If your company’s social media interactions revolve around advance announcements of sales, special offers and insider-only promo codes – to the point where receiving these things is the primary motivation for your fans and followers – then you’re essentially bribing customers to stay.

In this case, social media merely provides a pleasant, whitewashed cover for the bribery.

Thus, the very activities you’re hoping will improve your relationship with customers might well be actually hurting your reputation with them, making those customers less likely to pay your full price without balking.

This article will reveal four ways to build customer loyalty without bribery.

The Slippery Slope

How did your efforts get so off-track?

The downward slide started when you confused customer retention tactics with building true customer loyalty.

Here’s Harvard’s resident expert on service excellence, Francis Frei, explaining the difference between the two:

Francis Frei

“When companies pay customers to try out their products and services, it’s part of a customer acquisition program.  When companies pay customers to remain customers, it’s part of a customer retention program.

When companies invest in activities that increase customers’ willingness to pay, they have a customer loyalty program.  When a loyalty program works, it increases the chance that your customers will choose you over a lower-priced competitor.”

In other words:

• Retention programs bribe customers with frequent-flyer miles and “buy 10 get 1 free” cards.  They add economic incentives for current customers to return for their next purchase.  This is hardly a bad thing, but when done too often, it habituates customers to incentives, which promotes economic considerations over brand preference.
• Loyalty programs increase brand participation among high-value customers to forge bonds that trump economic decisions.  This can mean getting their input on strategic decisions, providing insider-only access to certain products and privileges, and more.  After customers have helped design the next-generation widget, they’re emotionally invested in buying and using it.  Even more so if, as a privileged insider, they’re provided with early access to those co-created products, or even exclusive access to special products as a sign of recognition for their efforts and input.

So what does this have to do with social media?

With social media, customers wish to interact with each other at least as much as they do with the business.  So to create a real customer loyalty program – and the premium price differential that goes with it – you have to create a customer community.

What’s that you say?  You already have a community?

What you likely have are thousands of single customers who have given minimal consent and “opt in” to receive communication from you. That’s not a community.  Heck, that style of one-way communication isn’t even a relationship.

Fortunately (and as you might expect), an appropriate social media strategy can transform your email list into an actual community.

Here are the 4 key elements to real communities along with the primary ways social media can foster each of them:

#1: Repeated Interaction

If I go months without seeing or talking or cross-posting or interacting with your company in some way, well, you’re probably a pretty peripheral part of my life.  The same goes for your customers.

But a sincere email traded back and forth once or twice a week for a couple of weeks in a row changes all that.  You’ve gained top-of-mind awareness as a conversational partner.  Your company has gone from an “it” to a “person” (or a “thou” for you Buber fans out there).  You could rightfully consider me part of your community.

And yet email is an extremely clumsy and intrusive platform for this kind of exchange.  Facebook, Twitter, an online forum, a Wiki or even blog comments all represent far superior methods of fostering this kind of day-to-day interaction.

But take note: what you’re looking for is back-and-forth between members, and between your company’s representatives and members.  One-off comments and one-way communication won’t cut it.  For a dramatic illustration of the difference, just compare Copyblogger’s comment section to your own blog’s comments.

#2: Interaction Involving Built-up Meaning

If your forum members or blog commenters or Twitter followers don’t have inside jokes, community-specific allusions, and their own slang, you probably don’t have a real community. It’s a harsh standard, but it’s the truth.

Unfortunately, you can’t create these things for your community.  You can only create an environment that will foster their creation. And the best way to do that is through engaging in projects that matter, which leads us to principle #3…

#3: Actual Consequences of Community Interactions

Something has to be at stake.  For communication to move past chit-chat, social grooming, and opinionated bloviating, there has to be a task or a mission or a conflict.

When people work toward a shared goal – when tomorrow’s discussion builds on today’s and so on – then decisions matter. Prior conversations matter.  And that’s when allusions, references, inside jokes, and slang build up as a natural result.

To continue with the Copyblogger theme, the whole “third tribe” meme that started off with a simple blog post and evolved into a separate community and learning site is a perfect example of this.  Third Tribers know exactly what is meant by that term, and by allusions to James Chartrand’s Underwear.

So to achieve Real Community Elements 2 & 3, you need to come up with a galvanizing goal – a project that people want to be a part of and would be willing to donate their time, efforts, and skills to.  Provide the platform(s) for interaction and the galvanizing goal and you’re off to the races.

Seth Godin routinely does this by providing an impetus and platform for meet-ups,  collaborative projects and ways for his fans to help him support his book launches.

#4: Separation of Outsiders from Insiders

Back during the initial flap following the iPhone’s barely-two-months-from-launch price drop, Seth Godin suggested that Apple offer early adopters the following considerations:

“Free exclusive ringtones, commissioned from Bob Dylan and U2, only available to the people who already had a phone. (This is my favorite because it announces to your friends – every time the phone rings – that you got in early).”

“Free pass to get to the head of the line next time a new hot product comes out.”

“Ability to buy a specially colored iPod or an iPod with limited-edition music that no-one else can buy.”

Rather than dealing with price drops by providing discounts or store credit, Apple could have provided increased recognition and therefore increased loyalty and willingness to pay a premium to maintain that loyalty and recognition.

Yet despite being one of the clearest paths to high profit margins, most companies fail to do these kinds of things at all, let alone do them through the very platforms and technologies most suited to them.  Instead they misuse social media and abuse their brand equity through ill-advised retention strategies.

What Loyalty Programs Does Your Organization Have?

How have you transformed your company’s email list or “group” into a real community?  What galvanizing goals have you used to inspire community involvement and crowdsourcing?  What special recognition do you give to your brand insiders?

Let us know your thoughts and ideas in the box below.

So what better way to understand social media than by looking at the fundamental principles of influence as taught by Dr. Robert Cialdini, professor of psychology and marketing at Arizona State University? In his seminal book, Influence, Cialdini covers six “weapons of influence”  that are hardwired into our social and cognitive minds.  In other words, we can’t help but behave in accordance with these laws of social interaction.

Does this sound like something useful to keep in mind during your social media engagements?  Well, let’s take a look six powerful persuasion techniques:

1. Reciprocation

In Cialdini’s words, the rule for reciprocation “says that we should try to repay, in kind, what another person has provided us. If a woman does us a favor, we should do her one in return; if a man sends us a birthday present, we should remember his birthday with a gift of our own; if a couple invites us to a party, we should be sure to invite them to one of ours.”

And so it is in social media: we’re more likely to retweet someone who has already retweeted us.  We link to people who have linked to us.  And we tend to give a business far more trust after it has provided us with a lot of free value.

Used manipulatively, this turns into autofollow bots that help you amass thousands of followers in a breathtakingly short time—none of whom may actually care what you have to say.  Doh!

Used more positively and constructively, if you focus on initiating reciprocity by providing no-strings-attached value to those in your network, you’ll ultimately wield far more influence.  Not because the gift economy is a new fad in marketing, but because following the law of reciprocity is how we’re wired as humans.

2. Commitment and Consistency

“Once we have made a choice or taken a stand, we will encounter personal and interpersonal pressures to behave consistently with that commitment.  Those pressures will cause us to respond in ways that justify our earlier decision,” said Cialdini.

Chances are, you follow too many people on Twitter.  And you’re signed up for more RSS feeds and newsletters than you can really read.  Objectively, purging your list of followers and unsubscribing would eliminate distractions and increase your social media signal-to-noise ratio.

But most people never make that purge and hardly ever unsubscribe.  Part of it goes back to reciprocation, but a larger part stems from consistency: you’re loath to admit that following and subscribing to those people and newsletters was a mistake.

On the positive side, how much more likely are you to comment on a blog that you’ve already commented on before?  Especially if you’re now “signed in” to comment on the blog during future visits—and if your Gravatar or Disqus headshot shows up next to the comments?

According to the principle of consistency, you’ll want to remind people of their previous positive commitments through perks, public displays, an elimination of friction for increasing their commitment, etc.  It works for Amazon prime, Amazon’s 1-click ordering, and Amazon’s reviewer system, and it will work for fostering blog comments and a blog community, too.

3. Social Proof

One method we use to determine correct behavior is to find out what other people think is correct. We view a behavior as more correct in a given situation to the degree that we see others performing it.

www.youtube.com/watch?v=GA8z7f7a2Pk

Just watch this video to see this in action!

Whether we admit it or not, most of us are impressed when someone has a ton of blog subscribers, Twitter followers, YouTube views, multiple blog reviews for their upcoming book, and so on.

Yes, people can game the system (autofollows and such), which can jade our intellectual response, but our core and initial emotional reactions stay the same.

On the positive side, creating a lot of value for others can help companies and individuals gain social proof via reciprocation: writing engaging content for guest posts, offering to interview authors and subject matter experts, and so forth.  Not only do these activities provide social proof in themselves, but they can help you gain a support network capable of “salting” your blog comments, your retweets, etc.

And when it comes to social proof, tribes matter.  It’s not just about what the mass of people are doing on social media that constitutes proof, it’s what other like-minded people and peers are doing.  So according to the principle of “social proof,” you should concentrate your social media efforts on finding and building social proof within your tribe.

4. Liking

“We most prefer to say yes to people we know and like,” says Cialdini. Extensions of this principle are:

1. Physical attractiveness creates a halo effect and typically invokes the principle of liking;
2. We like people who are similar to us;
3. We like people who compliment us;
4. We like things that are familiar to us;
5. Cooperation toward joint efforts inspires increased liking;
6. An innocent association with either bad or good things will influence how people feel about us.

How does this work for social media?  Well, to start with the virtual equivalent of physical attractiveness, we give extra credence to attractively designed blogs, messages contained in videos with higher production quality, and corporations’ landing pages displaying a better sense of social media savvy in their overall design and layout.

Similarly, individuals involved in coordinating joint ventures for the common good are associated with—and therefore “haloed” by—those efforts, while at the same time invoking cooperation toward a joint effort, which further increases “liking.”  Think of Seth Godin’s efforts at compiling free and thoughtful ebooks and then using the compilation to raise funds for a non-profit.  Bryan Eisenberg’s Trick or Tweet efforts from a year ago also come to mind.

As for complimenting others, what else is a retweet, a trackback, or a positive blog comment than a social compliment?  And yes, those are all activities you should participate in authentically, sincerely, and liberally if you wish to leverage the principle of liking to your advantage.

5. Authority

Cialdini talks about “The extreme willingness of adults to go to almost any lengths on the command of authority…”  In his book, he examines how authority can be conferred by (and also manufactured by) titles, clothes, and trappings.

In social media, authority is less about titles and clothes than about virtual trappings.  In his (fantastic) report, “Authority Rules,” Brian Clark talks about how perceived expertise can frequently differ from real expertise.  Meaning that the guy known for blogging about and offering intelligent commentary on a subject will likely have far more perceived expertise (and therefore influence as an authority) than a genuine but unknown non-blogging expert.

But perhaps the most direct measure of authority is the number of people who will buy or download a recommended resource based on little more than an authority’s endorsement.  How many people would buy a copywriting book simply because Brian Clark said it’s a must-read?  How many people will download a free PDF on nothing more than Seth Godin’s evaluation that it contains important insights?

But one thing social media has seemed to spark is a dawning understanding that authority is (or should be, at least) limited to a legitimate field of knowledge.  So when a relatively famous figure like Robert Scoble states on his website Scobleizer that search engine optimization isn’t important for small businesses, he’s “taken to task” on it rather severely.

6. Scarcity

Apart from reciprocity, this is perhaps the most used tool in social media.  When bloggers open up a class or inner circle membership or subscription service, it is never for an unlimited number of customers or for an always open/unlimited time.  Smart bloggers either create or fully leverage already existing scarcity by limiting seats available, length of time to buy, etc.

Laura Roeder has rather famously made scarcity a centerpiece of a signature technique,  wherein bloggers hold competitions with free services as a prize.  When contestants don’t win, they then value the prize more highly precisely because of the newly perceived scarcity.  This makes them more likely to accept a consolation prize of getting the services at a slight discount.

Parting Recommendations

While the six principles of persuasion started out as “weapons of influence” that were used against us by “compliance professionals,” I—along with Cialdini—would encourage you to practice the positive side of wielding influence. To sum up many of the recommendations from the post, here are some very positive ways to leverage the principles of influence to increase your social media success:

• Focus on creating value and initiating the reciprocity principle by gifting your social media contacts with high-value content, insights, reports, etc.
• Sincerely flatter your subscribers, friends, and commenters by responding to them and nurturing your growing community.  Actively reach out to people you admire using social media and pay them the compliment of commenting on their blogs, following their tweets, linking to their content, etc.
• Commit to consistent engagement on the social media platforms you chose to use, to the point of staying away from new social media platforms that you don’t have the resources to actively participate in.
• Use social proof as credibility cues where appropriate.  Show off your number of subscribers next to the Subscribe button.  Possibly use colleagues to “salt” your comments on important posts, build up your network by guest posting, commenting, and retweeting.
• Coordinate within your community on larger efforts for the greater good.  You’ll probably be psyched at what you create or accomplish, you’ll do good and feel good about it, and you’ll likely become associated with the effort.
• Put the extra effort in on achieving professional and inspiring design.  Dress for success on your blog, website, and social media landing pages.
• When creating a contest or trying to spark immediate action, use the scarcity principle to positive effect.  But be honest about it—no changing “last day for” dates, no miraculously replenishing supplies, etc

But, hey, I’d be THRILLED to add to the list if you recognize any of your tried-and-true techniques as falling within—or totally falling outside of—these weapons of influence.

What are your secret weapons of influence? Let’s engage.  Please comment below now.

But engaging in a conversation requires trust.  And just as no newsletter sign-up form or invitation should be without trust-building assurances and privacy statements, no social media invitation or landing page should be without its own persuasive and trust-building cues.

While looking at Adam Cohen’s recent rundown of social media landing pages (think landing pages that convey social media options for customers), I was struck by some observations.  Consider these four cues to incorporate into your social media landing page and campaign designs:

#1:  Provide Visual Indications of Connection and Instantaneity

Take a look at this eBags “Steal of the Day” offer, as taken by Rishi Rawat.

Notice that eBags not only points out how many bags are left, but how many shoppers are also being offered this deal right NOW as you are looking at the purse yourself. Is this really social media?

No, but it does show how instantaneity brings the human element into an otherwise “sterile” e-commerce experience.

Similarly below, on the Windows social media landing page, the ability to see the current forum comments and questions is powerfully persuasive.  The combination of transparency and perceived instantaneity create the desire to dive into the “conversational stream” that we see passing before us.

Microsoft gets it right!  The instantaneous Twitter feed makes us feel connected and lends credibility to the site and comments.  Putting the Twitter pics and names next to comments provides more credibility cues and a humanizing touch.

Those are both examples of employing this first principle to good effect. Now here’s an example where these cues are not adequately leveraged…

Best Buy’s page lacks the feeling of connection that Microsoft’s page has.  There are no social media cues to reassure the visitor.

Notice that the Twelpforce box is below the fold on the social media landing page and there are no cues of:

• Instantaneity or connection. We don’t see the stream of tweeted questions, nor do we see a McDonald’s-like counter of number of customers served/helped.
• “People” behind the tweeted answers.
• A high signal-to-noise ratio—no displayed answers to show that the responses are better than trusting to Google, FAQ pages, or scrolling through the forums.

#2:  Show Signs of the Real Person Behind the Technology

If you look back to the Microsoft social media landing page, you’ll see that pictures are attached to all of the displayed tweets.  That cues us to emotionally attach the “real people” warmth to the streaming tweets and comments.  Remember, social media is about connecting with people.  So include as many “real people” cues as possible.  Common ways to do this include:

• Attaching pictures to blog comments.  Almost nothing says “real person” more than an actual headshot.  Seeing a face humanizes the person behind the comment.
• Pictures attached to testimonials.  In the same way that handwriting personalizes a note, a picture of the customer can personalize the testimonial.
• Voice attached to testimonials.  There’s so much information attached to inflection, emphasis, tonal quality, and so on.  We just feel we can spot sincerity when we hear it—and that works to your advantage when you’ve got sincere customers willing to record a testimonial.
• Video testimonials. This is the best of both worlds: you get voice and pictures!
• Providing live chat with someone specific. Try changing the picture within the live chat icon according to which operator is “at bat.”  Everyone likes to know whom they’re talking with.  When you provide an actual picture, you give visitors more confidence to initiate a conversation.
• Providing a group shot of your customer service or social media team.  Sometimes providing a picture of the individual service tech isn’t feasible, but providing a group shot is.  Best Buy could certainly do this and it would sync nicely with their current “Ask a Blue Shirt” TV commercials.
• Making sure your corporate social media initiatives have a personality behind them.  Bureaucracies don’t have authentic personalities. If projecting your authentic self is crucial to social media success, then a corporate-looking social media landing page is probably doomed from the start.

#3:  Show You Deliver Value

While social media holds out the promise of human contact and intelligent response, it also presents the risk of the knucklehead factor.  No-one wants to open themselves up to spam, troll-like responses, and a customer service rep whose only knowledge of the problem stems from the flow chart in front of him.

To engage more visitors with your social media efforts, you will need to include cues that indicate you provide value—many more intelligent insights, answers, and offers than selfish promotions and corporate PR-speak.

If Best Buy displayed the responses to tweeted questions, this would allow them to demonstrate the quality of their answers and a high signal-to-noise ratio.  Similarly, allowing transparency on Twitter streams, Facebook updates, and so on can allow the wary to see for themselves what kind of signal you’re sending.  This obviously overlaps a bit with the connectivity and instantaneity cues discussed earlier.

Showing your social media team’s pictures indicates that you hold them in high regard, which equates to a higher likelihood of intelligent answers, tweets, blog posts, and so forth.

#4: Use a Strong Call to Action

Social media doesn’t eliminate the need for traditional usability and conversion best practices.  Visually prominent and clear calls to action will continue to outperform subtle text-based links.  Compare the “See this Steal” and “Join the Conversation” buttons in the first two examples with Best Buy’s “Visit ____” text-based links.  Which is more inviting to you?

As with almost everything on the Internet, it always pays to test—both through user testing and A/B or multivariate testing.  As my good friend and mentor Bryan Eisenberg would say, “Always Be Testing.”

What do you think about social media cues? Are they valuable? Please add your comment below.