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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Small Changes, Big Impact: 5 Things You Can (and Should!) Do Today to Boost Your Website’s Performance

Every spring it happens like clockwork: the temperatures get warmer, the days get longer and everything in nature becomes more vibrant and colorful. Along with these changes in the great outdoors comes the irresistible urge to clean house and embrace a fresh start. Why not keep that motivational momentum going and apply it to your business – and, more specifically, to your website – as well? After all, there’s no time like the present to sweep away the old and outdated and bring in fresh new ideas and technologies. But you don’t necessarily need to dive head-first into a full redesign and all of the time and expense that entails to reap measurable results. Instead, here are five small steps you can – and should! – take today to ensure that your site is up-to-date, relevant and doing all it can to bring you new customers and grow the community around your brand:

1. Reposition your contact form.

For most website owners – especially those in service-based businesses such as law, accounting, consulting, real estate, etc. – the key “win” for their site is when it motivates a visitor to request more information or schedule a meeting. Contact forms are a ubiquitous website staple intended to provide a convenient – and highly measurable – avenue to initiate communication between an interested prospect and a company. However, perhaps because they are so commonplace, all too often these forms are given little strategic thought, resulting in a cookie-cutter name/email address/phone number format that yields more bogus spam submissions than legitimate new business opportunities. However, there is one simple change you can make that has been shown to get better results: reposition your standard “Contact us” form as an “Ask our experts” feature. By doing so, you shift the focus of the form to providing your visitors with an opportunity to submit a question that is specific to their needs and concerns. Rather than feeling like they are opening themselves up to an endless barrage of solicitation calls and emails, your visitors will sense that they are initiating a dialogue with an expert who will help them solve their particular problem. Make sure to respond to all inquiries within 24 hours, provide helpful advice that is free of charge and tailored to your prospect’s situation, and leave the door open to continue the conversation in a future meeting or phone call. By doing so, you will establish an important foundation of trust and confidence with your potential new client that will make them more inclined to engage your professional services. I have personally seen the submission rates on these types of forms increase dramatically. On one site where this small change was implemented, form submissions jumped from one or two per week to one or two per day – all legitimate business opportunities that were sparked simply by repositioning the focus of the form.

2. Productize your offering.

Another challenge that professional services organizations face in creating a website that works as an effective customer conversion engine is that they do not sell a specific product but rather a suite of services that can be customized to each client’s specific needs. This makes it terribly hard to market to visitors who come to their site and simply want to know “What exactly does this company sell, and how much does it cost?”. Because there are so many variables to the company’s offerings, there is not a quick and easy answer to these questions. If this challenge sounds familiar to you, one approach you can try is to “productize” what you have to offer. Create a bundle of services with a fixed price, and market that package on your site in a simple, straightforward manner that makes your offering easy to understand and helps visitors feel like doing business with your company is as simple as buying a product off the shelf at a store. This is exactly what my company did with some of the technology consulting services that we offer. Instead of only listing the array of services we provide, we also created a product that representing a very specific offering. This made it so much easier to answer the “What do you sell?” question, and it gave us something tangible to promote in our marketing campaigns. In reality, this approach in no way limited the range of services we are able to offer our clients; rather, it merely served as a vehicle to open doors to new opportunities and made it easier to start conversations with new customers for whom we could ultimately provide a custom-tailored solution. Examine the services that you offer, and work with your marketing team to create an appealing package that you can market – understanding all the while that this “product” is really just a means for you to connect with customers and begin the sales process with something tangible that they can easily understand.

3. Lose your home page carousel.

One simple change that I have seen many websites make in the past year or so is to remove animated image carousels from their home pages. These carousels have long been a popular fixture of website design, but the reality is that they can sometimes do more harm than good. Home page carousels typically feature giant, screen-spanning images which carry with them heavy download requirements both for the images and for the scripts that power the animation sequences, thereby creating a potential stumbling block in performance for users on mobile devices or with slower connections. Additionally, studies have shown that click-through rates on animated carousels are extremely low, and they drop significantly from the first slide to the subsequent ones. This is why many companies are replacing rotating carousels with a singular static message instead. This one change can greatly reduce a page’s download size (when my company did this on our home page, its file size decreased by 75 percent) while having little to no effect on actual user engagement or click-through. In fact, because the page now loads more quickly, many sites actually see an uptick in user engagement because fewer people are abandoning a site due to poor performance. Do you have a carousel on your website? If so, do you know whether or not it is working well for you? Your marketing team may be able to do some A/B testing between a version of your site with this animation feature and one without it to see which performs better. Since carousels do work well for some sites (like news organizations or sites with lots of frequently updated content), having this data can help you determine whether or not it’s time to ditch the carousel.

4. Update your image(s).

Stock photography is something of a necessary evil of website design, as more often than not, companies don’t have the budget to execute a full-fledged custom professional photo shoot. However, not all stock images are created equal. Stock photos that are overused or that look so obviously staged that they scream of their “stockiness” can cheapen a site’s design and leave visitors with a negative overall impression of the site. Replacing those images can make a big difference in a site’s visual appeal. If your site’s imagery is stale, you can make some simple image swaps to freshen it up. If you are going to change out old stock images for new stock images, make sure to seek out photos that feel fresh and that are not terribly overused (most stock photo sites will tell you how many times an image has been downloaded). An even better option is to try to add some unique imagery to your site. This could be photographs that you hire a professional to take or – in keeping with one of this year’s hottest trends – custom illustrations that you commission from an artist. If your budget is tight, incorporating even just one or two such one-of-a-kind images in key spots on your site can really boost its visual impact. For instance, if you lose that aforementioned carousel on the home page and replace it with one truly compelling static image and message, it can make a really powerful first impression on your visitors.

5. Publish less.

Most experts agree that publishing original, value-add content on your site on a regular basis is key to optimizing its success – both from a sales and marketing standpoint and as an advantage in the never-ending battle of SEO. While I agree with this approach in principal, for many companies, the drive to publish regularly has resulted in putting out mediocre content simply to meet an inflexible standard of frequency. This is often an entirely counterproductive effort, as content that lacks in quality, original thought or value for the reader reflects poorly on the organization and its perceived level of expertise. Publishing original content to your site on a regular basis is still a best practice, but that content must offer value for it to succeed. Let’s say a visitor comes to your site and is impressed to find that you publish new articles weekly or monthly; however, once they click through the headline to see what they can glean from your writing, if what they find is mediocre at best, what motivation do they have to return to your site again in the future, let alone entrust you with their hard-earned dollars? If, on the other hand, you publish new content less frequently, but everything you produce is of the highest quality, then that same visitor will know that the time they spend on your site will always be worth their while, and they will look forward to the next time you post something new. Re-examine your current content marketing strategy, and ask yourself whether you are focused on quality or frequency. If it’s the latter, commit instead to writing less but to improving the quality of what you offer on your site. While this change may not have an immediate impact, it will absolutely yield long-term results that your visitors will appreciate and respond positively to.

In closing

Eventually, your website will need a redesign, but in the meantime you can make small, strategic, surgical changes that will pay immediate dividends in your site’s success. This approach of implementing gradual but regular modifications will also benefit you when it does come time for that full redesign. By making intelligent improvements over time, you will ultimately be closer to your end goal, leaving less to accomplish with the redesign and thereby paving the way for a smoother and less costly project.

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Bad Romance: 10 Phrases Never to Say to Your Customers

Your brand’s image isn’t defined by your logo. Your message isn’t controlled by your latest carefully crafted ad campaign. Your reputation isn’t wrapped up in your website.

In today’s age of social media, each and every one of your customers holds a megaphone, and he who holds the megaphone controls the message.

As a result, every single interaction your customers have with your brand shapes not only the way they perceive your company and its values but how they share and spread that perception to others in their circles.

So in this world where every word-of-mouth message has the potential to be amplified hundreds or even thousands of times over, what can you do to protect your brand’s good name?

Of course, when times are good and everyone’s happy, it’s not too hard to provide a positive experience. But what about when things go wrong? What do you do when you’ve got a disappointed, frustrated, irate or even irrational customer on your hands? That’s when your problem-solving savvy is really put to the test.

In situations like these, it’s critical to ensure that every employee at every level of your company is thoroughly trained in tactics for transforming a conflict or complaint into a positive experience.

Here are 10 phrases you must absolutely, positively never ever say to a customer when your brand’s reputation is on the line:

That's our policy...

You care about your policies, but you know who doesn’t? Your customers. All they care about is getting their problem fixed.

Using policy as the justification for why you can't achieve this goal will fall flat every time. Of course you can’t let your customer walk all over you and it is sometimes necessary to draw a line, but you have little to risk by finding ways to work within those policies to offer an innovative solution.

There's nothing I can do...

This statement will make any customer’s blood boil. When you say “There’s nothing I can do,” what they hear is “You and your business don’t matter to us.” You might as well throw in the towel and walk away.

There's always something that can be done, even if it requires a little creativity and compromise. Make sure to give your employees leeway to improvise when necessary. A minor concession costs nothing compared to the impact of an angry customer blasting you on Twitter.

What you need to do is...

When customers call, they’re looking to you to fix their problem, not to be told how to fix it themselves.

Of course, there are some situations where it’s appropriate and even necessary to walk a customer through the steps required to solve a problem. Just be sure to choose your words carefully. The difference between saying “What you need to do” and “Let’s try this” is conveying the sense that you’re on their side and that you’re committed to working together hand-in-hand until their issue has been resolved.

I'm new at this...

Again, nobody cares. You might as well tell a customer that they should hang up, call back and hope to have better luck in reaching someone more competent.

Rather than exposing your weakness, simply bring in someone with more expertise and experience to help navigate this sticky situation. Your customer will appreciate the hands-on team approach, and you’ll benefit from learning from a pro.

No...

Ouch! Never, ever drop the "no" bomb. If you don’t make a concerted effort to solve the problem at hand, you can kiss that customer – and every other existing or prospective customer who will listen to their tale of woe – goodbye.

I don't believe...

I'm not sure...

We don't...

Take your pick, but these are all thinly veiled ways of saying “no,” which we’ve already established is the not the right answer. Save your breath and spend your time and energy looking for ways to be helpful and find viable alternatives.

There’s no one else here you can talk to...

Unless you are literally a one-man operation, customers know you're lying when they hear this statement. There's always someone higher up that can step in.

Telling someone there's nobody else they can talk to is tantamount to saying, "You’re not worth our time." This isn’t going to diffuse their anger and will likely send them packing, irate enough to leave horrible reviews all over the Web.

I don't know how to help you with that...

This phrase is problematic even when the best of intentions are meant by the employee offering support.

Sometimes a customer will ask tough questions. Instead of saying you don't know what to do, take a proactive role in connecting them with the correct resource within the company who can handle their problem.

That's not my job...

Wrong. No matter who you are or what your job title is, keeping your customers happy is your number one responsibility. Just do it.

I hate my job...

This company sucks...

These types of statements tend to surface when both the customer and the employee are in a state of emotional upset. It’s the equivalent of telling a customer that they're not going to find any help here.

Bad-mouthing the company is never the right answer, no matter what the situation. It can do immeasurable damage, and in reality, even the angriest customer doesn’t really want commiseration.

They don't care about your opinion. They’ve taken the time to give you a chance to make it right, and they want a solution.

If you find yourself reaching a breaking point where you feel the need to make statements like this, take a step back and clear your head. You may not feel that you’re getting the support you need from your company, but customers don't need to hear this. If necessary, ask if you can put them on hold momentarily while you "search for the solution." Then take some deep breaths, get help and do whatever you need to do to rejoin the conversation with a positive attitude.

{Nothing...}

Silence is the absolute worst thing a customer can hear from you.

If it’s necessary to put a caller on hold, don't keep them waiting long. Even better, get their information and tell them you’ll call them back (and then make sure you do – promptly!).

If they’re asking tough questions or getting frustrated, responding with silence will only add fuel to their fire. But that doesn’t mean you must have the right answer on the tip of your tongue, either.

Starting with genuine empathy is a great way to diffuse the situation. Even a simple, "Yes, sir, I can see why you are upset. Let me see what I can do to help you out," will buy you some time to organize your thoughts and collect your composure so that you can confidently work toward a mutually agreeable solution.

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Get it Write: How to Use White Papers to Establish Your Expertise

Growing a business in today’s marketplace begins and ends with building trust with your customers.

There’s no more direct route to earning that trust than by demonstrating your expertise in your field. If you can convince a prospective customer that you not only understand their needs and problems but know exactly what’s required to solve them, then it’s hardly a big leap for them to believe that you’re the best one for the job.

White papers are a marketing tactic that provides a proving ground for your expertise. By conveying objective information, thorough analysis and useful insights, a white paper is an effective strategy for cementing your customers’ confidence and trust in the products or services you offer.

Here’s what you need to know to create a successful white paper that will help you capture and convert more customers:

What is a white paper, exactly, and how is it different from a blog article?

A white paper is an in-depth report on a specific topic. White papers differ from blog posts in tone, scope, length and audience.

Unlike blog articles, white papers are not designed for the casual reader but for one who is seeking comprehensive information in order to help them achieve a specific objective or make an important purchasing decision. Also, while blog posts are conversational in tone and based largely in opinion, white papers should be formal and fact based.

There is no set length that your white paper must be to qualify. Depending on the topic, a well-written, well-supported four-page document can be sufficient to get the job done; likewise, an exhaustive 10-page report is sometimes what’s needed to give the reader the depth of information they desire. The key is to be objective and thorough.

Target audience

Before you begin, you must define who it is that you desire to reach based on your business growth goals. This is key to determining both the topic you should cover and the approach you should take in doing so.

For your white paper to be successful, you need to make sure that it addresses a need or issue that is common among this audience and that it provides answers and insights in language and on a level they will find relatable.

For example, a white paper on social media aimed at reaching C-suite-level marketing executives would be much different than one on the same subject targeted to entrepreneurs who are launching a new business.

Content and voice

Your white paper must maintain a sense of objectivity. This is the time to persuade through logic, not emotion.

If a reader feels manipulated, then they will view your report with suspicion, and you will lose credibility by association – the exact opposite of the outcome you desire.

Establish a strong sense of credibility by covering all aspects of your chosen subject – both positive and negative. You may even go so far as to compare and contrast your product with others.

Remember to do your homework. Unlike a blog post that represents your own point of view, a good white paper should incorporate research from other respected sources to substantiate your points. Your job is to pull together the existing data and information on your subject, offer thoughtful analysis and provide your own unique insights.

Don’t be afraid to share the types of insider information you’d normally reserve for paying clients. Doing so will only whet your reader’s appetite to seek out more of your expertise.

Make sure you conclude with a call to action. Don’t go straight for the kill with a pitch like “For more information, call our sales department.” Instead, provide options that allow your reader to further their engagement with your brand, whether that’s by subscribing to your blog or e-newsletter, passing your white paper along to their friends and colleagues via social media networks or downloading other white papers on related topics.

Design

Keep in mind: it’s a white paper, not a bland paper. Just because it’s factual and objective in nature doesn’t mean that you shouldn’t take care to ensure that the information is presented in a visually appealing manner that is a good representation of your brand.

Use charts, graphs and images wherever possible to illustrate your point. And make sure that your choice of typography and colors makes it easy to read, whether on screen or in hard copy form.

Marketing

Your job doesn’t end when you put the final touches on your white paper. After all, it can’t help you get customers if customers don’t know where to find it.

For your white paper to be read, you need to market it well and to the right audience. Promoting your white paper includes everything from having the right title to employing effective distribution methods.

Your white paper is more likely to be read if it is clearly labeled with a strong title. The title of your white paper must be focused and ultra-specific. It should be as concise as possible while communicating to the reader exactly what they can expect to learn from it.

When it comes to spreading the word about your white paper, there are many avenues you can take.

Include links to your white paper in your company’s e-newsletter. When you do so, boost your chances of a click-through by linking directly to a specific section of the white paper that’s most relevant to the content of your newsletter. Instant gratification works in your favor here.

Don’t forget to spread the word about your white paper to your fans and followers on Facebook, LinkedIn and Twitter, using Twitter’s hashtag function to target users searching for a specific topic. Discussion boards focused on topics pertaining to your subject matter are another outlet where you can promote your white paper. You can also use pay-per-click advertising to put your white paper in front of people who are actively searching online for information about your topic.

If you have more than one white paper, make sure to provide responders with the opportunity to download other white papers that might interest them. Also, create a dedicated resource center on your own website where all of your white papers can live.

When in doubt, send it out. Direct mail marketing is not dead, so use email or mail to put your white paper in the hands of your target audience. And don’t be afraid to hit up the same list more than once. On the second pass, you might catch the eye of a reader who either overlooked your offer the first time or might not have been ready to act on it previously.

See your expertise transformed into leads

A good white paper does require a significant amount of time and effort to develop; however, the potential for return on your investment is great.

According to a survey published in October 2011 by Eccolo Media, technology buyers regard white papers as the most influential type of marketing collateral, with 65 percent citing white papers as “very” or “extremely influential” when making a purchasing decision.

If you select a topic that’s important to your target audience, provide them with information that’s truly valuable and useful and market your white paper effectively, you’ll have successfully built a powerful lead-generating engine, as more and more prospective new customers discover who you are and the wealth of expertise you have to offer.

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