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.

Website Design for a Multi-Device World

The array of devices through which people interact with online content is larger and more diverse today than ever. To underscore the point, try this little exercise – take a look around your house and find every device you own that can access the Web. For me, the list looks like this:

• Desktop computer
• Laptop computer
• Netbook computer
• iPod touch (x2, each a different generation)
• iPad
• Kindle (x2, each a different version)
• Android phone (HTC EVO)
• Gaming system (wii)

Each of these devices has a different screen size, and the experience of accessing web content is different on each.

That’s why, if you want to ensure that your website will provide an experience that truly engages your audience, it must be designed specifically for this multi-device world in which we all live today.

The multi-device user

The multi-device world is populated by multi-device users. While a staggering variety of devices are, indeed, being used to access web content today, it’s also important to remember that the same user is often using multiple different devices to access your website – and they expect that site to work well regardless of which device they happen to be using at the time.

To illustrate this point, let’s consider the scenario of an average everyday activity that occurs on the Web: mom planning the family vacation.

As she starts her day, she does a quick search on her iPhone and starts to peruse a few sites that strike her interest as she enjoys her morning coffee. Later she takes advantage of her lunch break to continue her research. She visits many of the same websites as she did before, this time reading more and delving deeper each one now that she’s seated comfortably in her chair behind her desk and has more screen real estate to work with. That evening she shares her findings with the family, flipping between sites on her iPad as they unwind on the couch. In each instance, she visits many of the same sites, and she expects them to perform just as well no matter which device she has in front of her.

More than just mobile phones

You have likely been introduced to the concept of “mobile websites” and have been told that your company needs one, but as the scenario above illustrates, the multi-device landscape encompasses much more than just large desktop monitors and small handheld phones. There are many devices and screen sizes in between, and your website must be equipped to work well on all of them. That’s why a separate “mobile-only” site is not the best way to serve the needs of the multi-device user.

A mobile-only solution relies on technology that detects when your website is being accessed via mobile phone and redirects the user to a completely separate version of your site – one designed specifically for the typical screen size of a smartphone. These mobile websites often feature less content and fewer features in order to minimize both navigational complexity and load time.

The problem with the mobile-only approach is that it only addresses the needs of one specific type of device. Large desktop computers get the “normal” browsing experience while mobile phones get a smaller, more streamlined version.

But what about the multitude of devices that fall between these two extremes? How do we serve them effectively?

Going responsive

There are a number of deficiencies with a mobile-only approach, but the inability to serve today’s broad array of devices is the most detrimental.

If the mobile version of your website offers less content and fewer features than your desktop site, you run the risk that a user will be looking for content that you have decided to eliminate from your slimmed-down mobile site. This is a problem, because when a user comes to your site looking for something specific and they can’t find it, their natural response is to go looking for it somewhere else – which usually means your competitor’s site.

After all the effort your put into attracting users to your website, anything that drives them away – like a user experience that is not optimized for the device they are using – runs counterproductive to your goals. So how can you embrace this multi-device world and ensure that your website can succeed in it? It’s time to go responsive.

What is responsive web design?

Responsive web design is an approach that has gained much favor and momentum in the web industry in the past few years – in part because it offers a solution to many of the limitations that mobile-only websites face.

A responsive website is one that intelligently rearranges its layout based on the size of the user’s screen. For instance, let’s say your site normally presents its content in three columns. The smaller a screen gets in size, the more problematic this layout can become, as the columns become so narrow that their content is unreadable and their buttons are un-pressable.

With responsive design, when a visitor is using a tablet in portrait mode or a laptop with a very small screen, those three columns reflow into a two-column layout that is better suited to the dimensions of those screens. For handheld phones, the design shifts to a single column of content with text and links that are large enough to be easily read and touched even on a very small screen. In this way, you have one website that “responds” to the multi-device user, adjusting its layout based on the particular device they are using – hence the name responsive design.

The benefits of responsive design

Efficient maintenance

It’s hard enough to keep one website updated with timely, relevant content; updating content across multiple websites is even more challenging.

When you go the mobile-only route, you end up with multiple websites to maintain. With a responsive approach, however, you have only a single website to manage. This makes it easier to keep your content consistent, because anytime you make a change to your website, that change is seen by all visitors regardless of the device they are using.

Zero gaps

As we saw earlier, supporting the multi-device user means being able to accommodate more than just large desktop screens and small handheld devices.

A responsive web design approach does indeed address these two extremes, but it also fills all the gaps in between, adapting its layout to perform seamlessly on the widest range of screen sizes and devices possible. This is especially helpful for those users that jump from device to device, as described earlier, because the site will adjust to their needs and present them with a consistently good experience regardless of their choice of device.

Adaptability

Because a responsive website design will reflow based on the screen being used to access it, your website will be equipped to support not only those devices that are popular today, but also those that we don’t even know about yet.

As new devices are released – some of which will undoubtedly also introduce new screen sizes or resolutions to the market – you can rest assured that your responsive site will do its best to present an optimal experience by “responding” to whatever type of screen it might be presented with.

Go big

While much attention is paid to how your website will handle smaller screens such as those on smartphones, there is another end of the spectrum to consider: large devices.

A responsive website can not only reflow its layout to present an optimal experience for small screens, but it can also do the same for very large screens. Large screens are often neglected in website design because even sites that are engineered for desktop monitors are not built to suit many of today’s widescreen displays. However, a responsive approach can allow your site to stretch its legs a bit in order to better fit bigger screens, making use of the additional space to better communicate your organization’s message.

Cost effectiveness

Since responsive design means you need only a single website, deploying this approach can often be much more cost effective than developing separate websites for different devices. This cost effectiveness is compounded further over time as you save the added expense of having to update, maintain and host separate sites for desktops, mobile phones, tablets, etc.

The challenges of responsive design

While there are a number of advantages to responsive design, there are a few challenges as well.

First, responsive design is not a feature that you can simply tack on to your existing website. To be done right, a responsive approach requires you to redesign and redevelop your site from the ground up so that responsive logic can be built into every aspect.

Another challenge of responsive design is that, if not done properly, it can result in loss of performance for users on devices where bandwidth is a concern. Often the small-screen version of a responsive design does away with some of the elements that exist solely for aesthetic purposes (large background images, for example). When such elements are “turned off” for smaller devices, if not configured properly, they might still be sent to the device anyway, meaning those devices are required to download excessive and completely unnecessary data that negatively impacts performance. To avoid this pitfall, make sure you’re working with a team that’s experienced in responsive design and has the technical expertise necessary to ensure that your site tailors both its layout and performance to deliver an optimal experience for any device.

Embracing the multi-device world

Traffic to websites from devices other than desktop computers has risen dramatically in the past few years, and industry analysts predict that number will continue to soar in the coming years. Looking at the hundreds of websites that I help maintain and manage, I am seeing an average of about 30 to 35 percent of all traffic coming from mobile devices of one kind or another and even a few sites where mobile traffic is nearing 50 percent.

As we head toward a future where more than half of our website traffic will come from visitors not using a traditional desktop computer, now is the time to ensure that your website is armed to compete effectively in a multi-device world.

The Unsexy Side of Marketing

These days, everyone wants to build an app. Everyone is publishing their own e-book. Everyone is pinning their hearts out on Pinterest. They all want to be first on the latest, greatest marketing bandwagon with the hottest buzz.

And while these are all valid and effective tactics, that’s no reason to abandon the proven standbys. Sometimes the less glamorous road is the most efficient and effective pathway to reach and connect with your particular target audience.

Let’s take a look at a few of these tried-and-true methods and how you can put them to work to help you reach your business growth goals:

Blogging

A company blog is an excellent way to engage your customers on a personal level and to provide some very relevant information to your target audience. Your target audience will be much more likely to find you if you are writing about topics that interest them. Just be sure to follow these pointers:

• Blog about topics that interest your target audience. You could provide how-to articles, inspirational round-ups, updates of your company, a contest or event you are hosting, etc.
• Blog with consistency. Each post can and should be varied, but they should always reflect the values of the company.
• The blog should be personal and authentic. If it achieves both of these, then the general public and (most importantly) customers will trust your company.
• Always link within the content of each post to one other post on your site. But only do this if it fits within the context of the article. Remember, you always have the "Related Articles" section at the end in which you can point readers to more. A link within your content, however, weighs a bit heavier as far as SEO is concerned.
• Do not forget an RSS feed and newsletter sign-up form. Make these easy to find and any forms short with as little information required as possible.

Another way to use blogging is to write for other blogs that are related to your company but that are not competitors. For instance, a landscaping business could submit guest posts to "green" blogs, home and garden blogs, other landscaping blogs that are not affiliated with another landscaping company, and any other blog that has readers within your target audience description. You will just want to make sure that blogs allow you to place a keyword phrase embedded with your link either in the content of the article or in the "About the Author" section. Not only does guest blogging build up your company as an expert in your field, but it also increases your page rank on search engines.

Facebook and Twitter

Facebook and Twitter aren't the new kids on the block they used to be, but fact is, most of your customers probably still use them day in and day out.

Keep posting on these networks regularly, but make sure that updates are written on an individual basis. Avoiding mass updates will give the perception that your company is relatable and values individuals.

Your updates can be your latest blog post, a countdown to a company event, discounts or coupons, a drawing or contest for a drawing. Do not update about how you are feeling today, rants on the latest political news, your opinion of competitors, or anything else that could annoy or distract your customers from their relationship with your company. Before posting an update, ask yourself if this is something that you as a customer would want to see from a company you love.

Online directories

Add yourself to as many applicable online directories as possible. Online directories increase your popularity on search engines. This means that it is more likely for you to be discovered through general search entries.

Google Maps is not generally considered a directory, but it may be the most important place to get your company listed. If you have a “headquarters,” post its location on Google Maps. Mark it as headquarters. Then, if there are satellite sites, include those as well.

Direct mail marketing

Direct mail does not necessarily mean via the postal service. Direct mail marketing can also mean email. These emails should be as personal as possible, so consider using customers' names in the subject and throughout the content of the email.

For postal mailers, include a flyer or use postcards. Both print mail and emails can contain a mixture of new developments in the company, things to be looking forward to, promotions and coupons, and any other sort of relational news. Try to avoid including too many statistical reports or numbers. These turn people off, and they will promptly throw away your letter or delete your email.

Keep direct mailers short and simple. Here are a few points to consider when planning for a direct mail marketing campaign:

• Postcards are still incredibly effective so long as they’re clean, unique, and have memorable graphics, along with the other important pieces of information below.
• Include just a snatch of information, enough to make them curious.
• Tell them what you want them to do with a strong, actionable call to action (i.e. buttons that say Purchase, phrases such as "Visit our website or scan our QR code to find out more").
• Provide irresistible incentives, such as limited time offers for free items with a purchase, a discount, or a chance to win a drawing for a prize.
• Include a URL, Twitter name, QR code, purchase button, or another source for them to find out more information.
• Be sure that you cater to your recipients. Consider age, race, ethnicity, gender, sex, and religious orientation.

Yellow Pages

Both online and off, the yellow pages is a valuable marketing avenue. If your business relies on both local and online customers, purchase ad space in both your local yellow pages as well as for the online yellow pages. This will not only improve your chances of being found when prospects complete an online search but also when they are looking through the local phone book for businesses who offer your services or products. Just be sure that your ad is large enough to be seen next to other marketing giants in your industry. Also, be sure to advertise yourself as unique. What niche services do you offer that your competitors do not? Are you family owned and operated? Do you give individualized attention to each customer? Creating a unique angle on your ad will make you stand out to your target audience.

Remember that while adapting to new ideas and technologies is essential, it doesn’t necessarily render the old methods invalid. Your job is to find the right combination to reach and resonate with your target market so that you can build your own community of fans and followers. No matter how they come into your circle, their loyalty and their advocacy of your brand is a result that will stand the test of time.