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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Behavior-Triggered Emails: The Secret to Boosting Your Open Rates by 152%

When it comes to email marketing, personalization is the secret to success. But how can you effectively personalize a tool that is by its very nature designed for mass communication?

The answer? Behavior-triggered emails.

Behavior-triggered email is a versatile personalization technique that allows your business to engage with customers at timely touch points. For example, when RunKeeper, a pedometer app, sends a message to one of their registered users with a prompt that reads, “You went running last Saturday at this time. Why not go for a run now?” — that’s a behavior-triggered email. Although highly personal to the recipient, messages like these are easy to automate by taking advantage of data points that are relatively easy to mine and collect thanks to modern technology.

While there is an almost limitless range of ways to execute behavior-triggered emails, the keys to crafting a successful campaign are specificity and creativity. To help you better understand what this is all about and provide inspiration that you can implement in your own marketing, let’s take a look at just a few of the brands that are using this tactic effectively to connect with their customers:

Harris Teeter: Welcome

The strategy: Sending a welcome email is standard protocol almost any time someone signs up for an account on your website or app. However, this message from grocery store chain Harris Teeter goes a couple of extra steps beyond extending the typical thank-you for registering.

First, it offers a discount on the service fee, providing an extra kick-in-the-pants incentive for new account holders to seize the day and place their first order.

Second, it takes advantage of this inbox inroads to remind customers of the benefits of their personal online shopping service and offer a few helpful hints for getting started, thereby reinforcing the sales messages that prompted the user to sign up for an account in the first place.

Soap: Come back

The strategy: In most relationships between customers and brands, there comes a time when the customer begins to drift away, whether because another competitor has caught their eye or because any of life’s myriad responsibilities and distractions have bumped their need for your products or services down in their list of priorities.

If it’s been a while since a customer last visited your site or made a purchase, it’s time to reach out and give them a gentle reminder that you’re still here for them, which is exactly the objective behind this message from Soap.com. Their approach is particularly effective because it is not just a one-time offer that might entice a customer back only to lose them again after making one purchase in order to reap the benefit of the discount. Rather, the offer code is good for every purchase made for two months, a smart sales strategy aimed at coaxing the customer back into becoming a habitual Soap shopper.

Williams-Sonoma: Abandoned cart

The strategy: Another staple of e-commerce email marketing is the abandoned cart reminder. While this strategy is not earthshakingly innovative, it is nevertheless effective.

Williams-Sonoma takes this approach to the next level by including a unique discount code that provides a strong incentive for the customer to return to the site – or the store – to complete their purchase. The code is valid for less than 24 hours, creating a sense of urgency to take advantage of the deal.

One caveat to this approach: You shouldn’t always include a discount offer in your abandoned cart reminder email, or you’ll run the risk of training your customers to put their desired items into the cart and then wait patiently for your message to arrive before checking out with their discount code. Rather, mix up your pitches and include a discount code in some messages but not all. Below is an example of a follow-up email from Williams-Sonoma that does not rely on a special offer to create an urgency to act but rather a mention of limited quantities and a reminder that the previously selected items will soon be cleared from the cart.

Old Navy: Product review

The strategy: If you’ve ever purchased something online, you’ve undoubtedly received one of these emails. Again, the reason they’re so popular is that they’re so effective.

Reaching out to someone who has already made a purchase from you to ask them to share their opinion about the product or services they received is a winning approach all the way around. The simple act of making the request conveys to your customer that you’re a brand that cares about your customers and their satisfaction. Moreover, when they click through to provide their review, you’re getting the benefit of a first-hand testimonial that will help you sell that product to future customers. You’ve also successfully brought an existing customer back to your site, where hopefully something new will catch their eye, leading to a purchase that will begin the cycle all over again.

Grovemade: Survey

The strategy: The survey request is another sure-fire winner. Similar to the product review prompt, the survey request conveys to the recipient that their needs and opinions are valued.

In this example from Grovemade, customers who have previously purchased a related product are sent a link to a survey to provide input to the company on the design of accessories for the new Apple Watch. This accomplishes two smart marketing objectives. First, it gives the company valuable insights to shape their new product line so that it delivers exactly what their customers want. Second, it creates anticipation among their customer base for an upcoming line of products even while they are still in the R&D phase.

Nike: Celebrate a milestone

The strategy: If you have a website or app that tracks customer activity, you likely have data that will allow you to recognize your customer for reaching a milestone, whether it’s a birthday, the anniversary of their becoming your customer or even a personal accomplishment based on activity logged via the site or app.

This example from Nike is a great case-study in how to make this particular approach work for you. In the email, Nike puts the recipient front and center by keeping acknowledgment of their achievement the primary focus. As a secondary message, Nike includes a “reward” for reaching this milestone in the form of a discount on Nike running shoes. While this is obviously a bit self-serving on Nike’s part, it’s also a great way to foster customer loyalty by providing an incentive to buy at a time when the recipient is most likely to be in need of their product.

The proof is in the results

Market research shows that behavior-triggered emails are a valuable but underused tactic. EmailMonks reports that open rates for triggered emails are 152% higher than those for traditional email marketing messages. Even so, over 75% of marketers are not yet using behavior-triggered emails or auto-responders.

A word of caution

Before you go all-in on behavior-triggered emails, take a moment to consider how your correspondence will come across to the recipient.

Online privacy is a hot-button issue these days. Just because you can capture and use data about your customers doesn’t necessarily mean that you should. The last thing you want to do is alienate a prospect or customer because you are blatantly tracking their activities without their consent. The best approach is to apply the principles of trustcasting and allow your customers to opt in to receiving your messages and to tell you what types of communication they’d like to get. The simple courtesy of obtaining permission can make all the difference between being perceived as a helpful partner or an obtrusive snoop.

Also, as with any email marketing strategy, make sure you don’t wear out your welcome in your customers’ inboxes. Use good sense and restraint in the timing and frequency of your emails. For example, if I browse your e-commerce store, don’t make a purchase, get an email, browse again but still don’t commit, are you going to send me another reminder that I still have items in my cart? These are the kinds of rules and parameters  that you’ll need to establish judiciously for your campaign in order to walk the fine line between smart marketer and pushy salesperson.

Getting started

If you’re not so sure about diving in without your water wings, there are tools that specialize in sending triggered emails, like Vero for e-commerce, Intercom for B2B and SparkPage for B2C campaigns. If email marketing is one of the primary vehicles you rely on to win and retain customers, then it may be worthwhile for you to partner with an experienced software development company to design a customized system that integrates with your website and your CRM and SFA systems to effectively capture and leverage the customer data you need to create the most powerful conversion engine possible.

Setting up an automated behavior-triggered email program does require an investment of time and tactical thinking upfront, but once it’s implemented, your company will reap the benefits of having a razor-sharp communication strategy that resonates with your customers by providing timely information that caters to their interests, preferences and habits.

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Writer’s Block Be Gone! 9 Sources to Mine for Endless Blogging Ideas

“Content is king!” is the chief mantra of today’s marketing. And in the king’s service, many a business has begun blogging with fervor, only to have those efforts languish a few weeks or months later as the novelty wears off before the long-term benefits kick in. The challenge facing any business blogger is not only to produce top-quality content that people will love and share but also to establish a regular rhythm of publishing new content over time in order to build a following and develop a community around the brand. Perhaps you’re a sole proprietor – and therefore a solo blogger – juggling too many responsibilities and too little time. Or maybe you’ve been handed the torch of managing your company’s blog, and you have no clue where to begin. Perhaps you’ve been blogging for your company for some time now and are starting to feel the well of inspiration running dry. Wherever you currently stand on the blogging spectrum, don’t give up. Great content ideas are all around you; you just have to know where to look to find them.

Here are nine reliable sources you can always turn to whenever you need inspiration for that next great post:

1. Your company documents

In the course of doing business, your company cranks out tons of documents. While many of these might seem boring or commonplace, there are seeds of inspiration to be found if you look hard enough. Has someone from your company recently given a presentation at a conference or hosted a webinar? Find a way to mold the content into article form, and embed a video or audio recording (if available) for those who’d prefer to watch or listen rather than read. Has your company published an ebook or whitepaper? You’re in luck! Take that content and break it down into bite-sized snippets for near-ready-made posts. Even the most mundane documents can yield surprising gems. Your company’s annual report, for example, probably highlights the past year’s major accomplishments. Seek out the individuals responsible and interview them about the process of reaching those milestones. Ask them to share lessons learned along the way and advice that would be helpful to others (without giving away any trade secrets, of course). Transcribe your sessions and – just like that – you can check another blog post off your list.

2. Your coworkers

Every person within your organization brings a unique set of skills, experience, interests and expertise to the table. Tap into that brain trust to keep your blog humming with an interesting and diverse array of content. Recruit your coworkers to write posts inspired by their own particular strengths and areas of expertise. Different minds think differently, so you’ll likely discover that they’ll explore ideas that might never have occurred to you. Plus – as a bonus – having many voices and perspectives represented on your company’s blog will only make it that much more useful and appealing to readers.

3. Your customers

If you’re doing your job right, your customers are your blog’s readers. But they can also be an invaluable source of its content as well. After all, who’s better qualified to share creative and practical ideas for how your products or services can be used to make someone’s life (or business) better, easier, richer or more efficient? For example, Evernote regularly features customer interviews on its corporate blog as a way to tout the limitless possibilities its suite of apps offers for personal organization and productivity. Within each post, Evernote includes screen shots from the featured customer to demonstrate the software in action. The firm has even taken this approach one giant leap further, recruiting their best customers as brand ambassadors in areas relative to their particular expertise. For example, they’ve instituted a food blogger as their Home Cooking Ambassador, a workout guru as their Fitness Ambassador and a personal tech expert as their Parenting Ambassador.

4. Studies, surveys and polls

If there’s one thing we’ll never be lacking in today’s information age, it’s data. Every day, new research is being published on any number of topics. Find a recent study that’s relevant to your audience and digest what the results mean for them in practical terms. Do the numbers indicate a shift in trends? If so, how should your readers adapt their approach to stay ahead of the curve? Does the research suggest that the status quo is here to stay? If so, how can your readers respond to make the most of a proven winner?

5. News headlines and pop culture trends

A sure way to spice up any blog post is to find a tie-in to current news headlines and pop culture trends. The trick is to take two seemingly unrelated concepts – such as comedian Louis C.K. and customer service – and create an analogy that brings them together in a way that offers a fresh perspective on a topic that’s been covered countless times before. Whether it’s The Amazing Spider-Man or the Olympics, Tom Cruise or the presidential election, by linking subject matter that may seem either unfamiliar or unoriginal to something very familiar and timely, suddenly your topic – no matter what it is – becomes much more relatable and of the moment to your reader.

6. The calendar

Life – and business even more so – is cyclical. With every year comes tax season, summer vacation, the holiday rush and the lull that follows, a new year and new budgets...you get the idea. Think critically about what types of challenges each season brings for your readers, and write timely posts centered around useful tips and advice to help them through.

7. Your own blog

Just because you’ve written about a certain topic before doesn’t mean it’s off the table now. There’s always more to say or a different angle to explore. Perhaps the original was an entry-level, 101-style post. Now it’s time to delve deeper to help those readers who’ve mastered the basics and are ready to learn more. Perhaps enough time has passed since the previous post that new research has been released on the topic, or industry trends have shifted in a different direction. Revisit the topic and bring your readers up to speed on the latest developments.

8. Other blogs

You never have enough time in the day. Guess what? Neither do your readers. Sometimes the best way to solve both of these problems is not to create new content but to curate the great content that already exists. What does that mean? It means aggregating the best, most useful posts that you’ve found in your travels across the Web into a single post (giving due credit to the original sources, of course). This type of article can be organized either around a central theme (e.g. “Pinterest: 10 Articles to Help You Get Started”) or by timeframe (e.g., a “Week in Review” round-up of your favorite articles from the past seven days). Either way, you’ve done your readers a great service by sparing them the time to cull through all the riffraff to get to the good stuff, and you’ve published another great post that required minimal time and effort to compose.

9. You

We began with one mantra, so let’s finish with another: “Write what you know.” The best source of blogging inspiration will always be your own life experience. Readers engage more with true-to-life stories of obstacles overcome or goals achieved. Generally, if something triggers an emotional response from you – whether it’s excitement, anxiety, frustration or curiosity – you’re likely not the only one who’s encountered this situation or felt this way, which means it’s worth considering how to spin the event into a relevant article for your company’s blog. Also, you can harness personal challenges to put yourself in the shoes of your readers. For example, this article was inspired by my own strategizing process for a new company blog – how would I keep the content flowing when the obvious ran out? Keep in mind, too, that there are certain basic building blocks of life and of business that are universal. Every person who owns a business, for example, has to figure out how to win new customers, what they can do to grow their market share, the best way to manage employees and company resources, etc. If your target readers are business owners and entrepreneurs, any wisdom you have to offer in these areas based on your own personal experience will be appreciated. And don’t be afraid to share your failures as well as your successes; both offer equally valuable lessons for your readers. To make the most of life’s inspirational moments, practice actively paying attention to the events of your day-to-day routines. Keep a running log of content ideas – whether it’s in a physical notebook or just a simple text file that lives on your desktop. As you go through your day, write down every minor annoyance and small victory. Doing so will help train your mind to be aware, and soon you’ll discover that you’re finding blogging inspiration in even the most unexpected places.

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