An ever-changing digital landscape is forcing brands and retailers to rethink how they engage with customers. Increasingly, brands are adopting engagement-based loyalty tactics that align with the way people shop, and importantly are building authentic relationships with customers.

With engagement-based loyalty tactics, there are several ways for a customer to engage with a brand or retailer including contributing user-generated content such as photos, writing reviews and participating in online communities. When executed well, these engagement touch-points can provide brands with a steady stream of feedback about their products and services. Why care? Because it’s a proven tool for improving search results and increasing conversions, as well as transforming buyers into brand advocates. 

As more brands and retailers adopt engagement-based loyalty programs, there are several best practices to keep in mind:

1. Align with branding - Engagement-based loyalty programs need to align with the company’s overall branding strategy. From graphics to rewards mechanics, every element
of your loyalty initiatives must integrate seamlessly with your online and offline branding.

2. Identify desired outcomes - During the development stage, it’s important to determine the desired result, specifically looking at which customer behaviours you want to promote, and then tailoring the initiative accordingly.

3. Be transparent - Consumers expect information at their fingertips and demand transparency from companies they spend their money with. Having visibility of both positive and negative reviews, user-contributed images, and the ability to ask and answer questions helps build trust among consumers.

4. Build a loyalty network - Social loyalty programs identify and reward consumers who contribute reviews and images and share them with their friends. By focusing on social
loyalty programs, brands and retailers identify their most loyal consumers and amplify the voices of these advocates to extend their reach, allowing them to essentially ‘sell’ on behalf of the brand. 

5. Think long term - Your engagement-based loyalty initiatives need to keep people engaged with your brand over a long period of time. Rewards should be achievable - but
not too easy. Ideally, your initiative will remain active online for years to come, so customers shouldn’t be able to hit peak levels within a month or two.

Forward-looking brands and retailers are redefining loyalty in order to build awareness, engagement and trust among consumers throughout the maze-like purchase decision journey. Consider adopting an engagement-based loyalty strategy and remember, your customers are talking about you... join the conversation!

 

By Matt Parsons, Chief Customer Officer of PowerReviews.

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