Rackspace® (NYSE: RAX), has revealed that more than one in three (36 percent) consumers are deterred from using more apps due to security concerns. With the UK app economy estimated to be worth £7.1 billion[1] in 2016 and £8.8 billion[2] in 2017, these concerns could potentially cost the UK £2.5 billion[3] in 2016, rising to nearly £3.2 billion (£3.16bn)[4] the following year.
Highlighting the fears of consumers, the research also showed that a third of those surveyed (33 percent) are concerned about the privacy of their data when using apps. This is a particular concern among the older generation of respondents where this figure rises (37 percent). In addition, more than a quarter (26 percent) said that the failure of an app had prevented them doing something important.
With a growing number of purchases made on phones and tablets[5], apps have become an essential tool for brands looking to engage with consumers. Therefore, the technology that underpins these services has become crucial as it has a direct impact on the experience that users receive. Having an effective infrastructure in place is particularly important for enterprise businesses that have built a reputation which can be severely damaged by an online service going down or having a security breach.
Darren Norfolk, UK Managing Director of Rackspace, said: “Our research shows that security and reliability are the biggest concerns for consumers when using online services. Both these issues often boil down to having a robust and scalable infrastructure in place. Having access to expertise on how to run the infrastructure and plan for traffic peaks is something that can sometimes be forgotten, look at Pokemon Go which went down shortly after the app was launched. The technology itself wasn’t the problem, it was the fact that the IT team planned for fifty times less traffic than what they eventually received.”
The wider benefits of apps
Despite the hesitancy of some consumers, research shows that the UK population is still saving 2.2 hours per month by using apps and online services. In addition, over half of respondents also report that convenience (51 percent) and time saving (45 percent) are more important than spending less money (25 percent) as benefits of using apps and online services.
Daren Norfolk continues, “The advantages that applications and other online services give to consumers and businesses are vast, particularly because they are helping people to perform everyday tasks quicker and more conveniently. To be successful, businesses need to include these modern services as part of the overall business strategy. This will ensure that they are supported by sufficient resources and planning.”
[1] Figure based on statistics found at https://www.statista.com/statistics/316173/mobile-app-economy-revenue-in-the-uk-forecast/ which estimate the UK app economy at £7.1bn.
[2] See above reference
[3] Figure based on calculation following calculation: 36% of £7.1bn = £2,556,000,000
[4] Figure based on calculation: 36% of £8.8bn = £3,168,000,000
[5] http://www.thedrum.com/news/2016/09/27/new-iab-survey-shows-consumers-buying-mobile-more-ever-ads-and-social-trigger
