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.

---

Five Tips to Fuel Your Next Launch From the Coolest Cooler's Record-Shattering Kickstarter Campaign

62,64 backers. $13,285,226 dollars. 26,570% of the fundraising goal met. By any count, these are staggering figures – even more so when you discover that they all pertain to a cooler. Specifically, we’re talking about inventor Ryan Grepper’s Coolest Cooler, a high-tech party-on-wheels that boasts fun-inducing features such as a built-in blender, speakers, USB charger and much more. It has also surpassed other headline-grabbing Kickstarter campaigns, including the Pebble smartwatch and the Veronica Mars Movie Project, to become the site’s most funded campaign ever. Perhaps the most surprising fact about this record-smashing campaign, however, is that Grepper’s first attempt at funding the Coolest Cooler through Kickstarter failed less than 12 months ago. So what were the sparks that set the second campaign ablaze? And how can you apply these lessons to ignite your next marketing campaign or product launch? Let’s take a look:

What was different this time around?

Before we look at the exact lessons that this campaign can teach us, it is helpful to consider what was done differently on this second, wildly successful campaign versus the first one which did not meet its funding goal.

• The campaign was launched during the summer months, rather than the winter.
• The design of the Coolest was revamped and updated.
• The funding goal was lowered.

In addition to these changes, the second campaign also benefited from supporters who backed the idea the first time around. That first campaign fell short of its goal of $125,000, but it did generate $102,188 in pledges from 279 supporters – and those supporters were first in line when the second campaign launched. So what lessons do these changes, and the success resulting from those changes, teach us?

1. Timing is key.

The first time this campaign was run, it was in December. This time, it was done in the summer, when trips to the beach and having an amazing cooler are much more in people’s minds. As the Coolest’s inventor told Geekwire in a recent interview, “launching a product when backers are most likely to be receptive makes a difference.” This same principal holds true for any marketing campaign. You need to launch your campaign when the time is right. For instance, take the week of Thanksgiving. The company that I work for does no marketing pushes during that week. This is because we are a B2B company, and the customers we work with are either off during the week of the Thanksgiving holiday or, if they are in the office, their mind is certainly not on making new business technology decisions or purchases. For a B2B company, this holiday week is not good timing for a campaign. If, however, you are a B2C business, this week is golden! The day after Thanksgiving, commonly known as Black Friday, is one of the biggest shopping days of the year, followed a few days later by the similarly popular Cyber Monday. This entire holiday weekend is filled with ads and promotions for B2C companies, because their customers are in the mindset to buy during that time. Timing is important, and the exact timing that will work for you may be different than what will work for other companies. You need to think about your audience and what their mindset is and you need to consider your product and whether or not there is a specific time when it will most resonate with potential buyers. You likely even have some offerings that make sense at certain parts of the year and others that are most suited to different time periods. Kicking off a campaign at the right time can be the different between success and failure, as shown in the two different campaigns for the Coolest Cooler.

2. Design matters.

Another change that was made to the Coolest for this second campaign was the product’s design. The new design is much more vibrant and exciting than the first. With sleeker lines and a bold, orange color that really stands out, as well as better integration of the component parts, the improvements to the design of this product played an important role in the amazing success that it has seen on this second go around. Design is important; yet it is often one of the first things to be compromised on when budgets are being reviewed. Using pre-built templates as opposed to hiring a design professional to craft a look and feel unique to your needs and ideas is an option that too many companies bypass in order to save some money, but as we have seen with the Coolest, design absolutely matters. Skimping on design is the same as skimping on success. If you are going to launch a campaign, do it right and give it the best chance to succeed by investing in design.

3. Set a realistic bar for success.

Whenever you initiate any kind of marketing or sales campaign, you will have a goal that you are trying to achieve. If you are promoting an event, you will have a certain number of attendees you hope to attract. If you are selling a product, you will have a set number of units you may seek to move. In the case of Kickstarter, there is a “funding goal” that is trying to be reached. While the Coolest’s first campaign came close to that funding goal, the organizers of this campaign decided to drastically lower their goal on the second go-around, from $125,000 to $50,000. For crowdfunded campaigns, there is wisdom in having a lower threshold for success. Backers are often more likely to contribute to a project if it is close to meeting its goal or if it has already met that goal, which guarantees that the project will move forward. The backers who pledge to a project that does not meet its goal are not charged their pledge amount, so it is not like they are out any money if a campaign fails, but people who back a crowd funded campaign are likely to be excited about that campaign and the “rewards” that their pledge will bring them. If they know that the success of a campaign is all but guaranteed, they are apt to jump in and join the fun instead of waiting by to see what happens. By lowering your threshold for success, you actually encourage people to contribute earlier in the campaign! In business, having a realistic measurement for success means that a campaign can be seen as positive – and if a campaign yields positive results, it is more likely that you will be able to do other campaigns in the future! On the flip side, if you are unrealistic in your goals for what a campaign will produce, you will be disappointed when the results fall shy of what you were aiming for, even if the numbers you end up with are totally respectable. Set a realistic bar for success and give yourself the momentum to kick off future campaigns that can build on that success!

4. Passionate customers are like gold.

When the second campaign for the Coolest was kicked off, it already had a few hundred passionate supporters – those who had supported the first campaign. These backers helped spread the word on the Coolest, and coupled with the lower funding goal, positive results were seen very quickly (the funding goal was reached in less than 36 hours)! The passion of those initial backers was contagious, and once the campaign started rolling, the success was amazing, and it all started with help from some passionate and vocal supporters. Having customers who are passionate about your company is one of the best ways to help spread the word on what you have to offer. You can promote your offerings on social media as much as you want, but it often just comes across as a company pitching their products. When a person who is not connected to your company does this, it is received very differently. Customers who love your company and evangelize to others in their social circles hold weight with their connections that you do not possess. If a company says that they have “the best prime rib in the state”, that is seen as marketing copy, but if a friend of yours updates from a restaurant that they “just has the best steak I’ve ever had!”, you view that message much differently. It is not seen as marketing, it is seen as a recommendation from a trusted source, a friend whose opinion you may value. While the marketing speak may not get you to try that restaurant, your friend’s recommendation likely will. This is why passionate customers are like gold. They will help spread the word on your business to people who trust them. In turn, you then have the chance to “wow” new customers and create new referral sources that can result in amazing business success, just like what we see with the Coolest campaign.

5. Ask for help.

The final item we will point out actually happens at the end of the video introducing the Coolest. Not content to hope that people will share the information on the campaign with other in their social circle, the video ends will an actual request for those share. Arrows point to the social sharing button on the page, directly underneath the video, prompting viewers to click a link and share that video. Over 350,000 share of that video have been done on Facebook alone (compared to a little over 700 on the first video/campaign). Yes, part of this success in social sharing comes from the overall success of the campaign itself, but you cannot discount the power of asking people for help! Making social sharing buttons available is step 1, but if you want people to use them, ask them to do so! Sometime, making a simple request is the difference between a person clicking that link, and sharing your content, and bypassing that option altogether.

In summary

The campaign for the Coolest is obviously not typical. You should expect to achieve the same, incredible level of success (remember, set those realistic expectations!), but by following some of the principals that we see at play in this products second campaign versus its first one, we can absolutely find more success in our own campaigns and online initiatives.

---

Death of a Salesman

The salesman is dead. Long live the relationship-builder.

If you're like most entrepreneurs, you love what you do. You have a passion for your ideas, your products and your services. But you hate selling those ideas, products and services with a passion, too. And you know what? Your customers hate being sold just as much as you hate selling them. So what's the solution? Forget everything you thought you knew about sales. In today’s marketplace, growing your business is as simple as building relationships – something you’ve been doing your entire life. There’s no magic formula for success. You don’t need to be a fast-walking, smooth-talking salesman to get people’s attention. You don’t need to put on a dog-and-pony show to convince them you are the best at what you do. Flash isn’t what’s going to get the job done. Just be yourself and do what comes naturally. Focus on serving others. Have conversations. Talk plainly but with authority. Be authentically helpful. Let your expertise do the heavy lifting. Lead the way to success for your prospects. Say goodbye to your days of being a salesman once and for all. Here are the dos and don’ts that will guide you in building relationships that lead to business growth.

Find your niche. Don’t try to be everything to everyone.

The salesman will eagerly talk the ear off of anyone and everyone that will give him the time of day, regardless of whether they have any real use for his products or services now or in the future. The relationship-builder can say with confidence that he is the best man for the job because he knows his strengths and his customers’ needs well enough to know that it is true. When you’re trying to grow your business, it’s tempting to cast your net far and wide to reel in any and every prospect that crosses your path. But grasping at straws is no foundation for long-term, mutually beneficial relationships. The key to convincing prospects that you are their best choice is truly believing that you are, in fact, the best choice for them. This type of self-assuredness starts with knowing where your depth of expertise lies and identifying those who can benefit most from it. This requires you to be resolute in defining your service niche, clear in identifying your target audience and focused on finding ways to connect the dots between the two. When you find the people that you are meant to serve, convincing them to let you help them reach their goals is a much less difficult proposition.

Pull, don’t push.

The salesman cold calls. His is the Russian roulette approach to business growth. He spins the wheel and hopes for the best. The relationship-builder endeavors to establish a foundation of trust before ever asking a prospect to entrust him with their time, attention or hard-earned dollars. We’ve said it before, and we’ll say it again: you must be identify the tribes of people who represent your target market, find the places where they live online and earn your right to walk among them as a leader. To be accepted by their community, you must first contribute. This will likely require being an active participant in social media channels, where you can interact directly with current and prospective customers in ways that are helpful, insightful or even entertaining. This almost always requires ensuring that your own online home base – your website – provides value beyond compare in its free content offering, whether that takes the form of blog articles, videos or other types of resources. After all, as a relationship-builder, you must be willing to give away some of your time and expertise in order to plant the seeds of trust and open the lines of communication. But the benefit of your efforts is that when someone is ready to pull the trigger on a buying decision, your name will be the first – and maybe only – one on their call list.

Do your homework. Don’t make assumptions.

The salesman has a one-size-fits all pitch for every customer. His product doesn’t change, so neither does his approach. The relationship-builder does the legwork necessary to ensure that the relationship starts off on the right foot. He recognizes that no two customers are alike, and if he doesn’t have a fundamental understanding of the problems they face, how can he propose to address them? If you are given the opportunity to meet with a prospect, gather as much intelligence as possible beforehand. After all, when you have the entirety of the Internet and its infinite font of information at your disposal, why not use it? What can you learn about the person you’re meeting with? What is their professional background? What experiences or interests do you have in common with them that can help you break the ice? What’s the story of the company they represent? What does their competitive landscape look like? What opportunities can you see that they might not be taking full advantage of? You’ll be amazed at what spending a few minutes with Google, LinkedIn, Facebook and Twitter will reveal. Ultimately what you’re really looking for are the questions, concerns, issues and insecurities that keep them up at night. If you walk in and show them that you understand their challenges from their perspective, they’ll be more easily convinced that you also know how to overcome them.

Have a conversation. Don’t make a pitch.

The salesman loves the 30-second elevator pitch. He comes out swinging right off the bat with a perfectly polished speech about how wonderful his products or services are. The relationship-builder asks questions first. After all, this meeting is about serving the prospect’s needs, not his own. While it is important to do your homework before a prospect meeting, don't make the mistake of assuming that you already have all the answers you need. And certainly don't script out the interaction. Ask a lot of questions. Confirm the conclusions you drew from your research. Be prepared to improvise. You know your business, and if you’ve done your due diligence, you know their business pretty well, too, so there’s no need to be apprehensive if the conversation takes an unexpected turn. Don’t become so wrapped up in your own presentation that you steamroll over your prospect. You should listen at least as much as you talk. Make sure you truly hear what the prospect has to say. Pay close attention to their body language and facial expressions for cues that can help you steer the discussion in ways that reinforce their trust in you. Remember: a pitch is a push; a conversation is a two-way street.

Tell a story, don’t tout features.

The salesman has a laundry list of features that he wants to make sure he conveys to a prospect so they know just how special his product or service is. The relationship-builder doesn’t talk in bullet points. He paints a picture of the end result. Tell your prospect the story of their future success and how you're going to help them achieve it. Give them a reason to believe why will it work, what will it be worth when it does and why are you the one that can make it happen.

Be authoritative, not arrogant.

The salesman is unshakably confident – to such an unnatural degree that he comes across as phony and affected, as if he’s merely putting on a well-rehearsed show. The relationship-builder demonstrates a different brand of confidence – one rooted in the foundation of authentic expertise and experience. When you talk to a prospect, speak with authority, not arrogance. Demonstrate that you are a master of your field, but interact with them as an equal. Relate to them as one person who understands the challenges of growing a business to another. And never stoop to tearing down the competition. Unless your prospect broaches the subject, there’s no reason even to acknowledge their existence. This is your time to shine; make the most of it.

Be patient, not pushy.

The salesman wants a commitment today because that’s what serves his interests. The relationship-builder lets the customer decide when they’re ready to take the relationship to the next level because that’s what serves the client’s interests. That’s not to say that you should meet with a client and then ignore them until they decide to pick up the phone and call you again. You should touch base periodically, but do so in a way that demonstrates your continued mindfulness of and investment in their needs. Reassure them that you’re ready to hit the ground running if and when they choose to move forward. Remember that every touchpoint – whether it occurs in person, over the phone or via email – represents another chance to strengthen the bonds of trust that exist between you.

Be a nurturer, not a closer.

The salesman is a great closer. Once he has a signature on a contract and money in hand, his job is done, and he has already long since turned his attention to his next target. The relationship-builder never closes. He pays attention, he nurtures, he earns the right to continue serving the customer’s needs. "Closing" is a dangerously misleading term – one that is symptomatic of the old school of sales. When a customer makes the choice to do business with you, you’re not closing anything. You’re only beginning the process of cultivating a relationship with someone whom you hope will be a lifelong client. Remember that this person and this company have decided to take a chance on you. To them, it’s still a roll of the dice at this point. This is your opportunity to prove to them that their gamble will pay dividends in the realization of the future success you promised. Think of every interaction you have as an opportunity to cement their continued loyalty. Don’t just meet their expectations; exceed them at every turn.

R.I.P., Mr. Salesman. Hello, Mr. Relationship-Builder.

Follow the guidelines we’ve outlined here, and you’ll inevitably find that your prospective customers respond positively to seeing that their needs come first and that you have a genuine interest in helping them advance their own goals. If you approach the task of growing your business as a mission of earning trust and building relationships with people rather than just closing one sale after another, you’ll find not only that it’s not a dreadful task but that it’s actually enjoyable and even rewarding. So what are you waiting for? Get out there and start building!

---