How Retailers Can Get M.O.A.R. From Mobile
Published on 5 Nov 2014
We’ve all heard the adages that 80% of your revenue comes from 20% of your customers or that it’s 5-10 times more expensive to acquire a new customer than to retain and sell to an existing one. One of my favorites is from Bain & Company, stating that increasing customer retention rates by 5% boosts profits by 25% to 95%.
Despite these accepted truths, it always seems like the industry’s predominant focus is on acquisition and on reaching the biggest possible audience through advertising and search marketing, which are largely one-and-done, transactional models of growth.
Advertising will always be important in the marketing world; you’ve got to be discovered and continually grow awareness. And digital advertising brings a lot of exciting elements, allowing you to gain more clues to user intent and location, as well as leverage programmatic automation.
But a disproportionate focus on acquisition over retention is dangerous; your business becomes hooked on regular infusions. It’s also a lazy way to approach mobile marketing — doing what’s worked in the past, but ported over to a mobile screen that holds a fundamentally different connection and purpose in consumers’ lives.
To maximize results this holiday season, retailers must do all they can to shake off this persistent reach-and-frequency, broadcast-era hangover, and finish what social media and content marketing started: growing an owned audience that they can directly interact with in more personalized, relevant and responsive ways.
Of course, owning your mobile audience is not without its challenges, but retailers can apply automation and a systematic process of Mobile Onboarding, Activation and Retention (M.O.A.R.) to lengthen app lifecycles, grow mobile loyalty and maximize success.
Read on to learn top tips to get MOAR from you mobile app audience.