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.

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Shut Up and Blog Already

You know you should do it. You know other people who do, and they make it look so easy. And yet you can’t think of anything more intimidating than staring at a blank page and a blinking cursor. You can find reasons all day long to rationalize why you haven’t yet started your own blog, but none of those justifications are going to help your business grow. It’s time to stop being your own worst enemy and start understanding why the excuses that are holding you back are all in your head.

1. I’m not a writer.

So you’re not a writer – at least not by trade. Big deal! Neither are many very successful bloggers. They’re entrepreneurs, artists, community activists, foodies, moms and even CEOs. Instead, what they have in common is passion. Always keep in mind that what you have to say is far more important than the mechanics of how you say it. A blogger’s purpose first and foremost is to entertain and engage. If your punctuation is less than perfect or your sentence structure leaves something to be desired, no one is going to report you to the grammar police. But if there is no conviction behind your words, no one is going to invest their time in reading your blog week after week. Your writing style should be easy and informal. Don’t approach the task of creating a post like you’re writing a research paper. Instead, imagine you’re sitting down to dash off a quick e-mail in response to someone who has asked you a question about your chosen topic. Keep your entry brief and conversational. When you’ve finished writing, read your post aloud to yourself. If you trip over words or phrases because they feel unnatural or clunky, go back and simplify them. Always keep in mind that what you have to say is far more important than the mechanics of how you say it. No one is grading your blog with red pen in hand. Authenticity and personality count far more than perfection any day of the week. Just loosen up and let your own voice come through. Not only will this make your writing more approachable, it’s the very foundation of building credibility and trust. After reading one post, your readers should feel as if they’ve met you; if they continue to follow your blog over time, they should feel as though you’re a familiar friend.

2. I’m not a designer or a programmer.

Stop right there. Nope – not another word. Can you use a word processor? Can you open a web browser window? Can you attach a file or a picture to an e-mail? If you answered “yes” to all three of these questions, then congratulations, my friend, you have all the technical and artistic know-how you need to be a blogger! There’s no reason to let technophobia hold you back from reaping the benefits of blogging – not when you can take advantage of user-friendly, do-it-yourself tools like Google’s Blogger. Blogger is designed to give anyone the power to publish. The interface is so intuitive and easy to navigate that you can have your blog up and running in just minutes, and best of all, it won’t cost you a dime. Simply choose from an assortment of templates, select your preferred combination of colors and fonts and away you go. Creating posts is easy, too, and you can even enhance them with links, photos and video. You also can assign each article to a subject category of your choosing to help your readers find related content according to their specific interests. Of course, you’ll get an even greater return on your time and effort if your blog is hosted on your own website, since your visitors can read your latest entries and peruse your archives without ever leaving your primary site. Still, there’s no cause for concern. Simply partner with a good web development firm like Fame Foundry that can help you integrate your blog into your existing website in a way that’s consistent with your brand and provide a content management system that’s just as easy to use as any of the free do-it-yourself tools. No matter which approach you choose, you’ll be surprised to find how simple it is to get your blog up and running and how little time it takes to publish new content.

3. I wouldn’t know where to begin.

One of the best things about blogging is the fluidity and flexibility of the medium. As a blogger, you are your own writer, editor and publisher. That means that there are no hard-and-fast rules to which you must adhere. Think of your blog as a blank canvas that’s waiting for you to add color, shape and texture. As a blogger, you are your own writer, editor and publisher. There are many different ways you can approach blogging – each one of them just as valid as the next. You might choose to use your blog as a platform for reporting industry news and forecasting trends, for providing useful advice and how-tos or for journaling your personal experiences in order to help others who are trying to achieve similar goals. Some very popular blogs like Catalog Living are nothing more than an ongoing series of images with funny captions. One of the best ways to get started is not by writing at all. Instead, it’s by reading. If you’re seriously considering starting your own blog, you should make a point of reading other blogs every day – blogs that talk about subjects that relate to your business and industry, blogs written by your competitors and even blogs that have nothing to do with your particular field but that you find enjoyable and entertaining regardless of the subject matter. Subscribe to the RSS feeds for these blogs and set aside a few minutes each day to scan through the latest posts. You don’t need to read every entry, just the ones that strike you as most interesting. Look for commonalities among the blogs you read daily for pleasure. What do you enjoy about them most? When you find an article that you can’t stop reading, take a moment to analyze why it is so compelling. Is it the writer’s voice, their unique approach to their chosen topic or the way they’ve organized their argument? Pay attention as well to the headlines that catch your eye and think about what makes them captivating. Over time, as you assimilate these observations, you will achieve clarity about what you want your blog to be and how to craft posts that will keep your readers hooked.

4. I don’t have time.

Blogging is a medium created by and for the culture of the Web, which is one in which attention is always at a premium. As a result, it is the ideal information exchange platform for the time-starved – both writer and reader. Blogging is not an exercise in filling up a page. Your job is to take one very narrowly defined topic and put your unique stamp on it. Blogging is not an exercise in filling up a page. More than newspapers, more than magazines and more than trade journals, blogging is about specificity. Your job is to take one very narrowly defined topic and put your unique stamp on it. Some of the best, most powerful blog posts are also the shortest. At Fame Foundry, one of our favorite bloggers is Seth Godin. His entries are rarely more than five or six brief paragraphs in length (some are as brief as five sentences), but every last one of them hits home. We are devoted followers of his blog because we know that in exchange for just a few minutes of our time each day, we’ll walk away with profound insights that inspire us or reinforce our belief in the way we do business. Blogging is not your full-time job, nor should it be, so follow Seth’s example. Use the time you do have to string together a few sentences, but make each one of them count. Keep your topics focused and your points sharp. Short, compelling posts will make your work as a blogger manageable while keeping your readers coming back for more. Also, remember that writing is like running. The first time you strap on a pair of shoes and hit the pavement, every step is painful and every breath is labored. But the more you do it, the more effortless it becomes. Whereas once you might have thought you’d never complete a full lap around the block, soon you’re taking on a 5k as though you’ve been a runner all your life. The same principle holds true for writing. With practice, you’ll get better and faster. It might take you two or three hours to write your first entry, but once you get a few under your belt, you’ll find you can crank out a post in just an hour, half an hour or even 20 minutes. The creative process that at first feels arduous and awkward will soon become routine and, believe it or not, even enjoyable.

5. I don’t have anything interesting to say.

Don’t think of your blog as a podium; think of it as the microphone at the center of a town hall meeting. You aren’t there to deliver a monologue; you’re there to start the conversation. Your job is not to sell; it’s to educate, inform, entertain, excite and provoke thought while leaving room for others to join the discussion. Here’s a piece of age-old writing advice: Write about what you know. When you write about what you know, you’ll write with passion and authority. Your writing style will be more natural and conversational, not like you’re writing a term paper. You’ll have the confidence to make big, bold statements, and you’ll never run out of things to say. Here’s a piece of new-age blogging advice: Write about what you know, but do it in a way that’s different from anyone else. With hundreds of millions of blogs in the world, it’s likely there are many others that cover the same general subject matter as yours will. What will set you apart is the way you apply your unique cache of experience, expertise and perspective to that subject to create original content that is useful and interesting to your readers. Let’s say you run a bakery. Baking is a science, and you are an expert in that science. As a result, you have a limitless source of material. How many people understand the fundamentals of baking a basic pie crust? How many would love to know how to make use of that bread machine that’s been collecting dust in the cabinet since their wedding shower? Are there other blogs in the world about baking? Of course. But none of them have your distinct voice, your particular experience and your individual point of view. Maybe you own the neighborhood coffee shop. Nowhere is it written in stone that you must write about coffee. Your blog could be about the neighborhood you serve – what’s going on, the issues people are concerned about and the events that are happening around you. For you, a post could be nothing more than a collection of photos from the neighborhood chili cook-off. Does that have anything to do with what you sell? Nope! Are people interested in it? You bet! The loyal local following you could build with this type of blog is something that even Starbucks or Dunkin' Donuts would envy.

6. I can’t come up with enough good ideas to keep it going.

If you sit down in front of a blank page and wait for great ideas to come, chances are, they won’t. You’ll just find yourself staring at the cursor, anxiety building as the minutes tick away. Instead, to be a successful blogger, you should be constantly mining the world around you for inspiration. Just as reading other blogs can help you develop your voice and sharpen your point of view, it is also a bottomless wellspring of creative fuel. To be a successful blogger, you should be constantly mining the world around you for inspiration. As you browse through your RSS feeds, you might come across an article that you disagree with completely. Why not share your take on the subject? Or perhaps you stumble upon an interesting observation and find a way to tailor it to be relevant and relatable for your particular audience. You might even find ideas spread across four or five different articles that you can weave together into a comprehensive how-to guide for your readers. No matter the source, you’ll likely find that inspiration rarely strikes at your convenience, when you have time to sit down and write a post. To make sure you never let a good idea go to waste, keep a running idea log. This doesn’t have to be anything formal – just a simple text file or even a handwritten journal will do. The most important requirement is that it can be kept within easy reach at all times. Jot down any and every idea as it comes to you, even if it’s not fully developed. Include the link to the article that inspired you and make a few basic notes about what you want to say on the subject to help jog your memory later. When it comes time to write your next post, simply choose a topic from the list and pick up where your notes left off. You’ll never find yourself wasting your precious blogging time just hoping and praying to land on a great idea.

7. No one will read it anyway.

For a while, it might feel like you are talking to an empty room. You’ll be tempted to throw your hands up and quit, but don’t. Persistence is your friend. Successful bloggers stick it out. You must begin with reasonable expectations and realize that it might take a year or more to build a following. However, even while your readership is low, your efforts are not in vain. Persistence is your friend. Successful bloggers stick it out. Think of your initial weeks and months of writing as laying the foundation for your blog. Your first entries will be fundamental in establishing who you are and what you stand for. You’ll likely find yourself referencing these foundational posts again and again, and by linking back to older articles, you’ll encourage new visitors to delve into your archives and see what else they might have missed. It’s also important to understand that your job is not done when you hit the publish button. Traffic building is just as much a part of blogging as research and writing. Post links to your latest content on social networks like Facebook and Twitter. Also be sure to include social media badges on your posts to make it easy for your readers to share content that they like with their friends and followers. Another way to bring more eyes to your blog is by becoming an active participant in the community that exists around your topic. As you are scanning through your RSS feeds each day, look for opportunities to post insightful comments with links back to your blog when relevant. You should also approach the owners of more well-established blogs and volunteer to write a guest post, which will give you exposure to their regular readers. Likewise, invite other bloggers to write for you. They’ll promote their gig, and you’ll benefit from their connections. Finally, remember that blogging isn’t just a numbers game. If the purpose of your blog is to help your business grow, it’s not about the volume of readers but the quality of your readership. Are you reaching people who might have a need for your product or service? Are those readers actively engaged? Do they make a point of reading each and every new post? Are they sharing your content with their circles of friends? A small community of dedicated followers who fit within your target audience and evangelize for you is much more valuable than thousands of disengaged subscribers who might only occasionally read your articles and will never buy from you.

Sit down. Start typing.

You’ll never blog if you don’t try. Start reading. Start writing. Before you publish anything, ask friends, colleagues and mentors to review your drafts and give you their input. Your initial attempts may never even see the light of day, but that’s okay. These practice runs will help you dust off your writing skills, define your content niche and get the ideas flowing. If you need a push in the right direction, let Fame Foundry help. We can work with you to launch your blog and help you develop relevant, original content that will establish you as the voice of authority for the tribe of people who share a passion for what you do.

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Left in the Dark? The Pitfalls of Taco Bell’s #OnlyInTheApp Social Media Stunt

Taco Bell recently unveiled a new mobile app, available for both iOS and for Android, that “gives consumers complete access to every Taco Bell ingredient to create what they want, when they want it – all in the palm of their hand.” The app allows customers in drive-thru or in their dining room to order and pay for items directly on their mobile device. The app itself may be a great idea, but the marketing push behind this new addition from Taco Bell is certainly raising some eyebrows. The company decided to “go dark” on their social media platforms and on their website, replacing their normal content with a black background and a large message that says that “the new way to Taco Bell isn’t on the Internet, it’s #onlyintheapp”, using a hashtag that they have created for this campaign. While I can appreciate the company’s desire to focus heavily on marketing this new feature, doing so at the detriment of all their other messaging and marketing channels is short-sighed. In this article, we will take a look at the possible benefits of this “all in” approach and why Taco Bell may have done this, as well as the pitfalls of this type of campaign and putting all your eggs, or in this case all your tacos, in one basket.

Information on demand

We live in world where immediate access to information is now expected. Have a question? You can whip out your phone or open the web browser on your desktop computer and hop over to Google for the answer. The same holds true for the services we use or products we buy, including menu items and locations or contact information for restaurants. Having worked on websites for restaurants in the past, I can tell you from experience that this information, menu and locations/contact, are some of the most heavily requested pages on those sites. Taco Bell’s current marketing approach, and their decision to “take down” their normal website in favor of a marketing message and nothing BUT a marketing message, is not a customer-friendly decision because it runs contrary to the information on demand culture that our customers have come to expect from websites. Now, to be fair, Taco Bell did not actually take down their entire site. If you run a search engine query for “Taco Bell Menu”, you can find those pages still live on the Web, but you have to work for it! Their current homepage, which is where their visitors will likely go, includes no links to the other pages of the site. If a customer needs menu information, or if they are looking for something like a location’s address or phone number, they will have to go out of their way to dig that information out. That is asking a lot of a person and few customers will go to those lengths.

What they want versus what you want

Taco Bell’s current campaign is a perfect example of placing a company’s needs before their customers’ needs. The marketing message that now dominates Taco Bell’s media properties is what they want people to know about. There is nothing wrong with promoting a new service or product, but by removing easy access to the rest of the information their customers may want, they are ignoring their needs in place of their own. What if a customer comes to the site to find nutrition information, only to be greeted by a message to download this new app. Is that a good customer experience? Perhaps they do not have an iPhone or Android device. This message is lost on them and they are at a dead end. This is a lost opportunity. Saying that this information is “not on the Internet” and instead forcing them to download an app is like saying “we don’t care how you want to access this information, we want you to download an app and we won’t give you that information unless you do so.” That may sound harsh, but that is absolutely how this decision comes across. Yes, there is value in putting a marketing campaign front and center in big way like this. Taco Bell’s new app is certainly being talked about, but most of the chatter I am hearing is not about the app itself or how great or convenient it is, it is about the company’s decision to market it in this way, with the rest of their messaging and information absolutely non-existent. A better approach would have been to market this new app in a big way with a bold, prominent placement across all their media channels, but to also include easy links to the normal website and social media content. With that approach, they could still ensure that their message comes across loud and clear, which is what they want, but they would not be ignoring what their customers want because that information would still be easily accessible.

Ignoring the conversation

Another interesting (and not in a good way) aspect of Taco Bell’s “going dark” campaign is what they are doing on social media. Their Facebook page currently includes only 1 post with a message similar to their website about the new app. The Taco Bell logos and everything else have been removed. What this page does have are comments – 1,194 of them as of this writing. If you read through those comments, you will find people complaining about the removal of the website content, the lack of delivery services, and many random slams on Taco Bell in general. Bottom line, there is a lot of negativity on this page, but Taco Bell is nowhere to be found in those comments. Their “going dark” campaign also includes them removing themselves from the conversation. This is not how social media works. Social media is all about engagement and conversations. If you put something out there, especially something like a new service like this, you should be prepared to answer customers’ questions and have those conversations. Taco Bell has yet to do this. Instead, they have “gone dark” and are nowhere to be found.

A better approach

When you have an important message to convey to your audience, you want that message front and center. There may be the temptation to take the same route that Taco Bell did and remove all your other content in favor of that message. Yes, people that visit your site will see it because that is all that there is to see, but is that the end goal? No, you do not want customers to only see your message, you want them to see your message and take action. Preferably, you want them to take the action that this campaign is focused on, but if they cannot do that, you do not want them to hit a dead end. In the case of Taco Bell, someone without a mobile device that can download the app, or someone with no interest in downloading that app, has hit that aforementioned dead-end. There is nowhere else for them to go other than away from Taco Bell. That is a lost opportunity. For your own marketing campaigns, you want to ensure that if you put a message front and center, you also make other paths available for people who that message may be lost on. Bottom line, you do not focus on one message or campaign at the expense of everything else you have to say and offer – and you never take yourself out of the conversation! When customers are talking about your company and what you are doing, that is a golden opportunity to respond and start a conversation. If you instead decide to “go dark”, you miss that opportunity completely.

In closing

I expect that this campaign is a temporary one for Taco Bell. Soon enough, their website and social media will be back to normal, but in the meantime, all I see in this marketing push are missed opportunities and ill-informed decisions. When planning your own campaigns and messages, speak to your marketing team or agency and always ask yourself whether your plans focus too heavily on what you want instead of what your customers need. The key to a successful campaign is finding a way to address both of these needs and tie together your company’s goals and those of your customers.

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