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.

Playing for Keeps: 11 Ways to Create Customers for Life

Reality check: You’re not special.

Here’s a cold, harsh truth about business growth and the nature of competition: Your products and services are not unique. There are plenty of other choices out there, and thanks to modern search engines, finding those options can be done in a fraction of a second.

“But wait!” you protest, “We are the only company that offers this product with this particular combination of features at this exact price!”

As accurate as that statement might be, your customers don’t have the time or the desire to keep track of all those finer points. You live and breathe the details of your business; your customers do not. They know that you sell widgets and your competitors sell widgets. To them, one widget is the same as the next, and one widget provider is just as good as another until proven otherwise.

So how do you not only create a preference for your widget but cultivate an unyielding loyalty to your company as the only one they want to be in the widget business with?

The answer has much less to do with convincing your customers that your widgets are special and irreplaceable and much more to do with convincing your customers that they themselves are special and irreplaceable.

Nothing erodes the relationship between a customer and a company faster than when that customer feels unappreciated. If they perceive that you don’t care about their business, they’ll happily buy their widgets elsewhere.

On the other hand, if you recognize that your customers are your company’s strongest asset and treat them accordingly, your brand will become as indispensable to them as they are to your brand.

Here are 11 ways to create customers for life:

1. Reach out and touch someone.

The process of winning a new customer is like dating. Everyone puts their best foot forward, and there’s lots of wooing and romance involved in sealing the deal.

After the sale closes, the shine can fade from the relationship a bit. Your focus turns to the coal-shoveling work of fulfilling your agreement, and the niceties of your courtship period tend to fall by the wayside.

However, if the only time your customers hear from you is when you’re trying to sell them something or when you’re trying to collect payment for your services, they’ll know exactly where they stand with you, and they won’t think twice about taking a call from your competitor who’s willing to pull out all the stops to steal them away.

Be proactive in your customer service efforts and make personal contact with your clients at least a few times a year. Don’t just sit back and wait for them to call you, and don’t assume that if you don’t hear from them that everything is peachy keen. Reach out to them, ask how they’re doing, feel out their level of satisfaction with your products or services and be a sounding board for questions, complaints or feedback.

By taking the initiative, you’re demonstrating that their value to your company goes far beyond their signature on a contract.

2. Put a human face on your brand.

Even in today’s mile-a-minute, everything-on-demand world of automation and convenience, one simple fact remains unchanged: people want to do business with people.

As a result, one of the most effective ways to make doing business with your company a pleasure through and through is to give your customers one point person who will take ownership of ensuring that their every need and concern is addressed.

There’s nothing more aggravating to a client than being passed from one person to another when they’re trying to get the answer to a question or resolution to a problem. When this happens, it’s easy for the customer to become angry and disenchanted with what they perceive to be a faceless brand and simply give up and go elsewhere.

However, you can save them the trouble of finding a new provider while simultaneously repairing the relationship if have the right customer service structure in place. Potentially deal-breaking issues can be easily resolved when there’s a real, knowledgeable human being on the other end of the phone or email who has a name, a face and a passion for providing a swift, helpful response.

3. Create a culture of service.

If you’re really serious about cultivating long-lasting relationships with your clients, customer service can’t be relegated to a policy manual or a department. It has to be an integral part of your company’s DNA.

Every single person within your organization is in sales, and every single one of them is in customer service, too. Like CEO Tony Hsieh has said on many occasions, Zappos is a service company that happens to sell shoes.

From the receptionist at the front desk to the junior-level guy behind the scenes doing the work that your clients will never see to the accountant that generates the invoices, each action and decision that these individuals make has a cumulative effect in defining your brand.

The key to creating a culture of service that permeates every level of your organization is empowerment, which means you need employees to whom you can entrust this level of responsibility.

Take great care with every hiring decision and seek out individuals who understand the importance and value of their role in shaping your customers’ experience of your brand. Most people can be trained in the nuances of a specific job role, but there’s no orientation program that can instill charisma and work ethic where it does not exist.

Passion is contagious. When your employees project genuine enthusiasm for their job and take ownership of providing the highest caliber service, your customers will feel that they’re more than just a number on a spreadsheet.

4. Reward good behavior.

If you find yourself constantly discounting your products or services to keep your customers coming back for more, you’re training them to love your brand based on price alone. Coupons and sales offer your customers a one-time benefit, and their appreciation for such concessions is as short-lived as the promotion itself.

Your marketing efforts should increase the perceived value of your goods or services, not undercut them. Rather than sacrificing your bottom line to reel in bargain hunters, why not incentivize your best customers to continue doing they’re already doing?

Developing a customer loyalty rewards program – whether it’s based on the longevity of their relationship with you, how much they’ve spent or how many referrals they’ve sent your way – is a great way to reinforce behaviors and actions that help to advance their relationship with your brand.

The key is structuring the program so that the reward is something that holds value to your customer, the initial payoff is attainable within a few months of participation and redemption is an easy, hassle-free process; otherwise, your loyalty program will have exactly the opposite effect.

5. Ask, listen and respond.

Soliciting feedback is a win-win customer relations strategy: it’s an easy way to demonstrate that you care about their needs and desires, and in return, you get valuable insights straight from the source.

After all, who has a clearer view of the ways you could potentially improve what you do or what you have to offer like the customers who use your products or services day in and day out?

In addition to proactively requesting input from your customers, it’s also important to monitor what they’re saying about you. Make sure to keep tabs on your reviews on sites like Google Places and Yelp, and use tools like Google Alerts and Social Mention to stay on top of the conversations that are occurring around your brand across the blogosphere and social media networks.

Certainly you can’t change the course of your business to meet the whim of every customer. But if you see certain requests being made repeatedly, that’s a red flag that there are prime opportunities waiting to be seized to create more robust relationships between your business and your customers.

6. Be one with your tribe.

Take a genuine interest in your customers and their well-being beyond the depth of their pockets.

Keep tabs on key developments in their world and celebrate milestones with them. Give them a shout-out on Facebook or Twitter to acknowledge their accomplishments and help them spread the word.

If your client maintains a blog, follow their posts, share great articles that they publish with your own network and leave thought-provoking comments that spark further discussion or debate.

If a customer comments on your blog or Facebook page, by all means, make sure you respond. When they take the time to actively engage with you, don’t ignore their advances, or they won’t bother to continue.

These small gestures will cost you little time and no money, but they show in a big way that you’re paying attention to the things that matter most to your customers and that you’re invested in their success.

7. Help them advance their goals.

Always have your antenna up for opportunities to help your customers in ways that go beyond your direct product or service offering.

For example, you could call their attention to an insightful article that pertains to an issue of interest to their business. Share links to their blog posts with your fans and followers. Send good job candidates their way. Look for chances to make connections between your clients to facilitate networking and mentoring. Make referrals on their behalf as often as you can.

All of these actions demonstrate to your customers that they’re constantly on your radar and that you’re a true business partner and not just another widget seller.

8. Practice random acts of gratitude.

It’s standard practice to send tokens of appreciation to your customers around the Christmas holidays. This is always a nice gesture, but it’s not exactly mind-blowing.

Don’t make your customers wait 12 months for a demonstration of your gratitude. Do unexpected things throughout the year to show them how much their business means to your company.

You don’t have to break the bank to do something that leaves an impression; it truly is the thought that counts. For example, in today’s instant-gratification-seeking, social media-obsessed culture, think about how great an impact a simple, handwritten note of thanks from the CEO of your company could make.

9. Strive for perfection.

Each and every encounter between your customers and your company plays a role in defining your brand. Take the time to map out every opportunity or instance where your customers do or should come into contact with your business and look for ways to ensure that the experience you offer them is truly remarkable. How can you make it easier, faster, more convenient, more effective, more efficient, more valuable?

Bring everyone in your company together, and ask for their feedback. What tools can you give them to help them serve your customers better? Allow them to be candid about what they see as vulnerabilities and weak points. If there are cracks in the foundation, your customers will notice, so be proactive and aggressive in addressing any issues and ensuring that everything – from the integrity of your products and services to the quality of day-to-day interaction with your employees to the resolution of your customers’ problems or complaints – reflects an unwavering commitment to delivering nothing but the best possible experience.

10. Be honest.

While you should always strive for perfection, any organization run by human beings will inevitably make human mistakes. And in truth, your customers don’t expect you to be infallible 100 percent of the time. They do, however, need to know that they can count on you to make it right.

When problems arise, you have a real opportunity to step up to the plate. Be honest, be humble, be apologetic. Make sure that your actions show that the mistake was an honest one and that you’re sincere in wanting to right the wrong.

If you’ve built a reputation for quality and service, your customers will almost always be willing to forgive a small misstep, as they’ll know it’s the exception and not the rule. In fact, according to a recent Harris Interactive study, 63 percent of respondents said they would go back to a company after a negative experience if they received a follow-up apology or correction from a person in charge.

While you can’t always be perfect, you can always be honest. Transparency is the key to maintaining a solid foundation of trust that is the cornerstone of every long-term customer relationship.

11. Never stop selling.

Genuine customer loyalty must be earned one interaction at a time. You must approach every phone call, every email and every personal encounter like a sales opportunity, not because you’re constantly pushing something else at them but because you must continuously resell yourself and build a case for why you’re the one who can make their lives better and to whom they should entrust their precious dollars.

Happy customers not only keep the cash flowing, they’re your best prospects for additional sales and a vital source of referrals and word-of-mouth marketing.

If you put these principles into practice, you can transform your brand into one of the coveted elite few who have passionate, loyal, vocal customers who not only continue to buy but who do the job of selling for you. Customers who love companies love helping them grow.

Tune in to Everything

The greatest foe a writer must face isn’t actually writer’s block; it’s a much more nefarious enemy: “rut syndrome.” Every brand has its own voice, and every project has its own tone. But after you’ve thrown a few thousand words at something, it gets harder and harder to write anything original while staying within these established parameters.

Familiar phrases start to reappear with increasing regularity, and you may find yourself unopposed to using them again. “Tried and true” becomes “tired and clichéd.” Buzzwords turn into buzzkill. The walls of your rut begin to close in on you, and you get the feeling that your best work might lie behind you, at least in this particular field.

So how can you claw your way out of this rut while staying in your groove? By looking outward rather than trying to dig deeper into yourself. And by “outward,” I don’t mean industry blogs or field-related resources. Sure it’s important to stay informed, but often the fresh perspective that fuels a new direction in your writing will come from unexpected directions. The key is to turn your attention toward those unlikely sources – and let the creativity flow.

Living on “high-receive”

One of the creative sparks for this very article has been bouncing around in my head for a couple of years now. It’s an off-the-cuff bit of writing that appeared on the Facebook page of Fame Foundry’s chief architect, Kenneth Vuncannon. The title alone speaks volumes about why I enjoy working with Ken: “On creative design (and in stern defense of all creative people)”.

In this piece, Ken wrote, “Not even designers know where all the inspiration comes from, but they are the ones who sacrifice normal life and choose to live constantly on high-receive, subjecting their brains to everything in this world in the name of creativity.”

That bit about high-receive struck me at the time, and it remains with me still, informing my work process day in and day out. And here I was just casually spending five minutes on Ken’s page, looking at pictures and catching up – probably drawn to his profile by some quip that made me laugh.

Ken’s brief paragraph in praise of designers – “they are the ones” who draw inspiration from “everything in this world” – also serves as a great piece of advice for anyone wishing to challenge their own creativity: look outside yourself. Look everywhere, all the time. Be ready for that happy coincidence. Train your mind to make connections that can grow into your next great work.

The more you think like this, the more your ideas will begin to flow from moments that might otherwise slip by as ephemeral instances of random beauty or humor. And the greater the chance that something original can find its way into one of those dry assignments that threatens to drag you down into the rut.

Here are a few examples from my own efforts to stay tuned in to the greatness around us:

Crazy people

Here’s a piece that has stuck with me for some 20 years. I was at my grandmother’s for the weekend with the rest of my family, home from college, sometime in the early nineties. Grandma Whipkey’s was a fine place to visit, overflowing as it was with homemade cookies and cable TV – HBO to be specific. We were flipping through channels when I stopped for a few minutes on something called “Crazy People,” a movie starring Dudley Moore and Paul Reiser as advertising pitch men.

I hadn’t heard of the movie and had no interest in the premise. But the part that happened to be showing was Dudley Moore’s pitch for Volvo. The tag? “Volvo: Boxy but good.”

As a college kid only just discovering the verbal agility and wit of Monty Python, this bit struck me as funny. All these years later, I think of this clip often. There’s a bit right after it as well where Moore argues that he and his fellow execs should “level with the people.” Reiser’s reply is, “We’re in advertising. We can’t do that.”

It’s a sharp piece of satirical writing – one that serves as a great reminder that marketers can – and should – tell the truth.

A reverent – and irreverent – obituary

Here’s an opening line that has never before been used in an obituary: "If you're about to throw away an old pair of pantyhose, stop."

You read that right. But such a goofy first line couldn’t possibly be part of a well-written obituary, could it? Surely this is a misguided attempt at humor that falls as flat as a vulgar joke in church.

Wrong. This one, written by the family of Mary Agnes Mullaney, a Milwaukee native who recently passed away at 85, hits it out of the park. There isn’t a hint of typical dry obit tone, but the piece overflows with joy, grief, dignity and every other emotion that naturally occurs when a well-loved person passes away.

Take this passage, which recounts lessons to live by, as demonstrated by Mary the gentle firecracker:

“Go to a nursing home and kiss everyone. When you learn someone's name, share their patron saint's story and their feast day, so they can celebrate. Invite new friends to Thanksgiving dinner. If they are from another country and you have trouble understanding them, learn to ‘listen with an accent.’

Never say mean things about anybody; they are ‘poor souls to pray for.’

Put picky-eating children in the box at the bottom of the laundry chute, tell them they are hungry lions in a cage, and feed them veggies through the slats.”

The purpose of an obituary is to announce someone’s death and convey a few carefully culled facts about the life that was lived. This piece turns the conventions of this medium upside-down and, in doing so, transforms it into something every obituary should be: a very human, deeply powerful ode to grief and celebration.

This one inspires me to look again at any dry or unwelcome writing task set before me. There is always a new and different way to approach any assignment, no matter how seemingly routine.

Kids run roughshod through ruts

If you want a prime example of setting your brain to “high-receive,” my sincere hope is that there are children in your life. My wife and I have four kids, ages two, five, seven and nine. I call them the Popcorn Gang – they’re packed with energy and exploding all over the place with creativity (among other things).

One of my favorite bedtime storytelling techniques is to turn them loose on a basic comic book plot and let them fill in the fun bits. They are the crusaders for justice, and they choose their powers. My main responsibility is voicing a made-up villain (Rovoltin’ Molten is a favorite; he controls lava and maintains a sinister lair deep in a volcano) and subjecting the baddie and his minions to my kids’ incredible feats of bravery and might. My evil mastermind will try to take over the world; this much is certain. But make no mistake, he will be utterly defeated by the end of the tale.

It’s always a big gulp from the fire hose of originality. If I didn’t set limits on the numbers of powers, talking animal sidekicks and tricked out vehicles, the stories would last until dawn. One example among hundreds: I’ve never heard of a superhero who shot blue popcorn from his knuckles before, but darned if young Captain Abel didn’t thwart a whole battalion of lava soldiers with this devastating ability. They’ve come up with enough plots and powers over the years to populate a whole new superuniverse.

My daughter Evangeline, our youngest, will be three in a couple months. The other day she had this revelation for my wife while they cuddled up and looked out the window at a gorgeous late summer day:

“Mommy, you are the flower and I am the green grass. Cole is the raincloud and Abel is the raincloud and Gibson is the raincloud and Daddy is the sun. Grandpa is the blue sky and Grandma is the green grass with me.”

So yeah, that’s unquestionably my favorite thing of the week. I was amused to note that her brothers are the rainclouds, while bursting with joy over my status as the sun (all the while realizing that I’ll undoubtedly take a turn as a raincloud in 10 years or so).

Later on, because I spend a lot of time each day in the marketing world, I thought about what a great moment it would make in a campaign. Not a cynical moment designed to manipulate emotions. Not a too-cute, overdone moment that feels like neon unicorns prancing on cotton candy clouds. But a light, authentic moment that could find a natural fit with any number of family-oriented brands. I may never wind up using it, but into the hopper it goes.

Kids are at the heart of so many memorable ads, from Volkswagen’s Darth Vader Kid to AT&T’s recent series of ad-libbed interviews. And it’s not hard to understand why: Kids don’t know from ruts. You want a fresh perspective on something? Run it by a human under 10.

Storing up genius

Staying open to unlikely sources of inspiration doesn’t always come naturally, but there’s no reason why creativity and structure can’t go hand in hand.

Keep a file of intriguing items you run across. Bookmark video clips, images or articles that strike your fancy. If you have kids, pets or friends who do things that make you shake your head for any number of reasons, by all means fill a notebook with their quotes and stories.

By the way, if you don’t end up using anything in some capacity (you will, but let’s say you don’t), there is still a tremendous benefit to be found in a life spent deliberately looking outward in pursuit of the good stuff. In the end, it’s not just about helping yourself create better work and serve your clients better. That is simply an inevitable benefit to the habit of tuning into greatness. But you can be sure that as you expand your horizons, your work will be distinguished not by its similarity to other campaigns or articles in the same field but by the part that stands out as original. Your fresh voice and your sideways angle are what will set your writing apart and keep your creativity flying high, safe from the depths of the dreaded rut syndrome.

So here’s to all those disparate bits of stimulation that will make your work better, stronger and more inventive. Stay tuned – to everything – and be inspired.