One of the key attributes that everyone in the mobile industry is focused on is “stickiness.” This essential, yet indefinable, quality is make-or-break in generating customer loyalty, whether for subscription-based valued added services, or to generate an engaged user base to appeal to potential advertisers. It is also a key tool in combating churn, which can have a direct effect on a company’s bottom line.
According to a Deutsche Bank report cited by Apple Insider, the average iPhone customer has US$100 worth of content on their device. The cost of replacing this, and the complexity of moving data from one platform to another, means that customers are far more likely to remain within the same “family” when upgrading. This creates “unparalleled” levels of customer loyalty, which, unsurprisingly, rivals are keen to replicate.
Of course, Apple has long been recognised as a leader in locking customers into its ecosystem, and it has been argued that its tight control of its end-to-end proposition enables it to deliver an unrivalled user experience. But with Google also increasing the amount of content it offers Android customers, to include books and movies as well as apps, the content proposition of a platform is becoming increasingly important as a way to attract and retain subscribers.
With the low-hanging fruit in the smartphone market having already been reaped, there is a significant role for content to play in attracting new subscribers, who can then be converted to loyal customers as their consumption of products and services increases. Even if content is not seen as a massive money-spinner in its own right, its ability to play a key role in attracting and retaining customers should not be underestimated.
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