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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Business Toolbox: How to Standardize Your E-mail Signature

E-mail is the workhorse of communication for your business. It’s likely to be your first point of personal contact with prospective customers as well as your go-to vehicle for conducting day-to-day conversations with existing clients. As a result, your e-mail signature is an important – but all too often overlooked – extension of your brand. Just as you wouldn’t mail a letter or a proposal printed on any old paper stock, you should give equal consideration to creating and implementing a standardized corporate e-mail signature. However, this is where things get a little tricky. While your e-mail signature serves as your electronic business card, it doesn’t play by the same rules of branding that govern your stationery, website design or even participation in social media networks. Here are five common misconceptions that can lead you astray when crafting your signature:

1. If I’m going to represent my brand, I must include my logo.

According to conventional thinking, your company’s brand and logo are one and the same. However, as counterintuitive as it might seem, it is best not to include your logo in your e-mail signature. Why? Because it is difficult to control how images are interpreted and displayed by different e-mail clients. Most e-mail applications either store images as attachments or block them, resulting in a broken image. Therefore, if you construct your signature around a logo, and that image frequently is not displayed, it compromises the consistency and professionalism that you are trying to achieve. The best, most universally replicable alternative is to integrate your corporate colors in your signature, albeit with restraint. For example, you might choose to display your company name in one of your corporate colors, which will make it the most prominent element while also employing one of the primary elements of your visual brand.

2. Personality, personality, personality...it’s all about personality, right?

In marketing, yes. On Facebook, Twitter and LinkedIn, you’ll never get anywhere without personality. However, when it comes to e-mail, make sure your messages are friendly and personable, but keep your signature strictly professional. The one and only purpose of an e-mail signature is to let the recipient know who sent the message and provide a way for them to get in touch with you. You might think it’s fun to include your favorite quotation in every e-mail, but in doing so, you run the risk of unknowingly offending a client or prospect. And never include any non-company-related information in your corporate e-mail signature. Not a link to your personal blog, not the URL of your side-project website, not your Facebook, Twitter or Skype details. That’s only asking for trouble.

3. It’s important to make a lasting impression.

The only impression you want your e-mail signature to make is professionalism. If your clients remember your signature and not the point of your message, there’s a problem. Don’t give into the temptation to experiment with large, bold or multi-colored text. Don’t try to use the typeface from your logo; more often than not, it won’t be displayed properly by the recipient’s e-mail client. Stick with simple, plain, web-safe fonts in the same size as the body of your message, and you can’t go wrong. Returning to the example of mailing a letter or a proposal, there’s a reason you would never print your correspondence on multi-colored florescent paper. Like your letterhead, your signature should reflect the legitimacy and gravity of your business-related communication. It should never compete with your message or in any way distract from the information you need to convey.

4. I need to make sure that my clients can reach me by any and every means necessary.

There’s no question that great customer service is a key competitive edge in today’s marketplace. And it’s understandable why giving your clients your direct office line, 800 number, cell phone, fax number, IM handle, mailing address and LinkedIn profile would seem to convey that you are accessible at their convenience through any number of channels. However, a much better way to serve your clients is to provide the one method of contact through which they can almost always reach you. Most of the time, this will be a phone number (pick one: work or mobile). Then, rather than having to sift through a dozen different means of communication to identify the one they need or play guessing games about which one will connect them to you in the most expedient manner, it will be right there for them to find at a glance. As a rule, there’s no need to include your fax number or your mailing address in your e-mail signature. In the unlikely event that your client needs to send you something by fax or mail, you can either include this information in the body of your message, or they can jump over to your website, where these details should always be readily available.

5. I want to drive traffic to my blog / encourage people to follow me on Twitter / promote a limited-time offer.

These are all great marketing objectives. However, you must always keep in mind that e-mail is, first and foremost, a platform for communication between one human being and another. You wouldn’t wrap up a phone conversation with your client by asking them to be your friend on Facebook, and you wouldn’t conclude a sales meeting by making a blatant plug for your blog. Your e-mails aren’t billboards for your marketing message du jour; always keep it personal and professional. Including your website URL in your signature is a good way to indirectly promote your business, its presence on various social media networks and targeted marketing efforts without cluttering up your e-mail messages. If your customer or prospect clicks through to your site, they should be presented with all of these options – most likely before they ever leave the cover page.

Best practices for a professional e-mail signature

Follow these tried-and-true guidelines to ensure your e-mail signature is polished, professional and customer-friendly:

• Focus on providing only the most essential information about who you are and how you can be reached in an effective and unobtrusive way.
• Limit your signature to four lines (the accepted standard), with a maximum of 72 characters per line to optimize how it is displayed in different e-mail applications. Combine different types of information on one line by using pipes (|) to separate the text.
• Typically, you should include only your name, job title, company, primary method of contact and corporate web address. Don't repeat your e-mail address in your signature.
• Write out the URL for your company website rather than using hyperlinked text.
• Create different signatures for different purposes. For example, you might have one version for e-mails you send to vendors that includes your office line and another for client correspondence that provides your cell number.
• Always add a signature to replies, but include fewer details. For example, whereas your primary e-mail signature would most likely include your name, position, company name, contact information and web address, your reply signature might provide only your name, primary form of contact and web URL.
• Don’t include a legal disclaimer unless required to do so. The best practice is not to transmit confidential information in plain text in e-mails because that information could easily be extracted or forwarded.
• Use a signature delimiter to create visual separation between your signature and the body of your e-mail. The standard protocol recognized by most e-mail clients is two hyphens followed by a space and a line break (-- ).
• Don't use HTML formatting, as it can interfere with how your signature is displayed in some e-mail clients.
• Simple, plain text in the same size as the body of your e-mail is best. Employ bold or colored text very sparingly for emphasis, and use only your corporate colors.
• Don't use an image as your signature, and avoid including images in your signature.
• Be sure to test your signature in as many different e-mail clients as you can (including web-based applications like Gmail). Don't forget to also check how your signature looks when forwarded to ensure that all lines wrap correctly.

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Check it Out: 10 Ways to Stop Shopping Cart Abandonment

It’s not over until the cash register rings

A customer has found your site, browsed your store and added several items to their cart. You’re home free, right? No so fast...until they’ve confirmed their purchase, you’re still at zero, and you still have plenty of opportunities to derail the sale. Fatal flaws in your checkout process can not only cost you the potential sale at hand but also drastically decrease the likelihood of that customer ever returning to your site to buy from you in the future. If you’re experiencing a high occurrence of shopping cart abandonment, here are 10 ways to fix the obstacles and annoyances that are driving away customers and crippling your conversion rates:

1. Eliminate all chance of unpleasant surprises.

Make sure customers have all the information they need upfront to make a confident buying decision. This includes confirming the availability of the item; calculating promotional pricing or discounts; mapping out shipping options, costs and timetables; specifying whether or not sales tax applies to the purchase and clearly defining your return policy. If a customer reaches checkout only to discover that the particular item they wanted is out of stock, ineligible for an advertised discount or costs more to ship than they are willing to pay, odds are good that will be the last you see of them.

2. Display relevant details in the cart.

The shopping cart itself should provide a clear overview of the pending purchase at a glance so that customers do not have to navigate away from the checkout process to confirm the details of their order. Keep in mind that by this point in the process, your shopper may well have clicked to and from the cart numerous times as they selected multiple items, browsed various categories of products or compared one item to another, and they may be fuzzy on the specifics of everything they’ve chosen. Without the benefit of being able to glance down into a physical shopping cart to review their selections, they need reassurance that the package that lands on their doorstep will contain exactly what they intend, so be sure to provide thumbnail images, descriptions, quantities, sizes, colors, prices, availability and applicable discounts for each product in the cart.

3. Allow changes within the cart.

Every time your customer navigates away from the cart, you’re running the risk of losing them, so make sure that they can edit details such as quantity, size and color without having to locate the product page a second time.

4. Offer multiple payment options.

If you’re conducting e-commerce business online, your site should be tied in to a secure payment gateway. However, offering the option to complete the transaction through a third-party processor like PayPal or Google Checkout can put some customers – especially those who may not shop online often – at ease because they don’t have to release their credit card number and billing information directly to you. Conversely, PayPal and Google Checkout shouldn’t be the only options you provide. If a customer does not already have an account established with one of these payment processors, they may not want to create one just to do business with you.

5. Don’t require customers to create an account.

Without a doubt, it’s awfully tempting to require customers to create an account to complete their purchase because it will allow you to collect valuable data from them for future sales analysis and marketing. However, given the sheer number of social media and e-commerce sites that your customers likely interact with, they may very well have account creation fatigue. They may not want to establish yet another user account and password just to make a purchase, especially if they don’t necessarily anticipate ordering from you again in the near future. The best approach is to offer two options: checking out as a guest, which will expedite the process, or creating an account, which offers conveniences appealing to those who do shop with you often, such as eliminating the need to re-enter their shipping and billing information every time they make a purchase and allowing them to check on the status of an order. The key is to let your customer make the choice that suits them best; don’t force the issue and lose a sure sale in pursuit of future marketing opportunities.

6. Simplify and streamline.

Online shoppers are notoriously impatient, so don’t ask for more information than you need to complete the transaction, and don’t break the checkout process into more steps than necessary. Make sure as well to display a breadcrumb trail that indicates how the checkout process will progress. If a customer can see at step one that they only have three steps left to complete their order, they won’t get impatient or frustrated as they move from one screen to the next, not knowing what’s coming next or when the process will be done.

7. Cater to the on-the-go shopper.

When evaluating your checkout process, don’t forget about mobile users. A customer may be standing in the bricks-and-mortar store of your competitor and comparison shopping on their phone. If you offer the better price, don’t you want to make it as easy as possible for this customer – who’s clearly ready to buy – to order from you on the spot instead? This is another reason why it’s critical to streamline the steps within your checkout process as much as possible as well as to ensure that form fields can be easily completed on touch-based devices. Walk through your checkout process on as many different types of mobile devices and platforms as you can get your hands on, and don’t waste any time in eliminating any obstacles or road blocks that you discover.

8. Don’t give up too soon.

In the age of multitasking, sometimes a customer will simply get distracted before they have a chance to complete their transaction. The phone rings, the baby wakes up from her nap, the computer freezes, the pizza delivery guy arrives, etc. Or sometimes, they just need some extra time to make a decision while they continue to do research, get opinions from friends and the like. While you can’t do anything to mitigate this type of offline interference, you still have a chance to save the sale. A persistent shopping cart retains the items your customer has selected for a set period of time, whether that’s a few hours or a few days. When your customer has a chance to return to their computer, they can pick up exactly where they left off rather than facing the hassle of tracking down each item again, even if they had closed their browser window.

9. Never underestimate the importance of the human element.

If your customer has a question as they are progressing through checkout, the easiest, most reliable way to ensure they don’t lose momentum is to display your customer service phone number prominently at every step along the way. A simple question should have a simple resolution, and usually that is best provided in real time by a human being. If you leave your customers to their own devices to find the answers they need, you’re running the risk of allowing them to become distracted or frustrated and losing all interest in completing the order.

10. Reinforce trust at every turn.

As with all elements of doing business online, trust is key. In the absence of face-to-face human contact, you must rely on your website to build trust for you if you want customers to choose to spend their hard-earned dollars with you rather than with your competitor. Some elements of trust-building in e-commerce are obvious. Do you display your SSL certificate to reinforce security? Do you feature customer testimonials or reviews to boost confidence in your reputation? Is it easy to locate your company’s phone number, physical address and return policies so they feel assured that they can resolve a problem or obtain a refund without hassle? Other elements are less tangible. Does your site have a polished, refined look and feel overall, or does it look dated or sketchy? Do you offer value-added content like how-to videos or blog articles that convey to your customers that they are doing business with experts who are knowledgeable and passionate about their products? Thanks to the proliferation of Internet scam artists, the burden of earning trust with online shoppers is steep, but it is surmountable with careful attention to detail.

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