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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Spring Cleaning for Your Website: Six Simple Steps to Clean Out the Cobwebs and Boost Performance

As winter finally releases its icy grip and spring sweeps in with its sunny days and warm breezes, we all feel the urge to refresh our homes, from scrubbing the floors and windows to touching up paint and washing down siding.

Just as the cold months of winter can take a toll on your house, they can also have an effect on your website. From the busyness of the holiday rush to year-end tax planning and new-year forecasting, by the time spring arrives, your site may well be showing the signs of neglect as a result of your preoccupation with other areas of your business.

But as they say, there’s no time like the present, so why not take up your virtual broom and clear out the cobwebs? Here are six quick fixes you can implement today to give your site a boost in performance that will benefit your business for months to come:

1. Publish a new press release or blog article.

If the date on the last new piece of content published to your site was six months ago or more, that’s a glaring red flag to visitors that your site has gone stale and there’s no fresh information for them to find there. But in just a few hours’ time, you can eliminate that red flag by updating your company news section and publishing some interesting new content to your blog.

2. Update the copyright statement.

While you may not have given a second thought to the copyright statement on your site since it launched, don’t underestimate the impact this seemingly small detail can have on visitors’ perception of your site.

If your copyright statement is a year or two out of date, this is a glaring sign that indicates to a new visitor (whether accurate or not), that this site hasn’t been touched in ages. And, following that logic, they’ll question why they should bother to delve further into your site if you can’t even be bothered keep it current.

Bringing your copyright statement up to date won’t take more than a few minutes, but it will make a big difference in convincing visitors that the site is current.

3. Change the home page image.

In the world of website design, large, visually rich images are en vogue these days. This trend, however, is a bit of a double-edged sword. While these large images make a strong first impression, for repeat visitors, they can cause design fatigue and lose their impact altogether.

Don’t worry, though. You don’t need a complete redesign to breathe new life into your site. Simply replacing the primary image on the home page can make your site feel rejuvenated and prompt visitors to view its content with fresh eyes.

4. Visit the site on a mobile device.

How well does your site work on a mobile device? Better yet, when was the last time you actually tried to use your site on a phone or on a tablet?

Many website owners do not visit their own sites on mobile devices with any regularity – but your customers certainly do. In fact, industry experts predict that over 50 percent of all web traffic will come from mobile devices by 2015 (yes, folks, that’s next year!). Is your site ready to handle this influx of mobile traffic and provide a consistently good experience across a wide range of devices and screen sizes?

The only way to be sure is to visit your site on a few different mobile devices to get a feel for what your customers see. If it’s hard to navigate from one page to the next, if the text is difficult to read or if certain content elements (such as videos) don’t work at all, now is the time to start making plans for how you will adapt and evolve your site in order to accommodate this rapidly growing percentage of mobile visitors.

5. Install Google Analytics.

Do you know how many visitors are coming to your site each month? Do you know how long they stay on the site and how many pages they view before they leave? Do you know which pages are being visited most often?

This information and much more can be found simply by adding analytics software to your site. While there are a number of different options available, Google Analytics is an industry standard tool that is both free to install and intuitive to use. You can even set up automated reports so that you receive a consistent stream of data on your site’s performance and the traffic it is generating for your business.

Setting up a Google Analytics account and installing it on your site is a quick and easy process, but it does require adding some code to your site, so it’s best to seek the assistance of your web developer in the initial set-up. Once it’s up and running, however, you’ll have a wealth of useful information at your fingertips at the cost of $0.

6. Run a performance test.

How quickly does your site load for your visitors? Website performance is one of the most often overlooked aspects of a site’s success when, in fact, a site that loads quickly not only provides a better user experience for your customers, it can also help boost your site’s search engine rankings.

Pingdom offers a free website speed test that will give you invaluable information on how quickly your site loads, how large it is, how its performance stacks up against other sites and which elements of your page are the largest (and thereby have the greatest impact on load time). Based on the results of this test, you may be able to identify certain items, such as large images or videos, that could be compressed or eliminated entirely to give your site’s performance a much-needed shot in the arm.

Each of these six steps will take just a few minutes or, at most, a few hours of time to implement, but if you seize the day and do them now, you’ll reap the benefits for months to come of a site that’s fast, up-to-date and easily accessible to users regardless of device or screen size.

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Go Mobile or Go Home

Once upon a time, not so very long ago, being available to your customers online 24/7 was enough. But then along came the smartphone – and its even more agile cousin the tablet – and the expansive mobile data networks needed to support them. Suddenly the Internet came unfettered from desktops anchored to offices and homes and became a ubiquitous presence in our lives. Today 24/7 just doesn’t cut it. You must be available to your customers not only anytime but anywhere. At the corner coffee shop. In line at the supermarket. At the airport. In the very aisles of your competitor’s store. You may not know for certain when or where your customers might be looking for you, but you can be absolutely sure that you must be there if you want to stay competitive in today’s market. Consider this statistic: smartphones and tablets currently drive nearly seven percent of digital traffic in the U.S. If that number doesn’t wow you, try this on for size: experts predict that by 2013 – that’s next year – more people will access the Internet via phone than computer. It all boils down to this: the proliferation of smartphones and tablets in the past few years has changed the game. If you’re in it to win it, you have to go mobile or go home. But where do you start?

Look before you leap.

Before you take the plunge into the world of mobile, it’s a good idea first to figure out where you currently stand so you know where you need to go and how best to get there. Peruse your website on as many different devices as you can get your hands on. Put yourself in the shoes of your customers, and evaluate the quality of your experience as you navigate through your site. How easy or difficult is it to select the specific link you want? If you have a lot of images on your site, how long does it take to render on a mobile device? Can you quickly and easily complete critical actions like locating contact information, filling out an inquiry form or even making a purchase? If you identify any obstacles, or if the overall experience is frustrating in any way, you need to take action to make sure you give your business the best chances of capturing and converting mobile browsers. There are a number of ways you can bring your site into the mobile era. To decide which approach is the right fit for your business, you must weigh your options based on your growth objectives and your customer’s browsing habits.

Option 1: Build a dedicated mobile site.

A good mobile website is not simply a shrunken version of your primary site. It’s designed specifically to deliver an experience that’s optimized for the needs and preferences of the mobile user. Keep in mind that these users aren’t typically casual browsers; they’re usually after a specific bit of information or seeking to accomplish a specific task. As a result, mobile websites don’t usually offer all the bells and whistles of their desktop equivalents. Rather, the content and functionality are pared down significantly to offer only those features that are most useful to those on the go. For example, while mobile users frequently comparison shop on their phones, they might not be as likely to actually go through the entire purchase process on their handheld device. As a result, you may not need to offer a full-fledged shopping cart on your mobile site. Instead, you might offer the capability for customers to log in to their account and save desired products to a wish list so they can quickly and easily complete their purchase later when they return to their desk. Great mobile websites have certain elements in common. They focus on critical needs, such as providing access to key services and products and contact information. They limit the use of images to minimize page load time. They offer easy, intuitive, finger-friendly navigation. If forms are included, they are streamlined and ask only for the most essential information. They don’t employ Flash, since Flash-based content is inaccessible to all iOS users.

Option 2: Employ responsive design.

Responsive design is the concept of building a website so that the layout of the site adapts and changes according to the resolution of the user’s browser, which means that it looks just as good and performs just as well on a 27-inch desktop display as a 3.5-inch iPhone and all screen sizes in between. The design is fluid and adapts to the the browser and the platform on the fly. However, the change is more than just a straightforward scaling effect; rather, certain key elements within the design – such as navigational menus, links and search fields – shift and transform according to the resolution of the browser. Employing responsive design allows you to deliver a robust experience to all users without the need to build and maintain a separate dedicated mobile version of your website.

Option 3: Get app-y.

A native app can be a fantastic mobile marketing tool, if done right. However, it’s not the right solution for everyone. Before you go down the app-building rabbit hole, there are a lot of questions to answer and obstacles to overcome. How big is your customer base? Apps require a certain scale to make sense. If you’re a mom-and-pop bakery, for example, you could theoretically develop an app that would let your customers design their own cupcakes and place their order right from their phone. While it would surely be a fun gimmick, it doesn’t fulfill a broad-based need, and the app’s ability to generate additional revenue would probably never offset the cost to create and maintain it. That brings us to another point: you must carefully consider your ROI. If you sink many thousands of dollars into development and get it approved, will people really use it? If you can’t develop an app that offers something people want and will use frequently – whether that’s in the form of utility, convenience, content or all of the above – chances are good that your investment will end up buried in the app marketplace collecting dust. Remember, too, that when you’re dealing with apps, you either have to develop a version for each operating system (Android, iOS, etc.), which can be a costly proposition, or choose just one and ignore the needs of a huge percentage of your potential customer base, which is never a smart business decision.

Be a contender.

When it comes to mobile, convenience and conversion are the name of the game. From a business growth perspective, it’s critical to ensure that your products or services are easily accessible to mobile users so you can boost your chances of capturing and converting an increasingly untethered customer base.

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