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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The Cult of Personality (Part 1)

Word-of-mouth advertising has always been a marketer’s most powerful tool. It is the original form of viral marketing, offering all the key elements required to win a new customer:

• Attention
• Need fulfillment
• Trust
• Trial and testimonial
• Credibility
• Memorability
• Honesty (in other words, the absence of a company or salesperson’s motivations)

Now that social media has become a staple of our culture, word-of-mouth advertising has been catapulted from a nebulous ideal to an essential element for success. Whereas once it represented a one-to-one interaction, today's consumers are armed with a virtual megaphone to reach far-flung groups of friends, family and colleagues instantaneously via major social networking sites. A mention of your brand on the Web is broadcast in real time, delivered to countless phones and inboxes, forwarded, marked, tagged and cataloged on permanent record. Information, misinformation and opinion can make or break your brand at the speed of light. Sounds scary, right? It can be. But you can also choose to use these platforms to your advantage and become part of the dialog rather than social media roadkill.

Traditional marketing and PR are not equipped to survive in the social media jungle.

The practice of public relations has been transformed from representing brands and generating “buzz” through third-party media organizations to a meaningful, direct and ongoing relationship with the public. Ironically, traditional marketing has never faced the challenges inherent in interacting with the public directly. It thrives on comfortably interfacing on its own delicately crafted terms –pristine, airbrushed ads, cinematically perfect commercials, scripted speeches and thoroughly edited press releases. Even traditional PR – whose primary function is theoretically to garner attention through a non-biased press – is regarded as a joke. In our media-savvy times, people are hip to the fact that much of the press is bought and sold. Editors and producers are hungry for stories to balance out the “hard news” which, if left alone, would either bore or depress everyone to tears. The passing along of favors between PR agents and the press leads to the perpetual spinning of cotton-candy puff pieces under the guise of reporting the news. There’s a lot of back scratching going on, and the result is a hands-off, sterile approach to the public that is devoid of integrity. What’s amazing is that traditional marketing companies still think that these news outlets hold the same kind of reverence they did in Paul Harvey’s time. And the media wonders where their credibility went, along with their advertising dollars, as they fight to stay alive and relevant.

PR done right: It’s about people.

People do not follow companies. People follow people. Until this is understood and represents a fundamental principle that drives all of your PR efforts, credibility through social media cannot be attained. People do not follow companies. People follow people. Effective word-of-mouth engagement is, by nature, anti-corporate. The public has no affection for the face of corporate America. No one wants to see standard form-letter responses and press releases on Facebook, Twitter and the like. Yes, you should plan your PR goals and resources with as much care and attention to detail as any other part of your business. A qualified Internet marketing advisor can help you develop a strategy that is business-oriented and aligns with your marketing plan. However, once you have those clearly defined goals in place, you must stop being corporate and start representing your brand on a personal level. Social media is all based on interaction between people, a requirement for the ever-so-valuable word-of-mouth advertisement to exist and spread. The company that takes the lazy or safe road will fabricate a personality that shows the world the face they want the public to see, but this artifice will be found out quickly. No one will invite them back to the conversation. In fact, they will be banned from the conversation. The effect is similar to an uninvited party guest. The only difference in this case is that the uninvited guest is a programmed corporate mascot who has no familiar personality, tells bad jokes and is oblivious to the fact that the brand it represents is a joke.

Be real, flaws and all.

If you’re representing your brand in a personal manner, then be prepared to be honest through and through. The very idea of this is enough to scare a traditional marketing firm to death because there’s no control, and in the absence of control flaws will emerge. Consider the potential PR disaster that could result from this comment:

“XYZ company didn’t get my order right and they suck.”

What to do? A good Internet marketing firm advises the honest approach. People are willing to understand and forgive those that have maintained an honest face to their public. The Internet marketing superstar responds, “We absolutely messed up, and we’re so sorry. Sometimes things get ahead of us, and we make mistakes. Let us make it up to you; we want our customers to be happy and satisfied.” Granted it’s not a one-size-fits-all approach, but you can turn negative feedback into renewed customer loyalty if you have laid a foundation of being yourself. Take for instance what Flickr wrote to its community when it messed up: http://blog.flickr.net/en/2005/07/21/sometimes-we-suck/ This is where Main Street businesses, who value and cultivate relationships with their community as a whole and each customer individually, can ultimately triumph over corporations, who rely on form letters and canned responses that hold no value in the public eye.

Have a reputation for giving.

Being a friend and building a relationship demand more involvement than merely being present. You must participate and give. Share your time, your action and your help. Answer questions. Lend a hand. Be funny. Reveal your passions. Offer a smile and a pat on the back. If you are a dentist, offer free tips and answers to questions about regular dental care. If you make custom stained-glass windows, then take pictures of your art and share them with people. If you’re a real estate agent, offer advice on beautifying your landscaping to add value to your home. Earning a friend online is no different than earning a friend face-to-face.Your most meaningful personal relationships tend to be with people that are unique, interesting, consistent, funny, helpful, honest and witty. To successfully use social media as a PR tool, you must identify these same qualities in your company or your people and engage with the public in ways that demonstrate these strengths. Earning a friend online is no different than earning a friend face-to-face. Also, be consistent with your participation. You, your people and your Internet marketing agency need to be there every day – accessible and responsive – without fail. If you can’t be a friend to the public, then they won’t be your friend in any online relationship. They will not know you, you will not earn their trust, and you will be banished to the world of paid advertising on the sidelines of the conversation.

Develop your personality.

As with all relationships, people will get to know you better as time goes on. Your public persona will grow and mature. Familiarity will develop among everyone connected to you. Inside jokes will form. Achievements will be celebrated. Memories – good and bad – will be carried in the circles of people you interact with in your community. As your public comes to know more about you, your levels of meaningful interaction will increase. As time goes on, more of your personality will shine through as you relate to people who share similar interests and situations. Don’t force your personality into something it isn’t. Let things happen naturally.Your audience will continue to grow as well. You will interact with more people and at different levels of interest and engagement. A core fan base will begin to form. As your audience grows, you will have different types of interaction with your public based on how long they’ve known you and the level of engagement they have with your brand. This is an important step in the development of your voice. Don’t force your personality into something it isn’t. Let things happen naturally. Meet regularly to discuss what’s happening and how things are evolving. If you have multiple people or departments interacting with the public, then everyone must be organized and allowed to be themselves at the same time.

Get started now!

Websites do not magically generate traffic. Brands do not develop a following because they exist or because they simply fulfill a need. You must invest in relationships outside of your site for your public to begin interacting with your site, its content and then your direct offerings. Once you’ve proven that you can build relationships in other places, your followers will begin to want to hear from you directly and join in the conversations taking place on your site. However, even when they become regular subscribers, your relationship-building efforts should not stop there. Manage the conversation on your site as you do within your social media circles. Your commitment to interacting with the public who are engaging with your site must grow to match your commitment to building your site’s content and reputation (read more on the Web Marketing Universe). What does all this hard work and earnest effort yield? Genuine and memorable relationships – both with individuals and with the community at large. A word of caution: Rarely in the beginning will your efforts result in direct sales. However, you will build a solid, long-term foundation in awareness, trust and loyalty for your brand. When someone asks your subscribers if they “know a guy,” they’ll have an answer, a brand, a name they trust, a site address and a link to forward. In time, you will have a great reputation within your community. Competitors will be playing catch-up and struggling to compete against a trusted name – a difficult and expensive endeavor.

Shift your investment.

If this seems daunting – it is. However, much of the traditional advertising budgets of old are being cut and redirected to more productive ends. Consider realigning your marketing dollars to channels where the people are. Social media is a long-term investment.As with all Internet marketing and development, social media is a long-term investment. Success requires hard work, patience and commitment – all things that traditional corporate thinking with its penchant for straightforward, quick fixes doesn’t allow. However, that’s also why stodgy corporate diehards will be relegated to the antiquated methods of carpet-bombing, interruption-based advertising as the penalty for not allowing real people to engage real future customers. Using technology is important, but not at the sacrifice of the personal touch. This is where a good Internet marketing agency shines. Its goal is to help you evolve the ways in which your brand is represented to the public. In addition, a good Internet marketing plan allows for quality interaction at many different levels. A national brand, regional chain or the local bakery must differ in their approaches. Again, social media is never a one-size-fits-all solution. If you are going to take control of your fate with the public, you cannot cut corners, or you will be found out and exposed. No matter the level of business planning behind the scenes, stick to your fundamental principles: be real, be consistent and give generously. If you start today, years from now you’ll be glad you did. The decisions consumers make today are based on relationships forged years ago. Remember, real relationships create fans. Fans are more than loyal customers; they are people that do your marketing for you. In part two of this series, The Cult of Personality, we’ll be sitting down with Eliza Metz of Lime & Violet to learn how a simple idea grew into a yarn empire.

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SEO the Right Way

Search engine optimization, or SEO, is a term you’ve undoubtedly been introduced to, likely by spammy email solicitations or SEO “gurus” who promise to “fix” your site so that it rockets straight to the top of search engine results.

But is this the right approach? After all, search engines don’t buy your products or services – people do. As a result, it’s much more important to optimize your website so that it provides the best possible experience for human users, not for Google.

In this article, we’ll examine why optimizing for real people – and better serving the needs of your website visitors – will ultimately yield greater success in capturing and converting new customers. We’ll start by letting you in on a little secret that those so-called SEO “specialists” don’t want you to know: by optimizing for humans, you will also be optimizing for search engines.

Why the “SEO-Only” approach fails

Before we dive into the principles and benefits of optimizing for humans, let’s first take a look at what I call the “SEO-only” approach and why it often falls short of expectations.

Consider this scenario:

You’re in the market to purchase a certain product or service, so you type some relevant keywords into your search engine of choice. You click on the top result, and as the website loads in your browser window, the next words out of your mouth are, “what the heck is this?”

The site is a confusing mess, and there is no clear indication of what the company does, what sets them apart or what you steps you should take next to progress through the site. Frustrated, you quickly click your browser’s “back” button and select a different result from the list, hoping to land on a site that will give you information that is easy to understand and seems trustworthy.

How many times has this happened to you? If you’re like me, it happens all the time.

In the example above, the website was “optimized” for search engines, and it ranked favorably for key search phrases. This is good, as it means that when users are searching for the products or services the company offers, their website has a good chance of appearing on the first page of the search results and being clicked on. However, the effect of bringing this visitor to the website was rendered null and void because the poor user experience it offered drove them away just as quickly as they landed.

In other words, from an SEO standpoint, the site is successful, as it ranks high for the right keywords and phrases. From a business standpoint, however, the site is an abject failure. It did not convert a customer. Even worse, it drove that customer away and directly to the site of a competitor. More often than not, this is what will happen if you optimize for only for search engines and not for actual people.

The complete package

The reason the SEO-only approach does not work is because it focuses only on a single piece of the picture – achieving a high ranking.

As we’ve just seen, however, capturing a lead because of strong ranking but then losing their business due to a poorly designed website ultimately yields no benefit to your bottom line.

To truly succeed, your website needs much more than just favorable search engine placement. The complete packages includes:

• Quality design
• Intuitive user experience
• Relevant, useful and timely content
• Support for a variety of devices
• Findability

Quality design and intuitive user experience

These two items often go hand-in-hand, especially when we are talking about optimizing websites for humans. The value of top-notch design is often underestimated and seen as little more than “making things looks nice,” but quality design is about so much more than that.

A quality design is certainly one that is aesthetically appealing, but it is also one that is easy to use. The simple truth is that your customers – and potential customers – do not come to your website to admire its visual design like a work of art hanging in a gallery. They come to your site to accomplish a task, whether that is to gather information, book an appointment, make a purchase, etc. They come with a specific purpose, and a quality design is one that does not distract them from that goal. Instead, it helps them fulfill it.

The scenario we described earlier of a user visiting a website that ranked high in search results only to immediately abandon the site due to a confusing user experience is a great example of why the quality of the design is critical to your site’s success. It helps ensure that the site visitors you attract are ones you can convert into actual business.

Additionally, a great user experience is one that happy visitors will share with others through word of mouth or, perhaps, via links on social networks or blogs. A quality design and user experience can help turn your satisfied customers into promoters of your website. And as we will see in a moment, inbound links to your website can be a very valuable asset.

Relevant, useful and timely content

While an elegant design and refined user experience are very important aspects of optimizing your site for humans, great content is what gives your visitors a reason to come back time after time. Providing value-add resources that are relevant, useful and timely – and that your site visitors actually want – is how you optimize your web content for humans.

You may be proud of the awards your company has won, the great things that have been written about you, your leadership team’s accomplishments or your company’s charitable outreach efforts, but that’s probably not the content your audience is looking for. Therefore, if you’re organizing your site around showcasing this type of content, you are only serving your own needs, not your visitors’.

Optimizing your web content for your visitors means putting yourself in their shoes. Ask yourself what they want to see, and then put that content front and center. All of that other stuff can still have a place on your site, but not at the expense of elevating the content your audience is actively looking for. That content must be given top priority.

You also need to make sure your content is useful and timely. If something is no longer relevant, remove it or relegate it to your archives and replace it with something that is new and interesting. Publishing a steady stream of fresh content is one of the best ways to encourage links back to your website from visitors who found that content useful.

What about inbound links?

One of the tried-and-true tactics of good search engine optimization is increasing your number of inbound links – that is, links from other sites that point to your own site.

Search engines treat these links as votes of approval for the quality and relevance of your site and factor the number of links you have established into their rankings calculation. Therefore, the more quality inbound links you have, the better your chances of climbing the rankings.

The practice of building inbound links is not an exercise in quantity over quality, however. Anyone claiming that they can get you “5,000 inbound links quickly!” is someone you should run away from – quickly! You don’t want these links, many of which come from link farms and other spammy websites. Search engines are smart enough to discern these type of no-quality links, which can actually send your ranking plummeting or, even worse, get your site blacklisted entirely.

What you want are high quality links from real people who have read your content and want to share it with others. Whether these links live on social media platforms, articles, blog posts or another site’s brochure pages, they are produced when a thinking human consumes your content and says, “Hey! That was really good. Other people will find this valuable, too. Let me link to this page.”

These links will both put your website in front of more people who are interested in the types of content you publish and help increase your search results rankings at the same time – a perfect example of how optimizing for humans simultaneously achieves the objective of optimizing for search engines.

Support for a variety of devices

Long gone are the days when the only way a user would view your website would be when sitting in front of a desktop computer with a large monitor.

Today, you can be assured that your website is being accessed via a staggering variety of devices with an array of different screen sizes. From handheld smartphones to tablets to laptop computers to the aforementioned desktops, your website must work well on a wide range of devices in order to be successful.

If you’ve ever searched for something on your phone, found a listing that looked promising and touched the link only to be presented with a website that was designed for a large screen only, you know what a painful experience that can be – that is, if you even bothered trying to use the site. Most visitors in this situation will just leave right away and look for another site that works well on their device. Again, the site in this scenario we’ve painted was optimized well for search, and it came up favorably. But yet again, the opportunity to convert was squandered due to the site’s poor user experience – in this case, the experience of using the site on a mobile device.

Once a visitor is gone, they are likely gone for good. Expecting them to come back to your site later when they are on a desktop computer where the site will perform better is wishful – and erroneous – thinking.

Optimizing for humans means making sure your website works well for them the first time they visit the site, regardless of the device they choose to do so with.

Findable websites

Yes, this is where the traditional SEO approach of creating high rankings for relevant search terms comes in.

When a searcher is looking for the products, services or information your site offers, you want that site to rank as high as possible in the search engine’s results to give it the best chance of being seen and clicked.

Achieving this high ranking is where most traditional SEO services end, however. As this article and the scenarios illustrated so far have shown, good rankings are just the start. What your site does with the traffic it captures through organic search is equally important – and this is where human optimization and all of the elements it encompasses (quality design, relevant content, device support, etc.) come into play.

Creating a “findable” website is about more than just attaining high search engine rankings, however. You want your website to be in front of someone whenever they are in need of your products or services.

This could mean a search engine result, but it could also mean a referral from a trusted friend or colleague. It could even mean a link on a social networking site or blog.

By optimizing for humans and presenting them with truly useful content within the framework of a design that is easy and enjoyable to use and that works well on any of the devices they may use to access the site, you’ll effectively encourage them to share your site with others.

This added exposure helps increase the findability of your website and your chances of having it land in front of real people who are actively looking for what you have to offer. This is the power of optimizing your website for humans.

Humans first, last and always

Optimizing your website for humans means making choices that will help them obtain the information they need from your website or perform the task they have set out to accomplish quickly, easily and without encountering any obstacles along the way.

It means putting the needs of real people first and foremost in all decisions that shape the design and content, with the understanding that by doing so, your site will be more appealing to those people, which can in turn make it more appealing to search engines, which will attract more people and links to the site, which will make it even more appealing to search engines, and so on and so forth...

It’s a cycle of success that starts with making sure that every element and every aspect of your site is carefully chosen and crafted to create an experience that is optimized for the human beings who will ultimately decide whether or not to purchase your products or services rather than just for the search engine algorithms that can only decide where your site ranks on a page.

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