Whilst digital removes some barriers, it introduces others.
You can choose a similar product from a variety of providers, but buying from one provider over another requires set-up and effort – there is a cost to switching.
So, if you can provide a reason not to switch, remove another mental barrier, and give people another reason stay with their current provider, they will.
Amazon’s ‘Prime’ offering gives its subscribers next day delivery, access to two hour delivery, via Prime Now, and a wealth of TV and Movie content.
Customers have to pay to become Prime members. But once they’re on-board, they rarely go elsewhere, and they spend a lot more with Amazon – because they want to feel like they’re getting the most from their purchase.
Ocado’s ‘Smart Pass’ uses the same logic, to precisely the same effect.
Entangling a customer into your ecosystem with additional service, creates more loyal and valuable customers.
When we worked with MGM, on developing their ‘M life’ loyalty strategy, we wanted to enhance the customer’s on-resort experience via an app, as this gave us multiple opportunities to entangle a customer in the brand’s ecosystem.