A report from Loyalty 360 found that 27 percent of businesses included in a recent poll said social media marketing is their best tool for customer retention.

Social media marketing helping with customer retention

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More than 27 percent of businesses included in a recent poll said that social media marketing has been the most effective channel for customer retention, according to research from Loyalty 360.

Social media marketing was the most successful channel in terms of customer loyalty, the report found. More than 25 percent said customer analytics have the biggest impact on retention, while 24.5 percent reported reward programs are top for loyalty marketing.

Contributing to its success as a loyalty channel, social media marketing provides an opportunity for businesses to speak directly with their existing customers and reach new prospects. Responding to questions, concerns and other feedback will help boost businesses’ reputation.

Moreover, customers enjoy the accessibility of companies that use social media marketing as it can be used as a customer service channel. However, missing engagement opportunities on a regular basis will negate any positive benefits of social media marketing.

“Given the volumes of consumer-generated content and the greater emphasis customers are placing on reviews and recommendations inherent in this feedback, it’s not surprising that social media and customer analytics top this list,” Mark Johnson, CEO of Loyalty 360, said in a release.

Keeping customers engaged with social media marketing helps businesses retain customers, but it also attracts new ones. As such, businesses are using the channel as part of greater internet marketing campaigns aimed boosting their web presence. Brafton recently reported that 58 percent of businesses plan to increase social media marketing to improve their online visibility.

Joe Meloni
Joe Meloni is Brafton's former Executive News and Content Writer. He studied journalism at the University of Massachusetts, Amherst, and has written for a number of print and web-based publications.


  • Jennifer_Geisler

    Great informative article. I completely agree that social media marketing has become one of the most effective channels for customer retention. Little customer retention costs businesses a lot of money and the marketing department a lot of time and resources. I have found that the key attributor to customer retention from social media is the way it engages customers/partners/followers/etc. As the Marketing Director of the Cisco Government Practice, I have found that deploying a digital marketing campaign in conjunction with conferences and events creates an interactive community that is fun, interesting and increases participation for users not only during the event, but before and after as well. This eliminates the possibility that customers forget about the event once it is over. And the engaging experience the users had at the event from integrated social media creates retained customers. Thanks again for the great read, I hope to see marketers start to integrate social media in other aspects of their business to allow for even more customer retention!

    • JoeMeloni

      Thanks for reading Jennifer. We are currently working on another piece that points out that businesses love social, but they’re still unclear on how much to dedicate to the channel. Glad to see you’re experiencing the benefits, though. Thanks, again.