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.

Insider Secrets to Killer Website Content: 7 Steps to Building a Better Blog

As important as good website design is, let’s face it, it’s not what brings visitors to your site. They come for the content, and if that content is sufficiently compelling, then they’ll take the action you desire, whether that’s making a purchase, completing a registration form or even just picking up the phone to contact you for more information. In short, the success of your website begins and ends with quality content.

That’s why in this series of articles – Insider Secrets to Killer Website Content – we’re taking a look at types of content that are common to many websites and exploring ways that they can be redesigned and improved. So far, we’ve covered customer testimonials and “About Us” pages. In this third installment of the series, we tackle the ever-popular but often poorly executed business blog.

The promise of blog content has always been the ability to easily add fresh content to your website on a regular basis. In practice, however, that’s not quite as easy as it sounds.

While the tools available to us today allow blogsto be updated very easily, authoring content that is relevant and unique is a much greater challenge – one that proves to be the downfall of many a blog.

The challenges of maintaining and sustaining a blog

Every new blog is launched with the loftiest of goals and expectations. Plans are laid to write articles chock-full of insight on the latest industry trends, and anticipation is high for the proliferation of inbound links to come along with the resulting boost in search engine rankings.

The road to realizing those dreams starts with quality content, but being able to produce that content on a regular basis is where the rubber meets the road – which often proves to be a much greater obstacle than many realize when they initially decide to launch a blog.

At the outset of blogging, enthusiasm is high and ideas flow like honey. But all too often, after a few months or even weeks, the content begins to falter. The frequency between updates grows, and the quality wanes as articles begin to read more like standard press releases or company news updates.

For any blog to succeed, it must have regularly published content that is timely and relevant. If you can also make that content unique, then you have achieved the trifecta of excellent blog content.

So how do you ensure that the enthusiasm and quality that you have at launch can be sustained past the first handful of posts? Here are seven steps to turn your blog into a powerful traffic-boosting, sales-generating machine:

1. Answer questions you are being asked.

Every writer’s biggest challenge is coming up with a topic – and blogging is no different.

Staring at a blank screen and trying to get started on a new article is a daunting task indeed. But one way you can generate some topic ideas is to think about questions that often come up in your day-to-day conversations with your customers.

Whenever I begin brainstorming ideas for a new article, I start by reflecting on these conversations. Typically, I can identify a few topics that I’ve recently been asked about, and I can also recall the answers I gave and the discussion that ensued. More often than not, these provide the perfect foundation for a new article.

By coming up with a list of common client questions, you’ll provide yourself with excellent potential blog topics. Better yet, you’ll also create content that people are actually interested in and actively looking for – because you can bet that if these questions are being asked of you, then there are others out there who are looking for those same answers too.

2. Write about what others are not writing about.

Answering common questions is a great start, but you can really take your blog to the next level if the articles you publish – and the answers you provide – are unique.

Think about your own experiences in searching for answers online. If you search for a topic and find very few relevant articles addressing that topic, then that article – and its source – become gold to you. If it’s a really great article that does indeed answer your questions, you will tell others about it via social media or by posting links on message boards and forums where you are an active participant. A unique article succeeds because it addresses a topic that no one else effectively has.

The value of an article with little competition increases exponentially. So anytime you’re brainstorming new blog content topics, be sure to do a search for articles that may be similar in nature. If you do find similar content, make sure yours offers a different perspective or creative spin. If you do not find similar articles, this is your golden opportunity to publish something truly unique.

3. Keep to a schedule and plan ahead.

A schedule is critical when it comes to sustaining your blog over the long term. The frequency with which you update your blog with new content – whether it’s daily, weekly or monthly – will be different depending the nature of your industry and your audience. However, sticking to that schedule is what’s important, because it is all too easy to miss a deadline and brush it off as no big deal. But once you miss one deadline, it’s that much easier to miss another and another and another – until the gap between articles becomes substantial, and getting back on track becomes a grueling uphill battle.

One way to ensure that you keep to a schedule is to plan ahead, and planning ahead starts with ideas. If you dedicate time for you and your team to brainstorm article topics (whether individually or in a group session), you’ll inevitably find that one great idea leads to another and another.

When you have a handful of great article concepts to work on, it’s often tempting to publish these articles in quick succession. However, it’s important to avoid this temptation. Instead, make the most of your brainstorming momentum and plan out exactly when each of these articles will be published based on a regular, sustainable rhythm.

By having a handful of quality articles in queue, you can more easily keep to your schedule. And, of course, while you are waiting to publish those new articles, you can brainstorm new ideas and write those articles so that you always have fresh content at the ready.

Maintaining a schedule helps ensure that you do not publish new articles either too infrequently or too frequently but instead maintain a steady stream of quality content so that your readers know when to expect new articles and remain engaged with your blog.

4. Keep it short and sweet.

One concern I often hear voiced when I speak with clients about blogging is that they fear they will not be able to maintain a regular rhythm of publishing because of the time it takes to do so.

Yes, writing blog content takes time, but if you’re doing it right, it’s not as much as you might think. Blog articles do not need to be lengthy to be effective. In fact, short articles that are very sharply focused and easy to read are often the most effective and popular articles you can write.

By keeping articles short in length but high in quality, you can publish great content with much less of a demand on resources than you may have initially expected while still realizing the value that fresh blog content brings to your site.

5. Enlist help.

Another way to minimize the time impact of creating new blog content is to spread the workload around. If only one individual in your organization is tasked with authoring articles for your blog, then the entire burden of maintaining your publishing schedule falls on their shoulders, which means you also have a single point of failure if their other job responsibilities start encroaching on their available time for blogging. If you have a team of authors, however, then the impact on any one individual is minimized.

In addition to the benefits of sharing the responsibilities, having multiple voices represented on your blog also brings much needed variety to its content. Different authors bring different ideas, expertise and perspectives to the table, helping to create a more well‐rounded blog. Plus, if your organization offers a variety of services, then having experts who can cover a wide array of subjects will give your blog relevance to a broader audience.

When enlisting authors for your blog, look for those with distinct voices that will bring something new to the site as well as those who are enthusiastic about writing and eager to contribute.

You should also seek out those aforementioned subject matter experts in your organization. Many people are hesitant to recruit these experts to write – often because they are so valuable to an organization that pulling them away from their “real work” is seen as counterproductive. This could not be further from the truth. The reality is that these subject matter experts have a perspective that others do not. Remember, you want unique, relevant content that will resonate with your audience. What better way to achieve that goal than by turning to those who know it best? As an added bonus, when your readers see that you have true experts at work behind the scenes, your business and your brand as a whole will benefit from a boost in reputation.

6. Embrace current events.

Timeliness can be important in blog articles. When a topic is current, it is often relevant and being actively sought out by interested readers. Therefore, creating blog content that addresses those current events and latest development can be a great way to add articles to your site with information that others are talking about and looking for right now.

If you are consistently on the lookout for relevant current events that you can build content around, and you are also answering frequently asked client questions as covered earlier in this article, then you are well on your way to ensuring you never run out of possible ideas for new blog content.

7. Get ready to share.

If publishing timely, relevant and unique blog content is step one in building and maintaining a successful blog for your website, then promoting that blog content is a logical step two.

Great content will get found, but can do a lot to facilitate this process by promoting it. Yes, this means letting your connections on social media know about a new article once it is published, but just posting a link on your company’s Facebook page is not enough. You also need to also look for more targeted situations where you can share this content.

One example would be to include a link an email exchange you are having with a current client or prospect as a reference point when they ask a question that your post helps to answer. Furthermore, you and your team should become active participants on other websites and forums where the members of your tribe live day in and day out and where you can post links to your articles when appropriate to the conversation (don’t overdo it, of course, or you’ll become a community pariah). Also, by featuring related articles within each post in your blog, you can introduce readers to other content that they may not have been looking for at that moment, but which they will find valuable, too.

Whatever avenues of promotion you use – and you should use a number of different methods – the goal is to spread the word to readers who are looking for the content you are creating.

Watch your hard work pay off.

There’s no doubt about it – maintaining an effective blog is hard work. But with strategic planning and a solid team behind you, you can publish quality content on a regular basis – content that will serve as a powerful catalyst for bringing new visitors to your website and new customers through your doors.

Dos and Don'ts for a Successful Groupon Promotion

Do: Be aware that it’s not for everyone, and it may not be right for you.

With a subscriber base that has surpassed 85 million and shows no signs of slowing, the allure of Groupon is hard to resist. The basic premise seems fail-proof: create a discount offer that’s broadcast to thousands of potential new customers, sit back and watch the dollars roll in.

However, every business model is unique, and there are many variables that determine how well your company can respond to a sudden, short-term influx of traffic or a temporary drop in profit margin.

Running a promotion is particularly risky for companies in Groupon’s bread-and-butter categories like salons, spas and restaurants, where the frequency of offers dilutes their perceived value.

If your business falls into one of these categories, you must carefully weigh the chances of being able to convert first-timers into regular customers versus the likelihood that they’ll simply wait for the next Groupon to come along. If the odds don’t stack up in your favor, you may find that the sacrifices you must make to execute the promotion won’t ultimately deliver a long-term pay-off in the strength and size of your customer pool.

Don’t: Expect Groupon to boost your bottom line.

At least not right away. While there’s no upfront cost to run a promotion, Groupon requires you to discount your products or services by at least 50 percent, and they then typically take a cut of 50 percent of the final selling price, leaving you with only 25 percent of your normal revenue. While you’ll undoubtedly see a major bump in traffic, your margins on that traffic will be slim, if they exist at all.

Playing the Groupon game is less about building profit and more about gaining mass exposure.

Do: Crunch the numbers.

When deciding whether or not Groupon a good fit, you must weigh the ROI of your promotion according to the same metrics as you would any other marketing tactic.

Examine every scenario to determine what your promotion will ultimately cost. What if 100 people jump on your deal? What if it’s more like 1,000 or 10,000? Can the potential benefits justify that level of investment? Or would your money be better spent elsewhere, such as a pay-per-click advertising campaign?

Do: Be strategic in your offer.

If you do decide that Groupon is a good fit for your business, make sure to structure your promotion so that it’s a win for you and your new customers.

Be creative and find a way to build an offer that minimizes the losses you must absorb and maximizes your ability to fulfill a short-term spike in demand. Focus on the products or services where your overhead is lowest and your profit margin is highest.

For example, let’s say you’re a personal trainer. If you offer a Groupon discount on your consultation services, you’re limiting the number of hours you have available to clients who are willing to pay your regular rate. However, let’s say you’re a personal trainer who also sells subscriptions to an online video coaching series. You can absorb an almost unlimited amount of cut-rate subscriptions without compromising your primary revenue stream.

Or, let’s say you run a beachside bed and breakfast. Executing your promotion in the off-season is a great way to reel in new visitors. If your doors are open, your operating expenses are fixed. In terms of defraying those costs, it’s better to be filled to capacity at 25 percent of your standard rate than to have only one or two guests at full price.

Don’t: Be afraid to negotiate.

A lesser-known secret of playing the Groupon game is that you can negotiate. When it comes to shaping your promotion, nothing is written in stone.

You can score a more favorable split on the take than 50/50. You can also cap how many discounts are available, which is a good way to safeguard your bottom line and make sure you don’t end up with more business than you can reasonably handle.

Groupon’s entire business model revolves around presenting great deals that people want to buy, so if you’ve got a good one, make them play ball. If they won’t agree to terms that work for you, either try another daily deals site, or pursue a different marketing strategy entirely. No amount of exposure is worth an arrangement that could potentially sink your business.

Do: Pay attention to the fine print.

Terms and restrictions can make or break your deal. Use the fine print to make sure your offer is one that your business can sustain.

Set an expiration date. Cite whether the offer includes tax and gratuity. Specify whether customers need to make an appointment or reservation in advance to use their Groupon. Determine which products or locations the Groupon applies to. Define whether the Groupon can be used in conjunction with other offers or specials. Limit how many offers can be used per customer and per visit.

Just be careful not to make the terms so restrictive that the promotion loses all value to your potential customers, or your Groupon will be a flop.

Do: Put your best foot forward.

When your Groupon lands in the inboxes of subscribers in your area, you’ll inevitably have an influx of potential new customers checking out your website, your Facebook page and your Twitter feed to find out more about you.

Make sure that your website is up to date and that it showcases the products or services being featured in your promotion in such a way that makes the decision to buy an easy one.

Make sure as well that your Facebook and Twitter streams are primed with interesting content and lively dialogue to boost your chances of scoring a like or a follow from these new visitors.

If you don’t have these critical elements in place before your Groupon hits, you won’t be making the most of the opportunity you have to be in front of hundreds or thousands of people who are in the market for what you have to offer.

Do: Understand that these are Groupon’s customers, not yours.

Due to privacy laws, Groupon cannot share the email addresses or personal information of those who have bought into your deal. So while you’ve gotten great exposure to these potential new customers, you have no built-in way to make a repeat appearance in their inbox.

Make sure that when these shoppers visit your website or come into your store, they have the opportunity (and incentive) to join your mailing list. If you don’t already have a list, now is the time to start building one.

Do: Bring your A-game.

The true value of a Groupon promotion isn’t getting a tidal wave of people through your doors. It’s the opportunity to convert those one-time deal-seekers into loyal customers and fans.

In order to do that, you must wow them. They may come in looking for a bargain, but if what they find is exceptional quality, value and customer service that go above and beyond their expectations, they’ll not only be more likely to come back and pay full price but also to spread the word about you as well.

Do: Make sure everyone’s on the same page.

One sure-fire way to guarantee that your Groupon customer will never come back is to make the process of redeeming their offer a hassle.

Hold special meetings or training sessions if necessary to make sure that everyone who’s on the front lines of your business understands the terms of the offer and how to handle any questions or complaints.

This is also a good opportunity to review your customer service standards and reinforce your expectations to ensure that everyone is prepared to do whatever’s necessary to convert, convert, convert.

Don’t: Alienate your loyal customers.

You know the old saying about new friends and old friends – one is silver and the other is gold. The same applies to customers.

In your efforts to bring new customers in the door, be mindful not to alienate those who’ve been happily paying full price all along.

If you’re going to Groupon, it’s an opportune time to simultaneously execute a customer appreciation promotion to reward these customers for their loyalty and show them that their business is always valued.

Don’t: Mistake Groupon for a marketing plan.

Let’s say you run your first Groupon promotion.Groupon is no substitute for a sustainable, long-term business growth plan. You get a huge response, so you stock up and staff up to meet the demand. The wave comes; the wave goes. Suddenly you’ve got a bunch of employees standing around staring at each other and more inventory than you know what to do with.

While running another promotion seems like the obvious solution to this problem, it’s no substitute for a sustainable, long-term, diversified growth and marketing plan.

You must realize that creating one Groupon offer after another will train old and new customers alike to expect never to pay full price and will ultimately devalue your products and services. You’ll end up caught in a cycle of dependency on discount shoppers and razor-thin margins that will make it next to impossible to ever actually grow your business. And isn’t that the point of running a Groupon to begin with?