Super Apps are coming, whether we like it or not
Super apps are the evolution of the single service application into a one-stop-shop, serving all technological needs in one tile on your smartphone or tablet. While potentially incorporating anything, super apps generally have a focus on combining communication, commerce, and financial services. The second and third items on this list are why tech companies are so interested in pursuing super apps, the revenue potential is enormous.
With a model laid down by the likes of WeChat and Alipay in Asia, US and European tech companies see an opportunity to aggregate different services for users and become ubiquitous. Add to this the stagnation of the customer acquisition model of growth for companies like Facebook and PayPal in developed markets and the desire to keep customers in-app, doing more for longer becomes clear.
The problem with super apps
Current attempts at super apps in the US and Europe work for companies, not for customers.
Diversifying the offer and generating new streams of income is a huge incentive for companies so making their app work harder makes sense. However, the same diversification which will benefit the bottom line raises issues for end users – 3 issues in particular:
1) Super apps contradict existing user behaviour. Accessing and using multiple apps, especially for financial management, has become common practice. Recent research from fintech company Plaid found that 86% of people in Britain manage their money on their smart devices using 2.8 apps on average. The proliferation of fintech products and services means this is expected to increase to 3.5 apps in the next six months (source: Plaid and The Harris Poll). Having all your finances in one place may appeal initially, but the benefits are going to have to be significant to cause an adaptation of existing behaviours.
2) Super apps slow you down. Overladen with features, super apps can take longer to open and perform functions more slowly. It’s surprising how sensitive users can be to load times with research by Akamai suggesting that for every additional second an app takes to load, conversion declines by 7%. But it’s not just the time taken to load, incorporating multiple features in one interface adds complexity and can create a whole new user pain point – navigating to the thing you actually opened the app to do. This is not an insurmountable challenge, the genius of app developers in designing clean interfaces is unquestionable, but a challenge nonetheless.
3) Super apps risk diluting brand purpose. Beyond practical considerations, offering more features, products and services under the same umbrella makes the proposition opaque. Apps are used because they do one thing well, trying to do everything risks diluting that clear purpose. Who can honestly say they understand what Meta does as well as they understand Facebook? Again, this is not an impossible challenge, just one that needs careful consideration and investigation to truly get under the skin of customers’ relationship with a brand before bunging a load of new stuff onto an app.
Super apps can grow revenue if done right
As always, user behaviour is beautifully nuanced and contradictory. There are several insights we see across our research in the tech and fintech space which suggest users are crying out for at least some streamlining of their digital lives.
We know that a big pain point is needing to download an app to do a one-time thing (anyone else still got the app to order in that pub they went to once immediately after lockdown?). We know that screen real-estate is at a premium, apps really have to prove value to keep their spot, just 6% of apps are kept beyond 30 days (source: Statista). We know that being able to make related purchases at the end of a checkout experience can delight users, meeting the need for convenience (for example car hire after booking your flights). For us, this all speaks to a desire to be able to do more with existing apps.
How to capitalise?
Explore the opportunity, develop meaningful propositions, prioritise features – all in close contact with customers and potential customers. Then repeat.
Build it slowly, not all at once. Identify one, really useful additional feature people actually want that fits with your proposition. Start with a quite super app that meets a genuine need.
Keep an open mind, don’t blindly pursue something you perceive to fit with your current offering. We hypothesise that feature combinations could be quite varied, not all exactly like what you currently do because human needs and brand associations interact in unique ways.
Finally, accept that people are going to continue to use multiple apps – it is clearly meeting current needs, there will always be new entrants to the market, and no one is exclusively your customer. That being said, there is room for users to become a customer who does more with your service, they just need to see the right proposition at the right time.
At Netfluential, we thrive off helping companies more closely align with customer needs and work consultatively to embed strategies which follow this approach.
If you would like to understand more about our work in the fintech and payments sector, please contact: jon@netfluential.com