Posted at Sep 18, 2018 8:45:00 AM by THAT Agency | Share
Customer loyalty matters to your business. Statistics show that businesses lose $1.6 trillion dollars a year because customers decide to switch brands. The positive news: 60% to 70% of your existing customers will look to you first to buy. Moreover, 80% of your profits will result from just 20% of existing customers.
That means your existing customers are incredibly valuable, and social media loyalty programs are designed to help reward them. Is it really working, though? Do they feel as rewarded as they should? Assessing your social media loyalty program is a step toward ensuring you remain the solution for which your target audience is looking.
It Starts With Better KPIs
The only way to effectively assess virtually any effort online is to select the right KPIs from the outset. Your KPIs vary depending on your purpose. For example, if you want to improve brand awareness, you're going to look at metrics like follower count. If, however, you want to look at your loyalty program, you need to adjust your perspective a bit.
Start by looking at your cost per lead. Understand exactly how much it costs you to get those leads; it should be going down over time because the more relationship building you can do, the lower your cost per lead.
Additionally, you'll want to look at the number of issues you resolve through social media. If someone complains about your brand, they expect an immediate response. One study found 78% of people who complained via Twitter expected a response within an hour. If you can resolve issues with your followers, you're going to be known for your customer service.
Customer Lifetime Value is another metric you'll want to measure. Look at it frequently to see how powerful your strategies are, then adjust your social media campaigns as needed. You may also want to look at your customer acquisition rates. This one matters because if other people see their social media community joining your rewards program, they'll want to join too, and that could mean better numbers in this area.
Engagement rates are essential as well. If a brand proves engaging online, people become loyal customers. Looking at how often people are engaging with you should translate almost directly into your loyalty rate.
After the Data
Once you adjust your KPIs, you're going to find a measure of your success, but what do you do next?