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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Survival of the Fittest: Conquering Responsive Website Design

With the proliferation of smartphones and tablets today, serving the needs of mobile browsers is no longer acondary consideration when it comes to designing (or redesigning) your website. From the ground up, it’s critically important to ensure that you are building a platform that will look beautiful and perform elegantly no matter where or how a user might access it. While you can create a dedicated mobile site or app, responsive design offers a smarter, more flexible, more agile solution that will ultimately deliver a greater long-term return for your investment.

Defining responsive design

Responsive design is the concept of building a website so that the layout of the site adapts and changes according to the resolution of the user’s browser. Using this approach, you can build a single site that will look just as good on a monitor that’s 2048 pixels by 1080 pixels as it will on an iPhone that’s 320 pixels by 480 pixels and all browser sizes in between without the need to build a separate dedicated mobile version of your website. Ethan Marcotte, the forerunner in the field, identifies the three key ingredients of responsive design as follows:

• Fluid grids
• Flexible images
• Media queries

Wait, fluid what? Media what? Let’s take a step back and define these terms in plain English. Every website is developed based on a grid that governs the scale of and relative position of objects (such as navigation menus, images and text) to one another. A fluid grid has the ability to shift and reposition select elements of the site based on certain conditions in order to preserve the properly defined scale for layout, size and spacing. “Flexible images” mean that the images contained within the site’s design should scale in size and shift in position according to the dimensions of the device being used to access the site (larger images on large displays, smaller ones on phone screens, etc.) And media queries? Media queries are used to intelligently detect the size of the browser window and the device being used to access the site and bring back the correct layout for optimal viewing and navigation according to those parameters. But these technical elements only govern the mechanics of the site. What ultimately determines the success of a website that’s built on a responsive design framework is its ability to provide a user interface that’s both visually pleasing and easy to use. After all, responsive design isn't only about resizing stuff to fit within different screen resolutions; it’s about presenting users with a the best possible experience, both in terms of layout and content. With that in mind, here are five key UX/UI factors that must be taken into consideration in order to maintain the integrity of the user interface and protect the quality of the user experience when employing a responsive design framework.

Catering to the needs of visitors

Users accessing your website from different devices have different needs. For example, if someone visits your website from their iPad during their daily commute on the train, they’re only going to dig so deep. For example, while they’ll likely be interested in perusing your latest blog post, they’re not going to be looking for the bios of your board of directors or your privacy policy. You must think about each type of user that will be visiting your site and let their needs and interests dictate the way your site molds and conforms itself to the size of their browser or device.

Intuitiveness

Being innovative is a good thing; being too innovative is not. If, for instance, you decide to change the color of hyperlinks to an indistinguishable shade of black or invent new navigational conventions that perplex your visitors, you’ll send them running in the opposite direction,and the design will be a total failure. The purpose of responsive web design is to empower users to visit your website and browse freely and according to the conventions that are most natural and familiar to them, irrespective of the device they are using.

Touchability

Who can refute the fact that touchscreens are growing more popular with every passing day? Almost all major smartphones and tablets use touchscreen interfaces, and even certain laptops and desktops are being offered with touch functionality. Touchscreens needs to be treated differently. For example, in the world of the touchscreen, there is no such thing as a hover state. If, for example, you have “previous” and “next” buttons that would normally appear only when a mouse rolls over them, those elements would be unavailable to your touchscreen users. For finger-friendly navigation, all elements must be big, bold and obvious. Buttons that require users to mouse over them to get a sense of action must be replaced with style enhancements that draw attention to their “pressability.” It’s also a good idea when catering to touchscreen users to keep the navigation or sub-navigation menu to the right. Why? Because the majority of your users will be right-handed, so the menus will be more conveniently accessible if they’re on the right rather than on the top or left.

Images

While layouts, structural elements and text can be made flexible, images require special attention. Improper alignment of images can ruin even the greatest of designs. Images need to be automatically adjusted to ensure that the website looks awesome in either portrait or landscape mode (remember: most portable devices nowadays can switch instantaneously between views, depending on the user's whims and wishes). Also, when resizing images on the basis of the screen resolution of the device, care needs to be taken so that the images do not lose their quality. If a given image contains the logo or the name of the website, it needs to be given prominence, whereas footer images can take a back seat. The best is to load the images in their original size, unless the viewing area becomes too narrow for the purpose. When that happens, it means the user is on a mobile device, and the image needs to be narrowed in accordance with the screen width. This is the very essence of how smart responsive web design works.

What to show (and what to hide)

With responsive design, we have the ability to rearrange web elements and make every thing fit on the screen, no matter how small it is. However, making every single aspect of a normal web page available to mobile users is not only unnecessary but it can render your site practically unusable on smaller screens. For mobile devices, navigation, content and functionality must be pared down significantly to focus on those features that are most useful to users while on the go. For example, while mobile users frequently comparison shop on their phones, they might not be as likely to actually go through the entire purchase process on their handheld device. Therefore, while product information and pricing is key, e-commerce options should be extremely streamlined.

A Showcase of Responsive Design

To demonstrate just how effective responsive can be, let’s take a look at a few examples of companies that have embraced this new approach in building their sites. In each example, the full version of the site is show first, followed by a version as it appears on a mobile device.

Hicksdesign

Art Equals Work

City Crawlers: Berlin

8Faces

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Keep it Social

Human communication is complex. The words that you use, the tone and volume of your voice as well as your body language and facial expressions all play a role in how your message is received by those that you are communicating with. A poorly chosen phrase or a simple misstep in your body language can steer a conversation into unexpected, and unintended, territory. In an age when so much of our communication has now become digital, the challenges have become even greater. Many of the social cues present in face-to-face interactions are all but impossible to convey. Body language and facial expressions are a non‐factor, and tone is as hard to express as it is easy to misinterpret. As a result, when communicating online, achieving clear understanding of meaning and intention comes down to the words that you use and how you use them.

Social communication

In today’s Digital Age, social media plays a pivotal role in the way companies communicate with their customers. But with the proliferation of social platforms – from standard bearers like Facebook, Twitter, LinkedIn and Google+ to niche sites like Pinterest, Instagram, Flickr and Foursquare – it’s easy to become overwhelmed by the task of managing your brand’s social presence. As a result, it’s tempting to find ways to automate this communication in order to save time and resources. This is exactly the solution that I discussed recently with a vendor who was promoting a platform that would automatically broadcast updates to dozens of social media sites each time a blog post, news release or similar content was published to our website. Rather than spending the time to post this content to each of our social profiles individually, this tool would do it all for us in one quick shot. While this may sound like a dream come true, the problem is that it is a blunt instrument-style approach to communication: every profile gets exactly the same update at the same time. But the reality is that not all social media sites are the same, and neither are the audiences that use them. The way you communicate with connections on LinkedIn should differ from how you do so on Facebook. Similarly, the content you’d publish on photo-sharing sites like Instagram, Pinterest or Flickr is completely different from the updates you’d post to a micro‐blogging site like Twitter. Each site has a syntax specific to that particular social media platform, and ignoring that syntax greatly compromises the effectiveness your communication. You absolutely have something to lose – the opportunity to connect with your audience in a meaningful way. Some might argue that since the posts are automated, you’ve got nothing to lose by trying this approach, but that is incorrect. You absolutely have something to lose – the opportunity to connect with your audience in a meaningful way. And that lost opportunity could cost you dearly if the tailored messages of your competitors reach your potential customers where your robotic, automated communications miss the mark or, even worse, alienate your followers. In the end, while automation will save you time, it does so by taking away your ability to customize your message for specific audiences and platforms.

Be social, be specific

Stepping back from social media for a moment, think about human communication in general. We change the way that we speak and the messages that we send depending on who our audience is. You speak to your friends differently than you speak to your family. You communicate with co‐workers and peers differently than with clients and customers. Effective interpersonal communication requires an understanding of how best to convey your desired message to those you are speaking with. This is not something you could ever automate; it requires a human touch. When it comes to communicating via social media, the medium and the methods may be different, but the basic underlying principal remains the same: to be effective, your message must be tailored to the audience that will receive it. Although the channels themselves may be digital, you can’t eliminate the human element. For an example of how different messages should be tailored to different platforms – and why not every update is right for every social media profile you manage – let’s take a look at how my company shares our news and announcements. When we acquire a new certification or receive recognition that’s worthy of a press release, we promote that accomplishment on sites like Linkedin, Twitter and Facebook where followers naturally expect to see updates about what’s going on with our company. In each case, we use the specific syntax and conventions of that site – such as hashtags on Twitter – to make sure those updates are in a format that audiences are familiar with and can easily find. We do not, however, share content like this on sites like Flickr or dribbble because those platforms are visual in nature, and these particular announcements have no meaningful visual component to them. If instead we are publishing an update about a new website project that we are launching for a client, we will again post that announcement to Linkedin, Twitter and Facebook, but we will also add updates to social media sites that are more visual in nature because, for this update, we do have good image-based content (i.e., a screenshot of the new design) that can accompany the post. Each time we post an update to social media, we consider the nature of the content to decide which sites are most appropriate for those updates. Additionally, each social media post that we make uses the specific syntax of that social media platform.

Forget trying to do it all; focus on doing it right

The concept of automating your social media communication is only an attractive option if you are trying to publish content to so many social media sites that doing so has become unmanageable drain on your time. If this is the case, the solution isn’t to find a way to automate the work; it’s to streamline your activities to include only those sites that are a good fit for your needs. Trying to use every single social media site available to post as much content as possible is not a sound strategy. Why? Because social media platforms are overrun with self-promotional content that is irrelevant to audiences, and users of these platforms are quickly becoming conditioned to tune out this static. Sending automated updates to dozens of sites at once, without ever considering whether or not those updates are appropriate for those sites, just adds to this problem. Is that how you want your company’s news and announcements to be perceived – as part of the useless glut of social media updates? So if taking the time to individually update dozens of social media profiles for your company is not the answer, and automating those updates is also a no‐go, then how can you use social media to effectively communicate your organization’s message? The first step is to speak with a professional team that can help you establish an appropriate social media strategy – one that suits your brand and fits into your overall marketing plan. That team can help you identify which social media sites your audience is actually using and what types of updates you should send to each platform. They can also help you develop a rhythm for social media updates – one that you will be comfortable executing on a regular basis. By identifying the right sites for your organization and understanding how to use those sites effectively, you can capitalize on the power of social media to grow your brand and your business.

Case in point: KLR

KLR is a large accounting and business consulting firm headquartered in New England. In developing their social media strategy, they realized that while their target audience does likely use Facebook (after all, who doesn’t at this point?), they do not use that platform to search for the types of high‐end accounting and business planning services that the firm offers. As a result, promoting their services to that audience on that platform would be inappropriate, and their content would fall on deaf ears. Instead, KLR uses sites like LinkedIn and Twitter, where they have built a network of business connections that recognize them as thought leaders in their industry, to promote their services. Does this mean they turned away from Facebook altogether? Not at all; rather, they determined a more effective use for the platform: communicating with current and prospective employees, including interns whom they were looking to attract to the firm. Recognizing that college-age students would absolutely be using Facebook to research potential employers and positions, KLR decided to use their Facebook profile to showcase their company culture and their standing as a “Best Place to Work” for eight years running. By evaluating different social media sites, which segments of their audience (if any) are using those sites, and how they can most effectively convey their messages across that landscape, KLR has made the most out of the time they spend managing their social media presence.

A final word

Social media can be invaluable in its role as an open line of communication between your company and its customers. However, it can also be one of the surest ways to waste time and resources if you don’t have the right strategy in place. Make sure you’re getting the most from your efforts by contacting a digital marketing specialist to discuss your company’s needs. Together, you’ll be able to define your company’s voice and bring a human touch to your social media strategy.

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