The on-demand market is experiencing remarkable growth, with projections indicating that the global market will reach $335 billion by 2025, up from $106 billion in 2017. Furthermore, according to the Harvard Business Review, this industry has attracted over 22.4 million new customers, with spending reaching $57.6 billion.
These figures demonstrate the booming and rapidly spreading nature of the on-demand economy. But what exactly is an On-Demand App, and what are the crucial characteristics that contribute to their growing popularity? Let’s explore through this blog!
On-demand apps are mobile or web-based applications that allow users to instantly request and receive goods or services. These apps enable users to access products or services immediately, without scheduling appointments or waiting for lengthy delivery times.
The rise of on demand services has been driven by:
Key characteristics of on-demand apps:
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Service-based on-demand apps connects service providers with customers, which allows users to request and receive services immediately.
Examples of service-based on-demand apps include:
Product-based on-demand apps allow users to purchase and receive physical products after a few hours.
Examples of product-based on-demand apps include:
Rental-based on-demand apps allow users to rent or access various products, services, or experiences as needed for a specific duration.
Examples of retail-based on-demand apps include:
Peer-to-peer on-demand apps facilitate direct transactions and exchanges between individual users, rather than going through a centralized intermediary or service provider.
Examples of P2P on-demand apps include:
A robust search and filtering system is crucial for an effective on demand application. A well-designed search and filter functionality allows customers to quickly and easily find what they’re looking for, which can enhance user experience and drive early sales conversions.
Additionally, a sophisticated recommendation engine can further improve the experience. By leveraging machine learning to understand user preferences, on-demand apps can provide personalized and appealing product/service recommendations, helping to consistently drive sales and revenue.
Providing a secure payment functionality is also essential for on-demand service apps. Businesses must ensure their integrated payment process is fast and reliable, offering a streamlined checkout experience for users.
A key feature during this process is to integrate multiple payment options, giving users the flexibility to complete transactions through their preferred method such as credit/debit cards, mobile wallets, internet banking,…
At mentioned above, live GPS tracking is one of the key characteristics of on-demand apps. By integrating real-time tracking to monitor the location of service providers automatically, customers to track their delivery progress in real-time and adjust schedules if needed.
Beyond the customer experience, this functionality also benefits businesses by providing insights into employee activity and time spent per task. This helps optimize operations, establish clear cancellation policies, and increase the chances of successful service completion.
Properly segmented push notifications have been shown to have an impressive retention rate (93%), as they provide users with timely and relevant information.
On-demand apps can leverage this feature to deliver updates on chat conversations, tracking information, and promotional offers. When used judiciously, push notifications can drive engagement and increase app usage, offering customers reassurance throughout the booking or purchasing process.
On-demand service apps should offer social sign-in features to streamline onboarding and encourage higher adoption rates. By enabling customers to register and log in using their existing social media profiles or email addresses, apps can eliminate the friction of repetitive sign-up processes and password management.
Alongside seamless registration, robust user profiles are crucial for enhancing the customer experience and driving retention. In general, the profile section should allow users to:
Profiles can also be leveraged to further engage users, such as through special badges or loyalty programs. By empowering customers to tailor their in-app experience, on-demand service providers can foster stronger user engagement and build lasting relationships.
Another crucial feature for on-demand service apps is the shopping cart and order history functionality. This allows customers to review their previous service requests, track their total spending, and stay informed about the details of their transactions. By integrating order history, the app can help customers quickly find products or services they were previously interested in, streamlining the decision-making process.
The ratings and reviews feature generates a valuable sense of transparency and accountability that benefits both the service provider and the broader user community.
For customers, the ability to read honest feedback from previous users allows them to make more informed decisions when selecting products or services. Meanwhile, by embracing customer feedback, businesses can identify areas for improvement and take corrective measures to refine their offerings.
This mutually beneficial dynamic fosters a strong sense of trust, which is essential for building credibility and an exceptional user experience. When customers feel their voices are heard and that providers are responsive to their needs, it leads to increased loyalty and conversion.
Read more: Optimizing Order Management System for E-commerce Success
The on-demand economy is revolutionizing how businesses and customers interact. Many of the most innovative digital products have been on-demand service apps, and there is still significant room for new players and niche offerings in this space. Embracing this trend can not only enhance the user experience but also drive more conversions for your business.
As a leading global UI/UX design and mobile app development company, Lollypop Design Studio – A Terralogic Company has a team of seasoned experts with extensive practical experience. We leverage our deep knowledge of best practices to design digital products tailored to the needs of businesses of all sizes.
Whether you’re building a new on demand app or enhancing an existing one, our team can bring your vision to life. We prioritize scalability, performance, and user-centric design to help you stand out in this competitive market.
Contact Lollypop Design Studio today to schedule a free consultation on how we can help you shape the future of your on-demand app
