Value, design and connection

The three most crucial ingredients for customer engagement
13 August 2017

Mobile Apps – Can They Cultivate Customer Loyalty?

Let’s face it, brand loyalty is a concept that has changed and continues to evolve every single day. Especially so with the advent of web and mobile. In the past, it was simpler for a business to somehow “cultivate” loyalty from its customer base through non-differentiated discounts and other such offers.

 

Challenges of cultivating customer loyalty in this digital age

The latest developments in the tech space, have however altered consumer behavior, such that people have become increasingly exposed to and aware of the many options available to them. In the past, you would have used print, then web and email to deliver your message, but now the channels and share of attention is getting harder and harder for brands to win. Furthermore, consumers’ attitudes toward providing personal information has also considerably shifted from what it was in the past.

It’s not all negative of course, in fact the principles and strategies of growing loyalty have not changed that much (however, the tactics have changed dramatically). Customers today are still willing to provide their personal information, but they have to know that the exchange has to provide them something not just good in value, but great and unique.

Businesses and marketing leaders have to put much more effort and work into understanding their customers’ needs and wants, as well as motivations. There is no excuse for lazy marketing, poor targeting and segmentation and overall lack of customer-centricity. If your business is not putting in the hard work, then it is going to risk losing it’s most loyal customers, as the switching costs are so much lower and the information about competitors is just a swipe or click away.

A simple formula that businesses should fully understand and embrace can be focused around three important ingredients of customer loyalty, which are needdesire and experience. When speaking of Need, I would say this refers to what the consumer really feels is going to solve their problem. Desire, on the other hand, refers to brand fit — the idea or feeling that draws the consumer to a brand. Finally, Experience refers to the relationship between a brand and a customer which extends beyond the seller-buyer relationship.

 

So where do mobile apps fit in this formula?

Unlike desktop and laptop computers, mobile devices and the apps inside them give today’s consumers a more personal and experiential relationship with the brands they are loyal to. This has much to do with the fact that we are getting more and more used to being always connected and not wanting to miss out on what may be happening right now.

For businesses that are looking at new ways of increasing loyalty and leveraging mobile, the selection of the right strategy,  partner and mobile application to deliver that strategy, can allow for a more relevant and just in time offering – which will in turn provide for a much better user experience. This will help eliminate the hurdles that previously hindered businesses from fully connecting and engaging with their customers, in the right place and at the right time.

Mobile apps, (together with the right strategy) can also give businesses the possibility of learning so much more about their customers, from location data to preferences, to time spent on the apps themselves, all of which can be used to really personalize the whole experience.

This all sounds quite simple and intuitive, and you might be saying to yourself, why don’t we just go out and build an app, and copy what this or that company is doing, but it really is not that simple.

You have to understand, that in order to take full advantage of the power of mobile apps to drive loyalty and engagement, businesses need to put together and deliver on some crucial ingredients: value, design and connection.

 

What does this mean for your business?

First, the content, offering or service that you provide to your customers should be relevant to their needs. At our B2B division at The ENTERTAINER we have been working on providing amazing value to our customers by not only building great apps, but by leveraging on our vast network of merchants and unique offers, all of which have proven to delight users and motivate them to continue a long term relationship with the brands they are loyal to.

As mentioned previously, consumers have access to lots of information and they are becoming more and more savvy, so make sure that you give them a clear reason to both download your app and engage with it

Next, pay attention to the design and the user experience, as this is going to either make or break your app. You need to be data driven and have a great understanding of your customer and what they are trying to achieve when they are in your app.

We have built many apps for great brands like HSBC, Mastercard, du, Samsung and many more, which means we have gathered a unique set of capabilities. We use those capabilities to know what motivates users to stay and use an app, what value drives them to engage and ultimately stay loyal.

Our customers of course benefit from all the learnings and insights we get, which all translate into their next app update or a new app we are launching for them. We basically take all that hard work away from them, thus freeing them up to continue focusing on their core business.

Finally, your app need to win the heart of your customers, to create a connection with them that is going to move them to a point where they will be loyal to you and your brand and refer you to their closest circle of friends, family and colleagues. A key part of this is making sure that you are able to seamlessly communicate with your audience.

Using machine learning algorithms to better target your customers, as well as a great segmentation strategy together with the right communication triggers is going to ensure your app not only gets opened, but gets used and becomes an everyday part of your customers lifestyle.

 

Thanks for reading. I am Head of Travel for The ENTERTAINER, a mobile loyalty, engagement and rewards company based in Dubai. I write about travel and hospitality, loyalty, innovation and emerging tech . If you would like to connect with me or want to ask anything, do so via LinkedIn.

About the ENTERTAINER business

The ENTERTAINER business is a global loyalty, rewards and engagement programme provider that delivers easy-to-use, and cost-effective, solutions designed to meet the specific needs of any partner. Through our bespoke mobile phone app solutions, we provide businesses the ability to connect with their employees while being a part of an exclusive and extensive global network.