As the economy continues to struggle, many companies have been forced to make major changes.

Bloomberg Markets Live recently conducted a survey that found that almost 48% of investors expect the U.S. to fall into recession in 2023. 21% of respondents expect the crisis to happen in 2024, while another 21% expect the recession to begin this year.

As we look forward to the year 2023, many companies are grappling with the decision of whether to put resources towards building mobile apps that can help them reach customers, streamline internal processes, and improve their bottom line.

Welcome to the latest edition of Z to A Pulse. We are now 4000+ subscribers strong!🥳 This month, we focus on the question of whether businesses should invest in mobile app development amid an economic recession, brought to you by Sharon Koshy, Marketing Strategist at Zuci Systems.

There are many factors to consider when making this decision. On the one hand, a recession can be a challenging time for businesses, as budgets are tight and uncertainty reigns. On the other hand, mobile apps can be a powerful tool for engaging customers and staying competitive in a crowded marketplace.

In this newsletter, we’ll explore the pros and cons of investing in mobile app development during a recession, take a closer look at the current economic landscape, examine the potential benefits of mobile apps, and provide some tips and best practices for making the most of your app development efforts.

Whether you’re a small business owner, a marketing manager, or a C-level executive, this newsletter is for you. By the time you’ve finished reading, you’ll have a better understanding of the factors to consider when deciding whether to invest in mobile app development in the coming years.

Tech Expert of the Month – Clarence Antony Fernando

I discussed the aforementioned topic extensively with Clarence, who heads a dynamic team of developers at Zuci and works as a Senior Delivery Manager to innovate, develop, and deliver numerous successful applications for our clients.

Sharon: When many companies are holding back their investment, how is investing in a mobile app going to put you in an advantageous position?

Clarence: Having a mobile app enables customers to make quick decisions while on the move. During a recession, customers are more mindful of their spending, and being able to connect with them can increase your chances of retaining and converting them. The accessibility of web applications is comparatively lower, especially when considering the prevalence of smartphones and faster internet. This presents a prime opportunity to reach customers and establish a strong presence.

Additionally, mobile apps provide an avenue to offer irresistible deals to customers. Even when they are not necessarily looking to purchase, customers are more likely to browse through your offerings through the convenience of a mobile app.

Sharon: Is there a change in consumer behavior owing to the shift in markets, and does this make it a good time to tap into such opportunities?

Clarence: During a recession, consumers tend to become more cautious about their spending habits and prioritize their expenses based on their immediate needs. This means that they may cut back on discretionary spendings, such as mobile data plans or entertainment subscriptions. As a business, it is important to understand these changes in consumer behavior and adapt your business model accordingly in order to retain customers and remain competitive.

One way to do this is by segmenting your market and offering different pricing tiers to cater to different segments of customers. This can help attract price-sensitive customers who may be looking for more affordable options during a recession. For example, Netflix created multiple price pockets for the Indian market, offering different plans at different price points based on the customer’s needs.

By adapting your business plan to the market scenario, you can retain your customers and build brand loyalty, even during a recession. Customers are more likely to stick with a brand that offers them value for their money and understands their changing needs. When the situation improves, customers’ brand loyalty and trust will keep them on the brand, and subconsciously they won’t mind putting in the extra dough.

Overall, adapting your business model to the current economic climate is essential for long-term success. By segmenting your market, offering flexible pricing options, and prioritizing customer needs, you can retain customers and build a strong brand that withstands economic downturns.

Sharon: Can recession be actually seen as an opportunity for business growth, and is a mobile app the right medium to keep your brand relevant?

Clarence: During tough times, such as a recession, people may find themselves facing financial difficulties and may need to take on additional jobs or work longer hours to make ends meet. However, the only constant with them is their smartphone.

As a business, you can take advantage of this by adapting your strategies to target mobile segments or moving towards a mobile-first approach. By doing so, you can ensure that your customers stay connected with your business even during tough times.

For instance, in the healthcare industry, people may hesitate to pay medical bills during a recession. However, you can offer preventative healthcare services through mobile applications to help your customers monitor their health and prevent illnesses before they occur.

The key to success during tough times is to find new opportunities and adapt to the shifting business landscape. By embracing mobile technology and targeting mobile segments, you can stay connected with your customers and build a strong foundation for the future.

Sharon: Developing a mobile app now – what does it mean for the business revenue of a company?

Clarence: With the rise of the hybrid market, businesses can now develop mobile apps for both Android and iOS platforms at once. This means that companies can save time and effort that would have been spent developing separate apps for each platform.

Furthermore, in times of economic uncertainty, it is important for businesses to retain their existing customers and attract new ones. One way to do this is by introducing a mobile app that adds value for the customer. This can be achieved by offering features such as mobile ordering, loyalty programs, and personalized recommendations, among others.

Sharon: Many market leaders are currently stressing the need to innovate and adapt now rather than suggesting staying low – thoughts?

Clarence: Businesses should not go idle during the recession. Instead, they should adapt quickly, and innovate more, so that they are prepared to scale when things pick up. Investing in innovation can lead to providing the same level of customer experience while reducing costs for the company. By combining AI, ChatGPT, and the latest technology, businesses can enhance the customer experience even further. Conversely, remaining stagnant can result in missed opportunities and potential losses.

If you’re in need of top-notch mobile application development services, our team of experts can provide you with a tailored approach that is focused on achieving your specific goals. Our specialists have extensive experience in the field and will work closely with you to understand your unique needs and requirements.

Question For You:

How can you make your product sticky from the start with your business applications?

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Thank you for reading! 😊