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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Prying the torch from the dead hands of old marketing

Today, there is freedom in marketing. No longer is the loudspeaker of the media controlled by a select few. As a result, so much more can be gained than ever before, all with fewer resources and less risk. The playing field has been officially leveled—and not a minute too soon.

Old Marketing is dead

Why? Our culture and means of information exchange have changed so much, so quickly from traditional conventions that have been used for so long. Today’s business must completely reshape and retool its approach to effectively market itself. The Old Marketing company—ingrained in these old systems for so long—simply cannot keep up with a culture that has transformed itselfBefore these drastic changes, our lifestyles and culture were based on a handful of media. Television, print, and radio were the anchors of mass information exchange and business promotion. If you owned a business or were charged with growing a company through marketing, then you were shackled to dealing with media and promotional entities such as television commercials, newspapers and the Yellow Pages. These industries are dying because they are being replaced by new systems. Remember the days of paying $2,500 a month for a lousy local, black and yellow ad in the Yellow Pages? Or tens of thousands of dollars for a local television ad, locked-in with a long-term contract and little measurables? That age is gone. The Old Marketing company—ingrained in these old systems for so long—simply cannot keep up with a culture that has transformed itself with the advent of the Internet and modern systems of communication. As a result, old, slow and expensive marketing companies are dying right along with those old systems. The ones that haven’t died yet are in a panic. They are scrambling to restructure business models, personnel, objectives and the sales pitches in order to reassure their clients that they now can pull off the new marketing ways.

The dirty little secret

In fact, this “scrambling to catch up” is a hushed truth among all marketing agencies. Marketing itself is not going to admit its own flaws in its business—that would be certain death. Agencies instead claim that they’ve been there all along. Nothing could be further from the truth. Need proof? This is easily evidenced by the marketing industry’s own publications and associations. Articles are rampant on how marketing agencies need to change to stay alive. On any given day there are a multitude of seminars for marketing firms to attend with subjects like, “leveraging web technology,” “selling SEO to your clients,” and “understanding social media,” as if these issues were still on the horizon waiting to be realized.

Marketing sold its soul long ago

The Internet may have been the axe, but it actually didn’t take the dynamic of the rule-changing Internet to bring the marketing industry to its knees. They sold out long ago. Marketing agencies have been on the gravy train for a very long time. This is what happens when media and information systems are few, with few in control. A few deals made here and there with the few controlling mass-media, local media, even the Yellow Pages—all with enough middle men in place to get their cut—eventually makes an industry so fat that it won’t forgo those systems, even when the walls are torn down. Bottom line: the money’s just too easy when you’ve got that kind of control. Marketing agencies employed tactics to pull clients in and lock them in. They knew the middle-men in all of the processes of print, television and radio. They knew who to kickback to. They even employ “media buyers”—a term that, as the years tick by, becomes more and more indicative of an era long gone. Can you believe a person—or even an entire department—employed in the position of “media buyer”? What were originally “creative agencies” became agencies only good at selling themselves to their clientsEven then, marketing's problems were deeper. What were originally “creative agencies” who served to shape, grow and represent the spirit of their clients brand, evolved into companies who simply became greedy—good at only selling themselves to their clients, but no longer about the work of their clients. Don’t believe me? Let’s talk about Leo Burnett. Leo Burnett Inc. is one of the most renowned agencies in the world. They earned their reputation serving one key philosophy: that nothing could replace the marketing firm’s charge of “being the spirit of the client’s brand.” Coupled with a firm understanding of what it took for each client to get and keep their customers, Leo Burnett was also known for the quality of their creative work and eventually earned the responsibility of brands like Kellogg's and McDonalds. Founder Leo Burnett recognized that the industry was in danger of selling its soul out long ago. One of his famous speeches, “When to Take My Name Off the Door”, delivered on December 1, 1967, was based on that very fear: He knew where the industry was going. And sure enough, it’s there—probably worse than he thought it could be.

What's the right way?

Traditional marketing companies identify that their own competition is no longer their peers in the same market, but the budding, New Marketing company that is web-based from the ground up. Why? They’re faster, smarter and more experienced in today’s systems. They also don’t have the burdens of expenses and bloat that Old Marketing firms have. They can turn on a dime. They move quickly. The New Marketing company that is web-based from the ground up is faster, smarter and more experienced in today’s systems.Today, successful marketing begins with the knowledge and experience to create exposure, build awareness, harness interest, and position business and all supporting systems within today’s web universe. Your marketing firm needs to understand why things work they way they do, and how people and prospects come to know and trust a brand in today’s world. Also, today’s New Marketing company is one that hasn’t forsaken the principles that are timeless, but is one that takes advantage of all that’s afforded in today’s business world to shave off unnecessary expenses.

• OUT: are deals with a select few in a position of control. IN: is the reality of true, choice-based media, entertainment and communications via the Internet and the technologies that are used by choice because they offer more and make better sense.
• OUT: are expensive payments to old, big, slow agencies—all carpet bombing to grow your business. IN: are fresh and nimble development firms who know how to surgically target the necessary areas to build a brand, position it and construct a network around today’s communication systems to promote and grow business.
• OUT: are paying for enormous overhead expenses in big buildings, expensive furniture, and lavish offices. IN: are virtual and hybrid marketing firms that work fast and don’t pass on the bloat of unnecessary expenses to their clients.
• OUT: are working through layers of costly production managers, account executives, supervisors and managers before you get to the real people that do the work. IN: is the successful marketing company that establishes access to key architects and creative producers who are integral in the ideas, concepts and the details essential for success.

So, as traditional marketing firms continue to pass on the overhead of their expensive offices, furniture, lifestyles and worst of all, the cost associated in how to figure out this "Internet thing," the New Marketing company has an inherent understanding of what works and what doesn’t in today’s culture. They are still marketers, founded in the purpose-driven goals of growing a business—however, the New Marketing firm, knows how today’s business is grown and built.

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Guest Blogging 101 (Or How to Grow Your Audience by Giving Away Your Best Material)

Growing community and conversation around your brand is no easy feat; it requires dedication, focused effort and time. In addition to creating a platform that’s easy to navigate and top-notch content that drives engagement, you must constantly promote yourself to raise awareness and bring fresh eyes to your material. As counter-intuitive as it might sound, when you’re in the process of trying to grow a fledgling handful of followers into a thriving community of dedicated readers, one of the best ways to do so is by giving away your best posts. Why? Because in building relationships with bloggers who have already developed a community of followers whose interests overlap with your area of expertise, you can gain exposure to new readers who will then hopefully take an interest in hearing more of what you have to say. As a blogger myself, I've done this firsthand through Facebook, Twitter, Pinterest and strategic guest blogging opportunities. Though a bit intimidating at first, reaching out to bloggers I admire who cover similar topics has yielded valuable guest blogging opportunities that have helped me to steadily increase my reach and gain new readers for my own blog. Based on that experience, here are five secrets to success in scoring great guest blogging gigs that will help you grow your audience:

1. Know your niche.

What topics do you cover? How often do you post? What are your visitor stats? Who is your ideal reader? You need to have a strong grasp of these things so you can identify the right bloggers to connect with whose audience will most closely align with your own. It’s also important to make sure that somewhere on your site – whether it’s in the sidebar of your blog or on your about page – you have an introduction that’s crafted to quickly and succinctly orient new readers to your community. Focus on the reader’s interests by briefly explaining who you are, what topics you cover and what qualifies you as an authority in your niche. Point them to your most popular posts and invite them to subscribe to your content. And don’t forget to include a way for them to get in touch with you to pave the way for conversion from causal reader to paying customer.

2. Do your research.

You don't want to connect with just anybody out there with their own platform; you want to be strategic with the relationships you build. As a creator of content, you likely read quite a few blogs yourself. What are they? Do they cover similar topics? Is their demographic the same as yours in any way? It may be helpful to make a spreadsheet with these details, along with contact information to make your life a little easier when it comes time to reach out.

3. Become a prolific commenter.

By commenting, I mean both on your own blog in response to comments from your readers and also on blogs that you regularly read and follow. The blogging world is all about connection, community and driving conversation. If you stay silent, you’ll cut yourself off from opportunities to cultivate a more deeply engaged reader base. Although it may be impossible or impractical to reply to every single comment on every single blog post you write, you should make a habit of checking the comments section and replying to readers directly. Better yet, see if your platform has a tool that will alert you by email whenever you receive a new comment so that you can reply quickly and boost the chances of keeping the conversation going. When commenting on another author’s blog post, be sure to leave a thoughtful response. Avoid generic feedback like, “great post,” and opt instead for noting what what you found uniquely insightful or inspiring about the post, asking a question that provokes further debate and discussion or even answering a question the writer might have posed within the post itself. By doing so, you not only contribute in meaningful way to their community, but you also encourage them to check out your own blog as well.

4. Make a pitch.

Once you’ve acclimated to interacting with other bloggers and have a strong grasp of blogs that are aligned with your own blog’s niche, it’s time to reach out and make a pitch. By now, you should be very familiar with the content on the blogs you’ll be pitching to—what topics they cover, what they’ve written about recently, who runs the blog, etc. Not sure where to go from there? Here are some suggestions for crafting your message:

• Employ a tone that’s personal and friendly while keeping your request brief (no more than two paragraphs).
• Reference some of their recent posts so they can see that you are a real follower of theirs and you’re not just sending out the same pitch en masse to anybody with a blog.
• Provide links to your blog, portfolio and social media profiles to help them get a feel for your expertise, writing abilities and point of view.
• Be specific about what you’d like to write about, whether it’s a certain topic where you have expert advice to give or a series they’re doing where you can offer valuable insight.
• Follow up if you don’t hear back, allowing a week or so to make sure they’ve had time to review and process your request.

5. Become a contributor.

If you happen to have a little extra time on your hands, becoming a regular contributor on a high-traffic blog is a sure-fire way to connect with new readers who otherwise may not have found you. In addition to building your portfolio and legitimizing your expertise, being a contributor ensures major publicity for your content and exposure on a much broader level. Although developing an organic following will take some time, defining your blog’s niche, finding similar blogs to strategically connect with, engaging in the blog community through comments, pitching ideas to bloggers and contributing to high-traffic sites on a regular basis will help you develop valuable connections that will lure new readers to your blog. And when you feed these readers a steady diet of insightful, conversation-provoking content, you’ll find they’ll not only become a regular fixture in the burgeoning community that’s developing around your content and your brand, but that they’ll also become your allies in recruiting new members by sharing your great stuff within their own circles.

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