A consumer survey by Deloitte Consultancy found that 61% of the customers check their mobile phones within five minutes of waking up, every morning. Social media is the new ‘hangout’ or networking place of the world, and if you are not leveraging this platform through your media loyalty programs, you are missing out.
A 2021 study, by PEW Research Center, states that 84% of US adults aged between 18 – 29 are active social media users. Millennials account for 90% of the population on social media whose spending power is more than $1.4 trillion. Today, it’s unthinkable for a brand to not have a social media presence. It is not only about marketing it also questions brand credibility. The number of followers determines a brand’s reach and success. Social media users are drawn to brands with more followers and the ones that the influencers are talking about.
95% of internet users follow at least one brand on social media. The customers are not only happily consuming content generated by brands but are also proud to be a part of the brand’s online community. From luxury brands to local companies and even small businesses, everyone is on social media, it’s how you stay relevant, get business, create brand awareness, and build a community of loyal followers and customers.
It is common knowledge in the business world that the era of third-party data is coming to an end. With Google announcing to phase out third-party cookies, extracting first-party data has become a necessity, especially in today’s world, where data is money. Combined with its capabilities of extracting first-party, relevant data along with its impact on customer satisfaction and retention rate, media loyalty programs are gaining tremendous traction. Loyalty leaders are certain that the disappearance of third-party cookies from Chrome, will shift the attention towards loyalty programs as a safe, ethical and legal medium to extract first-party data.
Stricter data protection laws have made it even more difficult to accumulate data while adhering to global data compliance laws. To ethically and legally extract data, various brands like E.l.f Beauty, Maybelline, among others, have adopted loyalty strategies to engage customers and collect their data. Maybelline spent $227 million on advertising in 2019 but pulled back in 2020 to $102 million. In 2020, Maybelline focused its attention on loyalty programs and launched Maybelline Express Loyalty, to give its customers an added incentive to purchase from them and to surpass the heavy inflow of newer brands in the market.
The world is turning its attention back to the age-old marketing strategy -loyalty programs. Only, this time, it’s bigger and integrated with social media to form media loyalty programs and the intention is not to just engage and retain customers but also to ethically and legally extract first-party data.
Harvard Business Review found that posts that are intellectual or relational in nature were most effective in driving media loyalty programs. Social media users are more attracted to content that is relevant and not ‘tone-deaf’ to the current ecological, social and even political sentiments. Content needn’t necessarily be about promoting the brand or its products it could be educational and still help to improve the brand’s credibility and overall image. Your media loyalty program strategy could focus on creating brand awareness and content-driven posts give users an added incentive to ‘share and like’. You could also strategize your media loyalty program to create user-generated content which has a higher reach. Incentivising customers for creating content for you, be it images, write-ups and reviews is a great way to create a powerful media presence too. With the help of an experienced loyalty partner such as Annex Cloud, you could design media loyalty program strategies that are best suited to your business practices and help you achieve your marketing and financial goals. For a free consultation, click here.