Analysis

Mobile Application as an initiative for increased customer loyalty and satisfaction.

Tom StreaderLeave a comment

Professional Customer Relationship Management (CRM) enhances customer loyalty and customer satisfaction by managing the customer relationships with the organisation (Lee-Kelly et al, 2003). One method of CRM to increase customer loyalty and customer satisfaction for the retail sector is via application implementation for consumer usage.

 

Apps are extremely diverse, offering a wide spectrum of different capabilities from: being informative, interactive with games, event bookings and mobile commerce (m-commerce). Therefore, tailoring an application to meet the requirements of the organisation and customer base is essential to obtain benefits. (Gazdecki, 2016)

 

Apps are a useful business tool and marketing initiative and, if implemented effectively, can benefit the organisation by increasing customer loyalty, satisfaction and customer interactions (Nah, Siau and Sheng, 2005).

 

Mobile Application Implementation.

 

The Approach.

When approaching a mobile application as a digital marketing strategy, there are three key analysis’ considerations which will assist in a successful implementation: the requirements of the application; tips, guides and best practices; and risk (Tate, 2016). These considerations should be approached in the given order as it identifies: the need for the application, the best methods and approaches to designing the application and then highlights the risks. Once completed, the next step would be proceeding onto designing the app.

 

Google Search: Design a mobile application for my company
Google Search: Design a mobile application for my company
Google Search: Design a mobile application for my company
Google Search: Design a mobile application for my company

 

These two images highlight from a Google search the popularity of application building and the multitude of online application developers available.

 

 

 

 

 

 

Analysis of the requirements.

App designers make an application to the given criteria, therefore, analysing the customer base, target audience and requirements is a critical ‘need to know’ when carrying out the given initiative (Leppäniemi and Karjaluoto, 2008).

www.AppyPie.com – Business App Maker

Shankar et al (2010) and Magrath and McCormick (2013) designed frameworks to analyse customer requirements, customer usage and the applications offering for retail mobile applications. Both theories methodically analyse individual aspect, but Magrath and McCormick (2013) identify more in-depth thought provoking aspects relating to the initiatives. See Appendix A: Analysis Framework.

 

Although these frameworks have their uses, being from 2013 and 2010, they can already be considered outdated in the fast evolving digital world. Therefore, staying up-to-date with mobile application related models and frameworks is essential as there may be advancements and different requirements analysed by the app developers in todays’ digital world. (Valuecoders, 2017)

 

Tips, guides and best practice recommendations for design applications.

To implement an application effectively, analysis of current tips and guides helps positively tailor and influence the application design positively.Here is a summary of the information from the sites below which highlights a best practice for the whole application implementation process: identifying the requirements; confirming the layout and design; and final critiquing of the app. See Appendix B: The best practice.

 

  • NewGenapps.com: Guide and best practice recommendations –

 https://www.newgenapps.com/#1

  • AppyPie.com: Guide and recommendations of features for an app –

https://www.appypie.com/business-app-maker

  • Entrepreneur.com: App building guide –

https://www.entrepreneur.com/article/220448

Owing to the speed of development in technological environment, analysing the most recent guides and best practices at the time of implementation will ensure the best outcome.

 

A YouTube clip identifying what an app developer should do when designing the app and what the person commissioning the app should look out for! 

 

Risks.

As with any business related venture, there are always associated risks, therefore, analysing the risks to identify the feasibility and Return On Investment (ROI) is key for success (Willis.co.uk, 2019). Three important risks associated with developing and implementing an application are cost, users and data protection. See Appendix C: Risks associated with an application. Cost is the most important risk, as investing in a mobile application can put the organisation under financial stress: not only can the initial set up be expensive but applications also require regular maintenance and development. Furthermore, data protection is prevalent in the current business environment, which, if not  implemented correctly and complied with according to The General Data Protection Regulation (GDPR), can cause catastrophic financial repercussions to the organisation in terms of fines. (European Commission, 2018)

 

Conclusion.

Implementation of a mobile application as a strategic initiative to maintain CRM which enhances customer loyalty and satisfaction for the retail sector, can be a feasible strategy due to the substantial increase in mobile phone usage (Magrath and McCormick, 2013). Analysis of key factors and requirements of mobile phone applications has been made easier by the frameworks from Shankar et al. (2010) and Magrath and McCormick (2013) which, when collaborated with online guides, makes understanding application requirements significantly easier.

 

Although an application is useful for CRM, bearing in mind the risk factors of an app implementation and the drawbacks is essential. Not all customer segments have mobile devices, therefore, identifying thoroughly the customers and what percentage have mobile devices is important in order not to leave out specific consumer segments. Furthermore, analysing the cost factor and ROI is important as many retail organisation run on small financial margins of safety, therefore, making sure investment brings a return is essential for feasibility. (Deloitte, 2019)

 

Consequently, providing there is a need or benefit to the organisation, and value added for the consumer with a sensible ROI, then implementation of an App to benefit CRM and enhance customer loyalty and satisfaction is a good strategic initiative.

References:

 

Arthur, C. (2014). Apps more popular than the mobile web, data shows. [online] The Guardian. Available at: https://www.theguardian.com/technology/appsblog/2014/apr/02/apps-more-popular-than-the-mobile-web-data-shows [Accessed 28 Feb. 2019].

 

Deloitte (2019). Global Powers of Retailing 201. Transformative change, reinvigorated commerce. [online] Deloitte. Available at: https://www2.deloitte.com/content/dam/Deloitte/at/Documents/about-deloitte/global-powers-of-retailing-2018.pdf [Accessed 28 Feb. 2019].

 

Ertem, O. (2015). How has technology changed the business environment?. [online] Quora. Available at: https://www.quora.com/How-has-technology-changed-the-business-environment [Accessed 28 Feb. 2019].

 

European Commission. (2018). 2018 reform of EU data protection rules – GDPR. [online] Available at: https://ec.europa.eu/commission/priorities/justice-and-fundamental-rights/data-protection/2018-reform-eu-data-protection-rules_en [Accessed 1 Mar. 2019].

 

Gazdecki, A. (2016). 10 Ways Your Business Can Grow with a Mobile App. [online] Small Business Trends. Available at: https://smallbiztrends.com/2016/08/benefits-of-having-an-app.html [Accessed 28 Feb. 2019].

 

Howmuchcostanapp.co.uk. (2019). How much does it cost to design an app?. [online] Available at: https://www.howmuchcostanapp.co.uk [Accessed 28 Feb. 2019].

 

Lee-Kelly, L., Gilbert, D., Mannicom, R. (2003). How e-CRM can enhance customer loyalty. Marketing Intelligence & Planning. 21(4), pp 239-248. https://doi.org/10.1108/02634500310480121

 

Leppäniemi, M. and Karjaluoto, H. (2008). MOBILE MARKETING: FROM MARKETING STRATEGY TO MOBILE MARKETING CAMPAIGN IMPLEMENTATION. International Journal of Mobile Marketing, [online] 3(1), pp.50-61. Available at: https://www.researchgate.net/profile/Heikki_Karjaluoto/publication/252113084_Mobile_Marketing_From_Marketing_Strategy_to_Mobile_Marketing_Campaign_Implementation/links/567148a008ae2b1f87aee230.pdf [Accessed 28 Feb. 2019].

 

Magrath, V. and McCormick, H. (2013). Marketing design elements of mobile fashion retail apps. JOURNAL OF FASHION MARKETING AND MANAGEMENT: AN INTERNATIONAL JOURNA, 17(1), pp.115 – 134.

 

Nah, F., Siau, K. and Sheng, H. (2005). The VALUE of Mobile Applications: A Utility Company Study. COMMUNICATIONS OF THE ACM, [online] 48(2). Available at: http://delivery.acm.org/10.1145/1050000/1042095/p85-nah.pdf?ip=192.173.128.38&id=1042095&acc=ACTIVE%20SERVICE&key=BF07A2EE685417C5%2E7748C8603FAAB869%2E4D4702B0C3E38B35%2E4D4702B0C3E38B35&__acm__=1551195444_381e4f64dba9d98aa0d6840a8f430286 [Accessed 26 Feb. 2019].

 

NewGenApps. (2017). 10 steps: How to Create a Successful Mobile Application?. [online] Available at: https://www.newgenapps.com/blog/bid/219838/10-steps-to-create-a-successful-mobile-application [Accessed 28 Feb. 2019].

 

User Testing Blog. (n.d.). UI vs. UX: What’s the Difference?. [online] Available at: https://www.usertesting.com/blog/ui-vs-ux/ [Accessed 28 Feb. 2019].

 

Shankar, V., Venkatesh, A., Hofacker, C. and Naik, P. (2010). Mobile Marketing in the Retailing Environment: Current Insights and Future Research Avenues. Journal of Interactive Marketing, 24(2), pp.111-120.

 

Tate, L. (2016). Top Things to Consider When Developing a Business App. [online] ToughNickel. Available at: https://toughnickel.com/business/Top-Things-to-Consider-When-Developing-a-Business-App [Accessed 28 Feb. 2019].

 

Valuecoders. (2017). 11 Mobile App Development Trends To Look In 2019. [online] Available at: https://www.valuecoders.com/blog/technology-and-apps/11-mobile-app-development-trends-stay-2017/ [Accessed 28 Feb. 2019].

 

Willis.co.uk. (2019). Retail Practice Managing Digital Risks in the Retail World. [online] Available at: http://www.willis.co.uk/documents/Industries/16053_INSIGHT_Digital%20Risks%20in%20Retail%20World_v3.pdf [Accessed 28 Feb. 2019].

 

Appendices:

 

Appendix A: Analysis Frameworks.

Shankar et al (2010) proposed a conceptual framework for use within the retail industry for implementation of an application looking at key areas split into three segments. The framework focuses on the consumer being the central focus, highlighting what the consumer might use a mobile application for, properties of the application and features of the application.

(Shankar et al., 2010)
(Shankar et al., 2010)

Although this model is useful for logically analysing the three key aspects of mobile application for the consumer, it has its limitations in that the framework focuses on a mixture between mobile applications and mobile viewing of organisations websites. Moreover, the framework looks at the positive aspects of using a mobile to access a website, rather than analysing the benefits of a downloadable mobile application. (Shankar et al., 2010)

 

Magrath and McCormick (2013) completed a literature review identifying design similarities and differences between e-commerce and mobile applications, resulting in the design of a framework which separates analysis into four subdivisions to analyse the requirement in relation to implementing an app. This framework is extremely thorough and advantageous for identifying which features would be required on an application (Magrath and McCormick, 2013).

(Magrath and McCormick, 2013)
(Magrath and McCormick, 2013) – Unfortunately, the quality of the image is poor as it was a low resolution image uploaded to the academic journal.

 

While both frameworks have their similarities, Magrath and McCormick (2013) seems to go further in-depth with the analysis. This could be due to the 3 years difference between when the journals were published, as within that time frame considerable more research, development and innovation occurred in the technological business environment. (Ertem, 2015)

 

 

Appendix B: The best practice.

The initial step is identification of which features and functions are required by the app such as: reserve products, purchase products, see product information, book events via a calendar and view digital media. This information can be conveyed to the chosen app developer to make sure they can meet the requirements.

 

Once this information is confirmed, the rest of the app implementation process is relatively simple in terms of an app developer producing the product to the requirements such as holistic design in relation to layout and colours matching any corporate colour schemes. The design layout relates to User Experience (UX) and User Interface (UI): two prevalent mobile application practices which have a profound effect upon users (User Testing Blog, n.d.). However, if the app developer is reputable then these practices will have already been taken into account. (Babich, n.d.)

 

The final stage is critiquing the app as it progresses through the development stage and while being tested, making sure the app meets the requirements and will fulfil the needs of the consumer. SEE FIGURE.

 

 

Appendix C: Risks associated with an application.

Cost.

SMEs often operate on a low financial margin of safety, therefore, making sure every penny is allocated for justifiable and beneficial reasons is crucial. With the implementation of an app, the most substantial cost is the design and launch of the app, which can vary from £1,000 up to £10,000’s, dependant on the platforms it is made available on and whether basic or advanced features are required (Howmuchcostanapp.co.uk, 2019). When analysing cost of the app for feasibility, looking at the future of the business environment and how lack of an app could hinder sales, customer loyalty and customer satisfaction should be taken into account.

Lack of users.

The risk of cost interrelates to the amount of users. If the app does not get downloaded/used, then it becomes an expensive exercise with a low ROI. To reduce the likelihood of this risk, is it essential to make sure the app offers value to the consumer and that the app is appropriately tailored towards the organisation’s clients. Furthermore, the organisation employees need to support the strategy, push the information to the consumers and influence them to interact with the app. Lack of users can be due to the application visibility: how easy it is for the consumer to find and download, if they are informed about the application by the employees and by how well the UI and EX has been designed

GDPR/Data security.

Since the implementation of General Data Protection Regulation (GDPR) legislation, data protection is n at the forefront of organisations best practices.GDPR impacts on cost when designing an app, as a more secure app requires more advanced technologies. The cost is influenced by the functions and information held on the app as these directly relate to the level of security which is required.

 

 

A newbie digital marketers analysis of an emerging companies website..

Tom StreaderLeave a comment

Identifying a local emerging company: considering briefly what they offer and what the customer experience is like when using their website.

The emerging company.

Cadence Performance is a well renowned friendly cycling hub. The key features that sets them apart from other cycling shops and hubs is their industry leading focus on bicycle fitting, the warm and inviting atmosphere (Which isn’t often from bicycle shops) and the connections with all manner of professionals within cycling industry. Cadence started in 2012 with a single premises and now has expanded to four different sites across the south of the UK. Cadence Performance also offers other services and testing that go along side bicycle fitting which are: VO2 max, Lactate threshold, blood test, body composition analysis and Wattbike studio cycling classes.(Cadenceperformance.com, 2018)

In today’s modern technology fuelled competitive business environment, having an effective website is crucial to stay competitive. This is due to consumers’ daily relationship with digital media platforms that are used to find solutions and information.

It would seem apparent that Cadence Performance utilises digital media platform which can be found on the internet via their website, Facebook, Twitter and Instagram. The different media platforms have varied benefits depending what the ‘customer persona’ needs and wants are. Therefore, utilising the different platforms for these personas is invaluable. Kristi Hines gave a great example in a blog post that stated ‘when you’re looking for something, such as a plumber, MOT centre or physio, you tend to use search engines such as Google, Bing, Yahoo and so on to find them. Whereas, social media is fantastic for recommendations, peer reviews and fast contact methods’(Hines, 2018). Social media has the great benefit that as an organisation you can reply and resolve issues in real time efficiently, reducing any negative feedback to the organisation. Conversely, on search engines, negative feedback can affect your online reputation with the results/reviews high in the listings depending where the review has been left, which can spiral out of control with multiple inputs from other online users.(Hines, 2018)

 

The role of the website.

Cadence Performances website is designed to inform users of what the company offers, entice customers and to assist with online booking availabilities for events and services. The website neatly links up to all four stores showing real time availability for events and services, making it user friendly for comparing availabilities across stores rather than the need to open up four separate tabs and flick between them.(Cadenceperformance.com, 2018)

 

Customer segments.

Identifying your customer segments has always been a tricky area, and finding the ‘ideal’ way to separate your customer base is challenging (Rouse, 2018). It seems like a relatively simple idea, and if only it was as simple as cutting a cake into quarters (Rouse, 2018). In fact, you have to take the customer specification such as: socio-demographics, background and gender, all into account to make valid and justified categorisations(Rouse, 2018). Making a brief guestimate at what Cadence Performances customer segmentations criteria could be:  age range, location, spending data within the shop and purchase history (Chitharanjandas, 2018). Customer segmentation can be used to identify who the customer is, what they will like and how to effectively market to them.

Customer persona.

A Customer personas is effectively a fictional representation of the perfect or ideal customer that the given organisation wants(Chitharanjandas, 2018). There are four key sections to identifying a customer persona: Who, What, Why and How. Please see Appendix 1 for an elaboration on ‘Customer persona’. Each of these sections entails  a couple of sub sections. Taking a quick look at Cadence Performances customer personas:

Customer A: Who Middle age. What Currently interested in taking part in social cycling. Why interested in ways to improve one’s cycling performance and likes to take part in the social side to cycling. How Cadence is a cycling hub aimed for all abilities with a range of social activities from weekly rides, seminars and even a coffee shop to sit and have tea and cake. Please see Appendix 2 which highlights another more in depth customer persona which interrelates to Appendix 1.

 

Analysis and suggestions.

In my opinion, with the services that Cadence Performance offer reaching out to new customers who know what they need, such as a bicycle fit, necessitates having an effective and high ranking website. However,  social media platforms will be most effective for regular customer interactions, marketing and influencing purchasing decisions of additional purchases such as VO2 max testing, bicycle servicing or Wattbike studio events.

 

Googling key words to identify Cadence Performance SEO.
Googling key words to identify Cadence Performance SEO.
Googling key words to identify Cadence Performance SEO.

 

Cadence Performance seem to utilise Google paid ad boosting as when searching a few key words relating to the services Cadence Performance offer, which is an extremely competitive market within their location, Cadence Performance come in as the top ‘ad’ result the majority of the time. Although this identifies that Cadence Performance are utilising paid for search engine optimisation, their seems to be a lack of organic search engine optimisation (SEO) as within standard search results they are not on the first page unless searching for the company name.

Are there any recommendations for improvements on the website? Well, fairly minimal and maybe subjective recommendations.

Cadence Performance home page.

The key suggestion would be to update the ‘testimonials’ section. There are no testimonials on there; it is blank but still has the website banner which brings down the sleek and impressive perception of the website. Testimonials, in my opinion, are always great because they are useful and encouraging to see customer feedback, especially if one of the customer personas is someone who may not look at other sites where reviews are such as Facebook.

 

The location of the testimonials also seems to be in a slightly obscure location, I feel it would be well placed on the home page below the three key banners as it would be in a prime location being easy to view and should benefit the organisation.

My final recommendation is to link their shop sales website, Giant Crystal Palace, to the top section where the three banners of the Cadence Website are. Although, lower down it is stated bicycle sales, that section of the website is quite busy, and within the bicycle sales section it is missing one of their shop locations. If you were someone new to cycling and it was your first time landing on their website, it could be hard to ascertain that they sell bicycles, but also the amount of services that are offered could be overwhelming.

Overall,  Cadence Performance have a fantastic website: it is informative and easy to navigate for all diversities of consumers. The majority of pages have nice clear images, minimal but concise writing which is informative, but not mind blowing, and a user friendly layout for a good customer experience.

 

References:

  1. Cadenceperformance.com. (2018). Homepage. [online] Available at: http://cadenceperformance.com [Accessed 18 Oct. 2018].
  2. Chitharanjandas, C. (2018). Website Analysis.
  3. Hines, K. (2018). Search Engine Marketing vs. Social Media Marketing: The Showdown. [Blog] Social Media. Available at: https://neilpatel.com/blog/search-vs-social/ [Accessed 17 Oct. 2018].
  4. Rouse, M. (2018). What is customer segmentation?. [online] SearchSalesforce. Available at: https://searchsalesforce.techtarget.com/definition/customer-segmentation [Accessed 18 Oct. 2018].

 

Appendices:

Appendix 1

Who?

Background – job, career, family, key hobbies and interests.

Demographics – gender, age, location and income.

Identifiers –  demeanour and communication preferences.

 

What?

Goals – primary and secondary goals.

Challenges – primary and secondary challenges.

What we can do – to help our ‘persona’ achieve their goals and overcome their challenges.

 

Why?

Real quotes – about persona’s goals, challenges, etc

Common objections – why the persona would not buy the products/services.

 

How?

Marketing message  – defining the solution to the persona, enticing them.

Elevator pitch – selling the solution to the persona.

 

 

 

 

Appendix 2

 

Who

Middle age, currently working in an office job in London, Family with two children  18+

 

What

Wants to get fit, enjoy socialising or gain cycling related knowledge

 

Why

‘Road cyclists always seem to be very snobby, I feel intimidated and don’t know where to start’ ‘I haven’t tried it, I just feel it’s not for me, it all seems far too serious racking up 10s and 100s of kilometres.’

 

How

‘No matter what your ability or knowledge, everyone is welcome and we are here to focus on and help you.’ ‘We have set out to be a friendly cycling hub, we want everyone to enjoy themselves. We are more than a cycling shop and more than a cycling club, we are a cycling hub. If you don’t own a bike and have limited knowledge around cycling, or you compete at a high level, you are all welcome.’