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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Shut Up and Blog Already

You know you should do it. You know other people who do, and they make it look so easy. And yet you can’t think of anything more intimidating than staring at a blank page and a blinking cursor. You can find reasons all day long to rationalize why you haven’t yet started your own blog, but none of those justifications are going to help your business grow. It’s time to stop being your own worst enemy and start understanding why the excuses that are holding you back are all in your head.

1. I’m not a writer.

So you’re not a writer – at least not by trade. Big deal! Neither are many very successful bloggers. They’re entrepreneurs, artists, community activists, foodies, moms and even CEOs. Instead, what they have in common is passion. Always keep in mind that what you have to say is far more important than the mechanics of how you say it. A blogger’s purpose first and foremost is to entertain and engage. If your punctuation is less than perfect or your sentence structure leaves something to be desired, no one is going to report you to the grammar police. But if there is no conviction behind your words, no one is going to invest their time in reading your blog week after week. Your writing style should be easy and informal. Don’t approach the task of creating a post like you’re writing a research paper. Instead, imagine you’re sitting down to dash off a quick e-mail in response to someone who has asked you a question about your chosen topic. Keep your entry brief and conversational. When you’ve finished writing, read your post aloud to yourself. If you trip over words or phrases because they feel unnatural or clunky, go back and simplify them. Always keep in mind that what you have to say is far more important than the mechanics of how you say it. No one is grading your blog with red pen in hand. Authenticity and personality count far more than perfection any day of the week. Just loosen up and let your own voice come through. Not only will this make your writing more approachable, it’s the very foundation of building credibility and trust. After reading one post, your readers should feel as if they’ve met you; if they continue to follow your blog over time, they should feel as though you’re a familiar friend.

2. I’m not a designer or a programmer.

Stop right there. Nope – not another word. Can you use a word processor? Can you open a web browser window? Can you attach a file or a picture to an e-mail? If you answered “yes” to all three of these questions, then congratulations, my friend, you have all the technical and artistic know-how you need to be a blogger! There’s no reason to let technophobia hold you back from reaping the benefits of blogging – not when you can take advantage of user-friendly, do-it-yourself tools like Google’s Blogger. Blogger is designed to give anyone the power to publish. The interface is so intuitive and easy to navigate that you can have your blog up and running in just minutes, and best of all, it won’t cost you a dime. Simply choose from an assortment of templates, select your preferred combination of colors and fonts and away you go. Creating posts is easy, too, and you can even enhance them with links, photos and video. You also can assign each article to a subject category of your choosing to help your readers find related content according to their specific interests. Of course, you’ll get an even greater return on your time and effort if your blog is hosted on your own website, since your visitors can read your latest entries and peruse your archives without ever leaving your primary site. Still, there’s no cause for concern. Simply partner with a good web development firm like Fame Foundry that can help you integrate your blog into your existing website in a way that’s consistent with your brand and provide a content management system that’s just as easy to use as any of the free do-it-yourself tools. No matter which approach you choose, you’ll be surprised to find how simple it is to get your blog up and running and how little time it takes to publish new content.

3. I wouldn’t know where to begin.

One of the best things about blogging is the fluidity and flexibility of the medium. As a blogger, you are your own writer, editor and publisher. That means that there are no hard-and-fast rules to which you must adhere. Think of your blog as a blank canvas that’s waiting for you to add color, shape and texture. As a blogger, you are your own writer, editor and publisher. There are many different ways you can approach blogging – each one of them just as valid as the next. You might choose to use your blog as a platform for reporting industry news and forecasting trends, for providing useful advice and how-tos or for journaling your personal experiences in order to help others who are trying to achieve similar goals. Some very popular blogs like Catalog Living are nothing more than an ongoing series of images with funny captions. One of the best ways to get started is not by writing at all. Instead, it’s by reading. If you’re seriously considering starting your own blog, you should make a point of reading other blogs every day – blogs that talk about subjects that relate to your business and industry, blogs written by your competitors and even blogs that have nothing to do with your particular field but that you find enjoyable and entertaining regardless of the subject matter. Subscribe to the RSS feeds for these blogs and set aside a few minutes each day to scan through the latest posts. You don’t need to read every entry, just the ones that strike you as most interesting. Look for commonalities among the blogs you read daily for pleasure. What do you enjoy about them most? When you find an article that you can’t stop reading, take a moment to analyze why it is so compelling. Is it the writer’s voice, their unique approach to their chosen topic or the way they’ve organized their argument? Pay attention as well to the headlines that catch your eye and think about what makes them captivating. Over time, as you assimilate these observations, you will achieve clarity about what you want your blog to be and how to craft posts that will keep your readers hooked.

4. I don’t have time.

Blogging is a medium created by and for the culture of the Web, which is one in which attention is always at a premium. As a result, it is the ideal information exchange platform for the time-starved – both writer and reader. Blogging is not an exercise in filling up a page. Your job is to take one very narrowly defined topic and put your unique stamp on it. Blogging is not an exercise in filling up a page. More than newspapers, more than magazines and more than trade journals, blogging is about specificity. Your job is to take one very narrowly defined topic and put your unique stamp on it. Some of the best, most powerful blog posts are also the shortest. At Fame Foundry, one of our favorite bloggers is Seth Godin. His entries are rarely more than five or six brief paragraphs in length (some are as brief as five sentences), but every last one of them hits home. We are devoted followers of his blog because we know that in exchange for just a few minutes of our time each day, we’ll walk away with profound insights that inspire us or reinforce our belief in the way we do business. Blogging is not your full-time job, nor should it be, so follow Seth’s example. Use the time you do have to string together a few sentences, but make each one of them count. Keep your topics focused and your points sharp. Short, compelling posts will make your work as a blogger manageable while keeping your readers coming back for more. Also, remember that writing is like running. The first time you strap on a pair of shoes and hit the pavement, every step is painful and every breath is labored. But the more you do it, the more effortless it becomes. Whereas once you might have thought you’d never complete a full lap around the block, soon you’re taking on a 5k as though you’ve been a runner all your life. The same principle holds true for writing. With practice, you’ll get better and faster. It might take you two or three hours to write your first entry, but once you get a few under your belt, you’ll find you can crank out a post in just an hour, half an hour or even 20 minutes. The creative process that at first feels arduous and awkward will soon become routine and, believe it or not, even enjoyable.

5. I don’t have anything interesting to say.

Don’t think of your blog as a podium; think of it as the microphone at the center of a town hall meeting. You aren’t there to deliver a monologue; you’re there to start the conversation. Your job is not to sell; it’s to educate, inform, entertain, excite and provoke thought while leaving room for others to join the discussion. Here’s a piece of age-old writing advice: Write about what you know. When you write about what you know, you’ll write with passion and authority. Your writing style will be more natural and conversational, not like you’re writing a term paper. You’ll have the confidence to make big, bold statements, and you’ll never run out of things to say. Here’s a piece of new-age blogging advice: Write about what you know, but do it in a way that’s different from anyone else. With hundreds of millions of blogs in the world, it’s likely there are many others that cover the same general subject matter as yours will. What will set you apart is the way you apply your unique cache of experience, expertise and perspective to that subject to create original content that is useful and interesting to your readers. Let’s say you run a bakery. Baking is a science, and you are an expert in that science. As a result, you have a limitless source of material. How many people understand the fundamentals of baking a basic pie crust? How many would love to know how to make use of that bread machine that’s been collecting dust in the cabinet since their wedding shower? Are there other blogs in the world about baking? Of course. But none of them have your distinct voice, your particular experience and your individual point of view. Maybe you own the neighborhood coffee shop. Nowhere is it written in stone that you must write about coffee. Your blog could be about the neighborhood you serve – what’s going on, the issues people are concerned about and the events that are happening around you. For you, a post could be nothing more than a collection of photos from the neighborhood chili cook-off. Does that have anything to do with what you sell? Nope! Are people interested in it? You bet! The loyal local following you could build with this type of blog is something that even Starbucks or Dunkin' Donuts would envy.

6. I can’t come up with enough good ideas to keep it going.

If you sit down in front of a blank page and wait for great ideas to come, chances are, they won’t. You’ll just find yourself staring at the cursor, anxiety building as the minutes tick away. Instead, to be a successful blogger, you should be constantly mining the world around you for inspiration. Just as reading other blogs can help you develop your voice and sharpen your point of view, it is also a bottomless wellspring of creative fuel. To be a successful blogger, you should be constantly mining the world around you for inspiration. As you browse through your RSS feeds, you might come across an article that you disagree with completely. Why not share your take on the subject? Or perhaps you stumble upon an interesting observation and find a way to tailor it to be relevant and relatable for your particular audience. You might even find ideas spread across four or five different articles that you can weave together into a comprehensive how-to guide for your readers. No matter the source, you’ll likely find that inspiration rarely strikes at your convenience, when you have time to sit down and write a post. To make sure you never let a good idea go to waste, keep a running idea log. This doesn’t have to be anything formal – just a simple text file or even a handwritten journal will do. The most important requirement is that it can be kept within easy reach at all times. Jot down any and every idea as it comes to you, even if it’s not fully developed. Include the link to the article that inspired you and make a few basic notes about what you want to say on the subject to help jog your memory later. When it comes time to write your next post, simply choose a topic from the list and pick up where your notes left off. You’ll never find yourself wasting your precious blogging time just hoping and praying to land on a great idea.

7. No one will read it anyway.

For a while, it might feel like you are talking to an empty room. You’ll be tempted to throw your hands up and quit, but don’t. Persistence is your friend. Successful bloggers stick it out. You must begin with reasonable expectations and realize that it might take a year or more to build a following. However, even while your readership is low, your efforts are not in vain. Persistence is your friend. Successful bloggers stick it out. Think of your initial weeks and months of writing as laying the foundation for your blog. Your first entries will be fundamental in establishing who you are and what you stand for. You’ll likely find yourself referencing these foundational posts again and again, and by linking back to older articles, you’ll encourage new visitors to delve into your archives and see what else they might have missed. It’s also important to understand that your job is not done when you hit the publish button. Traffic building is just as much a part of blogging as research and writing. Post links to your latest content on social networks like Facebook and Twitter. Also be sure to include social media badges on your posts to make it easy for your readers to share content that they like with their friends and followers. Another way to bring more eyes to your blog is by becoming an active participant in the community that exists around your topic. As you are scanning through your RSS feeds each day, look for opportunities to post insightful comments with links back to your blog when relevant. You should also approach the owners of more well-established blogs and volunteer to write a guest post, which will give you exposure to their regular readers. Likewise, invite other bloggers to write for you. They’ll promote their gig, and you’ll benefit from their connections. Finally, remember that blogging isn’t just a numbers game. If the purpose of your blog is to help your business grow, it’s not about the volume of readers but the quality of your readership. Are you reaching people who might have a need for your product or service? Are those readers actively engaged? Do they make a point of reading each and every new post? Are they sharing your content with their circles of friends? A small community of dedicated followers who fit within your target audience and evangelize for you is much more valuable than thousands of disengaged subscribers who might only occasionally read your articles and will never buy from you.

Sit down. Start typing.

You’ll never blog if you don’t try. Start reading. Start writing. Before you publish anything, ask friends, colleagues and mentors to review your drafts and give you their input. Your initial attempts may never even see the light of day, but that’s okay. These practice runs will help you dust off your writing skills, define your content niche and get the ideas flowing. If you need a push in the right direction, let Fame Foundry help. We can work with you to launch your blog and help you develop relevant, original content that will establish you as the voice of authority for the tribe of people who share a passion for what you do.

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Building a Thriving Community Ecosystem: The Five Essential Elements

What is an ecosystem?

In nature, an ecosystem is defined as “a system formed by the interaction of a community of organisms with their environment.” In today’s culture of the Web, an online ecosystem is essentially the same thing – the organic result of the interactions that occur between the members of a community and the environment that they live in. It cannot be defined in and of itself but only as the sum of its thousand moving parts. For brands that exist in today’s culture of the Web, there is no higher echelon of marketing than establishing your own community ecosystem. Why? Well, it’s one thing to interact with your customers and fans in an ecosystem that someone else has built (e.g., Facebook, Twitter, etc.). However, because you didn’t build the ecosystem, you’re limited to one-off interactions that are structured according to the framework defined by the architects of that community (140 characters, anyone?). On the other hand, however, when you’re the one that builds the sandbox, it’s your party. Your website becomes the place where members of your tribe choose to hang out, to debate, to share and to be inspired by their peers – who, incidentally, are other members of your tribe. Most importantly, their identity as a member of this community is inextricably linked to your brand. It’s a marketer’s wildest dream come true. The process of building a thriving ecosystem is no small feat. Here are the five essential elements that you must have if you want to create a real, organic online community that simultaneously exists for and is a product of your tribe:

Earth: The foundation

Before you can build an ecosystem, you have to lay the foundation. But where do you begin? In our series on understanding and marketing to tribes, we established that tribes form around a shared passion for a specific idea, lifestyle or movement. Therefore, for your ecosystem to thrive, there must be a common thread that draws people in and binds them to the community and its members so that they identify themselves as part of your tribe. Your goal is not to build the next Facebook. People don’t need just another broad-based social network where they can set up a profile and post their thoughts. That already exists in any number of places where they already do those things. What people are yearning for is to be among and connect with other people who share their passions. When you build a community around that passion, they’ll come there knowing it’s a place where they can satisfy that need to belong, where they’ll be among others who speak the same language and where they’re free to obsess over something with like-minded people who won’t mind if they talk ad nauseum about that one particular thing that really stokes their fire. So how do you find that common thread? Think about your customers. What do they love? What excites them? What challenges do they face day in and day out? What do they worry about? How can you tap into those things? The answer to those questions is the foundation for your ecosystem. By identifying the common passion that unites your tribe, you can begin to build a community where great interactions will thrive. Even if your brand only ever lives at the periphery of those interactions, that’s okay. Remember, too, that among those who populate your ecosystem there will be individuals who are already your customer, might someday be your customer or may never be your customer, and that’s okay, too. The fact that you exist at the root of all of it will yield greater rewards than you could ever imagine.

Air: Sharing

The ability to interact with other members in meaningful ways is as critical to the life of an ecosystem as the air we breathe; in its absence, the community suffocates. An ecosystem is not a blog with comments. While commenters may well respond to one another on occasion, these interactions are limited in scope to the content to which they are attached. There’s nowhere else for these commenters to go to keep the conversation going or to talk about a different subject entirely. An ecosystem is not a message board where people come to get help or resolve a problem. Once that problem is solved, they move on and never come back; they don’t identify themselves with or feel any lasting ties to the community. An ecosystem is a place where people can share the things matter to them in ways that are meaningful to them. It starts with being able to establish a profile – one that’s more than simply a name and a photo. You need to give people the ability to define who they are in the context of that community and its foundation. Then they need outlets to share their own ideas, photos and videos and to interact with others around that shared content. It’s this level of highly personalized sharing that forges deep, persistent bonds among members of a community. NASCAR driver Ryan Newman’s Fan Club site is built around keeping its members engaged and active by giving them many different ways to share and interact. They can post their own videos, build photo albums, join the conversation on community message boards and even chat with other members in real time. Again, keep in mind that all the sharing that takes place in your ecosystem may have very little to do with your products or services. And that’s exactly what you want because a community that will thrive over the long haul is one that exists to serve its members, not your brand and your business. As long as you’re the one providing the arena where these exchanges are taking place, you’ll benefit immeasurably from constant exposure and engagement.

Water: Leadership

Good tribe leadership is the water that helps a fledgling ecosystem grow and keeps an established ecosystem strong and thriving. The task of providing good leadership is actually more challenging than it may at first seem. In the traditional world of marketing, everything was centered around presenting a carefully cultivated message and never allowing the customer to see any cracks in the perfectly polished veneer of a brand’s image. But that approach doesn’t work in the world of the online ecosystem. You must be comfortable walking among the members of your community and interacting with them on a human level. You must be willing to drop the corporate mask and be authentic. Think of your role as the leader of your community as being the host of a party. It’s not your job to dominate every conversation or to restrict what your friends are and are not allowed to talk about. It is your job to provide good fodder for discussion, to fill in the gaps when you sense a lull in the conversation and to help everyone feel at home and included.

Fire: Rewards

The members of your ecosystem that make the wittiest comments, spark the healthiest debates or share the most interesting content are the ones that keep the community vibrant. So how do you motivate them to keep doing what they do best? In today’s fame-obsessed culture, everyone wants their 15 minutes of notoriety, and everyone wants to feel like a celebrity in their own circles. People are driven by the opportunity to be elevated to a position of higher esteem among their peers. Therefore, if you want to stoke the fires of participation in your ecosystem, recognition is the name of the game. Give the members of your community ways to participate that are all about them, and then reward them for that participation. Distinctions such as “photo of the day” or “most viewed video” reward the creator by putting him or her in the spotlight. Call them out from the crowd, and you'll feed their craving for more recognition. The key to establishing an effective reward system is knowing what motivates the members of your community. For example, because racing fans thrive on competition, the Ryan Newman Fan Club community is built around a points system. Members who start discussions or who post photos and videos can earn points – or votes – from other members that put them in the running for a spot on the fan club’s leaderboard. Points are tallied throughout the racing season, with prizes awarded to the top performer each month as well as the top overall points earner for the season.

Aether: The essence

Aristotle defined aether as the quintessence – the immutable substance that makes up the heavens and stars. When it comes to online ecosystems, the aether is the intangible element – the sine qua non – that makes being a member of your community something to be desired. Think about the most popular nightclub in town. Why do people go there? It’s not just to listen to music. It’s not just to drink a martini. It’s not just to hang out with their friends. They could do all of those things in any number of places. There’s something in the atmosphere – an indefinable quality – that propels them to go to that one club rather than any of the dozens of others in the same vicinity. Perhaps it’s that when they go there, they’re surrounded by people just like them. Or perhaps they’re surrounded by people that they aspire to be like. Maybe it’s the bragging rights that come with being “seen” in the place that everyone’s buzzing about. Your ecosystem needs the same thing. There has to be some sense of status or value attached to being able to claim membership in your tribe. This is the one element of your ecosystem that you have the least control over. You simply can’t manufacture the essence, nor can you make a proclamation that this is what makes your community special. In fact, the essence can only emerge when it’s allowed to develop organically. When you see members of your community sharing inside jokes, developing their own language, even making plans to meet up offline – that’s when you’ll know you have the essence. The best thing you can do when you recognize it is to subtly encourage those members or activities that you see happening around it so that it continues to flourish.

It’s your sandbox.

The prospect of building your own community ecosystem is certainly daunting. There’s much at stake and many unknowns that you must contend with. In sharp contrast to the world of traditional marketing, there’s a distinct lack of control. An ecosystem can only thrive when allowed to develop and grow naturally and on its own timeline. As soon as you start to restrict or interfere too much, it will wither on the vine. Entering the realm of ecosystem building requires a leap of faith. However, just as building the trust that your customers have in your brand is paramount to the growth of your business, putting trust in your customers is essential to the growth of your ecosystem. If you can relinquish the need for control and truly let the members of your community take ownership of it, you’ll be amazed at the results that unfold. Interactions will become vibrant and nuanced, natural leaders will emerge and the community will truly take on a life of its own. And in today’s marketplace, there is no more powerful force for business growth than a large and engaged community that’s homed around your brand.

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