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The Five Stages of Reducing Mobile Customer Churn

Retention is a top priority for mobile marketers. Our new five-step framework is here to help you improve your existing strategy.

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2020 Mobile App Engagement Benchmark Report

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Thanks for reaching out! While you wait for confirmation from an Apptentive team member, you may find these free resources to be of interest:

Guide

View resource

Guide

The Five Stages of Reducing Mobile Customer Churn

Retention is a top priority for mobile marketers. Our new five-step framework is here to help you improve your existing strategy.

Download Now

Guide

View resource

Guide

2020 Mobile App Engagement Benchmark Report

Apptentive’s annual mobile app engagement benchmark report serves as a baseline to help app publishers across categories understand their app’s engagement strengths and areas for improvement.

Download Now

Loyalty & Retention

The Cost of Customer Loyalty For Your Mobile App

Ezra Siegel  //  November 6, 2013  //  4 min read

Many companies believe that a successful customer loyalty campaign lies in new advertisements or new customer loyalty projects quarter after quarter. There are loyalty programs galore focused on incentivizing customers to frequently return. However, these constant and insistent attempts to gain our loyalty are not working, in fact, they are failing as customer loyalty is in decline.

Customer loyalty is in decline because consumers have more information than ever before and that information only takes 5 seconds to get. It’s incredibly easy to find the cheapest alternative, a special coupon, or a new product that may do what customers want just a bit better. For mobile apps, the cost for loyal mobile app customers is at an all time high. According to a report from mobile marketing firm, Fiksu, it costs $1.90 to acquire a loyal customer for a mobile app and all signs point to a continued rise through the holidays. Marketing budgets are being strained to continue to bring in new customers, and more importantly to keep them. As defined by Fiksu, a loyal mobile app customer is someone who opens the app three or more times in a thirty day period.

Cost Per Loyal User, 2012-2014

With costs increasing and customer loyalty in decline, improving or even maintaining customer loyalty can seem fairly bleak. What most companies are forgetting are the basics of what drives loyalty (it’s always about going back to fundamentals). A company that treats it’s customers well will always be more successful than the company that doesn’t care about the customer experience.

When there is a problem, customers expect to receive excellent and proper treatment. This above all else drives loyalty. For mobile apps, this concept is unfortunately lacking to the point where hearing that customers are surprised to even receive a support response is a common story. To create customer loyalty it’s time to move away from marketing tricks and move back to what’s important.

  • Treat your customers with respect – This can be more difficult than you might think. Sometimes a rude customer or a customer who can not follow or understand the simplest of tasks can push you over the edge. Your instinct can make you react quickly, but take a step back and wait a few minutes before responding. No matter what the problem might be, apologize and move on to trying to help them. Many customers who may seem angry, frustrated, or dissatisfied can easily be turned into loyal customers by being treated with respect.
  • Listen to your customers – Nobody knows what customers want better than the customer. Actively listen to your customers on all channels (mobile, social, email, and web). The more places where customers can talk to you and feel listened to, the more likely they will actually reach out with something to say.
  • Respond to your customers (be human) – Start every message that you can with their name and sign it with your own. Be a real person and have a real conversation. This is essential to developing a relationship and is often the foundation of why customers are loyal. Customers are loyal to the people behind the product who provide great support and are reliable in times of crisis.
  • Rise to the expectations – Customers expect to be well taken care of and have no qualms about taking their business elsewhere if the support is not up to par. Not every company can provide quite the same service as an Amazon or Nordstrom, but every effort should be made to provide an exceptional experience for your customers. Be honest and open about what you can and cannot do. Don’t make promises you can’t keep, but make efforts to rise and go beyond expectations of your customers when you can. When a customer feels that you are making every effort to help them out it is appreciated.

Do you have loyal mobile app customers?

You may not consider a customer who opens your app three times in a month to be loyal. Every app is different, therefore expectations of how customers will use it differ as well. What’s important is how you are measuring customer loyalty. Common methods for measuring loyalty is the Net Promotor Score or using voice of the customer metrics across all departments to set benchmarks over time. While both of these can help give you an understanding of what customers think about your app, it falls short of actually measuring loyalty.

To measure mobile customer loyalty you must dig deeper and understand the entire journey that the customer has with your app. Loyalty should be measured through a series of touch points through your app and be able to extend further into web, email, and social. We are all glued to our phones, constantly sharing and interacting through our mobile devices, yet there is still very little contact through devices with companies. Being proactive to engage with your customers and be there ready to solve an issue at hand is the best loyalty strategy you can have.

The more touch points across the customer journey the better to not only accurately measure loyalty but to create it. Loyalty is about emotion, not logic. If you have customers that love your mobile app they will come back, it’s that simple. Creating customer loyalty doesn’t need to be about spending more money on campaigns and loyalty programs. It’s about creating an exceptional experience that customers can trust to receive every time.

How do you measure customer loyalty? Do you have any suggestions for increasing customer loyalty? Please share in the comments below.

Apptentive Guide to Mobile Customer Retention

About Ezra Siegel

Ezra is the VP of Community at Apptentive. He is a Chicago Sports Diehard and loves travel. Some day he would he plans to visit every country in the world. Connect with him on Twitter, LinkedIn, and Google+ .
View all posts by Ezra Siegel >

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