A recent article in a leading cycling magazine (MBR Magazine 'Is it all over for local bike shops?') highlighted a sobering trend: since 2017, a third of the UK’s top 12 bike retailers—once voted best in their industry by the public—have failed. Two more are set to close by the end of this year. These weren’t poorly run businesses. On the contrary, they had excellent reputations and fiercely loyal customers.
So what went wrong?
Their fate mirrors some of the most infamous collapses in recent business history. Blockbuster Video, once synonymous with Friday night entertainment, collapsed within a few short years. BlackBerry, a brand that once dominated the smartphone industry, vanished just as quickly. Despite their market dominance and strong brand equity, they failed to act on their most valuable asset: customer loyalty.
Many businesses see loyalty as a consequence of good service, not a tool to drive future growth. But the real opportunity lies in leveraging that loyalty to adapt, innovate, and grow. Blockbuster had millions of paying customers it could have transitioned into a streaming model before Netflix was a threat. BlackBerry had an army of professionals devoted to its secure messaging and email—but failed to keep up with touchscreen innovation.
These brands didn’t lack customers. They lacked vision.
The same pattern now threatens small and medium-sized online retailers. They invest heavily in paid advertising—especially Google Shopping—to bring in new customers. But once those customers convert, they do little to hold onto them. The cycle continues: 12% of gross revenue or more is spent on acquiring new customers, with little to no strategy to turn them into long-term assets.
One of the most effective ways to break this cycle is by developing a mobile app. A mobile app is more than just an extension of your website—it’s a strategic tool for customer retention and brand engagement.
Think about it: if a customer installs your app, your brand is now in their pocket. It’s no longer dependent on them remembering your URL or clicking an ad. Instead of waiting for customers to come back through the same expensive channels, you’re giving them a direct line to your business.
More importantly, you’re not fighting to be found. You're already present.
A customer with limited disposable income is more likely to engage with brands that are already top-of-mind—those with apps they interact with regularly—than to browse the web looking for past purchases. And even if they do search, chances are they’ll be exposed again to competitor ads, lowest-price listings, and margin-eroding marketplaces like Amazon or eBay.
In contrast, a mobile app allows you to:
Send push notifications about offers or product drops
Create loyalty schemes that reward repeat purchases
Build a shopping experience tailored to the customer’s preferences
Reduce dependence on paid advertising platforms
Too many retailers are stuck in a loop: spend money to attract customers, make a sale, and then watch those customers disappear into the digital ether—only to pay again to reach them. But what if you could stop the leak? What if, instead of relying on Google or Amazon to own your customer relationships, you owned them?
Customer acquisition costs are only going one way: up. That’s why owning and retaining your customer base is no longer optional—it’s critical.
Mobile apps are not just for the giants. They’re an increasingly accessible and powerful way for independent retailers to safeguard their future and grow sustainably.
Retailers must stop seeing their websites and ad campaigns as the business. The real business—the real asset—is the relationship with the customer. And unless you actively leverage that relationship—through mobile engagement, loyalty programs, and direct communication—you risk losing it to someone who will.
May 31, 2025 - BY Admin