The on demand economy is booming. This isn’t just speculation. The numbers confirm it. For instance, experts at the Harvard Business Review report that consumers spend nearly $60 billion in the on demand market annually.
It’s easy to understand why. On demand products offer a degree of convenience outdated services can’t match. To further appreciate why this is no fad, it’s important to consider how changing demographics impact businesses in general.
Millennials and members of Generation Y have grown up with the internet. They’re accustomed to fast-paced service. Thus, they aren’t going to ditch on demand apps anytime soon. Odds are good they’ll expect businesses to provide their services in this fast and efficient manner. Businesses across a wide range of industries will have to keep up.
Additionally, approximately 77% of Americans now own smartphones. That means a large percentage of the population in this country alone has access to on demand products and services. That percentage is likely to continue rising in the future.
Why On Demand Apps Are Successful
Early examples such as Uber demonstrated to consumers why on demand products are useful. Being able to get a ride by simply clicking a few buttons in an app is much easier than looking up local taxi services, calling their offices to get fare estimates, and providing the driver with an address.
This model has since expanded to many other types of businesses. Consumers now use on demand apps to order meals, find vacation rentals, hire plumbers, and even find babysitters.
This has caused businesses in general to shift their approach to customer service. Obviously, it’s important for any business to keep up with the changing times.
Imagine a potential customer is trying to choose between two restaurants when ordering dinner. The quality and prices of both are relatively equal. However, one has an on demand app. Ordering from that restaurant takes less than a minute and doesn’t involve any complicated interactions. With the other restaurant, a customer needs to call them directly, wait for someone to be available, and try to describe their order, with background noise potentially resulting in confusion or errors. It’s easy to guess which business the customer will order from.
However, that doesn’t mean simply creating an on demand app is all a business must do to remain competitive. Many businesses understand this is a necessary step. In order to stand out among the competition, businesses must focus on how they can further improve customer service. A simple app isn’t going to impress customers right away.
It’s important for business owners in any industry to identify ways they can make their on demand apps more useful for customers. For instance, surveys indicate today’s consumers expect personalized service. An on demand app that uses AI to analyze the behaviors and preferences of each specific user can offer that.
This is good news for consumers. The rise of the on demand economy has fueled an increased focus on strong customer service. Businesses that start developing their own apps sooner rather than later will be more likely to find out what makes one app more successful than another before the competition does.
