More and more companies have loyalty programs — and for good reason. A recent industry report showed that loyalty program members not only spend more and remain customers longer but they are also more likely to spread positive word of mouth. This helps explain why we’ve seen a proliferation of programs (we’ve seen new programs popping up across sectors like cosmetics, fast foods, and hotels). Target, for example, launched their Target Circle loyalty program ahead of this year’s holiday shopping period, after extensive test marketing showed increased spending for program members compared to those who were not enrolled.
Using Social Media to Connect with Your Most Loyal Customers
Many brands are struggling to capture value from their loyalty programs and trying to figure out how to best use social media to communicate with these customers. Some companies have even set up distinct social media accounts for their programs. For these efforts to be successful, companies need to know how to use social media to drive sales from members. Research of one company’s social media posts shows that certain types of communication are more successful. After rating over 3,500 posts on particular dimensions and connecting those posts to sales, the study authors found that relational and intellectual posts were most effective in driving sales for loyalty program customers, while behavioral posts drove more sales from non-loyalty program customers. Sensory and emotional posts weren’t effective with either group in our study. Companies can use these dimensions when deciding on how to best communicate with loyalty program members.