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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Small Changes, Big Impact: 5 Things You Can (and Should!) Do Today to Boost Your Website’s Performance

Every spring it happens like clockwork: the temperatures get warmer, the days get longer and everything in nature becomes more vibrant and colorful. Along with these changes in the great outdoors comes the irresistible urge to clean house and embrace a fresh start. Why not keep that motivational momentum going and apply it to your business – and, more specifically, to your website – as well? After all, there’s no time like the present to sweep away the old and outdated and bring in fresh new ideas and technologies. But you don’t necessarily need to dive head-first into a full redesign and all of the time and expense that entails to reap measurable results. Instead, here are five small steps you can – and should! – take today to ensure that your site is up-to-date, relevant and doing all it can to bring you new customers and grow the community around your brand:

1. Reposition your contact form.

For most website owners – especially those in service-based businesses such as law, accounting, consulting, real estate, etc. – the key “win” for their site is when it motivates a visitor to request more information or schedule a meeting. Contact forms are a ubiquitous website staple intended to provide a convenient – and highly measurable – avenue to initiate communication between an interested prospect and a company. However, perhaps because they are so commonplace, all too often these forms are given little strategic thought, resulting in a cookie-cutter name/email address/phone number format that yields more bogus spam submissions than legitimate new business opportunities. However, there is one simple change you can make that has been shown to get better results: reposition your standard “Contact us” form as an “Ask our experts” feature. By doing so, you shift the focus of the form to providing your visitors with an opportunity to submit a question that is specific to their needs and concerns. Rather than feeling like they are opening themselves up to an endless barrage of solicitation calls and emails, your visitors will sense that they are initiating a dialogue with an expert who will help them solve their particular problem. Make sure to respond to all inquiries within 24 hours, provide helpful advice that is free of charge and tailored to your prospect’s situation, and leave the door open to continue the conversation in a future meeting or phone call. By doing so, you will establish an important foundation of trust and confidence with your potential new client that will make them more inclined to engage your professional services. I have personally seen the submission rates on these types of forms increase dramatically. On one site where this small change was implemented, form submissions jumped from one or two per week to one or two per day – all legitimate business opportunities that were sparked simply by repositioning the focus of the form.

2. Productize your offering.

Another challenge that professional services organizations face in creating a website that works as an effective customer conversion engine is that they do not sell a specific product but rather a suite of services that can be customized to each client’s specific needs. This makes it terribly hard to market to visitors who come to their site and simply want to know “What exactly does this company sell, and how much does it cost?”. Because there are so many variables to the company’s offerings, there is not a quick and easy answer to these questions. If this challenge sounds familiar to you, one approach you can try is to “productize” what you have to offer. Create a bundle of services with a fixed price, and market that package on your site in a simple, straightforward manner that makes your offering easy to understand and helps visitors feel like doing business with your company is as simple as buying a product off the shelf at a store. This is exactly what my company did with some of the technology consulting services that we offer. Instead of only listing the array of services we provide, we also created a product that representing a very specific offering. This made it so much easier to answer the “What do you sell?” question, and it gave us something tangible to promote in our marketing campaigns. In reality, this approach in no way limited the range of services we are able to offer our clients; rather, it merely served as a vehicle to open doors to new opportunities and made it easier to start conversations with new customers for whom we could ultimately provide a custom-tailored solution. Examine the services that you offer, and work with your marketing team to create an appealing package that you can market – understanding all the while that this “product” is really just a means for you to connect with customers and begin the sales process with something tangible that they can easily understand.

3. Lose your home page carousel.

One simple change that I have seen many websites make in the past year or so is to remove animated image carousels from their home pages. These carousels have long been a popular fixture of website design, but the reality is that they can sometimes do more harm than good. Home page carousels typically feature giant, screen-spanning images which carry with them heavy download requirements both for the images and for the scripts that power the animation sequences, thereby creating a potential stumbling block in performance for users on mobile devices or with slower connections. Additionally, studies have shown that click-through rates on animated carousels are extremely low, and they drop significantly from the first slide to the subsequent ones. This is why many companies are replacing rotating carousels with a singular static message instead. This one change can greatly reduce a page’s download size (when my company did this on our home page, its file size decreased by 75 percent) while having little to no effect on actual user engagement or click-through. In fact, because the page now loads more quickly, many sites actually see an uptick in user engagement because fewer people are abandoning a site due to poor performance. Do you have a carousel on your website? If so, do you know whether or not it is working well for you? Your marketing team may be able to do some A/B testing between a version of your site with this animation feature and one without it to see which performs better. Since carousels do work well for some sites (like news organizations or sites with lots of frequently updated content), having this data can help you determine whether or not it’s time to ditch the carousel.

4. Update your image(s).

Stock photography is something of a necessary evil of website design, as more often than not, companies don’t have the budget to execute a full-fledged custom professional photo shoot. However, not all stock images are created equal. Stock photos that are overused or that look so obviously staged that they scream of their “stockiness” can cheapen a site’s design and leave visitors with a negative overall impression of the site. Replacing those images can make a big difference in a site’s visual appeal. If your site’s imagery is stale, you can make some simple image swaps to freshen it up. If you are going to change out old stock images for new stock images, make sure to seek out photos that feel fresh and that are not terribly overused (most stock photo sites will tell you how many times an image has been downloaded). An even better option is to try to add some unique imagery to your site. This could be photographs that you hire a professional to take or – in keeping with one of this year’s hottest trends – custom illustrations that you commission from an artist. If your budget is tight, incorporating even just one or two such one-of-a-kind images in key spots on your site can really boost its visual impact. For instance, if you lose that aforementioned carousel on the home page and replace it with one truly compelling static image and message, it can make a really powerful first impression on your visitors.

5. Publish less.

Most experts agree that publishing original, value-add content on your site on a regular basis is key to optimizing its success – both from a sales and marketing standpoint and as an advantage in the never-ending battle of SEO. While I agree with this approach in principal, for many companies, the drive to publish regularly has resulted in putting out mediocre content simply to meet an inflexible standard of frequency. This is often an entirely counterproductive effort, as content that lacks in quality, original thought or value for the reader reflects poorly on the organization and its perceived level of expertise. Publishing original content to your site on a regular basis is still a best practice, but that content must offer value for it to succeed. Let’s say a visitor comes to your site and is impressed to find that you publish new articles weekly or monthly; however, once they click through the headline to see what they can glean from your writing, if what they find is mediocre at best, what motivation do they have to return to your site again in the future, let alone entrust you with their hard-earned dollars? If, on the other hand, you publish new content less frequently, but everything you produce is of the highest quality, then that same visitor will know that the time they spend on your site will always be worth their while, and they will look forward to the next time you post something new. Re-examine your current content marketing strategy, and ask yourself whether you are focused on quality or frequency. If it’s the latter, commit instead to writing less but to improving the quality of what you offer on your site. While this change may not have an immediate impact, it will absolutely yield long-term results that your visitors will appreciate and respond positively to.

In closing

Eventually, your website will need a redesign, but in the meantime you can make small, strategic, surgical changes that will pay immediate dividends in your site’s success. This approach of implementing gradual but regular modifications will also benefit you when it does come time for that full redesign. By making intelligent improvements over time, you will ultimately be closer to your end goal, leaving less to accomplish with the redesign and thereby paving the way for a smoother and less costly project.

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The New Ice Age: Lessons Learned from the ALS Challenge for Achieving Viral Marketing Success

If you have been online in the past few weeks, you have undoubtedly come across the viral phenomenon that is the “Ice Bucket Challenge”. Videos of people dumping buckets of ice-cold water on themselves, recording the video and posting to social media, and then nominating others to do the same, has taken the Internet by storm. Anyone who refuses to accept the challenge is asked to make a donation to the ALS charity of their choice, and the viral sensation as a whole has also raised significant awareness for ALS, which is often called Lou Gehrig’s disease. Fire up your social media site of choice and you are bound to see video after video of your friends and contacts dousing themselves in ice-cold H20. Even if you are not a big social media user, you have likely seen information on this freezing cold phenomenon as news outlets have gleefully reported on, and posted videos of, celebrities from the worlds of sports, entertainment, business, and more participating in the fun. A recent video even had actor Vin Diesel nominate Russian president Vladimir Putin to take the challenge! It seems as if everyone has happily dumped a bucket of water on their head for charity and good fun. The success of this campaign, which has raised millions of dollars, as well as that aforementioned awareness, for the ALS Association, is an interesting case study in the concept of “viral marketing”. In this article, we will take a look at what this Ice Bucket Challenge can teach us about this type of potentially powerful marketing.

You never know what will go viral.

The concept of the Ice Bucket Challenge is pretty simple. You film yourself doing something silly (and somewhat uncomfortable) and you challenge others you know to do the same. Pretty straightforward – so what makes this such a craze? What does this campaign have that so many other campaigns that were hoping to “go viral” were missing? The truth may actually just be dumb luck, because the reality is that you never know what will find an audience and go viral. Many organizations that try to initiate a viral campaign try many different ideas hoping that they will strike gold with one. They do this because they know that even one viral sensation can be all they need to meet their goals, whether that goal is to raise awareness for a cause like the ALA Association is doing, or to just draw massive attention to a business or a product, similar to what Burger King did many years ago (and what they are trying to do again) with their Subservient Chicken campaign. Viral marketing is really a roll of the dice, but there are some things that can tip the odds in your favor. We can see some of these things at play here in the Ice Bucket Challenge, including the presence of celebrities.

Celebrities sell.

The Ice Bucket challenge has now been taken by celebrities including Bill Gates, Ben Affleck, Justin Timberlake, Dwayne “The Rock” Johnson, Jimmy Fallon, Oprah Winfrey, and Charlie Sheen (who mixed it up by dumping cold hard cash on his head instead of cold water – although he promised to donate all that cash to the ALS Association). The participation of celebrities, who then in turn nominate other celebrities, is absolutely one of the reasons why this Ice Bucket Challenge has blown up the way that it has. Their participation is what has driven news outlets to cover the videos, which prompts others to share those videos on social media. This in turn introduces the campaign to more people, who then do the challenge as well and nominate others. This is the very definition of “going viral”, and these celebs are helping to fuel that success! Compare the Ice Bucket Challenge to another “video for a good cause” from some years back – the Pink Glove Dance. Created by Providence St. Vincent Medical Center in Portland, Oregon, this video of medical staff dancing to raise awareness for breast cancer has been watched almost 14 million times on YouTube. That is amazing by any standard. If you asked any company if they would take 14 million views for one of their online videos and the answer, I am sure, would be a resounding “YES!”. Still, as popular as that video was, it pales in comparison to the reach that this Ice Bucket Challenge has found, largely because of that aforementioned celebrity involvement. So if celebrities can make your viral campaign, how do you go about getting them involved? Well, that’s the trick, you really can’t get them involved, it just has to happen! This is an important factor to realize, because if you are looking at the success of a viral campaign like the Ice Bucket Challenge and thinking, “How can we do something similar”, you need to realize that there is a “lightning in a bottle” aspect to what is happening here. You could do something identical and not find that audience that pushes it to this level. Yes, celebrities can make your viral campaign, but counting on them to participate is not a sound marketing strategy!

There is value in the ridiculous

One of the other factors that has contributed to the success of this campaign is the sheer ridiculousness of the act of dumping cold water on yourself. The Internet loves spectacle and the Ice Bucket Challenge delivers on that count! A successful viral campaign is often over the top and ridiculous. If you are considering trying you hand at a viral campaign, think outside the box and be willing to get a little crazy. When it comes to viral marketing, conservative rarely succeeds.

There is value in helping others.

Another factor helping fuel the success of the Ice Bucket challenge is that all of this silliness is for a great cause. While a viral campaign to promote a company or product may take off, one that is designed to help others has something that those others do not – good will. Doing good for others makes people feel good too. That is a powerful force that you can take advantage of if your viral campaign is for a good cause. With the Ice Bucket Challenge, many of the people who took the challenge also decided to donate to the cause. This combination of silliness and charity is something that has helped make this campaign what is has become.

Make it easy to participate.

Many viral campaigns require other people to get involved. The Ice Bucket Challenge has succeeded because so many people, celebs and normal folk alike, have recorded a video and posted it for the world to see. The key to this audience participation is making it easy to do! Take the example of the Pink Glove Dance again. After that initial video went viral, many other organizations recorded their own Pink Glove Dance videos, but none of them ever came close to matching the success of the original. One of the reasons is because there was not the massive flood of videos that we see happening with the Ice Bucket Challenge. This is absolutely because to the level of effort required to produce one of those dance videos, which includes a cast of dancers, music, editing, etc. Compare that to the Ice Bucket video, which only requires a cell phone camera and a bucket of ice water! By making it easy to join in the fun, the Ice Bucket Challenge has become the viral sensation that we see online now. If the success of your campaign requires others to get involved, make sure that the barrier to them doing so is as small as possible!

In summary

Viral marketing campaigns can raise incredible awareness for your organization, but there is never a guarantee that a campaign will achieve any kind of success, much less the massive reach that we are seeing with the Ice Bucket Challenge. Being willing to take a chance on a potentially viral idea is great and I encourage you to explore those ideas, but you also need to make sure that your entire online strategy does not center on a viral campaign. A well-rounded strategy that may include a viral campaign as one of the pieces, but which also embraces other initiatives as well (search engine ads, email marketing, content marketing/blogging, etc.) is how you will want to proceed. That way, if the viral campaign explodes, then you have the exposure you wanted, but if it fizzles, at least you have other initiatives working towards your online success.

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Prying the torch from the dead hands of old marketing

Today, there is freedom in marketing. No longer is the loudspeaker of the media controlled by a select few. As a result, so much more can be gained than ever before, all with fewer resources and less risk. The playing field has been officially leveled—and not a minute too soon.

Old Marketing is dead

Why? Our culture and means of information exchange have changed so much, so quickly from traditional conventions that have been used for so long. Today’s business must completely reshape and retool its approach to effectively market itself. The Old Marketing company—ingrained in these old systems for so long—simply cannot keep up with a culture that has transformed itselfBefore these drastic changes, our lifestyles and culture were based on a handful of media. Television, print, and radio were the anchors of mass information exchange and business promotion. If you owned a business or were charged with growing a company through marketing, then you were shackled to dealing with media and promotional entities such as television commercials, newspapers and the Yellow Pages. These industries are dying because they are being replaced by new systems. Remember the days of paying $2,500 a month for a lousy local, black and yellow ad in the Yellow Pages? Or tens of thousands of dollars for a local television ad, locked-in with a long-term contract and little measurables? That age is gone. The Old Marketing company—ingrained in these old systems for so long—simply cannot keep up with a culture that has transformed itself with the advent of the Internet and modern systems of communication. As a result, old, slow and expensive marketing companies are dying right along with those old systems. The ones that haven’t died yet are in a panic. They are scrambling to restructure business models, personnel, objectives and the sales pitches in order to reassure their clients that they now can pull off the new marketing ways.

The dirty little secret

In fact, this “scrambling to catch up” is a hushed truth among all marketing agencies. Marketing itself is not going to admit its own flaws in its business—that would be certain death. Agencies instead claim that they’ve been there all along. Nothing could be further from the truth. Need proof? This is easily evidenced by the marketing industry’s own publications and associations. Articles are rampant on how marketing agencies need to change to stay alive. On any given day there are a multitude of seminars for marketing firms to attend with subjects like, “leveraging web technology,” “selling SEO to your clients,” and “understanding social media,” as if these issues were still on the horizon waiting to be realized.

Marketing sold its soul long ago

The Internet may have been the axe, but it actually didn’t take the dynamic of the rule-changing Internet to bring the marketing industry to its knees. They sold out long ago. Marketing agencies have been on the gravy train for a very long time. This is what happens when media and information systems are few, with few in control. A few deals made here and there with the few controlling mass-media, local media, even the Yellow Pages—all with enough middle men in place to get their cut—eventually makes an industry so fat that it won’t forgo those systems, even when the walls are torn down. Bottom line: the money’s just too easy when you’ve got that kind of control. Marketing agencies employed tactics to pull clients in and lock them in. They knew the middle-men in all of the processes of print, television and radio. They knew who to kickback to. They even employ “media buyers”—a term that, as the years tick by, becomes more and more indicative of an era long gone. Can you believe a person—or even an entire department—employed in the position of “media buyer”? What were originally “creative agencies” became agencies only good at selling themselves to their clientsEven then, marketing's problems were deeper. What were originally “creative agencies” who served to shape, grow and represent the spirit of their clients brand, evolved into companies who simply became greedy—good at only selling themselves to their clients, but no longer about the work of their clients. Don’t believe me? Let’s talk about Leo Burnett. Leo Burnett Inc. is one of the most renowned agencies in the world. They earned their reputation serving one key philosophy: that nothing could replace the marketing firm’s charge of “being the spirit of the client’s brand.” Coupled with a firm understanding of what it took for each client to get and keep their customers, Leo Burnett was also known for the quality of their creative work and eventually earned the responsibility of brands like Kellogg's and McDonalds. Founder Leo Burnett recognized that the industry was in danger of selling its soul out long ago. One of his famous speeches, “When to Take My Name Off the Door”, delivered on December 1, 1967, was based on that very fear: He knew where the industry was going. And sure enough, it’s there—probably worse than he thought it could be.

What's the right way?

Traditional marketing companies identify that their own competition is no longer their peers in the same market, but the budding, New Marketing company that is web-based from the ground up. Why? They’re faster, smarter and more experienced in today’s systems. They also don’t have the burdens of expenses and bloat that Old Marketing firms have. They can turn on a dime. They move quickly. The New Marketing company that is web-based from the ground up is faster, smarter and more experienced in today’s systems.Today, successful marketing begins with the knowledge and experience to create exposure, build awareness, harness interest, and position business and all supporting systems within today’s web universe. Your marketing firm needs to understand why things work they way they do, and how people and prospects come to know and trust a brand in today’s world. Also, today’s New Marketing company is one that hasn’t forsaken the principles that are timeless, but is one that takes advantage of all that’s afforded in today’s business world to shave off unnecessary expenses.

• OUT: are deals with a select few in a position of control. IN: is the reality of true, choice-based media, entertainment and communications via the Internet and the technologies that are used by choice because they offer more and make better sense.
• OUT: are expensive payments to old, big, slow agencies—all carpet bombing to grow your business. IN: are fresh and nimble development firms who know how to surgically target the necessary areas to build a brand, position it and construct a network around today’s communication systems to promote and grow business.
• OUT: are paying for enormous overhead expenses in big buildings, expensive furniture, and lavish offices. IN: are virtual and hybrid marketing firms that work fast and don’t pass on the bloat of unnecessary expenses to their clients.
• OUT: are working through layers of costly production managers, account executives, supervisors and managers before you get to the real people that do the work. IN: is the successful marketing company that establishes access to key architects and creative producers who are integral in the ideas, concepts and the details essential for success.

So, as traditional marketing firms continue to pass on the overhead of their expensive offices, furniture, lifestyles and worst of all, the cost associated in how to figure out this "Internet thing," the New Marketing company has an inherent understanding of what works and what doesn’t in today’s culture. They are still marketers, founded in the purpose-driven goals of growing a business—however, the New Marketing firm, knows how today’s business is grown and built.

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