Up to 78% of customers aren't loyal to any particular brand, according to a recent Nielsen study. The market is saturated. Too many retailers are selling similar products, and as a result, differentiating themselves and capturing brand loyalty has become difficult.

More brands and retailers then are turning to engagement as a key differentiator.

Traditional Loyalty vs Engagement-Based Loyalty Programs

Traditional loyalty programs have centered on transactions—driving repeat sales from a single customer.

Engagement-based loyalty programs, on the other hand, are focused on rewarding customers for engaging with a brand or retailer, and providing various forms of user-generated content, such as product reviews, Q&As, or user photos.

Those tactics not only foster a relationship with the customer and the brand or retailer, they also amplify the voices of the most passionate and engaged customers, nurturing a community of repeat purchasers into brand advocates.

With this newfound focus on engagement-based loyalty, brands and retailers are employing interactive platforms to encourage engagement and better capture user-generated content.

Here are three questions to keep in mind when developing your own engagement-based loyalty platform.

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image of Theresa O'Neil

Theresa O'Neil is the chief marketing officer at Showpad, a sales enablement platform that combines sales content, readiness, and engagement.

LinkedIn: Theresa O'Neil