Customer Retention with Mobile Apps – The Morawa Case

Morawa uses its mobile app as part of their digital strategy to retain its customers. Why is retaining customers so important? It’s important, because the cost of acquiring a new customer is about 10 to 16 times higher than retaining a customer. According to research from Harvard Business School, just by increasing the customer retention rates by 5 percent businesses can increases profits by 25 percent to 95 percent. To put it differently: keeping customers is good for your business.
There are several strategies to do this: loyalty programs, promotions, lotteries, etc. However, there is one strategy that is often overlooked: useful information. Simply by reaching out to customers with useful information, businesses stay in the back of the mind of the customer and create a positive connection.
In the case of Morawa, it’s rather straightforward: it’s all about books. This includes new releases, reviews, interviews with authors, recommendations of the Morawa team or information about book readings. By providing this information in their mobile app, Morawa is able to establish a base of recurring daily app users.
To grow the base of daily users, the use of push notifications is a very important aspect of the retention strategy. Push notifications are extremely powerful when it comes to engage customers. Using push notifications Morawa is able to create spikes of daily users (up to 100%). These spikes have a positive effect on the daily app user baseline by creating a kind of afterglow. The number of daily app remains up to 15% higher than the days before – this effect lasts for several days. With well timed push notifications, Morawa was able to increase the baseline by 400% in the course of a year. It is like training for endurance sports: training sets followed by well timed breaks increase your endurance – too much training with too short breaks are counterproductive, the same is true for breaks that are too long. The sweet spot for Morawa are two weekly push notifications. In addition, with interactive (or rich) push notifications including a dynamic call to action, Morawa brings up to 50% more customers directly to the mobile store in the Morawa App. Basically, if customers have to chance to click a button in the push notification the are very likely to do it.
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