Mobile apps have historically performed well during economic challenges. Learn why developing an app can help your business succeed during the recession.
The threat of a recession is no longer a looming prediction that may or may not happen. It's here, and businesses are doing everything they can to “recession-proof” their income and business models. Most people will assume that there is no way to avoid losing profit during an economic downturn, but that's not always true. Though it may sound contradictory, businesses that approach a recession strategically and with the right tools can thrive. At a minimum, with they can avoid a loss and maintain revenue that will see their business through to the other side. One way that is sure to help your business thrive is investing in a mobile app. In fact, with the rate of smartphone and app usage growing enormously every day, it is one of the best moves your business can make to stay afloat during these financial times.
Recessions are of course inherently negative experiences for everyone. However, they can also pose an opportunity for your business to shift strategy and focus on the new needs of consumers. During a recession, customers still have needs and desires. They may not be going to the store as often or intentionally making large purposes, they will be using their phones just as frequently. Investing in a mobile app means keeping your brand relevant, even when consumers aren’t participating in traditional purchasing habits. It's also an opportunity for your business to open new lines of products that are relevant to the economic downturn, such as money-saving goods or savings tools. It is an opportunity for you to be the brand that helps them continue to consume but at a lower price point. You can entice users with discounts and special deals, and make sure they know that even through challenging times, you care about the relationship you have with consumers.
In addition, recessions typically make for less competition in the market. Competitors with higher prices or less accessible products won’t be considered as often, making room for you to step in and be the better option. No matter how you address your strategy to fit the needs of consumers, mobile apps make it easiest and more accessible. You want your brand to be as visible and relevant as possible. Customers that find you beneficial during a recession are more likely to remain loyal once the recession has passed.
Even within a recession, mobile app usage is higher than ever. This is not new, and historically mobile app usage continued to grow during economic downturns even when other industries plummeted. This was true both during the 2008 recession and all of the financial issues that came with the recent pandemic. Experts are predicting the same for this recession, and have already begun to see the upward trend in mobile app usage. With that said, now is the ideal time to start your mobile app development. Evolving your business to include a mobile presence will ensure that the large influx of mobile users can incorporate your business into their favorite apps. It will also give prior customers who may be trending away from traditional shopping a way to keep in touch with your business via their phones.
The one challenge to desktop and in-store services is the lack of personalization. In general, society has trended toward a preference for individuality and personal recognition. As of August 2022, 54% of internet traffic is mobile. During a recession, these desires grow infinitely as people have limited resources and want to use services that they feel personally called to. Mobile apps can give you the platform to do exactly that. You can monitor your user's preferences, habits, and needs which will help you tailor their in-app experience to be highly relevant to them. A lot of times during a recession, people can become overwhelmed with options. Your strategy should include making your business the obvious choice for customers to allocate their resources. Whether that be time or money, a mobile app can help you ensure that your brand is the top choice.
Challenges often lead to breakthroughs, and this is true in the mobile app world. Some of the most well-known and successful mobile apps began in a recession. Netflix, Airbnb, NerdWallet, and Warby Parker all started during financially challenging times. What do these brands have in common? They combine mobile access, with a “savings” based approach to their products. Each of these brands provides less expensive options for popular goods and services. Whether it be streaming, housing, saving money, or medical needs - you can do them from your phone and at a fair price. The pattern we see with these mobile apps is that they solved a problem during a time of consumer challenge, but were relevant enough to continue success after the recession ended. All of these brands are still wildly popular today and are some of the highest revenue mobile apps on the market. Netflix, for example, was once a DVD-based subscription business but shifted its strategy to provide for its consumer's changing needs. Your business can do the same, and the answer should always involve a mobile app.
Invemo LLC Help Your Business Thrive
Invemo LLC has been developing mobile apps for 10+ years and understands the complexities of development and the industry. We have brought amazing stories and ideas to life with our highly rated mobile apps. If you’re ready to integrate your business into the mobile sector, visit our website or contact us for more information on our services.