A business model is simply a method of doing
business. Online businesses have the same goal as any other business, which is
to make money. There are several different types of online business models. For
example, the ecommerce site makes money by selling products. Other online
models include blogs, which make money by running ads alongside the blog
entries, information sites, and sites which sell the services of a company or
individual. (Ward, n.d.) Although these companies are built as online
businesses, studies now indicate that mobile websites and mobile apps will be a
critical component for continued success of not only online businesses but also
other businesses as well.
According to recent studies, consumers use their
smartphones while making purchasing decisions. Smartphones are utilized by 50%
of consumers on the way to make a purchase, and used by 60% while in the store.
In addition, 39% of consumers’ decisions not to buy are influenced by smartphones.
If a business owner chooses to not recognize the importance of mobile websites
and/or mobile apps, their business will suffer. Mobile searches result in
follow-up actions, such as a purchase or a visit to the store, 74% of the time.
Also, if a consumer visits a company’s website and it is not mobile-friendly,
48% of these consumers feel as if the company doesn’t care about their business.
(Marino, 2015)
Studies also indicate that the majority of global
internet traffic will be from mobile devices rather than desktop computers
within the next five years. It is predicted that a majority of 57% of internet
traffic will be from mobile devices by the year 2018. Business owners of today should consider this
information and incorporate mobile marketing into their small business model.
(Clinch, 2014)
(Boyle, 2014)
Mobile apps may be beneficial for any business, but
especially for an online business. An online business depends solely upon their
website for revenue. A website that is not optimized for mobile usage will no
longer be a viable option for businesses.
Even websites that still look professional on a mobile device will not
function as well as a site designed for mobile use. For example, larger
buttons, increased spacing between elements, and quick load times are all
aspects of a mobile site that are not present in a traditional website.
(Torkildson, 2014)
Mobile marketing can be done through mobile websites
or mobile apps. When a company is determining which option to utilize, there
are several things to consider. They will need to evaluate their customer
demographics, the purpose of their mobile promotion, and their available
budget. To make an informed decision,
the company must also recognize the difference between each option. A mobile website is similar to any other site
except it is designed for small, mobile devices and touchscreens. The mobile
site can display text, content, data, and images.
On the other hand, mobile apps are applications that
are installed on the device. They may pull data from a website, or be designed
to function independently without an internet connection. Mobile apps provide
an opportunity for a business to interact with their customers in real-time. The
use of mobile apps by businesses continues to increase. Many are used to place
orders or generate loyalty cards or coupons. There are some that use the
consumer’s location to recommend restaurants or shops in the vicinity.
(Brindley, n.d.) Although their use is increasing, developing applications may
be expensive and time-consuming. Apps are best if the ultimate goal of the
business is to provide a function, such as bar code scanning, uploading
pictures, etc. Examples include Amazon’s price check app and the Ikea catalog
app. (Torkildson, 2014)
(Torkildson, 2014)
Although there are advantages to apps, it appears
that businesses interested in marketing may be better suited to a mobile website
which displays information in the most user-friendly format. Mobile websites are accessible instantly
without having to download an application. They are compatible on different
devices, rather than having to be developed for specific systems like apps.
Mobile sites are easy to find and can be updated quickly. Their sustainability
is definitely greater than apps, which some studies show have shelf-lives of
less than 30 days. (Summerfield, n.d.) Regardless of whether a company decides
to opt for a mobile website or an app, it is definitely in their best interest
to choose one of the two.
References
Boyle,
C. (2014, January 22). Why 2014 is 'tipping point' for Internet. CNBC. Retrieved from http://www.cnbc.com/id/101353869
Brindley,
R. (n.d.). 7 ways mobile apps will boost your business. Social Media Business Boosters. Accessed March 21, 2015 at http://www.socialmediabusinessboosters.com/7-ways-mobile-apps-will-boost-business/
Clinch,
M. (2014, June 11). Mobile web traffic to overtake PC by 2018: Study. CNBC. Retrieved from http://www.cnbc.com/id/101749845l
Marino,
A. (2015, February 26). New Infographic: The Importance of Mobile Marketing for
Small Business. PRNewswire. Retrieved
from http://www.prnewswire.com/news-releases/new-infographic-the-importance-of-mobile-marketing-for-small-business-300041680.html
Summerfield, J. (n.d.). Mobile Website vs. Mobile
App (Application): Which is Best for Your Organization? Human Service Solutions. Retrieved from http://hswsolutions.com/services/mobile-web-development/mobile-website-vs-apps/
Torkildson, A. (2014, January 22). Mobile App vs
Mobile Website – Which is right for your business? Entrepreneur 101. Retrieved from http://www.searchenginejournal.com/mobile-app-vs-mobile-website-right-business/85887/
Varshneya, R. (2013, September 9). 4 reasons your
business needs a mobile app. Entrepreneur.
Retrieved from http://www.entrepreneur.com/article/228240
Ward, S. (n.d.). 7 Online Business Models. About Money. Accessed March 21, 2015 at www.sbinfocanada.about.com
