“User retention is the key!”
— Insights into three market phenomena.
The demographic dividend faded away.
According to the QuestMobile released 2019 China Mobile Internet Report, it showed that the MAU (Monthly Active Users) of mobile internet reached 1.138 billion, but the growth showed a continuous slowdown. The growth rate of average time spent daily per China mobile internet user declined from 22.6% to 11.8% in the first quarter of 2019. Then it shrank to 6% at the end of the second quarter. Although each user spends about 6 hours (358.2 mins) on the mobile Internet every day, organic growth has reached its limit.
Disconnection exists between user acquisition and retention.
Report 2019, Bond researched 55,000 consumers across a wide rage of key sectors in 20+ markets and found out among all the new brand registrations less than half of the number transferred to active users. Furthermore, loyalty program satisfaction faced challenges in many different fields. There was only 44% of interview objects reported very satisfied, which YOY (year-over-year) decreased by 47% compared to 2018.
Consumers tend to react to rewards with numbness.
In a credit card app research conducted by ETU, we studied 3500+ customers and summarized three main reasons below causing customer attrition:
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.
As the demographic dividend disappears, user retention becomes the next pivot in market competition. It’s common to see businesses already put up loyalty programs to acquire members of their brand. However, the expectation of a membership program controverts all the underperformed indexes such as DAU, WAU, and MAU. The gap between the Cost and the ROI of CRM challenges business long-term growth. Now, we need to step back and rethink how to rebuild a meaningful relationship between a business and its customers.
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.
01
What is Membership Loyalty Experience (aka MLE)？
The key of MLE is UX, which layouts throughout the entire interaction journey between a member and a business’ product/service. A driven focus on UX allows ETU to prioritize a member’s needs and rethink the possibility to raise user satisfaction and engagement level from multiple perspectives, such as motivation, demand, and emotion. With our professional approach, we guarantee the success of the program outcome to assist a business in Retention, DAU/WAU/MAU, and NPS.
02
Three tactic strategies of MLE:
Here are three main research areas:
1. User mental model research;
2. User behavior research;
3. Demographic and lifestyle research.
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.
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.
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.
03
Membership experience redefining and redesign!
ETU’s MLE program addressing underperforming member engagement issues with an innovative approach in the UX perspective. We are able to optimize the efficiency in ROI of a business’ CRM, with a lower cost of membership experience producing and a closer emotional connection between a member and a business’ brand/product/service. By completing the process of membership experience redefine and redesign, a member is willing to embrace a business’ brand and engage in their product/service on another level.
