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.

Worth a Million Words: How to Boost Your Blog with Great Video Content

So your company blog is perking right along. You’ve nailed the voice, tapped into a steady stream of ideas and inspiration and settled into a good rhythm of posting and extending your content through your various social media networks.

From here out, maintaining your momentum is as easy as lather, rinse, repeat, right? Au contraire. Now that you’ve mastered the basics, it’s time to shake things up and take on a new challenge: video content.

Why video? In today’s digital age, your followers’ brains are programmed to crave constant excitement and stimulation. Video content can engage them in different ways and offer a much more interactive experience that your standard text-based post.

Not convinced? Check out Wine Library TV, the video blog that helped Fame Foundry friend Gary Vaynerchuk skyrocket to success. On this vlog, Gary reviews wines:

It’s a straightforward concept, and he could just as easily write up his reviews as deliver them via video. But you can get stuffy, formal, written wine reviews just about anywhere. That wouldn’t be special. What makes Wine Library TV a destination point for his many thousands of loyal fans is seeing Gary V on camera in all his larger-than-life, in-your-face, uncorked, ad-lib glory.

Because video by its very nature is a more engaging medium, video-based content is also much more likely to be shared by your readers via social media. Furthermore, multimedia content gets huge points with Google. In fact, keyword searches on Google often include video posts in at least one of the top five results, making your keyword-enriched video much more visible to Web surfers.

If you’ve never made a video before, the process can seem intimidating in its unfamiliarity. However, if you can master just three key elements – content, production and optimization – in no time, you’ll be publishing great video content that will take your blog to the next level.

Conquering video content

Content is king, so there’s no reason to tackle the technical aspects of producing a video for your blog until you’ve ironed out your video content strategy.

Don’t just produce a video for video’s sake. Your videos should be a natural evolution of your blog’s content that are highly relevant to your target audience.

As with any type of content that you’d publish to your blog, the number one rule is to provide value. Whether it comes in the form of information, entertainment or both, value is the one and only reason why someone will invest their time in watching your video and pass it along to others as well.

That being said, the medium opens the door to all types of fun, engaging, creative content that simply wouldn’t pack the same punch in written format. While the possibilities are nearly limitless, here are a just few basic ideas to get you started:

Reviews

As you can see from the Gary Vaynerchuk example, video is a great medium for delivering product reviews because your words seem more authentic when your audience can watch you manipulate the item and can witness your natural reactions.

Let’s say you own an athletic goods store. The next time Nike releases the latest version of one of its running shoes, give us a video review that demonstrates what’s new about that model and how it performs in action.

Tutorials

What’s a more effective way to teach your customers how to use your products: by explaining it through words in painstaking detail or by capturing your demonstration on camera?

On their blog, Brooklyn Kitchen publishes instructional videos that run the gamut from shucking oysters to cleaning a blade grinder to sabering a bottle of champagne.

These are the types of unique how-tos you can only get from a passionate group of foodies, and their readers place a high value on this level expertise.

Ask the expert

Speaking of expertise, get your customers in on the act by having them submit questions (whether by video, social media or good old-fashioned email) that you can answer on-camera as a voice of authority on the subject.

Series

When it comes to any kind of blog content, series are great because they automatically create anticipation for the next entry and give your followers incentive to come back time after time.

Let’s say you run a yoga studio. You could produce a series of video posts, each of which takes a specific pose and breaks it down in detail, demonstrating the proper form and the muscle groups that should be engaged when executed correctly.

Crowdsourced content

Are you camera shy? Then why not leave the work of creating your video posts up to your customers? YouTube is nothing if not a testament to how much we love to see ourselves on camera.

Challenge your customers to send in a video showing the creative ways they use your products. Or ask them to submit their own video reviews, which carry the added benefit of being great word-of-mouth marketing for your company.

Polishing the production

While it’s important for your videos to look professional, you don’t need the resources of a big-budget Hollywood blockbuster to produce great content for your blog. With a little practice, you can master the fundamentals of shooting, editing and publishing high-quality video content that will engage your followers.

Recording

There’s no need to break the bank, but do shoot in HD if you can. These days, the price difference between HD and non-HD cameras is minimal, and the improvement in quality is substantial.

The most important factor in recording, however, is stability. Use a tripod – whether real or improvised – to avoid the dreaded, motion-sickness-inducing Blair-Witch-Project shaky camera effect.

To avoid jarring transitions, don’t try to pan the camera to follow the action. Instead, film in one spot, move the camera, then film in that spot, and weave these scenes together later during the editing process.

If your video involves demonstrating something on your computer, use screen capture software such as HyperCam or CamStudio to yield the best quality end result.

Lighting and blocking

Natural lighting is always best, but even if you need to use artificial light, make sure that you’re not under- or over-lit.

If you wear glasses, remove them during the shoot, as reflection on the lenses will be distracting.

Before you dive in to filming, do a couple of quick test shots to make sure you’ve got it right before you waste a great take only to discover that your face is obscured in shadow or the top of your head is cut off.

Sound

The quality of sound in your video can make or break the viewer experience. If your voice is muffled or there’s too much background noise, your viewer will quickly get frustrated and move on.

A microphone is the easiest way to make sure that you can be heard clearly and distinctly. You don't have to use the latest greatest, but get something that will allow you to keep the mic close to you. Some people use a lapel mic, while others prefer shotgun mics and others use inexpensive mics that can be purchased at just about any department store. It's really up to you and your budget, but any mic is better than none at all.

Setting

Find somewhere to record your video that’s quiet and offers minimal background noise. And don’t forget to silence all of your various devices. A ringing phone or an email alert will ruin a great shot.

If possible, film your video against a solid backdrop to minimize visual distractions. You don’t want viewers to miss out on great information because they’re checking out all the knick-knacks on your desk and your walls.

Intro

Don’t risk tripping your viewers’ itchy browser-closing finger with a long, rambling introduction. Just tell us who you are and what your website is, then dive right into the substance of your video.

Editing

Your computer probably came with some basic editing software, so use that until your level of production savvy demands more sophisticated tools.

Keep in mind that it’s okay to leave good stuff on the cutting room floor. Inevitably, you’ll record more video than you use. You focus should be on capturing the essence of your story in about two to four minutes – the time-tested sweet spot for web video.

Publishing

To save bandwidth on your website, it’s best to upload your video to a sharing site like YouTube or Vimeo and then simply embed the video in your blog post from there.

This approach also has the added benefit of making your videos available to anyone who might be specifically searching one of these channels for content related to that subject matter.

For more great production tips, here a video from a blog owner who shares a few of the lessons he’s learned along the way:

Optimizing your videos

Just as with textual content, videos can be optimized for search engines through the use of keywords.

Choose a either a single keyword or keyword phrase to focus on, and incorporate this keyword in the title of your video, the URL, the tags and the text of the post where your video will live.

Google gives even more weight to text/video combos, so be sure to include your target keyword in text both before and after the video. For instance, start your post with a brief paragraph introducing your video, then embed the video and include a full transcript below, which coincidentally is also tremendously helpful for those who may have found your post but cannot view your video due to issues such as office firewalls.

Make sure as well to create a dedicated YouTube account for your blog that is linked to your website, and when you upload your video, use the same keywords in the title, description and tags that you used on your blog post.

Once you’ve published your video post, link to it and share it with your social media followers just as you would with your written posts.

By boldly venturing into the world of video content, you can help your blog rise above the competition and create a deeper level of engagement with your fans and followers. Over time, you’ll see the results of greater exposure and know that your learning curve and hard work have paid off.

Behavior-Triggered Emails: The Secret to Boosting Your Open Rates by 152%

When it comes to email marketing, personalization is the secret to success. But how can you effectively personalize a tool that is by its very nature designed for mass communication?

The answer? Behavior-triggered emails.

Behavior-triggered email is a versatile personalization technique that allows your business to engage with customers at timely touch points. For example, when RunKeeper, a pedometer app, sends a message to one of their registered users with a prompt that reads, “You went running last Saturday at this time. Why not go for a run now?” — that’s a behavior-triggered email. Although highly personal to the recipient, messages like these are easy to automate by taking advantage of data points that are relatively easy to mine and collect thanks to modern technology.

While there is an almost limitless range of ways to execute behavior-triggered emails, the keys to crafting a successful campaign are specificity and creativity. To help you better understand what this is all about and provide inspiration that you can implement in your own marketing, let’s take a look at just a few of the brands that are using this tactic effectively to connect with their customers:

Harris Teeter: Welcome

The strategy: Sending a welcome email is standard protocol almost any time someone signs up for an account on your website or app. However, this message from grocery store chain Harris Teeter goes a couple of extra steps beyond extending the typical thank-you for registering.

First, it offers a discount on the service fee, providing an extra kick-in-the-pants incentive for new account holders to seize the day and place their first order.

Second, it takes advantage of this inbox inroads to remind customers of the benefits of their personal online shopping service and offer a few helpful hints for getting started, thereby reinforcing the sales messages that prompted the user to sign up for an account in the first place.

Soap: Come back

The strategy: In most relationships between customers and brands, there comes a time when the customer begins to drift away, whether because another competitor has caught their eye or because any of life’s myriad responsibilities and distractions have bumped their need for your products or services down in their list of priorities.

If it’s been a while since a customer last visited your site or made a purchase, it’s time to reach out and give them a gentle reminder that you’re still here for them, which is exactly the objective behind this message from Soap.com. Their approach is particularly effective because it is not just a one-time offer that might entice a customer back only to lose them again after making one purchase in order to reap the benefit of the discount. Rather, the offer code is good for every purchase made for two months, a smart sales strategy aimed at coaxing the customer back into becoming a habitual Soap shopper.

Williams-Sonoma: Abandoned cart

The strategy: Another staple of e-commerce email marketing is the abandoned cart reminder. While this strategy is not earthshakingly innovative, it is nevertheless effective.

Williams-Sonoma takes this approach to the next level by including a unique discount code that provides a strong incentive for the customer to return to the site – or the store – to complete their purchase. The code is valid for less than 24 hours, creating a sense of urgency to take advantage of the deal.

One caveat to this approach: You shouldn’t always include a discount offer in your abandoned cart reminder email, or you’ll run the risk of training your customers to put their desired items into the cart and then wait patiently for your message to arrive before checking out with their discount code. Rather, mix up your pitches and include a discount code in some messages but not all. Below is an example of a follow-up email from Williams-Sonoma that does not rely on a special offer to create an urgency to act but rather a mention of limited quantities and a reminder that the previously selected items will soon be cleared from the cart.

Old Navy: Product review

The strategy: If you’ve ever purchased something online, you’ve undoubtedly received one of these emails. Again, the reason they’re so popular is that they’re so effective.

Reaching out to someone who has already made a purchase from you to ask them to share their opinion about the product or services they received is a winning approach all the way around. The simple act of making the request conveys to your customer that you’re a brand that cares about your customers and their satisfaction. Moreover, when they click through to provide their review, you’re getting the benefit of a first-hand testimonial that will help you sell that product to future customers. You’ve also successfully brought an existing customer back to your site, where hopefully something new will catch their eye, leading to a purchase that will begin the cycle all over again.

Grovemade: Survey

The strategy: The survey request is another sure-fire winner. Similar to the product review prompt, the survey request conveys to the recipient that their needs and opinions are valued.

In this example from Grovemade, customers who have previously purchased a related product are sent a link to a survey to provide input to the company on the design of accessories for the new Apple Watch. This accomplishes two smart marketing objectives. First, it gives the company valuable insights to shape their new product line so that it delivers exactly what their customers want. Second, it creates anticipation among their customer base for an upcoming line of products even while they are still in the R&D phase.

Nike: Celebrate a milestone

The strategy: If you have a website or app that tracks customer activity, you likely have data that will allow you to recognize your customer for reaching a milestone, whether it’s a birthday, the anniversary of their becoming your customer or even a personal accomplishment based on activity logged via the site or app.

This example from Nike is a great case-study in how to make this particular approach work for you. In the email, Nike puts the recipient front and center by keeping acknowledgment of their achievement the primary focus. As a secondary message, Nike includes a “reward” for reaching this milestone in the form of a discount on Nike running shoes. While this is obviously a bit self-serving on Nike’s part, it’s also a great way to foster customer loyalty by providing an incentive to buy at a time when the recipient is most likely to be in need of their product.

The proof is in the results

Market research shows that behavior-triggered emails are a valuable but underused tactic. EmailMonks reports that open rates for triggered emails are 152% higher than those for traditional email marketing messages. Even so, over 75% of marketers are not yet using behavior-triggered emails or auto-responders.

A word of caution

Before you go all-in on behavior-triggered emails, take a moment to consider how your correspondence will come across to the recipient.

Online privacy is a hot-button issue these days. Just because you can capture and use data about your customers doesn’t necessarily mean that you should. The last thing you want to do is alienate a prospect or customer because you are blatantly tracking their activities without their consent. The best approach is to apply the principles of trustcasting and allow your customers to opt in to receiving your messages and to tell you what types of communication they’d like to get. The simple courtesy of obtaining permission can make all the difference between being perceived as a helpful partner or an obtrusive snoop.

Also, as with any email marketing strategy, make sure you don’t wear out your welcome in your customers’ inboxes. Use good sense and restraint in the timing and frequency of your emails. For example, if I browse your e-commerce store, don’t make a purchase, get an email, browse again but still don’t commit, are you going to send me another reminder that I still have items in my cart? These are the kinds of rules and parameters  that you’ll need to establish judiciously for your campaign in order to walk the fine line between smart marketer and pushy salesperson.

Getting started

If you’re not so sure about diving in without your water wings, there are tools that specialize in sending triggered emails, like Vero for e-commerce, Intercom for B2B and SparkPage for B2C campaigns. If email marketing is one of the primary vehicles you rely on to win and retain customers, then it may be worthwhile for you to partner with an experienced software development company to design a customized system that integrates with your website and your CRM and SFA systems to effectively capture and leverage the customer data you need to create the most powerful conversion engine possible.

Setting up an automated behavior-triggered email program does require an investment of time and tactical thinking upfront, but once it’s implemented, your company will reap the benefits of having a razor-sharp communication strategy that resonates with your customers by providing timely information that caters to their interests, preferences and habits.