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.

Mythbusting Google’s “Mobilegeddon"

Back in December, we published an article called “Another Google Game-Changer: How Going Mobile Friendly Will Boost Your Search Visibility” that addressed the new “mobile friendly” designation that the search engine was adding to websites that had been optimized for mobile devices.

At the time, Google said that they saw “these labels as a first step in helping mobile users to have a better mobile web experience.” They went on to say, “we are also experimenting with using the mobile-friendly criteria as a ranking signal.” Many people speculated that it would only be a matter of time before Google started rewarding sites that were mobile friendly, and thereby penalizing those that were not. That day has come.

In a recent announcement, Google clarified their intentions for this mobile friendly label, stating that “starting April 21, we will be expanding our use of mobile-friendliness as a ranking signal. This change will affect mobile searches in all languages worldwide and will have a significant impact in our search results.”

If your site is not mobile friendly, Google has been quite clear in the fact that that site will no longer be given the same consideration that sites that are responsive and mobile friendly will be given. If you haven’t yet made multi-device support a priority on your website, now is the time to do so!

In prestigious company

Creating mobile friendly websites that are built with a responsive approach is not a new idea. The article that introduced this term to the industry was published in 2010 and it has been a best practice for years with Google recommending it as their preferred solution for multi-device support for quite some time. Still, even though responsive web design has been an important part of the Web industry for a while, there are many companies that have not yet implemented these best practices on their own site. If you are one of the companies that has thus far eschewed this approach to multi-device support, rest assured that you are in prestigious company.

A recent article by TechCrunch found that 44% of websites for Fortune 500 companies failed when using the Google PageSpeed Insights API. This tool shows if a site is, indeed, mobile friendly. The findings of this report show that the failure to go responsive is not always due to financial reasons. The prestigious companies on the Fortune 500 list can certainly afford to redesign their websites to add a mobile-friendly experience. So why haven’t they done so then? Oftentimes, when a company fails to go responsive and create a site with an optimized experience for all screens and devices, it is because they do not fully understand the importance or benefits of doing so.

Mobile expectations

Google’s changes to their algorithm show that they expect more from websites and the experience they deliver to mobile devices. This makes sense, because web users as a whole have begun to expect more from mobile websites.

A short time ago, Google conducted a survey of website users and their opinions on the mobile web experience. They found that “72 percent of mobile users say it’s important to them that websites are mobile-friendly, yet 96 percent have visited a site that doesn’t work well on their device.”

The survey, and resulting report, went on to state that “users are five times more likely to abandon the task they are trying to complete if the site isn’t optimized for mobile use, with 79 percent saying they will go back to search and try to find another site to meet their needs.”

As these numbers show, the expectations for mobile websites are rising and the patience to deal with non-mobile friendly sites is greatly diminishing. Because of this, the “do nothing” approach to multi-device support is simply no longer an option.

The “do nothing” approach

The “do nothing” approach to mobile web support is pretty easy to accomplish, because, as the name suggests, you do nothing to your website and allow a layout that was intended for large screen, desktop monitors to display on all devices and screen sizes – mobile included. Before the rise in popularity of mobile devices, this is how all websites were built. As such, when people first began using those mobile devices to access websites, they accepted the fact that sites were difficult to use on those devices. They had to “pinch and zoom” to read content or tap links that were meant to be clicked with a mouse, not touched with a finger. Once responsive design took hold, however, and as more and more sites integrated this approach and improved their mobile experience, expectations from customers were raised.

In short order, the “do nothing” approach went from an unfortunate, yet acceptable, solution to a sign that your site was behind the times. Now, with Google’s changes to their search algorithm and their clear stance that the “do nothing” approach is no longer acceptable, this approach will not only show you are behind, it will also hurt your site’s overall SEO. If you have not yet made your site mobile friendly, and you are not planning to do so now, expect that your site will fall further and further behind the times and lower and lower in Google’s search engine rankings.

The case for mobile-friendly

Google’s algorithm changes are the final piece that many companies may have needed to finally take the steps to make their site mobile friendly – but maintaining quality rankings is not the only reason to use this approach. There are a number of benefits to going responsive on your website, including:

Customer service – since customers expect a website that works well on all devices, from desktops to tablets to phones and beyond, by delivering a quality experience on all these devices, you present a better overall customer service experience

Business development / customer retention – as the Google report shows, customers who visit a site on a mobile device and find it not optimized for that device are likely to leave the site and seek out an alternative for the products or services the need. This is lost business for you! A site that works well on all devices ensures that the traffic you get is the traffic you keep!

Content consistency – with a responsive website, you have 1 website to maintain and manage, as opposed to separate sites for mobile versus desktop users. That one site will dynamically reflow its layout based on a user’s screen size. This means that while the look of the site may adjust for different users, the content will remain the same, ensuring that the right message is always delivered regardless of the device being used to access the website

Take the leap.

Expect search engine rankings to change dramatically after April 21st as Google begins using mobile friendless as ranking criteria. If you are not ready for this change, speak to your web or marketing team immediately and get the ball rolling on plans that will bring mobile support to your website and have your business ready for the increasing mobile-centric future of the Web.