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.
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).
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Although these frameworks have their uses, being from 2013 and 2010, they can already be considered outdated in the fast evolving digital world.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 –
- 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.
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).
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.
