For companies today, their customers are increasingly demanding and prefer to engage with brands digitally. This creates a problem for companies as the range of digital communication channels is expanding exponentially.

Whether via FB Messenger, WhatsApp for business, social media posts, live chat, video calls or SMS, the number of ways that customers prefer to engage with companies is extensive. The great challenge for a business is not only to be accessible in all communication channels but also to deliver an integrated and consistent level of service to customers.

Omni-channel customer service allows a company to integrate all communication methods to project a unified brand experience so customers can seamlessly switch between digital channels whilst still enjoying an excellent level of service throughout.

Building the capability to provide omni-channel customer support will both enhance a company’s image and credibility as it serves customers in both convenient and effective ways.

How Can You Meet the Demands of Your Customers Using Omni-Channel Customer Service?

The most successful companies can deliver consistent communication to their customers across all the brand’s different communication channels, avoiding any situations where customers repeat their enquiries. Customers get frustrated at having to repeat questions to different customer service agents and it is detrimental to the brand.

If you want to emulate companies that provide excellent communication, there are omni-channel best practice tips that you should consider. We will now cover what we consider the most important areas.

Customers Now Demand Excellent Mobile Services

People both buy and search on mobile, it is logical that they also expect a company to offer full customer support across mobile. Studies have found that up to half of customers are less likely to deal with a company if they have a poor mobile experience.

Recurring customer complaints about their mobile interaction with a company revolve around company websites not being optimised for mobile. Complaints include navigation difficulty, the display not appearing correctly, slow load times and search results that are not helpful.

Solutions

Your company can provide excellent customer service through mobile by:

• Clearly displaying a customer service link or button on the company app or mobile website
• All customer service links on your app or mobile website must be a single-tap experience only
• Customers should be able to contact you without having to leave the home page with either live chat or dial-in support
• All documentation, self-support videos and FAQs must be mobile friendly

Provide Live Chat Assistance for Customers

A popular type of customer service engagement online is through live chat. Convenience and low hold times are two of the main reasons that customers like live chat. The ability to help a customer rapidly and in a convenient manner reduces customer irritation; statistics have shown that over half of website visitors are more likely to revisit a website that has live chat capability.

Some live chat software also allows for the escalation of web chat conversations to both voice and video calls. It is a useful feature when a conversation becomes more complex and a chat conversation clearly proving slower to resolve than transferring to a video call.

As well as customer service, live chat can also improve company sales as agents are able to run through, identify or upsell a product or service.

Solutions

• Install robust live chat software such as Apple Business Chat on both your website and mobile app providing omni channel customer support across any device
• It is essential that any script within the live chat does not sound overly robotic
• Customer documentation and help guides should be easily accessible for customer service agents so they can send them over to customers during a live chat.
• A CRM should be used to allow an agent access to a specific customer’s information during live chat to provide any overview ahead of the live chat

Enable Self-Service Via FAQs and Documentation

An increasing number of customers are looking to self-service to be able to resolve issues themselves without the need to use a customer support team.

Customers that are prepared to self-serve are valuable for a business as they take the least amount of resources. If the self-serve documentation and videos are excellent customers will be happy to use them meaning self-service becomes the new customer service.

If customers are unable to find a solution to their problem, having high quality documentation available still serves to enhance the customer experience.

Solutions

To facilitate the self-service experience, it is good practice to ensure:

• That documentation and FAQ landing pages are well designed and easy to use
• All FAQs should be not only comprehensive but also well organised and simple to navigate
• The content should be high quality which can be achieved through employing professional copywriters

Track Customer Interactions Across All Channels

Every click, tap, or swipe by a customer on a web browser or mobile app can be tracked. It provides companies with a broad insight of difficulties a customer may have engaging with the company.

If, for example, a customer is requesting documentation through one channel, they would not be pleased if they were asked to request the documentation again through another channel.

Solutions

There are ways to track customer interactions across all your digital channels to ensure excellent customer service:

• Make use of an email marketing tool which tracks both opens and clicks when an email has been delivered. It can provide useful data such as gauging when to follow up an email with a customer call
• It is vital to use a CRM system to both track and update all customer interactions with your company across all customer channels
• Domain-side tracking should be set up to allow IP addresses and other customer data to be gathered to provide valuable information about your customers

Improve Social Media Response Times

Customer expectations can be high when it comes to social media. For companies, it can be a great customer service tool with high customer satisfaction rates if they can provide fast responses and turn-around times to client requests.

Statistics indicate that increasing speed of response results in a positive experience for the customer. In fact, slow responses to social media posts on Twitter and Facebook are regarded even more negatively than if a company does not reply at all.

Solutions

• It is vital to reply to customer queries on social media within an hour, even if you cannot initially offer a resolution to a request; it is good to provide reassurance to customers
• For an even more seamless customer service, integrating social media into live chat is beneficial
• Include keyword tracking on all your social media pages and ensure that customer comments will always be spotted

Set up an email automation workflow

In customer service, email is still considered a relevant form of communication as it can resolve many customer queries and is easy to manage. CRM systems today make email management simple as they provide email automation workflows that can greatly cut down on the work of customer service agents.

Solutions

Best practice techniques to use email automation workflows to provide excellent customer service include:

• Resolve everyday issues through fully automated email meaning customer service agents only need to deal with non-standard problems
• Consider allowing your customers to interact with your automated emails rather than having them sent out with no reply status
• Continuously monitor your email automation workflows and continually optimise them when necessary, rather than set and forget

Create an internal reward system

In an extensive customer service system, it can be difficult to keep on top of customer service quality and keep it at a high standard. Offering internal rewards for customer service agents can be a useful way to maintain great customer service.

Solutions

• All customer service interactions should be recorded and then periodically reviewed. Software that allows customers to provide feedback can provide a platform to monitor agent performance
• Decide what you want your customer service agents to achieve and build a rewards system around the objectives
• An award system does not always have to be monetary. Customer service agents could receive an award, discount cards or a complementary meal.

SMS is still a versatile communication tool

Although an older form of customer engagement, texting is still an extremely versatile customer service platform for many sectors and is used anywhere from making restaurant bookings to sending out appointment reminders.

Research has shown that 90% of all received text messages are read within the first 3 minutes of receipt and a total of 99% of all texts are read. As a customer service channel, it is millennials and Gen-Z that use text as a means of engagement whilst shunning telephone calls and voice mail.

As well as being a fast means of communication, SMS is also a unique marketing channel due to its lack of dependence on an internet connection means its reach is far wider than other digital channels.

It all points to SMS as still being a central channel for omni-channel customer communication.

Co-browsing is an increasingly important customer service tool

Both live chat and phone support are good starting places for providing initial customer support. However, with both these communication methods, agents are still asking you questions like whether you are on the website and what you are able to see.

Co-browsing gives customer service agents the ability to support customers when customers can co-browse on a device with the agent and point out the issues they are having.

The ability for customer service agents to co-browse is essential in many customer support scenarios. Agents are better able to help customers when they can show agents what is happening on their device.

Summary

How your business undertakes customer service can affect the success of the brand and bottom line revenue. It is not enough to just build the capability to handle digital communication from customers across the digital spectrum. By also successfully employing omni-channel customer service you will boost the performance of your company.

Are you considering employing a software development company to build a custom software solution or an app for your business?

If you have never previously outsourced software development how can you be sure that a developer will be able to deliver a software product that meets all your business needs?

In this short guide, we will highlight the technical due diligence that you need to undertake to choose the right software development company to increase the chance of your software solution being of success.

Look for a Company with Business Expertise

Even if a software company excels in programming, it does not mean that it has the strong sense of business needed to understand the needs of your firm.

For you, as a business, it is vital to engage a software company that can develop custom software which integrates into your business, allowing your firm to reach its proposed business goals.

Furthermore, if you can select a software developer with solid business skills and experience in developing solutions in a similar sector to your own it already minimises the risk of engaging a company poorly qualified to meet your needs.

Check the Track Record

Undertake investigative work on a software development company and see if they have experience building the type of software solution or app that you require. If they have a portfolio of projects on their website, you should spend time browsing through them focusing on the following areas:

• Do completed projects include well-known products or brands?
• Does the developer specifically refer to the successful deployments they are most proud of?
• If there are case studies, spend time looking through them.
• Direct feedback is vital so pay attention to client testimonials.
• What are the designs of the products – Can you see them being a good match for your company?

If there is not much information available or you would like to learn more, there are two further avenues for you:

Ask for client referrals

You can ask the software developer for references. Good developers will be pleased to provide direct access to past clients so that you can confirm with them the developer’s ability and their satisfaction with the development process and the finished product.

By undertaking background research will help ensure that the developer you choose will have the skills to deliver your project successfully.

Ask for an info-pack

If you can see one on the developer’s website, consider downloading an info-pack. Or if not available as a download, ask for them to send you it to you. It will provide a more comprehensive overview of their offering.

Reject the Cheapest Quotes

When looking for a software development company, the cheapest quote is highly unlikely to be the best. Carefully consider these four points:

• A low quote for custom software development may indicate that you do not have ownership of the source code even though you have paid for the product development.
• In a cheap quote, quality may be an issue; the developer may not thoroughly test your software product; the software may be challenging to maintain, or the coding may be poorly written. It may result in paying less at the start of the project but could see further costs after deployment for fixes or even having to re-write the entire software.
• Low quotes may indicate that the developer has a lack of experience developing in your business field. If they do not know how to do something, it may result in a software solution that does not align close enough to your business needs.
• Communication from a developer offering a low quote may be lacking, and there may be a lack of transparency in the whole development process

As part of your ongoing technical due diligence when looking for a software development company, rather than focusing on cost, it is better to consider trust and integrity. These are essential attributes for a software developer and will minimise having rough edges to deal with once a product is complete.

Consider a Flexible Pricing Model

Do not consider a fixed pricing model unless you have previous experience working with software developers on projects. Software companies will often add on at least 25% to cover the risk of taking on a project, especially if they are unsure of the exact scope of the project.

A time and material-based pricing model is better. It means that you can continuously adapt to changing business needs. You do not need to renegotiate a contract if a feature was not included in the scope. The scope adjusts on the T + M pricing model.

The priorities are also aligned with the client as the development team wants to deliver the highest quality product. Under the fixed-price model, the software company will tend to maximise its margin, building the software solution at the lowest cost.

Select an Agile Development Firm

It is essential to select a developer that uses the Agile development methodology. The agile model is a framework which provides a consistent flow of work from the developer to the client throughout the project.

The best companies employ Agile methodology, knowing that only through full client co-operation is it possible to deliver a software solution that will fully meet the expectations and needs of the client.

The regular product workflow is in the form of a series of sprints throughout the project, which typically lasts two weeks. It allows the client to provide ongoing feedback leading to informed decisions about the end-user.

Sprints also speed up the development process as developers are under pressure to deliver results every two weeks to meet the targets laid out at the beginning of the sprint.

Ensure there is a High Level of Communication

Communication is vital when working with a software developer, and you should experience high-level communication right from the start. Interaction with a robust software company should feel like an extension of your firm; they will be accessible daily for all your needs and through a shared communication channel like Slack you have access to the entirety of the project-related communication.

A proficient developer should always be looking to set up review meetings to continually enhance the development process and make sure they understand your ongoing expectations throughout the project.

A good software development company should have a dedicated project manager who serves as a link between the client and the development team. As the vital point of contact, they will be handling any problems that you may have. Larger development companies will also have a business analyst as part of the development team whose job is to dedicate time to the project scope to ensure that the software will deliver on your business goals.

Finally, make sure that the developer is using planning and progress monitoring tools such as Trello. Such tools make sure everyone is kept up to date on developments throughout every stage of project development.

Robust Testing

Even a software development company working at the highest level will struggle to build entirely bug-free software. Robust testing is a crucial part of the development process before a product deploys.

Testing allows a developer to identify errors quickly and make changes to the code to eliminate them. By testing throughout development not only ensures that your software is finished on schedule but reduces the risk of bugs appearing following deployment.

Quality Assurance

You should also ask if your chosen software company employs Quality Assurance. The QA team not only catches and describes bugs but also makes sure all new features and stories are told in an easily understandable way. They help the project move forward smoothly, keeping both the development team and client confident with progress.

Only Consider Developers Employing Strict Security Measures

One of the key elements of software development is security, not only during the development phase of your project but also once your software has deployed.

A proficient Developer will be able to tell you:

• How your Intellectual Property (IP) will be both managed and secured.
• The type of security measures that will be in place during communication and development
• Whether their development practices are fully GDPR compliant
• If access to every environment and platform is protected
• How passwords will be stored and secured

Future Maintenance and Support

Once a product has been deployed, you need to make sure that the developer behind the software will provide post-deployment maintenance. As the developers of your software, they are likely to know your product inside out; rather than employing the services of another developer to maintain and support the software.

Conclusion

The success of your application or software relates directly to the company that is developing it. Choosing the right software development company at the outset is crucial to achieving business goals and ensuring your end users get a glitch-free, highly usable piece of technology. Furthermore, when you are looking to engage a software development company, you should consider the relationship not only as part of your current but also your future needs.

Are you considering having an app developed? Whether the intention is to support the growth of your business by generating revenue or by providing another resource for your customer base, this short guide will focus on what you need to know before developing an app.

By undertaking the correct steps at the right time will help you maximise your app’s chance of success.

Read on to learn more.

Research your target market

Even with a solid idea, before developing an app for your business, it is crucial first to understand the market, any underlying trends, and customer demand. Market research is a vital first step before any technological consideration takes place, and a market analysis report can provide insights allowing you to optimise your app from the very beginning. Market insights include:

• What is the popularity of similar apps?
• Who are your competitors?
• What strategies do they employ?
• What is their USP?
• Do you know their strengths and weaknesses?
• Analyse competitor’s reviews to understand their customer likes, dislikes, preferences, and future demands.

Proper research will allow you to avoid your competitor’s mistakes, employ strategies which work, and define a problem and how to solve it. It will help to prepare for the development of a robust app right from the beginning.

Identify your target audience

Identifying the correct audience for your app is crucial. The success of the app depends on a well-targeted set of users. Getting answers to tightly focused questions will reduce targeting the wrong groups of people and minimise wasted resources on unneeded app features. It is at this point that it is essential to identify:

• What does your app do?
• What problem will your app solve?
• Who is the audience that would benefit from the app?
• What does your target audience crave?
• How will the application help you achieve your business targets?
• How often will your audience use the app?

By understanding your target audience will help guide how you develop an app to tightly align to their needs.

Employ the correct development methodology

The development methodology is an essential technical decision to make early on before starting the app development process. Selecting between a native, web or hybrid app will impact on budgets, time frames and available expertise. It will also impact on the way you market your app and whether you will operate on multi-platforms such as the App and Play store.

Native Apps

Installed through an app store like Google Play, a native app dedicates to a single platform like Android or IOS. A native mobile application installed directly on a tablet or smartphone can often work offline without an internet connection.

Web Apps

A web app is a website designed to look like and function like a native app. Typically written with HTML code, it is browser operated, and like any website, you navigate to a URL. A web app needs an internet connection to work.

Hybrid Apps

A hybrid app is a part web and part native app. It is a web browser which is embedded in an app and is a wrapper for a web page. It allows a business to get onto an app store and allows cross-platform development.

Once an app type is decided upon, it will become much easier to budget for and plan the entire app development project.

App monetisation considerations

An app can be employed in a variety of roles for your business. An app may serve to generate revenue directly; alternatively, it may be another resource for your customer base or indirectly serve other parts of your business’s sales funnel. If you intend to make money directly from your app, you need to consider different app monetisation models which include:

• In-app purchases: The model uses the app to sell physical or digital products like a mobile commerce sales channel
• Freemium apps: An app which is free to download but some features are locked and only accessible through purchase
• Paid apps: The user purchases the application from the app store in order to use it
• In-app ads: The simplest model as there is no cost barrier for the user
• Subscriptions: A model that provides a recurring revenue stream
• Sponsorships: Partnering with specific advertisers and brands, this model becomes possible with a substantial user base

It is vital to fully understand the different monetisation models and move your app development to the option that best aligns with your business.

Formulate an action plan

Ahead of building an app, it is crucial to understand the whole application development process, from engaging an app developer to learning about the different development stages and associated time frames. Without knowing the app development process, it will be challenging to accurately announce your app launch date and assessing when to create the necessary buzz around it.

An app can take anywhere from 3 months to a year or more to develop and deploy. Starting a dialogue with app developers as early as possible is essential to map out the entire project efficiently and create timelines across the various stages.

Choosing an app developer

It is vital to identify whether an app development company is a right fit to undertake your app project. Five considerations to keep in mind ahead of any engagement include the following:

1. Look at current and past client reviews and feedback, whether on a review platform like Clutch or contacting the client directly. It will help you understand the quality of service provided by a developer.
2. Make sure the app development company adheres to strict security measures to make sure the app idea and concept remains confidential ahead of launch.
3. Effective delivery management is vital to keep a client up to date with the progress of the development cycle. Any development company worth their salt must have first-class communication throughout the development journey.
4. App development companies must adhere to the latest quality assurance and testing processes to ensure that your application is error-free once it deploys.
5. App design is an essential factor for the app's success. Consider engaging a company that has excellent UI and UX designers who can deliver a first-class app to your clients.

Understand the phases of app development

There are five different app development stages that you should know about ahead of the development process:

Discovery phase

It is essential to make sure that both you and the app developer fully understand and agree on the scope before the development of the application takes place. It allows exploration of the project feasibility, understanding how system components will work and connect, identifying a minimum viable product (MVP) and mapping out the delivery timescale by way of a series of sprints.

Design phase

Ahead of the development phase where coding starts, it is vital to understand how an app looks and works. It is done in the design phase, where the user experience design (UX) and visual design, which incorporates the user interface (UI) all come together to create a clickable prototype.

Development phase

The results of the design phase are used by the development team to begin the development process. It includes an alpha and beta phase, including light testing and design and user experience updates where client feedback may see changes.

Testing and deployment phase

Extensive testing is vital to ensure glitches and bugs are kept to a minimum when your application launches. Testing falls under five main areas which are compatibility, functional testing, performance, usability and security testing. The deployment or launch of the app follows testing.

App maintenance phase

Following deployment, the maintenance of the app on an ongoing basis is essential to make sure that it is always up to date and compatible with upgrades on the underlying operating system, server updates and checked for security bugs.

Know your Budget

Investment, as well as knowledge and strategy, are essential to developing a mobile app successfully. Knowing your budget and allocating it properly throughout each stage of the application development process is vital. App development, maintenance and scoping all require a part of your budget and by knowing the available financial resources early on will prevent delays further on down the line.

The cost to build an app can start from £10,000 for a basic app rising to a starting price of £75,000 for a more complicated application. A simple formula to calculate development costs is to multiply the hourly rate that an app development company charges by the total development time.

Costs are broken down by phase; for example, the design phase for a native integration can be as much as £20,000 with the cost of the ongoing app maintenance phase following launch being 10% to 20% of the app development cost.

For further information on app costs, read our detailed blog post on how much to develop an app in the UK

Develop your marketing strategy

Now that you understand the timeline involved with the app development process, it is possible to build your marketing strategy and plan your pre-launch. Any plan will depend on analysing your industry and potential user base, only then can you formulate an idea on how to promote it. Take the following into consideration:

• What are the channels where your target audience mostly hang out?
• What is the type of content they like the most, written or video content?
• Outreach – Who are the leading influencers in your industry, and how can you get them to put your app in front of their audiences?
• How will your corporate branding set you apart from other mobile apps? Make sure it is consistent over all the different platforms.

Putting the strategy in place for a warm launch will make it easier to promote your app when the launch comes.

Summary

Once you have covered off all the preparatory steps in the process of developing an app, you will be in a strong position to move forward knowing you have undertaken the due diligence required to give your application the best chance of a successful launch.

Are you thinking of developing a SaaS product for your existing business? Are you considering starting up a new UK business based around SaaS?

We have researched the benefits of the SaaS business model.

Read on to find out if you were fully aware of all the benefits of software as a service (SaaS).

The SaaS business model defined

SaaS is an abbreviation for software as a service, and a SaaS business model defines as the sale of cloud-based software through a subscription paid monthly or annually. The end-user or customer accesses a SaaS product or service via a desktop, a mobile app, or a web app.

SaaS solutions can serve customers (B2C) or businesses (B2B). SaaS businesses that solve problems in the B2B markets can grow quickly and predictably whereas B2C SaaS can be harder to create something of value as consumers expect apps to be low cost or free.

The benefits of the software as a service business model

1. Recurring revenue

Instead of a reliance on one-off transactions or upfront fees, SaaS builds around a smaller subscription-based transaction recurring on a monthly or annual basis. Recurring revenue is what is so effective for SaaS providers. As your product becomes integral to the operations of your customers, they are more likely to remain loyal and retain subscriptions for the long term.

It leads to consistent monthly revenue from subscriptions; once you acquire a new user for your software, you do not have to worry about one-off sales every month which is the case for the traditional licensed software model.

2. Multiple revenue streams

Subscription fees are not the only way to generate revenue for a SaaS Company. Once a SaaS business has prioritised selling a core subscription plan and understands which marketing channels provide a favourable user acquisition cost, it can explore other revenue streams:

• Additional fees for further data processing or increased storage
• Further fees for API access
• An additional charge for any custom integrations
• Additional services inside a SaaS platform including book-keeping, design work or other services
• Additional services for hands-on implementation, usually at the enterprise level.

3. Predictability and measurability

SaaS software enables the collection of essential data about users, including what they do in an app, how they use the service and when they cancel a service. The data facilitates ongoing product optimisation, including packaging and pricing, to assist with customer retention.

The SaaS software as a service model allows for the effective use of metrics to measure growth and performance. Metrics are useful for sales strategies, product development and process changes. Essential analytics for SaaS companies include:

Churn rate

The churn rate shows the number of customers that unsubscribe or leave during a specific period and will tell you about the level of customer satisfaction. If it is continually rising, it is a negative sign for your business.

Customer Lifetime Value CLV

A calculation of the average revenue you receive from a customer during the period they have subscribed to your software.

Monthly recurring revenue MRR

A measurement of the expected revenue per month which helps to understand the month on month variations in income.

The average revenue per account ARPA

It is a metric which shows how revenue derives from a single client typically on a monthly, quarterly, or yearly basis.

4. Lower costs

Cost-effectiveness is a key advantage of the SaaS business model. The SaaS model only needs to take care of supporting the SaaS product on different web browsers and applications. It contrasts to traditional software installation, which requires supporting multiple devices, operating systems, and local device issues.

For SaaS customers, it allows an individual end user or small and medium businesses to use software that previously would be out of reach due to the high cost of a licence.

5. Ease of use for customers

With SaaS, there is no complicated software to install and figure out. Unlike the traditional model, in SaaS, the software is already installed and configured. A user can log in using their online account credentials. They are provided with instant onboarding and can start using an application straight away.

The SaaS business model also makes it straightforward to offer free trials which are essential, as try before you buy reduces risk for the buyer. By having the first-hand experience, whether a product is suitable allows a user to become a paying customer by signing up for a paid plan.

6. Network effects

It is highly likely that you will not hear about good SaaS applications from a sales call; it is more likely to be through word of mouth. The network effect is a crucial goal for a SaaS business. Satisfied customers will recommend a SaaS product to others, and the product starts to experience organic growth. It can, in some circumstances, lead to a product going viral.

7. Accessibility

SaaS allows users to access a service anytime on any device from any location if there is an internet connection. It gives user independence and mobility when working with the software. It contrasts with licensed software with a license often limited to a specific number of devices with limited use on a different computer.

10. Low barrier to entry

The SaaS business model has removed barriers to entry for software, allowing startups to enter a wide range of niches. Anyone who has substantial knowledge of a niche or sector can launch a SaaS company. With the widespread availability of software developers in the UK capable of building a SaaS product, the technical constraints of developing a SaaS business falls.

11. Flexible licence arrangements

The SaaS model of subscription-based software works well for the needs of the customer. It provides flexible monthly subscription periods allowing a customer to sign up for as long as they need. There is no requirement for a user to install software or purchase a licence. Microsoft, with its Office product, is an example of a business that has moved from a licensing model to a subscription model.

12. Automated updates

Being hosted in the cloud means software updates for SaaS only need to be implemented from the service provider end. A customer will always have the most up to date version with the latest features from periodic incremental updates typically built into the subscription price.

It contrasts to licensed software installed on a computer that requires the customer to make sure updates are complete.

As a SaaS service is managed from one infrastructure, new releases and fixes can be pushed out quickly with shorter maintenance windows resulting in shorter downtime. Rapid responsiveness and product improvements, in turn, help improve customer loyalty.

13. Cloud Deployment

SaaS cloud deployment refers to the delivery and installation of software as a service. It contrasts with the traditional on-premise software deployment and associated issues with installation and configuration and servers.

A SaaS business provides membership to the end-user by giving them access to a SaaS product via website account credentials. The end-user only needs internet connectivity and a web browser to access the SaaS service.

14. Internet piracy

A SaaS business does not sell a license for software use; it instead uses a subscription model. The cloud becomes a platform for data which restricts access to subscribers of the software. By controlling software and keeping it in the cloud helps reduced piracy.

Conclusion

SaaS, as a business model, has come to be loved by customers and tech investors alike. For customers, access to software, previously only available with expensive one-off licenses can now be accessed when needed with a subscription services model. For service providers recurring revenue allows further development of the product.

Are you considering starting a SaaS business?

Did you know that half of SaaS companies never test their pricing model or undertake research to evaluate how much their target market is willing to pay?

Furthermore, many companies launch a SaaS product without knowing about SaaS pricing models that may have a high degree of relevance to their product and a proven track record of success.

This article will explain all the SaaS pricing models available, the advantages and disadvantages of each model and highlight companies that have had success using each one.

1. User-based pricing

Overview

A user-based pricing model is where a SaaS company charges business subscribers for every user accessing the service. For every additional staff member given access to the software, an extra user subscription charges to the account.

Benefits

It is a straightforward model to understand and often gives users complete access to a product meaning no further upsells to access more features. For a business customer, it is also simple to calculate the price depending on the number of users they need to add to their account.

For the provider, it is easy to manage:

1. The price is fixed so there are no nasty surprises for the customer to be unhappy about.
2. Revenue will grow as a client increases their user base, especially if they started with low pricing at the beginning.

Disadvantages

There is a risk that clients will simply share logins to reduce the subscription costs of adding more users. It, therefore, may not reflect the value of the product across your client base. It means the number of users needs to align closely with the use of the product.

Real business example: Calendly

2. Tier-based pricing

Overview

Widely used by SaaS providers, the tier-based model works where the number of permitted users increase in bands. Typically, between two and four pricing tiers are used for business customers to choose under this model. One tier, for example, might be for up to 5 users. It is similar to feature-based pricing, which we cover later on, but instead of each tier reflecting different plan features, it reflects the number of users.

Benefits

Multiple tiers allow the targeting of different customer types leading to a broader target market and increasing revenue potential.

It leads to upsell opportunities where a SaaS provider attracts clients to the lowest tier and works to move them up onto higher tier subscriptions.

Disadvantages

Tiers have the potential to be confusing to customers unless they are well defined. Every tier adds to the complexity of a decision for a customer. It is considered good practice to represent each tier with an appropriate title to help with clarity for the business customer.

Real business example: Hubspot

3. Flat-Rate Pricing

Overview

With the flat-rate pricing model, there is one package with one price regardless of how many users use the product. The client has access to all the features and agrees the number of users that will use the account at the outset. It is the simplest way to sell a product and can consist of a free initial trial.

Benefits

It is a basic SaaS pricing strategy for clients to understand and so easier to sell. Marketing efforts are also simplified as the focus is on one plan, unlike multiple pricing plans under the tiered model. It is also simple to calculate revenues with flat-rate pricing.

Disadvantages

Customers will have different opinions on whether the price represents good or poor value for money. For some, it may represent value with all features being relevant to their business. Other clients may see a single feature as being valuable to their business but cannot justify the pricing based on one feature.

For the SaaS provider, the flat-rate pricing option makes it difficult to extract the maximum value from all the clients subscribed to the service.

Real business example: Carthook

4. Usage-Based Pricing

Overview

A pricing strategy that charges customers based on their usage of a service. The more a customer uses the product, the more they are charged. A charge per action is a common way to invoice under usage-based pricing.

Benefits

It is a model where the pricing scales at the same time as the client. It can also be a useful approach to attract different types of customers with varying levels of tolerance to pricing. A sensitive user may use a product sparingly, while another business will get value out of the product with heavy use generating a lot of revenue for the SaaS provider.

Disadvantages

It can be challenging for prospective customers to calculate how much they will be paying under a usage-based pricing structure. For existing clients, it can induce a mindset, where knowing they will be charged more do not use the product as much as they might under a different pricing model.

For a provider, future revenue predictions are unclear as they have no control over a customer’s use of a product which leads to erratic revenue.

Real business example: Stripe

5. Feature-based pricing

Overview

Under this pricing model, the SaaS provider clearly defines each pricing tier with the features offered in each tier. Users, therefore, only pay for the features that they use. It is similar to tiered pricing but rather than charging for every user it charges for every feature.

Benefits

Under feature-based pricing, there is a strong incentive for customers to upgrade to the next tier to access further features. Some features may necessitate great resources to deliver. Per-feature pricing allows a SaaS company to put these features into a top-tier package.

Disadvantages

It can be challenging to get the features in each tier to match what users want. The risk is key features can either end up in overpriced tiers or conversely lie in the lowest cost pricing packages. The model can also leave resentment with some users who feel that despite paying to use a product, the provider denies some features.

Real business example: Leadpages

6. Pay per active user

Overview

Pay per active user is a pricing structure where a provider charges a business customer for every active user. It is a more advanced form of the per-user model where a customer can sign up as many users as they want. The difference here is, there is a charge only for users that were active during that cycle.

Benefits

Businesses could potentially sign up front hundreds of employees to use a SaaS service without certainty that they would all use the software yet receive an invoice for it. Per-active user eliminates this problem with only active users being charged and so no money wasted on non-active users of the software.

Disadvantages

This model is most useful for large B2B enterprise customers. Small and Medium-sized enterprises (SMB) do not see the same size of benefits of this model as companies with hundreds or thousands of staff potentially using software.

The best example of this pricing model is Slack

7. Freemium

Overview

Freemium is the provision of a free service which is supplemented by additional paid-for upgrades. The freemium pricing model usually comes as part of a tiered SaaS pricing model where paid tiers are augmented by a basic free to use tier. The model works as a lead generator where users then upgrade to a paid version of the service.

Benefits

The freemium model allows customers to experience a SaaS service very quickly and in some cases, can lead to mass adoption. Customer satisfaction comes from having free access to a SaaS product and together with a robust referral program can serve as a powerful marketing channel.

Disadvantages

The number of potential customers that upgrade from a free plan to a paid service is typically meagre. It can be the case that customers opting for the free service would have paid but opted for the free package instead. Free users also can take up customer support time without paying anything back.

A real example of this pricing strategy is Mailchimp

8. Credit-Based Pricing

Overview

Credit-based pricing is a SaaS pricing structure for products that do not require continuous usage. Credits are obtained through either one-time purchases or a subscription and then redeemed by using the SaaS service. Credit-based pricing differs from a usage-based model as the user pays upfront before using a service as opposed to afterwards.

Benefits

A SaaS company can provide customers with a way to use a service and not worry when they will be using it. The purchase of credits through subscription models offer recurring revenue for the SaaS company.

Disadvantages

Refunds are an issue with the credit-based pricing SaaS pricing model. If a user has a credit surplus or they are not using the product regularly, they are likely to ask for a refund.

A real example of this pricing strategy is Audible

Less Common Pricing Models for SaaS

There exist further pricing models that are less commonly used as part of a SaaS pricing strategies by companies.

9. Hybrid Pricing

Different SaaS pricing models can be combined to a certain extent to create a custom product pricing model. Drift is an example of a company that uses hybrid pricing.

10. Per-storage pricing

Per-storage pricing is a simplified pricing model for SaaS companies that offer cloud storage. Tiered pricing is available based on the amount of storage a customer requires with a certain amount of storage free before you have to pay. Dropbox uses a per storage pricing model.

11. Free with Ad support

Free with ad support is a model where the core product offering is free to use and funds through advertisers paying to access your customer base. Website builder, Wix is a company that uses the free with ad support SaaS model pricing.

Summary

To successfully employ a SaaS pricing model that will work with your SaaS business model is not just about identifying an appropriate model. We have provided you with an insight into SaaS models, but it will also necessitate further research, testing and ongoing evaluation on your part.

Does your firm operate in a competitive sector? Do you want to differentiate yourself from the competition with your own USP? Would you like to have the tools in place to scale up rapidly?

If you have the time and the budget to invest for the long-term, then bespoke software is an option. This in-depth article looks through 13 advantages and disadvantages of developing bespoke software.

The article aims to provide all the information that you need to make an informed decision when considering a software option for your business.

What Are Examples of Custom Software?

Bespoke software is employed widely across various industry segments. Ranging from real estate and financial services to telecoms. Essential uses of a custom solution include the following categories:

• Analytics & Reporting Suites
• Financial & Payment Platforms
• Customer Engagement & Self-Service
• Web Portals & Mobile Apps (customers and internal-facing)
• Property Management & IOT
• Task & Process Automation Solutions

At a Glance: 13 Benefits and Drawbacks of Tailored Software

BENEFITS                                      DRAWBACKS

Complete control                              Time + experience is needed
Usability                                     Initial start-up costs
Scalability                                   All stakeholders need to agree
Efficiencies                                  No product to trial
Competitive advantage and ROI                 Off the shelf advantages
Increased security
Product ownership
Support & maintenance

The Advantages of Going Bespoke in Depth

Full Control

Purchasing bespoke software means you decide how a solution will work and how it will look. A software development company has business analysts who will work to understand your business requirements and work with their in-house development team to ensure what you get matches precisely what you need.

The agile approach to working is a work method that encourages continuous dialogue between developer and client with workflows carried out in short bursts called sprints. It allows your ongoing feedback throughout the development process on areas such as functionality. If your requirements need to change, the developers will be able to adjust them.

As the solution owner, you have full control over further development, including functional priorities and integrations with other technologies via APIs. Unlike ready-made solutions, you will never risk the loss of a business-critical function or the installation of a feature that is not compatible with your firm’s data.

Usability

An advantage of bespoke software is it does not have unnecessary functions. By offering only the features needed and nothing else, it can improve the workflow of an enterprise. Off the shelf products tend to be overloaded with functionality which can reduce the system's speed, making it harder to use at the same time.

Fewer unnecessary functions will help speed up training for employees working with the software as it shortens learning time. Working closely with developers from the start will further ensure staff have few problems interacting with bespoke software as you progressively adapt it to work best for your business.

With a tailored offering, as mentioned, you only get the features that your business requires. It means you are paying just for these features, not for more and not for less. With ready-made, if there are too few features, you may need to pay to adapt a product to your business needs and objectives.

A further advantage of bespoke is the integration of existing systems. If your business was previously operating with multiple commercial applications, developers could look to integrate them into one custom solution without losing vital data.

Scalability for your business

As your business develops, tailored software can be adapted to ever-changing requirements and grow with your firm. It is a scalable solution. For example, if your firm expands into another market segment, bespoke software can be further upgraded to meet the challenge. Off-the-shelf solutions may not cope with business change, and you have little or no input in the way the system develops over time.

The beauty of bespoke is the ability to quickly 'scale-up' the number of users without slowing down your solution's speed. As part of the development work plan, your developer will test and ensure it can work just as rapidly with 10,000 users as it does with 1,000 users. In tandem with scaling up, a long-term benefit is a fact that there is no need to pay more for licence fees as would be the case with a ready-made offering,

You are the owner of the intellectual property, which means you do not need to seek permission to make changes in your application. You can have it upgraded and extended to include more features your firm may need while evolving. In the case of commercial products, there would be a need to buy another package.

Efficiencies

Deciding to implement a bespoke solution for your business forces you to focus on what your firm needs and the direction it is going in. As you engage a developer, you may discover and eliminate further inefficiencies in your enterprise.

Bespoke not only offers efficiency, but thanks to an agile approach, it develops efficiently. The agile method with a continuous workflow between the developer, and the client, gives the flexibility to adjust any requirements during the development process or a solution upgrade following launch.

The use of custom software can improve the efficiency of how employees work. For example, the introduction of communication tools can encourage collaborative working, bringing staff closer and boosting their overall productivity.

Competitive advantage and return on investment

By using off the shelf, both you and your competitors could be using the same product.

A tailored solution that fits the requirements and needs of your business means that you are the only one that can benefit from your developed software. It may allow you to differentiate yourself with enhanced and unique products and services that will help your clients.

Further competitive advantage may come from innovations in the product for internal use, including increased efficiency, and improved employee loyalty.

Even though development requires a significant upfront investment, the return can often occur straight away. As well as the competitive edge of having a better product than your competitors, the savings in staff time and resources from a well-aligned system can rapidly pay for themselves.

Your custom application also becomes an integral part of your corporation’s unique IP, further adding value to the firm. A professional brand identity with a few personalised features developed uniquely for your firm using the software can help win new customers. Details are essential in achieving success.

Better security

Off the shelf solutions have a significant security weakness which will mean you can never feel entirely secure. Hackers will be familiar with the source code of ready-made offerings and can take advantage of any security weakness.

Tailored software reduces the chance of a hacking attack. Your application may have additional security measures requiring more effort and time to breach it. Importantly though, there is less incentive to hack a bespoke application explicitly designed for one company. Off the shelf products that give access to the data of all businesses using the tool is much more attractive. If you can hack one, you can potentially access many more.

For companies handling the data of European citizens, privacy by design has become a central pillar of GDPR. Under GDPR, it is preferable if an enterprise can ensure that security is a priority at the design stage of its development project rather than a later addition. If your enterprise handles sensitive data and you can incorporate the latest security as the default for your solution, it is an advantage.

Product ownership

As the owner of the software, the intellectual property belongs to you. As you are the legal owner, you are not a slave to a specific supplier who may change their terms and conditions.

If you are not satisfied with the service level of the developer of your software project, there is nothing to stop you finding another company to look after your product. As you own the software code, you can carry out upgrades and fixes with the developer of your choice.

Product ownership enables you to save money. With ready-made products, there is a licence fee to be paid for each user. As more users access a solution, this may become expensive. With a custom-built solution, you can decide how many staff members access the software.

Maintenance and support

A key advantage of bespoke is the maintenance package. Your software developer undertakes to fix any glitch and monitor it once it deploys, ensuring that it will continue to work well. With commercial offerings, your firm is one of many using the application, and unfortunately, there is one team of developers who can fix the glitch.

A development company is legally required to provide support for your software for as long as needed. It protects beyond that available to the user of a ready-made product. If the provider of an off the shelf product goes bankrupt or no longer wants to maintain the product, there will be unexpected costs to pay.

The Disadvantages of Bespoke Software

Time and experience

Bespoke software disadvantages include development time. Depending on the complexity of the product, it can take many months or even more than a year. As custom software is built from the ground up, there are no shortcuts like an off the shelf offering. You will need to wait for your developers to create it. If replacing your existing system is time-urgent, then implementing a custom solution will not fulfil this need.

Benefiting from a bespoke system that aligns to business requirements, it is essential to know your operations intimately and communicate any analysis to the developer. For those unaware of the needs of their business or unwilling to undertake research, customised solutions may not be appropriate. Off-the-shelf, in many cases, is preferable. Versatile functionality is kinder to mistakes as all you do is purchase it and keep working.

Initial costs

High up-front costs are the main downside associated with a custom build. Deciding and rolling out the scope, design and development can be expensive. The return on investment is likely to be only seen in the medium to long term unless there are immediately obvious benefits.

For a business, the cheaper cost of purchasing a commercial product and user licenses needs to weigh up carefully, and in many cases may be a better option.

Stakeholders

To get stakeholders to agree on a custom tool can be challenging. They may have their specific ideas of what they expect from a product. The significant up-front financial commitment and time to research specific requirements may be problematic. It all may lead to a decision to proceed with an off the shelf decision.

No Products to trial or reviews

A custom software solution is created from scratch. There is no way to trial it, and there are no product reviews as it is yet to be in existence.

All you can do is trust your developer’s ability to construct well-designed, robust, and stable software. It is crucial to research a prospective company through reviews and if possible, recommendations. If feasible, consider testing other applications that the company has developed.

Off the shelf software alternatives could fulfil your needs.

A ready-made offering is for the mass market. It could be the case that the application has all the features and specifications you need and additional functionalities you had not considered that could help your employees. Smaller companies mainly may find the needs of the firm are met with the advantages of off the shelf software.

Final Thoughts and Takeaway

We have outlined 13 essential advantages and disadvantages associated with bespoke software.

Cost, time, and features are crucial influences on deciding whether bespoke or off the shelf is best for you. As a takeaway, consider the following:

• Do you have the budget to undertake a custom-built solution, employing the services of a development company?
• Do you have the time to extensively research the merits of a bespoke offering for your business? To fully benefit, it must fully match your business needs.
• Can off the shelf meet the functionality that your business requires or is bespoke a necessity?

Finally, if you feel a tailored approach is for you but want to test before committing to a full-blown application, you can also request a prototype or develop a minimum viable product (MVP). A prototype is your idea as a functional and visual model to test. Prototyping and MVPs allow trialling and user feedback without a huge upfront financial commitment.

FAQs

Where is bespoke software used?

Bespoke or 'custom' software is dedicated to a single client and aims to solve a specific set of needs for their business. It will tailor to the client's workflow and allow the client to maximise their brand identity and USP. The client will typically have full control over the product and own the IP.

Why is tailored software expensive?

Bespoke software development requires the services of a developer to implement. From creating a prototype of your idea to a fully developed, ready to launch product takes time. Every stage of development has an associated cost relating to the number of hours to complete. These can quickly add up.
Ready-made software has a lower price. You do not pay to build anything but instead, need a license fee to use it.

What is meant by bespoke software?

Bespoke means ‘made to measure’ rather than a ‘standard’ option. In the IT industry, it describes custom-built or tailor-made software designed for a specific need. It differs to off the shelf software, which is ‘one size fits all’ available to any business in return for a license fee.

What is a custom approach to software development?

Unlike ready-made for the masses, bespoke programs involve developer hand-coding for a specific client for a particular business purpose. During development, a custom approach takes account of a customer's business processes, selects the best tools and metrics and leaves open the possibility to implement future changes

What is a bespoke system?

In Information Technology, bespoke software is a product that has been custom-built for a specific requirement. Examples of a system include web portals, client relationship management (CRM) and enterprise resource planning systems (ERP).

If you are considering employing an app development company here in the UK to build a mobile app, the process may seem daunting. To understand the actual cost involved to develop an app in the UK, it is also essential to understand every stage of the development process.

Read this simple to understand, UK focused guide, which explains how much time and money is needed to use an app developer to build a mobile application.

We have provided a useful FAQ section at the end of this guide that further focuses on cost-related questions about app development.

UK App Development – Pricing Insights

The UK has a reputation for having excellent app development companies. Quality app developers mean higher costs and the UK is third only behind the USA and Australia in hourly rates. With 8,000, agencies it in-fact boasts a fifth of all Europe’s App developers with half of the agencies based in London and the South East. US developers also have offices in the UK.

UK hourly rates

The hourly rate and the total development time together make up the total cost of an app development project. In the UK, the size of a development company often correlates to the chargeable hourly rate, and now, in 2020, the average prices for mobile app development are as follows:

• Small development agencies: £50 - £100 per hour
• Medium-sized developers: £100 - £150 per hour
• Large-sized development companies: £150 and above

What is the cost to build an app in the UK?

The cost to build an app using a UK developer starts from £10,000 for a basic app. For a complex app, development typically begins at £75,000 and depending on the complexity of the features; the cost can rise significantly to a million pounds and above.

What is the development time for an app?

The development time typically ranges from three to nine months, but sometimes this is longer for a project with sophisticated additional features.

One question comes to mind. On what does this marked price difference in the development of mobile apps depend? It is essential to understand each step of the app development process.

The Costs and Phases of The App Development Journey

There are five stages in the development of a mobile application. They are scope, design, development, test + deployment and maintenance. Each stage has an associated cost.

The Scoping Phase

The scoping or “discovery” stage is crucial in making sure both the client and developer both concur on the scope of the project before building a mobile application. It helps reduce future disputes arising from different levels of expectation.

This phase allows the developer to:

• Specify the client requirements
• Examine the feasibility of the project including financial constraints
• Undertake market research of the client’s industry and competitors, including apps
• Understand how system components will work and how they connect
• Identify the minimum viable product (MVP)
• Map out the project timeline broken down into a series of sprints

The discovery stage is when you will first come across the agile sprint method.

The agile sprint model is a framework that allows for a consistent product workflow from the developer to the client throughout a project. Sprints help build out precise components to test with real people with feedback leading to informed decisions about the end-user. Sprints typically last two weeks, and the scoping stage will have one.

Scoping Stage Costs and Quotes

According to a Clutch survey of app developers, the average cost of the discovery stage is less than £4,000 according to 50% of 68 developers in the study. A further 20% of those surveyed said the scoping step was between £4,000 and £8,000. For our analysis, survey prices are converted into pounds, as this is a UK focused guide.

Many UK developers will only give a quote for an app development project after the completion of scoping. They believe this is the most accurate way to provide the app developer costs for a project once they understand what is involved.

A project quote will typically be in two forms:

• A Fixed Bid: A fixed bid is a set price and a set timeline. This pricing structure works well for smaller projects or projects with a clearly defined scope
• Price Range Bid: Based on time and materials, this pricing structure works well for large projects with more ambiguous scopes and employs an hourly rate. Not knowing a set, final cost upfront, can worry some clients.

Scoping phase time: Up to 4 weeks

The Design Phase

Before coding begins in the development phase, it is crucial to understand how the app will look and work. It is done in the design phase using an easy to understand process from the user journey right through to the visual design.

The user journey, wireframing and clickable prototype creation are the stages that create the user experience (UX) design.

Creating the visual design is the last stage of the design process and incorporates user interface (UI) and motion design.

Cost Considerations – Understanding Types of Apps and Features

When you engage a mobile app developer, you need to be very clear on the choice of app. The cost of developing a mobile solution is directly related to the app creation process.
The creation and deployment of an app can be done on both a native mobile platform like IOS or Android as well as a web browser.

Web Apps

A web app is not an application as such. It is a website designed to function and look like a native app. It is browser operated and typically written using HTML code. Like accessing any web page, you navigate to a specific URL which gives the option to install the app on the screen home page. A web application needs internet connectivity.

Native Apps

With installation directly on a smartphone, a native app works in many cases without an internet connection. Installed through an app store, like Google Play, native apps are specific for one platform, like IOS or Android.

Targeting both Android and IOS means separate applications need to be built. By using the smartphone processor, they are fast and can also access hardware, incorporate gestures and use a phone’s notification system.

Hybrid Apps

Part native and part web app, hybrid apps also sit in a store like Google Play’s Android app store. They also use HTML rendered in a web browser. The difference is the web browser embeds in the app.
A hybrid app is a wrapper for a web page. It allows companies to get onto an app store and permits cross-platform development. Reusing the same HTML code on different operating systems reduces costs.

App Type Costs

In pure cost terms, web apps are cheaper to develop than native mobile apps. Native apps need to be made for numerous operating systems (like IOS and android) adding additional steps to the development process. Web applications are built a little more closely to a website and require less time and cost, but look very similar to a mobile app.

App Type                    Cost Level                    Time to Develop

Native                      Low/Medium                    90+ Days

Web                         Low/Medium                    30 to 60 Days

Hybrid                      Low/Medium                    30 to 60 Days

App Features and Costs

There are any number of features that can build on to an app. The complexity and number of these features have a significant impact on developer costs.

Basic features which include user logins, push notifications and reviews and ratings cost less. Higher cost features include web portals, native integration and payment systems.

Design phase time: 6 to 12 weeks

 App Feature    	       Complexity	           Cost GBP £
 
 Web Portal	               High	                   Up to £20,000
 
 Native Integration	       High	                   Up to £20,000
 
 Ratings and Reviews	       Low	                   Up to £10,000
 
 Push Notifications	       Low	                   Up to £10,000

Development Phase

The result of the design phase is wireframes, clickable prototypes and UI designs used by development teams to start the development process. The mobile app development process includes:

The Alpha Phase, where just the core functionality of the app develops, but without testing. In this phase, the app can barely function and has a lot of bugs and glitches that need fixing.

The Beta Phase involves incorporating all the major features and functions of the app and making it go through a round of light testing. Even though most of the bugs resolve, a few remain. However, after this stage, the app can be selectively released to a few external users for testing purposes.

Design and User Experience (UX) Updates
Such updates typically result from user feedback. They could include user requests to add new buttons or perhaps updating the apps’ design to keep up with market trends.

Development phase time: 6 to 12 weeks

Testing and Deployment Phase

Thorough testing is critical to the quality of mobile apps. An in-depth testing stage ensures users face minimal issues such as glitches or lags. After building an app, testing determines if it's ready to be launched. Before deployment, testing falls under five key areas:

Compatibility Testing

• App designers need to get as much compatibility out of their apps to contend with the proliferation of devices and software with varying degrees of capability. Examples include devices, web browsers, operating systems and devices.

Functional Testing

• An app agency will formulate a testing plan. They will list all the essential features and paths that need testing before a release. They will run through the test plan, testing the application to identify any problems. Beta testers may also receive an invitation to report their findings.

Performance Testing

• It is the measurement of average response times of an app and how long actions and pages take to load for a user. Load tests and stress tests also take place to measure responsiveness. Load tests create virtual users to simulate the expected load of the app. Stress tests involve overwhelming the app while it is in use.

Usability Testing

• This type of testing gives essential insight into the usability of the interface, user behaviour, and if the app functionality meets user expectations. Testing involves users asked to perform a series of set tasks with the scale of user involvement correlating to the size of the app.

Security Testing

• The reality is multiple vulnerabilities in the User Interface (UI) can be a result of lousy cryptography selection in the code. For watertight security, it is vital to test the app security at the most basic level.

Deployment

• Once thorough development and testing is complete, your app is ready for deployment, essentially making it available to be used by its clients.

Testing Costs

Clutch surveyed 102 mobile app agencies to set out the cost of the test and deployment phase. The prices are less than £3,000 at the low end to more than £17,000. A breakdown of results is in the table below.

Testing and deployment phase time: 2 weeks

Test and Deployment Costs in GBP £	     % Application Developers Surveyed

< 4,000	                                     32%

4,000 – 8,000	                             31%

8,000 – 12,000	                             14%

12,000 – 20,000 	                     12%

> 20,000	                             11%

The App Maintenance Phase

A necessary cost of the development process is the ongoing maintenance of your mobile application post-launch. Even if there is no ambition to scale up or add new features, app maintenance is essential.

What are the essential types of app maintenance?

Updates on Operating Systems

An app developer will need to continually ensure that an app is always up to date and compatible with upgrades on the underlying operating system. For example, for IOS and Android Apps, this will mean keeping on top of regular release updates.

Ongoing system maintenance

System maintenance for apps is no different to the support of other software. Maintenance work is carried out every three months on average and is essential work.

Server updates and maintenance

For networks to performs efficiently, servers need to be continuously updated. Reviewing a server’s performance and investigating for security threats is an ongoing requirement.

Ongoing Security

The app needs protection from cyber threats. Your app developer will periodically check for security bugs. With the advent of GDPR, ongoing tasks will also include ensuring the app’s privacy policy is compliant with any new rules on data protection.

App Maintenance Costs

Expect to pay between 10% and 20% per year for app maintenance costs of the original price of the development.
Factors affecting the cost of your app maintenance include:

• The codebase that the app sits on
• Whether the app is hybrid or native
• The complexity of the features

The Importance of Research

Ahead of engaging an app developer, it is essential to read up on the app development process and understand the associated costs. Analyse case studies, watch videos, read tutorials and speak to experts!

The app development process is complex and potentially confusing. You are more likely to maximise your investment with a developer if you are knowledgeable.

FAQs About UK App Development Costs and Processes

As a UK Business, why use a UK App Developer?

It brings into question the debate of whether to outsource or employ an app developer locally within the UK.

What you should consider is your company’s level of involvement around how to develop an app. Employing a UK Developer if you run a UK company means face to face meetings and greater accountability for the developer to meet deadlines.

The main argument for employing an online developer based in another jurisdiction usually comes down to cost. If your company is happy to provide a brief with little involvement and doesn’t want to pay app developers UK prices, then outsourcing is a consideration.

The Pros of employing a UK based developer:

• Face to face meetings
• Straightforward communication channels
• Deep involvement in the project
• The same time-zone
• A higher degree of reliability than an online hire

The cons of employing a locally based developer:

• Typically higher hourly rates
• Looking overseas gives access to a broader talent pool

In 2020, how much does it cost to build an app: UK Developer Considerations?

Consider the size of the app development company. A starting point is to consider its development cost to see if the company is a good fit for your business.
As an hourly rate, small developers charge £50 to £100, medium, £100 to £150 and large, upwards of £150. How does your project match up to the size of the company and their hourly rate? Consider the following:

• Can the company meet your requirements?
• Can the project be completed within your budget?
• Can the mobile application be completed within your deadline?
• What is their minimum project size?
• Have they already developed an application in your industry or sector?
• How long will it take them to develop apps?
• Can you afford the development cost?

What are the different roles within a team of mobile app developers?

Depending on the size of the project at hand, the following team members may participate to varying degrees

• The Project Manager: Responsible for preventing misconduct and miscommunication in the project team as well as meeting the deadlines.
• The Developer: The writer of the code within the app, ensuring integration with data sources as well as fixing glitches
• The Back-end developer: Responsible for making sure the app, server and database all communicate correctly together and the application works properly
• The Designer: In charge of how the application interface lays out and the user experience. Also responsible for various optimisation tasks
• The Tester: A vital job making sure all parts of the application work, responsible for design and code quality and that the completed product meets all the project requirements

How long does it take to complete a mobile application?

Depending on the complexity of the project, an application can take from three to nine months to build out.

Every phase of the development process takes varying time to complete. The lengthiest parts of the project tend to be the following:

• Scoping: Up to 4 weeks
• Design: 6 to 12 weeks
• Development: 6 to 12 weeks
• Testing and deployment: 2 weeks

Ensure that your developer gives a clear indication of which phases of the project will take the most amount of time so that you do not have any disappointment further down the line.