For Scott Martin, chief executive of Coffee Nation, the problem was simple. Customers were lining up to tell him they’d like to download details of their nearest Coffee Nation location using their Sat Nav, but how could this be done?

Then the idea came to him: an app. Using GPS technology, Coffee Nation’s developers produced an app which would allow customers to locate their nearest outlet, at a cost of around £15,000.

Scott, who has since sold Coffee Nation to hospitality giant Whitbread and created Costa Express, says the app received around 15,000 downloads, and played a key role in building brand awareness. He says he will look to create something similar with Costa Express – and would recommend that others do the same.

Scott is just one entrepreneur who has seen results from building an app. But for everyone who gets positive results, there is someone who wastes money, and puts their brand in jeopardy, as a result of their app project. According to a recent survey from Deloitte, 80% of mobile apps fail to deliver tangible results.

So it’s crucial to think carefully about whether an app is right for you – whether you can afford it, and whether you can pinpoint the customer need to justify it. This guide should help you make an informed decision.

Is it suitable?

Several experts believe an app can enhance any business, no matter what industry it’s in. Russell Berry, founder of appcreatives.co.uk, says: “I wouldn’t say (the app) is unsuitable for any sector. Small businesses like a butcher may not appear suitable at first glance – but even a butcher could do a relevant app about the various nutritional values of their meats.”

However, throwing an app out for the sake of it won’t work – a point Andy Budd, managing director of user experience consultancy Clearlfeft, is keen to make:

“The utility of mobile apps cuts across all sectors and activities. The problem is, since the launch of the App Store a lot of people have jumped on the bandwagon, but a lot of the concepts were developed really poorly. There was a sense of keeping up with the Joneses.”

Is it worth my while?

To answer this question, you need to consider the costs involved, and it seems these vary wildly. On the one hand, Andy Budd tells us: “For a decent app, you’re not going to get much change out of £50,000.” However Russell Berry, founder of appcreatives.co.uk, set the bar far lower; he estimated that most projects cost between £4,000 and £10,000.

With the Apple and Android marketplaces both charging 30% of app revenue in subscription fees, shopping around for a cost-effective developer is essential. Andy Budd suggests the average app makes a profit of well under £1,000, so when you’re searching for someone to build your app, you need to make every penny count.

You’ve also got your reputation to think about. Just as a useful, creative app will enhance your company’s profile, a poorly planned app will damage it. Just look at Skype; the company’s app has encountered problems ever since it launched, leading one review site to describe the user experience as being “about as appealing as rotten eggs”. Given that Skype’s success relies on quick, consistent communication, many would argue that its unreliable, cumbersome app has actually detracted from its image.

What sort of apps work best?

‘M-commerce’ apps, which allow customers to shop or compare prices, are widely relevant in today’s on-the-go world – a point clearly evidenced by the phenomenal success of the Amazon and eBay apps. Retail and commerce apps can benefit all kinds of small firms, says Andy Budd:  “If you’re selling building supplies, a mobile app can help – someone up a ladder might find they’re short of a particular product, and order it straightaway on the app.”

News and information apps are also proving popular – indeed, it is thought the Sky News app is now opened around a million times a day. And GPS-based apps, such as store locators and route planners, often deliver great results; Doug Chisholm, founder of app development service Appsplash, says: “Anything location-based is a huge hit at the moment, because it’s doing in two clicks what takes ages on a website.”

Ultimately, your app can do just about anything, provided it’s unique and engaging. Lewis Shields, of PR firm Flagship Consulting, talked us through an app his firm had worked on recently, designed to encourage Londoners to go running on their lunch breaks. The app put running routes directly into the hands of busy professionals, so they didn’t have to print off maps.
On the other hand, if your app is unoriginal, or unnecessary, you’ll probably struggle.: “I see a lot of early apps which aren’t well thought out,” says Andy Budd. “For example, the Starbucks locator app tells you where your nearest outlet is. Frankly, you can just look around you to find the nearest Starbucks, you don’t need an app for that.”

When designing the app, what do I need to think about?

Generally speaking, simpler is better. Remember that, while websites are designed for navigation by mouse, an app should be built with touch-screens in minds.

Paul Childs, chief operating officer of mobile advertising marketplace Adfonic, elaborates: “There should be an alignment in look and feel between the website and the app, and general navigation should always have similarities.

“But the real estate on the phone is smaller, so you need to des-cope, and think about the functions you don’t need on a phone. For example, the BBC website gives you an option for 30 different languages, but with an app, you can actually give the customer the language they want.”

Keep your search functionality simple; don’t provide a labyrinth of menus, and use filters to keep search results as relevant as possible. Think about how you can use mobile phone technology, such as the built-in camera, to dovetail with your app, and always ensure your buttons are designed with the fattest of fingers in mind!

Click on the next page for three app success stories