LOYALTY MARKETING
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Social Media and CPG Loyalty: Building Brand Communities

By Robin Newhook

For decades, marketers have been tasked with finding true pathways to customer loyalty. The interactive,
personal nature of social media makes it a perfect way to promote customer loyalty. But how have some
consumer packaged goods (CPG) manufacturers, retailers and service providers used social media effectively? How is ROI effectiveness measured? What is the best way to embrace social media as a creative and exciting approach to connecting with consumers?

Social media is not just a passing trend; it is a vital part of any CPG’s multi-channel strategy. Let’s discuss the relationship between social media and CPG customer loyalty.

Social media is about more than just increasing awareness and traffic to your site or platform and ultimately sales. It opens the gates to constant communications between CPGs and their consumers - not to talk at them, but with them. Social media is an interactive conversation. This personal dialogue is the key difference between social media and traditional or mass media. Social media is more about trust than selling.  Consumers share their identities and express feelings via social media - and it can be an extremely personal relationship.
All humans need to find their own identity, individuality and uniqueness. But there is also comfort in being part of a group. Social media is about expressing individuality as well as being part of a larger group. In his essay, The Sociological Imagination, C. Wright Mills states “Neither the life of an individual nor the history of a society can be understood without understanding both.”

Before Social Media, the traditional brand model was a two-way relationship between the brand and consumer.

With social media, there is a relationship not just between the customer and the brand, but with other customers as well.  Most important, the brand is at the center of this relationship.

The brand being the center of the relationship defines the concept of “brand communities,” which start out as psychological communities in the mind of the brand users.  They first identify with a brand and eventually find a connection to other people who are involved in the same activities or feelings and the role it plays in their lives; in other words, the social component. This attraction ultimately leads to social groupings that eventually create brand communities.
 
Brand communities are comprised of both psychological and social processes, underlying customer loyalty. Here are the components:

Psychological Components of Social Media:
  • Understand what need(s) your brand fulfills in the minds of consumers; what does it stand for and mean to them
  • Use these insights gained as a strategy for developing social media platforms and promotions.

Social Components of Social Media:
  • Make your social media activities "event-like" and encourage involvement; set up the conditions for a fun, playful environment. The stronger the bond customers have to each other, the stronger the bond with your brand.
  • Understand that every touch point contributes to the perception of your brand.

Conclusion
Using social media to build brand communities and promote CPG brand loyalty:
  • Tears down the wall between consumers and your brand. Retailers and manufacturers tend to focus on share of shelf when it comes to reaching consumers. Using social media to connect customers with both your brand and each other drives demand and turns “share of shelf” into “share of voice.”
  • Consumers’ words breathe life into traditional advertising. User-generated content makes marketing more interesting and allows CPG brands to become part of the consumer conversation without interrupting it. User-generated content is both the new focus group and the new brand loyalty marketing engine.

Invest in a social media strategy. Encourage feedback from your target audience and existing customers. Think beyond a product demo or sampling to creating CPG customer experiences. Continually generate fresh and relevant interactive content. 

Using social media to build brand communities and grow brand loyalty is no longer a new media channel. It is the New Normal and an important, exciting and creative outlet for customer engagement.


Robin Newhook is the president of Newhook Marketing Solutions. More information is available at www.newhookmarketing.com.

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