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.

---

DeadSpace: 7 Reasons Why MySpace is as Good as Dead

The first behemoth of social networking, MySpace—now owned by Fox Interactive Media—is on its way to its grave, with no one to blame but itself. MySpace’s popularity hit its apex in March 2008. In the following month, it was overtaken by its first real competitor, Facebook. But the writing was on the wall long before that. Web developers and architects all over knew that MySpace was doing it wrong. Surely at least a few of its own developers knew this and pushed for change. Still, MySpace was the slowest to adapt. For a site of that magnitude—including all of its systems, engineering and hacks to make it function—change does not come easy or cheap. The site was not built to do or handle what it attempts to do today, and its poor framework and conventions of interaction are a reflection of that. This is where the ever-important step of planning and laying a site’s foundation is so important. MySpace architects did not effectively build the system to be much more than a novelty. And while MySpace is not your average website, it serves as a lesson in utility for anyone charged with planning, building and running a website on any scale. If a better alternative in Facebook had never come along, MySpace would not be in this position nor would it have pushed to try to make any changes, even in the eleventh hour. People still want to connect to other people, share things they care about and display certain aspects of their life. Whether you agree with those aspects of our culture or not, they do exist, and MySpace fulfilled those motivations for a time. All you need is one competitor, however, one other option entering the marketplace, and the incumbent developers will be challenged to fight to the death. MySpace’s architects and developers simply could not live up to that challenge. In 2008, MySpace did begin to introduce features, tweak aspects of its foundation and attempt to crack down on the juggernauts of spam bots plaguing the site—but by then people didn’t care. Facebook came along, presented a better option, and people moved with little doubt that they would ever return to MySpace. Thus, in the same way it virally grew, MySpace will die by the same domino effect that catapulted its popularity. Let’s examine seven key elements of MySpace that rushed MySpace to its grave. (It should be noted that the following screenshots were purely at random and were very, very easy to find.)

1: Out-of-control design framework

Of the people you know, how many could lay plans for their own house, paint a beautiful portrait worthy of hanging in your living room or perform cosmetic surgery? Chances are, few. There are just certain things that some people have no business doing, either lawfully or for the sake of the rest of us. Designing websites is one of those things. Designers are in a unique class of professionals, and good web design is an exact art and science. MySpace disagrees, however, and allows their users to hack everything in the page until nothing is usable, legible or tolerable. Pages are riddled with high-res backgrounds, text isn’t protected, and colors, styles and sizes are fully unlocked—just to name a few. All of this creates a design playground which breeds annoying layouts that distract from the page's content. In contrast, Facebook has chosen to restrict at least the foundational framework of the site. While customization is an important aspect, it shouldn’t be allowed at the risk of the functional system—the very heart of a social networking site’s brand and reputation.

2: Auto-play music

People love music. It’s one of the few ubiquitous facets of life. In fact, Apple’s famed comeback as a technological and cultural superpower was all a carefully conceived plan to tap into our common love for music—and they rode that all the way to billion-dollar profits. In contrast, MySpace taps into music to annoy the living hell out of most of us. In fact, it should be noted that all non-prompted audio anywhere, on any page, is a widely unacceptable and an unwanted "feature."” This goes for ads, auto-play videos, and most important, unexpected, blaring music overlaid on what you might be listening to already.

3: Identities

The days of Internet handles are coming to a close. Yes, there was a time when one would be known as “Biker5445,” as systems continued to use usernames as main identifiers. Of course, Internet e-mail systems will still use some form of handles for some time. Most of today’s websites, however, no longer need to do this—particularly social networking sites. This is even more important due to recent news and events concerning privacy and security. The use of a handle is only good for concealing identity, and that doesn’t mix well in a site intended to connect people. What good can come from that policy in a social networking site? MySpace did eventually get clued into this basic, fundamental issue and started asking its users for their real name as an option: Again, too little too late.

4: Little focus on content with a horrible user interface

There’s actually too much of this subject matter to fit within this article’s short space. One could write volumes about the sheer usability and UI issues that plague MySpace. One thing is for sure, this aspect is a website killer, no matter if you are local deli or a major social networking site. In the case of MySpace, most interactions and conversations occur within a never-ending, scrolling guestbook. These “comments” also have very little restrictions and are filled with a cacophony of text, pictures, videos and animated gifs—all without any context in the conversation. Ultimately, the interface leaves everyone reading essentially one-half of an e-mail conversation between two people and no one else. That’s just the beginning. Features that are, at best, a one-time read about a person’s interests, life story, and favorite music, movies, books, television shows, heroes and foods are typically placed near the top of the page in one long column. Whether you have an interest in any of this stuff or not, you’re treated to it every time. The list goes on, but we just can’t stomach any more.

5: MySpace has cultivated a raunchy, immature base

MySpace’s culture—formed by the foundation created by its architects—has without a doubt developed an immaturity and a raunchiness that is unique to MySpace. It’s widely known that MySpace has sold-out to become a platform built around dating, which doesn’t help its state in terms of the quality of content. You can easily find all the "vital" statistics that you want from a date on most pages—everything from sexual orientation, build types, even income takes headline status. The archetypical “MySpace photo” is often mocked and mimicked today by a photo with the person in a sexually suggestive pose, with bright light and the camera aiming down from above. It’s not just about sexually suggestive material, but about the framework of how MySpace works. The site can’t be responsible for user’s content, or perhaps lack of content, but what MySpace’s architects have built promotes an underlying immaturity that is not present in Facebook—at least not yet. Coupled with all the other out-of-control elements, a light click-through of MySpace easily resembles a walk down a tattered, defaced red light district. And why is Facebook not facing this degree of the problem? Its architects have planned better. Perhaps it’s embracing the common sense of restricting anonymity. Perhaps it’s because Facebook doesn’t allow layouts and its interface to go nuts. Either way, it’s well-known that Facebook has attracted a more mature presence and left MySpace with the rest. If you have never experienced this cultural difference, click around random pages in MySpace—if you dare. Chances are, you don't need to and you're just nodding along with the rest of us.

6: Inordinate number of ads

News Corp is definitely profit-centric. Whatever soul MySpace ever had, it was sold to the highest bidder ages ago. The number of large, animated, irritating, irrelevant and sometimes offensive ads compared to what matters—content and utility—is terribly imbalanced. While Facebook has yet to turn a profit at the date of this article, it will eventually need to solve this problem and will most certainly shift its balance as well. Until the day comes when Facebook burns through its cash faster than investors can pour it in, this difference makes it an easy switch from MySpace to Facebook.

7: Spam

If there’s one thing that’s notorious on MySpace, it’s spam. The site’s spam comes in many forms, but the most prevalent are the spam bots for sex and dating sites. They pose as skanky figures, companies, scam artists, music groups and interest groups, which scour friend lists in public profiles and send out friend requests to drive traffic to their MySpace page or other shady website. MySpace came to its senses in recent times, figuring that this was annoying people beyond limits and started to ruthlessly crackdown. Again, too late. The brand of MySpace, “A Place for Friends,” became “MySpace—A Place For Sleazy Marketers.”

The Future

While MySpace's reputation is dead, Facebook isn’t perfect either. In fact, more and more people are becoming annoyed with its limitations and methods as well. It is still plagued with its own problems, some of them similar to MySpace in terms of its core usage. Simply put, there are things that “social networking” sites should be doing and they are not, along with things that they are doing and shouldn’t be. Facebook is—for the moment—simply a better option. But it’s got a thin line to walk as well, not the least of which is to actually turn a profit. With MySpace as good as buried, look to Facebook to begin making changes to address the pressures of creating more revenue. The balance between utility and profits will be tilted. The question is how much will it tilt and how much will be sacrificed when the next social networking site comes along and ups the ante?

More...

MySpace Helps News Corp Lose $363 Million [Mashable]

---

10 Principles of Trustcasting in the Web Marketing Universe

In today’s marketplace, the Web is where customers are won and businesses grow. It starts with a great website – one that has successfully confronted and conquered the challenges of providing a beautiful interface, engaging content and utility beyond your primary offering. However, even the best site is only the first step; it’s the foundation upon which you can start to develop a community around your brand. Once you’ve launched your site, you’ve effectively set up shop and opened the doors. That’s when the real work begins. To get and keep customers, you must master the Web marketing universe beyond your own site. You must actively seek out those whose needs, desires and interests align with the products or services you offer, draw them in and engage them in conversation. This is where trustcasting, the ongoing process of building and maintaining trust between a business and its customers, comes into play. As you venture out into the Web marketing universe, you’ll find a myriad of different channels for reaching and interacting with potential customers – from Facebook and Twitter to blogging, videocasting and more. While it may initially feel like daunting and unfamiliar territory, the key to navigating this new landscape successfully is to ensure that all of your efforts are driven by the motivation of establishing and keeping trust. As long as you always follow the principles of trustcasting, you will inevitably turn contacts into customers, customers into fans and fans into evangelists, all while cultivating a vibrant virtual community. Following are some smart trustcasting strategies that you can use to gain trust and grow your business in the Web marketing universe.

1. Give a little, gain a lot.

The first step in gaining the trust of a potential customer who may not yet be familiar with or invested in your brand is to offer them something of value in order to establish that you are interested in forming a relationship that is mutually beneficial, rather than simply self-serving. An easy way to open the lines of communication is to reward the act of becoming your friend, fan or follower on a social networking site with a special discount or promotion. Amelie’s...A French Bakery in Charlotte, N.C., recently rewarded their Facebook fans with a free favorite treat, driving their number of fans from 2,500 to over 3,000 in just over two weeks’ time.

2. Once you’ve captured their attention, don’t betray their trust.

Just because someone has added you as their friend or fan on Facebook or chosen to follow you on Twitter doesn’t give you free reign to bombard them with self-promotional messages and sales pitches. In order to keep their trust and earn their loyalty, you must continue to engage them with offers and information they can’t get elsewhere. Develop a reputation in the Web marketing universe for consistently delivering quality content that is helpful to your customers or advice that makes their lives easier or better, even if in a small way. For example, a specialty foods shop could maintain a blog featuring useful tips for entertaining. From easy recipes to food and wine pairings to simple centerpieces to fun themes, this information would resonate with the type of person who would be inclined to frequent such a shop. By providing fresh content on a regular basis (promoted through Facebook and Twitter), the shop owner keeps the reader engaged, building trust with every post and reaping the benefits when it’s time for their next dinner party. Granted, this requires an ongoing commitment of time and energy, but the reward is turning a friend into a customer into an evangelist for your brand.

3. Throw away your “i” key.

Okay – maybe not literally. But do use it sparingly. According to a study of 60,000 tweeters by viral marketing scientist Dan Zarrella, those who use social language (“we,” “you’) or language that describes relationships and communication are more successful in attracting followers than those who tend to talk more about themselves (“I”). Why, you ask? Then ask yourself this, what if you found yourself in face-to-face conversation with someone who talked exclusively about themselves? Would you want to continue interacting with that person? Would you have any reason to believe that person had any concern for you, your desires, your needs or your priorities? Certainly not. Even if the culture of the Web marketing universe is unfamiliar to you, the rules of engagement are no different. Don’t lose sight of the fact that, at the end of the day, you are one real person relating to another real person. Behave online as you would standing in a room with your followers. Invest in the lives of your customers, show genuine concern for the things that matter to them, demonstrate willingness to help in ways that do not immediately benefit you, and you will make great strides in building trust.

4. Power to the people.

Nothing you could ever say about your own company will hold the same level of credibility as the word-of-mouth reviews of your customers. The good news about this is that in the era of social media, it has become second nature for people to post online about almost everything they experience in real life. Use this tendency to your advantage by giving your customers a soap box to tell others about you and build trust on your behalf. For example, creating a Facebook group provides a centralized place where customers can post reviews and comments. Taking this idea one step further, find those who already have a loyal following, and empower them to evangelize for your brand. In 2009, True Value launched a three-month “DIY Blog Squad” promotion. They identified five highly popular home improvement blogs and challenged the bloggers to take on a project using materials from their stores. Although the bloggers were compensated by True Value for these materials and their time to write about their experiences, they were free to share their own opinions and were not paid to publish positive comments. Through this promotion, True Value reached legions of loyal readers and eager DIY-ers across the country, taking advantage of the trust in the credibility of the bloggers’ reviews to earn trust for their brand by extension.

5. Don’t underestimate the “good” of the greater good.

Today’s consumers want to know that the companies they do business with are committed not only to making their own lives easier but also to making a contribution to the community as a whole. Being a good corporate citizen demonstrates to the public that there are principles behind your brand. In doing so, you forge bonds of trust with your customers, who perceive your actions as evidence that you share their values and, by extension, that your motives are rooted in more than simply what’s best for your bottom line. The Web marketing universe offers great opportunity to practice social responsibility in ways that also engage your fans or followers. For example, Yoga Today, an virtual yoga studio that offers video classes online, is currently donating a portion of their profits to the American Red Cross for their Haiti relief efforts. Although it requires a small investment on the part of Yoga Today, this promotion will pay dividends in spades. Not only will it help drive traffic to their primary site and give customers added incentive to sign up for classes in February, it also gives all followers – whether or not they choose to act on the offer – reason to trust in the company’s values.

6. Respond in real time.

In the digital age, you can’t afford to sit back and wait for someone to come across your ad in the phone book. Don’t just hope that they’ll remember your ad when the need for your product or services arises. Instead, be proactive in the Web marketing universe. Use tools such as TweetDeck or monitter to track mentions of keywords and locations of tweeters. Identify people who have problems or issues that you can address, and reach out to them with helpful advice and solutions. By taking the time to meet their needs through a one-on-one approach, you can easily gain the trust and loyalty of a new customer or even turn an angry customer into a fan for life.

7. Be generous with your expertise.

You know your stuff better than anyone. Share that expertise with the world, and you’ll not only gain the trust of your prospective customers but also establish yourself as a credible source of useful information. This rule goes against conventional wisdom about growing a business. Companies tend to shy away from sharing their knowledge, fearing that if they reveal too much, prospects will no longer need to do business with them. The truth is that you don’t need to give away trade secrets to build trust. An HVAC repair business doesn’t need to post detailed manuals on maintaining every model they service, nor does a dentist need to refrain from writing about home whitening products for fear that prospects won’t come to the office. However, tips on performing a seasonal check on an air conditioning unit to spot problems and save money – along with tips on how to take proper care of your teeth at home – are good examples of how these types of businesses can effectively share their expertise with the greater community and create a reputation as a trusted resource while simultaneously growing their customer base.

8. A little humility goes a long way.

Be gracious and genuine. Admit mistakes. Personally address and correct the issue. Apologize. Customers are not only king; they are picky, they are fickle and they are demanding. Many businesses preach that the customer is always right, but few practice it. One delighted customer can spread your message and be an evangelist for your brand. The opposite – the dissatisfied customer – can cause 10 times the devastation. Addressing issues that arise in the Web marketing universe must be approached differently than dealing with problems face-to-face at the checkout counter. Generally speaking, when you respond to a complaint online, such as on a Facebook group page, you are doing so in a public forum. As such, it is critical always to err on the side of humility. Don’t go on the defensive. Instead, take the criticism to heart, thank the customer for their feedback and examine the matter closely. Be gracious and genuine. Admit mistakes. Personally address and correct the issue. Apologize. Don’t fear that you will lose trust by acknowledging fault or error. Instead, your followers, fans, other customers, prospective customers and the community at-large will recognize your humility and sincerity in fixing the problem, and the resolution will blossom into greater trust.

9. Turn ideas into action.

The Web marketing universe offers companies the ability to be constantly tuned in to their customers’ needs, wants and opinions in ways never before possible. To make the most of this opportunity, you must be vigilant in keeping tabs on your wall posts on Facebook, monitoring mentions of your company on Twitter and following your reviews on Yelp or any number of other sites driven by user contributions. As feedback comes in, it is important to respond promptly and keep the conversation going in order to keep your fans and followers engaged. Even more important, however, is to carefully examine the information you are receiving. Take note of patterns and trends. Are there certain requests or concerns that arise repeatedly? Taking this one step further, you can use your Facebook page and Twitter account to solicit input from your customers. For example, a coffee shop could take an informal survey of their Facebook fans to get feedback on their hours of operation or whether or not live music would be a welcome addition. You don’t need to respond to the wishes and whims of every customer. However, if you can identify a legitimate void or an area where improvement can be made based on the comments you are reading, you should take action. While the trust-building effects of these kinds of changes are not as immediate as interacting with fans on Facebook or followers on Twitter, they are nevertheless real.  Over time your customers will recognize and appreciate that you take their input to heart and tailor your products or services to better meet their needs.

10. Community-building is serious business, but that’s not to say it can’t also be fun.

Remember when you had your first delighted customer? Or accomplished that first big project? Or you first heard your company name being announced? The fun of business – and this is not just for small business – is in applying passion. And if you truly love what you do, customers will recognize and respond to your passion, and they will invest their trust in you. The very nature of trustcasting is that people want to interact with people, not companies. Be real. Be yourself. Take an example from two competing heating and air conditioning repair companies in Charlotte, N.C. – Brothers Heating and Air and Morris-Jenkins. Both offer tips and helpful information. Both are out to create a reputation. Both have extended themselves to the greater community beyond their own websites. Both use their actual employees and customers in their commercials. The fun of business – and this is not just for small business – is in applying passion. Brothers has your standard advertising. The announcement of their service, their specials, pictures and videos with reminders that they are everywhere. Morris-Jenkins adds something more to the equation. Their ads and photos show the smiling faces of everyone in the company. They paint a picture that says they simply love what they do. That sense of passion comes out in the greatest measure through their television commercials that show their employees smiling and singing their seasonal catch phrases (“You’ll have cool air at your house tonight” or “You’ll have warm heat at your house tonight!”). In fact, the ads have been running for so long now, they have become a bit of tradition in the Queen City. Both companies strive to do their own form of trustcasting, but Morris-Jenkins clearly has fun doing theirs. It not only translates to better business inside, but better growth as people connect the name and the jingle with friendly service, honesty and a promise of service delivered quickly when it’s needed.

Start Today

The practice of trustcasting in the Web marketing universe is a rhythmic business process that you must adopt to replace the carpet-bombing tactics of old marketing if you want to get ahead of the competition in today’s marketplace. Given the level of time and focused attention required, this may seem like a tall order, especially for a small business. However, this is where a qualified trustcasting agency can help. They can not only guide you through the Web marketing universe but can also work with you to execute these trustcasting principles, assuring your long-term success in getting customers and growing your business.

---