Customers spend more money on apps that they believe can change their lives - Featured Image | CEO Monthly

Customers spend more money on apps that they believe can change their lives

Image

Giving customers hope in apps and helping them achieve their life goals is more important than compulsion, according to new research from University of Cologne and Imperial College Business School.

Dr. Martin P. Fritze, Assistant Professor of Trade Fair Management and Marketing, and his co-authors identified six key features which motivate customers to engage with gamified apps including social interaction, sense of control, goals, progress tracking, rewards, and prompts. They found people were more likely to engage with these apps in the long term if it helped them reach certain goals rather than just a compulsion to use it.

According to Dr. Fritze,
“Hope means the customers give more value to the app, therefore engaging more, which motivates them to change their behaviours and achieve their long-term goals. The fact the app is helping them change and reach their goals leads to even greater engagement and in-app purchases.”

They also analysed how each of the game-like features affected customer engagement, hope, compulsion, and purchases. For health apps, the most important feature was rewards. For the dating service, the most important were sense of control, goals, and especially social interactions.

The research suggests that app designers should focus on the gamification principles when it comes to increasing customer engagement. Using these game features in apps will not only increase customer engagement, but also increase the in-app purchases customers make. However, managers should shift focus away from principles that lead to compulsion, such as progress tracking, rewards, and prompts, and focus more on enhancing customer hope.

The researchers conducted three different studies using over 2000 participants, specifically focussed on health/fitness apps and dating apps and what aspects made these apps so successful. The study was published in the International Journal of Research in Marketing.

4

Want to Be Recognised? Enter Our Awards Today!

Learn how to get recognised for your achievements and become a nominee in our prestigious awards programmes. Discover the criteria and steps needed to showcase your leadership excellence.

Find Out More
Get recognised banner - woman holding device

You might also like

Explore insights and updates tailored for business leaders and innovators, curated to inspire success.

October 20, 2022 Here, There and Everywhere: How the Cloud has Revolutionised the Business World

These days we very much live in an ‘on demand’ society – whether it’s using apps to order takeaways through to watching the latest blockbuster films on our TVs at home. The business world is also moving in this direction of having information and...

August 17, 2021 Power in People: Human Capital Will Determine Tech Success

According to the Economist, one of the most significant outcomes of the pandemic will be “the infusion of data-enabled services into ever more aspects of life.” We were already expecting a transition to digital transformation thanks to technologic...

June 27, 2024 Your Guide to Succession Planning as a CEO

If there’s one word to describe the world of corporate leadership, it’s unpredictable. It can be argued that there is no greater influence on a company’s success than the CEO, the figurehead and biggest name to attribute towards the company’s over...