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On Social, Brands Use Rewards, Customer Service to Foster Loyalty

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JUNE 27, 2012 

Most marketers think a Facebook “like” is an endorsement of content, while users more often view it as a show of loyalty
While loyalty programs have been popular in the US for years—with the average American consumer belonging to 18 loyalty programs according to loyalty marketing publisher COLLOQUY—whether these members are active is another story. “Points, coupons and freebies are great for grabbing initial attention,” said Krista Garcia, eMarketer analyst and author of the new report, “Social Loyalty: From Rewards to a Rewarding Customer Experience.” “But in the long run these promotions can’t make up for a lackluster customer experience.”

Through the use of social media, though, retailers and brands can identify and interact with their most profitable internet users. “Loyalty can be won through encouraging word-of-mouth and creating advocates, by raising a user’s social status, by surprising and entertaining shoppers in unexpected ways, and also by listening to customers’ needs and suggestions and responding in a mutually beneficial fashion,” said Garcia.

The link between social media and loyalty seems to be on the minds of many, but user behavior on social networks is still misunderstood. Marketers in a Q4 2011 CMO Council survey weren’t just being overly literal when they interpreted a “like” as an indicator of agreeableness to content, they were missing by a long shot how customers truly viewed social relationships with brands. In actuality, consumers most often clicked the “like” button to show their loyalty. The next most popular reason users clicked “like” was because they were looking for incentives or rewards. 

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“The ability to combine traditional loyalty programs with a social layer holds great promise for retailers and brands trying to strengthen retention,” said Garcia. “Starting with a compelling customer experience lays the foundation, then responding in real time, anticipating and meeting needs, and influencing a wider audience by creating sharable perks are part of the next generation of rewards.”

The full report, “Social Loyalty: From Rewards to a Rewarding Customer Experience,” also answers these key questions:

  • How does the online customer experience relate to loyalty?
  • How are brands and retailers using social media to create customer loyalty?
  • What are the challenges brands and retailers are facing?

This report is available to eMarketer corporate subscription clients only. Total Access clients, log in and view the report now.

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Contact Us
  • HOME
    • Home Furnishings "STUFF"
    • About Us
    • Commitment To Our Veterans
    • Free Marketing Analysis - No Strings-No Sales Pitch
  • Social Platforms
  • Technologies
  • Marketing Integration
    • Free Marketing Analysis - No Strings-No Sales Pitch
    • How Social Media is Changing Brand Building & Retail
    • Brick & Mortar Retail Touch Points Exposed
    • The Secret to a Good Mobile Website for Retailers
    • U.S. Newspaper Revenues Hit 50-Year Low in 2012
    • Future Retail Trends-2015
    • The Power Of Gen Y in Today’s And Tomorrow's Workplace [INFOGRAPHIC]
    • Brick And Mortar Retailers May Become Extinct If They Do Not Embrace The New Economy >
      • A Retailer's Guide to Webrooming
      • INFOGRAPHIC - Do men and women shop differently online?
    • How Big Is Amazon {INFOGRAPHIC}
    • Why retailers must excel in the 4 Cs instead of just the 4 Ps
    • E-tailers: Tips, Trends, and Reasons E-Commerce is About to Boom
    • Is Texting The New Marketing Engagement Frontier
    • Which Social Network's Users Make the Most Money? [INFOGRAPHIC]
    • 120 Awesome Marketing Charts, Graphs and Statistics
    • What It Costs A Business To Do Social Marketing
    • The NEW Retail Demographics
    • More Shoppers Reach for Mobile to Browse, Buy >
      • Online Reviews Influence Shoppers Most, but Print Catalogs Trump Social Networks
      • How Shoppers Use Smartphones to Save Money
      • Age, Gender Determine 'Go-To' Devices
  • MY RETAIL RANTS BLOG
  • CONTACT US
    • free marketing help desk