{"id":273,"date":"2010-04-06T23:01:38","date_gmt":"2010-04-07T04:01:38","guid":{"rendered":"http:\/\/www.yupingliu.com\/wordpress\/?p=273"},"modified":"2010-04-06T23:37:26","modified_gmt":"2010-04-07T04:37:26","slug":"loyalty-and-social-media-strategy","status":"publish","type":"post","link":"https:\/\/www.yupingliu.com\/wordpress\/2010\/04\/06\/loyalty-and-social-media-strategy\/","title":{"rendered":"Loyalty and Social Media Strategy"},"content":{"rendered":"<p>In <a href=\"http:\/\/www.yupingliu.com\/wordpress\/2010\/03\/11\/social-crm-opportunities-and-challenges\/\">Social CRM<\/a>, we are concerned with integrating social network and social media to enhance CRM practices and eventually increase customer loyalty. Here, I&#8217;d like to argue that the integration goes the other way too. In other words, while social media strategy can eventually affect customer loyalty, the design of social media strategy right now should take into consideration your company&#8217;s current customer loyalty situation.<\/p>\n<div align=\"center\"><a href=\"http:\/\/www.flickr.com\/photos\/intersectionconsulting\/\" target=\"_new\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.yupingliu.com\/wordpress\/wp-content\/uploads\/2010\/04\/3469011212_a239ff2796-300x233.jpg\" alt=\"social media attraction\" title=\"Social Media Attraction\" width=\"300\" height=\"233\" class=\"aligncenter size-medium wp-image-290\" border=\"0\" srcset=\"https:\/\/www.yupingliu.com\/wordpress\/wp-content\/uploads\/2010\/04\/3469011212_a239ff2796-300x233.jpg 300w, https:\/\/www.yupingliu.com\/wordpress\/wp-content\/uploads\/2010\/04\/3469011212_a239ff2796.jpg 415w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><br \/>\n<\/a><br \/>\n<a rel=\"cc:attributionURL\" href=\"http:\/\/www.flickr.com\/photos\/intersectionconsulting\/\">http:\/\/www.flickr.com\/photos\/intersectionconsulting\/<\/a> | <a rel=\"license\" href=\"http:\/\/creativecommons.org\/licenses\/by\/2.0\/\">CC BY 2.0<\/a><\/div>\n<p>To make my point, let&#8217;s first look at the edge a company with lots of loyal customers (what I call a high loyalty-performer)\u00a0 can have in today&#8217;s social web over a competitor without those loyal customers:<\/p>\n<p><!--more--><\/p>\n<blockquote>\n<ul>\n<li> Whether it&#8217;s Facebook fan page, Twitter account, or viral messages, a high loyalty performer are more likely to have a large number of fans or followers with their ears open to what the business has to say. 1.5 million Twitter users did not just wake up one day and decide to follow <a href=\"http:\/\/twitter.com\/DellOutlet\" target=\"_blank\">Dell Outlet<\/a>. The brand most likely already had a top of the mind priority among these consumers.<\/li>\n<li>A large group of loyal customers also functions as an army of passionate ambassadors for the brand. As <a href=\"http:\/\/www.briansolis.com\/2010\/03\/i-dont-believe-in-viral-marketing\/\" target=\"_blank\">Brian Solis&#8217; recent blog post<\/a> points out, what makes something viral is not the content but the people. I wholeheartedly agree with that, and <a href=\"http:\/\/www.yupingliu.com\/wordpress\/2010\/02\/01\/rising-to-stardom\/\" target=\"_blank\">my own research on viral diffusion of content<\/a> seems to echo that. One crucial condition for going viral is that people are willing to pass on the information, and who else but the loyal fans will be most likely to do that?<\/li>\n<li>A high loyalty performer is more likely to get consumers&#8217; vote of confidence at times of uncertainty. Apple reportedly sold <a href=\"http:\/\/www.apple.com\/pr\/library\/2010\/04\/05ipad.html\" target=\"_blank\">300,000 iPads on the first day of its release<\/a>, despite mixed reviews and the joke circling in social networks about <a href=\"http:\/\/latimesblogs.latimes.com\/technology\/2010\/01\/women-mock-the-ipad-calling-it-itampon.html\" target=\"_blank\">its awkward name<\/a>. Some Apple fans will literally buy anything new from Apple, whatever other people may say. This is the power of loyalty.<\/li>\n<\/ul>\n<\/blockquote>\n<p>I hope I have convinced you that a high loyalty performer can potentially benefit more from social media. But this does not mean that medium loyalty performers or even brands with serious problems cannot have a productive social media strategy. Instead of avoiding social media altogether or blindly copying what other companies are doing, a business should adapt its social media strategy based on the loyalty level of its customers. In the table below, I lay out the recommended strategies for high, medium, and low loyalty performers in the social media space.<\/p>\n\n<table id=\"tablepress-1\" class=\"tablepress tablepress-id-1 tablepress-responsive\">\n<thead>\n<tr class=\"row-1\">\n\t<th class=\"column-1\">Loyalty Tier<\/th><th class=\"column-2\">Social Media Strategy Focus<\/th><th class=\"column-3\">Focal Metrics<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping\">\n<tr class=\"row-2\">\n\t<td class=\"column-1\"><strong>High Loyalty Performers<\/strong> (Large number of loyal customers and high emotional brand connection)<\/td><td class=\"column-2\"><ul><li>Deploy a full suite of social media tools, including listening, engaging, analytics, and customization;<\/li><br \/>\r\n<li>Encourage and foster user-generated activities and mini-communities created by customers;<\/li><br \/>\r\n<li>Selectively use outbound marketing that offers real value to customers;<\/li><br \/>\r\n<li>Be mindful of complacency and establish well thought-out plan for handling negative groundswell.<\/li><\/ul><\/td><td class=\"column-3\"><ul><li>Direct business measures such as cost, sales and profit<\/li><br \/>\r\n<li>Extent of social\/business information &amp; technology integration<\/li><br \/>\r\n<li>Level of customer-initiated peer-to-peer activity<\/li><br \/>\r\n<li>Business intelligence &amp; innovation<\/li><\/ul><\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\"><strong>Medium Loyalty Performers<\/strong><br \/>\r\n(Mediocre customer loyalty and lukewarm brand connection)<\/td><td class=\"column-2\"><ul><li>Selectively choose social media tools based on business capability, priority &amp; resources;<\/li><br \/>\r\n<li>Focus on creating engagement with customers to deliver more meaningful relationship;<\/li><br \/>\r\n<li>Establish reward mechanisms that encourage consumer engagement in social sphere;<\/li><br \/>\r\n<li>Actively seek out customers in socialsphere but avoid blunt sales pitch.<\/li><\/ul><\/td><td class=\"column-3\"><ul><li>Customer participation rate<\/li><br \/>\r\n<li>Customer engagement level<\/li><br \/>\r\n<li>Social sentiment<br \/>\r\n-- Attitudinal loyalty<\/li><\/ul><\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\"><strong>Low Loyalty Performers<\/strong><br \/>\r\n(High customer turnover and negative brand associations)<\/td><td class=\"column-2\"><ul><li>Premature for full-blown social media strategy;<\/li><br \/>\r\n<li>Focus instead on listening to social sphere for customer issues and problems;<\/li><br \/>\r\n<li>Aim for meaningful analytics and rapid response;<\/li><br \/>\r\n<li>Establish a corporate plan and protocol for handling negative comments and groundswell from socialsphere.<\/li><\/ul><\/td><td class=\"column-3\"><ul><li>Customer satisfaction<\/li><br \/>\r\n<li>Customer retention<\/li><br \/>\r\n<li>Social sentiment<\/li><\/ul><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<!-- #tablepress-1 from cache -->\n<p>Eventually, your company&#8217;s social media strategy should be an adaptive and fluid system that adapts to your business situation and your customers&#8217; needs. The ideal social media strategy will connect with your most loyal customers and build on this most important asset of the company.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In Social CRM, we are concerned with integrating social network and social media to enhance CRM practices and eventually increase&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,7],"tags":[110,90,18],"class_list":["post-273","post","type-post","status-publish","format-standard","hentry","category-customer_loyalty","category-social_media","tag-business-strategy","tag-customer-loyalty","tag-social-media","post-archive"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Loyalty and Social Media Strategy | Ping! &gt;&gt; Loyalty Science in Practice<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.yupingliu.com\/wordpress\/2010\/04\/06\/loyalty-and-social-media-strategy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Loyalty and Social Media Strategy | Ping! 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Dr. Yuping Liu-Thompkins is an expert on building customer loyalty and habit through effective marketing programs. She specializes in turning customer data into useful customer insights and actionable customer relationship management and marketing strategies. Through collaboration with national and international companies in travel, retail, financial, and other industries, Dr. Liu-Thompkins has studied extensively the design and effectiveness of loyalty programs as a tool for customer retention, cross-selling, and customer growth. With a personal passion for technology, Dr. Liu-Thompkins is also known for her expertise in digital marketing, especially the use of social media for branding and customer engagement purposes. Dr. Liu-Thompkins has published her research in top marketing journals such as Journal of Marketing, Journal of Interactive Marketing, Journal of Advertising, Journal of Advertising Research, and Journal of Public Policy &amp; Marketing, among others. She is currently an Associate Editor for Journal of Advertising, and she serves on the editorial review board of Journal of Marketing, Journal of Interactive Marketing and Journal of Marketing Communications. More information about Dr. Liu-Thompkins can be found on her website Yuping Online.","sameAs":["https:\/\/www.yupingliu.com","https:\/\/www.linkedin.com\/in\/yupingonline\/","https:\/\/x.com\/PingTweets"]}]}},"_links":{"self":[{"href":"https:\/\/www.yupingliu.com\/wordpress\/wp-json\/wp\/v2\/posts\/273","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.yupingliu.com\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.yupingliu.com\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.yupingliu.com\/wordpress\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.yupingliu.com\/wordpress\/wp-json\/wp\/v2\/comments?post=273"}],"version-history":[{"count":0,"href":"https:\/\/www.yupingliu.com\/wordpress\/wp-json\/wp\/v2\/posts\/273\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.yupingliu.com\/wordpress\/wp-json\/wp\/v2\/media?parent=273"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.yupingliu.com\/wordpress\/wp-json\/wp\/v2\/categories?post=273"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.yupingliu.com\/wordpress\/wp-json\/wp\/v2\/tags?post=273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}