The on-demand service delivery apps are gaining popularity across the globe by providing door-to-door service. The delivery apps are in demand over the last few years. Hence, both established and new entrants are focusing on developing and including mobile application into their business model. From shopping grocery items to booking a taxi ride and ordering food, mobile applications have made everything possible with just a few clicks on the smartphone. Moreover, the on-demand business model and developing on-demand app solution is being considered extremely profitable, despite challenges being faced by companies due to the rise in competition.
Hence, understanding the business opportunities offered by on-demand app development and how to build a successful product has become important for service providers and business owners. Below are some of the characteristics of the on-demand delivery marketplace.
- Quick delivery of products and services
- Prices are less as compared to products and services provided by traditional sellers
- Providing various options to make the payment
- Review and rating system
- Opportunity to work independently and on a part-time basis
Why Develop and Use the On-demand Delivery App?
The main goal of an on-demand app is to match demand and supply as fast as possible. The most important factors in an on-demand app are the convenience and speed for consumers. This helps to enhance the customer experience. Moreover, on-demand delivery apps offer a number of benefits such as it offers quick service, the process of placing an order is easy and convenient, it offers various features such as placing an order, making the payment, and tracking an order in real-time.
Transparency is also offered by on-demand apps as it provides an option for reviews and rating for customers. Review and rating feature can be used by customers to rate the service and provide a review as per the experience. The mobile app development companies are also focusing on the on-demand app development by including all the essential features. Customized mobile apps are also being developed by app developers for service providers to differentiate their app from that of the competitors. For service provider and the business, the on-demand app helps to make the delivery process efficient by eliminating the additional layer of middleman and connects service provider directly to the customer.
Below are the two most important factor for the success of the on-demand application.
Quick delivery at a cheaper rate is what customers are looking for. Hence, the service provider needs to ensure that the customer is served in a better way with the on-demand app. In order to gain competitive advantage through on-demand app solution, the business should be started at a local level with a small investment. At this stage, the on-demand app should be limited within a geographical area and providing it to a small group of people. This will give a service provider a chance to test the app and its acceptance in the market. The changes in the app can also be made depending on the feedback from the users.
Marketing activity of the app should start even before launching the app. Various channels can be used such as social media sites, messaging, etc. This helps to create excitement and curiosity among the people to know more about the app. The marketing activities should continue even after the launch of the app, such as referral program in order to attract new users.
Collaborating with retailers is also the best way to grow customer base. As the retailers already have a large group of customers. The service provider can enter into a partnership with small retailers and then partner with large retailers.
Retaining Existing Customer
It is very important for the service provider to retain existing customers. Therefore, offering better service and convenience is a must. However, winning the trust of the customer is also necessary to retain them for a long time. There are some strategies that can help the business to retain customers such as providing actionable rating system in which the customer is given a chance to provide the feedback about the service and product.
Adding review and rating option during the on-demand app development is important to make the customers believe that their opinion or feedback is valuable for the service provider and business. The business should also provide some special offers like discount coupons, gift vouchers, for a customer using the app on the regular basis.
The service provider must ensure quick response to the complaints and inquiries from the customer about the service or the product. This helps to retain customers and also win their trust, resulting in customer loyalty.