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.

---

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!

---

Survival of the Fittest: Conquering Responsive Website Design

With the proliferation of smartphones and tablets today, serving the needs of mobile browsers is no longer acondary consideration when it comes to designing (or redesigning) your website. From the ground up, it’s critically important to ensure that you are building a platform that will look beautiful and perform elegantly no matter where or how a user might access it. While you can create a dedicated mobile site or app, responsive design offers a smarter, more flexible, more agile solution that will ultimately deliver a greater long-term return for your investment.

Defining responsive design

Responsive design is the concept of building a website so that the layout of the site adapts and changes according to the resolution of the user’s browser. Using this approach, you can build a single site that will look just as good on a monitor that’s 2048 pixels by 1080 pixels as it will on an iPhone that’s 320 pixels by 480 pixels and all browser sizes in between without the need to build a separate dedicated mobile version of your website. Ethan Marcotte, the forerunner in the field, identifies the three key ingredients of responsive design as follows:

• Fluid grids
• Flexible images
• Media queries

Wait, fluid what? Media what? Let’s take a step back and define these terms in plain English. Every website is developed based on a grid that governs the scale of and relative position of objects (such as navigation menus, images and text) to one another. A fluid grid has the ability to shift and reposition select elements of the site based on certain conditions in order to preserve the properly defined scale for layout, size and spacing. “Flexible images” mean that the images contained within the site’s design should scale in size and shift in position according to the dimensions of the device being used to access the site (larger images on large displays, smaller ones on phone screens, etc.) And media queries? Media queries are used to intelligently detect the size of the browser window and the device being used to access the site and bring back the correct layout for optimal viewing and navigation according to those parameters. But these technical elements only govern the mechanics of the site. What ultimately determines the success of a website that’s built on a responsive design framework is its ability to provide a user interface that’s both visually pleasing and easy to use. After all, responsive design isn't only about resizing stuff to fit within different screen resolutions; it’s about presenting users with a the best possible experience, both in terms of layout and content. With that in mind, here are five key UX/UI factors that must be taken into consideration in order to maintain the integrity of the user interface and protect the quality of the user experience when employing a responsive design framework.

Catering to the needs of visitors

Users accessing your website from different devices have different needs. For example, if someone visits your website from their iPad during their daily commute on the train, they’re only going to dig so deep. For example, while they’ll likely be interested in perusing your latest blog post, they’re not going to be looking for the bios of your board of directors or your privacy policy. You must think about each type of user that will be visiting your site and let their needs and interests dictate the way your site molds and conforms itself to the size of their browser or device.

Intuitiveness

Being innovative is a good thing; being too innovative is not. If, for instance, you decide to change the color of hyperlinks to an indistinguishable shade of black or invent new navigational conventions that perplex your visitors, you’ll send them running in the opposite direction,and the design will be a total failure. The purpose of responsive web design is to empower users to visit your website and browse freely and according to the conventions that are most natural and familiar to them, irrespective of the device they are using.

Touchability

Who can refute the fact that touchscreens are growing more popular with every passing day? Almost all major smartphones and tablets use touchscreen interfaces, and even certain laptops and desktops are being offered with touch functionality. Touchscreens needs to be treated differently. For example, in the world of the touchscreen, there is no such thing as a hover state. If, for example, you have “previous” and “next” buttons that would normally appear only when a mouse rolls over them, those elements would be unavailable to your touchscreen users. For finger-friendly navigation, all elements must be big, bold and obvious. Buttons that require users to mouse over them to get a sense of action must be replaced with style enhancements that draw attention to their “pressability.” It’s also a good idea when catering to touchscreen users to keep the navigation or sub-navigation menu to the right. Why? Because the majority of your users will be right-handed, so the menus will be more conveniently accessible if they’re on the right rather than on the top or left.

Images

While layouts, structural elements and text can be made flexible, images require special attention. Improper alignment of images can ruin even the greatest of designs. Images need to be automatically adjusted to ensure that the website looks awesome in either portrait or landscape mode (remember: most portable devices nowadays can switch instantaneously between views, depending on the user's whims and wishes). Also, when resizing images on the basis of the screen resolution of the device, care needs to be taken so that the images do not lose their quality. If a given image contains the logo or the name of the website, it needs to be given prominence, whereas footer images can take a back seat. The best is to load the images in their original size, unless the viewing area becomes too narrow for the purpose. When that happens, it means the user is on a mobile device, and the image needs to be narrowed in accordance with the screen width. This is the very essence of how smart responsive web design works.

What to show (and what to hide)

With responsive design, we have the ability to rearrange web elements and make every thing fit on the screen, no matter how small it is. However, making every single aspect of a normal web page available to mobile users is not only unnecessary but it can render your site practically unusable on smaller screens. For mobile devices, navigation, content and functionality must be pared down significantly to focus on those features that are most useful to users while on the go. For example, while mobile users frequently comparison shop on their phones, they might not be as likely to actually go through the entire purchase process on their handheld device. Therefore, while product information and pricing is key, e-commerce options should be extremely streamlined.

A Showcase of Responsive Design

To demonstrate just how effective responsive can be, let’s take a look at a few examples of companies that have embraced this new approach in building their sites. In each example, the full version of the site is show first, followed by a version as it appears on a mobile device.

Hicksdesign

Art Equals Work

City Crawlers: Berlin

8Faces

---