Mobile apps No. 1 way to build CRM: expert

By Rachel Lamb
August 26, 2011

The most effective way to build brand loyalists and customer retention is through mobile applications because of their engagement and interactivity.
Many luxury brands have already developed mobile apps and have seen tremendous success in loyalty. Although brands should never have just one form of mobile marketing, some experts believe that mobile apps have an increased likelihood of effective CRM.

“The most effective measurement of CRM is applications,” said Dale Carr, founder/CEO of Leadbolt, Sydney, Australia. “They are interactive and selective, so people using them are most interested in a specific area or target,” he said. “There are also many technologies available that adds an extra layer of interactivity to make effectiveness even higher.”

App tap
Depending on the type of luxury brand, mobile apps can provide different levels of CRM.
Luxury retailers present multiple opportunities for mobile app marketing.
Some apparel and accessories brands such as Chanel include runway videos of the newest collections, as well as a gallery of looks that consumers can view (see story).
On the other hand, some retailers use mobile as a way to introduce brand personalities.
Gucci creative director Frida Giannini’s personal product choices and Diane von Furstenberg’s music playlists in their respective apps help to achieve CRM by connecting users with the brand while simultaneously letting them behind-the-scenes.

Luxury automakers can also build CRM with mobile apps.
Brands such as Mercedes-Benz release multiple apps so that consumers who know exactly which branded vehicle they want can have full access to every detail (see story). On the other hand, another type of CRM is having the customer trust the brand. For instance, Audi of America built a roadside assistance app to aid consumers when they are stuck on the road or need directions (see story).

Luxury hotels can use mobile apps to build CRM, as well.
Hotels such as the Luxury Collection’s SLS in Beverly Hills launched an app that described the property’s amenities and enticed visitors with special gifts (see story). Meanwhile, Mandarin Oriental launched an app that courted guests before and during their stay since consumers could book reservations but also order room service and call the concierge from an iPad app in their rooms (see story).
“Luxury brands traditionally have been hesitant to get into mobile,” Mr. Carr said. “But embracing and using mobile to get to the target audience is a good way to do so.”

Surf’s up
Branded mobile apps are customer acquirers and retainers, but brands still should not discount other types of mobile marketing.
For instance, banner ads have been used by brands from Jaguar to Tiffany & Co. in-app and on mobile sites to drive consumers to dealerships, stores and online.
“Banner ads are more ubiquitous than branded apps,” Mr. Carr said.
Additionally, brands should not discount mobile-optimized sites.
Luxury brands typically launch apps on one device and then expand. However, mobile sites can mostly be optimized to be viewed cross-platform.
This will help brands reach a larger breadth of consumers.
“Mobile Web is something that is pretty important,” Mr. Carr said.
“Never discount the fact that people still surf sites from their devices,” he said. “It’s critical that mobile Web is something that should be taken into account.”

Read this article on Luxury Daily

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Posted on August 29, 2011, in Hospitality Digital Marketing Services, Luxury Brand Influence and tagged , , , , , . Bookmark the permalink. Leave a comment.

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