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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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.

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Survival of the Fittest: Conquering Responsive Website Design

With the proliferation of smartphones and tablets today, serving the needs of mobile browsers is no longer acondary consideration when it comes to designing (or redesigning) your website. From the ground up, it’s critically important to ensure that you are building a platform that will look beautiful and perform elegantly no matter where or how a user might access it. While you can create a dedicated mobile site or app, responsive design offers a smarter, more flexible, more agile solution that will ultimately deliver a greater long-term return for your investment.

Defining responsive design

Responsive design is the concept of building a website so that the layout of the site adapts and changes according to the resolution of the user’s browser. Using this approach, you can build a single site that will look just as good on a monitor that’s 2048 pixels by 1080 pixels as it will on an iPhone that’s 320 pixels by 480 pixels and all browser sizes in between without the need to build a separate dedicated mobile version of your website. Ethan Marcotte, the forerunner in the field, identifies the three key ingredients of responsive design as follows:

• Fluid grids
• Flexible images
• Media queries

Wait, fluid what? Media what? Let’s take a step back and define these terms in plain English. Every website is developed based on a grid that governs the scale of and relative position of objects (such as navigation menus, images and text) to one another. A fluid grid has the ability to shift and reposition select elements of the site based on certain conditions in order to preserve the properly defined scale for layout, size and spacing. “Flexible images” mean that the images contained within the site’s design should scale in size and shift in position according to the dimensions of the device being used to access the site (larger images on large displays, smaller ones on phone screens, etc.) And media queries? Media queries are used to intelligently detect the size of the browser window and the device being used to access the site and bring back the correct layout for optimal viewing and navigation according to those parameters. But these technical elements only govern the mechanics of the site. What ultimately determines the success of a website that’s built on a responsive design framework is its ability to provide a user interface that’s both visually pleasing and easy to use. After all, responsive design isn't only about resizing stuff to fit within different screen resolutions; it’s about presenting users with a the best possible experience, both in terms of layout and content. With that in mind, here are five key UX/UI factors that must be taken into consideration in order to maintain the integrity of the user interface and protect the quality of the user experience when employing a responsive design framework.

Catering to the needs of visitors

Users accessing your website from different devices have different needs. For example, if someone visits your website from their iPad during their daily commute on the train, they’re only going to dig so deep. For example, while they’ll likely be interested in perusing your latest blog post, they’re not going to be looking for the bios of your board of directors or your privacy policy. You must think about each type of user that will be visiting your site and let their needs and interests dictate the way your site molds and conforms itself to the size of their browser or device.

Intuitiveness

Being innovative is a good thing; being too innovative is not. If, for instance, you decide to change the color of hyperlinks to an indistinguishable shade of black or invent new navigational conventions that perplex your visitors, you’ll send them running in the opposite direction,and the design will be a total failure. The purpose of responsive web design is to empower users to visit your website and browse freely and according to the conventions that are most natural and familiar to them, irrespective of the device they are using.

Touchability

Who can refute the fact that touchscreens are growing more popular with every passing day? Almost all major smartphones and tablets use touchscreen interfaces, and even certain laptops and desktops are being offered with touch functionality. Touchscreens needs to be treated differently. For example, in the world of the touchscreen, there is no such thing as a hover state. If, for example, you have “previous” and “next” buttons that would normally appear only when a mouse rolls over them, those elements would be unavailable to your touchscreen users. For finger-friendly navigation, all elements must be big, bold and obvious. Buttons that require users to mouse over them to get a sense of action must be replaced with style enhancements that draw attention to their “pressability.” It’s also a good idea when catering to touchscreen users to keep the navigation or sub-navigation menu to the right. Why? Because the majority of your users will be right-handed, so the menus will be more conveniently accessible if they’re on the right rather than on the top or left.

Images

While layouts, structural elements and text can be made flexible, images require special attention. Improper alignment of images can ruin even the greatest of designs. Images need to be automatically adjusted to ensure that the website looks awesome in either portrait or landscape mode (remember: most portable devices nowadays can switch instantaneously between views, depending on the user's whims and wishes). Also, when resizing images on the basis of the screen resolution of the device, care needs to be taken so that the images do not lose their quality. If a given image contains the logo or the name of the website, it needs to be given prominence, whereas footer images can take a back seat. The best is to load the images in their original size, unless the viewing area becomes too narrow for the purpose. When that happens, it means the user is on a mobile device, and the image needs to be narrowed in accordance with the screen width. This is the very essence of how smart responsive web design works.

What to show (and what to hide)

With responsive design, we have the ability to rearrange web elements and make every thing fit on the screen, no matter how small it is. However, making every single aspect of a normal web page available to mobile users is not only unnecessary but it can render your site practically unusable on smaller screens. For mobile devices, navigation, content and functionality must be pared down significantly to focus on those features that are most useful to users while on the go. For example, while mobile users frequently comparison shop on their phones, they might not be as likely to actually go through the entire purchase process on their handheld device. Therefore, while product information and pricing is key, e-commerce options should be extremely streamlined.

A Showcase of Responsive Design

To demonstrate just how effective responsive can be, let’s take a look at a few examples of companies that have embraced this new approach in building their sites. In each example, the full version of the site is show first, followed by a version as it appears on a mobile device.

Hicksdesign

Art Equals Work

City Crawlers: Berlin

8Faces

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