Top 10 Points to Consider When Planning the Budget for On-Demand Mobile App
- Mobile
- February 4, 2020
On-demand mobile apps connect the users to the service they want, quickly fulfilling their requirements. These can be developed for a number of market domains including food order, logistics, doctor-on-demand, tutoring services, beauty/salon, pet care, house cleaning, laundry, maintenance, taxi services and fitness services, to name a few.
Wondering why on demand apps are growing in popularity? Due to aspects such as their ability to meet the needs of the customers quickly, ease of use, interesting features, etc.
As per a report by the PwC, the market for on-demand mobile apps and websites is expected to reach a value of $335 billion by 2025!
As per a report by the PwC, the market for on-demand mobile apps and websites is expected to reach a value of $335 billion by 2025!
Structure of On-demand Mobile Apps
Unlike ecommerce or social networking apps, an on-demand mobile app offers two app experiences, one for the customer and the other for the service provider.
Not all the features in user apps will be present in the service provider app and vice versa.
The User App
As the name indicates, this interface is for the customers who use the service. It contains various features such as searching for products/services, tracking order, navigation, order history, pricing details, etc.
The Service Provider app
This app is for the service providers and contains options such as profile, active orders, customer support, pricing, etc.
Admin Panel
On-demand mobile apps also require an admin panel, which manages both the users and the service providers.
Are you planning to make the most of this trend and develop an on-demand mobile app? Do you want to provide innovative solutions to users, while getting a high return on investment? Then, one of the most important aspects to consider is planning the budget for on-demand mobile app.
Factors to Consider When Planning a Budget for an On-demand Mobile App
A well thought out plan ensures that you offer the solutions you want without going over the budget and without compromising on the features.
It helps you to provide the right service to the users without stretching too much. You would be able to avoid the unpleasant surprises that might come up before, during or after the app development.
To give you a clearer idea on this, I have compiled the top 10 points you need to consider while planning the budget for on-demand mobile apps. Read out these tips to steer clear of the budget risks that commonly plague on-demand mobile app development.
1. Set Clear Goals
Setting clear goals before the app development helps you achieve your key objectives while keeping the development costs in check. To set clear goals, you should ask yourself questions such as:
- Who are my target audience?
- Who are my competitors?
- What are the unique selling points of my app?
- What problem (s) does my app solve?
- How do I plan to generate revenue from the app?
- How do I stay relevant in the marketplace over the long-term?
Once you answer these questions, you will have a clear idea on aspects such as target audience, your competitors, your core features/functionalities, and how to achieve profit from the app. This in turn helps you to better plan your budget.
2. Finalize the Features
Features directly impact the cost of the on-demand mobile app. To that end, skipping on the necessary features could affect the app usability, while going overboard with features or including unnecessary features will make the app boring and complicated.
Striking the right balance is the key. It is important to finalize the features. To achieve this, you can start with the features that your app can do without. Then you can include the most important features, starting from the basic ones to the more complicated ones.
3. Single or Multiple Platform Development
Single platform mobile apps are those that support a single operating system such as iOS or Android. Mobile app developed in Single platform can be cost-effective and fast, they are limited to specific users.
Multiple platform mobile apps are designed to be compatible across multiple operating systems. Multiple platform apps cover a larger user base.
To better decide whether to choose native or cross-platform app development, determining your target audience is vital. Nowadays, many companies also develop an app for one platform first and then move to the other platform.
4. Android App or an iOS App
Are you confused about whether to develop an android app or an iOS app? Read the pros and cons below:
– Android app pros and cons
According to Statista, in 2019, Android had a share of 74.13% of the worldwide market while iOS had a 24.79% share. If you are planning to reach a global user base, an android app is preferable.
However, Android users spend less on apps. Also, the app development time for android is longer compared to iOS.
– iOS app pros and cons
iOS apps have lesser market share globally and the App store has stricter rules and a longer review process.
However, iOS users are willing to spend more on apps compared to Android users. iOS has lesser development time and more security. iOS is popular in the regions of Western Europe or North America.
5. Outsourcing or In-House App Development?
Should I outsource the development of my on-demand mobile app or should I develop it in-house?
There is no straight answer to it. When you are planning a budget for an on-demand app, you have to decide whether you want to develop it in-house or outsource the project. Both outsourcing and in-house development have their own pros and cons.
Based on your unique requirements, one option can be the best for you. While in-house development allows you to closely coordinate with the team, it gives you more freedom to explore and add more features.
It can be costly especially for startups and small businesses. In-house development involves salaries, rent, software licenses and more.
Outsourcing means you may not be able to monitor the app development closely but is highly economical. There are many dependable app development companies to which you can outsource the work to.
For finalizing an outsourcing partner, consider aspects such as their reviews, experience, and cost.
6. Choose the Right Outsourcing Pricing Model
If you are outsourcing the app development, you should choose between “hourly pricing” and “fixed pricing” model.
Hourly pricing might cost you higher but it lets you include additional features/modifications whenever you want.
Fixed pricing can be economical but your outsourcing firm would charge you extra for the additional features.
However, companies that offer fixed pricing understand that changes would be eventually required by the client after the initial development.
That’s why many of the companies are offering modifications at a minimal cost. You can discuss the different options offered by your outsourcing partner to get a clearer idea on this.
Read also: Fixed Cost or Hourly Rate: Which Pricing Model is Better for Your Project?
7. Consider the Maintenance Costs
For on-demand mobile apps, considering maintenance costs is very important. Why? It is estimated that about 20% of the initial cost of development will go towards the maintenance of an app.
For example, for most on-demand mobile apps, you might have to send mobile notifications to the users. To facilitate this, you might have to pay a fee to a third-party vendor.
8. Create a Product Requirements Document
A product requirements document (PRD) specifies all the requirements of the app as well as its features, functionalities and behavior. It outlines the complete app development process, the details of each step, and the expected outcome.
A PRD can help the developers to estimate the cost involved in each stage of the app development such as architecture, backend development, etc, and better plan the overall budget of the on-demand mobile app.
Read also: Get an Insight on Writing an Outstanding Mobile App Specification
9. Consider the Marketing Budget
Your app might be highly effective. However, without the right marketing, it may not grab the customers’ attention or get the downloads it deserves let alone achieve the estimated revenues.
That’s setting aside marketing budget is also important. Marketing budget allows the company to convey the benefits and usability of your app, which in turn leads to more downloads and revenues.
10. Consider the Cost for the Updates
Regular updates ensure that your app offers a better experience to the users. In the regular updates, you can incorporate new technological advancements into the app and add exciting new features to keep it relevant in the marketplace. Timely updates also help you to generate more revenue from the app.
Read also: How Would You Know When Your App Needs A Major Update
Keep the Budget in check!
If you are planning to build an on-demand mobile app, the above points will help you to know the factors that should be considered before building it. These will help you to cut costs and invest the money wisely.
On-demand apps are forecasted to be expected to draw more revenues for the companies as customer look for instant gratification, quick service and superior experience.
Keeping the app development budget in control gives you peace of mind throughout the process. Remember the above points to keep the budget in check!
FAQs About On-Demand Services App
The on-demand service app works as a mediator between a customer and business owners of various sectors. An on-demand mobile app allows users to order various services and deliver them in a few minutes. For example, booking a ride through Uber.
There are many reasons a business should have on-demand services app like unlimited business opportunities, offers a competitive edge, ideal for all kinds of businesses, it can help in attracting investors, etc.
The cost of developing an on-demand services app depends on the features and functionality that your mobile app required for a particular business. Moreover, it also depends on the development model selected by the business.
