6 Essential Stats that Prove Having A Mobile App Is Right for You
As a small business owner, it’s essential to retain the customers you have as attracting new customers costs nearly seven times the amount it does to retain an existing one. What’s also important is that your customers are 14 times more likely to purchase from you than a new customer.
Here are the facts:
- 86% of consumers indicate loyalty is primarily driven by likability and 83% of consumers say trust. (Rare)
- 47% of customers would change to a competitor within a day of encountering poor customer service. (24/7)
- 60% of mobile coupon users say they will “gladly switch brands to use a coupon” (GfK)
- Almost 30% of SMBs estimated that 71-90% of their customers visited more than once last year. (Belly)
- 32% of executives say retaining existing customers is a priority (Forbes)
- 66% of companies that saw a decrease in customer loyalty over the past year do not have a mobile app (Apptentive)
Building a successful business is a numbers game. So how do you get and keep more customers at lower costs?
One of your priorities is to focus on spending less on advertising and more on retaining your customers and then leveraging those loyal customers to bring in new ones. Having your own branded mobile app is one of the best ways to increase customer loyalty and retention
Recent surveys show that 75% of satisfied customers will recommend your service to others, and a positive reference from existing customers is much more likely to influence people than a brand’s own marketing messaging. In other words, your existing customers are a goldmine. They require less investment, they buy more, and they bring new customers with them. With a mobile app, you can even ask for reviews from customers and what is so great about this strategy is that customers who download your app will generally write a positive review since they are loyal customers.
Why You Should Be Using Apps to Build Customer Loyalty
Here are a few more mobile app tips for customer retention:
Loyalty programs have proven time and again to be positive retention builders in the hospitality business. The day of the cardboard card, which is often lost or responsible for slowing the smooth flow of customers through the checkout process, while they find “their” card should be long banished. Apps allow loyalty programs of all sorts to be stored and easily accessed from the very device they have with them 24/7 – their mobile phone.
Rewarding customers for their loyalty is a positive reinforcement of your business and can often be the deciding factor in a customers purchasing decision. Add additional rewards to this through mobile coupons or geo located offers and you are constantly making your business top of mind and again positively promoting purchase intent. Make it easy for your customers to share offers or recommendations about your business and your customers will happily build your business for you.Adapt before it’s to late.
Mobile apps also provide you with something else very valuable. Data. By using the apps analytical data you can see what features and interactions with your business are important to your customers and modify your offerings to meet their needs. If high numbers of customers are using your in app ordering service, it indicates wait times are an important factor in their purchasing decision. Regular coupon redemption shows affordability is a major contributing factor. Regular sharing of an app or offer is a sure sign your customers are satisfied with your service to the point they are recommending you to their social networks
Long story short, don’t fall behind your competitors when it comes to your investments in new technology such as building a mobile app for your small business. Data shows that customers want to download and use mobile apps from their favourite small businesses. Don’t ignore the data that is right in front of you!
Focus on Customer Service
Ninety-seven percent of customers see customer service as the most important factor when choosing a business. And customer service weighs most heavily on customer satisfaction and net promoter score — or the likelihood that they’ll recommend your business to someone else. Apps with quick contact buttons and the ability to create easy interaction between the customer and the business sites reduce customer effort, reflecting positively on your business as a whole.
A mobile app is a great way for customers to be in touch with your business 24/7. Whether that’s for general business information or to ask you a question about your business. In addition, great customer service can come as a surprise. For example, mobile apps give you the ability to offer in-app only sales and updates on events which customers really appreciate.
Does Retaining Customers Matter in the App Industry?
Absolutely. If you create a mobile app, you may wonder how beneficial user retention really is to your bottom line. After all, deleting an app is easier than installing one — it requires little to no effort to part ways. But as it turns out, app users are far more likely to return back to your business if the right features and incentives are in place. In some ways, it’s a winner-takes-all market, and you need to stay ahead of the curve with your competition. With a mobile app you give your customers an outlet to share their experiences across Facebook, Twitter, and with their friends. Also, you just can’t ignore the facts anymore regarding how mobile apps can help grow a small business.
The more increase your retention, the wider your potential user base grows.