Going the Distance: Four Ways to Build a Better Customer Loyalty Program for Your Brand

It’s easy enough for a customer to join your loyalty program, especially when you’re offering an incentive such as discounts. All your customer has to do is give out some basic information, and voila! They’re in the fold, a brand new loyalty member with your company. From there, it’s happily ever after. You offer the perks; they stand solidly by you, bringing you their continued business. Simple. Or is it? In reality, just how many of those customers are act ively participating in your loyalty program? Do you know? Sure, loyalty program memberships are on the rise according to market research company eMarketer, having jumped 25 percent in the space of just two years. However, that figure may be a bit misleading. The truth is that, while loyalty program sign-ups may be more numerous, active participation in such programs is actually in decline. At the time of the study, the average US household had memberships in 29 loyalty programs; yet consumers were only active in 12 of those. That’s just 41 percent. And even that meager figure represents a drop of 2 percentage points per year over each of the preceding four years, according to a study by loyalty-marketing research company COLLOQUY.

When discounts just aren’t enough

So what’s a brand to do? How can you make your loyalty program worth your customer’s while—as well as your own? After all, gaining a new loyalty member doesn’t mean much if your customer isn’t actively participating in your program. Consider this: Does your customer loyalty program offer members anything different from what your competitors are offering? Chances are your program includes discounts. That’s a given. And what customer doesn’t appreciate a good discount? But when every other company out there is providing this staple benefit in comparable amounts, it becomes less and less likely that customers will remain loyal to any one particular brand. Frankly, it’s all too easy for customers to get lost in a sea of loyalty member discounts. They’re everywhere. In fact, just under half of internet users perceive that all rewards programs are alike, according to a 2015 eMarketer survey. The key to success, then, is to differentiate your business from the crowd. If you can offer your customers something unique and valuable beyond the usual discount, chances are they’ll be more likely to stick with your brand. Here’s some inspiration from companies who get it.

Virgin: Reward more purchases with more benefits.

That’s not to say you need to get rid of discounts entirely. In fact, nothing could be further from the truth. Customers still love a good discount. The goal is to be creative in terms of the loyalty perks you offer. Take the Virgin Atlantic Flying Club, for example. As part of its loyalty program, the airline allows members to earn miles and tier points. Members are inducted at the Club Red tier, from which they can move up to Club Silver and then Club Gold. Here, it’s not just a discount. It’s status. And people respond to feeling important, elite. Still, even where the rewards themselves are concerned, Virgin is motivating loyalty customers with some pretty attractive offers. At the Club Red tier, members earn flight miles and receive discounts on rental cars, airport parking, hotels and holiday flights. But as members rise in tiers, they get even more. At the Club Silver tier, members earn 50 percent more points on flights, access to expedited check-in, and priority standby seating. And once they reach the top, Club Gold members receive double miles, priority boarding and access to exclusive clubhouses where they can get a drink or a massage before their flight. Now that’s some serious incentive to keep coming back for more. Discounts are still part of the equation – but they are designed with innovation and personal value in mind, elevating them to more than just savings.

Amazon Prime: Pay upfront and become a VIP.

What if your customers only had to pay a one-time upfront fee to get a year’s worth of substantial benefits? It may not sound like the smartest business idea at first glance. But take a closer look. Amazon Prime users pay a nominal $99 a year to gain free, two-day shipping on millions of products with no minimum purchase. And that’s just one benefit of going Prime. It’s true that Amazon loses $1-2 billion a year on Prime. This comes as no surprise given the incredible value the program offers. But get this: Amazon makes up for its losses in markedly higher transaction frequency. Specifically, Prime members spend an average of $1,500 a year on Amazon.com, compared with $625 spent by non-Prime users, a ccording to a 2015 report from Consumer Intelligence Research Partners.

Patagonia: Cater to customer values.

Sometimes, the draw for consumers isn’t saving money or getting a great deal. The eco-friendly outdoor clothing company Patagonia figured this out back in 2011, when it partnered with eBay to launch its Common Threads Initiative: a program that allows customers to resell their used Patagonia clothing via the company’s website. Why is this program important to customers? And how does it benefit Patagonia? The company’s brand embraces environmental and social responsibility, so it was only fitting that they create a platform for essentially recycling old clothing rather than merely throwing it away. The Common Threads Initiative helps Patagonia build a memorable brand and fierce loyalty by offering its customers a cause that aligns with deep personal values. OK, so their customers get to make a little money, too. Everybody wins.

American Airlines: Gamify your loyalty program.

If you’re going to offer your customers a loyalty program, why not make it f un? After all, engagement is key to building a strong relationship with your customer. And what better way to achieve that goal than making a game of it. American Airlines had this very thing in mind when it created its AAdvantage Passport Challenge following its merger with USAirways. The goal: find a new way to engage customers as big changes were underway. Using a custom Facebook application, American Airlines created a virtual passport to increase brand awareness while offering members a chance to earn bonus points. Customers earned these rewards through a variety of game-like activities, from answering trivia questions to tracking travel through a personalized dashboard. In the end, participants earned more than 70 percent more stamps than expected – and the airline saw a ROI of more than 500 percent. The takeaway: people like games.

Stand out from the crowd.

Your approach to your customer loyalty program should align with your overall marketing approach. Effective branding is about standing out, not blending it. Being memorable is key. To this end, keep in mind that loyalty programs are no longer a novelty. That means that yesterday’s strategies won’t work moving forward, so look for ways to rise above the noise, setting yourself apart from the cloying drone of countless other cookie-cutter programs.

10 One-of-a-Kind E-commerce Websites That Put Ordinary Sites to Shame

This collection of creative e-commerce websites includes those that take a unique approach to creating a storefront, and each are discussed in light of what makes their creative designs work so well.

Hopefully, you too can find some inspiration in the collection below to help you in your own e-commerce website designs. Which of these made a big impression on you?

Mom and Popcorn

This vintage website is a very unique experience in that it jumps off the page and makes you forget what decade you are really in. Although not the typical clean cut design of most popular e-commerce sites, it remains easy to use and bursts with creativity. It is very easy to find what you are looking for and the prices are prominent. You don't have to click around aimlessly to figure out what to do next. Five stars for Mom & Popcorn!

The Affair

The Affair is a UK based, offbeat clothing company that makes no apologies; neither for its darkness and morbid atmosphere, nor for its unique shopping design. Although simple and uncluttered, it is anything but standard. For one thing it has a discreet but impossible to miss shopping cart link in the corner. When an item is added to the cart, there is an animation of the selected item dropping into the shopping cart. This is a great touch because so often people click several times to be sure their selection was made and end up with too much in the cart at the end. With The Affair's unique concept, there is no confusion. Another useful feature is that each product's thumbnail offers a 360 degree view so you can examine it from all angles. It's these details that make all the difference.

Storenvy

Storenvy is ingenious, both in concept and in execution. It takes social networking, Etsy, and Pinterest and combines them all into one with an interface as easy to use as Blogspot. It allows users to create their own store to sell stuff, or to buy by browsing hundreds of items from different sellers at once. It is able to pack a lot of information and products into a small space without getting cluttered or confusing. It comes with a built-in store creation wizard to make it super easy to get out there and sell your goodies. I only wish I had thought of it first!

Saddleback

Saddleback is a beautifully and meticulously designed website that sells all types of leather products. Every element of the site contributes to its design, which is a breath of fresh air from other designs that can be weighty and cluttered, even if nice looking. The attention to detail is what makes this rich site still completely practical and usable. One particularly nice touch is that it includes a list of the sites of their business rivals, making it easy to see that Saddleback is the complete package.

Heartbreaker Fashion

Heartbreaker has a pleasant design with a good use of patterns and textures, which is what makes it different from other creative e-commerce websites. The trend has been to avoid patterns because they can distract shoppers from the product. When done right, however, it can really enhance the store front. Heartbreaker also has a handy shopping cart box in the footer of the site as well as the top. Even though it breaks the mold, it is still very user friendly, and even stronger for it.

Oi Polloi

Oi Polloi is a retro site that sells clothes and footwear. It is surprising to find that it does not have a shopping cart immediately available - only once an item is selected does a shopping cart (here called a "Basket") descend as an overlay to the site, showing exactly what you bought, what size, and how much it is, as well as a subtotal. So there is not a separate page for the checkout, which is quite efficient in my opinion. Never be afraid to reinvent the wheel!

A Modern Eden

A Modern Eden sells prints, decals, and stuffed animals with strange angular designs. It makes use of trendy colors, and where normally the bright green background would be tacky or distracting, in this usage it is not only appropriate but adds greatly to the fun and feel of the site. The ribbon highlighting the shopping basket icon is a very nice touch as well.

Patrick Ervell

Patrik Ervell sells fashionable men's clothing with a really cool twist. Where expensive men's clothes can often appear stiff or uncomfortable, this site helps guys envision themselves wearing the clothing, with use of live moving models with every product! Normally this is a huge no-no. Animations can quickly become a very bad idea, especially if there is more than one moving item per page. But Patrik Ervell accomplishes it beautifully, with a sterile white background and simple, concise text only interspersed where necessary.

Marie Catrib's

Marie Catrib's uses vivid pastel colors; friendly, bold text; and interesting dotted lines and patterns to make the pastry and bread products come alive. Some unique elements include the ability to search by vegan or gluten-free, a toggle button to hide half the website to focus on browsing, most information in the footer, and having ALL the offered products on the home page of the site. Simple, easy to use, and captivating.

Brand Neusense

Brand Neusense breaks a lot of rules by being too crowded, having too many colors, and incorporating too many animations - yet, somehow it all works. First of all, the models look like real people, not - for lack of a better word - models. Even more so, though, this creative e-commerce website stands out because the homepage focuses more on the various brands it sells and on ads than it does on its product. It is designed thoughtfully for its target market, and that's all you can ask of a web designer.

So whether you have an upcoming creative e-commerce website design project coming up or you need to revamp your e-commerce site design, use the examples above in your decisions. Doing your research and noting what others do right (or wrong) is one of the best ways to create a website that puts ordinary to shame.

The Ever-Changing Face of Facebook

With the advent of another quarter comes another sweeping round of changes from our good friends at Facebook. In what is becoming a weird mix of techie tradition and rage-inducing behavior for the average Joe, Facebook will be rolling out a barrage of new updates over the upcoming weeks.

Now that the inevitable initial backlash has subsided (You changed ma Facebooks!1! Facebook is going to start charging for their services!!), let’s dive in and look at what’s ahead.

Timeline

The most significant update is the introduction of the Timeline – Facebook’s version of an online scrapbook. Once it’s been fully rolled out, the Timeline will replace the user’s profile page and will more closely resemble a blog, complete with a header image, summary bio information and a quick overview of friends, photos, likes and notes.

Scrolling further down the Timeline, you’ll see highlights from the user’s Facebook footprint over the years, laid out in reverse chronological order. Scroll down far enough, and you’ll see a hilarious new section for the user’s birth.

Yes, Facebook is no longer content with shaping our present and future. Zuckerberg & Co. have now devised a way to retroactively insert themselves into our past, too.

All joking aside, the interface is fairly intuitive and fun. While some have raised privacy concerns, as with every other service that Facebook offers, Timeline only works with the information that its users provide. Preventing photos or life events from being made public is as simple as not posting them.

News Ticker

If the Timeline is the most visually appealing new update, the News Ticker is probably the least (and possibly most annoying).

The Ticker is like status updates on steroids, providing running commentary – er, updates – whenever one friend comments on another friend’s photo, comment, etc.

Whereas previously a user’s interaction with their friends’ updates was mostly limited to the ones they commented on or liked (triggering notifications whenever someone else subsequently commented on the same item), Ticker operates from the assumption that users don’t want to miss a single instance of activity between any of their friends.

While I’m not necessarily opposed to the concept of the Ticker, in its current iteration, it definitely feels like information overload. It would be preferable if this feature could simply be hidden or deactivated.

Subscribe

Taking a page from Twitter, Facebook now makes it possible to subscribe to a user’s profile, rather than adding them as a friend. So in case you want to follow (a la Twitter) someone you don’t know on Facebook without the creep factor of adding them as a friend, now you can just subscribe to their updates. Then again, maybe that is the creepier of the two options…

Smart Friends lists

Oh, Facebook, again with the blatant Twitter homages. Their new “smart” Friends lists are exactly what they sound like: Facebook creates and auto-populates certain default categories (work, school, family, city) of Friends to allow users to easily view updates only from contacts in that particular group.

This isn’t necessarily a bad update, but it’s probably only truly useful for those who are approaching their 5,000 friend limit and need an easy way to slice and dice their friend-base.

Recent Stories vs. Top Stories

Finally, Facebook has revamped the way updates are displayed in the home news feed. In the past, users had the option to choose between “All Updates” – activity from all friends displayed in reverse chronological order – or “Top News,” which was aggregated and ordered based on Facebook’s EdgeRank algorithm.

Facebook has now eliminated these options by creating a hybrid of the two. The jury is still out on this new beast, but it appears that it might not be a bad compromise.

On login, Facebook displays a selection of “Top Stories” mixed with “Recent Stories.” As a user spends more time on their home news feed, Top Stories are filtered out and the feed returns to a straightforward view of Recent Stories (i.e., updates from friends/pages as they happen in real time).

Users also now have the power to select certain updates as Top Stories to further customize their news feed in the future. Conversely, they can deselect those updates that don’t make the cut for relevance and interest.

What do these changes mean for you?

While none of the most recently announced changes directly affect Pages, they are not without implications for those who use the platform to engage with customers and clients.

First, the evolution of the news feed and the introduction of the Ticker mean that it’s more important than ever for brands to publish exceptionally valuable, relevant content that encourages interaction from fans in order to ensure visibility in their feeds.

Secondly – and perhaps most importantly – despite the latest round of loud complaints from its most vocal users, Facebook’s growth shows no signs of slowing. Recent data from Nielsen indicates that users are spending an ever-increasing amount of time on Facebook – more time even than on Google, Yahoo, AOL and Microsoft sites combined. And Facebook remains dedicated to driving innovation in their interface and the ways that users can engage with the platform. As new options and features continue to emerge, Facebook will become the default online home base of more and more users, making it an invaluable vehicle of communication between companies and their customers.