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.

SPF for Your Website: Three Simple Steps to Protect Your Online Presence

As the days get longer and the mercury rises, we’re reminded yet again of the importance of remaining vigilant when it comes to applying sunscreen to protect ourselves from summer’s damaging rays. It’s a simple yet necessary precaution that if neglected has both short-term consequences – the painful agony of sunburn – and long-term ramifications – skin damage and increased risk of skin cancer. The same holds true for our websites. If we are not proactive in taking the necessary precautions to keep our online presence safe, problems will inevitably arise. Here are three simple measures you can take to apply SPF to your website that will safeguard the integrity not only of your brand’s online presence but its reputation as well:

(S)ecure your site against SQL injections.

Websites that feature data-driven applications can be vulnerable to attacks known as SQL injections, whereby malicious code is added to an entry field, then run and executed. These attacks exploit security vulnerabilities in problematic code, attacking your site’s database and performing any number of actions, from adding unapproved content to your public-facing site to allowing the hacker to download your entire database. This is a prime example of why rigorous testing is absolutely critical prior to launch. If your site is already up and running, consult with your web team to make sure that it has undergone thorough testing and is protected against such hacks. If you want to take additional precautionary measures, there are also security companies that specialize in detecting these types of website and database vulnerabilities, and they can provide you with a security audit.

(P)rotect your domain name.

It’s common sense that you must pay to acquire the domain name where your business will reside online. However, it’s important to remember that you have to continue to pay in order to retain the rights to use that domain name. Essentially, when you purchase your domain name, you’re not buying it outright. Rather, you’re renting that name for a specified period of time. Most registrars (Network Solutions, GoDaddy, Register.com, etc.) allow you to secure a name for anywhere from 12 months to 99 years. If you allow your registration to lapse, however, the domain name becomes available for purchase again and is open to the public for anyone to acquire. Bear in mind that there are actually companies that profit handsomely from business owners who neglect their domain registrations. They monitor domains that are nearing expiration, taking ownership of them the moment they become available. If you have the misfortune of having your domain acquired by one of these companies, usually you can negotiate having ownership transferred back to you, but it will cost you dearly. Unfortunately, while this is a shady practice, it is not illegal. If you allow your domain name to expire, it is fair game for anyone to register it – including these types of companies. Before your domain name expires, your registrar will likely send you many notices prompting you to renew. I start getting domain name renewal notices six months or more before the scheduled expiration date, and as that date gets closer, the notices start coming more and more frequently. Still, despite this barrage of email notifications, there are still many companies that are unaware that their expiration date is approaching, and they either lose their domain name altogether or are forced to pay a king’s ransom to get it back. Often when this situation occurs, it is because the person who initially completed the registration process for the domain name is no longer with the company, and therefore the email address they used to register the name is no longer valid, so the multitude of email notices go unreceived. The company innocently thinks they are protected until one day they stop receiving emails (yes, your email is tied into your domain name), or a customer mentions that they tried to go to the site, and it was simply gone. Even though there is a grace period after a domain has lapsed that allows you to reclaim your ownership before it becomes open to the public, the lapse isn’t always discovered in time to take advantage of this safety net. To prevent this, it is critically important to keep the contact information for your domain registration up to date. Either contact your registrar directly or speak with your web team to make sure you know when each of the domain names you own needs to be renewed, and double-check to ensure that the contact information for your account is valid.

(F)ortify your forms.

Web forms are a staple of doing business online. In fact, rare is the site that doesn’t include a form of some sort that allows the user to input information to be transmitted to the site’s owner, whether its purpose is to make a contact inquiry, sign up for a mailing list, complete a purchase, apply for employment, etc. As anyone who has a form on their site can attest, however, not all submissions received via these forms are legitimate. This is called robot spam, which is created by spammers who write programs that send out spambots to indiscriminately fill out any and all different types of forms on the Web, looking for entryways to expose a site’s security vulnerabilities (see SQL injections above). If you find your inbox filling up with indecipherable junk submissions, it’s these bots who are to blame. To combat these spambots, you can install a CAPTCHA system on your form, which generates an image with a random combination of numbers and letters that the user must enter in order to submit the form. The spambots can't interpret these CAPTCHA images, so therefore they can’t complete the process of sending the form. While there is legitimate debate as to whether or not CAPTCHA is the most effective way to prevent bogus submissions, it still remains the most popular solution for web form security. However, the reason it’s important to block these bots goes beyond eliminating the annoyance of a cluttered inbox. A few months ago, my company decided to remove the CAPTCHA requirement from our contact form. We knew we would get a flood of spam submissions, but we decided we could deal with a little extra hassle on our end in exchange for reducing the inconvenience to legitimate users of having to interpret those squiggly letters in order to simply get in touch with us. As expected, the amount of spam we received increased dramatically, but it was still manageable. Then, all of a sudden, we stopped receiving any submissions at all. We also began seeing some of our emails to other people bounce back. What we discovered was that our web domain (which is where our emails originate from) had been blacklisted as spam by Microsoft (which is what powers our email platform). Apparently, all the bogus submissions from our website (which resides on our domain) to our email caused Microsoft to identify us as spammers. This is because our form submissions came from an email address associated with our own domain name (many web forms are configured this way). Obviously, we were not the ones generating the spam, but this strange series of coincidences conspired to get us blacklisted! Fortunately, it was an easy process to get our domain removed from the blacklist, and we quickly re-installed the CAPTCHA system on our contact form, but we certainly learned an important lesson about security and spambots along the way. If you allow those bogus entries to make it through, there is a risk that you, too, could find yourself blacklisted and unable to send email to some of your most important contacts.

Seize the day and stay safe.

Since summer is vacation season for many of us, business tends to slow down slightly as our clients and colleagues enjoy much-deserved time off. That makes this the perfect time to seize the opportunity to apply these S-P-F practices today to ensure that your online presence is well protected all year long.

Bad Romance: 10 Phrases Never to Say to Your Customers

Your brand’s image isn’t defined by your logo. Your message isn’t controlled by your latest carefully crafted ad campaign. Your reputation isn’t wrapped up in your website.

In today’s age of social media, each and every one of your customers holds a megaphone, and he who holds the megaphone controls the message.

As a result, every single interaction your customers have with your brand shapes not only the way they perceive your company and its values but how they share and spread that perception to others in their circles.

So in this world where every word-of-mouth message has the potential to be amplified hundreds or even thousands of times over, what can you do to protect your brand’s good name?

Of course, when times are good and everyone’s happy, it’s not too hard to provide a positive experience. But what about when things go wrong? What do you do when you’ve got a disappointed, frustrated, irate or even irrational customer on your hands? That’s when your problem-solving savvy is really put to the test.

In situations like these, it’s critical to ensure that every employee at every level of your company is thoroughly trained in tactics for transforming a conflict or complaint into a positive experience.

Here are 10 phrases you must absolutely, positively never ever say to a customer when your brand’s reputation is on the line:

That's our policy...

You care about your policies, but you know who doesn’t? Your customers. All they care about is getting their problem fixed.

Using policy as the justification for why you can't achieve this goal will fall flat every time. Of course you can’t let your customer walk all over you and it is sometimes necessary to draw a line, but you have little to risk by finding ways to work within those policies to offer an innovative solution.

There's nothing I can do...

This statement will make any customer’s blood boil. When you say “There’s nothing I can do,” what they hear is “You and your business don’t matter to us.” You might as well throw in the towel and walk away.

There's always something that can be done, even if it requires a little creativity and compromise. Make sure to give your employees leeway to improvise when necessary. A minor concession costs nothing compared to the impact of an angry customer blasting you on Twitter.

What you need to do is...

When customers call, they’re looking to you to fix their problem, not to be told how to fix it themselves.

Of course, there are some situations where it’s appropriate and even necessary to walk a customer through the steps required to solve a problem. Just be sure to choose your words carefully. The difference between saying “What you need to do” and “Let’s try this” is conveying the sense that you’re on their side and that you’re committed to working together hand-in-hand until their issue has been resolved.

I'm new at this...

Again, nobody cares. You might as well tell a customer that they should hang up, call back and hope to have better luck in reaching someone more competent.

Rather than exposing your weakness, simply bring in someone with more expertise and experience to help navigate this sticky situation. Your customer will appreciate the hands-on team approach, and you’ll benefit from learning from a pro.

No...

Ouch! Never, ever drop the "no" bomb. If you don’t make a concerted effort to solve the problem at hand, you can kiss that customer – and every other existing or prospective customer who will listen to their tale of woe – goodbye.

I don't believe...

I'm not sure...

We don't...

Take your pick, but these are all thinly veiled ways of saying “no,” which we’ve already established is the not the right answer. Save your breath and spend your time and energy looking for ways to be helpful and find viable alternatives.

There’s no one else here you can talk to...

Unless you are literally a one-man operation, customers know you're lying when they hear this statement. There's always someone higher up that can step in.

Telling someone there's nobody else they can talk to is tantamount to saying, "You’re not worth our time." This isn’t going to diffuse their anger and will likely send them packing, irate enough to leave horrible reviews all over the Web.

I don't know how to help you with that...

This phrase is problematic even when the best of intentions are meant by the employee offering support.

Sometimes a customer will ask tough questions. Instead of saying you don't know what to do, take a proactive role in connecting them with the correct resource within the company who can handle their problem.

That's not my job...

Wrong. No matter who you are or what your job title is, keeping your customers happy is your number one responsibility. Just do it.

I hate my job...

This company sucks...

These types of statements tend to surface when both the customer and the employee are in a state of emotional upset. It’s the equivalent of telling a customer that they're not going to find any help here.

Bad-mouthing the company is never the right answer, no matter what the situation. It can do immeasurable damage, and in reality, even the angriest customer doesn’t really want commiseration.

They don't care about your opinion. They’ve taken the time to give you a chance to make it right, and they want a solution.

If you find yourself reaching a breaking point where you feel the need to make statements like this, take a step back and clear your head. You may not feel that you’re getting the support you need from your company, but customers don't need to hear this. If necessary, ask if you can put them on hold momentarily while you "search for the solution." Then take some deep breaths, get help and do whatever you need to do to rejoin the conversation with a positive attitude.

{Nothing...}

Silence is the absolute worst thing a customer can hear from you.

If it’s necessary to put a caller on hold, don't keep them waiting long. Even better, get their information and tell them you’ll call them back (and then make sure you do – promptly!).

If they’re asking tough questions or getting frustrated, responding with silence will only add fuel to their fire. But that doesn’t mean you must have the right answer on the tip of your tongue, either.

Starting with genuine empathy is a great way to diffuse the situation. Even a simple, "Yes, sir, I can see why you are upset. Let me see what I can do to help you out," will buy you some time to organize your thoughts and collect your composure so that you can confidently work toward a mutually agreeable solution.