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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8 Keys to a Lead-Catching LinkedIn Company Page

Given the mind-boggling speed of all things social media, it's easy to lose perspective on the passage of time. So try not to choke on your chai latte when you read these words: LinkedIn is now officially a decade old.

Yep. It launched in May of 2003 – when Mark Zuckerberg was still an unknown Harvard freshman. Facebook's predecessor MySpace, now having its midlife crisis and hanging out with rock stars, hadn't even been born. And Twitter was three or four years from hatching.

While logic would suggest that businesses would be the earliest adopters of any platform that’s founded on the concept of virtual networking, LinkedIn has been sluggish in giving brands a seat at the community table.

In the latter half of the 2000s, Facebook and Twitter quickly adapted for business users as marketers chased customers into those exploding communities. LinkedIn, however, didn't even allow companies the ability to post status updates until late 2011.

But in the last year and a half, LinkedIn's evolution has picked up the pace, and newly redesigned Company Pages were rolled out in September 2012, giving brands the ability to market products, recruit new talent and engage more directly with the greater community than ever before.

So if you've passed on LinkedIn to focus on Facebook, Twitter and Pinterest, now is the time to grow your presence on the network built for business. Here's what you need to know to build a killer LinkedIn Company Page that will capture new eyes and convert new leads:

1. Getting started

If you have employees on LinkedIn, you likely have a Company Page already. LinkedIn creates them automatically via data from a third-party service – probably Dun & Bradstreet, though it's difficult to tell. But be warned. If you have one of these robo-profiles, it's little more than a short description, some contact details and a link to your website, so you'd better take control.

The first step is to establish an admin (or several) with editing privileges. These individuals need to meet LinkedIn's basic requirements, which in summary are:

• They must be a current employee.
• They need a company email listed on their LinkedIn profile.
• The company's email domain must be unique (e.g., jdoe@example.com), Sorry, Gmail won't work.
• They must have filled out their personal profile to a reasonable extent.
• They must have some connections.

If for some reason, you don't have a Company Page, the setup process is pretty straightforward after meeting the above admin requirements. Here's how according to LinkedIn.

Click Companies near the top of your home page.

Click the Add a Company link in the upper right area of the page.

Enter your company's official name and your work email address.

Click Continue and enter your company information.

If the work email address you provide is an unconfirmed email address on your LinkedIn account, a message will be sent to that address. Follow the instructions in the message to confirm your email address and then use the instructions above to add the Company Page.

A red error message may appear if you have problems adding a Company Page.

A preview of your completed Company Page is not available. When you publish the page, it is live on our website.

2. Look like you mean business

Once you've moved in, it's time to hang your open-for-business shingle on the door.

First, upload a company logo. For now, logo size is severely limited and the display quality is poor. It seems that LinkedIn is downsampling logos – removing pixels, and therefore sharpness – to save file space and speed page loads. So focus on keeping logos simple and legible at small scale. For example, compare the readability of the first two automotive logos below with the latter two.

Next to your logo, the banner image on your home page is your primary way to distinguish your brand visually. It's an at-a-glance way to say something about your company, and that expression can take any form you like.

Apple's banner conveys in both layout and message the brand's commitment to minimalist, functional design.

Nike, with its global corporate footprint, had a lot of ground to cover to represent its extensive brand portfolio in such a small space.

MAQS Law Firm is described as "a modern law firm combining professionalism and tradition with creativity and efficiency." Their logo/banner combination definitely says "creativity and efficiency" with a look that's more design firm that law firm.

3. Give 'em something to talk about

Like Facebook, Twitter and most other social sites, the front-and-center feature of your Company Page is an update feed.

It's worth noting, however, that its functionality is little more than broadcast medium, like the news page of your website. As a company, you won't be able to reply to comments or "like" another LinkedIn user's updates. That kind of give-and-take engagement is reserved for real people, like your employees.

So with this limitation in mind, focus your updates on topics that seed conversations and get shared across the LinkedIn community. Post news about your organization or links, with commentary, to interesting content around the Web.

Utilize colleagues to engage further with followers and commenters. Employees are also a great way to syndicate your updates as they share content with personal networks.

Unfortunately, creating engagement this way is like attending a networking event with your hands tied behind your back – it's kinda tricky and what you say had better be really good.

4. Promote your products and services

Nowhere do Company Pages offer more flexibility or marketing power as in the Products & Services tab.

A dozen parameters are available for describing and promoting each product or service in your portfolio. There are basics like description, title and links as well as the ability to identify key contacts, a sidebar area for special promotions and one for YouTube video embeds.

In addition, a header image slider drives visitor traffic to specific services listed below or to external-pointing links, back to your website for example. (This is a great way to build inbound links for you SEO-ers out there.)

To get started, provide a short description of each product or service along with a thumbnail image and link to your website. Believe it or not, this will put you ahead of many of the organizations using LinkedIn Company Pages today.

Once you've got the basics in place, slider images, videos and promotions can turn your Products & Services page into a compelling sales lead tool.

5. Audience segmentation

LinkedIn has built into the Products & Services tab powerful audience segmentation filters that allow you tailor your Products tab to different types of visitors. These filtering options are mapped to data from member profiles, such as company size, job function, industry, seniority level and geography.

6. Promote your groups

If your organization manages one or more LinkedIn groups, be sure to promote them on your Company Page.

If not, groups are a great way to build out your corporate LinkedIn presence and drive engagement with customers or those in your industry. When creating a group, try to focus on a topic or industry niche that lets you position your brand as an authority or that serves users in a way that’s unique to your brand.

For example, a private user group exclusive to your customers would let you gather insights for product development, provide another customer service channel and directly address criticism within a relatively closed environment and in front of your other customers.

Whatever group you run or may eventually run, be sure to let people know about it on your Company Page.

7. Analytics

Built into Company Pages are some pretty handy analytics tools, which LinkedIn refers to as "Insights."

Accessed via the blue "Tools" button in the header of your Company Page, Insights provide a straightforward view into how users are engaging with your brand, including:

• Page views broken down by Company Page tabs
• Update engagement by impressions, clicks, likes and shares
• Visitor demographics by seniority level, industry, job function, geographic region and company size
• Follower identification and demographics, broken down by seniority level, industry, job function, geographic region and company size

If you're familiar with professional analytics tools, LinkedIn's Insights will seem pretty light. But because they are built on user data behind LinkedIn's membership wall, Insights provide detail about your company's LinkedIn engagement that other analytics suites cannot. Ignore Insights at your own peril.

8. A word on Career Pages

If you see a Careers tab on an organization's Company Page, it's because that business is using LinkedIn's paid Talent Solutions services.

Talent Solutions offer powerful recruiting tools that, like audience segmentation, utilize LinkedIn's vast user data to drive more qualified candidates into HR departments. More than half of LinkedIn's revenues come from Talent Solutions, so it makes sense that the social giant would invest heavily in this tool.

If your organization is paying for Talent Solutions, make sure your careers tab keeps those recruiting leads excited about the possibility of working for you. The features are too extensive to cover here, but that's okay. For the price tag of Talent Solutions, you should have access to someone at LinkedIn who can help get you started.

For some Careers Page inspiration, look to companies that are widely known as great places to work. Here are a few to get you started:

Starbucks Careers Page

Zappos Careers Page

Google Careers Page

Inspiration to go

Now that you know what goes into a killer Company Page on LinkedIn, all that's left is to go build your own.

We've avoided specific step-by-step instructions in this article because they are subject to change as features are added or updated. But don't worry. LinkedIn provides guidance notes within the editing areas of Company Pages as well as an extensive help center with setup guides, FAQs, user forums and more.

Still, sometimes there's nothing like seeing it all in action, so I'll leave you with this 90-second snapshot of LinkedIn Company Pages. And don't forget to follow Fame Foundry on LinkedIn for additional digital marketing insights and news.

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Naughty or Nice?

If you’re guilty of committing these marketing no-nos, you may well be receiving a lump of coal from your customers this year.

Making constant demands of your customers

All too often, marketers act like petulant children, making incessant demands of their customers without providing any real service or value in return. “Buy now!” “Call today!” “Read this email!” “Share this on Facebook!” All your customers hear is, “Me! Me! Me! Give me what I want right now!” And what’s their reaction to such self-interested yapping? At best, it's a collective yawn; at worst, a complete tune-out. So what should you do instead? Fame Foundry friend Gary Vaynerchuk suggests hitting your customers in the face. Wait…let us explain. You see, about once a week, Vaynerchuk poses this question on Twitter to his one million followers: “Is there anything I can do for you?” And he does mean it literally. For example, when one of his followers in Canada wrote “Just ran out of Tabasco,” Vaynerchuk overnighted eight bottles. Image via Warren Weeks When another in Minnesota responded with a request for a cheeseburger, he opened the door the next day to find a delicious cheeseburger hand-delivered from one of his favorite restaurants. So what’s in all of this concierge-like servitude for Gary? It’s part of an approach that the always-colorful Vaynerchuk calls “jab, jab, jab, right hook” (which is also the name of his latest book) According to Vaynerchuk, a jab is anything of value — a joke, an idea, an introduction, and yes, even a meal. After he delivers a few jabs, he can then justifiably hit you with a right hook: a request to buy something. In other words, “jab, jab, jab, right hook” means “give, give, give, ask.” Note the emphasis on giving. You must give first and give generously before you ever ask for anything in return from your customers and prospects. As he explains in the book, “Your story needs to move people’s spirits and build their goodwill, so that when you finally do ask them to buy from you, they feel like you’ve given them so much it would be almost rude to refuse.” It’s a philosophy as simple as it is effective: put your customers first, and they’ll return the favor. As Vaynerchuk says, “If you’re in business, first and foremost, you have to be nice. Show your customers that you care.”

Insulting our intelligence

It’s 2013. We’ve all seen more than our fair share of advertising. We all have the Internet. So stop insulting our intelligence with your “candid interviews” and “medical experts.” After all, how many mornings have you found yourself leisurely chatting about the joys of breakfast cereal with an unseen interviewer? And, Post Foods, you really cannot be serious with this! Nobody’s buying it, and nobody wants to buy products from companies that don’t respect our ability to discern fact from fiction. If you want to engage with us, authenticity is the only way to get (and hold) our attention.

Playing to dirty motivations

Image via Amusing Planet This one is something of a corollary to insulting our intelligence. We all know that sex sells. We all want to be thinner, richer and more attractive. But we’re also savvy enough to recognize when we’re being manipulated by marketers. Take this ad for the Dodge Big Finish Event, which ends with a keeping-up-with-the-Jonses challenge: “Let’s see the neighbors compete with that!” Is that really the best selling point you have, Dodge? Similarly, this spot implies that the secret to unlocking popularity, confidence, masculinity and sex appeal is the keys to an Audi. If you really want me to drop upwards of $80k on a car, you’re going to need to do better than that. Educate your customers. Show them how your products and services will make their lives better, easier, more efficient or even more fun in a real way. Not in an aspirational, wink-wink, don’t-we-all-want-to-be-Kardashians way.

Committing a blatant money-grabbing maneuver

Contrary to the unforgettable line uttered by the infamous Gordon Gekko in the 1987 film Wall Street, greed is not good. While customers don’t begrudge any company the need to turn a profit, when they smell a blatant money-grabbing maneuver, they’ll quickly blow the whistle. For several years now, major retailers have been attempting to get a jump on Black Friday spending by opening on Thanksgiving day – a move that has been viewed by many as a morally questionable practice of allowing consumerism to encroach on one of our nation’s most revered holidays. This year, however, Kmart took a giant leap over the line of good judgment when they announced that they would open at 6 a.m. on Thanksgiving day and remain open for 41 consecutive hours. The public backlash was swift and sharp. Within hours of the announcement, hundreds of Kmart customers took to social media and threatened to boycott the store if it didn't reverse its decision so that its employees could spend Thanksgiving with their families. People called the decision "heartless," "greedy," "shameful" and "disgusting." Image via The Huffington Post "Shame on you, Kmart. I will never set foot in any of your stores again," wrote one now former customer on the company’s Facebook page. "I have family members that work in retail, and because of greedy retailers like you will not be able to spend the day with us." Another added: “Maybe Kmart should have shown they are thankful for their loyal employees and let them be with their families on Thanksgiving. I realize you are a corporation, and your goal is to make money...but sometimes you need to show and prove that people are important, too." So what lessons can you take away from Kmart’s Thanksgiving PR travesty? In your quest to own your market, always proceed with caution. Today’s consumers are not only smart but selective; they shop with their heads and their hearts. They want to deal with companies that demonstrate their dedication to serving the best interests of both their customers and their employees. They won’t trust their business to those whose only master is the all-mighty dollar, so make sure you always err on the side of ethics and in everything that you do, prove that it’s you who exists to serve the needs of your customers, not the other way around.

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