Just a fingertip away
Apps are a promising touchpoint in marketing: By helping users with their daily challenges, these small applications are learning more and more precisely what users want. Getting the app onto a user’s phone remains a challenge—but there are new approaches to solving it.
It’s gotten late, and it’s still quite a few minutes« walk home. That’s when the scooter on the sidewalk comes in handy—but there’s a major hurdle. The reason the tired pedestrian decides against it in the end comes down to three and a half minutes: They have to download the app onto their phone, enter their personal information and payment details—phew, is it really worth the effort? »Many users answer that question with a ‘no,’” observes Oliver Stäcker. As CEO of the mobile experience service provider Gotomo in Zurich, he’s currently working on solutions that remove such hurdles.
«The app offers a shopping experience unlike anything we've seen before.»
The research is worth the effort—because apps have fully established themselves in marketing. Since users always have their smartphones with them, there are many new opportunities to engage with customers through these small applications. The most important requirement: Apps must offer clear added value by helping users complete various tasks. Whether it’s unlocking scooters or cars, controlling the heating in a smart home while on the go—or shopping. Especially during the COVID-19 pandemic, customers prefer contactless options. This is a need that Migros Aare is addressing with its first staff-free store: Since February, the retailer has been testing the Voi Cube in Grenchen—a walk-in vending machine where customers can purchase some 500 personal-use products around the clock. To enter, customers need the Voi Cube app, which generates a personal QR code and opens the doors to the 18-square-meter store. At the end of their shopping trip, they pay using the app at the self-checkout counter. The added value is clear: The app offers a shopping experience unlike anything that has come before.
Contact Becomes Bonding
Such app services also make it possible to strengthen customer loyalty. This is because the data collected through user interactions gives marketers ever deeper insights into what customers want—and allows them to subsequently present customers with tailored offers. «A pregnancy app can tailor information, support, and products to the newborn’s age. A recipe app can take friends» tastes into account, thereby not only creating a personal connection with the user but also enriching shared dinners in real life,« says Adriano Segalada, Software Architect at Namics, listing the options. »And what if, as the publisher of a wine app, you started bringing customers into dialogue with the winemakers of their favorite wines?« To design the right app for each company, Segalada works closely with his clients. As a starting point, he needs »at least a vision,« he says. »It doesn’t have to be precise; we can also question and refine it together.”
«The clip is a stripped-down version of the app that allows users to use it without installing it.»
Once the right app solution has been found, however, the most difficult problem remains: How can the app be brought to the customer’s attention? The traditional approach involves references on packaging or through other media in the marketing mix that promote the app. A good ranking in the app store also pays off—no question about it. But often, it all comes down to those three and a half minutes that make consumers hesitate—and, as in the case of the scooter, ultimately prevent them from using the app. At a recent conference, Stäcker described an innovative way to win over customers. He draws on Apple’s so-called App Clips as the basis for this. «They set a new standard for low-barrier onboarding,» says the Gotomo CEO. The clip is a stripped-down version of the app that allows users to use the app without having to install it.
In practice, it works like this: A pedestrian on their way home can use the scooter without having to create an account or link a credit card. Simply by holding their phone up to the handlebars, the Clip app opens via Near Field Communication (NFC). Since the Apple ID is already stored on the iPhone and payment is handled through Apple Pay, the process takes just over 20 seconds. The user can quickly head home. For Stäcker, this is the solution to the problem: «Who wants to install a separate app—and then fill out form fields and enter credit card information—just for a one-time task that might take five minutes? The time it takes is completely out of proportion.»
Increase the use of existing apps
Gotomo has already developed an application scenario for Spar. A digital screen displays coffee, shower gel, and toothpaste: After the user activates the App Clip via the NFC contact on the poster, they can order the individual products by scanning a barcode, pay via Apple Pay, and have them delivered directly to their home. «This tool allows us to significantly increase usage of an existing app,» the Gotomo CEO explains. According to Stäcker, it doesn’t take much to get the user to ultimately download the full app from the App Store: A supermarket could entice customers with discount points that are credited to the full version of the app. For a fitness provider, the added value could lie in offering a personalized program tailored to the user’s preferences instead of just a quick workout session.
Added value depends entirely on needs
What exactly constitutes added value always depends on the customer’s current needs. Marketers must adapt to this as well. The best way to do so is by continuously soliciting user feedback, advises Segalada: «Ideally, feedback can be provided directly within the app—preferably through a dialogue rather than just a one-way communication from the user to the provider,» says the Namics developer. «It’s just like in life: the more someone is involved and listened to, the more positive engagement and initiative they develop.»
Respect customers' privacy
In 2021, this also includes respecting user privacy. «As an app publisher, you’d be wise to collect data as sparingly as possible,» recommends Segalada. Most users today are put off when they learn that their data is being shared with third parties, according to the software specialist: «Especially when it comes to major social media networks that have been rocked by data scandals.» Companies should therefore address this need and let users choose which of their data is collected and used. Ultimately, trust is also an added value; once it’s gone, all the effort was for nothing.
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«Clearly Communicate the Added Value»
m&k: Katarina Stanoevska-Slabeva, apps are an important marketing channel. What is their purpose?
Katarina Stanoevska-Slabeva: As personal touchpoints on smartphones, apps help marketers establish, maintain, and develop customer relationships. Apps have the advantage of always being close to the user and establish direct contact through push notifications.
What goals can be pursued with this?
Customer relationships through apps can be tailored to individual needs, as they are often based on personal data collected via the app. Companies can use this to establish traditional customer relationships, such as those used in retail through loyalty programs and to assist with the shopping process. In addition, there are coaching relationships, such as those maintained by fitness and health providers, who use an app to help customers lose weight or quit smoking.
The integration of apps with smart products is a relatively new development. Apps are used as remote controls in the smart home, collect usage data, and enable a new interactive relationship with physical products. This gives manufacturers insights into how, where, when, and in what ways their products are used, and allows them to proactively manage usage through push notifications.
A user's cell phone doesn't have unlimited storage space: So how can companies ensure that their app seems relevant enough to their target audience that they'll download it onto their phones?
By offering relevant added value to users. Retail apps can inform users about promotions at the point of sale or help them with their shopping lists. It’s also important to clearly communicate the app’s value so that users take notice. A dedicated launch campaign for the app, as well as references to the app through other touchpoints, helps raise awareness of it among the target audience.
