Gartner: App developers must focus on user retention

08 May 2015 Consultancy.uk

While app usage remains high and apps are becoming more integrated in users’ lives, app users are becoming less keen on adopting new apps, research by Gartner shows. As a result of this, app developers should focus less on new customers and more on user retention to retain relevance.

Information technology research and consulting firm Gartner recently released its report on app usage, titled ‘Market Trends: Mobile App Adoption Matures as Usage Mellows’. For the research, the firm surveyed the current app behaviours of more than 2,000 U.S. and German consumers as well as their intend to use apps in the future.

Gartner’s research shows that the mobile apps marketplace is maturing as user interest in apps has mellowed. Users have integrated their favourite apps into their use of personal technology and indicate to be satisfied with the current engagement rates of these apps.  “After eight years of searching for, downloading and using smartphone apps, users are maturing in their usage behaviours,” explains Brian Blau, Research Director at Gartner.

Gartner - Mobile app adoption matures as usage mellows

With app users satisfied with their current apps, many are stating not to ‘need’ or ‘want’ more apps in the future. This, according to Gartner, means app providers should focus their development, marketing and branding more intensely toward retention strategies, as attaining new customers might become increasingly difficult.

Blau explains: “It's not that smartphone users have lost interest in apps, users remain excited about what apps can do for them in their daily lives, including for work and non-work app scenarios. However, app users need to be convinced about the value of the app. Their willingness for new app experiences is open-ended, but their plan is to keep their same patterns of use. Users will try new apps, but they need to be convinced of an app's value before they adopt them and change use patterns over the long term.”

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Grant Thornton advises on deal for high-growth cloud hosting firm

08 April 2019 Consultancy.uk

Grant Thornton’s North West Corporate Finance team has completed its first TMT deal of 2019. The professional services firm advised the shareholders of Hosted Desktop UK on their investment from specialist SME lender Beechbrook Capital.

Technological disruption and changing consumer behaviour have continued to affect top Technology, Media & Telecommunications (TMT) players in recent years. The industry has seen revenues border on stagnation over the past decade, at 0.4% annual growth since 2008. While the industry is keen to develop new digital services and models to meet market challenges, they face a range of barriers – meaning the recruiting of talent specialising in innovative software and technology has become a key goal for the industry.

Amid this, Hosted Desktop UK (HDUK) provides cloud computing services to small and medium sized businesses across the UK. The firm’s cloud solutions provide businesses with IT reliability, flexibility, value for money and business continuity. As the firm bids to grow in the UK, with demand for its disruptive technologies high, HDUK has secured a key investment from specialist SME lender Beechbrook Capital.

Grant Thornton advises on deal for high-growth cloud hosting firm

The transaction was Beechbrook Capital’s maiden deal from its latest UK SME credit fund, which supports small and medium-sized businesses in the UK with EBITDA of £1 million and above. Manchester law firms Pannone Corporate (sell-side advice, led by Mark Winthorpe) and DWF LLP (buy-side advice, led by Jonathan Robinson) also advised on the deal, while Grant Thornton’s North West Corporate Finance team advised HDUK’s shareholders.

The deal represents the Grant Thornton branch’s first TMT deal of 2019, with a team comprised of Partner and Head of Corporate Finance Peter Terry, Manager Daniel Brecker and Assistant Manager Cariad Mudford advising HDUK shareholders on the investment. It is the third key deal in the TMT sector that the GT North team has advised on in the last 18 months, following the £16.5 million sale of Salford-based Sonassi to Iomart in December 2017 and NorthEdge Capital’s investment in Yorkshire company iPortalis in August 2018.

Grant Thornton’s Peter Terry said of the news, “As our domestic and working lives become ever-more technology dependent, it’s no surprise that there continues to be strong investor interest in any asset in the cloud computing, data infrastructure and connectivity space… We were pleased to work with Beechbrook Capital on the first deal in its new fund. It shows that despite the well-documented uncertainties in the economy there are still good funding options for dynamic SMEs and their management teams.”