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.

One Year Later

Today, there is freedom in marketing. No longer is the loudspeaker of the media controlled by a select few. As a result, so much more can be gained than ever before, all with fewer resources and less risk. The playing field has been officially leveled—and not a minute too soon.

With those words, we launched the first Fame Foundry Magazine and began leading a revolution.

Recognizing that the world of marketing is riddled with misinformation and con artists, we set out on a mission to cut through the static and get to the truth of the challenges of growing business today.

Each month we bring you articles that cut through the muck of jargon, myths, speculation and the outmoded ways of old marketing to give you the clarity and perspective you need to thrive in today's marketplace. As we mark our first anniversary, we take a look back at the fundamentals of new marketing that we’ve established over the past year.

The end of marketing as we knew it

Prior to the advent of the Digital Age, our culture was based on a handful of media. Television, print and radio were the anchors of mass information exchange and business promotion.

As a result, if you owned a business or were charged with growing a company, you were shackled to promotional entities such as television commercials, newspapers and the Yellow Pages.

Those days are long gone, and those systems are now dying. In their place are unlimited channels of conversation not only between one person and another but between people and business.

No longer does mass media claim a chokehold on the lines of communication between companies and customers. No longer are information gathering and sharing the exclusive domain of mainstream news organizations. No longer are consumers willing to passively absorb the web of lies concocted by marketing’s spin doctors.

Today the means of communication have been revolutionized, and the old methods marketing to the masses have been rendered ineffectual.

Read more:
Prying the Torch From the Dead Hands of Old Marketing

All hail the virtual agency

The only thing deader than old marketing is the traditional agency, and its business model is in the grave right along with it.

Today's marketplace is ruled by survival of the fittest. It's time to get faster, leaner, smarter and more agile, and marketing agencies are no exception to this rule.

The new marketing company is one that hasn’t forsaken business principles that are timeless but takes advantage of all that’s afforded by today's technology to shave off unnecessary expenses.

OUT: Deals with a select few in a position of control.

IN: True, choice-based media, entertainment and communications.

OUT: Expensive payments to big, traditional, bureaucratic agencies that still attempt to use carpet-bombing tactics to grow your business.

IN: Fresh and nimble development firms who know how to build a brand and grow a following around it using today’s communication systems.

OUT: Paying the price for enormous overhead expenses for big buildings and lavish offices filled with excessive personnel.

IN: Virtual and hybrid marketing firms that work fast and don’t pass the bloat of unneeded expenses on to their clients.

OUT: Working through layers of costly production managers, account executives and supervisors before you get to the people that really do the work.

IN: Having access to the key architects and creative talents who are integral to the ideas and concepts essential to your success.

Read more:
10 Things You Pay for From Traditional Marketing Agencies

If marketing is dead, what's next?

Getting and keeping customers is what it's all about. That much hasn't changed. What has changed is what's needed to achieve it.

Gone are the days of growing your brand by marketing to the masses. Today’s consumers are disengaged from commercial culture as we once knew it, disenchanted with marketing’s shallow messages and misleading claims and disillusioned by promises unfulfilled. Instead, they are ever in search of the authentic. They are driven to seek out companies they can believe in and to identify themselves with brands that inspire them.

In a world of unlimited channels of communication, loyalty is no longer a commodity that can be bought rather than earned. In the new millennium, trust has become the currency of a marketplace driven by the consumer, and the new way to grow business is through trustcasting.

Simply put, trustcasting is the ongoing process of building and maintaining trust between a business and its customers. The practice of trustcasting requires that any and all resources dedicated to the promotion of business be directly or indirectly founded in trust.

Trustcasting approaches customers as people, not numbers. For those ingrained in the old practices of mass marketing, this represents a daunting ideological shift, but the task of earning and keeping trust cannot be reduced to statistics or demographic segments.

Recognizing word-of-mouth as the primary medium by which today’s customers are won, those that practice trustcasting engage in two-way communication with their customers on a human level, demonstrating genuine respect and value for their time and attention. While this approach undoubtedly requires a more significant investment in time and resources than traditional marketing, the return — cultivating a community of evangelists around a brand – is also much more profound and lasting.

Read more:
Put Away the Smoke and Mirrors
The Trust Manifesto
Goodbye, Marketing. Hello, Trustcasting.
10 Resolutions for Success in 2010 and Beyond
10 Keys to a Successful Marketing Partnership

A brave new world

In today’s marketplace, the Web is where customers are won and businesses grow.

It starts with a great website – one that has successfully confronted and conquered the challenges of providing a beautiful interface, engaging content and utility beyond your primary offering. However, even the best site is only the first step; it’s the foundation upon which you can start to develop a community around your brand.

Once you’ve launched your site, you’ve effectively set up shop and opened the doors. That’s when the real work begins.

To get and keep customers, you must master the Web marketing universe beyond your own site. You must actively seek out those whose needs, desires and interests align with the products or services you offer, draw them in and engage them in conversation.

While it may initially feel like daunting and unfamiliar territory, the key to navigating this new landscape successfully is to ensure that all of your efforts are driven by the motivation of establishing and keeping trust. As long as you always follow the principles of trustcasting, you will inevitably turn contacts into customers, customers into fans and fans into evangelists, all while cultivating a vibrant virtual community.

Read more:
The Web Marketing Universe
On the Right Path
Best of Charlotte Website Design
The “No Duhs” of Social Media
10 Principles of Trustcasting in the Web Marketing Universe

Be yourself or be nothing at all

It’s a mantra worth repeating: People follow people, not companies.

PR done right in today’s marketplace is about people. Cultivating a fan base and creating rich relationships with your public requires that you drop the corporate mask and be a real person.

The public has no affection for the face of corporate America. No one wants to see standard form-letter responses and press releases on Facebook, Twitter and the like.

You must stop being corporate and start representing your brand on a personal level. Be real, flaws and all. Be prepared to be honest through and through. Share your time, your action and your help. Be present every day – accessible and responsive – without fail.

If you try to play it safe and fabricate a personality that shows the world the face you want the public to see, this artifice will be found out quickly. No one will invite you back to the conversation. In fact, you will be banned from the conversation.

By contrast, engaging in real relationships creates fans. Fans are more than just loyal customers; they are brand evangelists that do your marketing for you.

Read more:
The Cult of Personality (Part 1)
The Cult of Personality (Part 2)
Breaking Boundaries

The Age of Tribes

Behind every major movement and successful marketing engine there is a tribe.

What is a tribe? Simply put, it is a group of people that connect around a common goal, shared passion, similarities in background or a need for solutions to improve their lives.

The facts are simple: if you want to grow and thrive in today’s marketplace, you must identify, become a member of and lead the tribes that are relevant to your business and your bottom line.Your organization, your business operations and your products or services must be shaped by and around the tribe.

Tribes are ready and waiting for the next big thing that is going to solve their problems, meet their needs or make their lives better. If you’re the one that delivers that idea, they’ll rally around you, spread your message like wildfire and fan the flames of your success. The power and influence you command as the leader of your tribe is unrivaled by any form of traditional advertising.

Read more:
Tribes in Today’s Marketing
Mastering Tribe Marketing
Shaping Business for the Tribe

Following the leaders

If you need living proof that the rules have changed, look no further than the Fame Foundry Podcast. Each month we spotlight the people and companies who are leading the way in setting new trends and redefining how business is done today.

Take, for example, best-selling author and video blogger extraordinaire Gary Vaynerchuk. When it comes to the gospel of personal branding, there is perhaps no one so well qualified to preach as Vaynerchuk, who has not only turned his family business into $60 million-a-year wine empire but has cultivated a following of more than 100,000 for his daily video blog.

For a true testament to the power of Twitter, we introduce you to Comcast’s Frank Eliason – the man behind the Internet’s most advanced social media-based customer service program. Eliason has achieved the impossible by lending a human voice to the cable giant and transforming formerly dissatisfied customers into brand evangelists.

Then there’s the inspiring story of Amélie’s French Bakery in Charlotte, N.C., which defied the unfavorable odds of launching a new restaurant in the midst of an economic downturn by cultivating a reputation for authenticity and a fiercely loyal community of ardent evangelists.

Perhaps you are sold on the importance of social media platforms like Facebook and Twitter, but you’re still dubious of the value of viral video. Meet self-proclaimed “Internetainers” Rhett & Link, whose reputation for creating highly popular video content has brought major brands like Cadillac, McDonald’s, Coca-Cola and Starburst to their doorstep.

Read more:
Gary Vaynerchuk: Profit from Your Passion
Comcast’s Frank Eliason: Creating a Better Customer Experience One Tweet at a Time
Amélie’s French Bakery: Staying True to Success
Rhett & Link: The Business of Viral

More to come

The revolution is far from over, and Fame Foundry is just getting started. Keep reading for more intelligence on the new rules for business growth and what it takes to compete in today’s marketplace.

Worth a Million Words: How to Boost Your Blog with Great Video Content

So your company blog is perking right along. You’ve nailed the voice, tapped into a steady stream of ideas and inspiration and settled into a good rhythm of posting and extending your content through your various social media networks.

From here out, maintaining your momentum is as easy as lather, rinse, repeat, right? Au contraire. Now that you’ve mastered the basics, it’s time to shake things up and take on a new challenge: video content.

Why video? In today’s digital age, your followers’ brains are programmed to crave constant excitement and stimulation. Video content can engage them in different ways and offer a much more interactive experience that your standard text-based post.

Not convinced? Check out Wine Library TV, the video blog that helped Fame Foundry friend Gary Vaynerchuk skyrocket to success. On this vlog, Gary reviews wines:

It’s a straightforward concept, and he could just as easily write up his reviews as deliver them via video. But you can get stuffy, formal, written wine reviews just about anywhere. That wouldn’t be special. What makes Wine Library TV a destination point for his many thousands of loyal fans is seeing Gary V on camera in all his larger-than-life, in-your-face, uncorked, ad-lib glory.

Because video by its very nature is a more engaging medium, video-based content is also much more likely to be shared by your readers via social media. Furthermore, multimedia content gets huge points with Google. In fact, keyword searches on Google often include video posts in at least one of the top five results, making your keyword-enriched video much more visible to Web surfers.

If you’ve never made a video before, the process can seem intimidating in its unfamiliarity. However, if you can master just three key elements – content, production and optimization – in no time, you’ll be publishing great video content that will take your blog to the next level.

Conquering video content

Content is king, so there’s no reason to tackle the technical aspects of producing a video for your blog until you’ve ironed out your video content strategy.

Don’t just produce a video for video’s sake. Your videos should be a natural evolution of your blog’s content that are highly relevant to your target audience.

As with any type of content that you’d publish to your blog, the number one rule is to provide value. Whether it comes in the form of information, entertainment or both, value is the one and only reason why someone will invest their time in watching your video and pass it along to others as well.

That being said, the medium opens the door to all types of fun, engaging, creative content that simply wouldn’t pack the same punch in written format. While the possibilities are nearly limitless, here are a just few basic ideas to get you started:

Reviews

As you can see from the Gary Vaynerchuk example, video is a great medium for delivering product reviews because your words seem more authentic when your audience can watch you manipulate the item and can witness your natural reactions.

Let’s say you own an athletic goods store. The next time Nike releases the latest version of one of its running shoes, give us a video review that demonstrates what’s new about that model and how it performs in action.

Tutorials

What’s a more effective way to teach your customers how to use your products: by explaining it through words in painstaking detail or by capturing your demonstration on camera?

On their blog, Brooklyn Kitchen publishes instructional videos that run the gamut from shucking oysters to cleaning a blade grinder to sabering a bottle of champagne.

These are the types of unique how-tos you can only get from a passionate group of foodies, and their readers place a high value on this level expertise.

Ask the expert

Speaking of expertise, get your customers in on the act by having them submit questions (whether by video, social media or good old-fashioned email) that you can answer on-camera as a voice of authority on the subject.

Series

When it comes to any kind of blog content, series are great because they automatically create anticipation for the next entry and give your followers incentive to come back time after time.

Let’s say you run a yoga studio. You could produce a series of video posts, each of which takes a specific pose and breaks it down in detail, demonstrating the proper form and the muscle groups that should be engaged when executed correctly.

Crowdsourced content

Are you camera shy? Then why not leave the work of creating your video posts up to your customers? YouTube is nothing if not a testament to how much we love to see ourselves on camera.

Challenge your customers to send in a video showing the creative ways they use your products. Or ask them to submit their own video reviews, which carry the added benefit of being great word-of-mouth marketing for your company.

Polishing the production

While it’s important for your videos to look professional, you don’t need the resources of a big-budget Hollywood blockbuster to produce great content for your blog. With a little practice, you can master the fundamentals of shooting, editing and publishing high-quality video content that will engage your followers.

Recording

There’s no need to break the bank, but do shoot in HD if you can. These days, the price difference between HD and non-HD cameras is minimal, and the improvement in quality is substantial.

The most important factor in recording, however, is stability. Use a tripod – whether real or improvised – to avoid the dreaded, motion-sickness-inducing Blair-Witch-Project shaky camera effect.

To avoid jarring transitions, don’t try to pan the camera to follow the action. Instead, film in one spot, move the camera, then film in that spot, and weave these scenes together later during the editing process.

If your video involves demonstrating something on your computer, use screen capture software such as HyperCam or CamStudio to yield the best quality end result.

Lighting and blocking

Natural lighting is always best, but even if you need to use artificial light, make sure that you’re not under- or over-lit.

If you wear glasses, remove them during the shoot, as reflection on the lenses will be distracting.

Before you dive in to filming, do a couple of quick test shots to make sure you’ve got it right before you waste a great take only to discover that your face is obscured in shadow or the top of your head is cut off.

Sound

The quality of sound in your video can make or break the viewer experience. If your voice is muffled or there’s too much background noise, your viewer will quickly get frustrated and move on.

A microphone is the easiest way to make sure that you can be heard clearly and distinctly. You don't have to use the latest greatest, but get something that will allow you to keep the mic close to you. Some people use a lapel mic, while others prefer shotgun mics and others use inexpensive mics that can be purchased at just about any department store. It's really up to you and your budget, but any mic is better than none at all.

Setting

Find somewhere to record your video that’s quiet and offers minimal background noise. And don’t forget to silence all of your various devices. A ringing phone or an email alert will ruin a great shot.

If possible, film your video against a solid backdrop to minimize visual distractions. You don’t want viewers to miss out on great information because they’re checking out all the knick-knacks on your desk and your walls.

Intro

Don’t risk tripping your viewers’ itchy browser-closing finger with a long, rambling introduction. Just tell us who you are and what your website is, then dive right into the substance of your video.

Editing

Your computer probably came with some basic editing software, so use that until your level of production savvy demands more sophisticated tools.

Keep in mind that it’s okay to leave good stuff on the cutting room floor. Inevitably, you’ll record more video than you use. You focus should be on capturing the essence of your story in about two to four minutes – the time-tested sweet spot for web video.

Publishing

To save bandwidth on your website, it’s best to upload your video to a sharing site like YouTube or Vimeo and then simply embed the video in your blog post from there.

This approach also has the added benefit of making your videos available to anyone who might be specifically searching one of these channels for content related to that subject matter.

For more great production tips, here a video from a blog owner who shares a few of the lessons he’s learned along the way:

Optimizing your videos

Just as with textual content, videos can be optimized for search engines through the use of keywords.

Choose a either a single keyword or keyword phrase to focus on, and incorporate this keyword in the title of your video, the URL, the tags and the text of the post where your video will live.

Google gives even more weight to text/video combos, so be sure to include your target keyword in text both before and after the video. For instance, start your post with a brief paragraph introducing your video, then embed the video and include a full transcript below, which coincidentally is also tremendously helpful for those who may have found your post but cannot view your video due to issues such as office firewalls.

Make sure as well to create a dedicated YouTube account for your blog that is linked to your website, and when you upload your video, use the same keywords in the title, description and tags that you used on your blog post.

Once you’ve published your video post, link to it and share it with your social media followers just as you would with your written posts.

By boldly venturing into the world of video content, you can help your blog rise above the competition and create a deeper level of engagement with your fans and followers. Over time, you’ll see the results of greater exposure and know that your learning curve and hard work have paid off.