Social rewards on social networks are an engaging new way for companies to interact with customers, but there are concerns about whether they are just a passing fad or a new effective customer relationship management approach. While social rewards can initially attract many active users and bring more customers, people may lose interest quickly if the content and rewards do not evolve. Additionally, without strong support, reputation scores can be manipulated. However, if properly linked to a company's real business and offerings, social rewards show potential as a new CRM approach for companies to gain broader audiences and benefit loyalty programs, even if long-term loyalty is uncertain given how volatile people can be in social media.
