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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The Apartment That Pinterest Built: CB2 Redesigns Social Engagement

In May, 873 Broadway in New York City became the epicenter of a truly innovative social media campaign from home decor chain CB2, as an empty apartment was furnished from start to finish in five days, with designers transforming the blank canvases of five separate rooms into livable spaces – all based on the preferences of Pinterest users. So how did this campaign work, exactly? CB2 selected five popular designers, stylists and lifestyle bloggers, each of whom was assigned to one of the rooms. Each of these five pinned many potential pieces for their rooms, and the items that received the most likes from other Pinterest users ultimately found a place in the room’s final layout – resulting in a decorating style CB2 calls “modern together.” As if this concept wasn’t intriguing enough, CB2 added another element of engagement by posting cameras and video crews in the apartment, documenting the events as they unfolded in real-time so that users could watch the rooms take shape around their selections via time-lapse photos. The Apt CB2 campaign was CB2's first venture into big brand advertising, and they entered the arena with a vengeance. By leveraging their own fan base combined with the followings of five popular designers, they created a powerful foundation of motivated participants, whose efforts and engagement in the campaign were rewarded through a unique real-time connection between the online world and the real world. The campaign is, in fact, a veritable showcase of savvy modern marketing strategies, and it offers some great takeaways for other brands looking to follow suit. Let’s examine the anatomy of the Apt CB2 campaign and uncover the secrets to its success:

Customer driven decision-making

In the era when traditional advertising reigned supreme, push marketing was the norm. But in today’s marketplace, word-of-mouth recommendations, reviews and in-store interactions now carry far more weight with consumers. As a result, contemporary marketing gives greater focus to the "pull." CB2 showed a masterful grasp of pull marketing in the Apt CB2 promotion, which gave users a vehicle by which they could make choices and have their voices heard in a way that was both tangible and immediate.

Real-time engagement

The ability for brands to interact directly with their customers is one of the hallmarks of the digital marketing era. And according to research presented at SXSW 2012, when that interaction occurs in real time, brand marketing gets a huge boost. So what kind of boost are we talking about here? The research noted a whole laundry list of benefits, including:

• More positive perceptions of brands
• Greater willingness to try a new product
• Greater willingness to recommend a product to friends and family
• Better performance of related marketing campaigns

The social celebrity factor

CB2 didn’t rely solely on the appeal of real-time interaction alone to drive the success of its campaign. After all, if a pouf lands in the living room of an apartment and nobody is watching, did it really land there at all? That’s why they cleverly added prominent design celebrities to the mix, guaranteeing that they’d get an immediate fusion of new eyes and new fingers eager to click their favorite selections. Just how much interest can a celebrity add to a marketing campaign? A lot, actually. Each of the five designers selected for the Apt CB2 campaign came to the promotion with a sizable fan base. Let’s take a look at the numbers based on their Pinterest following alone:

• Los Angeles design pro Ross Cassidy (dining room): 4.5 million
• San Francisco's Caitlin Flemming (office): 4 million
• New York interior designer Athena Calderone (bedroom): 5,200 (plus all the readers who follow Eye Swoon, her popular food and design website)
• Nashville brand manager Daniel Bear Hunley (living room): 1.6 million
• Los Angeles lifestyle and design blogger Justina Blakeney (rooftop): 1.2 million

Of course, not all of their followers would participate in Apt CB2, but even a small percentage of numbers like these is nothing to sneeze at.

There's a contest, too

This super-sized promotion isn't done yet, though. For those Pinterest fans who weren’t moved by the menu of celebrities or the fascination of real-time "vote and view" apartment decorating, Apt CB2 offered yet another draw – the chance to win a room furnished by CB2 valued at $5,000.

News coverage and PR

Needless to say, Apt CB2 has garnered a lot of interest in the news media. And that interest is accompanied by some extremely high-quality free publicity. We at Fame Foundry aren’t the only ones who’ve taken notice of this innovative campaign. News about Apt CB2 was picked up almost immediately by major outlets including Fast Company, the New York Times and International Business Times as well as a raft of lifestyle and home decor websites and blogs. CB2 has also supplemented their free exposure by placing paid advertising on relevant websites, notably Apartment Therapy.

Social integration

The real genius of the campaign, however, is the synergy that it creates between all of these different features. The whole, in this case, really is much greater than the sum of its parts. Without question, social media is a valuable way for brands to reach their intended audience, providing great opportunities for brand building, messaging and conversation marketing. Even the best luxury brands know the power of social media. Take, for example, the innovative ways in which Burberry has incorporated social media into their marketing efforts. And while the Apt CB2 campaign is a bit reminiscent of Burberry's best efforts, it takes social integration several steps further. The result is a brilliant combination of social media, marketing strategy, public relations and targeted advertising – all rolled up into one highly engaging package.

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Survival of the Fittest: Conquering Responsive Website Design

With the proliferation of smartphones and tablets today, serving the needs of mobile browsers is no longer acondary consideration when it comes to designing (or redesigning) your website. From the ground up, it’s critically important to ensure that you are building a platform that will look beautiful and perform elegantly no matter where or how a user might access it. While you can create a dedicated mobile site or app, responsive design offers a smarter, more flexible, more agile solution that will ultimately deliver a greater long-term return for your investment.

Defining responsive design

Responsive design is the concept of building a website so that the layout of the site adapts and changes according to the resolution of the user’s browser. Using this approach, you can build a single site that will look just as good on a monitor that’s 2048 pixels by 1080 pixels as it will on an iPhone that’s 320 pixels by 480 pixels and all browser sizes in between without the need to build a separate dedicated mobile version of your website. Ethan Marcotte, the forerunner in the field, identifies the three key ingredients of responsive design as follows:

• Fluid grids
• Flexible images
• Media queries

Wait, fluid what? Media what? Let’s take a step back and define these terms in plain English. Every website is developed based on a grid that governs the scale of and relative position of objects (such as navigation menus, images and text) to one another. A fluid grid has the ability to shift and reposition select elements of the site based on certain conditions in order to preserve the properly defined scale for layout, size and spacing. “Flexible images” mean that the images contained within the site’s design should scale in size and shift in position according to the dimensions of the device being used to access the site (larger images on large displays, smaller ones on phone screens, etc.) And media queries? Media queries are used to intelligently detect the size of the browser window and the device being used to access the site and bring back the correct layout for optimal viewing and navigation according to those parameters. But these technical elements only govern the mechanics of the site. What ultimately determines the success of a website that’s built on a responsive design framework is its ability to provide a user interface that’s both visually pleasing and easy to use. After all, responsive design isn't only about resizing stuff to fit within different screen resolutions; it’s about presenting users with a the best possible experience, both in terms of layout and content. With that in mind, here are five key UX/UI factors that must be taken into consideration in order to maintain the integrity of the user interface and protect the quality of the user experience when employing a responsive design framework.

Catering to the needs of visitors

Users accessing your website from different devices have different needs. For example, if someone visits your website from their iPad during their daily commute on the train, they’re only going to dig so deep. For example, while they’ll likely be interested in perusing your latest blog post, they’re not going to be looking for the bios of your board of directors or your privacy policy. You must think about each type of user that will be visiting your site and let their needs and interests dictate the way your site molds and conforms itself to the size of their browser or device.

Intuitiveness

Being innovative is a good thing; being too innovative is not. If, for instance, you decide to change the color of hyperlinks to an indistinguishable shade of black or invent new navigational conventions that perplex your visitors, you’ll send them running in the opposite direction,and the design will be a total failure. The purpose of responsive web design is to empower users to visit your website and browse freely and according to the conventions that are most natural and familiar to them, irrespective of the device they are using.

Touchability

Who can refute the fact that touchscreens are growing more popular with every passing day? Almost all major smartphones and tablets use touchscreen interfaces, and even certain laptops and desktops are being offered with touch functionality. Touchscreens needs to be treated differently. For example, in the world of the touchscreen, there is no such thing as a hover state. If, for example, you have “previous” and “next” buttons that would normally appear only when a mouse rolls over them, those elements would be unavailable to your touchscreen users. For finger-friendly navigation, all elements must be big, bold and obvious. Buttons that require users to mouse over them to get a sense of action must be replaced with style enhancements that draw attention to their “pressability.” It’s also a good idea when catering to touchscreen users to keep the navigation or sub-navigation menu to the right. Why? Because the majority of your users will be right-handed, so the menus will be more conveniently accessible if they’re on the right rather than on the top or left.

Images

While layouts, structural elements and text can be made flexible, images require special attention. Improper alignment of images can ruin even the greatest of designs. Images need to be automatically adjusted to ensure that the website looks awesome in either portrait or landscape mode (remember: most portable devices nowadays can switch instantaneously between views, depending on the user's whims and wishes). Also, when resizing images on the basis of the screen resolution of the device, care needs to be taken so that the images do not lose their quality. If a given image contains the logo or the name of the website, it needs to be given prominence, whereas footer images can take a back seat. The best is to load the images in their original size, unless the viewing area becomes too narrow for the purpose. When that happens, it means the user is on a mobile device, and the image needs to be narrowed in accordance with the screen width. This is the very essence of how smart responsive web design works.

What to show (and what to hide)

With responsive design, we have the ability to rearrange web elements and make every thing fit on the screen, no matter how small it is. However, making every single aspect of a normal web page available to mobile users is not only unnecessary but it can render your site practically unusable on smaller screens. For mobile devices, navigation, content and functionality must be pared down significantly to focus on those features that are most useful to users while on the go. For example, while mobile users frequently comparison shop on their phones, they might not be as likely to actually go through the entire purchase process on their handheld device. Therefore, while product information and pricing is key, e-commerce options should be extremely streamlined.

A Showcase of Responsive Design

To demonstrate just how effective responsive can be, let’s take a look at a few examples of companies that have embraced this new approach in building their sites. In each example, the full version of the site is show first, followed by a version as it appears on a mobile device.

Hicksdesign

Art Equals Work

City Crawlers: Berlin

8Faces

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