Do You Love Being Part of a Company's Ecosystem?

Written by Tom Peace

Modern technology and customer loyalty share many factors to be successful to their consumer base. But arguably the most important for both is convenience. Many companies have been coming up with ways to connect their customers seamlessly to offer the best experience for their individual journey. This can be done in a few ways but the most popular and successful is creating ecosystems. Several companies have created a "loyalty empire" by creating these ecosystems and today The Loyalty People will be discussing how these companies have been successful in maintaining their customer base and why ecosystems have become so popular to the everyday consumer.

Lastly, we will be asking our community " Do You Like Being Part of a Company's Ecosystem"

Recently, Apple hit a huge milestone of reaching 1 billion paid subscriptions thanks to their ecosystem which include services such as Apple Music, iCloud, Apple TV+, iTunes and so on. However, this comes to no surprise as everyone is aware of how seamless the services are and this encourages users to subscribe to multiple services.

Another interesting piece of innovation is Apple's option to provide bundled services like the Apple One subscription. This has undoubtedly helped to improve overall retention and lower churn rates. The company also uses powerful data analytics to customise content recommendations and offers.

Amazon is also another company who have created their own successful ecosystem and saw a surge of 14% in subscriptions services in late 2022. Subscribers to Amazon Prime have access to Prime Reading, Prime Video, Prime Music, Prime Gaming, a membership to Amazon Fresh as well as flexible delivery times for the customer convenience. Similar to Apple, Amazon have also introduced a number of items that have helped their customers day to day experience with their virtual assistant technology, Alexa.

The success from this these two companies beg the questions if we will see an influx of companies creating their own ecosystems in the future. However this success won't come over night and companies will need to find a USP to build that foundation from. Amazon's was their quick and reliable delivery service, Apple launched the first smartphone.

Companies need to think of smart ways to introduce customers into their services and focus to retention. Given that loyal customers account for the majority of sales and have a high lifetime value, attending to these needs ultimately increases customer retention. The use of technology to create an Ecosystem seems to be a no-brainer. But not all customers like the restriction of one brand and look for flexibility and choice.

Let us know what you think by clicking on the link below and voting!

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