Loyalty Program Options for Social CRM - dummies

Loyalty Program Options for Social CRM

By Kyle Lacy, Stephanie Diamond, Jon Ferrara

Loyalty programs can be important for your Social CRM. Loyal customers are hard to find and hard to keep. Customers who strictly shop on price will go from company to company to find the best bargain. They will almost never become a loyal customer. If they can find the item cheaper somewhere else, they will grab it.

What characterizes loyal customers? They are the ones who are willing to pay a bit more or stay with you no matter what. There are some potential ways to inspire customer loyalty with different types of loyalty programs. After customers join a loyalty program like those listed here, you can communicate with them via social media. For example, you could devote a Facebook page to loyalists in the program.

Type of Program Description Example
Fee-based Each customer pays a fee for special experiences and
American Airlines Admiral’s Club
Points Customers are rewarded for purchases made. Staples Rewards
Tiered rewards Customers are rewarded for achieving milestones that increase
the value of their points.
Hilton HHonors
Partnerships Companies join forces to offer rewards to customers who use
products from both companies.
American Express Membership Rewards
Games A game layer is added to a rewards program. Snooth