GUEST BLOG: Six reasons why your business should invest in an app

By Rob Straathof, managing director at Liberis

The rise of digital has provided small to medium-sized businesses the opportunity to compete.

It can be difficult for a small business to compete with larger companies and franchises due to their large financial backing, resulting in a larger investment in marketing and visibility.

When you think of creating a mobile app do you immediately think of the expense? It’s true that apps can be very costly to build, but, luckily there are many options and companies out there that are making basic apps accessible to smaller budgets.

Why should small businesses bother investing in apps? An IMRG report revealed that 63% of UK millennials like using a mobile app to purchase a company’s product or service, meaning if this is your primary target audience you could be missing out on a lot of potential business.

Here are six reasons why you should consider an app for your business:

1. Streamlined data collection

When potential clients download your app they will be prompted at some point to enter in their contact details, such as email address and mobile number. This means if they convert into a client you can use these details to contact them with marketing material such as email campaigns and offers.

Collecting data via an app also decreases the risk of human error inside a shop or salon. For example, your stylist has just performed a consultation on a new guest and has asked her for her phone number and email address, but the email address is written/typed into the database incorrectly.

The main benefit of investing in an app is the increased custom, whether this is from existing clients or new clients, a return on investment is always the aim when a substantial business expenditure is made

You have then lost the ability to market effectively at this client decreasing your chances of retaining them, and according to McKinseys ‘Email marketing is 40 times more effective than social if your goal is to acquire customers’. Making your email database one of the most valuable marketing assets in your business.

Most apps will also come with a form of analytics or statistics allowing you to view the amount of purchases/bookings made and whether these are from old or new guests, the amount of new downloads, phone calls made via the app and handling times, allowing you to view the effectiveness of the app and your staff at the other end handling the booking requests.

2. Increased bookings and purchases

The main benefit of investing in an app is the increased custom, whether this is from existing clients or new clients, a return on investment is always the aim when a substantial business expenditure is made.

Sometimes a booking may be of a delicate nature, waxing for example. Women, or men for that matter, may put off booking a treatment due to being too embarrassed to book over the phone. An app allows a customer to make a faceless booking whether they are in public, at work or at home.

App providers such as Gappt specialise in last minute bookings. Their apps allow clients to see a week of available slots for a range of therapists/stylists, allowing the business to fill white space which otherwise would have passed as wasted time, and as a result loss of earnings. They can also give people the opportunity to express interest in a stylist and be notified if the particular stylist or therapist has a cancellation.

If you are a retail business an app can also give you an additional platform to sell your products from. Not all websites are mobile optimised or responsive, which can leave potential customers frustrated. An app would simplify the purchasing process as well as decreasing the risk of comparative shopping; it is a lot more hassle to bounce between apps than it is between tabs.

3. Push notifications

Do you remember agreeing to receive push notifications from your apps? Probably not, but you more than likely clicked yes in a desperate rush to play the game you just downloaded. This also applies to potential clientele who have downloaded your app. The advantage of this missed communication is that you have another way of communicating with your app users via push notifications.

In the same way that your text messages pop up, push notifications appear on your device home screen and notify you of a message or event when the app isn’t actively being used.

An app would simplify the purchasing process as well as decreasing the risk of comparative shopping

Although it is not advised to overdo these push notifications, with 50% of users finding them annoying and 50% finding them helpful, if your company is offering app users an exclusive discount code or you have an event coming up it can be an effective way to reach those that do not engage on social or with newsletters.

It is advised that businesses test the water with push notifications and decide whether or not they are suited to their particular audience.

4. Share company news and updates

Think of the app as an extension of your website but with the benefit of easy access and being automatically optimised for mobile. You can have a section for videos, news and/or a gallery. Apps involve little effort for the consumer, allowing them to simply open the app and have access to your content.

The Chapel, a high-end London salon chain, have successfully included content into their booking app, there is a section that contains engaging how-to videos, allowing their app users to replicate favourite hairstyles themselves.

The videos are embedded from YouTube onto separate app pages, and with each video having a share button The Chapel have provided engaging shareable content, increasing brand awareness and perhaps converting some views into enquiries.

5. Provide up-to-date directions to their local branch and contact details

A lot of people will use a hair/beauty salon’s website to find contact details or an address to the business. Issues can arise if the website isn’t easy to use from mobile, for example no click to call actioned.

Apps will allow the consumer to click a number or button to call the business, removing the need to copy and paste in order to contact the business, this will also be tracked in your app statistics, so you can see all of the clients that called via the app.

Think of the app as an extension of your website but with the benefit of easy access and being automatically optimised for mobile

You will also be able to embed an interactive map, with the ability to zoom in and see your current location, into the app meaning that rather than offering a static image of a map or an address, this will link to the map feature of a client’s smart phone, usually Google maps, and will enable them to get directions from their current location to the business address.

Although these features only cut a few minutes out of each process, consumers will appreciate the journey being made easier, which could turn into a booking and turn a prospective client into a loyal guest.

6. Increase brand loyalty with incentives

Some people who visit a small business’s website are either looking for contact details or have landed on the page by accident. An app needs to be intentionally downloaded meaning that the consumer is already ‘buying’ into the brand. It is then your job, once they are there to ensure they stay and become loyal to your business.

This can be achieved in a number of ways, from ensuring there is a sufficient amount of engaging content on the app to rewarding the app users’ loyalty with exclusive discounts and ‘first looks’ at new products.

App Beaver even includes the option to have a brand loyalty ‘card’ on the app. This works in a similar way to the traditional stamped loyalty cards you would find in a lot of coffee shops but all contained within the app.

This feature keeps the consumer engaged with the app, reduces the risk of misplacing the card and keeps them coming back for their incentives.

A code is required to give each point meaning there is little risk of the app user awarding themselves.

Although an app requires an initial investment, or monthly payments, companies such as Gappt, Appsbuilder and App Beaver offer packages that suit all budgets.

Something more bespoke will cost more initially but with alternative financing options such as unsecured financial business loans, allowing you to pay back only when you’re earning, it is a viable option for businesses to consider and once you start experience a return on investment the initial cost will have been worth it.