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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In It to Pin It: 8 Ways to Win New Customers with Pinterest

A Pinterest-ing development in social media

The results are in and they’re rather stunning: Pinterest is now the third largest social network in the U.S., right behind Facebook and Twitter (Google+ who?). Moreover, a recent study by BlogHer showed that women trust recommendations from Pinterest more than any other platform. Not too shabby for a network that’s barely two years old and still in an invite-only open beta phase.

The basic mechanics of the site are simple. Members (known as “Pinners”) can establish a profile and “pin” all the cool, funny, trendy and inspirational things that they find in their online travels to digital bulletin boards, where images (and their associated links) are bookmarked. Pinners use these boards to visually document anything and everything pertaining to their interests, whether those interests entail fashion, home décor, food, parenting, wedding planning, tech gadgets or cars.

As you’d expect from any social network, pinners can follow each other. They can also “repin” other users’ images as well as like or comment on pins. Naturally, there’s also integration with the other Big Two, with the option to share links to pins on Facebook and Twitter.

More interesting is the question of why the site has caught fire so quickly. The primary reason lies in its anatomy. True to its name, Pinterest creates a highly streamlined experience for its users that is curated according to their interests. Unlike Facebook and Twitter, where users have to sift through every photo and status update from those they follow in a linear fashion, Pinterest users can focus solely on their hobbies without their feeds being cluttered with information that holds no value to them.

The most important question, of course, is how you can harness the power of this explosive new social network to grow your business. To answer that question, here are eight ways you can use Pinterest to win over new customers and fans:

1. Tap into what people love.

Before you dive in, take some time to study the ecosystem and how its members interact. One of the greatest advantages of Pinterest from a marketing perspective is that the community is very open, so it’s easy to see who’s influential in a certain area of interest and what types of content generate the most repins and comments.

By monitoring these trends, you can identify where the best opportunities lie for your brand to create the kind of content that your customers crave.

2. Focus on values, not products.

Think your brand isn’t a good match for an image-driven platform? Don’t be too quick to dismiss your Pinterest potential. Plenty of brands that don’t seem like the most obvious fit for Pinterest – from GE to Kotex – have found creative ways to leverage the platform to engage with customers.

The key is focusing not on your products or services but on the core values that define your brand. Organize your boards around these pillars of your brand and share things there that anyone who shares that common interest or passion would enjoy. Make sure to offer a healthy balance of content that includes your products where relevant but also great stuff from across the Web as well as repins from other users.

Whole Foods Market, for example, has quickly emerged as a Pinterest rock star using this approach. The company’s core values include caring about the community and the environment, promoting healthy eating habits and providing education about good nutrition. Drawing upon these values, they’ve created a diverse collection of boards –ranging from “Who Wants Dinner?” to “Winter Entertaining” to “Super HOT Kitchens” to “We’re Used to Reusing” – where they share content from a wide array of sources that collectively represents the Whole Foods lifestyle.

3. Tell a story in pictures.

Unlike Facebook or Twitter, Pinterest is image-based rather than message-based – which is one of the key reasons for its success. When users scroll through feeds or boards, they’re presented with a simple, uncluttered interface that includes a stream of pictures interrupted just slightly by a brief caption below. As a result, to be successful, it’s important to ensure that the images you pin to your boards tell the story of the content they represent in a visually compelling way.

For example, if you want to share a link to a post from your blog on Pinterest, you need to make sure it includes a powerful image that encapsulates its key theme or message and is also intriguing enough to prompt someone to click through to see the full story.

Keep in mind, too, that when followers re-pin your images, they can change the caption. As a result, it’s important that the images you pin can stand on their own outside the context of your brand’s boards so that they continue to convey your message and values as they are repinned from one board to another.

4. Be a participant, not just a contributor.

Creating boards that offer great curated content organized around your customers’ interests is a good first step. But as with any social network, to get the most out of your presence on Pinterest, you must also listen and engage, not just broadcast.

Repinning other users’ content to your brand’s boards demonstrates that you’re there to do more than push your own agenda by elevating those who have something interesting to offer on your topics of interest. Likewise, following other users’ boards and commenting on others’ pins is an effective relationship-building tactic that can draw new eyes (and potential new customers) to your own boards.

5. Let your customers create content for you.

Pinterest makes it easy to crowdsource content. All you have to do is create group pinboards and invite other users to pin content to those boards – a great way to spark engagement with your brand.

You can also use group pinboards as a springboard for contests where you ask customers to pin pictures of themselves using your products, with prizes for the most creative, innovative or inspiring images. It’s a win-win strategy for both your brand and your customers, as your customers can enjoy a turn in the spotlight while you can promote your products in a tasteful way that’s very palatable to the community.

6. Diversify your boards.

Another element that differentiates Pinterest from Facebook and Twitter is that users have the option to follow specific boards in addition to following users. This means that a user may elect to follow just one or two of your boards rather than everything you post.

While this may initially seem like a disadvantage to you, it’s actually a benefit. Why? Because it means you don’t have to worry about limiting your content to only that which offers the broadest appeal. Instead, you can tailor each board to fit a specialized interest.

Returning to our Whole Foods example, each of their boards is tailored to a fairly narrow area of interest, whether that’s recipes, seasonal entertaining, home décor, DIY projects, gadgets or books. While all of these boards may not appeal to every Whole Foods customer, by providing such a wide array of boards, the brand has greatly increased its chances that every customer can find something that resonates with their interests.

7. Make sure your great content can be found.

If you’re investing the resources required to create and curate interesting content, you want to make sure it can be found by the greatest possible number of customers and potential customers, right? The good news here is that there are tactics you can use to boost your odds.

First, just like Twitter, Pinterest supports hashtags. Tagging each image with the central idea or theme of your board will increase its chances of being found in search. Additionally, the sharing tools built into Pinterest automatically pick up these hashtags and include them when users share your content on Facebook and Twitter.

Also, make sure when possible to form the name of your boards around keywords. For example, West Elm offers home décor boards organized around specific color palettes (“Coral,” “Aquamarine”) and patterns (“Stripes,” “Chevrons”). By naming their boards according to these keywords, West Elm helps lead users who are looking for decorating ideas focused on that color to their boards.

8. Turn pins into traffic.

Don’t overlook the opportunity to use Pinterest to drive traffic to your website. If you pin cool imagery and interesting content from your site to your boards, you’re basically seeding Pinterest with a lot of links back to your site.

You can also add the “Pin It” button to your site right next to your other social sharing buttons in order to make it as easy as possible for visitors to add images from your site directly to their boards.

And if something either you or one of your customers pins happens to become incredibly popular? Think of all the potential clicks back to your site!

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PPC & SEO: Two Great Traffic-Building Strategies That Work Great Together

All too often, businesses approach pay-per-click advertising and SEO as mutually exclusive options. After all, why pay for results when you can get them for free? Well, it’s not quite that simple. In today’s digital age, PPC and SEO are both highly effective tactics for finding new potential customers and driving them to your website. Each has its own strengths and serves a specific set of objectives, and more often than not, they are most effective when used in conjunction as part of a coordinated search marketing campaign. Here are four ways that integrating both PPC and SEO into your search marketing efforts can help you capture more traffic than either one alone:

Cover all your bases.

Because achieving a significant improvement in your organic search ranking is a time- and labor-intensive process, it’s best to concentrate your SEO efforts on the few specific keyword sets that fall within the sweet spot where your potential to conquer the category and the potential revenue to be gained as a result are highest. However, that doesn’t mean you have to give up entirely on all the other keyword sets that your prospective customers use daily to search for the products and services you offer. This is where a well-executed PPC campaign can complement your SEO efforts by allowing you to target a broad array of keywords without diluting the focus of your SEO campaign. Furthermore, since it may take months or even years to see a measured improvement in your organic search ranking (depending on the level of competition within your category), targeting the same keyword sets with both your SEO and PPC campaigns can be a very effective strategy, since you’ll likely reap more immediate results from your PPC efforts while you continue laying the foundation of your SEO tactics.

Sharpen your strategy.

Again, because SEO is a long-term proposition by nature, you don’t necessarily get immediate feedback on how well your campaign is performing or whether you are focusing on the keyword sets with the greatest potential to deliver business to your door. With PPC, however, you get clear metrics on the performance of your campaign from day one. As you monitor these results over time, you’ll gain valuable insights into which keyword sets actually drive the most traffic to your site and achieve the most conversions, which can help you shape and refine your SEO efforts to achieve greater results.

Increase your visibility in highly competitive categories.

One of the greatest challenges of SEO is that you ultimately have no control over the result of your efforts. While there are plenty of time-tested tactics you can employ to improve your ranking, there is absolutely no way to guarantee how high you will climb or how long it will take you to achieve an optimal ranking. For some keyword sets where there is heavy competition, the reality is that you may never be able to reach the first page or two of organic search results, especially if you’re in a category where many of your competitors are engaging in underhanded black-hat techniques. When it comes to PPC, however, you are in control, and your primary limitation is your budget. So, for example, if you were trying to conquer the relatively broad keyword set “Charlotte dentist,” it could take you years of persistent dedication to blogging, inbound link building and other legitimate white-hat SEO tactics to land on the first pages of an organic search for those terms – if you ever do. However, if you have enough resources to dedicate to PPC, and you test and refine your campaign on a regular basis, you could find yourself leap-frogging over your competitors in no time.

Capture customers who don’t actually know they’re looking for you.

If you have a product or service that’s new to your market, many of the potential customers you’re trying to reach may not yet have the necessary level of awareness to be actively seeking out that product or service offering by name. Therefore, if you want to capture search traffic in the short term, you’ll need to get creative with PPC and target those who are looking for related services. For example, wellness coaching is a service that’s well known on the West Coast but unfamiliar in the East. If you were a wellness coach looking to break into the market in a city like Charlotte or Atlanta, you could execute a PPC campaign targeting keyword sets for related services such as career counseling or personal training. By doing so, you’ll be able to put your name in front of many people who might be a good candidate for your services, even if they don’t yet know it. Using this approach will help keep your sales pipeline flowing while you continue the foundational efforts necessary to conquer your long-term objectives of building market awareness and establishing a strong organic search ranking.

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