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 Anatomy of Viral Marketing

Three deadly myths of viral marketing

“Viral” is a term that’s thrown around very loosely by marketers these days, which has muddled the true meaning of the term.

Here are three common misconceptions about viral marketing that will doom any campaign to failure from the start:

Myth #1: Viral marketing = Share buttons

Making content sharable is not the same as making it viral. Viral marketing is not as simple as adding social sharing badges to your website. Likewise, extending your content to social networking sites such as Facebook, Twitter and LinkedIn will not make it viral.

These are merely vehicles that make it easier for people to pass your content along to others in their network. There’s no guarantee that whatever is being shared will have life beyond the initial posting.

Myth #2: Viral = Video

“Viral” and “video” are uttered in the same breath so often that it seems as thought they are inextricably linked.

In fact, this is not the case at all. There’s nothing about videos that makes them inherently more viral than any other kind of content.

Viral videos may get a lot of hype, but in reality, any kind of content can go viral – a photo, an article, a fundraising campaign, even an entire website.

The potential of something to go viral has nothing to do with the medium and everything to do with the content and its ability to motivate a continuous chain of sharing.

Myth #3: Viral = 1,000,000 million hits

Going viral is not the web-equivalent of a record going platinum. There’s no arbitrary number that certifies something as having gone viral.

The primary goal of viral marketing should not be to achieve a pre-determined number of hits, views or retweets but to create something with nearly unlimited potential to resonate with people – whether on an emotional, pragmatic or ideological level – so that its reach exceeds ordinary expectations.

What is viral?

By definition, viral content is self-perpetuating and requires little or no additional investment in the act of moving it through the Web from one person to another.

To answer that question, forget marketing jargon and go back to biology class. What sets a virus apart from other organisms is that it has the ability to replicate itself when it finds the right environment variables.

The same quintessential elements apply to viral marketing. By definition, viral content is self-perpetuating and requires little or no additional investment in the act of moving it through the Web from one person to another. It is the very opposite of traditional advertising’s pay-to-play model, which demands greater spending to buy greater exposure.

The concept of viral marketing is nothing new, but it has exploded in the past decade because the mechanisms for sharing have evolved and expanded as social media has permeated the mainstream.

The original form of viral content was the e-mail forward. When someone found something entertaining, informative or self-defining, they’d paste it into an e-mail message and send it to everyone in their address book, and many of those recipients would likewise forward it along. Social sharing is today’s version of the e-mail forward.

On the surface, viral marketing seems easy because the most successful campaigns make it look that way. However, once you dig deeper into its anatomy, it becomes clear that there are a limited number of pathways through which a piece of web content can go viral.

It’s not enough for something just to be good. There’s too much good stuff on the Web for all of it to catch fire. If you want to create something that will grow and extend itself after you send it out into the world, it must harness one of three fundamental elements of self-perpetuating content: entertainment, a giveaway or self-definition.

The three channels of viral marketing

1. Entertainment

This category is probably what naturally springs to mind when you hear the word “viral.” However, this is actually the most difficult route to take and demands a level creative resources that are typically prohibitive for the average business.

With the hype surrounding high-profile viral marketing campaigns like Old Spice’s “The Man Your Man Could Smell Like,” it’s easy to oversimplify the formula for what it takes to pull this off. Everyone thinks their own stuff is entertaining, but in the eye of the beholder, this is rarely the case.

When you attempt to play in this space, you’re going up against the big guns who have immense resources to throw at superstar writers, artists, editors and producers. In the face of those odds, it’s very risky to hope that you’ll strike the magic combination of unique content and flawless execution to win the jackpot.

For every phenomenal success like Old Spice, there are plenty of embarrassing, high-dollar flops. And, yes, sometimes a kid with a webcam becomes an Internet sensation. But that’s like capturing lightning in a bottle. It’s nothing you can create artificially, and it's very difficult to cultivate organically.

2. The giveaway

In stark contrast to viral entertainment, the viral giveaway is potentially attainable by any business large or small, local or national.

There are two ways to approach this type of campaign, depending on the nature of your business:

If you deal in goods, you can give away free or discounted products to customers (think Groupon).

If you deal in services, you can give away time or expertise (or both).

In either case, there is heavy competition in the giveaway space, so it’s critical to ensure that there is significant perceived value in your offering, typically in terms of time or money saved for your customer.

But the giveaway is not viral in and of itself. What creates the mechanism for self-perpetuation is framing it as a reward received in exchange for participation in spreading your message.

This is something not all companies are prepared to do. The idea of creating something only to give it away seems ludicrous by conventional thinking.

However, you can’t look at the giveaway as a loss. The reality is that this is today’s marketing. Instead of pouring tens of thousands of dollars into carpet-bombing advertising that no one believes in, you’re investing in word of mouth – the most powerful form of trustcasting.

The act of giving away your valuable goods or expertise creates trust among your customers, who pass your message along to their friends and followers, who then spread it through their networks. Suddenly hundreds of new potential customers suddenly know who you are and what you do, with the added benefit of being recommended by someone they know and trust, and that trust is conveyed to you by association.

3. Self-definition

A product, an idea or a concept that is new, innovative, unique or just plain awesome is sharable.

But when it makes a bold statement – not about your company but about life, work or culture – that strikes a chord in the beholder, that’s when it has the potential to go viral.

When someone shares this type of content, they’re defining themselves through the act of sharing, attaching themselves to the history, the character or the lifestyle that exists around your brand. They’re identifying themselves as belonging to your tribe.

When Nike’s “Write the Future” debuted in May 2010, it set a new record for the most views of a viral video ad in its first week.

Its popularity was undoubtedly due in part to the celebrity appeal of the soccer superstars featured, but it also touches on a deeper love for the sport, for the World Cup and even for the feeling of connection with others inspired by a shared passion for a certain team or player. When someone shares this video with their friends, they’re attaching their identity to these broader concepts.

But you don’t have to be Nike to pull this off. If I post a link to your blog to my profile on LinkedIn, I’m defining myself as a torchbearer for your ideas. If I take a take a quiz on your website and tweet my score, I’m boasting about my intelligence. And if I make a donation to your nonprofit organization and share it on Facebook, I’m defining myself as an altruistic person who supports If your cause. In each case, my act of sharing challenges other like-minded people within my network to do the same, because they want to attach themselves to these ideas and qualities, too.

Execution

Viral marketing can’t be a one-off effort. You also can’t come up with an idea and tack on elements of viral marketing as an afterthought.

Viral marketing must permeate every aspect of your business model.

If you're going to play in this space, it must permeate every aspect of your business model, from your R&D process to your pricing structure to your marketing strategy. Your website and your presence on social media networks must be built to be part of the viral mechanism. You must focus on creating a self-perpetuating engine of traffic, conversion and sales.

To be successful, you must know your tribe and know it well. You must be realistic about what its members like and what they will respond to.

You must also be willing to take risks. Behind every successful viral campaign is trial and error, careful tracking of metrics and fine-tuning of the approach.

Are the risks worthwhile? In a word, yes. Today's most powerful business growth platforms are built on trustcasting and permission marketing. There’s no more direct route to owning your market than having a tribe of brand evangelists who carry your message for you, and viral marketing transforms the spark of word of mouth into an inferno that propels you ahead of your competition.

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Playing the Stock Market: Seven Tips for Choosing the Right Images for Your Website

In a perfect world, every image on your website would be meticulously staged, lit and captured for you by the professional photographer of your choosing. But more often than not, budgetary realities don’t afford the luxury of being able to commission a photo shoot to fulfill every visual need on your site. Fortunately, advancements in digital photography have allowed amateur shutterbugs to create images that can stand shoulder to shoulder with those produced by the pros. As a result, the availability of excellent, high-quality stock photography has increased dramatically in recent years, and following the rule of supply and demand, the cost of these images has decreased. Whereas once major players like Getty dominated the market and commanded top dollar for every frame, today there is a proliferation of stock image sites that offer vast libraries of eye-catching images for very reasonable prices. The incredible selection of stock images available to us today is both a blessing and a curse. It’s amazing to have so many choices, but the sheer magnitude of the selection can prove daunting at times. How do you choose the right photo for your project? What should you be looking for in a stock photo, and conversely, what should you seek to avoid? Here are seven simple dos and donts that will help you master the stock market and find the best images to represent your brand and create an appealing visual tableau on your website.

1. Do: Know where to look.

In terms of cost, the stock photography market can be broken down into three basic classes: Free: Compfight and morgueFile are two examples of sites that feature images that fall under the Creative Commons license, which means you can use them for free. When dealing in these types of images, make sure you read the fine print because some are approved for commercial use while others are restricted to personal use only. While the price tag may seem appealing, many of the images you’ll find on these free sites are low-resolution and poorer quality than those you would find on other stock sites. The selection is also much more limited. After all, you do get what you pay for! Low cost: Veer, iStock and Bigstock are three excellent stock sites that offer a great selection of images in a variety of sizes. Photos on these sites range in cost from a few dollars to a few hundred dollars a piece, depending on the source and the size. Another very low cost (almost free) option is Dollar Photo Club. A one-year subscription to this site costs $99, but that membership includes 99 image downloads, with additional downloads costing just $1 each. The selection on Dollar Photo Club is on par with other stock photo sites, and all images are large, high-resolution files. Premium: The top echelon of stock photography sites – which includes industry stalwarts like Getty and Corbis – are much more restrictive in the selection of their contributing photographers. While they command much higher license fees for their images, the benefit to paying top dollar is that their photos are not as widely used as those found on lower-cost alternatives, so they have a more unique feel.

2. Do: Know your rights.

The process of purchasing a stock image is not necessarily as straightforward as buying your average widget. Because these images are the intellectual property of the photographer that created them, there are usage rights attached to them that govern the length of time, medium, size, format and location of use. Again, there are three categories you’ll need to understand: Royalty free: This is the most common license type you’ll find in today’s market, and it is also the most ideal, as it is the least restrictive. This license allows you to pay for an image once and use it without limits across multiple projects. Rights managed: This type of license allows you to use the image for a limited period of time for a specified medium or application. If you want to continue using the image after this time period expires or for a different purpose, you must pay more to renew the license. Extended: Some sites allow you to “extend” the license on an image in order to use it in ways not typically allowed under a rights-managed license structure. This is often done on a case-by-case basis and it usually applies to using an image on tangible goods (t-shirts, posters, etc.). Such a license is rarely, if ever, needed for the images you will be using on your website. Try to stick with royalty-free images as much as possible, as they are the easiest to manage for long-term use on the Web, and there’s no lack of excellent quality photos that come with this option.

3. Don’t: Be afraid to dig deep.

When searching for stock images, you’ll naturally start by querying a term or keyword that relates to the type of image you need. When reviewing the results of your search, however, don’t be too quick to select images that appear on the first few pages. These are undoubtedly the most popular images because many searchers that have come before you have already downloaded them. This means that the early results are also images you are most likely to see used (and perhaps overused) elsewhere. Don’t be afraid to jump ahead in the results pages to see what images you can uncover deeper in your search. Often, there are amazing photos that are far less popular, and using these hidden gems minimizes the risk that your selection will show up elsewhere – like your competitor’s website.

4. Don’t: Fall into the “handshake photo” trap.

We’ve all seen the “handshake photo” – the bland, uninspired image of two men in suits (or at least shirts and ties) shaking hands that is universal visual shorthand for “doing business.” Generic stock images like these make your website look like it’s straight out of the template factory. Because these images are so very commonplace, if you decide to use them on your site, you all but guarantee that the impression you leave with your visitors will not be a memorable one. Besides the aforementioned “businessmen shaking hands” image, other terribly overused and cliched stock photos include:

• The smiling customer service representative wearing a headset (“We’re here to help!”)
• Chess pieces (meant to illustrate “strategy”)
• A group of businesspeople (with the appropriately diverse representation of gender and ethnicity, of course) sitting around a conference room table doing....business of some kind? (representing “collaboration”)

Undoubtedly, you’ve encountered photos like theses many, many times in your travels around the Web, although you probably don’t recall them – exactly the reason you want to avoid these utterly forgettable images at all costs!

5. Do: Be mindful of people problems.

If you decide to use a stock image of a person on your site, keep in mind that this person is becoming the de facto face of your company. It may sound crazy, but I have seen testing sessions where users react negatively to a company due to a stock image of a person. “I don’t like the way they look” or “I don’t trust them” are two comments I have heard. While you and I know and recognize that this is a stock image and that the person in the photo has nothing to do with your company, many casual users don’t think this way. They see a photo of another human being, and they instinctively react to it. If that reaction is a negative one, then they will naturally come away with an unfavorable impression of your brand as well. Whenever you use stock photos of people, realize the impact of those decisions. Whoever graces the front page of your website is welcoming your visitors and representing your organization by default.

6. Don’t: Forget about orientation.

Photos come in two orientations – portrait and landscape. As its name suggests, portrait orientation is like a portrait, with the height of the image being greater than the width. A landscape image is just the opposite, with the width being greater than the height. When reviewing stock image options, it’s important to be mindful of where this image will be used on your site and which orientation is best suited for that space. If you select the wrong orientation, the image will need be cropped to fit the space, which can sometimes result in an awkward and unattractive end result that negates the effect you were hoping to create.

7. Do: Check the price tag

While the price of stock images on the whole has come down significantly from where it was many years ago, photos can still vary quite widely in cost – especially when you are dealing in rights-managed images. Fortunately, many sites allows you to limit your search to a specified price range and to royalty-free images so that you don’t find the perfect photo only to discover that it’s a major budget-buster. I personally really like using Dollar Photo Club for the simple fact that all images on the site are just $1, so I never have to worry about an image being out of my price range, because I know what I will spend before I even start my search! If you are using a stock image site that does not offer this type of flat-rate pricing, just be mindful of the prices of the images you are considering, and remember that you will probably need many images to complete your web development project, so don’t blow your budget on any one photo.

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