Mobile app investments are paying off


Majority of respondents using KPIs to measure mobile app success indicate positive ROI

Almost all IT decision makers intend to increase investment for mobile app development in 2016, with around three quarters of those using key performance indicators (KPIs) to measure the return on investment (ROI) of those apps, according to a new study.

Red Hat, a provider of opensource solutions, has announced results from a recent mobile measurement survey, which revealed that 52% of respondents claim to have a fully implemented mobile app strategy and 90% plan to increase mobile app development investments in 2016. Of those with a fully implemented mobile app strategy, 96% use KPIs to measure app success.

Altogether, 74% of respondents whose organisations use KPIs to some extent to measure mobile application success are achieving positive ROI. The company’s mobile measurement survey revealed that 85% of organisations are using KPIs to measure mobile app success, 9% use other means and the remainder is not measuring mobile success at all.

Vanson Bourne polled the views of IT decision makers from 200 private sector organisations with at least 2,500 employees across the US and Western Europe regarding mobile app development, including obtaining a better understanding of how respondents with a mobile app strategy evaluate the success of mobile app programs through KPIs.

Cathal McGloin, vice president, mobile platforms, Red Hat, commented: “Our mobile maturity research shows that 90% of respondents plan to increase investment for mobile app development in 2016. In addition to identifying respondents’ commitment to mobile investment, we also surveyed how these organisations measure the success of their mobile app development; who is primarily responsible for tracking this and what changes might be afoot.

“There are some positive signals of greater mobile maturity, demonstrated by the number of respondents who are not only using KPIs to track the success of their mobile investments, but reporting positive ROI as well. It is also revealing to see that this responsibility for KPIs is expected to shift towards lines of business, confirming to us the trend that we see in the market as the business comes together with IT, playing a bigger role in mobile decision-making.”

Of these respondents that use KPIs, US-based respondents are more likely to report positive ROI (79%) than those based in Western Europe (68%). Just 4% of respondents claimed a negative ROI from their mobile app programmes, and one in six (16%) reported zero ROI. Additionally, 7% of organisations do not know the level of ROI their organisations are achieving.

Manufacturing, telecommunications and construction are achieving the most mobile app success. Of respondents whose organisations are measuring mobile app success with defined KPIs, manufacturing, telecoms and construction industries saw the most positive ROI: manufacturing – 92%; telecoms – 83%; construction – 83%.

This was followed by: retail – 76%; distribution and transportation – 75%; business services – 71%; financial services – 69%; IT – 66%; and chemicals and pharmaceuticals – 56%.

Also, responsibility for mobile app success measurement is poised to shift in 2016. Today, 72% of respondents from organisations currently tracking KPIs believe senior IT heads and their managers are primarily responsible for tracking the success of mobile app development, while 17% believe this responsibility lies with line of business (LOB) heads, and 11% claim it is the responsibility of the organisation’s chief or head of mobility.

In the next year, however, respondents see this shifting, with 43% of respondents saying they believe the primary responsibility will stay with senior IT heads, 42% placing it on LOB leaders, and 14% to the head of mobility.


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