Do you know to acquire a new customer it costs a business about 5-25x more than selling to an existing customer? (HubSpot)
And do you know the existing customers spend 67% more than new customers? (HubSpot)
Therefore, stacking up great loyalty program is vital for the business. In this world of digital marketing, there are various platforms for boosting customer loyalty and company sales and revenue. And social media is one of the efficient and effective platforms used to gain customer loyalty. Through social media loyalty program, you can promote your products, boost sales, build trust and relationship with customers. In this blog, I am going to discuss how social media can help you in enhancing the loyalty of customers.
“The loyal customers, they don’t just come back, they don’t simply recommend you, they insist that their friends do business with you.”
– Chip Bell
What is the Purpose of Loyalty Programs?
The objective of the loyalty program is to increase the sale, stack up a relationship with the customers and business owners and to recapture the customers. The companies use social media customer loyalty programs to meet the customer’s needs or desires. The prime goal of these programs is to provide benefit to the customers. The online loyalty programs need to be enticing, fostering to the customers so, that they return for the next purchase and increase the sale. The purpose of these programs is to influence the customers towards more and more purchase of products and services of your company.
What are Effective Ways to Build Customer Loyalty?
No matter what is the size of your company customer loyalty programs are vital. The customer loyalty program provides you with an opportunity to retain your customers and foster them for further purchase. As for companies, it is more expensive to entice new customers than to sell to an existing customer. The loyalty programs provide more return than the amount of investment. As loyal customers contain more worthiness for the business and the cost of selling them is also low. There are many products and services available in the market, therefore the customers need to have a reason to stay loyal to your company. By building loyalty programs, it’s possible to entice and nurture the customers towards your company product and services. In this blog, we will discuss how to build a loyalty program through social media. [For more information about how to stack up a customer loyalty program please refer our blog How to Build a Successful Customer Loyalty Program?]
“Customer satisfaction is worthless. Customer loyalty is priceless.”
– Jeffrey Gitomer
How do Loyalty Programs Benefit eCommerce Business?
The social media loyalty programs always appear to the companies as an opportunity to enhance their relationship with the customers as it can increase the sales and revenue of the company. A loyal customer spends 67% more time than a new customer. Through online loyalty schemes enticing new leads, fostering, and converting them into sales-ready leads is easy. Some of the benefits of a loyalty program are listed below.
The Benefits of Loyalty Programs include
- Increases customer retention
- Stack up a relationship with the customers
- Increases brand awareness
- Improves conversion rates of companies
- Increases customer loyalty
Loyalty Program Conversion Rate
The conversion rate of customer loyalty program will help you to better understand the benefits of social media loyalty program.
- 70% of consumers like to recommend a brand with the best loyalty scheme.
- 77% of consumers say that loyalty programs make them stay with brands.
- 63% of consumers said that they have modified their spending habits to maximize loyalty benefits.
- 11% of millennials engross with the loyalty ideas to which they are members.
- 97% of millennials said that they like to actively engage with online loyalty programs if they could access their social media rewards program information from their smartphones.
- 28% of millennials want to access online loyalty programs via a text link on their smartphone.
- 75% of consumers said that they prefer companies that offer social rewards programs.
- 37% of consumers spend more with brands when they are a member of a loyalty program.
- 37% of loyalty program members favor accessing loyalty program information via a periodic text message, 28% said a mobile app, 19% favor desktop/laptop via website, 14% smartphone via digital wallet and 3% prefer Facebook loyalty program messenger.
- 78% of consumers prefer to access social media rewards and incentives and they want them immediately, 22% want their rewards and incentives by mail.
- 75% of consumers engage more with great loyalty programs that make social media rewards information.
- 21% of members are promoted to use loyalty program.
7 Ways to use Social Media Loyalty Program
Increasing engagement and loyalty of customers matters a lot for marketers as loyal customers can increase sales and revenue. Nowadays companies like to use social media platforms to increase brand awareness, engagement, conversion rate and loyalty of customers as they can reach their customers 24/7.
For no doubt, social media has become one of the demanding platforms for engaging, enticing, and fostering new customers.
Through social media loyalty program, it is easy to increase customer retention as customers can easily engage themselves with social media. The marketers have started using the following strategies for enhancing customer relationship, to build trust and loyalty of customers.
1. Entice your Customers with Social Platforms
Interact with your customers through social media channels and figure out their interest which is possible with social listening.
Social listening is a way to figure out where your customers spend most of their time, what are their field of interest, about which product and services they talk and to what type of content they relate. Through social listening, you and your company can address all of these points.
Once you have figured out all these points, you can generate new leads and convert them into sales-ready leads by writing the content of their interest on social media channels.
2. Offer a Reward Program
Once, you have figured out customer loyalty and engagement towards your products and services you can reward your customers. Through social media rewards system, you can make your customers happy.
Through reward programs, you can achieve customer satisfaction, engagement, loyalty and can increase sales and revenue for your business. And that’s why companies create loyalty programs for customers. Some of the loyalty programs are listed below
- Provide free access to your content.
- Invite social VIPs to a preview or other special event that is limited to this group.
- Offer VIPs access, or upgrade to your newest product.
Allow them to earn loyalty program rewards through social media interaction.
3. Measure Responses
Measuring and tracking the responses is one of the important points of loyalty programs. The tracking of responses of customers can be achieved by capturing social IDs and self-identifying data in your conversion activities. By measuring responses, you can easily track the number of customers who are interested in your products and services and the amount of ROI you achieved from them.
Create Engagement Plans
By creating customer engagement plans, you can track the actions of your customers and can make decisions based on that. And this engagement plans will also help you to build trust and relationship with the customers. Once, you have achieved a level of engagement from the customers you can use conversion activities that strengthen your relationship with customers.
Create a Consistent Engagement Schedule
You can make continues engagement by creating a calendar for your content, that will make sure that you have a communication with your the customers on a daily basis.
Define what type of Content, Offers, and Rewards you’ll provide to the Customers
Use the information you have gathered from social listening to entice your loyal customers and solve their problems.
Create Conversion Activities
One thing to keep in mind is that your conversion activities should be simple to click and complete. The conversion activity can be a contest or poll based on current social media activities.
4. Share your Quality Content
Through valuable content, you can create customer engagement, loyalty, and brand awareness towards your products and services.
Through quality content, you will not only maintain the relationship with the existing customers, but you also have the opportunity to generate new leads for your business.
In your content, you can use infographics, videos, images, gif, screenshots, visual ads to make the content attracting and memorable. The assets of content marketing, include white papers, ebooks, videos, infographics, blogs, product demos, or case studies.
5. Create better Social Advertisements
Through social advertisement, you can create more engagement for your company product and services. Nowadays customers like to watch ads which are short, informative and enticing. One thing you need to keep in mind before creating ads is that the videos should contain information about your products and services. [If you want to how social media can help you to improve conversion please refer our blog Top Lead Conversion Strategies]
The Benefits of Social Advertisements
- Creates awareness about brands
- Increases customer loyalty
- Stack up relationship and trust with the customers
- It reaches the wide audience
- Entices new leads
- Maintenance the relationship with existing customers
- Regains your lost customers
6. Audience Interaction
Through social media loyalty program, you have the opportunity to reach the wide audience. Through social media, you can create customer loyalty programs and can target your audience who are genuinely interested in your product or services. You can reach the wide audience through social media programs so, the possibility for enhancing the ROI increases. For audience interaction, you can use various social media channels through which you can increase your brand awareness and tack the number of audiences who are genuinely interested in your companies product.
7. Engage yourself with Loyal Customers
Loyal customers are vital for the business as they can save customer acquisition cost. Therefore, you need to engage yourself with the customers on several platforms. So, that the customers continue supporting your company products and services. One of the ways to create customer engagement towards products and services is through social media channels.
To identify and engage with your social customers take the following steps.
- Ask your customers to perform self-identification and in return of that provide them great rewards program.
- Use the feedback from your social VIP base to develop the rewards.
- Send an email to a targeted audience from your CRM. The email should have an embedded social media trigger that will encourage them to participate in your social network.
How to Measure the ROI of a Social Media Loyalty Program
After working on the customer loyalty program what is next?
You have spent your energy, time and money in creating a social media loyalty program but what the benefit of this if you don’t measure your ROI. Therefore tracking and measuring ROI of social media loyalty program is vital.
Here are some metrics which will help you to determine how to measure your customer loyalty program
The Final Words
The companies that use social media loyalty programs are 88% more profitable than the companies who don’t use. In this blog, I have discussed various social media loyalty program strategies that will help your business to boost your sales and to increase customer loyalty and relationship. If you want to know more about the loyalty program then you should refer our blog A Perfect Road To Your Loyalty Program: Analytics.
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