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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New Year, New Ideas: 3 Smart Strategies to Jump Start Your Marketing

The beginning of a new year makes everyone feel like a fresh start is possible, and businesses are no exception. Plenty of opportunities exist online if your goals include making improvements or ramping up your marketing efforts in the new year. You know that maximizing your brand’s exposure is the key to gaining new customers or maintaining the base you already have, so when you make your company’s list of new year’s resolutions, make sure to include a commitment to exploring new avenues for marketing on the web. If you feel as though you’ve exhausted all possibilities for online promotion of your business, think again! Numerous options are available that you may not have considered.

1. Expand your social media efforts.

By now, if you don’t have a Facebook page that is frequently updated with new content, you’re way behind in the marketing game. It’s estimated that 15-25 million businesses – both large and small – have a presence on the social media giant. And with 500 million people worldwide using Facebook, a business would have to be crazy not to create a page. So, assuming you’ve already established a Facebook presence, it’s likely you’ve also connected with customers and potential customers through Twitter or LinkedIn, as well. But what about Google+? Or Pinterest? Instagram? In this tech-connected world, it’s essential to not only stay on top of the social marketing trends, it’s also imperative to spread your marketing efforts across many different platforms to reach as many potential customers as possible. So, where to begin? As with any marketing plan, it depends on what services and products you’re selling. It makes sense that a product that has visual appeal would benefit from marketing on a visual social media platform, such as Pinterest, Tumblr, Instagram, or Flickr. Establishing a following on any of these sites literally raises your company’s visibility via images and copy that can be shared and made viral instantly. To add more power to your visual message, establish a YouTube channel and upload short video presentations of what your product can do, or use the Vine app to create looping videos. If your company offers a service, Howcast is a great place to post how-to videos that can be shared across the other social media sites. Building your brand via social media is effective, but only if you update your content frequently; after all, the goal is to maintain your presence. If you find that constant updates are overwhelming or daunting, think about utilizing the services of a website like Hootsuite, which offers a bulk scheduler that can send out up to 350 pre-made messages to the social media sites your company uses. Not only will that free up your time, it can also prevent consumers from being bombarded by your messages – the scheduler can be used to space out your updates.

2. Publish, publish, publish.

If you haven’t already embraced content marketing, now is the time to do so. Content marketing is essentially targeted marketing that doesn’t scream “targeted marketing”. You create content in the form of articles or blog posts that your customers will be most interested in. It should be relevant, purposeful, and considerate of your audience’s needs and intellect. Content marketing takes a step back from in-your-face sales techniques, and instead informs your audience about what you have to offer. Content marketing is highly effective, and doesn’t feel pushy. If you’ve been using content marketing via blog posts, you might want to try to mix it up a little bit – especially if you’re running out of fresh content. One way to spice up your marketing efforts is to add a podcast to your website. A podcast can provide a weekly or bi-weekly bite-sized chunk of information to your customers that won’t require the time it might take to read content. Keeping the podcasts to about a minute in length is enough time to hook listeners, keep them engaged, and possibly leave them wanting to know more about what you have to offer. Perhaps the best aspect of podcasts is utilizing content you’ve already created, thereby opening an entirely new channel of exposure for your product. In recent years, the internet has exploded with blogs by “experts” in nearly every subject. To give additional exposure to your blog or podcast, employ the services of a blogging superstar in your field to provide a guest blog or an interview. You don’t have to limit yourself to bloggers, of course; finding other influencers in your field for “guest” opportunities will not only increase awareness of your company, but also provide an excellent opportunity for SEO leads to your website. The best part of utilizing guest bloggers is that more than likely, that guest blogger will post the blog on their site, which in turn drives even more visitors to your business blog. Cross-referencing is a great click-generator. Keeping your content visually inviting should also be a priority as you resolve to freshen up your marketing efforts. Web visitors love to see visual representations of information, and infographics add spice and interest to any online content. If you deal with technical or difficult-to-understand concepts, adding a visual element such as an infographic can be extremely beneficial. Several apps are available online to create interesting, colorful representations of complex information. Sites such as piktochart.com or infogr.am are easy to use, and free. And best of all, the designing is done for you.

3. Capture customers when they’re searching.

None of these suggestions will work very well if your company can’t be found online, and that’s why you may want to investigate cost-per-click, or SEM (Search Engine Marketing) advertising. One of the largest and most popular online advertising methods is Google AdWords. People worldwide search Google for information a billion times each day. If your business shows up at the top of Google’s search engine, you’re guaranteed to draw in new customers, or at the very least, get more exposure. The key, of course, is to come up with the right keywords to generate the most visits. The AdWords platform allows you to specify what keywords entered by searchers will generate your ad. You can be specific about services your business provides, or you can limit your ad to a particular geographic location. Customization is offered in varying degrees; you can even select your ad to appear on certain days of the week, during specific hours, or even whether the ad is shown on mobile devices only. Cost-per-click works based on what budgetary parameters you set; for example, you set a daily budget, and are only charged when someone clicks on your ad, not every time it is displayed. According to the AdWords website, you specify the maximum amount you're willing to pay for visits to your website. The bid you make determines how high up on the search results page your ad appears. Don’t just limit your efforts to Google, either. Facebook offers a cost-per-click service, as does the Bing search engine. Several other companies provide the service, as well.

Stay the course

No matter what new ideas for marketing your business and products you choose to explore in the new year, the most important element in your endeavor is to stay consistent. If you start out the year with a focus on making changes, stay committed to maintaining those changes. Your customers will expect you to follow through, and your success may depend on it.

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Eight Steps to Conquering Local Media

Anyone charged with the task of growing a business salivates at the idea of landing in the national media spotlight. The lure of the massive exposure that just one mention on CNN, Good Morning America or Oprah or in the pages of Bloomberg Businessweek or USA Today delivers is the driving force behind many PR campaigns. However, it's important to remember that the cardinal rule of real estate also applies to media relations: location, location, location. Of course your potential customers are tuned in to news from the national players. But these customers also exist as members of their local communities. They live locally, shop locally and do business locally. They also read, listen to and watch local media outlets. No matter the size of your business or the scope of your target market, it's critical to develop a systematic approach to leveraging local media. That's why no matter the size of your business or the scope of your target market, it's critical to develop a systematic approach to leveraging local media outlets to increase awareness, build trust in your brand and boost sales. But if you want to make an impact, you must get strategic. Even at the local level, the competition is stiff for airtime and column inches. Here are the fundamentals of breaking through the clutter and conquering the local media markets where you do business.

1. Do your homework.

Every market offers a wealth of opportunities for media coverage. Make it your mission to uncover all of the outlets available to you in each market and then narrow your hit list according to the demographics of your target market and their media consumption preferences. For print media, you'll want to identify the major daily newspaper as well as smaller suburban weeklies and specialty publications that serve niche audiences like parents, women and retirees. Even the humble neighborhood association newsletter can be a valuable tool for showcasing your expertise or increasing awareness of your services. On the broadcast side, local television news programs are a given, but don't forget about local daily or weekly radio and TV talk shows, which often have strong loyal followings. Morning and afternoon drive shows in particular attract a huge number of listeners during the daily commute. Locally produced call-in and talk radio can also be ideal targets for your promotional efforts, particularly if you can offer an expert to field questions or provide insight on topics of interest.

2. Go grassroots.

In your efforts to canvas the traditional media outlets in a given market, don't forget to also investigate the opportunities that may exist to gain exposure among locally based online communities. In today's digital era, companies have unprecedented access to highly active, motivated and powerful influencers who can use social media platforms to disseminate information through their networks of friends and fans. A successful local social media-driven PR campaign begins with researching the popular websites and blogs that cater to that specific market as well as identifying individuals have a strong following on Facebook or Twitter and whose needs and interests overlap with your offering. Once you've pinpointed the sources that are the best fit in terms of both size and scope of their influence, that's when it's time to put trustcasting to work. You must strive to create authentic relationships with these individuals who hold a position of leadership within their tribes. You must also overcome the burden of proof that your company and your products are worthy of their recommendation. By giving you their endorsement, they're putting their reputation and their credibility on the line. Make it worth their while, and they'll make it worth yours in return. For example, when Just Focus Massage & Wellness in Charlotte, North Carolina, needed to build awareness for their new FocusForward wellness seminar series, they identified popular local lifestyle blogs and approached the owners with the opportunity to attend the series free of charge in exchange for sharing their experience with their readers. For a minimal investment, Just Focus was not only able to gain exposure to a highly targeted audience, they also reaped the benefits of the inherent trust that comes with the word-of-mouth recommendation of an established tribe leader.

3. Get to know the gatekeepers.

It's always a good idea to get to know the talk show hosts and reporters who cover topics of relevance to your products or services. However, it's important to keep in mind that many of these individuals have relatively little control over the stories they report. The real power players in local media are the editors (print), producers (radio) and assignment editors (television) who tell the writers, hosts and reporters where to be and what to talk about. If you can get to know these gatekeepers and how to get in front of them, you'll greatly improve your chances of gaining the coverage you seek.

4. Develop genuinely local angles and events.

It's tempting to distribute the same press release or pitch to every outlet on your hit list, especially if you think your story offers a broad-based appeal. However, going the extra mile to enhance your story with local interest will pay dividends in securing coverage in the markets that matter most to you. For example, let's say you're an HR consulting firm pitching a story on the rising costs of health care. This is a compelling story that might gain coverage simply on the merits of its timeliness. However, you could significantly boost your chances of catching the eye of a local newspaper editor simply by including a few relevant details like how local cost increases compare to the nationwide average or the contact information for one of your consultants who is based in that location and can offer expert insight on how these changes are affecting the job market in that city.

5. Don’t forget the fundamentals.

Give your press release the “Would I read it?” test. In addition to giving local media stories that offer local angles, local impact, local data and local people, you must also make sure you’re obeying the fundamental rules of good storytelling. Give your press release the “Would I read it?” test. Keep it simple and find hooks that tie into universal themes. Time your pitches to correspond with news cycles and seasons. Offer compelling visuals and expert spokespeople. Learn the audience demographics and the hot-button issues for each media outlet you plan to approach, and shape your story accordingly.

6. It’s all in the delivery.

Even the best pitch can fall flat it it’s not delivered in the correct manner and at the appropriate time. An important part of building relationships with media professionals is getting to know how and when they prefer to be contacted. Does he live and die by his Blackberry, or will your e-mail just collect dust in his inbox? Would she like to hear from you, or would a phone call be an annoyance? Timing is everything. You must make sure you’re on the radar when editorial decisions are being made and that you’re not trying to get attention when a reporter is up against a deadline. Make sure you’re on the radar when editorial decisions are being made. While every news organization works differently, there are a few rules of thumb that apply in most cases. Deadlines generally fall in the afternoon for daily print publications and three to four days ahead of publication for weeklies. Radio show producers typically have either weekly or bi-weekly meetings to plan upcoming topics and guests, while assignment editors for local television news broadcasts make their final determinations about where to dispatch camera crews and reporters on a daily basis, usually very early in the morning. It’s important as well to be realistic and bear in mind that there can and will be times that no matter how strong or well-timed your story idea might be, no one will bite based on prior commitments or breaking news. Simply accept this graciously and move on to the next pitch.

7. Don't underestimate the personal touch.

Always remember that there are people on the receiving end of your stories. "Media relations" can be a bit of a misleading term. It implies that you’re sending your press releases and pitches to some nameless, faceless news-generating machine. In fact, nothing could be further from the truth. Always remember that there are people on the receiving end of your stories, so put your best relationship-building skills to work. Call and introduce yourself to local writers, editors, bloggers and producers when you have nothing to actively pitch. If possible, invite them to lunch to discuss their needs and interests as well as how they prefer to receive information, and demonstrate consideration for those preferences when you contact them in the future with story ideas. Do keep in mind that many media outlets have strict policies regarding gifts, so be sure to know and play by the rules.

8. Give ‘em the goods.

Product placement can go a long way in getting free advertising for your company, especially in radio. If you run a bakery, deliver a tray of your most popular treats to the afternoon drive show personalities. Or if you own a day spa, invite the busy mom who hosts the morning show to enjoy a free day of pampering. While there are no guarantees, chances are good that you'll at least get an on-air thank you and maybe even a genuine, glowing review of your products or services. Additionally, radio and TV producers are always looking for prizes for promotional giveaways and sponsors for events. These opportunities tend to cost much less than traditional paid advertising on the same stations but deliver high-impact exposure and referrals.

Let the conquest begin.

Remember: if you want to win the war of PR, you have to win the battles being fought in your own backyard. By employing these time-tested tactics, you can help to ensure that your pitches will stand out from the crowd and establish your company as a trusted source for local media outlets in the markets where you do business.

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