Increasing Revenue Sixfold with a Complimenting App

In Philip Kotler's book, Marketing 4.0, he talks about how Macy's managed to increase their revenue sixfold thanks to an omni-channel approach. At the centre of this was their mobile app that greatly complemented the department stores and helped to raise a loyal and engaged customer base.

How can an app help?

Macy's was already a well-established brand with a large revenue stream and hundreds of stores around the US. They noticed how customers were increasingly using the internet and especially mobile devices to shop and engage with brands. This was (and still is) the trend not just in the US, but everywhere in the World. Consumers like to compare and connect with brands both in the physical and virtual world.

The Macy's app was able to take advantage of this trend and provide consumers with a channel to engage with their brand 24/7 while providing valuable community offerings such as points and personalisation. This built loyalty and attracted more people to spend money at Macy's, both in store and online.

Build Connection

The prime use of a mobile app for existing businesses like Macy's is to gather visitors and turn them into customers, then to loyal customers. Picture this, million plus foot-traffic passes through stores yearly. What if this traffic could be engaged and kept engaged after they leave the store?

This is a long-term game, it doesn't mean that consumers will rush to download an app and start purchasing wildly through e-commerce. It means that over time, one-time visitors can understand and align to a brand even before making a single purchase.

Unlock New Revenue Channels

An app around a brand can unlock new revenue channels by providing value in-app for their user base. A key asset of a large brick-and-mortar business is that they are known well and receive high foot-traffic. Unfortunately, a lot fail to monetise or engage this.

By onboarding a percent of the foot-traffic (or existing user base) into a custom app, a business can add more features based on the users preferences and brand values. It can work wonders for the brand to pursue their mission and turn their customers into fans.

Summary

• Leverage Membership Apps

• Build a Brand Connection through an App

• Engage users that show some interest in your brand

To find out more about what membership apps are, visit Membership Apps Section.