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.

---

Check Your Ego at the Door: Embracing User-Centered Website Design

The creation of a new website is a process filled with important decisions. As the owner, CEO, or decision maker at the organization for which the new site is being designed and developed, you will be asked for your feedback or approval a number of times along the way – but what are you using as the basis for that feedback? Too often decisions are made during a website’s creation that are based on the preferences of the site’s “owners” and not on the needs of the people who will actually use the website. This is the wrong way to go about making decisions for a project, because the reality is that your website should not be designed for you, it should be designed for your audience. In this article, we will take a look at how you can shape the decisions you make on a website’s creation, or its subsequent upkeep, to help you meet the needs of your website’s most important audience - the clients and customers that will bring you business and ultimately make your site a success.

Making design decisions

No one wants to have a website they don’t like the look of, but the fact of the matter is that design decisions are not made for aesthetic reasons only. Visual choices for a project should be made by taking the needs of your audience, and your business’s goals for the website, into account. Many people assume that their website should be a reflection of their personal tastes or sense of style. That is not the case. It’s sometimes hard to hear, but your preferences of what looks good and what doesn’t should be secondary to what is appropriate for your site’s users. You certainly want something that you are proud of, but when reviewing design options, but sure to consistently ask yourself, “what would my audience think?” Or better yet, ask some of your actual users for their feedback and use that data in your decision making process. In the end, the goal is to come up with a design that you love and which properly represents your company, but will also meet the needs of your audience. When in doubt, however, defer to your users’ needs and remember that old saying – “the customer is always right.”

Give users what they want

While a great design is certainly important, the reality is that your customers are not coming to your website to be “wowed” by its visual design - they are coming to your site for its content. If you want your site to succeed, it has to offer the content your audience is looking for and make it easy for them to find it. When considering what content should be presented on the website, and also where it should be presented, you should once again ask yourself what is right for your audience. You may be very proud of the awards your company has won or feel that the “Message from the President” is insightful, but be truthful - is that what your site visitors are coming to find? If not, then does it make sense to present that content on your homepage or someplace else with similar prominence? Oftentimes website content is prioritized based on company egos or a sense of what they want to see, rather than what users are looking for. We are proud of our accomplishments, so we want them front and center for all to see. Our President runs the company, so his words must be important, right? While these may both be true, if your site visitors are not looking for this content, and yet you place them in a spot of prominence instead of content that your audience actually wants, then you are putting your needs or opinions ahead of theirs. Leave the ego aside when making content decisions for the website. Those awards announcements and presidential messages can certainly have a place on the site, just make sure it’s an appropriate place that doesn’t interfere with what your users come to the website to see.

I want my website to do something cool!

Website owners love pizzazz. We see another site that does something “cool” and we want something similar on our own site. Unfortunately, we rarely ever stop to consider whether that awesome animation or cool feature is actually effective or if it helps meet the goals of your site. When considering adding something you think is “awesome”, you should once again (I imagine you are starting to see a pattern here) ask yourself how that addition will help meet your business’s goals or your users’ needs. Does it help at all, or is it just something cool to add? Almost always, it is the later – nothing more than some “wow factor.” That alone would not be a bad thing, but too often, the “wow” that is added actually makes it harder for our users to do what they came to the website for in the first place. Take animated introductions or “welcome” videos on websites, features that are one of the more popular requests made to add some wow to a site. Would you ever start a business meeting with a song and dance number, trying to entertain your audience before the meeting begins? Probably not – yet that is exactly what you are doing when to you add that animated blast of pizzazz to your website. It is all show and no substance and your site visitors will see right through it – that is if they stick around long enough to even see it. Oftentimes, overblown effects such as unnecessary animation, videos, or music files that play when the site is loaded do the opposite of “wowing” your audience. Instead, those effects often drive them away. If you surprise site visitors with an audio track or a video that autoplays on page load, a likely response is to quickly click the ‘BACK’ button – taking the traffic you worked hard to get away from your website and your business. Your customers, and potential customers, come to your site for a reason. Anything that gets in the way of what they are looking to accomplish lowers the chance that they will continue deeper into your site to complete their task. When adding wow factor to make your site more memorable, always be sure that whatever you add is not done at the expense of your site’s usability. Furthermore, ask yourself if you really even need it, because a site that welcomes visitors and easily allows them to find the information they need to complete the task they came to complete is certainly doing “something cool” – it is meeting your users’ need and driving business results for you. Let’s take a minute to look at a few examples of wow factor added in appropriate, and inappropriate, ways so we can compare the two.

Video – the right way vs. the wrong way

We’ve already mentioned adding “welcome” videos to a website. Often, this video takes the form of a commercial or advertisement that a company ran on television. They receive a web- ready copy of the spot and, wanting to make the investment they made in that video stretch as far as possible, they decide to add it to the website. But for what purpose? If the goal of the initial commercial was to introduce viewers to your company and get them to the website, then why put it on the website to show users who are already there? The website for cosmetic dentist Gary D. Light & Associates starts with a video that pops up on the site and autoplays, distracting users from the rest of the site’s information. Even worse, if you’re in Internet Explorer – which many of your users will be, the video opens again on every single page you visit, even though you may have already closed it two or three times. That is a recipe for annoying your audience. The website for car dealership Tasca also begins with a video that autoplays, showing one of the company’s commercials. Visit the site for the first time and the video overtakes the screen with a commercial. It’s a bit jarring if you are not expecting it the video and audio to begin blaring out of your speakers. Overall, this is a quality website with lots of useful features for someone shopping for a vehicle. Does that opening video help in that search or does it drive you away when it pops up unexpectedly? A better way to present video is what you will see at the United Way of Rhode Island. Their annual “campaign video” is one of the feature pieces of content for the website, and it is presented directly on the homepage in the large billboard area. Rather than autoplay the video, however, a site visitor has to request to see it by clicking the large red “Watch” button. In this way, the video is made readily available to those who want to see it, without interrupting the user experience of those who do not.

The three questions

When new visitors come to your website, they will ask themselves a few questions, namely:

1. Who is this company?
2. What do they do?
3. What do I do next?

Not only do users ask these questions, they do it quickly, in as little as 4-8 seconds once they visit the page. To successfully meet your users’ needs, you need to make sure the content you place in front of them helps answer these questions and directs their experience. The website for Bradford Soapworks is a nice looking site with quality information throughout, but the homepage opens with a letter from the company chairman. There is no mention of what the company actually does, no images of their products and no clear calls-to-action to answer the question of “what do I do next?” That message from the Chairman, however important to the company, does not seem to be in line with the needs of site visitors. In contrast, the website for The Savannah Soap Company does a great job of answering these 3 basic questions and the eye-catching visuals, presented in the site’s large billboard area, also include calls-to-action to “start learning” or to “learn more”, giving visitors a clear direction as to what to do next. When presenting content on your website, consider the answers to the 3 visitor questions outlined above and consistently ask yourself whether the placement of the content you are using is appropriate to meet your visitors’ needs and answer those questions.

Talk to your audience

If you truly want a site that will be a success, continually ask yourself what your customers would want as you make decisions on the site – both during initial design and development phases and again later on during the site’s maintenance. Or, as I mentioned earlier, take it a step further and don’t only ask yourself what your users would want – actually ask them! Whenever appropriate, ask real customers how you are doing on your website. Did the decisions you made along the way help them in the ways you intended? What else could you do to make their experience better? You will be amazed at the quality feedback you can get simply by asking a few questions. Now, this doesn’t mean you should simply put a “tell us how we are doing” form on your site and call it a day. The most likely submissions you will get through those forms are spam-bots or angry visitors who are more likely to fill out such a form when they are upset. While you certainly want to know if someone is upset with the site, this feedback form alone will give you a very skewed picture of how you are doing. Soliciting feedback from your site means truly interacting with your audience. Pick up the phone and call some customers to ask them your questions – or work with a firm that specializes in user testing and see how the site holds up in those tests. However you gather the data, the best way to meet your users’ needs is to learn what those needs are and the best way to learn what they are is to speak to your audience.

Love your website

A website is a reflection of our business, so it makes sense that we want it to also be a reflection of us – our likes and preferences. We want our website to be “ours” - but in the end, while the website itself may be yours, the experience it creates belongs to your audience. If you truly want to make the site a success, start by making sure that the experience it creates - from the design visuals, to the content presented, to the wow factor you decide to (or not to) add, is a wonderful experience for your users. Meet their needs and they will make your site a success. I don’t know about you, but to me, a site that does that is about as “cool” as it gets.

---

Check it Out: 10 Ways to Stop Shopping Cart Abandonment

It’s not over until the cash register rings

A customer has found your site, browsed your store and added several items to their cart. You’re home free, right? No so fast...until they’ve confirmed their purchase, you’re still at zero, and you still have plenty of opportunities to derail the sale. Fatal flaws in your checkout process can not only cost you the potential sale at hand but also drastically decrease the likelihood of that customer ever returning to your site to buy from you in the future. If you’re experiencing a high occurrence of shopping cart abandonment, here are 10 ways to fix the obstacles and annoyances that are driving away customers and crippling your conversion rates:

1. Eliminate all chance of unpleasant surprises.

Make sure customers have all the information they need upfront to make a confident buying decision. This includes confirming the availability of the item; calculating promotional pricing or discounts; mapping out shipping options, costs and timetables; specifying whether or not sales tax applies to the purchase and clearly defining your return policy. If a customer reaches checkout only to discover that the particular item they wanted is out of stock, ineligible for an advertised discount or costs more to ship than they are willing to pay, odds are good that will be the last you see of them.

2. Display relevant details in the cart.

The shopping cart itself should provide a clear overview of the pending purchase at a glance so that customers do not have to navigate away from the checkout process to confirm the details of their order. Keep in mind that by this point in the process, your shopper may well have clicked to and from the cart numerous times as they selected multiple items, browsed various categories of products or compared one item to another, and they may be fuzzy on the specifics of everything they’ve chosen. Without the benefit of being able to glance down into a physical shopping cart to review their selections, they need reassurance that the package that lands on their doorstep will contain exactly what they intend, so be sure to provide thumbnail images, descriptions, quantities, sizes, colors, prices, availability and applicable discounts for each product in the cart.

3. Allow changes within the cart.

Every time your customer navigates away from the cart, you’re running the risk of losing them, so make sure that they can edit details such as quantity, size and color without having to locate the product page a second time.

4. Offer multiple payment options.

If you’re conducting e-commerce business online, your site should be tied in to a secure payment gateway. However, offering the option to complete the transaction through a third-party processor like PayPal or Google Checkout can put some customers – especially those who may not shop online often – at ease because they don’t have to release their credit card number and billing information directly to you. Conversely, PayPal and Google Checkout shouldn’t be the only options you provide. If a customer does not already have an account established with one of these payment processors, they may not want to create one just to do business with you.

5. Don’t require customers to create an account.

Without a doubt, it’s awfully tempting to require customers to create an account to complete their purchase because it will allow you to collect valuable data from them for future sales analysis and marketing. However, given the sheer number of social media and e-commerce sites that your customers likely interact with, they may very well have account creation fatigue. They may not want to establish yet another user account and password just to make a purchase, especially if they don’t necessarily anticipate ordering from you again in the near future. The best approach is to offer two options: checking out as a guest, which will expedite the process, or creating an account, which offers conveniences appealing to those who do shop with you often, such as eliminating the need to re-enter their shipping and billing information every time they make a purchase and allowing them to check on the status of an order. The key is to let your customer make the choice that suits them best; don’t force the issue and lose a sure sale in pursuit of future marketing opportunities.

6. Simplify and streamline.

Online shoppers are notoriously impatient, so don’t ask for more information than you need to complete the transaction, and don’t break the checkout process into more steps than necessary. Make sure as well to display a breadcrumb trail that indicates how the checkout process will progress. If a customer can see at step one that they only have three steps left to complete their order, they won’t get impatient or frustrated as they move from one screen to the next, not knowing what’s coming next or when the process will be done.

7. Cater to the on-the-go shopper.

When evaluating your checkout process, don’t forget about mobile users. A customer may be standing in the bricks-and-mortar store of your competitor and comparison shopping on their phone. If you offer the better price, don’t you want to make it as easy as possible for this customer – who’s clearly ready to buy – to order from you on the spot instead? This is another reason why it’s critical to streamline the steps within your checkout process as much as possible as well as to ensure that form fields can be easily completed on touch-based devices. Walk through your checkout process on as many different types of mobile devices and platforms as you can get your hands on, and don’t waste any time in eliminating any obstacles or road blocks that you discover.

8. Don’t give up too soon.

In the age of multitasking, sometimes a customer will simply get distracted before they have a chance to complete their transaction. The phone rings, the baby wakes up from her nap, the computer freezes, the pizza delivery guy arrives, etc. Or sometimes, they just need some extra time to make a decision while they continue to do research, get opinions from friends and the like. While you can’t do anything to mitigate this type of offline interference, you still have a chance to save the sale. A persistent shopping cart retains the items your customer has selected for a set period of time, whether that’s a few hours or a few days. When your customer has a chance to return to their computer, they can pick up exactly where they left off rather than facing the hassle of tracking down each item again, even if they had closed their browser window.

9. Never underestimate the importance of the human element.

If your customer has a question as they are progressing through checkout, the easiest, most reliable way to ensure they don’t lose momentum is to display your customer service phone number prominently at every step along the way. A simple question should have a simple resolution, and usually that is best provided in real time by a human being. If you leave your customers to their own devices to find the answers they need, you’re running the risk of allowing them to become distracted or frustrated and losing all interest in completing the order.

10. Reinforce trust at every turn.

As with all elements of doing business online, trust is key. In the absence of face-to-face human contact, you must rely on your website to build trust for you if you want customers to choose to spend their hard-earned dollars with you rather than with your competitor. Some elements of trust-building in e-commerce are obvious. Do you display your SSL certificate to reinforce security? Do you feature customer testimonials or reviews to boost confidence in your reputation? Is it easy to locate your company’s phone number, physical address and return policies so they feel assured that they can resolve a problem or obtain a refund without hassle? Other elements are less tangible. Does your site have a polished, refined look and feel overall, or does it look dated or sketchy? Do you offer value-added content like how-to videos or blog articles that convey to your customers that they are doing business with experts who are knowledgeable and passionate about their products? Thanks to the proliferation of Internet scam artists, the burden of earning trust with online shoppers is steep, but it is surmountable with careful attention to detail.

---