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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Deal-Breakers and Dead-Ends: Six Turn-Offs That Alienate Website Visitors

Without question, the task of driving new visitors to your company’s website is not easy. Success requires serious strategic planning and a significant investment of resources, from content marketing and social media promotion to search engine advertising and offline marketing initiatives. So once those hard-won visitors arrive, why in the world would you immediately turn them away? Well, you certainly wouldn’t do so intentionally, but there may be deal-breakers and dead-ends lurking within your site that will repel a potential new customer faster than a cheesy pick-up line and cheap cologne. Here are six mood-killers that you must avoid if you hope to woo new customers, entice them to engage with your site and provide such a positive experience that they will tell all their friends what a great catch you are:

1. Download our app

If you’ve invested in creating an app for your brand, naturally you want to bring this to the attention of mobile visitors and encourage them to download it. But it’s all too easy to cross the line between promoting your app and perturbing your customer. Recently, I was in the process of working on an email marketing campaign using the popular service Constant Contact. I found myself with a spare moment between meetings, so I grabbed my iPad and set out to make a few quick edits to my draft. When I logged into the site and selected the email I wanted to edit, I was greeted with a message asking me if I wanted to download “QuickView”, their app for iPad and iPhone. But I was in a rush and had no interest in downloading and figuring out how to use their app to accomplish the simple task of making changes to an email I had already begun crafting. So I clicked “No, thanks” and was then returned to my list of emails. Once again, I clicked the email that I wanted to edit – and once again I was greeted with the prompt to download the app. I was stuck in a loop of non-productivity. Unless I installed the app, I could not complete my desired action on my iPad. By any standard, this was a very poor user experience. Unfortunately, this is not an unusual scenario. If you browse the Web on your mobile device with regularity, you’ve undoubtedly encountered this type of “Download our app!” a number of times. However, the problem arises when downloading an app is the only viable way to interface with a site via a mobile device and the objective of providing a good user experience is sacrificed in the interest of securing a permanent spot in the user’s pocket. Instead of trying to force your app on mobile visitors, take a more subtle approach. For example, displaying a small banner at the top of your site’s mobile view is a great way to make users aware of your app without disrupting their workflow or compromising the quality of their experience. Never, ever require your visitors to download an app to use your site; rather show them the respect of allowing them to interact with your brand in the way that they most prefer, whether that’s through a browser or through your app.

2. Give us your digits

We get it. When a new visitor comes to your website, you want to capture as much information about them as quickly as possible so that you can continue your engagement with them long after they’ve moved on to other corners of the Web. With this motivation in mind, there are many sites that immediately greet new visitors with a pop-up-style message. Instead of seeing the expected home page content, the user is presented with a request to complete a form to provide their contact information in exchange for a welcome discount offer or to follow the company on Facebook for future updates and promotions. Either way, these pop-ups are very disruptive to the user experience and provide obstacles that only make it more difficult for the visitor to accomplish what they originally came to the site to do. Think about this experience for a moment. Yes, it would be ideal if every visitor to your site would willingly complete a short form that gives you invaluable data. But in reality, no one comes to your site for the express purpose of helping you market to them, so by giving such a message top priority, you are telling them that your needs are more important than theirs. That’s a pretty poor way to start the conversation. This phenomenon is so pervasive that there is even an entire website – tabcloseddidntread.com – dedicated to these types of interruptive messages. While the writing on the site is a bit snarky, the point it makes is a valid one: these messages create a poor user experience from the outset. As a result, any value you might gain in collecting user data is quickly negated if that user has no interest in continuing their engagement with you because you’ve created such a negative first encounter. Instead of leading off the conversation with your survey request, Facebook follow prompt or current promotion, simply allow your visitors to dive right into the site to find the information they’re seeking or complete their desired task. Keep your mailing list sign-up and Facebook links in your site’s universal framework, and if you do your job in creating a positive experience for them, your visitors will willingly allow you to become a presence in their email inbox or their Facebook news feed all on their own.

3. One-size-fits-all framework

Today’s website visitors are accessing our sites on a wide ranging variety of devices with a myriad of different screen sizes, and yet, many sites are still built with the “desktop-only” mindset of years ago. This is a major strike for users on mobile devices who expect more from their experience than simply seeing the desktop site shrunk down to display on their small screen, with text that’s illegibly tiny and links that are nearly impossible to press. The Web is no longer a one-size-fits-all world. That being said, while one “size” may not fit all, you can still have one site that will work seamlessly on a wide variety of screen sizes and devices. By employing responsive design, you can build a singular jack-of-all-trades workhorse that dynamically reflows its layout based on the user’s screen size. The image below illustrates the difference between how desktop-only layout (i.e., the “do nothing” approach) is rendered on a phone’s browser versus a site that’s optimized for small screens with a responsive approach. Read more: Website Design for a Multi-Device World

4. Vexing video

Video can be a powerful way to convey information, but if that video fails, then your message is lost. There are a few ways that video can provide a stumbling block to engagement with your site visitors. First and foremost, not all video formats are compatible with all devices. For instance, Flash videos will not play on iPhones and iPads, which means that instead of seeing your excellent video content, every user on an iOS device will get a message that says something to the effect of “This video cannot be shown on your device.” Other visitors may not want to download a large video due to limited bandwidth or data download concerns, and as a result, your content is not able to achieve the effect you desire. In still other cases, your visitors may be able to download and view a video but may not be able to use audio – perhaps because they are in a public area, such as an office or store. Video without audio is fairly anti-climactic, so if the only way they can consume your message is by watching and listening, then you will leave these visitors cold. The moral of the story is this: If you are going to use embedded video on your site, make sure to choose a format that can be played on all devices and to reinforce its key message and content in other areas for visitors who may not want to watch or listen to a video.

5. The mystery of the disappearing navigation

Your website’s navigation structure is a critical component of the user experience, and the links it contains are the gateway to the information your visitors are seeking. For sites with lots of pages and a deep sitemap, a common design schema is to use drop-down menus that show subpages contained underneath the site’s top-level navigation choices. These drop-down menus are typically powered by Javascript. But what happens if the user has disabled Javascript in their browser or if that script fails to load for some reason? When this happens, your navigation menus may never be shown, leaving visitors stranded with no way to easily maneuver through your site. Failure to load a script is not the only way that navigation suddenly goes missing. Some sites with very elaborate navigation options for the desktop version eliminate the bulk of those options for mobile devices. This can create a dead-end for users who are familiar with the desktop version and are left searching aimlessly for links they will never find. Instead of eliminating links for smaller screens, find ways to present the same content in a way that’s better suited to the device’s display. Additionally, make sure that your site’s navigation has a fallback option should a script fail to load or something else unexpected happens.

6. Page is loading…

Today’s websites have become fat, bloated behemoths. Oversized images and animations, embedded videos and other features have contributed to the substantial size increases we have seen in webpages over the past few years. Bigger pages mean longer load times, which is a major turn-off for visitors who have no lack of other suitors vying for their time and attention online. Better website performance will yield better website results. By optimizing your site’s performance and ensuring that it loads quickly even for visitors with slower connection speeds, you can avoid showing users a half-loaded page and hoping that they will wait around to see the rest. More often than not, that’s a losing gamble, and the visitor you worked so hard to win will turn elsewhere to find a site that will perform according to their expectations.

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The Cult of Personality (Part 2)

Recently Fame Foundry had the opportunity to talk with Eliza Metz, the "Violet" half of Lime & Violet. What began as a late-night conversation between friends led to a podcast for the yarn-obsessed that struck a chord with fellow fanatics. The secret to their success is equal parts serendipity and savvy, as they have carefully grown and nurtured their legion of dedicated followers into a full-fledged knitting empire. Below Eliza shares some of the lessons she's learned along the way. FAME FOUNDRY: Thank you for sharing this time with us. ELIZA METZ: My pleasure. Did someone mention an open bar? (kidding, kidding...) FAME FOUNDRY: You're known as Violet to your audience and most of the world. What's the origin of this name? ELIZA METZ: Lime & Violet was born from late-night hysteria, actually. Miss Lime and I were driving to a fiber festival in Colorado about nine hours or so from where we live. We'd left late, and were having a few way-way-way-too-much-coffee moments, since it was 2 a.m. and neither of us were very coherent. At one point, she misheard something I said, thinking I'd answered "lime and violet." The whole weekend, any time we didn't understand something, we'd just look at each other, say "lime-n-violet," and laugh at our own joke. We still do that even now. On the way home, I told her we should start a podcast. There were only two knitting-related podcasts at the time (versus the 100+ there are now), and after explaining what a podcast was, she agreed that it'd be a fun little project for our spare time. The name came from the inside joke, and since she really wanted to stay anonymous to avoid the crazies that proliferate on the Internet, we decided I'd be Violet and she could be Lime. We had no idea that neither of us would ever have spare time again, or that random strangers would know us better by our "anonymous" names than our real ones. (Not that that's a bad thing, either, really.) FAME FOUNDRY: So the podcast, which evolved into this massive business, was purely and spontaneously created out of your own interest in knitting and putting on a show for the fun of it? ELIZA METZ: Simplistically speaking, yes, that was the genesis of the thing. It's not to say we didn't have a plan, however. I'm one of those people who writes business plans for fun, so we had a pretty good idea before we ever put voice to mic where we wanted it to go. The problem, we found, was that we didn't dream big enough or fast enough, really. It took on a life of its own pretty quickly and started branching out pretty organically from there. But, yes. It was just for the fun of it at the time. FAME FOUNDRY: Sounds like you were expecting this from the beginning. ELIZA METZ: We were. I think we didn't know the whole extent of just how big it would be, or what it would spawn, but we knew it had the potential to be big. Or maybe we just didn't know how big "big" really was at the time, which is probably a good thing. If we'd known about all the work, we may have given up and decided to take up macrame instead. FAME FOUNDRY: What was the first sign that let you know this was big. ELIZA METZ: Oh, man. That's an easy one. A couple of months after we started the show, we had quite a few (we thought at the time) online "fans." The community was starting to form, and podcasts in general were becoming a bit more well-known in yarncrafting. It wasn't uncommon to get e-mails with offers of yarn or undying love, and we were okay with that. It was all kind of remote and surreal. Then one night we were in a local yarn shop in Nebraska, and a customer -- a complete stranger -- stopped her transaction and asked if I was Miss Violet. blinkblink She recognized me by my voice, which I hadn't really expected. So we made a huge joke about it all, started calling ourselves rock stars and carried well-publicized purple and green Sharpies in our purses so we could sign boobs at yarn stores. No, really. (And, yes, we've signed them.) FAME FOUNDRY: And thus began 'The Empire'? ELIZA METZ: Of a sort. There was a fair bit of work from there, but it was the first time we realized that we had a little bit of sway with the knitters, and it sort of drove home the fact that we had this fabulous base of customers who were listening to us, for sure. Empires aren't built in a day. FAME FOUNDRY: And the Empire seems to even refer to itself as 'The Empire." Quite a stunt there. ELIZA METZ: Of course it does. Luckily, we're benevolent rulers. FAME FOUNDRY: So everything -- the blog, the store -- evolved out of the podcast? ELIZA METZ: In a sense, yes. All of it sort of grew organically around the podcast's evolution. It's a little hard to explain, really. See, while a lot of the places that the podcast has grown into are completely random and unexpected (happy accidents, of a sort), we sort of knew where we wanted it to go from the beginning. We had this ridiculous business plan before we even put down the first tracks -- more of a wish list of activities than an actual business plan, per se. We had it structured so that growth would be based on the number of listeners because we truly thought that it would give us quite a bit of time to do things. At 100 listeners, we'd set up the message boards to let the fans talk to each other and start building a community. At 500 listeners, we'd start putting together the first knitting pattern book...that kind of thing. I remember writing down a milestone for 5,000 listeners and thinking that was just crazy, that we'd be waiting for YEARS before that ever happened. Three months later, we hit 5,000. I sat back, took a screenshot, sent it to Lime and told her that, perhaps, we should look into changing the structure of our business plan. Ahem. Duh, right? The problem, we found, was that we didn't dream big enough or fast enough, really.Not all of what we've done has been a part of the plan, since we had to scrap most of that pretty early on. We had a catastrophic lightning strike that took out our first book and the back-up copies thereof. Local hotels laughed at us when we approached them about doing a knitters' retreat on a full floor of a hotel (even though we had over 1,000 people who had filled out the form saying they'd come to our slumber party weekend). We tried partnering with various yarn/knitting-related companies for co-branded product support, but we found that contract law isn't quite our strong point and the brand started diluting a little. Lots and lots of learning experiences in that first year or so. If you want something done right, you need to do it yourself. So we started doing dyed sock yarns, which sprouted off into bath and body stuff when we talked a lot about the indie companies. The blog was just a way to pass on information to the listeners every day, since the volume of really fabulous projects and patterns and yarns coming into L&V Central was just too much to talk about on a weekly show. We keep learning all the time. It's one of the best things about the way we just dived right into this. Had we KNOWN the kind of work we were in for, we'd have turned tail and run, honestly. Our ignorance saved us from the get-go, really. The big lesson from the past year -- at least for me -- has been that narrowing the focus of what we're doing isn't nearly as counterproductive as I thought it'd be. We launched the Intention Yarn line, which has a very, very narrow focus (and, uh, intent), but it does 10 times better than our generic sock yarns did, largely because people know what they're about. They get the concept, so it's something they can buy not just to support their Lime & Violet addiction, but for a specific purpose of creation, and they seem to dig that. Same with things like the Neil Gaiman project, TheFatesThree.com -- which isn't just generic knitting patterns, but patterns all created with a theme around a particular author's works -- the narrowing-down process made the focus just that much more clear for both listeners and the occasional non-listener who stumbles upon it. There are other projects unrelated directly to Lime & Violet -- KnitLife, which is an oral history collection process that's just getting going, for instance. While it's not directly related to the show, I've got no illusions that being "known," so to speak, doesn't help promote the projects or get the word out there. Whether or not it's an obvious connection, the Empire doesn't just affect the success of the stuff we do -- it's the basis for it. FAME FOUNDRY: You share a lot of yourself with your audience and the community that has formed around the Lime & Violet brand. Where do you draw the line between your personal life and what you broadcast to the public? ELIZA METZ: There's supposed to be a line? (You can't see me right now, but trust me, I'm laughing relatively hysterically.) If someone has listened to every single show, they know more about me than my own mother. Before there was a Lime & Violet, there was me. And way back in the olden days of the Internet, when you used to have to do markup by notepad and ftp everything from a command line and design was largely a matter of tables with varying cellpaddings (and we rode dinosaurs to school both ways uphill in the snow...), I was one of those freaks with an online journal. (This is in the pre-Greymatter, pre-typepad, pre-blog days. Told ya it was in the prehistoric era.) I was one of the original 50 nutjobs who thought that their own lives, as mundane as they may be, were interesting enough to warrant putting it out there for the world to read. (And, incidentally, comment on. Good heavens, the e-mails...) Coming from this background and posessing of some kind of weird self-revelatory urge that's probably borderline pathological, I don't have a line most of the time. There are some things that we don't talk about much on the show, and we try to maintain the anonymity of the innocent (relatively speaking), but for the most part, if someone has listened to every single show, they know more about me than my own mother. I'm still not sure if that's a good thing or not. Contrast that with Miss Lime, who keeps a very strict bubble around her identity. No pictures of her are allowed on the site other than one that she swears looks nothing like her. Nobody knows her real name. For a while, we even kept it secret that we're in Omaha, though that slipped out through other channels. She's pretty convinced that the crazies would find her if they knew her name, and for that, I can't really blame her. The Crazy is pretty much everywhere on the Internet. FAME FOUNDRY: You mentioned the "crazies" on the Internet. What's the craziest encounter you've had with a an Internet fanatic? ELIZA METZ: I could tell you stories that would probably make Dateline NBC producers salivate. For the most part, we've found that knitters are a pretty sane bunch, with a few notable exceptions, but the combination of Internet anonymity and pseudofame still brings out the occasional whackjob. For instance, once we mentioned on the show that we love our fans. We love them so much that we'd love to invite them all over to my house for a great big slumber party. I mentioned that I have a guest room and a couple dogs that are quite fond of visitors, and I make a mean cookie. While intended to be kind of a joke, apparently I sounded serious enough that one girl found my real name, looked up my address and drove NINE HOURS to my house, where she got out of the car with four overnight bags (three of them were knitting projects-in-progress, I might add), and just expected to stay. Um. Oh-kay... She ended up staying three days. Great girl, but omg we never said anything like that again. Then there was the lady who didn't understand personal space and kept petting my hair. Or the one who named her babies after us. Or the one who, when we didn't write her back in an arbitrarily selected timeframe, made a WE HATE VIOLET website. I wish I was kidding. The Crazy. She is everywhere. FAME FOUNDRY: You're active on Twitter, Facebook and Plurk, though you use Plurk as your micro-updating site of choice. Why's that? When it comes to what we're trying to do -- building a community rather than just a following -- there needs to be interaction. ELIZA METZ: For me, it's a matter of connection. Twitter and Facebook and all the other myriad microblogging sites out there are all fine and good for most things, but it's largely one-way communication. You broadcast what you're doing to the world. Which, again, is all fine and good, if that's what you're looking to do. When it comes to what we're trying to do -- building a community rather than just a following -- there needs to be interaction. A conversation rather than just blindly telling people what you had for lunch. And Plurk has a format that depends on conversation and commentary to stay interesting, so people get involved. Once a fan is invested in a conversation, either with me or with the other followers, they feel like they're part of it. Instead of just reading ABOUT someone, they're talking WITH them. It's just a more human format to me, and it's the one I end up going back to over and over again as a result. FAME FOUNDRY: Art journaling is a big part of your life. How has this influenced your artistic approach online? ELIZA METZ: Through art journaling, I've found out a couple of big things about my own aesthetic. I really like handwritten things (more personal). I can have all the colors in the watercolor box, and I'll still end up with a white or mostly white background (which unclutters things for me visually). And white space keeps me sane. I don't claim to be any kind of techno-head web person who writes code in my sleep. In fact, I'm one of those freaks who still uses Notepad for most things. Call that a disclaimer from a semi-luddite here. That said, almost everything I put out there has a lot of that same, rustic, plain-looking, hand-hewn feel to it -- partially from just not knowing how else to do anything, and partially because that IS my approach. And if it works, I see no reason to fix what isn't broken. I'm just happy when there aren't broken links and people look at it now and again. FAME FOUNDRY: Thank you for sharing your vast experiences in building this empire you have. ELIZA METZ: And thank you for the interview. That'll be four goats and a skein of good cashmere, payable to the jester by the door. Elli Metz is the benevolent ruler of the Lime & Violet empire, which includes the independent republics of media, yarn, perfume and history. When she's not wearing her crown (which she often does), her job title is "starmaker," a fact that still amuses her.

 

 

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