We are all well aware of the fact that the COVID-19 pandemic had disrupted all regular business activities. Except for a few essential services, all other businesses were suspended during the lockdown that happened in all the major countries across the globe.
The necessity to write a complete guide to create an on-demand services app in order to explain the business model and the future of this business came out of the confusion created due to the pandemic.
If we look at the short-term impact, the pandemic has adversely affected companies and wreaked havoc across a lot of industries. However, it has also led to an awareness of the benefits of having a smartphone and availing these on-demand services that they never or barely did in the past.
Since the entire process of booking to availing the service is driven by technology, the services are more convenient and trustworthy.
In the post-lockdown phase, the need and demand for such services has increased a lot as consumers have started trusting these service providers with their effective take on hygiene and sanitation and are letting these service personnels enter their homes.
The post pandemic phase will have people hooked to their favourite on-demand services app for all their essential needs.
But in order for you to understand, let’s start from the beginning!
Table of Contents
What is an on-demand services app?
On-demand services app is the connecting link between customers and different businesses that lets customers use them to avail their services or obtain multiple products or services which they wish to purchase.
In short, on-demand services app is a customized mobile application that is used to address or cater to or adhere to the needs of customers when they request for it.
On-demand services app covers various sectors ranging from grocery, laundry, food delivery, car rentals, home services or personal health services. In short, on-demand apps let the customers avail such services with a few taps on their smartphone.
Most of the online businesses out there are today leveraging the service of on-demand services apps in order to flourish and build a reputation by providing services at the doorstep or within the comforts of their home.
How to create a successful on-demand business model
To create a successful on-demand business model you should:
Identify the pain point
The right customer is the backbone of any business and if you manage to identify the right customer and develop a mobile application that proves to be the solution for their unique problem you are destined to be successful.
Define the type of service you aim to provide
Services like food delivery only have a short waiting time on part of a client, while the scheduled ones like home care services have enough time on the plate to calculate the demand.
As the owner of an on-demand services app, you should be ready to meet the growing demand, through competent capacity and supply chain management.
Partner with reliable businesses and service personnels
No matter whether you attract contracted or freelance service personnels, you should form a reliable team and stable supply to be able to scale your business.
Strengthen your mobile application
Remember that technology is what keeps your business secure and drives your success to a great extent. So choose the right mobile app development company to build your on-demand services app.
The mobile app development company you partner with is not only responsible for creating your mobile application but also for maintaining and upgrading it as per the demand.
What are the benefits of an on-demand Service App
Customized apps for on-demand services can potentially boost hyperlocal businesses that in turn can strengthen your business. On-demand services app provides these local businesses with a business model that will provide them more clientele since they have the opportunity to seek their services at the hour of their need. These are the benefits that your local businesses can reap from on-demand service apps.
Providing value to the customers
Establishing a successful business largely depends on reciprocation. On-demand service app fosters a better interaction with customers and thus enhances the sales.
In fact, by opening up a communication channel through your mobile application you are providing more value to the customers as well as catering to their individual needs because now they can seek customized services through your mobile application.
By coming up with loyalty programs, you can also reward customers with more points as they interact through your mobile application to avail the services they need. They can use these points to get attractive deals, in the process.
This motivates customers to frequent your mobile application to avail the services they need, leading to a greater sale. The more you engage with your customers, you enhance your business potential.
The rising demand for mobile applications
As per Statista, the number of mobile phone users has increased by 4.68 billion from 2015 – 2020. This means a business model which does not plan to invest in mobile application as a part of their business development will become obsolete.
Security and scalability of your mobile application
In any business model that is reliable on a mobile application, predicting the security is not easy. However, as a part of their business development process you need to take care of your data, and the mobile app development company you are working with needs to integrate high security and scalability features in your mobile application.
When you go for a custom solution for your on-demand services app, your customers’ information remains secure. Besides, you have the option of scaling the services or costs up and down, when you use these apps.
Higher business potential
Well, in an era when more than 70% of the customers are using mobile devices, you need to make your services and products available where they are present.
When you create an on-demand services app based on a strong business model backed by solid market research, you need not wait for your marketers to push the users to use them. People will have the urge to use it and they will definitely place the order from your mobile application when they need your services.
When people love the services provided by your on-demand mobile application, the name of your brand remains in their mind, even when they are not using your services at the moment. When the need arises, they will turn to you as an obvious choice and recommend the ones who need services that your on-demand services app provides.
Filling and channeling your marketing pipeline
Your on-demand services app can prove to be a powerful marketing tool for the services your mobile application provides.
If you are working with an experienced mobile app development company like Archisys, we integrate a mechanism in these apps through which business firms can track the behaviour of their customers.
The analytics obtained can help you to make important business decisions that can result in serious business growth. Besides, your mobile application will provide the customers with a space to share their experiences and feedback through the same medium. This can help you to understand the strength and drawbacks of your business and your mobile application.
Satisfaction and efficiency of service personnels
The local business and service personnels will be able to achieve the desired ROI for their business when you hire the right mobile app development company to develop your on-demand services app.
This will be based on ease of project management that it brings in, user-friendliness and usability of the custom-built features. A good mobile application will be focused on increasing productivity all the while decreasing the issues faced by the people using it.
Many of these features can potentially enhance the experience of your customers, making them return to your app for their needs on a regular basis and hence, developing the marketing pipeline of your business through word of mouth publicity.
Since the success of your business model is highly dependent on your customers, you would want to enhance their satisfaction level with your mobile application. A report reveals that 70% of the purchasing experiences of people are guided by how valued they feel as customers.
By integrating features like multiple options for payment and real-time tracking mechanisms, you are showing your customers that their convenience and experience matters to you. As a result, the brand image of your business will get the lift it deserves.
You can consult with any reputed and experienced mobile app development company such as ours and understand the possibilities of features that can be integrated into your mobile application.
What essential features should an on-demand services app have
Main features to be implemented
- Product or service search,
- Live delivery tracking (time and geolocation),
- Messaging and notification,
- Payment calculation,
- Payment methods integration,
- Rapid helpdesk.
Features in your Customer Application
Search for services using filters
The customer must be able to find services without any hassle. Providing different types of filters such as finding the service provider based on cost, distance and specialty would ease the process for your app customers and increase the user experience considerably.
Schedule the services
Provide your user with the flexibility of choosing the service on their desired slot of time. This feature would allow your users to book their service appointment in advance.
Real-time approval notifications
Real-time notifications play a major role in any on-demand application. This is why you must ensure that the user receives a notification once the service provider approves the request.
Security of customer data
The primary concern for online customers is the safety and security of their money and personal banking information and other data.
Most apps or web payment options have certain verification symbols that make the customer feel like they can trust the app or website. The most important thing is that the customers should be able to rely on the payment gateway that your mobile application provides.
Whenever you have any upcoming sales or offers, notifications are the best way to reach out to clients to let them know. This is a convenient tool for marketing the services within your on-demand app.
Everybody loves to be reassured, and adding live GPS tracking to your on-demand services app can be very reassuring for your customers.
This way, the customer can be linked to the services personnel that they are expecting. Even if they wish to change the time or date for the services, they can easily do that. This is one of the main reasons why many on-demand apps are so popular!
Flexible payment methods
Even though online payment is so popular, restricting your customers to specific payment methods will demotivate a lot of customers from availing services from your mobile application.
People prefer more options because it isn’t necessary that they would all prefer the same payment option every time. This is why apart from the basic credit cards, debit cards, and net banking, the introduction of virtual wallets can prove to be very beneficial for better sales.
A user-friendly interface is very crucial because if the app isn’t easy to use or the information is scattered everywhere, people will lose interest in your mobile application in no time and they will end up uninstalling it. To make matters worse, this will result in your competition gaining out of your mobile app development company’s mistake.
A good mobile application should be easy to use and informative, as well. It should be detailed, and it should be easy for a customer to add or remove services as per their need.
The customers should be able to find what they’re looking for easily along with clear filtering and sorting options.
Fast and efficient customer care
Your customers should be able to reach out to you in the case of any grievances. They should be able choose from a variety of options like chatting with a customer care executive or calling them up, or even dropping an email in case of an issue.
Having an AI-based chatbot to interact with them and give solutions based on common customer problems will make sure that their problems are addressed in minimal time and meanwhile buffer the time taken for a customer care executive to get to the customer. This will pave the way for a happy customer base.
Efficient customer care is an essential requirement if you want happy customers because those customers will spread the news about your app!
Ratings and reviews
Providing the opportunity for customers to give their feedback on the services availed can generate a certain kind of trust that will prompt other users to avail those services. Through this your service personnels can also improve their services and get better opportunities to increase their services on the basis of their demand.
When a customer rates a service or reviews it, they are sharing their experience with other customers and that builds a chain of trust that would boost your ROI if worked on properly..
Features in your service personnel app
Easy registration and approval process
Your mobile application must have a very simple registration process for service personnels which does not consume too much of their time. Once the profile submitted by service personnel gets the approval; they should directly start getting assignments as per their specialty and experience.
It is important that the service personnels get the inquiry notifications in real-time. Faster the notification better your app and service will perform.
You must include all the options for inquiry notifications such as email, text alerts, and push notifications, etc.
Accept or reject requests
Once the service personnel receives the requests, they must have the authority to review it. Once they review it; they must accept it if they like the job or reject it if they don’t.
However, you must make some provisions which prevents service providers from rejecting requests without any reason.
Chat with their customers
Communication is essential in any on-demand App. Hence, your app must have an in-built chat system which allows service personnels to connect directly with their customers.
They should be able to discuss matters like rate negotiations and can pass on other important details of the job via the chat option in your mobile application.
Payment details & additional costs
The service providers can add different payment details such PayPal, bank account no., or wherever and however they wish to receive their payment.
In addition to that they should also be able to mention any additional charges such as for transportation in the case their customer lives far away.
Feedback from Service Personnels
The feedback process works both ways. So, you must include a feedback feature where service personnels can rate their customers on different criterias such as their experience with the user, proper instructions given by the user and more.
Features for the admin
The primary need of an admin panel must be an interactive dashboard that is easy-to-access and tuned for maximum optimum results. This is because the dashboard would act like a control center for the entire app.
Manage & verify service personnels
This feature lets you manage all the service personnels. You can add new service providers manually, verify profiles of all service personnels and prevent any fraudulent to register.
Along with ensuring quick and safe transactions between users and service providers, this feature will assist you in resolving all the payment related issues of both customers and service personnels.
To promote your app, you can offer various lucrative promos and discounts. With this feature you can track your progress with respect to the discounts offered. It will also provide you with useful stats which will guide you in offering discounts and promos in a better and relevant manner.
Statistics and analytics
This is a very crucial feature as it allows you to get vital insights of your business. These insights and stats guide you to take better decisions to improve your services.
You can check your progress using real-time analytics that will guide you in making the necessary changes to get your services right.
What will be the future of on-demand services app
With the rising demand after the onset of pandemic, new players are entering the segment with great frequency.
Until now, this market was predominantly catered to by the unorganised sector. Local electrical and hardware stores employ electricians who work according to their preferences. Currently, about 80 to 90 percent of the market share belongs to these unorganised players. Thus, it is a prime opportunity for technology-driven platforms to capture this market.
Customers are warming up to the idea of the on-demand services app and the ease of availing services through mobile applications.
The time is ripe for apps based on on-demand service providers. Two other major factors are conducive to this growth are its huge market potential i.e about 80 to 90 percent of households require services of professionals like electricians and plumbers every six to 12 months and preference for convenience due to the rise in disposable incomes and busy lifestyles.
With an emphasis on service standards, cost effectiveness, transparency, and customer satisfaction, on-demand services app platforms are in a better position to provide superior services. In times like these, it is important for on-demand services app platforms to ensure strict adherence to sanitation and safety protocols and maintain the service quality of their personnels.
In the post-pandemic world, the demand for new services such as home-based beauty services, sanitation, pest control, fumigation, and more is bound to grow rapidly. You must be ready to meet this demand surge proactively and professionally as mentioned earlier while discussing the business model.
People will always need to get things done, and with the current rhythm of life, on-demand services may eventually become, if not already, a complete on-demand economy.
So, is it worth trying to create an on-demand services app? Absolutely. To achieve this, it is important to choose a mobile app development company that sees through every aspect of your business model right from the ideation to its launch and management.
If you wish to consult us, we provide two free consultations for everyone. You can keep working with us if you like or consult other development companies for the same.
Hope the article helps you prepare for the best!