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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The Who, What, When, Why and How of Successful Email Marketing, Part II

Email marketing: it’s not the newest, shiniest weapon in your business growth arsenal. But there’s no denying that it’s still a highly efficient and cost-effective way of communicating with your existing customers as well as new prospects. But don’t let the low barrier to entry lull you into a false sense of security. There are certain fundamentals you must follow if you want to create a campaign that captivates and motivates versus one that is ignored and condemned to the trash folder. In part one of this series (http://www.famefoundry.com/11041/the-who-what-when-why-and-how-of-successful-email-marketing-part-i/), we examined the quality of the recipients to whom our campaigns are sent and solidified a strategy for when and why to send them to ensure that we do not overwhelm those recipients with messages that are unimportant or unnecessary. Now, we’ll turn our focus to the remaining two fundamentals of email marketing success: what we will say and how that message will be delivered.

The How

No matter which email marketing platform you use to create and send your campaign, all include templates that provide designated areas for content that can be easily edited. The issue with these templates, of course, is that they are, well, templates. As a result, when you use them, you run the risk that your emails will look nearly identical to others that your customers receive, and simply adding your logo is not enough to create real differentiation. As a result, used as-is, they can make your marketing campaigns look cheap and unprofessional. This is why customization is a must. All of these email templates are built with HTML, the same programming language used to construct websites. Behind the scenes are code and images that can be edited to create a more custom-tailored look and feel. Due to the highly technical nature of making modifications within the HTML code, this is probably not something you should DIY but rather entrust to your web development team. They can shape and refine these pre-existing templates or even create a completely unique template design from scratch that integrates seamlessly with all elements of your brand’s visual identity (i.e., your website, printed materials, etc.) and sets you apart your competitors. Whichever approach you choose, this represents a relatively small one-time investment that will pay great long-term dividends as you use your branded templates time and time again. Ideally, you’ll want to establish a few different email layouts that can be used for various purposes, such as newsletter-style content, major announcements and perhaps service alerts or other time-sensitive notifications. The template formats you require will of course depend on your business needs, but by having a few on-hand to choose from, you can ensure all of the email communication that you send reflects well upon your brand.

The What

Subject, subject, subject

No matter how beautifully designed your email might be, that design isn’t worth the pixels it’s transmitted on if your message goes straight to the trash unread. Your subject line is the make-or-break factor that will determine whether the recipient will grant you even just a few seconds of their precious time and attention. A line that’s boring and unimaginative provides zero motivation for them to give your message a second glance. One that’s too over-the-top screams “SPAM!” and is just as likely to be ignored. Subject lines that are too long, written in ALL CAPS, filled with exclamation marks or intentionally deceitful (e.g., including “Re:” to make the email appear as if it’s a direct reply to a message from the recipient) are guaranteed to work against you, so avoid them at all costs. Effective subject lines are neither vague nor dull. If you received an email with the nondescript subject line “News Update,” would you read it? Neither will your customers. Similarly, the subject line “April Customer Newsletter” explains what the email itself is, but it offers no insight into the content of its message. For my own company’s email newsletters, we have eschewed these types of easily disregarded subject lines in favor of more descriptive ones that tease the content. In doing so, we have achieved much better open rates. One way to boost the success of your subject line is to frame it in the form of a question, such as “Are you considering a move to the cloud for your business?” or “Do you know the reasons companies usually struggle with a move to the cloud?” Those two subject lines are ones I actually tried recently along with a more straightforward one – “Challenges of Moving Your Business to the Cloud”. While all three saw relatively good open rates, the two that posed a question to the recipient well outperformed the other. Start paying attention to the emails that land in your own inbox. Which subject lines catch your eye? Which do you gloss over without a second thought, and which ones prompt you to hit the “delete” button immediately? Soon you’ll begin to discern which types of lines are most effective, and you can apply these techniques to your own campaigns.

Inform, don’t overwhelm

Now that you’ve formulated an attention-grabbing subject line that will motivate your recipient to open your email, the next challenge you must conquer is the content of the email itself. All too often, companies try to communicate too much via their emails, with the end result being that the recipient is too overwhelmed to fully process and take action on the information being conveyed. Many email newsletters fall into this trap, with company announcements, blog articles, product highlights and more crammed into a single message. In an attempt to make sure the recipient has access to every piece of information that could possibly be of value to them, the e-newsletter becomes a scattered mess that lacks organization and direction. Additionally, this information is usually presented in full within the body of the message itself, instead of prompting the reader to click a link to access the full text via a web page. As a result, the number of ideas coupled with the depth of their presentation spells doom for the campaign. A quick scan of the message is enough to turn the recipient away because they have no desire to invest the time necessary to sort though the barrage of content to find the one or two bits of information that might be of use to them.

Be a tease

Avoid this “much too much” trap by editing and teasing your content. Include no more than three key ideas per newsletter. Sure, you may have more than three things to say, but you must be ruthless in your selection process, and save the rest for another missive or another medium. Next, present those three (at most!) ideas in the form of short teasers. A title, a short intro to the news item or article being highlighted and an accompanying image are all you need to pique your reader’s interest – along with a link prompting them to read more on your company’s website. By doing so, you’ll ensure that your email newsletter offers a clean, visually appealing presentation that can be scanned and processed in a matter of mere seconds. If a reader is interested in one of the three key ideas you’ve presented, they have the option to easily obtain more details for themselves. Of course, this approach has the added benefit of driving users to your website and increasing that site’s exposure to new audiences. When I suggest this “click to read more” approach, the reaction I most often receive is that readers “don’t like to click a link” but rather want to read the article in their email message. I have no idea where this belief came from, but it is false. Users are more than comfortable with clicking links, especially if it comes from a trusted source (see Part I for the benefits of using a carefully curated email list of customers who know who you are already). The Internet is driven by clicks, so do not be afraid to embrace this behavior! By mastering these five fundamentals of successful email marketing – the who, what, when, why and how – you can help to ensure that your messages are a welcome presence in your recipients’ inboxes, that they are read and, most importantly, that they motivate your customers and prospects to take the action you desire.

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Death of a Salesman

The salesman is dead. Long live the relationship-builder.

If you're like most entrepreneurs, you love what you do. You have a passion for your ideas, your products and your services. But you hate selling those ideas, products and services with a passion, too. And you know what? Your customers hate being sold just as much as you hate selling them. So what's the solution? Forget everything you thought you knew about sales. In today’s marketplace, growing your business is as simple as building relationships – something you’ve been doing your entire life. There’s no magic formula for success. You don’t need to be a fast-walking, smooth-talking salesman to get people’s attention. You don’t need to put on a dog-and-pony show to convince them you are the best at what you do. Flash isn’t what’s going to get the job done. Just be yourself and do what comes naturally. Focus on serving others. Have conversations. Talk plainly but with authority. Be authentically helpful. Let your expertise do the heavy lifting. Lead the way to success for your prospects. Say goodbye to your days of being a salesman once and for all. Here are the dos and don’ts that will guide you in building relationships that lead to business growth.

Find your niche. Don’t try to be everything to everyone.

The salesman will eagerly talk the ear off of anyone and everyone that will give him the time of day, regardless of whether they have any real use for his products or services now or in the future. The relationship-builder can say with confidence that he is the best man for the job because he knows his strengths and his customers’ needs well enough to know that it is true. When you’re trying to grow your business, it’s tempting to cast your net far and wide to reel in any and every prospect that crosses your path. But grasping at straws is no foundation for long-term, mutually beneficial relationships. The key to convincing prospects that you are their best choice is truly believing that you are, in fact, the best choice for them. This type of self-assuredness starts with knowing where your depth of expertise lies and identifying those who can benefit most from it. This requires you to be resolute in defining your service niche, clear in identifying your target audience and focused on finding ways to connect the dots between the two. When you find the people that you are meant to serve, convincing them to let you help them reach their goals is a much less difficult proposition.

Pull, don’t push.

The salesman cold calls. His is the Russian roulette approach to business growth. He spins the wheel and hopes for the best. The relationship-builder endeavors to establish a foundation of trust before ever asking a prospect to entrust him with their time, attention or hard-earned dollars. We’ve said it before, and we’ll say it again: you must be identify the tribes of people who represent your target market, find the places where they live online and earn your right to walk among them as a leader. To be accepted by their community, you must first contribute. This will likely require being an active participant in social media channels, where you can interact directly with current and prospective customers in ways that are helpful, insightful or even entertaining. This almost always requires ensuring that your own online home base – your website – provides value beyond compare in its free content offering, whether that takes the form of blog articles, videos or other types of resources. After all, as a relationship-builder, you must be willing to give away some of your time and expertise in order to plant the seeds of trust and open the lines of communication. But the benefit of your efforts is that when someone is ready to pull the trigger on a buying decision, your name will be the first – and maybe only – one on their call list.

Do your homework. Don’t make assumptions.

The salesman has a one-size-fits all pitch for every customer. His product doesn’t change, so neither does his approach. The relationship-builder does the legwork necessary to ensure that the relationship starts off on the right foot. He recognizes that no two customers are alike, and if he doesn’t have a fundamental understanding of the problems they face, how can he propose to address them? If you are given the opportunity to meet with a prospect, gather as much intelligence as possible beforehand. After all, when you have the entirety of the Internet and its infinite font of information at your disposal, why not use it? What can you learn about the person you’re meeting with? What is their professional background? What experiences or interests do you have in common with them that can help you break the ice? What’s the story of the company they represent? What does their competitive landscape look like? What opportunities can you see that they might not be taking full advantage of? You’ll be amazed at what spending a few minutes with Google, LinkedIn, Facebook and Twitter will reveal. Ultimately what you’re really looking for are the questions, concerns, issues and insecurities that keep them up at night. If you walk in and show them that you understand their challenges from their perspective, they’ll be more easily convinced that you also know how to overcome them.

Have a conversation. Don’t make a pitch.

The salesman loves the 30-second elevator pitch. He comes out swinging right off the bat with a perfectly polished speech about how wonderful his products or services are. The relationship-builder asks questions first. After all, this meeting is about serving the prospect’s needs, not his own. While it is important to do your homework before a prospect meeting, don't make the mistake of assuming that you already have all the answers you need. And certainly don't script out the interaction. Ask a lot of questions. Confirm the conclusions you drew from your research. Be prepared to improvise. You know your business, and if you’ve done your due diligence, you know their business pretty well, too, so there’s no need to be apprehensive if the conversation takes an unexpected turn. Don’t become so wrapped up in your own presentation that you steamroll over your prospect. You should listen at least as much as you talk. Make sure you truly hear what the prospect has to say. Pay close attention to their body language and facial expressions for cues that can help you steer the discussion in ways that reinforce their trust in you. Remember: a pitch is a push; a conversation is a two-way street.

Tell a story, don’t tout features.

The salesman has a laundry list of features that he wants to make sure he conveys to a prospect so they know just how special his product or service is. The relationship-builder doesn’t talk in bullet points. He paints a picture of the end result. Tell your prospect the story of their future success and how you're going to help them achieve it. Give them a reason to believe why will it work, what will it be worth when it does and why are you the one that can make it happen.

Be authoritative, not arrogant.

The salesman is unshakably confident – to such an unnatural degree that he comes across as phony and affected, as if he’s merely putting on a well-rehearsed show. The relationship-builder demonstrates a different brand of confidence – one rooted in the foundation of authentic expertise and experience. When you talk to a prospect, speak with authority, not arrogance. Demonstrate that you are a master of your field, but interact with them as an equal. Relate to them as one person who understands the challenges of growing a business to another. And never stoop to tearing down the competition. Unless your prospect broaches the subject, there’s no reason even to acknowledge their existence. This is your time to shine; make the most of it.

Be patient, not pushy.

The salesman wants a commitment today because that’s what serves his interests. The relationship-builder lets the customer decide when they’re ready to take the relationship to the next level because that’s what serves the client’s interests. That’s not to say that you should meet with a client and then ignore them until they decide to pick up the phone and call you again. You should touch base periodically, but do so in a way that demonstrates your continued mindfulness of and investment in their needs. Reassure them that you’re ready to hit the ground running if and when they choose to move forward. Remember that every touchpoint – whether it occurs in person, over the phone or via email – represents another chance to strengthen the bonds of trust that exist between you.

Be a nurturer, not a closer.

The salesman is a great closer. Once he has a signature on a contract and money in hand, his job is done, and he has already long since turned his attention to his next target. The relationship-builder never closes. He pays attention, he nurtures, he earns the right to continue serving the customer’s needs. "Closing" is a dangerously misleading term – one that is symptomatic of the old school of sales. When a customer makes the choice to do business with you, you’re not closing anything. You’re only beginning the process of cultivating a relationship with someone whom you hope will be a lifelong client. Remember that this person and this company have decided to take a chance on you. To them, it’s still a roll of the dice at this point. This is your opportunity to prove to them that their gamble will pay dividends in the realization of the future success you promised. Think of every interaction you have as an opportunity to cement their continued loyalty. Don’t just meet their expectations; exceed them at every turn.

R.I.P., Mr. Salesman. Hello, Mr. Relationship-Builder.

Follow the guidelines we’ve outlined here, and you’ll inevitably find that your prospective customers respond positively to seeing that their needs come first and that you have a genuine interest in helping them advance their own goals. If you approach the task of growing your business as a mission of earning trust and building relationships with people rather than just closing one sale after another, you’ll find not only that it’s not a dreadful task but that it’s actually enjoyable and even rewarding. So what are you waiting for? Get out there and start building!

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