How to build loyalty

Foursquare: Loyal following
Foursquare: Loyal following

Finding new, innovative ways to gain customer loyalty has never been more urgent for retailers as they suffer huge falls in profit. However, “the evolution of loyalty” (Data Strategy, MW last week) misses a trick when referring to the old and tired strategy of instore spending and points reward.

This is no longer enough as brands need to interact and communicate with consumers on their level, and now this has to be about social. Loyalty initiatives such as Foursquare’s ’checking in’ – which rewards those who repeatedly visit and check in at certain locations – instead herald a new wave of winning loyalty.

And what about the social network appreciation platform? This encourages customers to gain loyalty points by recommending favourite brands to friends on social networks, which means companies will not only have access to individuals, but their network of friends as well.

Marketing is no longer a one-way street. Sharing is paramount in this new social world, and brands need to wake up to the benefits of building loyalty through social networks.

Mike Spicer
CEO, Pulse Group

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