A Blueprint of Investing in On Demand App Development Services

As the large chunk of population switches from desktop to smartphones for browsing internet, checking directions and shopping online, mobile apps can actually become highly profitable for businesses that become the early adapters of the technology. While mobile apps have actually revolutionized several industrial sectors via organizational efficiency and business transformation, they have opened innumerable business gateways for on demand service providers – giving rise to more and more on demand applications like Uber and Doordash. If you too are planning to take a plunge in the service industry, and want to hit the market big, here is a quick guide on utilizing on demand app development services for skyrocketing your business. 

What are on demand apps?

On demand apps are mobile platforms and marketplaces that connect service providers to service buyers. Take the example of Uber, the ride booking app. On one side of the screen is a customer who wants to travel short and long distances on a specific vehicle, on the other side is a range of drivers who are willing to provide pick and drop on their own vehicles. 

Similar to this model is Doordash, a food delivery on demand app that connects foodies to different restaurants and food businesses. Some other popular examples of on demand apps include Grubhub, UberEats, Lyft, Curb, Merry Maids, Gyft and Doctor on Demand.  

And let me tell you, all of these apps are doing quite well financially. They are a source of profit inspiration for entrepreneurs in the space and so, startups in diverse industries are opting for on demand app development services. 

That’s because of their monetization model. These apps have options to earn from a variety of sources. They can generate ad revenue from Apple and Google, earn from sponsored content and featuring service providers, charge delivery fees and tip to their end-users, make money in form of platform fees, commissions, premium packages and so on. And more importantly, most of the on-demand applications available online are making money from a mix of these monetization models. 

Benefits of On Demand App Development 

1. Mobile apps help with lead generation and conversion 

On demand apps help businesses as storefronts. If you are a service business, you don’t really have to build a brick and mortar store and invite customers to come to your outlet to make sales. Your app’s interface is enough to attract consumers, generate hot leads (since only interested people will browse app) and get conversions. 

After investing in on demand app development services, a business has ample of opportunities to create turnover and meet revenue targets. Think of these apps as representatives that put your service in your customers’ hands! 

1. Mobile apps boost customer experience 

You can even stretch your business and choose to run in through a physical agency or a social group. But, think why consumers love shopping in stores and online. 

What if they get everything and more in your application? Features like chatbots, service guides, online payment options, personalized recommendations etc. in mobile applications boost the user experience. And if you have a branded application – call it enhanced customer experience. 

Service businesses and quick delivery vendors who previously depended on social media handles and websites can especially utilize mobile app development and see their businesses skyrocketing. 

1. Apps strengthen brand loyalty 

By boosting customer experience and sending personalized recommendations, entrepreneurs can establish brand loyalty and make their app (and their business) a household name. 

Build a loyalty program with monetary and non-monetary benefits and market your business to a new level. Send in coupons, discounts, free vouchers or start an affiliate program and turn your app users into brand ambassadors. 

Again, refer to the example of Uber. A lot of app users, when talking about booking a ride for pick up or drop off talk, they use the word ‘Uber’ or ‘Lyft’ instead of saying ‘let’s book a ride’.  

1. Apps help with data collection and analysis 

Lastly, mobile apps have panels and algorithms in the back end that continuously store, process and transfer data. You can use this data for analysis and creating data-backed business strategies. 

This data can help you understand your target audience’s primary pain points, services they are interested in, products they wishlist and their overall buying behavior during specific seasons. The data can further help you analyze which items and features helped your business, which season was best for throwing sales, which marketing scheme did not perform well. Based on this data, you can actually decide your pricing and monetization strategies and plan your marketing campaign accordingly. 

How to hire right on demand app development services 

Now you already know the business potential of on demand mobile applications, but you can’t build an app single-handedly. You need support of at least a developer and testing professional to code and launch an app that has high-end user experience and does what it is supposed to. This is especially true if you are from a business (non-technical background). So, when hiring a developer or development team for your on demand app, here are five tips you can remember: 

1. Maintain the right balance between the quality of development services and the cost that you are paying. 

2. Assess the technology stack. Your developer has to have experience with Android, iOS and Flutter, at least. 

3. Hire locally. If you are based in USA, we recommend outsourcing or collaborating a with a mobile app development company in Austin. Austin is a growing talent hub and you can get competitive rates without any language barriers or difference in time zone. 

4. Examine portfolio and social proof. Check your prospective developers’ previous projects and reviews they have received for the services. 

Wrapping Up…

Developing an on demand app surely looks like a bold business move, but it is an investment that pays for itself. Talking in terms of revenue, it is one of the most financially rewarding app domains after mobile games. So, if you have already decided to go ahead, work with a team that shares the same growth vision as you and is ready to put in the hours and efforts!