UAE firms say mobile apps are now a ‘must’ to reach customers effectively

With COVID-19 speeding up the transition to digital services and contactless experiences, 84 percent of UAE firms feel mobile applications are now a “must” to stay relevant to their customers. This is according to the conclusions of the recent study “State of Mobile App Strategies in the Middle East,” which was commissioned by AppsFlyer and conducted by 451 Research, a division of S&P Global Market Intelligence. The study looked into changing consumer habits and how firms in the UAE are adapting their mobile app and marketing tactics in response.

  “Justifying return on investment is paramount in the present economic climate. So, while the intent to increase mobile marketing spending is encouraging, its impact will largely be decided by an organization’s ability to measure the return on investment. This may involve understanding what channels are driving app installs, where loyal customers are coming from, and how customers engage with their brand across the entire journey, regardless of channel,” said Saad.

“As Middle Eastern marketers look to measure the effectiveness of their mobile strategies, multi-touch mobile attribution complements existing marketing success metrics, providing businesses with a sum greater than the parts. Measurement use cases coupled with engagement and retention-centric metrics like customer lifetime value, monthly active users and customer retention rate can help marketers take it to the next level, optimizing acquisition, retention and the long-term profitability of their mobile marketing campaigns and initiatives.,” said Sheryl Kingstone Research Director, Customer Experience & Commerce at 451 Research, part of S&P Global Market Intelligence.

“For companies, some of the most sought-after real estate in the region is on customers’ smartphone screens. This of course, makes it a hotly contested arena. Just having an app is no longer sufficient, as for a business to have any hope of growing their mobile market share with loyal, long-term customers, they need to capture consumers’ attention. Mobile marketing is key to this objective, offering consumers the personalized experiences they love while enabling businesses to differentiate themselves from the pack,” said Samer Saad, Regional Manager, Middle East, AppsFlyer.

AppsFlyer’s analysis emphasized the expanding role of mobile applications as the main interface between consumers and regional businesses, based on a survey of 250 marketers from the UAE and Saudi Arabia. As a result, it’s no surprise that more than nine out of ten (91%) UAE businesses now provide mobile apps to their customers, with the survey citing “client acquisition” and “customer retention and loyalty” as the top two reasons for this significant concentration on mobile apps.

Businesses embracing mobile are already reaping major financial benefits, given the increased demand for digital services and the UAE’s position as the world’s eighth-largest cashless economy. According to the AppsFlyer report, 40 percent of UAE respondents estimate their company’s mobile-driven revenues have increased by at least 26 percent in the last year, with just over one-sixth (17%) claiming a rise of more than 50 percent.

As a result of increased customer demand for customer experiences, nearly all (96 percent) UAE businesses aim to boost their spending on mobile marketing. A quarter of companies (25%) have set aside a major increase in spending, which, if directed and handled appropriately, may give them a significant advantage over their competitors in terms of boosting their mobile app user base and revenues.