With mobile app revenue expected to grow to $189 billion worldwide, there's a ton of room to get started in the mobile app industry. But creating a successful mobile app calls for relying on insights that will help you drive revenue that increases profitability for your mobile app business.
Consider these seven insights to help your mobile app business stay profitable in 2019.
1. Artificial Intelligence Will Play an Important Role
Using artificial intelligence in your mobile apps offers promise. They provide valuable insight to business users, such as user behavior and business analytics that help leaders assess risk. They're also useful for helping users on the consumer's side solve problems.
For instance, AI-powered chatbots can be a driving force that helps retain customers and drive profit. They are useful for answering questions and managing minor requests in-app via instant messaging. People are also more interested in chatbots than they are not. According to a study from LivePerson, 33 percent of its respondents viewed chatbots positively versus 19 percent who did not.
A BI Intelligence report also indicated that the average time spent in these messaging apps is expected to grow to 12 minutes in 2019 up from 6 minutes in 2015. That means you'll have more opportunity to resolve issues, provide cross-selling or upgrading opportunities and keep your users engaged with your mobile app.
2. User Interface (UI) and User Experience (UX) Can Impact Your Profits
If you want to give your app the best chance of making a profit in 2019, it's important to think about your UI and UX. When you think of the design of your app and how it will be used from the users' perspective, then you can take advantage of tactics that can help increase conversion.
It's what helped companies, such as Yelp and Uber, improve the usability and performance of its apps to drive conversion. It's important to think coordinate UI and UX to enhance the overall experience and encourage conversion as research shows that 21 percent of millennials are more likely to delete an app if they find the app logo to be unappealing.
But the great part about creating a mobile app is that it doesn't have to be a solo job. You can create a mobile app with the help of a reliable professional team with years of mobile app development experience, such as Arkenea.
3. Young People Represent the Largest Group of Mobile App Purchases
Research from ComScore reveals that millennials are more inclined to spend money on mobile apps for in-app purchases and for the cost of the app. According to the research, 64 percent of people between the ages of 18 and 34-years-old paid for an app. So, focusing your target audience on this demographic may prove lucrative in the long run.
4. User Referrals Matter
In order for your app to be successful and profitable, you have to be able to grow your audience. Word-of-mouth tactics can prove beneficial for boosting interest in your app when you leverage user referrals. Research shows that user referrals can boost app downloads by as much as 300 percent.
This happened for Airbnb when it implemented in-app referrals. According to Statista, Airbnb saw a 31.7 percent increase in downloads in May 2016 compared to May 2015 thanks to in-app referrals. You can learn from this example and take advantage of in-app and user referrals to attract new users and grow your audience.
5. Social Networking is the Top Type of Apps Consumers Use
If you're trying to drum up ideas on the types of apps you can create that drive profits, think about social networking. Comscore's 2017 U.S. Mobile App Report revealed that social networking apps were the most used apps. Millennials used these apps the most followed by entertainment apps.
Some of the most popular apps included Amazon, Gmail and Facebook. But don't count out other lucrative options, including apps that use location-based services, such as hotels, sports and retail outlets.
6. Most App Downloads are Organic
Attracting new users is crucial to facilitating a profitable mobile app business and you can get it done using by focusing on organic marketing. According to research by Tune, roughly 90 percent of mobile apps that are installed are organic. This means that the download did not result from a paid ad.
So, it's important not to ignore offering apps that are optimized in the App store or Google Play so that it gets in front of the right audience. Even if your app is free, you will still have an opportunity to drive revenue via in-app purchases, too.
7. Push Notifications Impact Engagement
To keep your users engaged with your app, it's important to remind them about the app or its features. Since 75 percent of users stop using mobile apps within days of downloading the app. That's where push notifications can make a difference. Research shows that push notifications encourage user engagement and retention by 20 percent.
Although push notifications have been problematic for most users in the past, today more users see the value of using push notifications. According to a Loyalitics survey of 1,000 U.S.-based smartphone users, approximately 52 percent of its respondents believe that push notifications have improved between 2015 and 2017.
The key to keeping users engaged and push notifications less problematic is to use push notifications based on user preferences rather than their behavior.