When Loyal Meets Social

The most effective loyalty programs are those where loyalty meets social; where customers engage with and transact with their favorite brands. Annex Cloud has been advising clients and helping them build loyalty strategies that include both components for years. Over the years we’ve seen some customers set on building only transactional program. We’re happy to share that after six months or a year, they’ve all added a social engagements component to their strategy. Why? Because it works. Here are a few real examples to illustrate the impact.

One of our clients implemented a loyalty program in which customers received points for creating an account and making purchases. They saw some early wins in membership, activation rates, and an uptick in revenue. However, over time, the program wasn’t living up to its potential. When we looked against our benchmarks, it wasn’t performing as other programs had. Seeing this, the next year, the company decided to augment loyalty with points rewarded for social actions. Customers could earn points by following the company on social media, referring friends, and more. After adding the social engagements component, the company saw significant increases:

  • Total members with points increased 11.3%
  • Average points per member increased 11,841%
  • Total points awarded increased 2,655,447%
  • Total points redeemed increased 120,000%
  • Revenue generated by the program increased 371%

Another client started out its program by awarding loyalty points for purchases, creating an account, liking the brand on Facebook and a few other simple social actions. After two months, the brand started offering a refer-a-friend program, as well as a ratings and reviews platform. Here are the differences between the first two months without the social commerce enhancements and the first two months after these solutions went live:

  • Total members with points increased 88%
  • Average points per member increased 19%
  • Total points awarded increased 149%
  • Total points redeemed increased 1,186%
  • Revenue generated by the program increased 301%

All in all, we see customers that are both engaging and transacting with a brand spend at least 200% more than the customer that just transacts. Ongoing engagement is key to developing lasting bonds with your customers.

[White Paper]
[White Paper]