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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SPF for Your Website: Three Simple Steps to Protect Your Online Presence

As the days get longer and the mercury rises, we’re reminded yet again of the importance of remaining vigilant when it comes to applying sunscreen to protect ourselves from summer’s damaging rays. It’s a simple yet necessary precaution that if neglected has both short-term consequences – the painful agony of sunburn – and long-term ramifications – skin damage and increased risk of skin cancer. The same holds true for our websites. If we are not proactive in taking the necessary precautions to keep our online presence safe, problems will inevitably arise. Here are three simple measures you can take to apply SPF to your website that will safeguard the integrity not only of your brand’s online presence but its reputation as well:

(S)ecure your site against SQL injections.

Websites that feature data-driven applications can be vulnerable to attacks known as SQL injections, whereby malicious code is added to an entry field, then run and executed. These attacks exploit security vulnerabilities in problematic code, attacking your site’s database and performing any number of actions, from adding unapproved content to your public-facing site to allowing the hacker to download your entire database. This is a prime example of why rigorous testing is absolutely critical prior to launch. If your site is already up and running, consult with your web team to make sure that it has undergone thorough testing and is protected against such hacks. If you want to take additional precautionary measures, there are also security companies that specialize in detecting these types of website and database vulnerabilities, and they can provide you with a security audit.

(P)rotect your domain name.

It’s common sense that you must pay to acquire the domain name where your business will reside online. However, it’s important to remember that you have to continue to pay in order to retain the rights to use that domain name. Essentially, when you purchase your domain name, you’re not buying it outright. Rather, you’re renting that name for a specified period of time. Most registrars (Network Solutions, GoDaddy, Register.com, etc.) allow you to secure a name for anywhere from 12 months to 99 years. If you allow your registration to lapse, however, the domain name becomes available for purchase again and is open to the public for anyone to acquire. Bear in mind that there are actually companies that profit handsomely from business owners who neglect their domain registrations. They monitor domains that are nearing expiration, taking ownership of them the moment they become available. If you have the misfortune of having your domain acquired by one of these companies, usually you can negotiate having ownership transferred back to you, but it will cost you dearly. Unfortunately, while this is a shady practice, it is not illegal. If you allow your domain name to expire, it is fair game for anyone to register it – including these types of companies. Before your domain name expires, your registrar will likely send you many notices prompting you to renew. I start getting domain name renewal notices six months or more before the scheduled expiration date, and as that date gets closer, the notices start coming more and more frequently. Still, despite this barrage of email notifications, there are still many companies that are unaware that their expiration date is approaching, and they either lose their domain name altogether or are forced to pay a king’s ransom to get it back. Often when this situation occurs, it is because the person who initially completed the registration process for the domain name is no longer with the company, and therefore the email address they used to register the name is no longer valid, so the multitude of email notices go unreceived. The company innocently thinks they are protected until one day they stop receiving emails (yes, your email is tied into your domain name), or a customer mentions that they tried to go to the site, and it was simply gone. Even though there is a grace period after a domain has lapsed that allows you to reclaim your ownership before it becomes open to the public, the lapse isn’t always discovered in time to take advantage of this safety net. To prevent this, it is critically important to keep the contact information for your domain registration up to date. Either contact your registrar directly or speak with your web team to make sure you know when each of the domain names you own needs to be renewed, and double-check to ensure that the contact information for your account is valid.

(F)ortify your forms.

Web forms are a staple of doing business online. In fact, rare is the site that doesn’t include a form of some sort that allows the user to input information to be transmitted to the site’s owner, whether its purpose is to make a contact inquiry, sign up for a mailing list, complete a purchase, apply for employment, etc. As anyone who has a form on their site can attest, however, not all submissions received via these forms are legitimate. This is called robot spam, which is created by spammers who write programs that send out spambots to indiscriminately fill out any and all different types of forms on the Web, looking for entryways to expose a site’s security vulnerabilities (see SQL injections above). If you find your inbox filling up with indecipherable junk submissions, it’s these bots who are to blame. To combat these spambots, you can install a CAPTCHA system on your form, which generates an image with a random combination of numbers and letters that the user must enter in order to submit the form. The spambots can't interpret these CAPTCHA images, so therefore they can’t complete the process of sending the form. While there is legitimate debate as to whether or not CAPTCHA is the most effective way to prevent bogus submissions, it still remains the most popular solution for web form security. However, the reason it’s important to block these bots goes beyond eliminating the annoyance of a cluttered inbox. A few months ago, my company decided to remove the CAPTCHA requirement from our contact form. We knew we would get a flood of spam submissions, but we decided we could deal with a little extra hassle on our end in exchange for reducing the inconvenience to legitimate users of having to interpret those squiggly letters in order to simply get in touch with us. As expected, the amount of spam we received increased dramatically, but it was still manageable. Then, all of a sudden, we stopped receiving any submissions at all. We also began seeing some of our emails to other people bounce back. What we discovered was that our web domain (which is where our emails originate from) had been blacklisted as spam by Microsoft (which is what powers our email platform). Apparently, all the bogus submissions from our website (which resides on our domain) to our email caused Microsoft to identify us as spammers. This is because our form submissions came from an email address associated with our own domain name (many web forms are configured this way). Obviously, we were not the ones generating the spam, but this strange series of coincidences conspired to get us blacklisted! Fortunately, it was an easy process to get our domain removed from the blacklist, and we quickly re-installed the CAPTCHA system on our contact form, but we certainly learned an important lesson about security and spambots along the way. If you allow those bogus entries to make it through, there is a risk that you, too, could find yourself blacklisted and unable to send email to some of your most important contacts.

Seize the day and stay safe.

Since summer is vacation season for many of us, business tends to slow down slightly as our clients and colleagues enjoy much-deserved time off. That makes this the perfect time to seize the opportunity to apply these S-P-F practices today to ensure that your online presence is well protected all year long.

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

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

1. Download our app

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

2. Give us your digits

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

3. One-size-fits-all framework

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

4. Vexing video

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

5. The mystery of the disappearing navigation

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

6. Page is loading…

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

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