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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On the Right Path

When I was in college, I had a professor who spoke a lot about the importance of wayfinding. He was especially interested in how the Department of Transportation studied design elements such as typography and contrast to discover the best font and colors to use on their signs. When you drive down the interstate, those big green signs with white lettering make navigation pretty easy. Or consider the wayfinding system of a large airport. Getting from terminal A to terminal D would be a nightmare without all the signs helping us along the way. The core function of good wayfinding is to get a person from point A to point B, quickly and efficiently. In order to do that, a person navigating the system should need only to look for signs to point them in the right direction. Just as an exit sign tells an interstate driver where to get off, the visual cues on a well designed homepage should direct a visitor onto the right path.

Why It’s Important to Funnel Visitors

It is the job of the homepage to quickly funnel users to the information they need the most.We often hear the term “funneling traffic.” It is usually used in the context of getting people to visit a site from the outside via search engines, social media or a traditional marketing campaign. But it is equally important to funnel traffic once they get to your site. Your company may have several types of audiences, and you need to speak to each one in different ways. The type of information provided and the tone in which it is presented will be different depending on the audience. A site that tailors its information to specific audiences needs a way for those audiences to quickly identify which category they fit in or which area they are most interested in. It is, therefore, the job of the homepage to do that efficiently. Success in this area means getting a visitor off the homepage and deeper into the site—where you can convert them from a visitor to a customer or fan. It also means protecting them from purposeless information that gets in the way of what they’re really looking for.

Know Your Audience

Before you start funneling visitors you need to identify your audiences. By knowing your target audience, you will be more confident in knowing how to connect with them. Again, your site may have several target audiences. A healthcare site has to accommodate both patients as well as medical professionals. A nonprofit organization has to accommodate people who want to volunteer their time, those who want to donate money, and those who need to use the service the organization provides. All of these audiences have unique needs and specific requests—but before they can become more than a visitor, your site has to give them what they're looking for. The power of your site relies on your ability to focus on your audiences.

Focus Your Funneling

We’ve all been there: stopped at an intersection, not knowing which way to go. One road with two names. Two roads with one name, but going in different directions. Sometimes you just pick a road and see what happens. And sometimes you get lost and have to turn around—something you certainly don’t want a visitor to your site doing. It's natural for a business to want to accommodate every single visitor that comes to their site. Doing this, however, can quickly lead to a cluttered homepage and information overload. Or, in our transportation analogy, an intersection just like this: If your homepage looked like this, most visitors would simply hit the back button and leave your site, not only confused and turned off, but more important, with a negative opinion of your company as a whole. If your site has many types of people visiting, it is important to identify the characteristics of your core audiences in order to quickly direct your most important traffic to where they need to go. This will keep your homepage clean, simplified and actually make decision making easier for the user. Visitors given 3 choices based on core audience characteristics—as opposed to 10 choices based on characteristics for every visitor—will be able to identify their needs and navigate more quickly. Your homepage does not need to encompass every detail about your company or product. Statistically, only 30% of a visitors time is spent on the homepage. The rest is spent on deeper level pages that are better equipped to handle the needs and interests of your visitors—and move them to action.

Give Them What They Like

Once core audiences have been established, you need to determine how you want to motivate them and what actions you want them to take. It is not as simple as saying, “visitor x goes here and visitor y goes here.” You need to know what those visitors are interested in—what motivates them to delve further and eventually cause them to take action or reach a conversion point. Audiences may be influenced by statistics, testimonials, free trials or product features. By knowing what motivates your audience, you will know how to quickly grab their attention and get them to want to take action. So what kind of action do you want your visitors to take? Of course the ultimate action is often financial, whether that is buying a product or service or donating money. But there are other actions that can facilitate that final goal. You may want first-time visitors to download a demo, take a tour or request more information by filling out a form or signing up for a newsletter. Or perhaps you want to drive people to a physical store using a “find the nearest location” feature.

Bringing It All Together

Now that you know the who, how and why, it’s time to bring everything together in a killer homepage design that will not only look great, but function seamlessly as a visitor’s guide to your site. Many well-designed sites begin with a large introductory headline and a brief opening paragraph that gives the visitor a snapshot of what the company is about or what it is selling. The funneling occurs with individual modules that target a specific audience. Designs should be clean and contain good contrast to quickly identify elements. Headlines should be specific, leaving little doubt who the following information is intended for. Typically, “more” or “continue” buttons are used, prompting the visitor to explore the next level of the site. Often pictures of a product or other graphical elements are used to entice the visitor into wanting more. Here are examples of sites that do this well.

Conclusion

Your homepage is not only a first impression, but the starting point to an experience. A good homepage is a spring board that motivates people to explore more important areas of your site. It clearly direct visitors to the information they need the most to get them to a final destination. And if their journey is a pleasant one, you're one step closer to a repeat visitor, fan, and even customer. Happy trails!

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How 3 Big Brands Went Hard Core With Content Marketing (And the Lessons You Can Learn From Their Success)

In spite of all the hype that surrounds content marketing these days, many businesses still have lingering questions about exactly how to use content as a viable marketing strategy:

• What exactly is content?
• How do I know if this approach is right for my business?
• What resources do I need?
• How do I measure the return on our investment?
• My company sells widgets, so why would we need it?

In the face of such uncertainty, it's human nature – and therefore the nature of business – to look to those around us for guidance and inspiration. This is especially true for brands that have earned our respect. We may not always have access to the carefully guarded data behind their decisions, but where and how those organizations invest their marketing dollars is telling.

So let’s look at how three top brands – a lifestyle products company, a professional services association and an e-commerce behemoth – are investing in content to build relationships with customers and drive sales.

Cooking up content with Williams-Sonoma

Known for its high-end kitchen products, Williams-Sonoma has crafted a customer experience that’s far different from buying discount cookware off the rack at big box stores. Instead, the company has built a lifestyle brand around the idea of just how rich life in the kitchen can be.

As a result, it's no surprise that Williams-Sonoma's website is well stocked with content about the food-lover lifestyle, including recipes, wine, entertaining ideas and gardening tips.

The brand, however, has taken content-as-marketing-strategy a giant leap further by developing a website dedicated solely to kitchen design and remodeling – Cultivate.com – with features like premium photo galleries for design inspiration and a database of remodeling professionals aimed at helping readers create their dream kitchens.

Cultivate content partnerships Williams-Sonoma style

With Cultivate, Williams-Sonoma has done something noteworthy by forming strategic partnerships with both premium brands and remodeling professionals. As a result, they've created both a high-quality remodeling resource for consumers and a powerful sales tool for business.

It's a win/win/win scenario.

First, Williams-Sonoma wins because these partners, incentivized to provide great content for the site, bring additional expertise and value to readers while simultaneously easing the resource burden of producing so much high quality content. Williams-Sonoma can equip your kitchen with gadgetry, but "A Shopper's Guide to White Marble Counters" is outside the brand's focus. Fortunately, premium tile company and Cultivate partner Walker Zanger has the expertise and credibility with customers to fill that content void.

Second, the partners win because William-Sonoma has created a micro-marketplace and platform for engaging with customers already primed for their products. The site's powerful photo gallery feature lets users search kitchen designs by color, layout, style and cost, and all of the content is professionally produced by design and architectural firms eager to feature their services.

Last and most importantly, readers win because they get a better resource for kitchen remodeling, with professionally written content, expert advice, special offers and carefully curated products – all in one convenient package.

Even if you don't have a Cultivate-sized budget, your business can still take advantage of content partnerships and the benefits they provide. The key is to identify other companies that compliment – not compete with – your products or services.

For example, a business law firm could partner with both a CPA and management consultancy to create an advice blog serving local business owners.

Or, as a starting point, consider having other businesses provide some guest posts for your company blog. This toe-in-the-water approach allows you to test how well their content resonates with customers and which potential cohorts are the right fit, all before diving into a content partnership.

Just like cooking, gardening and most other things in life, it's often wise to start small, learn from both your mistakes and your success, and then grow from there.

Content from REALTORS that really hits home

The National Association of REALTORS (NAR) has long positioned itself as the foremost authority on home ownership, and its impressive credentials back up that message. It's the largest trade association in the U.S. with over 1 million members and its own political action committee.

So it makes sense that its brand message to potential clients is that Realtors, as experts on everything from property values to legal issues, are essential to navigating the complexities of buying or selling a home.

The challenge when selling professional services, however, is that you are, according to best-selling marketing author Harry Beckwith, "selling the invisible." There's no product to return for a refund if the customer is dissatisfied, and the stakes are often higher, both in cost and risk. So building trust with your clientele before they sign a contract is critical.

NAR is using content to build this trust and reinforce the perception of its brand as a network of specialized experts through HouseLogic.com, an exhaustive information resource dedicated to all areas of homeownership, including:

• DIY home improvement and maintenance
• Working with contractors
• Outdoor and green living
• Understanding insurance, home financing and taxes
• Education about home ownership legislation and causes
• Working with a Realtor

Want to gauge whether to tackle a home improvement project yourself or hire a contractor?

What's the difference between a standard home equity loan and an FHA 203(k) loan?

Who are Fannie Mae and Freddie Mac?

HouseLogic holds the answer. So what key content lessons does HouseLogic hold for the rest of us?

Build content the REALTOR way

First, build to your brand. HouseLogic draws visitors in with content about curb appeal and customized kitchens, but it doesn't stop there. Rather, it moves beyond these themes common to thousands of other sites and addresses issues more critical for homeowners – issues only the NAR could speak to. This depth and breadth reinforces the REALTOR brand as the definitive information resource for homeowners.

If you're a product company, create content that mirrors the space where your products intersect with your customers' lifestyles. If you provide services, make sure your content approach supports the emotions that you want customers to associate with your brand, whether trust, enjoyment, security or convenience.

Second, hire pros as much as possible. Realtors want you to rely on their professional expertise, so HouseLogic follows that thinking by using experienced content creators who are knowledgeable about the topics they're covering. For example:

One writer covering home decor and improvement, is a "HouseLogic contributor and builder of luxury homes in McLean, Va. She’s been a Homes editor for Gannett News Service and has reviewed home improvement products for AOL."

Another who writes about DIY repairs and remodeling, "has written or edited over 60 books on home repair and remodeling for The Home Depot, Lowe’s, Better Homes & Gardens, Sunset, and Reader’s Digest. He's a former contractor with decades of hands-on experience."

Your organization may not have NAR's resources, but that doesn't mean you shouldn't invest in creating as much great content as your budget allows. In these freelance-friendly times, there are writers and editors aplenty. Or save yourself the hassle and outsource your content entirely to a trusted digital marketing firm that understands the intersection of the Web, content and customer experience.

And don’t forget about photography and video production – two other content areas where it's typically better to hire a pro than to do it yourself. For some brands, a slick video may seem to sales-y while a more amateur style video could come across as more genuine.

Keep in mind, the main objective is not to simply to look professional but to build your reputation as an expert in your field, and hiring a professional can help you find that focus.

Content to cart with Amazon.com

While Amazon.com has built an e-tail empire hawking content such as books, movies and music, the brand's approach to connecting with customers through content is just as impressive.

Unlike Williams-Sonoma, NAR and probably 99 percent of other companies using content to grow their businesses, Amazon has chosen to buy rather than build, to purchase a stake in pre-existing communities and their rich content rather than producing their own. And boy have they picked winners.

IMDB.com (Internet Movie Database) is essentially the Wikipedia of film and television. The content is entirely created by the user community, covering cast lists, photos, trailer clips, script overviews, production notes, trivia, industry news and much more. It's the destination site for lovers of film and television.

Similarly, DPReview.com (Digital Photography Review) has been providing in-depth reviews of cameras and photography equipment for years, building a large and engaged community of pro and amateur photographers who share their questions and insights in forums and their photos in galleries.

It's not difficult to see why Amazon would want to tap into these content communities. Ads and obvious calls-to-action allow site visitors to easily move from an article about a movie or camera to the corresponding product page on Amazon.

But Amazon has very impressively exercised much restraint here, choosing to be present in the content but not dominate it. In other words, Amazon didn't start meddling with what the community had built. To do so would have meant a breakdown of user trust and therefore site traffic and sales. They don't care which camera or movie you buy, as long as you're buying it from Amazon.

Connecting with content communities

Amazon is a trail-blazing company in many ways, and their decision to to plug in rather than publish on their own is a path worth considering, especially for organizations just starting out with content marketing.

You don't have to build a great content site if you can buy one that's already providing great content and has a loyal following. If that sounds too expensive, then look for a small but respected blog in your niche market to use as a test project.

If you can't buy at all, you can still make the most of other people's content by growing your own presence in their communities. Engage in forums and contribute content to their sites.

If you do buy a site, stay out of the way. DPReview's press release about being acquired by Amazon includes a reassuring "we-won't-break-it" quote from Amazon CEO Jeff Bezos: “DPReview.com is by far the most authoritative source anywhere for straight talk about new digital cameras. We at Amazon.com have been their fans for a long time, and we extend a big welcome to the dpreview.com team.” The release goes on to reassure everyone that the site "will continue to function as a stand-alone operation."

It will be tempting to try to bend the conversations and content in your favor and promote your products extensively, but such heavy handedness is a quick way to kill an online community. Don't ruin the trust that's already been created between the site and its followers.

These themes of building trust and providing value are the common threads that connect Amazon, the National Association of REALTORS, Williams-Sonoma and every other company that's doing content marketing well. It is without a doubt the most important lesson we can learn from their examples.

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