A tremendous amount of literature exists on assessing the value of an app launch from a developer’s point of view. Metrics such as estimated app revenue, engagement, competition, and user base are sacrosanct. Developers emphasize app valuation, particularly if the company wants to sell the app. But it’s also essential to identify critical areas of improvement and make informed business decisions.
But from a customer’s perspective, it’s an entirely different ballgame. Customers aren’t interested in how much a company can get from the sale of an app, and they are less concerned about the valuation methods companies use to determine earnings. In comparison, companies mull over discounted cash flows, acquisition and retention. A customer wants an app that does what it says. It has to be easy to use, serve a purpose, and make life easier.
Let’s take a look at some of the most effective ways to assess the utility value of an app:
Functionality & Features
Utility is a term that determines worth or value. It is measured in utils. The higher the utility value, the better. There is greater demand for high-utility products and services. It is all about satisfaction – more is better than less. Functionality and utility are closely linked.
Let’s take a quality restaurants discount app as a case in point. Assuming this app does what it says, it will have high utility value. In this case, it rewards patrons for food purchases, in-store grocery purchases, or restaurant purchases, and it offers peripheral benefits such as gasoline-related purchase rewards.
If an app’s features and benefits are delivered, it scores points accordingly. It’s also far more functional if applicable across a wide range rather than a slim range of options. The case of our restaurant discount app happens to be linked to 50,000 gas stations, restaurants, and grocery stores. This type of app provides tremendous satisfaction in terms of functionality and features.
Ease of Use and Accessibility
As stated above, every single customer appreciates an app that is intuitive, and easy to navigate. A user-friendly interface and easy-to-understand functionality are enough to satisfy the most discerning app user.
If too many technical abilities are needed to use the app, it loses utility value. Are the core features hidden within complex drop-down menus? How does the app work on different devices? Is it user-friendly for disabled individuals?
Performance & Reliability
The age-old aphorism – the proof of the pudding is in the eating – always holds true. No matter how good something looks on the outside, it must pass the litmus test in terms of performance and reliability. Value is deeply entrenched in performance and reliability.
If the app constantly crashes, fails to update, leaks information, or is regularly hacked and rendered obsolete, it has no value to a customer. Reliability is sacrosanct. For example, an app that is designed to provide directions from A to B has no value if it directs you the wrong way.
Customization and Personalization
These are terms used interchangeably in the tech space. Customization and personalization mean different things to different people, but it is generally held that personal preferences are important with app settings.
For example, being able to save your favorite food items in a grocery shopping app, or store your banking information, or share personal information in an app with somebody else are examples of customization features. Customers derive greater utility from customizable products and services. If it’s tailored to your needs, it has more value. Something as simple as saving your preferences is a good place to start.
Cost Versus Value
Here are two important metrics that customers use to determine utility value. Most apps customers download and install are free, but do they provide any value? Some apps are freemium apps – basic services are free but premium services cost money.
In any event, is there a subscription? Is there a one-time purchase? Is there a commission on purchases? If money changes hands, is it more valuable to use the app or not? The greater the value and the lower the cost, the higher the utility.
Privacy & Security
Many customers operating in the tech space are privacy and security-conscious individuals. We simply have to be in this day and age. We hear of multiple instances of online security threats, data breaches, ID theft, credit card fraud, and so forth. Check the credentials of the app provider – the company behind the app. Do they take all necessary precautions to secure your data and transactions taking place via the app?
The better the privacy and security features, the greater the value derived using the app. Look out for things like Privacy policies, KYC policies, AML policies, SSL encryption, firewall protection, maybe even a Play Store listing, etc. More peace of mind is better than less when it comes to privacy and security.
When all is said and done, customer-side utility value assessments of apps are all-encompassing. It’s about considering many different factors and determining how to best achieve the greatest satisfaction. Most apps don’t score perfect points in all departments; that’s expected. But if they safely serve their functional purpose, are reliable, and are easy to use, that’s a good start!
