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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Cashing In: 5 Ways to Optimize Your Website's Conversion Rate

Got a website? Check. Strong traffic numbers? Check. Think you’ve got this online marketing thing licked? Think again. It doesn’t matter how many people are coming to your site if they aren’t taking action once they get there. If you want to make those traffic numbers count, you must find a way to convert visitors into customers. Some people would have you believe that all it takes is a nice website and a great product, and you’ll have customers beating down your doors. By this mode of thinking, if your sales are lackluster, it’s most likely an indication that something is wrong with your products, so you work day and night tweaking and tinkering your offering to give the people what you think they want. In reality, it’s more likely that you’ve overlooked some key elements in the design of your website, and now it’s costing you. If your website is performing well in traffic numbers but lacking in sales, it’s time to re-evaluate your site. Here are five key elements to examine and improve to ensure that you’re maximizing your opportunities to capture customers online:

1. Tell them where to go and what to do.

It’s a fact as simple as it is true: when you have a product or service to sell, you want to make sure people know exactly how to buy that product or service. There’s no point in saying you offer consulting services unless you provide a straightforward path to contact and hire you. There’s no point in displaying a product when there’s no immediately visible way to purchase it. Make sure you present a call to action that is obvious and direct. Look at your website through the eyes of the most technologically challenged user – one who has no clue how to navigate through a website or purchase something online. At every step of the way, do you provide the easiest and most direct route from Point A to Point B so that they can progress intuitively through your site? If you have a picture of a product, is there a call to action next to it? Remember, too, that a call to action is not a wordy description that says “Hey, this item is on sale like many others, so look at them all blah blah blah.” It’s a concise statement of action – usually in the form of a button or link – that prompts the user to take the next step. Maybe you want them to “buy now” or maybe you want them to “learn more.” Whatever the next logical step might be, it must be clearly stated. Attention spans on the Web are short; if your site is lacking calls to action, chances are good that you’re losing many conversions to the ever-present element of distraction.

2. Put the kibosh on clutter.

The universal rule of the Web is that less is more. Clutter comes in many forms – too many pictures, too much copy, too many buttons and links. Whatever is clogging up your site, get rid of it immediately. In order to determine what should stay and what should go, you must identify the primary goal of your website and make sure everything is geared toward that one singular objective. If your site exists to sell your products, then sell on every page. Even on your “About” page, your customer cares less about where you went to school and more about how your products came to be. You need a clear message – one that’s easy to understand and easy to share. Don’t stuff every last thing you do down someone’s throat and expect them to make a decision. Give them choices, but don’t make them think too much. You’ll only confuse your visitors, and a confused visitor is not going to stick around and figure it out; they’ll just go elsewhere instead.

3. Focus on feelings, not features.

It’s always difficult to fight the temptation to cover every single aspect and feature of your product or service in painstaking detail in order to make sure that visitors have all the information they could possibly need to make a decision. Sometimes this works, but more often than not, it doesn’t. Why? Because people don’t really spend their money on the products that have the most bells and whistles; they spend their money on what makes them feel good on the inside. They buy things they believe will make them a better person or make their lives easier or solve a problem they face every day. People don’t purchase iPods because they like the device itself; they purchase iPods because doing so makes them feel like part of a greater tribe of iPod (and, by extension, Apple) enthusiasts. Features are really only a secondary consideration. In trying to convert potential customers, your most important job is to convey how you can fulfill their deeper needs. Figure out how your products or services connect with people on an emotional level, bottle up that feeling and build your website around it.

4. Don’t ask for too much.

Don’t you hate when you walk into a clothing store and an associate follows you around constantly pestering you with questions? Doesn’t it irk you when you’re ready to check out and they ask you to sign up for their store credit card and their rewards card and to give them your email address so they can put you on their mailing list? Don’t make the same mistakes online. It’s critically important to provide a user experience that makes your visitors feel at ease. Avoid using pop-ups and other disruptive elements that create hassles during the shopping process. And when it’s time to check out, just let them check out. Don’t require them to create an account, don’t make them answer a laundry list of questions about their purchase and don’t make them give you a bunch of personal information. In short, don’t make your customers jump through hoops to spend money with you. If you try to get more information out of your customers than you actually need to process their order, you’ll raise red flags of mistrust. They’ll immediately recognize your game, and they’ll likely jump ship mid-transaction in order to avoid being bombarded with future marketing. In reality, all you need to be able to continue your relationship with that customer is an email address and permission to send them updates from time to time.

5. Be creative within reason.

Of course you want your website to be memorable. You want visitors to be wowed by its design. You want a unique look and feel that sets your company apart from your competitors. All of these are valid goals as long as you keep the level of creativity within reason. Don’t try to reinvent the wheel in an attempt to be remembered for originality and innovation. If your site deviates too far from familiar conventions, you’ll end up alienating a lot of potential customers because they’ll have no idea how to get around and find what they need. Be creative, but don’t overdo it. After all, less is more.

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Requiem for the Flash Intro: Seven Dying Trends in Website Design

Thanks to the now ubiquitous #TBT (that’s “throwback Thursday” for those of you who don’t speak hashtag), every week we’re all treated to a cringe-inducing trip down memory lane that takes us on a tour of our most regrettable fashion choices, whether it’s the bad perms and acid-washed jeans we sported in the 80s, the grunge-era plaid shirts and Doc Martens of the 90s or the velour sweatsuits and Carrie Bradshaw-inspired nameplate necklaces we left behind in the early aughts. Just as in fashion, website design trends come and go. What’s popular one day is old news the next. And just as you wouldn’t wear shoulder pads and stirrup pants to a sales meeting, you don’t want your website to be an embarrassing amalgamation of passé design trends. After all, if your website looks dated, it won’t inspire confidence among prospective customers that you’re on top of your game – no matter what game it is that you’re playing. Here are seven once-popular design trends that are fading fast – and that you should purge from your website as soon as you can:

1. Flash intros

Once upon a time, everybody and their brother wanted a Flash intro to create a memorable first impression. These days, though, having a Flash intro is a recipe for disaster. First, in today’s era of mobile surfing, speed and simplicity win the day. Keep in mind, too, that Flash and iOS do not mix, so your site won’t even be accessible to users on Apple gadgets. Also, today’s visitor demands more control and fewer bells and whistles that only serve as obstacles to accomplishing their end goal.

2. Pop-over windows

As site owners became increasingly eager to turn their web presence into full-blown conversion engines, the pop-over window rose to popularity. As soon as a new visitor lands on the site, BAM! they are greeted 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, thus giving the company all the ammunition they need to continue their engagement long after that visitor has moved on to other corners of the Web. But while these pop-overs are good for site owners (at least in theory), they are very disruptive for the user and provide roadblocks that only make it more difficult for them to accomplish what they originally came to the site to do. As a result, any value that might be gained in collecting the user’s data is quickly negated if that user has no interest in continuing their as a result of this negative first encounter. Thankfully, good UX is winning this battle, and the pop-over is falling quickly out of favor. Reality has set in that no one comes to a site for the express purpose of helping the site’s owner market to them, so it’s hardly the best way to lay a foundation for a successful long-term relationship. 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. Read more: Deal-Breakers and Dead-Ends: Six Turn-Offs That Alienate Website Visitors

3. Animated billboards

Oversized, rotating slideshows have become a common fixture on home pages in recent years, largely because they provide a way to present several key messages to the visitor without requiring them to scroll or to click past the initial page. However, UX tests show that these animated presentations are not as effective as we’d like to think. While the initial message in the carousel often prompts a click, the effectiveness of subsequent messages in the loop drops dramatically because many users do not stick around to see all of the slides. Other users ignore these animated areas completely, perceiving them as banner advertisements that should be glossed over in search of more meaningful content. The billboard remains a popular design feature; however, the trend is growing toward featuring a singular strong message in this area combined with a striking visual image. Streamlining and simplifying allows this one key idea to come across loud and clear rather than being lost among a muddled array of messages that are presented indiscriminately in the hopes that one will result in the desired outcome.

4. Information overload

Continuing with the theme of reductionism, today’s most successful websites pare down the information presented on the home page in order to create a cleaner, more focused presentation. This is in stark contrast to the approach that many sites took for years, which was to stuff the home page with as much information as possible in the hopes that visitors would find whatever they might be looking for on that page without having to dig any deeper. The result is a page that is utterly lacking in direction; nothing is emphasized because everything is emphasized. In the end, instead of being guided intuitively toward the information they seek, users are driven away by an overwhelming mess of content that is not properly organized and prioritized. To avoid this pitfall, focus on only the most important information for visitors while providing easy pathways, such as search tools and user-friendly site navigation, to help them find the content that lies deeper in the site. This approach will ultimately yield a better experience for your users and therefore better results for your company.

5. Drop-down menus

For years, the drop-down menu has been the go-to solution for streamlining a site’s primary navigation options while providing easy access to secondary pages. But with the advent of touch-based devices, which do not have a hover state, drop-down menus no longer serve the needs of all users. The simple fact of the matter is that with the rapid growth of mobile Web use, you simply can’t afford to risk leaving these visitors stranded with no way to delve beyond your site’s home page. Instead, a better solution for modern websites is to feature secondary page navigation options along the top or side of the page within the relevant section of the primary navigation. Read more: 3 Simple Rules for Navigation That Will Boost Your Website’s Performance

6. Contact forms

The contact form has long been a staple of websites – so much so that it’s often used in place of providing other means of contacting a company, such as a phone number or email address. However, more and more, site owners are choosing to eliminate this form altogether in an effort to provide a more personal, service-driven experience. Instead of having a visitor’s first interaction with their company occur via a cold, faceless web form that goes to an anonymous recipient and assures no timeline for response, the company elects to provide only their phone number so that the customer’s needs can be addressed immediately and directly by a live human being. While contact forms are not likely to disappear completely anytime soon, what is going away is the practice of relying on these forms as the sole vehicle for communication with customers and prospects.

7. Third-person narratives

Your website should embody the voice and personality of your brand. As such, it simply makes no sense for the content to be written from a third-person perspective, as if it’s being read to the user by a distant omniscient narrator. Instead, writing in the first-person creates a softer, more approachable tone that puts a human face on your company. It’s the difference between saying, “At Sanford & Son Remodeling, their goal is to ensure your satisfaction.” and “At Sanford & Son Remodeling, our goal is to ensure your satisfaction.” Which one feels more authentic? More warm and personable?

Beyond keeping up with the Jonses

Remember: keeping pace with the latest trends in website design is more than skin-deep. It’s not about having more bells and whistles than your competition; it’s about providing the best experience for all users, no matter how or where they’re accessing your site. By staying ahead of the curve, you’ll ensure that your site continually evolves to meet the needs and expectations of users who are constantly adapting to new devices and technologies.

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