The success of a loyalty programme relies on on-going engagement with existing and potential customers, so it’s no surprise that social channels have become key components in loyalty strategies.
Many brands already reward customers for social media-related actions, such as liking a fan-page, participating in a new campaign, sharing content, or inviting friends to sign up to the programme.
Rewarding these things takes little effort on the brand’s part, but can have a big impact in terms of customer retention and acquisition.
But, where social really pays off is when loyalty programme members register their social accounts and provide brands with access to their personal data, in exchange for rewards and incentives.
A customer database enriched by social data is a goldmine of information. It provides deep insight to customers’ behaviour and preferences, and enables far more effective segmentation.
What are the benefits of harnessing social data?
1. Creating personalised campaigns and rewards
Building a loyalty programme around transactional data alone is shortsighted. Incorporating social data closes the loop and gives brands a much more rounded picture of the customer. By observing a customer’s social interactions, brands can run personalised campaigns that resonate with what the customer desires and cares about.
2. Respond quicker to customer feedback
The immediacy of social means people often give brutally honest opinions about a brand and its activities, in a way they are less likely to do in a survey or focus group.
This undiluted feedback is incredibly valuable. By listening to what customers are saying on social, brands can learn whether their loyalty programme is popular with customers, and then adapt their activities accordingly.
— iNeedYourAddress (@NeedYourAddress) May 9, 2017
@RoyalMail How do I report the extremely dangerous driving of one of your van drivers today please.
— allCool Camper Hire (@allCoolCamper) May 8, 2017
Beyond loyalty programmes, if a brand finds itself embroiled in a crisis, being able to hear what people are saying on social helps them shape a far more effective response.
3. Monitor competitors’ activities
Social listening lets you keep tabs on competitors’ strategies and initiatives – and, crucially, reveals how customers are responding to them. By measuring the extent of conversation and sentiment around competitors’ activities, you can incorporate the elements that work and remove those that don’t.
Social media gives brands more direct insight into what motivates their customers than ever before. There’s little need for focus groups when you can get genuine opinion straight from your customer base.
Successful loyalty programmes are built around the customer. They structure rewards to customer goals, rather than offer generic perks. Social media listening helps brands find out what people really want from their scheme and helps them deliver a premium service.
That’s why loyalty programme vendors, trying to be closer to their members, shift social media from an isolated marketing tool to an equally important loyalty tactic . The facility to adapt to the present market requirements could be in the nearest future one of the most successful feature of loyalty programmes.
To learn more about social mining from Comarch, click here.