Cloud storage goliath Dropbox has acquired the coupon and loyalty app Endorse and its team.
“It’s not terrible to be number two,” Passikof said. “But in both cases I think consumers are looking for higher degrees of innovation. It was only after Samsung and other companies came out with smaller tablets that Apple brought out the iPad mini. It was only in reaction.”
In-app purchases are predicted to dominate the mobile-app market in the next few years. Revenue from in-app purchases, worth $970M in 2011, is expected to rise to over $5 billion by 2015, and a study by Localytics highlights the importance of generating customer loyalty, in order for developers to gain a share in these riches.
Guest Post Editor’s note: Clate Mask is co-author of the New York Times bestseller Conquer the Chaos and CEO of Infusionsoft,. He submitted this column to VentureBeat.)
Odds are a large percentage of your company’s attention and budget goes toward customer acquisition. That makes sense if your customer lifetime value is high – but if you aren’t driving repeat business, it’s ultimately a waste of resources. Securing the second transaction is a key step to generating a good return on your investment.
Loyalty problems tend not to be on the forefront of entrepreneurs’ minds. But an aggressive retention marketing program, even in early stages of a company’s history, can pay big dividends.