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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Is Your Website Ready for the Tablet Revolution?

The revolution is here.

When Apple launched the iPad last year, it carved out a new category in the mobile device marketplace. With the release of the iPad 2 and newer challengers like the Motorola Xoom and the Samsung Galaxy now joining the fray, the market continues to heat up as more and more users opt to perform everyday tasks like browsing the Web, sending email, watching videos and playing games on tablet devices rather than their desktops, laptops or netbooks.

In fact, according to a recent study conducted by Nielsen, 35 percent of tablet owners polled said they now use their desktop computer less or not at all while 32 percent of respondents said the same of their laptop. The top five reasons cited for preferring the tablet over a desktop or laptop were portability (31 percent), easier interface (21), start-up speed (15), convenience (12) and size (12).

Additionally, Forrester Research forecasts that tablet sales in the U.S. will continue to climb sharply, from 10.3 million in 2010 to 24.1 million in 2011 to 44 million in 2015. The firm also projects that by 2015, 82 million people in the U.S. will own a tablet, a figure which represents one third of the total online population.

What do these numbers mean for you? With each passing day, the likelihood that consumers will be interacting with your brand via a tablet rather than a desktop or laptop is increasing. As we demonstrated previously, not all brands can or should release a native app, and even if you do, you shouldn’t neglect those users who will be surfing your primary site on a tablet-based browser.

As a result, it’s up to you to make sure that your website evolves to provide these users with a high-quality, hassle-free experience, or else you’ll risk losing them to competitors that do.

Here are nine critical elements you must examine now to make sure your site will continue to serve the needs of your customers and support the growth of your business in the era of the tablet:

Balance of content vs. interface

Tablet screens are much smaller than desktop or laptop screens, yet the primary use of tablets is for consuming content. Therefore, it’s important to make sure that your website’s interface is clean and clutter-free so that you make optimal use of the available real estate and allow your content to take center stage.

Typography

The type on your website must strike a happy medium for tablet users. If it’s too small or condensed, it will be illegible without zooming in. If it’s too big, users will be forced to scroll more than necessary.

You must find the ideal balance of font face, font size, line spacing and line length so that your content is pleasant and comfortable to read at the distance at which a user would naturally hold a tablet.

Color and texture

Color and texture are more than cosmetic niceties. When applied in strategic ways, they can go a long way toward improving the usability of your site for tablet users. For example, a subtle gradient on top of a button can provide a visual cue to users that it is an actionable object.

Keep in mind as well that with tablet users, you’re fighting finger smudges and glare for visibility. Bright background colors and patterns can reduce interference from these elements, while solid black tends to make them more distracting.

Buttons and links

When it comes to the tools your visitors use to travel around your website, size matters.

For tablet users, the clicking and scrolling of a mouse are replaced by touching and swiping gestures. As a result, navigation actions are less precise on touchscreens. You must allow a greater margin of error by creating buttons that are the size of a fingertip rather than a cursor.

Also, make sure to allow a little breathing room around your buttons and links, especially those that live in your site’s main navigation. Nothing will frustrate a user faster than being directed to a different page than the one they wanted because your links are crammed together too tightly.

Interface cues

If your website’s interface currently relies heavily on rollover effects, you’re going to be in trouble on a tablet. 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 appear only when the mouse is nearby, those elements will be unavailable to your tablet users.

To create finger-friendly navigation, all elements must be big, bold and obvious. Replace buttons that require users to mouse over them to get a sense of action with style enhancements that draw attention to their “pressability.”

Menus

If your site contains drop-down menus, make sure there are visual cues (such as small up and down arrows) to indicate that the menu is expandable and that the menu remains open on tap.

Alternatively, you might consider streamlining your navigation to eliminate the need for drop-down menus altogether. Instead, you can create a showcase page for each main section of your site that acts as a gateway to the subpages contained within.

Scrolling

Screens on the tablet devices that are currently on the market range from approximately 7 to 10 inches and allow viewing in both vertical and horizontal orientation. As a result, there’s no way to be able to accurately predict what a tablet surfer will see without having to scroll.

The good news here is that tablet device users expect to scroll – not just vertically but horizontally as well. There’s no need to worry about trying to force all your important information to fit “above the fold.” Clean, streamlined design that promotes easy content consumption is the name of the game.

Forms

Many of the most critical interactions between your website and your customers occur through forms, whether it’s subscribing to email updates, requesting more information, logging into a secure account or completing a purchase.

Examine your forms closely to ensure that all fields render clearly. Also, make sure your forms are as streamlined as possible. Trying to complete a long form with many fields on a tablet is cumbersome. While the marketer in you wants to collect as much data as possible from your site visitors, the danger of requiring users to complete too many fields is that they’ll get frustrated and give up, leaving you with no data at all or, even worse, a potential sale lost.

Flash

Apple’s iOS does not – and probably never will – support Flash. Android does support Flash, but the performance of Flash content on Android devices thus far has been less than ideal.

If you have Flash anywhere on your site – whether it’s in the introduction to your site, your navigation menus or video – get rid of it now, or else your tablet users will be plagued with problems. Today there are better, more tablet-friendly options available, such as HTML5 and JavaScript, that can replicate the same effects that once required Flash.

When in doubt, test it out.

The only way to be confident about how well your site performs on a tablet is to put it through the paces on actual tablet devices. While there are some web-based simulators, they aren’t 100 percent reliable since they are ultimately limited by using your desktop browser to render your site.

If you don’t already own a tablet, borrow one or – if all else fails – make a trip to your local retailer and use the display models there.

Be sure to evaluate every element and every page of your site carefully. If possible, recruit other friends, colleagues or family members to do the same, and observe them as they navigate through your site. Because they aren’t as intimately familiar with your site and its nuances as you are, they may uncover stumbling blocks that you might have overlooked.

If you identify any problem areas, seek out the help of a trusted website design firm to address them. While you may have to make an investment in upgrading the infrastructure of your site, it will be money well spent to make sure current and prospective customers can access your site on their device of choice – which is more and more likely to be a tablet.

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Naughty or Nice?

If you’re guilty of committing these marketing no-nos, you may well be receiving a lump of coal from your customers this year.

Making constant demands of your customers

All too often, marketers act like petulant children, making incessant demands of their customers without providing any real service or value in return. “Buy now!” “Call today!” “Read this email!” “Share this on Facebook!” All your customers hear is, “Me! Me! Me! Give me what I want right now!” And what’s their reaction to such self-interested yapping? At best, it's a collective yawn; at worst, a complete tune-out. So what should you do instead? Fame Foundry friend Gary Vaynerchuk suggests hitting your customers in the face. Wait…let us explain. You see, about once a week, Vaynerchuk poses this question on Twitter to his one million followers: “Is there anything I can do for you?” And he does mean it literally. For example, when one of his followers in Canada wrote “Just ran out of Tabasco,” Vaynerchuk overnighted eight bottles. Image via Warren Weeks When another in Minnesota responded with a request for a cheeseburger, he opened the door the next day to find a delicious cheeseburger hand-delivered from one of his favorite restaurants. So what’s in all of this concierge-like servitude for Gary? It’s part of an approach that the always-colorful Vaynerchuk calls “jab, jab, jab, right hook” (which is also the name of his latest book) According to Vaynerchuk, a jab is anything of value — a joke, an idea, an introduction, and yes, even a meal. After he delivers a few jabs, he can then justifiably hit you with a right hook: a request to buy something. In other words, “jab, jab, jab, right hook” means “give, give, give, ask.” Note the emphasis on giving. You must give first and give generously before you ever ask for anything in return from your customers and prospects. As he explains in the book, “Your story needs to move people’s spirits and build their goodwill, so that when you finally do ask them to buy from you, they feel like you’ve given them so much it would be almost rude to refuse.” It’s a philosophy as simple as it is effective: put your customers first, and they’ll return the favor. As Vaynerchuk says, “If you’re in business, first and foremost, you have to be nice. Show your customers that you care.”

Insulting our intelligence

It’s 2013. We’ve all seen more than our fair share of advertising. We all have the Internet. So stop insulting our intelligence with your “candid interviews” and “medical experts.” After all, how many mornings have you found yourself leisurely chatting about the joys of breakfast cereal with an unseen interviewer? And, Post Foods, you really cannot be serious with this! Nobody’s buying it, and nobody wants to buy products from companies that don’t respect our ability to discern fact from fiction. If you want to engage with us, authenticity is the only way to get (and hold) our attention.

Playing to dirty motivations

Image via Amusing Planet This one is something of a corollary to insulting our intelligence. We all know that sex sells. We all want to be thinner, richer and more attractive. But we’re also savvy enough to recognize when we’re being manipulated by marketers. Take this ad for the Dodge Big Finish Event, which ends with a keeping-up-with-the-Jonses challenge: “Let’s see the neighbors compete with that!” Is that really the best selling point you have, Dodge? Similarly, this spot implies that the secret to unlocking popularity, confidence, masculinity and sex appeal is the keys to an Audi. If you really want me to drop upwards of $80k on a car, you’re going to need to do better than that. Educate your customers. Show them how your products and services will make their lives better, easier, more efficient or even more fun in a real way. Not in an aspirational, wink-wink, don’t-we-all-want-to-be-Kardashians way.

Committing a blatant money-grabbing maneuver

Contrary to the unforgettable line uttered by the infamous Gordon Gekko in the 1987 film Wall Street, greed is not good. While customers don’t begrudge any company the need to turn a profit, when they smell a blatant money-grabbing maneuver, they’ll quickly blow the whistle. For several years now, major retailers have been attempting to get a jump on Black Friday spending by opening on Thanksgiving day – a move that has been viewed by many as a morally questionable practice of allowing consumerism to encroach on one of our nation’s most revered holidays. This year, however, Kmart took a giant leap over the line of good judgment when they announced that they would open at 6 a.m. on Thanksgiving day and remain open for 41 consecutive hours. The public backlash was swift and sharp. Within hours of the announcement, hundreds of Kmart customers took to social media and threatened to boycott the store if it didn't reverse its decision so that its employees could spend Thanksgiving with their families. People called the decision "heartless," "greedy," "shameful" and "disgusting." Image via The Huffington Post "Shame on you, Kmart. I will never set foot in any of your stores again," wrote one now former customer on the company’s Facebook page. "I have family members that work in retail, and because of greedy retailers like you will not be able to spend the day with us." Another added: “Maybe Kmart should have shown they are thankful for their loyal employees and let them be with their families on Thanksgiving. I realize you are a corporation, and your goal is to make money...but sometimes you need to show and prove that people are important, too." So what lessons can you take away from Kmart’s Thanksgiving PR travesty? In your quest to own your market, always proceed with caution. Today’s consumers are not only smart but selective; they shop with their heads and their hearts. They want to deal with companies that demonstrate their dedication to serving the best interests of both their customers and their employees. They won’t trust their business to those whose only master is the all-mighty dollar, so make sure you always err on the side of ethics and in everything that you do, prove that it’s you who exists to serve the needs of your customers, not the other way around.

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