As the loyalty space becomes more crowded, consumer engagement is waning. Brands have particularly struggled to attract and maintain the loyalty of Millennial and Gen-Z consumers, who are more price-conscious than brand-loyal and have been labeled as marketing skeptics. While clear program messaging across site, email, and mobile are imperative for loyalty program success, brands must also ensure that their programs are highly visible across social channels to capture this key demographic.
However, brands have struggled to leverage social to their advantage. L2’s Loyalty: Communication report finds that only 7% of brands promote their loyalty programs in their Facebook bios. Even fewer do so on Instagram, and most brands never post about their programs at all.
Brands tend to promote their programs on Twitter. In the first half of 2017, 70% of brands mentioned their loyalty programs on Twitter at least once, according to L2’s study. However, distribution varied largely by vertical. Less than half of beauty brands posted loyalty-specific tweets, while eight in ten department store brands leveraged the platform to communicate loyalty. The majority of these tweets were proactive brand posts or replies; however, only 23% of brands retweeted user posts about their programs, missing a key opportunity to amplify consumer advocacy and signal authenticity.
In addition, brands should actively reward consumers for engaging on social. Yet only 12% of brands reward consumers for connecting to social media, and even fewer reward members for using specific branded hashtags. Brands should also repost user-generated content, a practice that encourages consumer advocacy across social platforms.