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The 5 Tiers of Mobile Customer LoyaltyKnowledge sharing

01/22/2016

Agenda

Introduction

Levels of customer loyalty

Related metrics

Tools

Reference

Customer loyalty is about being loyal to your mobile customers.

Introduction

Maslow’s Hierarchy of Loyalty

•Disloyal or unsatisfied customersUnattained Loyalty

•Satisfied customersSatisfaction Loyalty

•Frequently open your app, spend time, complete task, interaction, responsesEngagement Loyalty

•Customer acquisition, generate revenue, customer added valueConversion Loyalty

•Evangelize your app by sharing content or referring friendsAdvocacy Loyalty

Levels of Customer Loyalty

Levels 1 – Unattained Loyalty Customers who fall into this tier are seldom disloyal or

unsatisfied. Earning loyalty at this stage often comes down to two elements:

Building an app customers love

Humanizing your customers

Downloads• H

ow many people have downloaded your app? How many loyal customers do you potentially have?

Installs and registrations• H

ow many people have installed your app and set up an account?

Retention• H

ow many customers return to your app 24 hours after their first sign-in?

Related Metrics

Level 2 – Satisfaction Loyalty

A satisfied customer is worth little; a loyal customer is worth a lot.

Earning customer satisfaction comes down to an iterative process of collecting and analyzing customer insights

Using those insights to build an app and experience your customers love.

Related MetricsNet Promoter Score (NPS) • When asked, what proportion of your customers say they would

recommend your app to a friend?

Love Ratio• When asked a single yes-or-no question: Do you love this app?

Customer insights• Qualitative and quantitative questions regarding a customer’s

experience with your app.

To earn engagement loyalty, build incentives around engagement into the very core of the app.

Keep customers coming back with fresh content, well-timed pushed notifications, peer-to-peer messaging, or gamified achievements.

Levels 3 – Engagement Loyalty

Related Metrics

• How many times do customers launch your app in a month? In a week? In a day?Session frequency

• How long does the average customer spend in your app in a single session?Session duration

• How many pages (screens) of your app does a customer see in the average session?Screens per session

• What percent of my customers have had a meaningful interaction with my app?Interactions

• What percent of customers provide a respond to an in-app survey, or feedback form?Responses

Level 4 – Conversion Loyalty Conversion loyalty is a measurement of the value your

customers provide to your app. Before adding a new transaction option to your app, ask yourself

(or ideally, your customers): Is this something customers would be interested in? And if so, how much would they be willing to pay?

What is Value

Generate revenue

User-generated content

Social interactio

ns

Related Metrics

• How much revenue does the average active user generate?Average revenue per user (ARPU)

• What percent of mobile customers complete an action or event within the app that has been identified as a key value driver?Conversion rates for events

• How many customers want more out of my app and have signed up for additional content or beta tests?Opt-ins

Levels 5 – Advocacy Loyalty

Integrate app with social

networks and contact books

Reward customers for

sharing content or referring

friends

Make social sharing as hassle-free as possible

Prompt (nicely) for ratings and

reviews

Advocacy – transforming your customers into evangelists.

Related Metrics• Positive reviews boost app store conversion• negative reviews give you actionable insights on what steps you can

take to winApp store ratings and reviews

• How do customers amplify your message by sharing their experiences with others?Word of mouth

• How many app installs can be attributed to an individual customer’s promotion of your app?Referrals

• Identify your most profitable and loyal customers and reward or engage them accordinglyCustomer Lifetime Value (CLTV)

Tools Apptentive  Apsalar Branch Metrics  Mention

Reference blog.tapdaq.com