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Social loyalty: The evolution of the traditional loyalty program

Where does customer loyalty lie? Retailers may offer discounts, points and get-one-free deals to try to keep customers coming back, but there are no guarantees they created loyalty. What is guaranteed, though, is that people tend to listen to what their friends and families think about a product or service. In fact, almost 7 in 10 customers who have been influenced by word-of-mouth. That’s a powerful social network to tap into.

Thanks to social media, companies today can do just that to create more authentic connections with their customers. Social loyalty: the evolution of the traditional loyalty program outlines how.

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Social loyalty: The evolution of the traditional loyalty program

  1. 1. Social loyalty The evolution of the traditional loyalty program
  2. 2. Loyalty programs are incredibly popular. But it’s hard to tell if they actually create loyalty.
  3. 3. Enter social loyalty.
  4. 4. Social loyalty provides customer incentives through social communities. Online recommendations, referrals and group-buying are all examples of social loyalty programs.
  5. 5. Why does social loyalty matter? Because your customers trust their friends and family more than they trust your ads.
  6. 6. Consider this… Over 50% of customers trust friends and family – less than 25% trust advertising, even when they signed up to receive it. Customers influenced by word-of-mouth are very brand loyal. 67% will stay with a brand they like.
  7. 7. You can use social loyalty to build more authentic connection with your customers.
  8. 8. You can win social loyalty by: • Encouraging word-of-mouth recommendations to create your own network of brand advocates. • Raising customers’ social media status, or surprise and entertain them with unusual and unexpected offers and rewards. • Engaging in social communities to listen – and respond – to customers’ needs and suggestions.
  9. 9. Make your social loyalty program a success: Recognize your best customers – use the data you collect to track and reward your top customers and influencers. Tie points or rewards to a higher level of rewards – unexpected, premium experiences or non-monetary rewards.
  10. 10. Social loyalty programs have their challenges. Start small. It’s a new area. Many companies are taking small steps, such as adding a social layer to existing loyalty programs. Social loyalty programs can generate an incredible amount of customer data. Extracting insights from that data can be a challenge.
  11. 11. To learn more, please contact us
  12. 12. Deloitte, one of Canada’s leading professional services firms, provides audit, tax, consulting, and financial advisory services. Deloitte LLP, an Ontario limited liability partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. © Deloitte LLP and affiliated entities. Designed and produced by the Deloitte Design Studio, Canada. 14-0015T