A framework for measuring and monitoring mobile app loyalty

 
July 7, 2014

By Anke Corbin,

Splick.it SVP Sales & Marketing

When we hear the term “loyalty” from restaurant owners, they are usually referring to a tactical program like rewarding customer purchases with points that ultimately allow them to earn free food. Points are an important part of a loyalty program but earning and sustaining a customer’s real allegiance is in fact much more complex.

Native mobile apps are inherently good for loyalty because customers that commit enough to download a branded mobile app onto their smartphone are much more likely to be engaged with that brand. Proper communication and incentives through the app make the connection to the consumer all the more powerful.

An ongoing relationship with a customer can be segmented into phases and so can a loyalty program. Monitoring and measuring loyalty for a mobile app is easier if you understand which phase a customer is in and what the expectations are. Monitoring and breaking down mobile loyalty feedback can give you a better idea of where your overall strategy is succeeding and where it’s failing.

Here are the phases of a customer loyalty relationship.

Initial enrollment phase

The initial phase of a relationship is all about great communication and offering clear and meaningful value. During this phase, customers want to know what they get if they download the app. Some of their expectations include special offers, the ability to save money on their next purchase, and rewards for each purchase. They also would like the app to be useful and solve pain points such as having to wait in long lunch lines.

Measurable benchmarks for success:

  • App downloads
  • Registrations
  • Opting in to marketing messages such as push notifications and geo-location

Engagement phase

Once a customer has downloaded an app and registered, restaurants should entice the new member to actually use the app. Look for incentives to order, pay or accumulate loyalty points by providing a special offer, double points or another attractive promotion.

Measurable benchmarks for success:

  • Conversions: Revenue based and engagement based metrics
  • Increased frequency of ordering
  • Increased ticket size for orders
  • Increased Facebook likes, posts, shares
  • Increased Twitter followers, retweets, favorites
  • Creating content on social media
  • Advocacy: Sharing on Facebook, Twitter, word of mouth buzz, blogging
  • Redeeming rewards and offers

Value phase

There is no such thing as a customer for life anymore. Even the most loyal customer evaluates every touch point and interaction with a business. Each connection is an opportunity to win or lose the relationship. Providing ongoing value and excitement in a mature relationship isn’t unlike a marriage. It takes constant work and creativity to keep the passion alive. This phase is also when you can see if your investment in the relationship pays off depending if the customer continues to engage or loses interest. A loyal and engaged customer over time has significant value to the restaurant and each investment into that relationship will pay off over and over again.

Measurable benchmarks for success:

  • LTV: Lifetime value analysis for customers and ROI for each promotion and loyalty marketing campaign
  • Lapsed users cadence: Measure if customers come in at the same frequency or if there is a drop off
  • Re-engagement: Measure success rate of re-engaging lapsed users and bring them back as loyal customers
  • All of the metrics from the Engagement Phase but viewed over time with trending

By looking at customer phases as well as monitoring and measuring different aspects throughout the relationship, a restaurant marketer can get a much better sense of what works and what doesn’t and the likelihood of a successful loyalty program is increased significantly.

 


Topics: Loyalty Programs , Marketing / Branding / Promotion , Online / Mobile / Social

Companies: SplickIt


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