6 effective ways mobile apps can boost revenue for SMEs
In the digital age, small and medium-sized enterprises (SMEs) must embrace innovation to remain competitive and ensure steady growth. One of the most valuable tools for driving revenue and streamlining operations is a mobile app. With the continuous rise of mobile usage and the dominance of eCommerce, having a mobile app is no longer optional—it has become a key driver of success in today’s business landscape.
Mobile apps offer SMEs a range of opportunities, from improving customer engagement to increasing operational efficiency and unlocking new revenue streams. In this article, we’ll explore six highly effective ways mobile apps can help SMEs drive revenue growth and improve their overall business performance.
1. Establishing a Direct Sales Channel
One of the most significant advantages of having a mobile app is the ability to create a direct sales channel. A mobile app eliminates the need for intermediaries and allows customers to interact directly with your business. Through in-app purchases, bookings, product catalogues, and secure payment gateways, SMEs can provide customers with a seamless and convenient buying experience.
Mobile commerce (m-commerce) is rapidly gaining ground as a dominant sales channel. With global mobile commerce sales projected to reach $3.56 trillion by 2024 (Statista), SMEs that invest in mobile apps can capture a growing segment of this market. The trend toward mobile commerce has been driven by improvements in technology, user-friendly interfaces, and the increasing comfort consumers feel when making mobile payments.
Beyond facilitating sales, a mobile app also allows businesses to offer personalized promotions, discounts, and flash sales. This can increase conversion rates and boost sales without the overhead costs associated with third-party platforms or marketplaces. For SMEs, this direct interaction with customers means keeping more of the profits and controlling the entire customer journey.
2. Boosting Customer Loyalty and Retention
Customer loyalty is one of the most valuable assets for any business, and mobile apps provide an excellent platform for building strong, long-term relationships with customers. SMEs can implement loyalty programs through their apps, offering rewards, exclusive deals, and other incentives that encourage repeat business.
By leveraging features such as push notifications, businesses can send timely reminders about special promotions, loyalty rewards, or new product launches. This not only keeps your brand top-of-mind but also enhances engagement by giving customers reasons to keep coming back to your app. These personalized touches can significantly improve customer retention, which in turn drives long-term revenue growth.
According to research, loyal customers are 5 times more likely to repurchase and tend to spend more on future transactions (Invesp). By offering a mobile app that strengthens customer loyalty, SMEs can reduce churn and maximize the lifetime value of their customers.
3. Enhancing the Customer Experience
Customer experience has become a key differentiator in today’s competitive market. In fact, 80% of consumers say the experience a company provides is as important as its products or services (Salesforce). A mobile app allows SMEs to deliver a seamless and user-friendly experience that can set them apart from their competitors.
With a mobile app, customers can access your services at any time, from anywhere. Features like real-time customer support, order tracking, and self-service options such as appointment scheduling or product returns improve the overall user experience and reduce friction in the customer journey.
For example, integrating a chatbot or AI-powered virtual assistant into your app can provide instant answers to customer queries, helping to resolve issues quickly and efficiently. This level of service can increase customer satisfaction, leading to repeat purchases and stronger brand loyalty.
Furthermore, offering convenience through features such as one-click purchases, mobile payment options, or saved customer preferences makes it easier for customers to complete their transactions. In the long run, providing a superior experience can result in higher customer retention and a more loyal customer base.
4. Increasing Brand Visibility and Awareness
A mobile app ensures your brand is always present on your customers’ devices, creating an ongoing visual reminder of your business. The constant presence of your app icon on a smartphone screen can be a powerful tool for increasing brand visibility and awareness. As customers scroll through their devices, they are likely to encounter your app repeatedly, which keeps your business top-of-mind.
In addition to this passive form of brand recognition, a mobile app allows for more active engagement through push notifications. By sending updates, news, promotions, or reminders, businesses can re-engage with customers who may not have interacted with their brand in a while. These notifications can be tailored to individual users, making the interaction feel more personal and relevant.
Studies suggest that mobile apps can increase brand visibility by up to 73% (Statista), providing a strategic advantage for SMEs. By staying visible and memorable, businesses can nurture deeper relationships with customers and encourage more frequent transactions.
5. Harnessing Customer Data for Personalized Marketing
One of the key advantages of mobile apps is the ability to collect and analyse customer data in real time. By tracking user behaviour, preferences, purchase history, and browsing habits, SMEs can create more effective and personalized marketing strategies.
Data-driven insights allow businesses to segment their audience and deliver highly targeted marketing campaigns. For example, based on a customer’s previous interactions with your app, you can send them tailored promotions, product recommendations, or personalized offers that match their preferences. This level of customization enhances the customer experience and increases the likelihood of conversion.
Personalized marketing has become an essential component of modern business strategy. 80% of consumers are more likely to make a purchase when brands offer personalized experiences (Epsilon). By leveraging the data gathered through your app, you can refine your marketing efforts, improving both engagement and revenue potential.
Additionally, SMEs can use data analytics to identify trends, spot emerging customer needs, and refine their product offerings. By staying agile and responsive to customer feedback, businesses can better serve their audience and build stronger, longer-lasting relationships.
6. Unlocking New Revenue Streams
In addition to direct sales, mobile apps can unlock new revenue streams that go beyond traditional business models. SMEs can explore various monetization strategies, including in-app purchases, subscription services, and partnerships with advertisers.
For instance, you can offer premium features or exclusive content through your app that users can access for a fee. This could include advanced functionalities, digital products, or membership-based services that cater to a niche market. Subscriptions are another way to generate recurring revenue, especially if you provide ongoing value through content updates, new features, or premium support.
Advertising partnerships also present opportunities to generate additional income. Businesses can collaborate with other companies to display ads within their apps, earning revenue based on clicks or impressions. However, it’s essential to strike a balance between advertising and user experience to avoid overwhelming your audience with too many ads.
In today’s digital-first economy, SMEs that want to grow and stay competitive must leverage the power of mobile apps.
At Finlayer AI, we specialize in developing AI-powered mobile apps that are custom-designed to meet the unique needs of SMEs. Our solutions help businesses streamline their operations, engage with customers on a deeper level, and drive sustainable growth. If you’re ready to take your business to the next level, book a demo today and discover how a mobile app can transform your revenue potential.