christy, Social Media & Marketing
As noted in an article on crmtrends.com, the Center for Retail Management at Northwestern University found that while only 12-15% of customers are loyal to a single retailer, that group of shoppers account for 55-70% of company sales.
Simply put, loyalty is essential.
In terms of the consumer-merchant relationship, loyalty begins with the merchant establishing a rapport, which demonstrates dependability and gives consumers a reason to return. Patrons and shoppers, in turn, have the choice to visit again to show appreciation of and devotion to the quality product or service.
But the consumer experience is not in a vacuum. Customers have choices; variables like price or conversations with family and friends could affect what they buy more than purported quality. Sometimes added incentive may be what it takes for a merchant to generate repeat business.
That being said, loyalty rewards programs originated as a solution to the needs and desires of both merchants and consumers. Traditional loyalty programs reward customers for their spending loyalty with points redeemable at a later date.
Such a program is a simple way to retain the customers already acquired through other marketing means. What if merchants went beyond rewarding customers for every dollar spent and incentivized social engagement? Customers would find themselves rewarded for doing things (like posting on Facebook and tweeting on Twitter) they already do.
The social loyalty platform is the next generation. Using this “Version 2.0,” consumers are able to reap rewards as they endorse their favorite merchants. Merchants gain a new channel of communication with their client base and access to very low-cost viral marketing.
It seems so simple, doesn’t it?