May 25, 2010

Mobile Marketing: New Channel Preference

When a customer or user chooses the new channel as a first interaction with a business, existing channels can struggle to capture the fancy of the customer.

Here's our table. Let's look at the app-only audience.


March Visit Use Website No

Website App + App Activity Totals
Visit Website 10,000 50 100 20,000 30,150
Use App 100 300 200 1,000 1,600
Website + App 50 250 300 1,000 1,600
No Activity 20,000 400 400 0 20,800
Totals 30,150 1,000 1,000 22,000 54,150

Here's the "Re-Visit Rate" for those who only use the app:
  • Re-Visit Rate = (100 + 300 + 200) / (100 + 300 + 200 + 1,000) = 37.5%.
Now, let's calculate the re-visit index for each channel combination:
  • Re-Visit Index, Website = 100 / 600 = 16.7%.
  • Re-Visit Index, App = 300 / 600 = 50.0%.
  • Re-Visit Index, Website + App = 200 / 600 = 33.3%.
The clear preference of the customer is to use only the app. Some customers/users will use both the website and the app.

When you see trends like this, you know that the app is going to win, long-term. And if the app is going to be the preferred channel, long-term, you have a responsibility to educate the rest of your management team about the implications of this shift in customer behavior. The new channel is clearly going to command the interest of the customer, and needs to be developed accordingly. Conversely, the existing channel is going to experience a slow customer drain over time --- if the existing channel is responsible for generating advertising revenue, then a lot of thought needs to go into how your brand will maintain a steady diet of advertising revenue when channel shift really takes hold.

1 comment:

  1. Just wondering if more websites were mobile optimized if the results might be different ?
    Your thoughts ?
    Love your posts, they always make you stop and re-think

    Kevin Ferrasci OMalley


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