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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Right from the Start: The Secrets to a Successful Website Redesign

Your website should be your number one salesman 24 hours a day, seven days a week. But if your site has lost its luster and isn’t performing as it should, a redesign might be just the right prescription to boost its ability to capture and convert new leads.

Redesign your website is an exciting prospect filled with so many possibilities. It is, quite literally, the dawn of a new day for your company’s web presence, but how and where do you start?

Here’s a website redesign road map that will put you on the track to success right from the start.

Start with your “wish list.”

Naturally, when you’re embarking on a website redesign project, your first inclination is to make an exhaustive list of all the features and functionality you want to incorporate in the new site.

Having a wish list is helpful, but clinging insistently to executing every single one of those items can be a recipe for a budget-busting project.

Go ahead and create your wish list, but once you’re done, the next step in the process is to put on your editor’s hat. Strike through every single feature that is not essential to success. Don’t be afraid to be aggressive in your editing. Just because you can do something doesn’t mean you should.

Keep only the mission-critical features that will create a better, more value-packed user experience. Shed the “nice-to-have” features that will appeal to only a very small sub‐segment of your audience or that represent a personal “pet project.” These will only clutter your site and make it harder for the majority of your customers to find what they need quickly and easily.

If you can maintain a critical, objective eye through this editing process, your wish list will be substantially reduced, and you will have a much more solid foundation for a successful project.

Fight the “now-or-never” mentality.

One of the obstacles you’ll face when trying to pare down your wish list is the thinking that if you don’t do something now, you won’t get the chance to do it again in the near future. After all, how often do you redesign your website?

Instead, take a phase-based approach to the project. With your long-term goals and objectives in mind, decide what you must have now and what can wait until your company and your customers’ needs have reached the next plateau.

By mapping out anticipated future iterations and additions at the outset, you can make sure that your new site is built with the underpinnings it needs to support later growth and expansion.

Also, by breaking your redesign project into phases, you can launch the first version more quickly and without blowing your entire budget. This will give you time to gather feedback on the site and shape your future development plans accordingly.

The responses you receive from your customers after your new site launches may reinforce your decision to shed certain unnecessary features, or you may discover that they’re asking for another feature you had not previously considered. By breaking your project into smaller phases, you can take action on this valuable feedback quickly, instead of waiting until the next big redesign project. In this way, you can show your customers that you’re listening to them and that you care deeply about what they have to say – a great way to continue to build customer loyalty.

So now that you have your wish list and your phase-based approach nailed down, what’s next? It’s time for the big “d” – design.

Never cut corners on design.

Many redesign projects center around the need for a new look and feel for the website. Maybe your site’s current design isn’t a good reflection of your brand, or perhaps your company has simply outgrown a site that was launched early on in its history. Or you may just feel that your site is tired and outdated and in desperate need of modernization.

Regardless of the reasons driving your redesign, creating a Class-A look and feel with a user experience to match is a critical, yet often undervalued, piece of your website redevelopment project.

Adding new features or functionality will be pointless if the look of the site or the experience it creates is not up to par. Success starts with great design, and quality design should never take a backseat to fancy bells and whistles.

Consider this scenario: Let’s say you have a website with an outdated look that’s lacking the helpful features your customers want. If you were to update it with a strong modernized design but include none of those new features, you would still realize some measure of success. You’d have an attractive new design and a quality user experience, and that alone is an improvement that you can then build upon in later phases. If, however, you go the opposite route by trying to shoehorn new features into a bad existing design, your site will still suffer from that outdated look and poor user experience, and your investment will be for naught.

Great features supported by bad design have a very steep hill to climb. By investing in good design early on, you’ll ensure that all future investment in the website – when you do add those extra features – will have the best chance for success instead of being forced to fight a losing battle against a poorly designed user interface.

Design with the future in mind.

Deploying a website that is streamlined, efficient and customer-focused is a great start. But the feedback you receive after launch and the desire to continually improve the site will ultimately drive what comes next – those subsequent phases that you have already planned for. To this end, you will need to make sure that the new design and platform will support future growth.

As you edit aggressively early on in this process, you should also continually ask yourself if the plans that you’re making will scale appropriately. How will the site grow with your company over the next 6 months? How about the next 12 or 24 months? How will this mesh with the future phases you have planned as well as the unexpected feedback you may get along the way?

Whether you are hiring a web development firm for your redesign project or are working with an in‐house team, ask them about the technologies that are being used on the new site, from HTML5 to CSS3 to responsive design to the content management system (CMS), and think about how those technologies will work for you today and tomorrow. When it comes to the foundation behind the scenes, never make a choice to save money in the short term that isn’t the best choice for the long term, or else you’ll ultimately end up shelling out a lot more money over time.

A successful website redesign project can start small and focused on critical elements, but to achieve long-term success, that streamlined approach must allow for future scalability so your website will grow with your company, evolve along with emerging technologies and continue to fuel your success.

Take the plunge.

There are many different ways to get from point A to point B when building a website, but regardless of the process you and your team follow, the fundamental principal of starting small and focused on critical elements for success and adding improvements over time is one that will never steer you wrong. Instead of trying to do everything at once, taking this approach will allow you to launch a new website that is a visual and functional improvement without getting bogged down by “nice-to-have” features that will ultimately add very little value but potentially cause very big headaches.

A great design bolstered by key usability features and an eye towards future growth and scalability are the keys to creating a website that will serve as a catalyst for the growth of your business today, tomorrow and beyond.

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Walk the Line: Balancing the Resources and Rewards of Social Media

For those charged with growing a business in today’s marketplace, social media can present a bit of a quagmire. With all of the hype around social media and the proliferation of social networks, it’s easy to get sucked in to the vortex, spending countless hours obsessing over follower counts, scouring the Web for interesting content to share and seeking out opportunities to cultivate relationships with key influencers. However, no business – no matter how large or small – has unlimited resources to dedicate to social media. You must find a healthy balance between the time and energy you invest and the rewards you stand to gain from your participation. As with any marketing endeavor, success starts with a plan. When determining how to direct your social media efforts, you take into account three key elements:

• Your target market
• Social media sites and the capabilities of each
• Your short- and long-term business growth goals

By carefully weighing each of these factors, you can create a robust social media plan that is specifically tailored to your business and your target audience.

Know your customers.

At the heart of the question of how much time to spend on social media marketing lies a fundamental understanding of your customer. Without an intimate understanding of who you're marketing to, you cannot determine the best methods of reaching them. This will also help you determine in which social media sites to invest the most time and energy. More than likely, many of your customers are spending time on at least one social media platform. Statistics favor of this theory: 30 percent of people across the globe are online, and these users spend 22 percent of the time they’re online on social media. But be careful not to make assumptions based solely on the age of your customers. After all, it's users over the age of 55 who are currently driving growth in social networking via the mobile Web. One of the best ways to learn exactly how and where to engage with your customers is to do some good old-fashioned research. Ask them to fill out a survey and provide them with a reward that’s desirable enough to motivate them to respond.

Where are your customers connecting?

This is another important piece of the puzzle that will help you fine-tune your social media investment. If your customers spend a lot of time on Twitter and LinkedIn but not as much on Facebook, then you can divide your time and efforts proportionately. The trick is knowing how to find out where your customers spend their time. Fortunately, each social media site provides some basic research tools that will help you make this determination:

• Twitter: Use the "Advanced Search" tool to search by keywords and by zip codes to find potential customers, and see how much activity you can identify from these users.
• Facebook: Facebook’s research tools are somewhat limited, but you can check your competitors’ Pages to see what types of posts are the most popular based on the number of “likes” and comments they receive.
• LinkedIn: Use the "People Search" feature to identify key individuals as well as relevant groups that may have a lot of traction with your market.
• Google+: Use Google Analytics to determine the amount of traffic or leads you are getting from your posts.
• Klout: Use this service to see how your followers are responding to your social media activity. Klout can track most major social sites, including YouTube, Flickr and Instagram.

Absolute minimum effort

At an absolute minimum, you should establish a page on each of the big four social media sites: Facebook, Twitter, LinkedIn and Google+. This accomplishes a number of things. First, by listing your address and basic information on social media sites, you’ll help search engines like Google find your website and list your company’s information properly. Also, keep in mind that customers use all sorts of tools to find you, not just Google. If they happen to search for you on their favorite social site, you want to make sure they’ll find you there. The basic information you should have on your each of your profiles includes:

• Company name
• Company logo
• Website URL
• Customer service phone number
• Brief description of your company

This puts you on the social media map, as it were. You can certainly begin engaging potential and current customers after this stage, but even if you do nothing else, this will at least make you accessible. Then, based on the level of engagement of your target market on each site, you can determine how much more you want to do with each account.

Developing campaigns

Finally, once you've determined that you should do some level of effort of social media marketing, you know which sites are best for your market, and you've developed some basic profiles on each site, it's time to formulate a campaign. Just as with any marketing campaign, you must start by identifying specific, measurable goals you want to accomplish. By doing so, you can then determine how many resources can and should be invested in the process to achieve your desired outcome. For example, you may want to reach a goal of 1,000 “likes” on Facebook in the next three months. This is doable for a company on just about any budget, and you'll know pretty quickly if you need to put more effort into getting these “likes.” If you only have 50 after the first week, then you need to step it up. Some companies frame their desired return from their social media activity in terms of dollars and cents. This is not a bad strategy for the long term, but if you’re just starting out, it can actually be deceiving. Why? Because the work of establishing your brand on any social media network is a time-intensive process. It will take a concerted long-term effort to grow your following to the point where you can achieve significant levels of engagement and have a reasonable understanding of the relationship between your participation and the company’s sales performance. For that reason, in the beginning, it’s often more productive to focus on activity-based goals – such as achieving a specified number of followers on Twitter – rather than on more traditional ROI metrics. So take a step back, determine what sites your customers use to connect, focus your efforts on these sites and set some reasonable, time-based goals for yourself. Then, as you begin to gain traction on a particular social media site and establish a foundational understanding of how well it works for engaging customers and driving profitable traffic, then establish some ROI goals for your top engagement-level accounts.

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