Social Sharing and Loyalty-Programs are both highly controversial subjects. What emerges when these topics collide, why this holds huge value-added potential for products and brands and how this market will develop during the following years, that were the points we talked about with the Business Consultant and Social Media Expert Dr. Hannah Fink-Eder from Munich. As entrepreneur she advised and implemented foundations herself and is specialized in the development of Social Media & Marketing strategies through her international Social Media Network.
So far such Customer Loyalty Programs are a common phenomena in the field of Offline-marketing. There aren’t any comparable Online-Programs, especially considering various Offline-examples in drug stores. Is this assumption wrong or do you have any explanation for it?
The Offline-world has a structured design of benefits, where added value can directly be experienced „haptically“ through these advantages at the checkout or through card-systems. There are many advantages, loyalty campaigns and price comparisons Online, but there is no visual or experienceable benefit for the user.
Where do Loyalty-Programs differ from comparable Offline-deals and where are challenges in the Online-field?
Only hardly in mechanics. In Online design, embodiment and refinement these experienceable features which I mentioned before are missing.
Why does this field provide so much potential for brands and products?
Consumers like when there is a structured and experienceable advantage Online. It is considerably more response-intensive and enables direct interactions without changing the media item.
You are currently working on a new Tool which takes up the character of Loyalty-programs and link that with Online Social Media interactions. Without revealing too much, how can we imagine that roughly?
We reward the Sharing of Content in terms of Loyalty-structures. Through that we combine the natural and social-exchanges with the typical reward incentive of benefits in the form of „Points“.
Where do you see long-term effects of these programs on the User on the one hand and on companies on the other?
We help to understand the Consumer in a better way and also want to be a helping hand while we create interesting incentives. We define advertising customers that „Consumer“ for their targeted addressing.
How do such Loyalty-programs affect the On- and Offline buying and using behavior of Customers?
Primarily through Customer Loyalty. Customers trust the provider and come back — retention increases. Eventually, per capita revenue increases aswell.
What advantages does your new Tool provide? Is there a tangible utility for the user?
We combine Social interactions with an innovative Customer loyalty incentive. We developed a technology which is already tried and tested in other countries. The user gets appealing rewards for his interaction in Social areas — that is new. And the advertising customer can use that interaction — both are new value propositions which we provide.
You already worked at similar projects at adMingle. What is the difference of your new Tool from other systems?
The progression of technology and the combination of two different worlds: Social and Loyalty.
When we look at the combination of bonus-programs with Social Sharing functions from a more negative perspective, one could get the impression that brands can “buy“ Users. Do you see any risks here? If so, how can these be avoided or eliminated?
No, we don’t see any risks here. Subscriptions and other forms of loyalty promotion already exists among publishing houses and Content providers for a long time now.
Content Marketing seeks to create a certain binding to the product through high-quality content and thereby encourages customers to buy it. In contrast to typical Loyalty-Programs your new Tool enables to collect rewards through the sharing of videos, photos, products and articles. What importance do you see in that, also considering the highly debated topic “Content is King?“
Nowadays private pictures, experiences and advices are exchanged permanently, especially in social networks. The collection of points to get rewards shall encourage social-active users to share videos, products or editorial articles. The willingness to share something in social networks increases when these videos, products and articles are packaged attractively.
Analyzing the interactions of Instagram-Users, one can notice how many of them post private pictures, selfies and videos of themselves with products. Is that a new form of Product Placement which brands could and should use?
Yes — That is definitely a very exciting field for brands because it enables communication at the base of the users.
Is there a general trend towards Loyalty-Programs? Will they someday become a mainstream-phenomena?
Loyalty-Programs will eventually find their way into the Online-World. We are just at the beginning now. They will establish into the nature of consumers. This won’t change, just like the good old discount coupons.
Do you think that Social Sharing hides even more potential for the commercialization of content? What other trends do you see for the following years in Online Marketing and Social Media?
Full potential has not been reached yet. From the Content-perspective trends will develop further towards Native Ads, I think. Out of the Channel-perspective Facebook will remain THE Social Media Marketing Channel number one. But I assume that due to the strong commercialization and regulation of Facebook, other “Visual Social networks“ like Instagram, Pinterest, Tumblr and especially video platforms like Youtube or Vimeo will increase in their importance.
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We thank Dr. Hannah Fink-Eder for the interview and are excited about the further development of the new Loyalty-Tool.