Yesterday, Twitter unveiled its new advertising platform Promoted Tweets. The picture above shows a Promoted Tweet from Starbucks when searching for the keyword “starbucks” on Twitter. I pulled information from The New York Times, Twitter’s blog, and Twitter COO Dick Costolo’s talk at Ad Age, and here are some details that have emerged about Promoted Tweets:
Tag: customer loyalty
Loyalty and Social Media Strategy
In Social CRM, we are concerned with integrating social network and social media to enhance CRM practices and eventually increase customer loyalty. Here, I’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’s current customer loyalty situation.
To make my point, let’s first look at the edge a company with lots of loyal customers (what I call a high loyalty-performer) can have in today’s social web over a competitor without those loyal customers:
Loyalty Program Design Fundamentals Part II
Last week, I wrote about the key loyalty program design factors that a loyalty manager should consider. In the second part of this series, I’d like to review what we know about effective loyalty program design from published academic research. I should start by saying that this area is still pretty new. So we don’t know a whole lot at this point. I’m hoping that by putting together here what we know will also help academic researchers identify the holes that still need to be filled in this area.
I. Program Requirements
Key References: Kivetz and Simonson (2003); Demoulin and Zidda (2009)
- Although increasing program requirements may make a loyalty program less relevant to some consumers, it can also make the program more appealing to frequent customers. So if the goal of a loyalty program is to selectively attract heavy buyers, a relatively high program bar should be set.
- Make sure the program is straightforward. Too much complexity in a program, whether it’s the point earning action required or the redemption of rewards, can turn consumers away right at the beginning.
Continue reading “Loyalty Program Design Fundamentals Part II”