“User retention is the key!”
— Insights into three market phenomena.
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The demographic dividend faded away.
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Disconnection exists between user acquisition and retention.
Consumers tend to react to rewards with numbness.
1. 30.5% of inactive users consider the rules of reward application are complicated.
2. 32.3% of users show no interest in the reward in a system.
3. 28.4% of members are not familiar with how to use the bonus in a program.
We understand your business might be facing challenges listed below:
i. Market competition becomes overwhelming;
ii. Sales growth slows down;
iv. Customer buying behavior is motivated by discount, not brand loyalty;
v. The operation of CRM receives low ROI;
vi. Underperforming DAU/MAU proves low user engagement.
ETU’s Membership Loyalty Experience methodology hones UX empowering CRM to regain user engagement.
One significant finding in the Loyalty Report 2019 shows 4 out of 5 driving forces impacting member’s satisfaction and engagement level are related to UX. When user acquisition becomes a stone stopping a business’s sales growth, UX is the Mjolnir (ultimate hammer) required in maintaining CRM.a) Member persona generated from three steps of user research.
We center member’s needs and dive deep into a member’s interaction within a membership program. User research includes emotion study, behavioral study, member lifestyle, and member scenarios, which leads to member persona crafting.Here are three main research areas:
1. User mental model research;
2. User behavior research;
3. Demographic and lifestyle research.
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b) Addressing member engagement issues with three driving forces.
To tackle the loyalty issue, we leverage some consumer sensitive factors to lower cognitive difficulty. Meanwhile, we provide a solution to improve the CRM rules to engage members and redesign every action in a membership program to retain their member loyalty along with the sales growth.Here are three driving forces:
1. Price motivation means a member is able to pay less for the same product or service;
2. Success motivation means a member is able to receive recognition as they grow;
3. Emotion motivation means a member is able to feel and react to the hospitality of a business.
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c) Four systematic strategies co-create a membership experience ecosystem with high efficiency and healthy performance.
A membership system is the media and connection between a business’ brand/product/service and its user. To maximize the impact of business service on multiple channels, a valuable membership system should start to plan out four types of sub-system: currency, bonus, task, and growth.Here are the details of four sub-systems:
1. A currency system matching member consuming value;
2. A bonus system matching member core cognition to the product;
3. A growth system matching member mental model;
4. A task system with high ROI.
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