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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Vine 101: 10 Ways to Engage Your Customers in 6 Seconds or Less

Less than a year ago, three guys in New York City were working to build the next big thing in social media – a mobile video-sharing app called Vine. Their origin story echoes that of a thousand other start-ups we'll likely never hear about. But fortunately for the Vine guys, their little sprout got a big dose of Miracle-Gro when Twitter bought the start-up before it launched the app. Backed by the juggernaut of Twitter's resources, influence and platform, Vine reached the top spot in the free apps section of Apple’s App Store within just a few months of launch. Beyond this fast take-off and the Twitter fire-power that fueled it, it's also worth mentioning that Twitter co-founder Jack Dorsey is believed to be the driving force behind the acquisition. Dorsey is also the co-founder of highly successful mobile payment service Square, so you might say he's kind of a big deal in the world of tech start-ups. So that’s the story of how in just a few short months this newcomer to the social media scene has taken root and made a name for itself as a viable contender among the more well-established platforms (Facebook, Twitter, Instagram, etc.). Daunted by the idea of incorporating yet another social media site – with its own set of rules and idiosyncrasies – into your marketing program? Don’t be. Here’s a quick run-down of the basics and some inspirational ideas to help you get started using Vine to connect with your socially-savvy customers:

Getting to know Vine

Integration with Twitter

Even if you have no need or desire to support another social media tool, it's worth embracing Vine as an extension of Twitter. The two apps' tight integration makes Vine a convenient way to tweet video and audio. Vine’s short 6-second-or-less clips complement Twitter's 140-character microblogging format, so the name of the game is just the same: whatever you share, make it quick and compelling.

Simplicity

After using Vine for a few minutes, it will become evident that its development team focused on simplifying the experience of making and sharing videos. Creating a Vine requires little more than pressing the record button in the upper corner (conveniently labeled with a camera icon), touching the screen to start recording and releasing it to stop. Tap the checkmark to keep the video, add a caption and location if desired, then post to Vine, Twitter or Facebook. That's it. Concept, creation and publication in less than 30 seconds.

Big creativity in a small package

Doing more with less can actually push your creativity to yield impressive results. Without the complicated tools of traditional video production – with its expensive cameras, lighting and post-production – Vine both forces and frees users to focus on creativity, distilling ideas down to their purest form to tell a soundbite story.

Looping

Vine videos loop automatically. In fact, this feature is so central to the user experience that it's mentioned in the app store's very short description: "See and share beautiful looping videos." With their six-second time limit, Vine videos are often jumpy and hard to process on a first viewing. Looping enables viewers to catch missed details the second or third time around. But many Viners are also using this loop feature in creative ways, making videos in which repetition is central to the concept, like the 1990s cult-hit Groundhog Day.

Vine-spiration

Now that we’ve covered the basic how-tos, here are 10 ideas for using Vine in your marketing mix. One quick note: to pause any of the Vines below, just click on them.

1. Introduce yourself.

Share a behind the scenes look into your company culture, show off your super-talented staff or give a sneak peek into a special project. A simple wave from everyone will do, or like restaurant VIA, you can make it fun by making faces, or tap into an internet meme like planking as a team.

2. Make a stop-motion movie.

No matter how advanced video technology and special effects have become, stop-motion animation, with its often jittery feel, has captivated generations of children and adults alike. With its simple touch-based recording, Vine is built for stop-motion experimentation. Many of the most popular Vines use this technique, as seen in this gem from Twitter designer Ian Padgham (@origiful).

3. Build brand buzz.

Create a Vine tease to get followers excited about an upcoming event or product launch. Unlike commercials or marketing pieces with their long, resource-intensive production requirements, Vine is an easy way to promote in real-time. Late Night With Jimmy Fallon didn't need six seconds to tease a guest appearance by pop-star Justin Bieber – just a wig and a wink.

4. Introduce something new.

Maybe you can't afford a multi-million-dollar Super Bowl commercial to introduce a new product or service to the world, but hey, you've got Vine, right? Okay, okay. We know it's not the same thing, but even Pepsi, with its enormous marketing budget, turned to Vine to show off the new shape of its bottles. And their effort definitely did not cost millions to make.

5. Poll your peeps.

Want to take the pulse of your followers? Create a Vine that visualizes what you want to measure, and then ask for input in the comments. Comcast wanted to gauge the impact of promoting its SportsNet Twitter account during a hockey game. They owned the copyright for the broadcast, so they just published the clip on Vine. From the looks of things, they probably just recorded it right off the TV screen. Low tech, yes, but it works.

6. Create a moment of zen.

In the frenetic world of social media, a little tranquility is always welcome. Simply giving people a moment of calm among the chaos of the day can earn your brand some positive vibes by association.

7. Try some trivia to drive engagement.

People of all ages and backgrounds love trivia, and many can't resist a good riddle. Verizon mashed together game play, pop music and a feel-good holiday to give followers fun Valentine's Day-themed riddles.

8. Game on!

Like trivia, games are a great way to keep people engaged with your brand. We'll admit this one is a real challenge, but Vine user Brandin6 found a fun way to recreate a popular game from the 80s that gives new meaning to the term "video game."

9. Lure creative people to your team.

Want to find people for your organization that are social media savvy and creative? Vine is a great way to share your company culture in ways that will attract like-minded individuals that will keep that culture going strong. Better yet, hold a contest and have candidates submit Vines about why they want to work for you. It's a much more entertaining way to weed out applicants than giving resumes a ten-second look.

10. Celebrate the holidays (even the silly ones).

Even the most obscure holidays are good opportunities to produce entertaining content, like this geeky Pi Day celebration by our friends at VaynerMedia. The common theme underlying all of these ideas and examples is this: look for any excuse to make a Vine and then be as creative as possible. The Vine community rewards creativity. In fact, it's the driving force that fuels engagement with this new tool on the social media block...Hey, there's another idea: a New Kids on the Block parody. Vine win!

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Mythbusters: Website Edition

As a web designer, I routinely speak with business owners and marketing managers who are in the midst of a website redesign project for their company. During these conversations, I am always amazed by the myths about user experience and interface design that they mistakenly cling to. Many of these misconceptions are the by-product of previous website projects – leftover relics from an Internet of old. Others are more baffling, as their tenets are not now and never were true. So in the interest of championing the best practices and principles of modern website design, we’re channeling our inner myth busters and blowing the lid off five of these most persistent myths (dramatic explosions not included):

Myth #1: Visitors need/want instructions on how to use your site.

The Internet is no longer a new and unfamiliar medium, yet many companies still populate their websites with content that seems targeted to someone who has never actually navigated the Web before. When you include instructions for visitors about how to use to your website, you are adding a lot of extra words, which in most cases only serve to weigh down your pages with unnecessary visual clutter. In fact, the goal of any good design is to create an interface that is so intuitive that no instruction or explanation is necessary to help visitors move from one page to the next and complete routine processes such as making a purchase or signing up for an account. As a result, if you feel instructions are necessary, that inclination is a major red flag for serious design flaws that must be addressed in order to provide a quality experience for your user. To be fair, there are certainly instances where some level of guidance is needed. Complex interactions or applications that are truly unlike anything that has come before on the Web will require some level of training for your users, but the vast majority of websites do not fall into this category. If your site is, well, just a website (and there’s nothing wrong with that!), forego the instructions and have faith that your users are savvy enough to know and understand the well-established conventions of using the Internet.

Myth #2: These days, everyone has a high bandwidth connection.

Over the last few years, the average size of a webpage has doubled, largely due to our profuse use of images. Current design trends that call for giant, page-spanning photographs combined with the drive to deliver high-resolution images for retina displays mean that the file size of the images we are using continues to climb. Many people argue that this is acceptable because, as the size of our webpages grow, so does the bandwidth speed of our Internet connections. But is this really the case? It is true that the number of people with access to high bandwidth connections continues to increase, but the belief that all visitors have the benefit of a lightning-fast connection is nothing more than wishful thinking. There are still many areas of the country and the world that are shackled to the type of slower connections that are only a distant memory for many of us. Also, keep in mind as well that mobile visitors may be operating on a network that is either unreliable or has data download limits. In both of these instances, a website that is bloated with large content (i.e., giant videos, unoptimized images, etc.) will pose a problem. Ensuring that your website is optimized for performance is as important today as it has ever been, regardless of how fast connection speeds may be. After all, no one has ever said, “Wow, this website loaded TOO quickly for me!” Better performance and faster downloads improve the quality of experience for all users.

Myth #3: There may be some users visiting your site on a mobile device, but not that many.

Years ago – when the iPhone was still a novelty and everyone and their 12-year-old brother didn’t walk around with a smartphone in their pocket – this may have been the case. But today, visitors are accessing your website on a wide variety of devices with a range of different screen sizes. Examining the hundreds of websites that we manage reveals that an average of 30 percent of all traffic to those sites comes from mobile devices of one kind or another, and for some, it’s as high as 50 percent or more. This is consistent with the forecasts of industry analysts, who predict that by 2015 – that’s next year, folks! – the majority of all Web traffic will come from mobile devices. Additionally, not only are visitors accessing your site on mobile devices, but the same visitor is likely using multiple devices to access your content. We call this the “muti-device user”. As we covered previously in our article “Website Design for a Multi-Device World”: The multi-device world is populated by multi-device users. While a staggering variety of devices are, indeed, being used to access web content today, it’s also important to remember that the same user is often using multiple different devices to access your website – and they expect that site to work well regardless of which device they happen to be using at the time. Gone are the days of “mobile users” coming to your site only to locate your phone number or directions to your office. Today’s mobile users – and multi-device users – expect convenient, on-demand access to the same content that they can find on the desktop version of the site. Clinging to an outdated belief that “no one has a reason to visit my website on a mobile device” will quickly translate to “no one has a reason at all to visit my website at all.” Read more: Website Design for a Multi-Device World

Myth #4: You should open off-site links in a new tab/window.

This is the most common myth that I hear from clients, who insist that all links that lead to another site must open in a new tab or window. This request stems from a belief that if a visitor leaves your website to look at content somewhere else on the Web, they will never find their way back. By opening that link into a new tab, your website remains open in the user’s browser for them to return to at any time. Or at least, that’s how it works in theory. Unfortunately, I have seen this practice backfire on a number of occasions. Why would this be the case? Think of the Web as a linear experience. You move from one page to another and another. You can travel seamlessly to and from any point along  this timeline by using the browser’s back and forward buttons. But when you open a link in a new tab, you start a new timeline for the user. Having observed many website users over the years, I can tell you that the back button is a feature that they are intimately familiar with. If that user clicks a link and visits a new page, and they then want to return to your site, they will intuitively click the back button until they get there. However, if you’ve opened the off-site link in a new tab or window, then the back button eventually leads to a dead-end for that visitor. Your site, which they want to return to, is not part of their current timeline because it is open in a completely separate tab. Of course, all the user needs to do is close the current tab, and your site will be in front of them again, but I’ve seen many visitors who are unaware of or confused by this. Instead, when the linear experience of the back button doesn’t bring them to your site as they expected, they instead type your website’s URL into the browser’s address bar, thinking that something went wrong along the way. They now have two instances of your website open, so in your efforts to “help” them easily get back to your site, you’ve actually confused the user experience. Does this mean you should never open links in a new tab or window? No, it doesn’t. For example, it’s a good practice to open PDF files in a new tab because these documents feel like they are separate from the linear experience of browsing a site. Additionally, opening links in new tabs is not “wrong,” per se. It is an acceptable solution, but if you choose to use that approach, do so for a reason other than the mistaken belief that if visitors leave your site, they will never find their way back. The linear experience of web browsing – and using the back button to return to a webpage – is a well-understood convention, so don’t be afraid to let your visitors explore in the manner that is most natural to them.

Myth #5: Visitors absolutely will/absolutely will not complete a form.

The final myth we will debunk concerns web forms. Interestingly, I hear competing opinions from clients regarding forms on their websites. Some believe that visitors will not fill out a form no matter what. Others think that their users will gladly complete a lengthy questionnaire for almost no reason at all. As usual, the truth lies somewhere in the middle of these two extremes. Gathering information from website visitors is a valuable exercise. It allows you to understand who is coming to your site so you can follow up with them, engage with them and hopefully convert them into paying customers for your business. Just asking for visitor’s information is not enough, however. Very few people will be willing to complete a form unless they have a clear understanding of what they will receive in return – and what they receive needs to be of greater value to them than receiving more marketing from you. This value can come any number of different ways, such as receiving a free whitepaper or application download or registering for an event or webinar. In each of these cases, there is a legitimate reason for your site visitors to complete a form that gives you their personal information. If, however, your form simply says, “Sign up for updates!” without any further information about what those updates entail, how frequent they will be delivered or what potential value they hold, then there is a slim chance anyone will be inclined to complete that form. Creating a valuable offer is step one. Step two is the design of the form itself. Asking for too much information will be a roadblock for many visitors, who will either perceive a form with a large number of fields as being too cumbersome or too intrusive to complete, so the best course of action is to ask for only the information you need. If you never intend to call someone, then don’t ask for their phone number because that’s one less obstacle you’ll have to overcome. The more concise and easy your form is to complete, the more likely your visitors will do so. Website visitors will fill in forms, as long as you make those forms easy to complete and provide value to them in exchange for sharing their information with you.

R.I.P. myths and misconceptions

The Web and the behavior of its users are constantly evolving. Since the last time you engaged in a website redesign project, there have undoubtedly been a number of shifts in trends and tendencies, and what you learned through that experience even just two or three years ago may not be applicable today. Because of this ever-changing landscape, the importance of working with web development firm that keeps pace with these changes and the best practices of modern website design cannot be understated. Such a partnership will ensure that the decisions driving the the design of your site are relevant to today’s Web and are not relics of a time gone by.

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