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

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

1. Flash intros

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

2. Pop-over windows

As site owners became increasingly eager to turn their web presence into full-blown conversion engines, the pop-over window rose to popularity. As soon as a new visitor lands on the site, BAM! they are greeted with a request to complete a form to provide their contact information in exchange for a welcome discount offer or to follow the company on Facebook for future updates and promotions, thus giving the company all the ammunition they need to continue their engagement long after that visitor has moved on to other corners of the Web. But while these pop-overs are good for site owners (at least in theory), they are very disruptive for the user and provide roadblocks that only make it more difficult for them to accomplish what they originally came to the site to do. As a result, any value that might be gained in collecting the user’s data is quickly negated if that user has no interest in continuing their as a result of this negative first encounter. Thankfully, good UX is winning this battle, and the pop-over is falling quickly out of favor. Reality has set in that no one comes to a site for the express purpose of helping the site’s owner market to them, so it’s hardly the best way to lay a foundation for a successful long-term relationship. Instead of leading off the conversation with your survey request, Facebook follow prompt or current promotion, simply allow your visitors to dive right into the site to find the information they’re seeking or complete their desired task. Keep your mailing list sign-up and Facebook links in your site’s universal framework, and if you do your job in creating a positive experience for them, your visitors will willingly allow you to become a presence in their email inbox or their Facebook news feed all on their own. Read more: Deal-Breakers and Dead-Ends: Six Turn-Offs That Alienate Website Visitors

3. Animated billboards

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

4. Information overload

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

5. Drop-down menus

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

6. Contact forms

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

7. Third-person narratives

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

Beyond keeping up with the Jonses

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

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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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