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Some apps are not visible to all users, and some are not listed in the recommended list. They fail in tough competition, even before they launch. It takes courage and a lot of effort to launch a startup. Even though we all know this, failure is the beginning of success.
It can be challenging to offer users an unusual and exciting experience. You are on the right path if you can offer a unique and different value proposition to the market in a wide range. Suppose you add another similar app to the existing one. In that case, you're not offering your users anything unique, different, or new compared to the existing solution. Your chances of success in launching your App are slim if you don't focus on every aspect of the process, from idea generation to post-launch activities, to ensure that your mobile-app solution is successful.
Failure Rate Statistics of Failed Startups: Why Startups Fail
Entrepreneurship is a difficult pursuit. Startup success is often fleeting and challenging. More than 90% of startups fail.
Some industries have higher chances of success in the startup arena than others. According to research by the Statistics Brain Research Institute, 63% of startups within the information sector will fail within four years. This is not good news for startups in the mobile app sector or any other Silicon Valley small business.
However, the failure rate for real estate, finance, and insurance was 42% lower. These industries offer stability to startups in these sectors.
Defining failure
You can understand these categories by looking at what failure is. The dictionary defines failure as the failure to meet a set goal. Also, failure is not general. You can only make a project fail if it isn't related to what you are trying to accomplish.
There are two main types of failure in this sense. The company sets strategic goals, while the users set their expectations and guidelines for how the App should perform.
You can also fail if you don't have the right goals to support your company strategy. Mark Lister, vice president of experience engineering at Ness SES, a London design company, said that copying your competitor is a recipe for failure.
Why mobile apps fail
Any business's dynamics can be affected by mobile app solutions. Mobile apps downloaded from the app store are abandoned by around 80 to 90 percent after use. These are the main factors that contribute to the failure of mobile apps:
Failing to understand the market
A variety of factors can affect market dynamics. Apps that fail to consider the nuances are unlikely to attract attention from users. These aspects require attention:
- Market Needs
Mobile apps that fail to meet market demands are often due to a lack of knowledge. These two questions are relevant:
-Is the App able to solve a fundamental problem or need?
-Is the App addressing something new?
The App has a low chance of succeeding if both answers are negative. The App will not have a solid user base or add value to the brand unless it has a unique value proposition. In today's market, innovation is essential.
An example of an app that was created for an unneeded offering is Blippy. The App was eventually canceled due to a lack of research. It was also a data breach, which didn't help matters!
- Target Audience
Suppose you aren't Steve Jobs or can offer the world something they don't need, working in isolation, disconnected from your end-users. It isn't the best business model.
You are not on the right path to success if you don't do enough research about your target audience.
Your audience will ultimately decide your App's fate. However, it is essential to consider your peripheral audience when developing an app.
Imagine that you have an app for children aged 5-7 to learn English grammar rules. You should also consider grandparents, mothers, nannies, and other caregivers who may be helping your child to use the App. Your audience and its subsets should easily understand the App features.
Technical Inefficiency
This refers to software-related issues that may have been overlooked or not implemented to their best. A poor user experience slows down the App's performance, causes frequent crashes, and creates error-ridden experiences. Product inability to use due to outdated standards and methodology and sub-par coding. These inefficiencies can lead to technical inefficiencies.
- App Design
Your app design and user interfaces are crucial to user engagement. They will drive user experience and encourage more people to use your mobile application. Your app design should consider the requirements of the user interface, including how the information is presented, how the App works, and how users can use it. You ensured simplicity and ease of use in your app design. It doesn't have to be complicated, as it depends on your App's purpose and target users. Therefore, it should first focus on making the user interface simple and intuitive for everyone. Don't cut corners on the app design process. Do not use amateur talent to create products or outsource to companies that are inexperienced in product development. Your product development should include a focus on user experience and interface design. Your App must work on every device that is compatible with it. Your App's success depends on its optimization.
- Feature Imbalance
Apps are often abandoned after their first use due to insufficient features. Too many features can lead to frustration. Planning and understanding the details are essential to get the right balance. Vine, for example, was a popular video-sharing platform with almost 40 million subscribers. It failed, despite its popularity. The platform could not offer anything unique to its users except for shoot and post'. TikTok was able to fill the gap. It watched Vine's rise and fall, learned from its mistakes, and entered the market with many new features.
Users might be confused by too many features added to your app by the iOS app development company and choose to use an app more tailored to their needs. The same goes for insufficient features.
- Shaky Support for the Backend
This is especially important for e-commerce and gaming apps. Stability is only possible with solid backend support. Cloud technology is now at your fingertips, so it's time to embrace better and faster storage and support.
Several documented cases in which the apps could not handle high traffic spikes. This can affect customer loyalty and return visitors.
Design: Compliance
Many countries are introducing regulations and compliance to ensure user privacy and security. Businesses that fail to ensure privacy and security compliance from the beginning have had substantial legal problems as they grow and find that they can comply. Each country has its governing laws. It is crucial to ensure that your apps comply with these laws. Consult with legal professionals to ensure that your top app development company and employees comply with all laws.
Real Problems and Solutions
Before you begin developing your mobile App, you must focus on the problems your App solves. Do you have enough information about your idea? What problems are your App solving, who are your target users, and what benefits will they receive from your solution? How will you monetize your solutions to continue funding and growing the business? How do you plan to build your brand and your growth strategy? You should answer these critical questions as part of your idea formulation exercise. This will ensure that the App you design, build, and invest in will succeed. It is also important to release your App when there is a high demand and market conditions favor your solution.
Sub-par User Experience Design
App design must be intuitive and attractive and provide the necessary functions. A poor user experience can lead to a negative user experience. All aspects of user satisfaction must be taken into consideration.
Imagine an app designed to help visually impaired people but with no alarm features or home automation. These apps can limit your user experience rather than enhance it.
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Reason why Custom Mobile App Development is Gaining Traction and Proving to be an Attractive Option for Businesses
App creation is based on the ability to interact with users. Your App will not be used if it does not offer feedback or communication to the user. App user experience is crucial for any app, especially if it appeals to your target audience.
You can have a sub-par user experience because of the following:
- Complexity of Usage
App creators make the user experience complicated. Apple's simplicity of use was the main reason it gained so much attention. It is useless if a user cannot find the correct buttons within your App quickly.
Your audience must have easy access to all features. Your users don't have the time or patience to learn how to use your App, especially when there are other easier-to-use options. The App can fail if there are too many design details.
- Time Lapse
Time issues can be of three types that can bother users:
- Loading
- Register
- Performance
Technical issues shouldn't slow down the loading process of any app that wants to attract repeat visitors and audiences. Second, the registration process on the App must be quick and efficient. Third, the App should not have any delays in its performance. Any of these factors can lead to user frustration, which can result in a sub-optimal experience. App success is ensured by an interface that makes it easy for the users to use the App and adds value.
- Update failure
Your App is for your customers. It is possible to lose your customers if you don't recognize their opinions about your App. Feedback from users is valuable, as well as the ability to respond to it.
You may try to sell your App to customers as hard as possible, but you don't realize that your customers need to give feedback. Resolving customer issues is key to customer loyalty.
Apple quickly returned with 8.0.2 after removing iOS 8 from its servers. This is the best example. Apple listens to customers' problems and offers quick solutions. This is a great example of how the company wants to keep its reputation.
Wrong Marketing Strategy
Mobile app startups often fail because they have the wrong approach to marketing campaigns. Although investors spend thousands trying to create one great App, if you don't have a strategy for reaching your target audience, your efforts will be in vain.
Before you launch and evaluate competitors in your industry, it is important to do thorough research. Your App should be able to show the benefits of using it over the App of your competitor and how your App is superior.
Starbucks launched an app campaign encouraging people to upload photos of their Starbucks drinks on social media. Clicking on the photos would bring up a link that would allow them to download the App. Starbucks increased app downloads by incorporating user-generated content and gamification into their marketing campaign.
An easy marketing analysis can make your App a success. SEO, ASO, and other social marketing campaigns are great ways to get your App in front of people who are searching for it.
Your app startup's success depends on how well you market it. There is too much competition these days to launch an app startup without a solid marketing plan. Your marketing strategy should be in place long before your launch.
- What will you do to the market?
- Which market will you target?
- Which type of paid advertising would you like to participate in?
Think about your ideal user before you decide which marketing messages to put on which platforms.
You don't need to spend all your budget on exceptional development. Instead, you should be able to afford a marketing budget.
What are the most common problems? Take a look at the following:
- Marketing time is not enough
Many businesses make the mistake of marketing an app too soon after it has been created and launched. Apps can benefit from some hype prior to launch. Social media is a great tool for promoting your App. You could ask prospects to send you feedback and suggestions about what they would like to see in the App.
It's like Apple, build excitement for the launch of your application. This will create a market for your App, which will make it easier to reach your target audience. If you want the media to talk about the App, launch events are a good idea.
- Missing Details
Even though app developers provide their end of this process, small gaps in the marketing strategy can negatively impact the App. These are:
- Insufficient clarity in the description of the App
- You are missing out on the initial audience, even if they are free to sign-ups
- An uncertain listing of your brand values will help you define your niche
- Vague advertising and other strategies for marketing (including social media),
- Neglect the initial rating reviews
Misunderstanding Customers' Needs
Tom Eisenmann, Professor of Business Administration at Harvard Business School, attempted to answer the question in his 2021 book as well as an article from Harvard Business Review: Why do startups fail?
Eisenmann's research revealed that even though the business model was sound, team members were skilled and motivated, and there was plenty of venture capital funding. However, it was still hard to achieve entrepreneurial success.
He concluded that the lack of market demand was responsible for these startups' failure to succeed. For any business to succeed, product-market fit is crucial. One of the startups that he reviewed chose to forgo customer testing during the MVP validation stage.
These false starts are sometimes viewed as learning opportunities, but they can also spur early adopters and cause serious damage to your venture.
It is important to understand that product development should be customer-focused. This idea can help you and your team makes a significant difference in your startup journey.
Your App Competitors
It is important to concentrate on app design and development. However, it is equally important to deliver the best solution for your target audience. The famous saying "Keep your friends close, and your enemies near" is another great one. To create a unique value proposition, you need to spend a lot of time focusing on your customers.
Startup failures are often caused by ignoring competitors. Unless your startup is in a strong position, with few visible competitors and great customer traction there will always be others. You should spend part of your research time researching your competitors. Who are they? What is their product or marketing strategy? How are they challenging your product offerings? Learn from your competitors' mistakes and learn from their successes.
What keywords are used to rank high in search engines? What impact will new features have on your user base? You should keep an eye on changes in the market and competitors' strategies.
Gaps in Business Plan & Process
The App can be integrated into the overall business strategy of the company. To ensure that you are meeting your business goals, ask yourself these questions:
- Before you started planning your App, have you made a business plan?
- Before you launched the App, did you consider your "Plan B?"
- Is there an established timeline for app delivery?
- How can you protect yourself from cost overruns?
- What is your App's monetization strategy?
A business plan is similar to a vision board for an app. If the App does not show encouraging signs, you will need to identify the next practical step.
Yik-Yak was one example of an app that launched without a business plan and no understanding of the product market fit. The App was initially launched anonymously as a location-based messaging app for college students. However, it became problematic later. People began complaining about cyber threats, harassment, invasion of privacy, and other issues. It was not only a failure in terms of user numbers and functionality, but it also led to employees losing their jobs.
A lack of timelines can create more obstacles than people realize. Project delays can lead to problems in the costing, maintenance, and even team. Google Wave was an example of a social networking app that was launched in 2009 but wasn't fully developed. It lost out not only because it didn't plan ahead, but also because it did not meet the market expectations without a time plan.
You should also have a clear understanding of the App's monetization strategy before you launch your App. Your App's path toward profitability is important. Otherwise, it will be difficult to keep your App afloat. To monetize your App, you could use paid advertising and other features. Another important aspect is cost overruns. As you build your App, be mindful of your budget. Also, keep in mind that your App will require annual maintenance once it is live.
It pays to use the agile method to develop apps. This will help you identify issues and make the necessary iterations to ensure app success. Net Solutions believes in design thinking and agile methodology. This helps to understand the needs of users and plan how to meet them.
How can you make a mobile app successful?
It's easy to see why so many apps fail because of the mistakes made by app developers. It is important to not only create a mobile app that stands apart but also to plan well and be careful about what strategies you use when choosing the market for your App.
Marketing strategy is essential, especially when it comes to timing and target audience. It is also crucial to provide a rich user experience so that your App does not go the way of 80% to 90% of apps users don't want to use again.
Specifically:
- Make a vision board and back it up with great leadership
- Do your research on your target audience and their behavior patterns
- To find out the universal problem that you solve or the need gap that you fill, study the market
- Pay attention to the details of the coding
- User feedback is vital. So, go ahead and do a beta test
- Set a realistic time frame and stick to it.
- Strategize according to your business goals and use the right processes
- Effective pricing and marketing strategies are essential
- Make sure to train the support team.
- You should have the right balance of features available for users
- Harmonize the architecture of both the platform and the design of the App
- Do not skip the competition
- To test product-market fit, create an MVP (Minimum Viable Product).
These are the top mistakes that lead to startups failing.
One mistake in planning, designing, budgeting, or targeting an audience can cause you to create an app that is not effective at engaging users. These mistakes can be avoided and a strategy will be developed that will allow you to thrive and grow in the startup environment.
Although you might not be able to achieve the same success as Amazon and Microsoft, you can still develop a solid business plan that is based on a real value proposition that will keep your mobile App relevant for many years.
Conclusion
A unique idea is the key to delivering a mobile app that is successful. You should not duplicate the same idea as your competitors. You have a better chance of succeeding as a startup if you focus on design and features, with great marketing strategies and capital. You must also discuss your app project and pay more attention to the above factors with your mobile app development companies so that your mobile application doesn't lack any aspect.
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For young startups, it can be overwhelming to try and figure everything out on your own. Being unprepared for the market can make things worse, increasing your chances of failing. How can you deal with such situations? You have two options. One, you can try to push through these problems, focusing large amounts of your energy, time, and money, and sometimes losing opportunities. Two, you can seek out experts to help you with some or all of these challenges.
