Loyalty

Social media gifting and digital gifting: New heights in retaining customers?

10.08.2018

Winning customers and maintaining their loyalty to a company or brand is one of the biggest competitive challenges in any industry. Whether B2B or B2C, new customers are not a secure or reliable asset for the business until you can retain them over the long term.


Globalization and automation have intensified competition, but they also change customer retention strategies and trigger new options for maintaining customer loyalty. Social media channels and rewards, discounts, gifts, and incentives available online have played a major role in this development. Now known as social media gifting or digital gifting, these strategies open up entirely new and promising opportunities for retaining customers.

What is social media gifting?
Social media gifting is part of social media marketing. It involves using social networks such as Facebook, Twitter, and others, for example to do the following:

  • motivate certain behavior in customers, such as sharing or liking something, voting on it, or entering a contest;
  • reward them for this behavior, perhaps by awarding points that can be collected and redeemed for attractive prizes.

Like other incentive systems, social media gifting works two ways: by offering the prospect of added value and by including elements such as fun, anticipation, and conversation. It is therefore important not only to make rewards attractive but to make the social media gifting process itself tempting and interesting – for example, by providing an appealing app that taps into the mentality of the target group and encourages them to share it with others. In other words, social media gifting can generate the very desirable side effect of “buzz” or digital attention, thereby broadening its reach – even on a viral scale. This turns the company’s customers and fans into multipliers and brand ambassadors.

What does digital gifting refer to?
The term “digital gifting” is used in different contexts. In the broadest sense, digital gifting comprises all uses of online platforms for the purpose of giving gifts. In a narrower sense, digital gifting refers to the gifting of digital content – not only movies, books, and music, but also gift cards and vouchers, discounts, rewards, tickets, coupons and access to special services, rewards programs, and special offers. The gifts are virtual, not physical. The simplest example of this is a free e-book that can be downloaded after an access code is sent. When the campaign involves smartphones or tablets, gifts like tickets often no longer need to be printed and therefore remain totally virtual. Unlike social media gifting, digital gifting does not always use social networks. Digital gifting often involves online store or club systems which, for example, enable access to digital content after a customer registers. Younger target groups are now used to getting digital benefits. So any company that relies primarily on a young customer base should rely particularly on the opportunities of digital and social media gifting to increase customer retention.

We define digital gifting as distributing virtual content, exclusive services, and rewards for the purpose of retaining customers.

The right way to plan and manage social media gifting and digital gifting
Effective customer retention is crucial to the survival of any company, regardless of the industry. Those who want to use the opportunities afforded by the internet to stay ahead of the competition need expert knowledge and experience. Many companies lack this expertise. They also often lack the staff necessary to develop, plan, and execute strategies for targeted social media marketing and gifting and to measure the success of their campaigns. This calls for external knowledge on how to mount a campaign that is perfectly tailored to the needs of the company and expertly taps the potential of social media gifting to achieve customer retention.


cadooz – Your strong partner in loyalty managemen
When it comes to customer loyalty, we offer a broad range of effective strategies and solutions for many different industries. We draw on many years of experience to assist you with your digital and social media gifting campaigns, from design to implementation. We give you a huge selection of modules that go well beyond gifts, contests, and bonus programs. They enable you to design your social media gifting campaign attractively with gift cards, rewards, or events, or to offer your customers exclusive benefits as part of customer clubs. Do you already have a few ideas of your own? All the better – we can then make sure implementation will be perfect.


We will gladly show you options for your incentive marketing, advise you, and work with you to design a tailored strategy – just contact us.

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