Should your online business have a mobile app?

The increase in mobile commerce has made user experience a make-or-break factor for many businesses. In fact, at least one-third of all retail ecommerce sales in the U.S. last year were made on a mobile device.¹

A mobile presence isn't just a bonus for small businesses anymore; it's a necessity. But does this mean your business needs a dedicated app, or will a mobile-optimized website do? 

It’s true that most people spend the majority of their online mobile time on apps. On average, mobile users in the U.S. are only on a web browser 13% of the time; the rest is on an app.² That may make having an app seem like a no-brainer, but things aren’t always what they seem.  

Does your business need an app?

When deciding whether or not your company needs an app, there are more than statistics to think about. For example, apps don’t show up in search results, so if your customers are finding you by doing a web search, an app may not make much of a difference to your sales. And remember that building and maintaining an app can be expensive and time consuming. If your business doesn’t have the bandwidth to support an app, you may want to stick with optimizing your website. Consumer research tells us it’s important to have a great user experience, whether it’s on a mobile website or an app. 
 
A survey by Apica Systems, a global application performance company, found that a bad digital experience can affect brand loyalty. Three in five people say they’re less loyal to a brand if they have a hard time using that company’s website or app, and 83% say they might even tell their friends about the bad experience.³ If your business relies on word-of-mouth, that could be a disaster.  

When to build an app for your site.

Instead of thinking app vs. web, look at it in terms of priority: Which benefits your business more – an app or an optimized mobile site? Before you make up your mind, here are five things to consider:  

1. Development and support. Building an app from scratch can be expensive to develop and maintain. At the very least, you’ll want your app to be available in both the Apple App Store and the Google Play Store, which requires approvals from Apple and Google. And don’t forget that you’ll still need to manage your website for new customers who haven’t downloaded your app yet.
2. Customer experience. Would an app contribute to how customers interact with your brand? An app gives you more control over how content is presented—images, text, audio, and video. Plus, an app can let customers tap, shake, and use their camera or GPS which can be a lot more fun than scrolling through a regular website.
3. Customer engagement. It’s hard to capture and keep peoples’ attention. If you decide to build an app, what would motivate your customers to download it? Be prepared to offer a discount or free delivery on their first in-app order.
4. Visibility. Most people will find you online and then look for you in an app store. Since search engines rank mobile-optimized websites higher in their search results, you’ll still need to maintain your mobile-friendly site once your app launches.
5. Access to customer data. Effective apps most often use data to help build and reward customer loyalty, giving businesses great insight into the preferences of their customers. This can be a great opportunity to connect with your customers on a more personal level, but tread carefully. Today’s consumers are wary of anything that seems too personalized, so it’s important to find the right balance.  

One payment solution for both.
 
Whether you choose to build an app or focus on your mobile site, PayPal can serve as your payment solution. PayPal simplifies the payment process, while helping to increase conversion rates. Businesses that offer PayPal One Touch^TM at checkout see up to 53%⁴ higher conversion rates on mobile devices. 

PayPal is a trusted name in online transactions. According to a recent survey by comScore, 49% of mobile buyers used PayPal to make a mobile purchase in the past six months.⁵ And 31% of surveyed consumers who used PayPal for their last purchase said they wouldn’t have made the purchase if PayPal wasn’t available as a payment option.⁵