Turn mobile app engagement into profitable action - Beyond Compliance report
If you want to achieve growth and success in mobile first business, you must turn user engagement into action. Completing a transaction, purchase, or application form within a mobile app should be simple, intuitive, AND compliant to get more business and acquire new customers.
The short step from engagement to action
Mobile engagement is vital, but alone it is not enough to grow your business. Engagement must turn into action, where customers buy and use profitable services.
No step in the customer journey is unimportant. During the onboarding, you need to minimise the abandonment rate as much as possible. Once onboarded, you need to keep the attention of the user. This is easier said than done. Research shows that only around 3% of mobile apps are used regularly a month after being installed.
If we can overcome these hurdles, the scene is set to turn every engagement into an opportunity for action - ideally, a transaction that results in revenue. But if a business cannot move its users from engagement to transaction, all the previous effort is essentially wasted. The engaged users won’t turn into paying customers.
Neobanks and the challenge to move beyond engagement
Neobanks are a good example of businesses that struggled with turning engagement into action. Over the last decade, Neobanks won many customers. Behind their success are several factors, but arguably the biggest factor is that these banks have taken an innovative approach to customer onboarding. They offer a slick onboarding process that can be completed on mobile devices and is much faster compared to “traditional” onboarding procedures.
The great user experience ensures that future app engagement is high. Many customers use the banking apps daily to check balances and transactions. So, all the hard work these banks put into optimising their user interfaces pays off to get engaged customers. But only recently some of these banks have become profitable. This is caused by high customer acquisition costs, but also by the low profitability of checking accounts. New customers start using the banking services with checking accounts but do not purchase more profitable services like loans and premium accounts. Here, the challenge of turning engagement into profitable action became obvious.
How to make the final step from engagement to action
The problem with taking the final step from engagement to action is that it’s not a single step. It requires three different steps that need to be taken one at a time at customers’ pace. We’ll tell you everything about it in our “Beyond Compliance” report.