Loyalty Programs and Communities

As businesses start to embrace Web 2.0 they are wise to recognize that they already have a community in place to tap into, their existing loyalty program. However, there are some big differences between the traditional loyalty program you incubated on the web and what most people are referring to when they talk about Web 2.0 and the social web. 

Today, most social communities are organic, self organizing groups of individuals that share a common interest. Just like a local church group, PTA, or the cool kids clique in high school, these communities have their own language, rituals and social norms. These groups are free to decide these ideals for themselves and are typically resistant to outsiders telling them what they should be doing, how they should be acting, or what they should care about. The same goes for self-organized communities online.

When it comes to your loyalty program, this is more often than not, a community built around your brand. You organize it, you set the rules, and you determine how communication takes place. In  exchange, you provide something of value back to the community such as proprietary content or monetized offers.

While this approach has been tremendously successful for many brands, it is not for all. If you are not a Purple Cow or you don't have tremendous brand enthusiasts out there, you may be heading for a headache. You may be better off reaching out to existing communities that are relevant to your verticle or contain high concentrations of your target audience.