The Marketers Guide to Building Customer Loyalty

Social media and customer loyalty go hand in hand. It's the modern medium that helps brands harness emotional engagement when building trust with their consumer base.

Understanding and nurturing customer loyalty can be a game-changer for social media managers, especially those navigating the often-changing trends of Millennial and Gen Z audiences. Social media becomes a place for to showcase your latest product or campaign, build connections and earn trust. When done right, social platforms become the ultimate loyalty drivers, turning casual scrollers into devoted fans who stick around and keep coming back for more.

What Is Customer Loyalty?

Customer loyalty refers to the relationship between a consumer and a brand. More specifically, this refers to the likelihood that a customer remains loyal to a particular brand or business. Part of this loyalty means choosing that brand over others, even when faced with a myriad of other options. Loyal customers aren’t just buying a product — they’re buying a brand’s values, story and the overall experience it offers. This loyalty translates into repeated purchases, positive word-of-mouth and sometimes, a willingness to pay a premium price for a brand they trust. At its core, customer loyalty means turning one-time buyers into lifelong supporters.

Share of Wallet, Explained

Share of wallet refers to the percentage of a customer's total spending within a category that goes to a specific brand or business. It's a key metric in customer loyalty because it reflects how much a customer favors one brand over its competitors. Another reason this metric is so important to measure customer loyalty is that increasing share of wallet is often more cost-effective than acquiring new customers, as it focuses on deepening the relationship with existing ones, encouraging them to spend more within the brand's ecosystem. This metric helps businesses identify opportunities to strengthen loyalty and maximize revenue from their current customer base.

Why Is Customer Loyalty Important?

Customer loyalty is crucial because it drives repeat business and transforms existing, satisfied customers into something more — brand advocates. Brand advocates amplify your message on social media. 

Loyal customers are more likely to share positive experiences, recommend your brand to others and engage with your content, which can boost your brand’s visibility and credibility for similar members in a demographic. On social media, customer opinions can quickly sway public perception, so maintaining a strong sense of loyalty helps build a dedicated community supporting your brand, leading to sustained growth and higher customer lifetime value.

How To Increase Customer Loyalty

Increasing customer loyalty on social media is key to driving long-term success for your brand. While it may seem challenging in a crowded online space, the right strategies will help you create a strong community around your brand. Here are some actionable tips to help you build — and maintain customer loyalty:

• Engage Consistently: Respond promptly to comments, messages and mentions to show your audience that you value their input.
• Create Valuable Content: Share content that resonates with your audience's interests, offering more than just promotions—think behind-the-scenes looks, user-generated content, and educational posts.
• Offer Exclusive Perks: Reward loyal followers with exclusive discounts, early access to new products, or special giveaways.
• Build a Community: Foster a sense of belonging and build your community by encouraging conversations among your followers, hosting live events or creating groups where they can connect with your brand and each other.
• Leverage Feedback: Actively seek and act on customer feedback to show that you’re listening and committed to improving their experience.

These strategies help turn followers into loyal advocates who keep returning and spreading the word about your brand.

Measuring Customer Loyalty

Tracking customer loyalty is more involved than simply monitoring who returns to your site. Going beyond this might seem tricky, but it’s easier than you think. These metrics give your team a clear picture of how well you retain customers and keep them engaged and are essential for monitoring your customer loyalty strategy:

• Repeat Purchase Rate: Check how often customers return to make another purchase. The more they return, the stronger their loyalty.‍
• Net Promoter Score (NPS): Ask your customers how likely they are to recommend your brand to others. High scores mean they’re happy and loyal.‍
• Customer Lifetime Value (CLV): Calculate how much a customer is worth to your brand over time. The higher the value, the more loyal they are.‍
• Social Media Engagement: Look at likes, comments, shares and mentions to determine your overall engagement rate and entertainment score. Loyal customers love interacting with your brand online, and determining which posts earn the highest engagement and entertainment score

Types of Customer Loyalty Programs

Since every customer and brand is different, many types of customer loyalty programs exist. The key is to find what resonates with your audience and aligns with your brand’s goals. Here are a few types of loyalty programs that work particularly well on social media:

• Points-Based Programs: Points-based programs are fairly simple and effective. They reward customers for every purchase or action, like sharing a post or referring a friend. Customers can then redeem points for discounts, free products or exclusive perks. Social media is the perfect platform to remind followers of their points balance and what they can earn by staying engaged.
• Tiered Programs: Create a sense of exclusivity by offering different reward levels based on how much customers spend or interact with your brand. For example, a bronze, silver and gold tier system can motivate customers to move up the ranks — think of Sephora’s Beauty Insider program, which has ‘Beauty Insider’ and ‘Rouge’ tiers for those who spend a particular amount each calendar year. Social media is a great place to highlight these tiers and showcase what’s up for grabs at each level.
• Referral Programs: Turn your loyal customers into brand ambassadors by rewarding them for bringing in new customers. Offer incentives like discounts or freebies for every successful referral. Social media makes it easy for customers to share referral links, and you can boost the program’s visibility through targeted posts and stories.‍
• VIP or Membership Programs: Offer exclusive benefits to your most loyal customers, like early access to new products, members-only sales or personalized offers. Promote these programs on social media by giving followers a sneak peek of what they’re missing out on, which will encourage them to join the VIP club.

Customer Loyalty Program Examples

When it comes to customer loyalty programs, some brands really know how to keep their customers coming back for more. Let’s take a look at three standout examples that have mastered the art of loyalty, especially with a strong presence on social media.

Sephora’s Beauty Insider Program 

Sephora’s Beauty Insider Program is a gold standard in the beauty industry. With a tiered rewards system (Insider, VIB, and Rouge), members earn points for every purchase, which they can redeem for exclusive products, discounts, and experiences. Sephora cleverly uses social media to keep its members engaged, sharing exciting new rewards, sneak peeks, and tips on how to maximize points. The program’s success is driven by a mix of valuable rewards and a strong community vibe fostered across its social channels.

Starbucks Rewards

Starbucks Rewards is another excellent example of a loyalty program that leverages social media to enhance customer engagement. Members earn stars for every purchase, which they can redeem on the app or in-store for free drinks, food and other perks, like merchandise or coffee beans. The program also includes personalized offers and challenges that are often promoted on social media, encouraging customers to earn even more rewards. Starbucks uses its social platforms to share limited-time offers and engage with its fans, making the rewards program feel like an integral part of the Starbucks experience.

Amazon Prime

Amazon Prime isn’t your typical points-based loyalty program, but it’s one of the most successful membership programs out there. For an annual fee, members get benefits like free two-day shipping, access to Prime Video, exclusive deals and more. Amazon uses social media to remind followers of the benefits they’re getting and to promote Prime Day, an annual event with deals exclusive to Prime members. The convenience and value that come with Prime keep customers loyal to Amazon, and their consistent social media presence helps reinforce this loyalty.

Transform Community Into Loyalty With Dash Hudson

Brands can take their loyalty programs to the next level by tapping into Dash Hudson’s Community Manager — with this, you can gather insights directly from your most loyal customers and join conversations to discover what they’re talking about and what matters to them most. Community Manager also features sentiment analysis to help your team gauge not just what your customers are saying about your brand but how they feel about your brand, too. With this data, you can fine-tune your loyalty programs to meet (and exceed) their expectations, ultimately boosting customer loyalty and creating a more connected, satisfied — and loyal — community.