The Principle of Substitution: How Browser-Based Services Are Outcompeting Application-Based Businesses
For decades, businesses have largely relied on digital solutions to streamline their day-to-day operations. This has given birth to a major debate about whether browser-based or application-based businesses are the better choice.
The application market is undoubtedly a major force in the technology force. In the United States alone, adults spend over 4 hours on the internet every day, with 88% of that time spent using apps. They spend the remaining of their time searching the Web on a browser.
In this post, we aren’t referring to simple browser searches - but actual browser apps that outcompete traditional mobile applications. People today seem to lean more toward browser-based apps rather than downloadable traditional applications.
In reality, both options offer unique advantages but lately, browser-based services have started outcompeting traditional application-based businesses. In this post, we will explore the principle of substitution and how it applies to these two.
Application-based vs. browser-based services
An application-based service or a mobile app is a program that you can download and install on your phone. On the other hand, browser-based applications run over the internet and can be accessed via a browser without the need to download software.
Web-based applications can be used for anything from storing data, sending emails, making payments, sending text messages, and more. An example of a browser-based service that’s often used by clients and companies is a pdf editor. By accessing the business’ browser version, consumers can edit their PDFs however they need without software downloads to slow them down.
Why are browser-based services substituting apps?
Apps have been all the hype up until a few years ago. These days, individuals and more often, businesses, tend to lean toward browser-based apps instead of traditional mobile apps. To understand the reasons behind this substitution, we need to look at the obvious - the perks of web applications.
Accessibility
All users need to interact with a browser-based application is a PC, smartphone, or laptop and a good internet connection. Take, for instance, online stores. The e-commerce market is highly reliant on mobile apps, but they also have many clients who place orders directly on their websites. Why do they do this?
The access to browser-based services is instant. On the other hand, you’d need to download and install an application to be able to use the services. Next, you’d need to do constant updates to keep it running smoothly and without glitches.
Ease of access
Users can exchange data using a browser-based, web app and store that data on a remote server i.e. cloud storage. Then, selected people can access said data from any device without having to download a physical software app. The data is available in real-time with different users being able to request it at the same time.
This, of course, depends on the service’s capabilities, but it is certainly a perk for browser-based companies that offer teamwork opportunities.
Lower risk of data loss
Web-based applications or browser-based apps are also referred to as ‘cloud computing’. They run on remote servers and aren’t installed locally on a device. Since the data is stored in a cloud and not in the computer or the device itself, the risk of data loss due to hardware failures is eliminated.
This brings users a higher level of security since it makes the job of hackers much more difficult, as well. Also, since the data is kept on remote servers instead of locally stored on hard drives or in physical documents, there isn’t any risk of losing the data if something gets stolen or somehow lost.
Web-based applications store all data in a central location and as such, they are more secure than traditional applications. Let’s say that one of your servers got hacked. In this case, only one machine will be compromised - not all of them at once.
Less expensive development
Now, this perk applies to those creating the apps, not the ones using them. Regardless, it is still a perk and a reason for the substitution. Generally speaking, app development is costly and time-consuming. To create a proper mobile app, you need to create multiple versions for different devices and platforms.
An app with the most basic user interface and a few basic features costs between $5,000 and $50,000 to develop. If you were to, let’s say, create a complex app, this would cost between $100,000 and $133,000.
This is not the case with web applications and products.
In the case of browser-based services, users will interact with your product using the same interface for all devices - the browser. This not only speeds up the development but is far more cost-effective.
Fewer usage costs
Fewer costs are also a perk for the consumers of these apps. Seeing how traditional mobile apps are more expensive to develop and maintain, these often incur higher costs to use. Here applies the so-called substitution effect where people prioritize a service or business that comes at a lower cost compared to an equally desirable and comparable, but more expensive option.
Streamlined processes for businesses and organizations
Software systems that come organized as browser-based, web applications are perfect for automating all those manual processes in a business. As such, they are known to reduce expenses, minimize human errors, and boost employee productivity.
Users can access the data on a browser-based app in real time, an approach that gives businesses quite a competitive advantage. If the users were to all download an app individually, this would be more time-consuming, take up space in each person’s device, and come with higher costs in most cases.
Simplicity in use
We live in a world powered by technology, but older generations aren’t exactly tech-savvy. Many adults have limited technical skills. Well, web apps are typically much quicker to master. Employees don’t need to make downloads and they can complete their work faster and more efficiently.
Why do users abandon mobile apps for browser-based services?
Mobile technology has developed and advanced quite a lot, especially in recent years. With it, the number of mobile apps has skyrocketed. Even so, many users still prefer websites and browser-based apps. These days, there’s been a lot of substitution between the two.
Some of the reasons why users abandon mobile apps to choose website services are:
- The need to install the application
The main reason for this abandonment is that most users don’t see a need to install mobile applications. They don’t have to do this, not if they can easily access the exact same services or information through a browser on their device.
- Mobile apps are space-consuming
Mobile apps also take up a lot of space on devices. If you have an app or two, this might not be a big issue. However, mobile devices that are crowded with apps are slower, which is why those with limited storage space prefer the browser version.
- They come attached to mobile data consumption and have lower battery life
Next, there are also concerns about mobile data consumption and battery life. If you have many apps running in the background and if those apps are constantly transferring large chunks of data, this can pose a real challenge for you.
- There’s the increased issue of privacy and security
Another major concern for users is the issue of privacy and security. Most apps these days require an endless list of permissions to access the user’s personal information such as their contacts, location, personal files, social media data, and more. This raises concerns about how the users’ data is used and stored.
There is also the fear that mobile apps are more vulnerable to hacking, especially the ones that store sensitive financial data and personal information.
Are mobile apps really that bad?
They most certainly aren’t. In the consumer’s first two decades on the Internet, the only option was a company website to buy something or use a service. Now that mobile apps are available, they come with a myriad of perks, which is why they remain highly used by many even today.
Apps remember your identity, so you needn’t log in after the initial install. You don’t even have to type the URL to access the service - just click on the app and it is right there!
Apps can also send push notifications and inform you in real time. And, unlike a browser on your desktop, they are integrated into your mobile device which you carry with you for most of the day - if not the entire day.
Substitution is happening for the many reasons we mentioned above, but mobile apps are still number one when it comes to usage. Even 64% of consumers prefer to use a business’ mobile app over accessing it through a browser.
What do you prefer?
There is no right or wrong answer here, really. In the end, both options exist for your convenience. Hopefully, this post has told you the reasons behind the substitutions, as well as helped you better understand the differences between the two. Now you are ready to make an informed decision about what you will use.
Author bio:
Nadica Metuleva is a senior content writer with experience of over 10 years in the freelance market. Her specialty is blog posts, listicles, and articles in business, marketing, cryptocurrency, SaaS, gambling, and lifestyle niches. Over the years, Nadica has deepened her understanding of SEO strategies and developed a passion for storytelling. She holds a Master's Degree in English Literature and Teaching and speaks four languages. You can find her on LinkedIn.