Social media can be an extremely powerful tool for improving customer retention, it has been suggested.
A vast amount of valuable information can be gathered from social media, according to Nick Brown of GB Group.
Writing in a blog posting for MyCustomer.com, Mr Brown explains that sites like Facebook and Twitter allow firms to monitor the conversations customers are having about brands without having to ask them directly.
This information can then be used effectively in shaping a loyalty program. Mr Brown adds: "By harnessing the power of social media and using it as a tool for learning, retailers will be able to profile their customers with more accuracy and can therefore better tailor the rewards they offer them."
Elemental director Tim Gibbon also believes that social media can help brands engage themselves with customers and develop a relationship.
Posted by Richard Jones
