Customer retention and loyalty are more important than ever in iOS 14.5 and later
Posted: Wed Dec 18, 2024 4:19 am
User retention has always been a key factor for the success of any app. For example, in the eCommerce vertical, acquiring a new customer is 5-25 times more expensive than retaining an existing customer. With the changes introduced by iOS 14 regarding user acquisition data, as well as upcoming changes to email tracking, retention has become an even more important and competitive issue. For brands focused on an omnichannel presence (app, web, and email), privacy changes can make it more difficult to deliver a consistent customer experience.
Why is loyalty important?
Data from Adjust’s App Trends report indicates that eCommerce app retention is relatively high compared to benchmark verticals, with a 13% retention rate on day 7 and 8% on day 30. However, when you consider that the global average eCPI for an eCommerce app during Q4 2020 was $1.56, with brazil business fax list higher prices in more developed eCommerce markets, it’s clear why getting a return on that investment is so important. Loyalty is a key tool for retaining customers in any vertical, not just eCommerce. By increasing customer retention by just 5%, profits can increase by 25-95% . To ensure you cover the cost of the initial setup, you need to focus on loyalty.
However, this is where developers of customer-facing apps start to encounter the challenges brought on by iOS 14. With less deterministic data to evaluate channels and less precise targeting to find users interested in the brand’s offerings, the upfront costs of finding high-quality, high-converting users are increasing. This is coupled with a decreased ability to deliver relevant, personalized ads.
Personalization is a powerful tool in modern commerce, with 91% of customers more likely to purchase a brand’s products if it presents them with personalized offers and recommendations . However, if you don’t convince your users to give their permission, personalization becomes more difficult. Loyalty programs and incentives can be a good option to ensure you’re using zero-party data from your customers and avoid privacy concerns.
Zero-Party Data
Forrester coined the term “zero-party data” and states that this term describes “Data that a customer intentionally and proactively shares with a brand, which can include preference center data, purchase intentions, personal context, and how the individual wants to be recognized by the brand.”
When customers sign up for loyalty programs , answer surveys to earn incentives , or receive discounts in exchange for certain user behaviors , you can build up a bank of data that customers eagerly agree to share. Because zero-party data is collected directly from the user, it is reliable and allows you to be confident that the customer wants to hear from you. Users who provide zero-party data also want communications to become more personalized, so they are eager to help you offer them more relevant opportunities to convert.
Why is loyalty important?
Data from Adjust’s App Trends report indicates that eCommerce app retention is relatively high compared to benchmark verticals, with a 13% retention rate on day 7 and 8% on day 30. However, when you consider that the global average eCPI for an eCommerce app during Q4 2020 was $1.56, with brazil business fax list higher prices in more developed eCommerce markets, it’s clear why getting a return on that investment is so important. Loyalty is a key tool for retaining customers in any vertical, not just eCommerce. By increasing customer retention by just 5%, profits can increase by 25-95% . To ensure you cover the cost of the initial setup, you need to focus on loyalty.
However, this is where developers of customer-facing apps start to encounter the challenges brought on by iOS 14. With less deterministic data to evaluate channels and less precise targeting to find users interested in the brand’s offerings, the upfront costs of finding high-quality, high-converting users are increasing. This is coupled with a decreased ability to deliver relevant, personalized ads.
Personalization is a powerful tool in modern commerce, with 91% of customers more likely to purchase a brand’s products if it presents them with personalized offers and recommendations . However, if you don’t convince your users to give their permission, personalization becomes more difficult. Loyalty programs and incentives can be a good option to ensure you’re using zero-party data from your customers and avoid privacy concerns.
Zero-Party Data
Forrester coined the term “zero-party data” and states that this term describes “Data that a customer intentionally and proactively shares with a brand, which can include preference center data, purchase intentions, personal context, and how the individual wants to be recognized by the brand.”
When customers sign up for loyalty programs , answer surveys to earn incentives , or receive discounts in exchange for certain user behaviors , you can build up a bank of data that customers eagerly agree to share. Because zero-party data is collected directly from the user, it is reliable and allows you to be confident that the customer wants to hear from you. Users who provide zero-party data also want communications to become more personalized, so they are eager to help you offer them more relevant opportunities to convert.