in the past.  Hits from mobile devices more than doubled from January 2011 to January 2012. In 2013, mobile web searches were expected to eclipse searches from desktop for the first time in history. Don’t wait until next week, next month, or next year to start thinking about mobile—get started today!

2. Mobile users are social users

If you are using social networks to market your business, you are likely already engaged with the “mobile majority, over 80% of smartphone users use their mobile devices to connect to sites like Facebook, Twitter, and Pinterest. On Facebook, 600 million of its 1 billion users are logging onto the site via a mobile device, and 70% of those users return to the site on a daily basis (compared to 40% for desktops).  That means, whether it’s at home, work, or at your place of business—mobile users are among the most engaged members of your social communities.  How can your business extend your brand and further your corporate goals by connecting with customers that are already in your social network?  By exploring the most current and latest technology that is available, that’s how!

3. Your Customers are accessing more information in more places than ever before

Mobile’s influence can already be seen on the life of your customer.   Consumers today are ahead of the mobile curve.  A recent study found that over 65% of all smartphone users had used their mobile devices to assist them in making a purchase, with more than 35% of those customers using their devices to research products and services while in a retail environment.  Google released a forecast for shopping projecting that four out of five smartphones will rely on mobile devices for help during the shopping season. These users are checking prices, reading reviews, and researching  your competition.  The Bottom line? The mobile consumer is an informed consumer, and it’s never been more important to have your brand up-to-date and accurate across all of your online channels.

 4. Mobile will redefine customer service

If you haven’t been monitoring your social networks for customer comments, questions, and complaints —you may want to add it to your list of resolutions for 2014.  Nearly three-quarters of all companies are now using social media as a channel for customer service,  One in five consumers is already using sites like Facebook and Twitter to have their voices heard. Expect mobile to send that number skyrocketing and for social costumer service to become the norm for businesses of all sizes.

5.  Content creation is going mobile

The mobile revolution isn’t only having a profound influence on the lives of consumers, it’s also changing the way business owners—especially small business owners—are marketing their business.  This is especially true when it comes to content creating. Coming up with content ideas for Facebook, Twitter, or an email newsletter is one of the biggest pain points facing small businesses. While smartphones aren’t guaranteed to alleviate all your content creating anxieties, they do make it easier than ever before to capture content ideas and turn everyday work experiences into engagement posts on Facebook and active-worthy articles for an email newsletter.

Here are 5 ways small businesses can use smartphones to create fresh content.

Start small, think big, and get ready

Today, less than 1% of marketing budgets are being allocated for mobile.  That’s a huge miss for business owners and, more importantly, a huge disappointment for their growing mobile customer base.  But preparing your business for its mobile future doesn’t have to break the bank.  You can start by giving the channels you are already using a closer look.  Does your social media marketing strategy fit a mobile world? Does your website offer the type of experience you want on smartphones and tablets? Is your business easily discovered by online searches.  Start small, think big, and begin to plan for a bright future in mobile marketing.

How has mobile impacted your marketing strategy? We would love to know, tell us in the comments

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Will your app survive the cut?

No more plastic loyalty cards, coupons or receipts, punch cards or even key fobs.  Customers want more, and expect more. Fumbling through a mega wallet is not an ideal situation when you are trying to locate the right loyalty card in sufficient time, it can be daunting.  Most customers feel defeated even before they attempt to accumulate their rewards and would rather decline another punch or stamp, than attempt to search through their purse or wallet and hold up the line, and risk further embarrassment…sound familiar? The frustration customers feel is real and there is a stress free solution.  A smart phone loyalty app.

Based on results from an online survey of 1,000 Canadian adults conducted earlier this year, the report estimates that 56 per cent of the population uses a smartphone, up from 33 per cent in early 2012. With an average of 26-40 different apps consumers spend at least 2 hours a day on their mobile devices, the loyalty app for a business has the potential to deliver high rewards by increasing revenues considering the relatively low cost to implement.  The development of the loyalty app is the most influential marketing tool to be made available to SME, (small and medium enterprises).  It allows businesses to create direct personal links with its customers, in the most current and up to date channels available.  Brands/businesses must push themselves forward, to meet the demand of its customers, so  the goal is to create an app that is repeatedly useful and keeps them coming back.  Since approximately only 22% of mobile apps are used only once, it is essential that it provides a service or function that is original and valuable.  Consumers will download apps that they find personally relevant and would like to use on a regular basis.  Currently consumers are still reluctant to use a mobile device or app for payment transactions, but have fully embraced the technology of a mobile loyalty app.  If the loyalty apps fail to meet the customers needs, it will most probably be deleted.

The standard procedure in today’s market place are loyalty apps that bring a business into their environment, where they will promote that app, and not their brand or business.  This system places businesses under the same umbrella as their competition, and does not distinguish their business or allow them to differentiate themselves from others.  It is critical when building a brand that a business promotes their message uniformly across all platforms.  For example, “Joe’s Pizza”  would be better off with a “Joe’s Pizza”  app, that allows him to be original and further his brand, instead of being included in a loyalty program that promotes many other businesses. The point of a loyalty program should be to keep your customers loyal, by not sharing them with your competition, right?  Mass Mobile Apps provides a customizeable loyalty app that allows the business to promote and push their own brand across what is the largest growing segment in technology today, the mobile device.  Weather it is a smartphone, or tablet, mobile devices are now out selling the traditional desk top. More consumers are also now accessing the internet via a mobile device.  It is therefore imperative that a business has a mobile strategy in place, or are in the process of implementing one.

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5 Tips to Help Launch your App

5 Tips to help you Launch your App

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Loyalty programs can help you stimulate repeat business, attract and retain new customers, and boost your sales.  But it is important to get your customers to adopt your program. Make sure you kick-start things right. Here are 5 tips from Mass Mobile’s most successful merchants that will help get your new loyalty program off to a strong start:

1.     Sell your staff on the idea first.

Get your staff excited about your loyalty program, and they’ll talk it up frequently with customers.

 2.     Get the word out early.

Let your customers know via existing marketing methods, like facebook and twitter….Use professional point of purchase signage.  Your existing customers are already in your store making purchases, why would they not want to join your loyalty program.

 3.     Offer a juicy first-time signup special.

Trying anything new can be daunting, so your first offer should be an extra-enticing one. Customers should feel it’s a no-brainer to clear the hurdle of signing up or learning, just to earn that juicy starter reward. Once they see how easy and fun it is to use, you’ll hook them for good.

4.     Demo it live!

Seeing is believing. Offering a tablet version of the app would help customers see how easy and fun it is to use.. Once customers see your program is simple to use, it’s a snap to keep using it.

 5.     Promote, promote, promote.

There are plenty of ways to spread the word about your new loyalty program. Different customers pay attention to different channels, so make sure you’re trying to reach them every way you can. This is not something you are not already doing, include the app store logos in any marketing material you use going forward. Remember adoption is the key.  Here are a few venues to remember:

  • Display signage about your program at the counter, or tables, or where customers pick up their orders.
  • Prompt your staff to ask customers if they are already a member with each transaction, and make sure they can explain the program benefits clearly. (Better yet, incentivize your staff to make this happen.)
  • Add an app store, and google play logo button to your website, Facebook, and Twitter pages – and talk up your program on social media often.

.A smart customer loyalty program can move the needle for your business – but a strong launch is key to unlocking the full benefits. If you’re a Mass Mobile member (or curious about becoming one), don’t hesitate to contact us for more pointers on getting started right.