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.

---

10 Steps to Conquering Twitter Through Trustcasting

A simplistic platform with complex rules

As a vehicle for communicating with customers, Twitter is a deceptively simple platform that, in reality, is a challenge to truly master. First, there’s the format. How do you develop meaningful relationships 140 characters at a time? There’s also the overwhelmingly expansive size of the community. With 200 million registered accounts in the Twitterverse, how do you attract followers that belong to your tribe and will help your business grow? Furthermore, there’s the staggering pace of the flow of information and dialogue. With an average of 110 million new tweets every day, how do you make a meaningful contribution? Each of these complex questions share the same answer: trustcasting. As we established in the Trust Manifesto, “In a marketplace founded by, built by and existing for the people, trust is the only fundamental currency.” The results you yield from your participation in the Twitterverse will only ever be as good as the time and effort you invest in earning trust and developing genuine relationships with others. If ever there were an ecosystem built by and existing for the people, it’s Twitter. Each user is the sole arbiter of who is and is not granted permission to be present in their feed. Each and every user is judge and jury of good and bad content; the interesting, relevant stuff gets elevated and passed along to their own networks while the boring, self-serving stuff withers and dies out quickly. The one and only way to break through is by engaging in an ongoing process of building and maintaining trust. Following the golden rule of trustcasting, everything must be centered around developing authentic and reciprocal relationships between your company and other members of the community – a process for which no shortcuts exist. The results you yield from your participation in the Twitterverse will only ever be as good as the time and effort you invest in earning trust and developing genuine relationships with others.

Here are 10 essential steps you must follow to conquer Twitter by adhering to the principles and practices of trustcasting:

1. Be one with the medium.

Before you dive in and make potentially embarrassing or even reputation-killing public blunders, observe the ways in which other more experienced users engage and interact with each other to get the lay of the land. Nothing screams “Imposter!” like someone who goes tearing through the Twitterverse like a bull in a china shop with no regard for the nuances of the community. By showing disregard for the unique language and customs of the Twitter ecosystem, you also show that you’re disinterested in serving anyone’s interests other than your own.

2. Step out from behind the corporate curtain.

While the old familiar rules of marketing would dictate that your handle should be your company name and your avatar should be your logo so that your brand is always front and center, Twitter isn’t a collection of brands on a shelf but a living, breathing community of people. If your customers encounter a faceless brand, they don’t know if the person behind the curtain is the great and powerful Oz or your summer intern. It’s much more natural for your followers to have an authentic conversation with a human being. Set up your profile with a photo of yourself and a bio that tells us more about you than your official job title while remaining transparent that you also represent a company. Make sure to let your personality to shine through and to allow your interactions display human qualities – whether it’s candor, humor, generosity or even humility. By allowing members of the community to get to know you on a personal level, you open the doors to a deeper level of engagement.

3. Find real people you can have real conversations with.

With so much buzz around the concept of influence on Twitter, it’s tempting to go chasing after the users with the highest follower counts and try to entice them into your circle, knowing that one retweet will reach thousands of potential customers. However, it’s more important to find members of your tribe – those whose interests and needs align with the products or services you offer – who will be receptive to what you have to say. A good way to find these people is to regularly search for users in your area who are talking about subjects relevant to your offering. For example, let’s say you’re a dog trainer. You could enter the search terms “puppy near:Charlotte within:20mi” to pinpoint users near you who might be interested in the tips, articles and offers you have to share. By following them or replying to their tweets when appropriate, you’ll increase the likelihood that they will follow you in return. As you build a friendly rapport with this group of core followers, others will take notice and want to join in the conversation. It will be as if you are at the head of the cool kids’ table, and they want to pull up a seat. Contrast that with a scenario in which you have amassed a list of supposedly influential users who ignore your content and never respond to you. Where did all the effort to win their follow leave you?

4. Give before you expect to receive.

The holy grail of Twitter is transforming your followers into evangelists who retweet your content through their networks and give it legs to travel far beyond your immediate circle of influence. However, you can’t expect the rewards if you don’t put in the work. It’s up to you to find or create interesting content that’s worthy of a share. Promotions and giveaways are easy fodder for sharing, but they’re not the only share-worthy material. A link to a thought-provoking article, an inspiring quotation or a helpful how-to video are also highly sharable. Even if the content isn’t originally yours, you’re doing a service to your community by finding good information and passing it along.

5. Put sales objective second to trust objectives.

Twitter is a medium, not a broadcast channel.You’ll only be successful if you approach it as a means to cultivate a tribe of people you’ll enjoy conversing with, learning from and sharing with rather than a tool to give you unlimited access to a captive audience that you can barrage with marketing messages at will. Don’t engage followers as a brand with an agenda to sell but as an ambassador for your brand with intentions of making a meaningful contribution. For example, let’s say you own a store that sells running gear. You should make it a regular practice to pass along links to local races, share articles from around the blogosphere about good running form and nutrition, offer helpful tips to users who tweet about their struggles staying motivated and give shout-outs to customers who have achieved personal milestones like completing their first 5k. Without ever posting a direct link to a product, you can allow prospective customers to reach their own conclusions that you are the kind of company they want to support when they’re ready to make a purchase.

6. Reach out.

Remember that Twitter is, in essence, one sprawling public forum. As a result, you don’t have to sit back and wait for someone to approach you. It’s perfectly acceptable to jump into the conversation, as long as you follow the rules of trustcasting in doing so. Don’t be disruptive, and don’t go straight for the kill with a hard sales pitch or a link to your website. If you see an opportunity to join in a dialogue with something insightful, helpful or even funny, go right ahead. You might get a response or a follow in return for your efforts. More importantly, over time, you’ll cultivate a reputation for being a trusted source of interesting, useful or entertaining information, and your company and your brand will reap the benefits of your perceived authority in these areas.

7. Be responsive.

Always be responsive if someone directs a question or comment your way. It’s smart to keep tabs on mentions of your name or the name of your company so that you can reply as quickly as possible. Attention spans on Twitter are short, and if hours pass before you respond, chances are good that the person has moved on, and you will have missed the window of opportunity for a good two-way dialogue. It’s also important to be an equal-opportunity responder. While it’s always fun to reply to someone who is raving about your product or service, it’s dangerous to ignore those who have complaints. Respond to your critics with sincere concern and express an earnest interest in making things right, just as you would a dissatisfied customer who was standing in front of you in your store. Even if your efforts are rebuffed or ignored, you will have done your best publicly to demonstrate that you have their best interests at heart. In trustcasting, respect for the customer is paramount.

8. Be the kind of follower you want to have.

One of the best ways to earn goodwill in the Twitterverse is to promote others’ content. When someone you’re following shares a link to a thought-provoking blog post, news article or video, retweet their content, giving them credit for their great find. Elevating other members of the community is a simple, selfless act that demonstrates that you’re there to do more than toot your own horn.

9. Let your guard down.

The best thing social media – Twitter included – has done for business is removing the barriers that once stood between companies and their customers. No longer are you bound by the restrictions of mass media channels; instead, you can interact directly with your customers on a personal level. Therefore, your participation on Twitter must follow the rules of the culture of the Web. If you insist on holding your followers at arm’s length and only allowing them to see a perfectly polished version of your company, you won’t get the most from your efforts. Instead, go with the flow and keep it real. Your tweets are essentially part of a long-running chat. Keep your tone light, casual and approachable. You can even give your followers the occasional behind-the-scenes glimpse into daily ins-and-outs of your business. If you own a bakery, and you tweet a photo of your chef hard at work making your signature dessert, it’s a great way to remind your followers that they can swing by and pick up a freshly baked, handmade treat without explicitly asking them to do so. And they’ll feel more invested in your success because they will feel more connected to the people behind the name.

10. Be patient and persistent.

You won’t be an overnight Twitter sensation. You may not ever play on the level of Martha Stewart or Ashton Kutcher. But you also don’t need millions – or even thousands – of followers to make your participation worth your while. At its core, Twitter is a high-tech version of traditional grassroots marketing. You must build your community one follower at a time. Keep your focus on the quality of your community and the depth of your interactions, both of which you must allow to grow naturally and organically. In trustcasting, there’s no substitute for honest intentions and hard work. But while earning and maintaining the trust of your followers is a more indirect path to business growth than conventional carpet-bombing sales and marketing tactics, it will ultimately allow you to achieve the greatest return in securing ownership of your market.

---

Building a Thriving Community Ecosystem: The Five Essential Elements

What is an ecosystem?

In nature, an ecosystem is defined as “a system formed by the interaction of a community of organisms with their environment.” In today’s culture of the Web, an online ecosystem is essentially the same thing – the organic result of the interactions that occur between the members of a community and the environment that they live in. It cannot be defined in and of itself but only as the sum of its thousand moving parts. For brands that exist in today’s culture of the Web, there is no higher echelon of marketing than establishing your own community ecosystem. Why? Well, it’s one thing to interact with your customers and fans in an ecosystem that someone else has built (e.g., Facebook, Twitter, etc.). However, because you didn’t build the ecosystem, you’re limited to one-off interactions that are structured according to the framework defined by the architects of that community (140 characters, anyone?). On the other hand, however, when you’re the one that builds the sandbox, it’s your party. Your website becomes the place where members of your tribe choose to hang out, to debate, to share and to be inspired by their peers – who, incidentally, are other members of your tribe. Most importantly, their identity as a member of this community is inextricably linked to your brand. It’s a marketer’s wildest dream come true. The process of building a thriving ecosystem is no small feat. Here are the five essential elements that you must have if you want to create a real, organic online community that simultaneously exists for and is a product of your tribe:

Earth: The foundation

Before you can build an ecosystem, you have to lay the foundation. But where do you begin? In our series on understanding and marketing to tribes, we established that tribes form around a shared passion for a specific idea, lifestyle or movement. Therefore, for your ecosystem to thrive, there must be a common thread that draws people in and binds them to the community and its members so that they identify themselves as part of your tribe. Your goal is not to build the next Facebook. People don’t need just another broad-based social network where they can set up a profile and post their thoughts. That already exists in any number of places where they already do those things. What people are yearning for is to be among and connect with other people who share their passions. When you build a community around that passion, they’ll come there knowing it’s a place where they can satisfy that need to belong, where they’ll be among others who speak the same language and where they’re free to obsess over something with like-minded people who won’t mind if they talk ad nauseum about that one particular thing that really stokes their fire. So how do you find that common thread? Think about your customers. What do they love? What excites them? What challenges do they face day in and day out? What do they worry about? How can you tap into those things? The answer to those questions is the foundation for your ecosystem. By identifying the common passion that unites your tribe, you can begin to build a community where great interactions will thrive. Even if your brand only ever lives at the periphery of those interactions, that’s okay. Remember, too, that among those who populate your ecosystem there will be individuals who are already your customer, might someday be your customer or may never be your customer, and that’s okay, too. The fact that you exist at the root of all of it will yield greater rewards than you could ever imagine.

Air: Sharing

The ability to interact with other members in meaningful ways is as critical to the life of an ecosystem as the air we breathe; in its absence, the community suffocates. An ecosystem is not a blog with comments. While commenters may well respond to one another on occasion, these interactions are limited in scope to the content to which they are attached. There’s nowhere else for these commenters to go to keep the conversation going or to talk about a different subject entirely. An ecosystem is not a message board where people come to get help or resolve a problem. Once that problem is solved, they move on and never come back; they don’t identify themselves with or feel any lasting ties to the community. An ecosystem is a place where people can share the things matter to them in ways that are meaningful to them. It starts with being able to establish a profile – one that’s more than simply a name and a photo. You need to give people the ability to define who they are in the context of that community and its foundation. Then they need outlets to share their own ideas, photos and videos and to interact with others around that shared content. It’s this level of highly personalized sharing that forges deep, persistent bonds among members of a community. NASCAR driver Ryan Newman’s Fan Club site is built around keeping its members engaged and active by giving them many different ways to share and interact. They can post their own videos, build photo albums, join the conversation on community message boards and even chat with other members in real time. Again, keep in mind that all the sharing that takes place in your ecosystem may have very little to do with your products or services. And that’s exactly what you want because a community that will thrive over the long haul is one that exists to serve its members, not your brand and your business. As long as you’re the one providing the arena where these exchanges are taking place, you’ll benefit immeasurably from constant exposure and engagement.

Water: Leadership

Good tribe leadership is the water that helps a fledgling ecosystem grow and keeps an established ecosystem strong and thriving. The task of providing good leadership is actually more challenging than it may at first seem. In the traditional world of marketing, everything was centered around presenting a carefully cultivated message and never allowing the customer to see any cracks in the perfectly polished veneer of a brand’s image. But that approach doesn’t work in the world of the online ecosystem. You must be comfortable walking among the members of your community and interacting with them on a human level. You must be willing to drop the corporate mask and be authentic. Think of your role as the leader of your community as being the host of a party. It’s not your job to dominate every conversation or to restrict what your friends are and are not allowed to talk about. It is your job to provide good fodder for discussion, to fill in the gaps when you sense a lull in the conversation and to help everyone feel at home and included.

Fire: Rewards

The members of your ecosystem that make the wittiest comments, spark the healthiest debates or share the most interesting content are the ones that keep the community vibrant. So how do you motivate them to keep doing what they do best? In today’s fame-obsessed culture, everyone wants their 15 minutes of notoriety, and everyone wants to feel like a celebrity in their own circles. People are driven by the opportunity to be elevated to a position of higher esteem among their peers. Therefore, if you want to stoke the fires of participation in your ecosystem, recognition is the name of the game. Give the members of your community ways to participate that are all about them, and then reward them for that participation. Distinctions such as “photo of the day” or “most viewed video” reward the creator by putting him or her in the spotlight. Call them out from the crowd, and you'll feed their craving for more recognition. The key to establishing an effective reward system is knowing what motivates the members of your community. For example, because racing fans thrive on competition, the Ryan Newman Fan Club community is built around a points system. Members who start discussions or who post photos and videos can earn points – or votes – from other members that put them in the running for a spot on the fan club’s leaderboard. Points are tallied throughout the racing season, with prizes awarded to the top performer each month as well as the top overall points earner for the season.

Aether: The essence

Aristotle defined aether as the quintessence – the immutable substance that makes up the heavens and stars. When it comes to online ecosystems, the aether is the intangible element – the sine qua non – that makes being a member of your community something to be desired. Think about the most popular nightclub in town. Why do people go there? It’s not just to listen to music. It’s not just to drink a martini. It’s not just to hang out with their friends. They could do all of those things in any number of places. There’s something in the atmosphere – an indefinable quality – that propels them to go to that one club rather than any of the dozens of others in the same vicinity. Perhaps it’s that when they go there, they’re surrounded by people just like them. Or perhaps they’re surrounded by people that they aspire to be like. Maybe it’s the bragging rights that come with being “seen” in the place that everyone’s buzzing about. Your ecosystem needs the same thing. There has to be some sense of status or value attached to being able to claim membership in your tribe. This is the one element of your ecosystem that you have the least control over. You simply can’t manufacture the essence, nor can you make a proclamation that this is what makes your community special. In fact, the essence can only emerge when it’s allowed to develop organically. When you see members of your community sharing inside jokes, developing their own language, even making plans to meet up offline – that’s when you’ll know you have the essence. The best thing you can do when you recognize it is to subtly encourage those members or activities that you see happening around it so that it continues to flourish.

It’s your sandbox.

The prospect of building your own community ecosystem is certainly daunting. There’s much at stake and many unknowns that you must contend with. In sharp contrast to the world of traditional marketing, there’s a distinct lack of control. An ecosystem can only thrive when allowed to develop and grow naturally and on its own timeline. As soon as you start to restrict or interfere too much, it will wither on the vine. Entering the realm of ecosystem building requires a leap of faith. However, just as building the trust that your customers have in your brand is paramount to the growth of your business, putting trust in your customers is essential to the growth of your ecosystem. If you can relinquish the need for control and truly let the members of your community take ownership of it, you’ll be amazed at the results that unfold. Interactions will become vibrant and nuanced, natural leaders will emerge and the community will truly take on a life of its own. And in today’s marketplace, there is no more powerful force for business growth than a large and engaged community that’s homed around your brand.

---