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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Tweet, Snap, Share, Post, Pin: Five Creative Ways to Get Your Customers to Do Your Marketing For You

Today’s digital age is also the post-advertising era. Armed with access to nearly limitless data and information, customers have grown disengaged from commercial culture as we once knew it and disillusioned with canned corporate marketing messages.

This is especially true of the latest generation of consumers – the Millennials (aka Generation Y). Encompassing roughly 72 million young Americans, the oldest of whom are now reaching their mid-30s, the Millennials represents the most educated, diverse, technologically proficient generation ever in the U.S., with tremendous spending power that is expected to eclipse that of the Baby Boomers within the next three years.

Another hallmark of the Gen Yers is that they have a strong aversion to "push" marketing and prefer brands that are engaging and already embraced by their friends. According to Christine Hassler, author of 20 Something Manifesto, “Friends are the biggest influencers for Gen Y. If their friends have something and endorse it, that's all they need.”

All of this evidence points to an inescapable fact of doing business in today’s culture of the Web: nothing holds greater sway than word of mouth. If you want to grow – and especially if you want to capture the up-and-coming Millennial dollar – you need the help of your customers and fans.

However, these customers and fans aren’t simply sitting around, waiting at the edge of their seat for the opportunity to promote your products and services. It’s up to you to get the ball rolling by structuring campaigns that reach your customers where they live (i.e., social media platforms) and give them opportunities to share that tap into their motivations and fit naturally with their habits and lifestyle.

Here are five creative ways you can leverage social media to connect with your customers and get them to do your marketing for you:

1. Solicit their stories.

Sometimes spurring your evangelists to spring to action is as simple as asking them to. After all, who doesn’t love sharing stories about themselves?

Everyone can agree that medical supplies is hardly a highly glamorous field. However, Medtronic Diabetes, which develops and sells diabetes management products, has achieved a 2-to-1 return on investment for their entire social media program based on the success of their Share Your Story Facebook app.

Since launching the app in June 2013, nearly 300 customers have shared stories and photos using the app, and over 80% of users have opted to allow their photos and stories to be used by Medtronic Diabetes in other ways. To maximize the mileage they get from this great user-generated content, Medtronic is also proactive about contacting those who have shared their story to participate in photo shoots, video testimonials and guest blogging.

When Steve, a Facebook community member, posted a photo from his 2012 wedding using the app, Medtronic followed up with a request to guest post on their blog, “The Loop,” which the company started as a forum to foster discussion about living with diabetes. Steve happily complied, penning the article “Getting Hitched With Diabetes: The Groom’s Perspective,” which they reposted on their Facebook page.

Key to Medtronic’s success is that they are very specific in the framing of their request. When the company first launched its app, the prompt asked users to share “moments in your life of living well with your insulin pump or continuous glucose monitor,” but they found that the majority of participants would write only one or two lines. In March 2014, they retooled the wording to say, “Share with us your personal story about the pivotal moment you switched to the pump and CGM, and how insulin therapy has helped you focus on the wonders of life,” and they discovered that this more specific request elicited much more rich and detailed tales from their customers.

While you might wonder why Medtronic’s customers are so eager to share their stories, Amanda Sheldon, director of digital marketing and communications, explains: “We know our customers and know that they like to support each other. Our hope that social media would bring this all together was definitely met.”

2. Share the spotlight.

As the relentless onslaught of the selfie has shown us, social media is the ultimate “Look at me!” medium. Tap into your customers’ love of all things me-centric by creating a campaign founded in giving them the opportunity to shine a spotlight on themselves – and on your products in the process.

Clothing brand Free People has come up with an ingenious way to integrate customers' Instagram shots with its website. The company has begun attaching individualized hashtag information cards to its jeans. Customers are encouraged to take pictures of themselves in the pants, tag them either with #myfpdenim or more specific tags for different jean styles (such as #fpanklecrop for the 5 Pocket Ankle Crop or #fpsorbettiedye for Sorbet Tie Dye Jeans). These photos not only appear on Instagram but also on the relevant product’s page on the company's website (after being approved by site moderators, of course) in a special section called "Free People's Style Community."

This brilliant campaign succeeds on two levels. First, by designing a platform that turns their customers into models, Free People has created the ultimate indulgence for the selfie-aholic. Second, they overcome an obstacle that has plagued e-tailers since the concept was invented, which is giving shoppers the confidence to make a purchase without being able to see, feel and try on the product in person. But now, through the magic of Instagram and social sharing, Free People empowers potential buyers to see how a pair of jeans looks in real life. Win-win!

3. Give to get.

Sometimes, you need to be willing to give a little bit in return for the great promotional juice your customers are providing to you. Often brands use contests as a way to motivate fans to snap, share or post in exchange for the chance to win a prize.

However, prizes certainly aren’t the only way to incentivize your followers. An even better way is to share your time and expertise. For example, Zappos – a company that has built its reputation on providing exceptional customer service – has created a forward-thinking Instagram campaign that is the perfect marriage of its trademark service and customer engagement.

Capitalizing on the popular #OOTD (“outfit of the day”) hashtag – which has more than 23 million images attached to it – the online retailer has launched a pilot program for a personalized shopping service called NextOOTD. When a customer posts a selfie with the hashtag #nextOOTD, a Zappos stylist will comb through their Instagram history and respond with personalized shopping recommendations catered to their unique style.

This campaign is social media engagement at its very best. First, it’s easy for customers to participate in. By building on the already familiar #ootd hashtag, it’s a natural extension of a well established habit for Instagrammers. Second, it’s personalized: this concept of selfie shopping allows Zappos to interact with people like a human, not a brand, which is exactly what every company should aspire to do on social media. Finally – in perfect keeping with Zappos’ mission of delivering happiness – it’s a great way to surprise and delight their customers, especially the type of selfie-wielding fashionistas who are most apt to use the #ootd hashtag in the first place.

4. Bank on bloggers (and other influencers).

Here’s an interesting fact for you: Research has shown that one-fifth of the consumer population is composed of key influencers who impact the purchasing activities of 74 percent of the population.

Chief among these influencers are the legions of bloggers and vloggers who have masses of dedicated followers hanging on their every word. If you can put these prominent opinion-pushers in your corner, you can turn the power of word-of-mouth marketing up to 11.

Blue Apron is a new start-up subscription service that delivers meal kits – including pre-measured ingredients and recipe cards – in refrigerated boxes on a weekly basis to its members.

According to Ken Fox, one of the company’s investors, Blue Apron’s target market is comprised of “People who like to cook at home but don’t always have time for shopping,” and their hope is that these people “discover the ease of cooking with Blue Apron [then they] start to do it more often, and to get their friends and family members into it, too.”

And who could fit that profile better than mommy bloggers – specifically Katie Bower of the hugely popular blog Bower Power? Katie has nearly 15,000 followers on Facebook and more than 25,000 on Instagram, so needless to say, there is no lack of moms (and other busy women) who identify with her and look to her for great ideas and advice. And as it so happens, Katie also recently gave birth to her third son, so she has no lack of demands on her time.

For the price of a sponsored post, Blue Apron reached all of her followers in the form of a glowing review written with Katie’s trademark candor – along with a series of fun images depicting the process of receiving the box, unpacking its contents with her adorable boys, preparing the meals and enjoying the dinners together as a family.

The end result is a testimonial that is 100 percent authentic – and 100 percent more effective than anything the company could have said about itself in a perfectly polished ad campaign.

5. Create a marriage of mediums.

All of this talk of social media posting, hashtagging and sharing begs the question: how can you take advantage of your fans’ promotional activities to reach a broader audience that includes those who don’t follow you on these networks?

The answer: integrate your social media campaigns into your traditional marketing efforts. Case in point: Ben & Jerry’s wildly successful #CaptureEuphoria contest.

In 2012, Ben & Jerry’s tapped into its Instagram community (which at the time numbered 120,000+ strong) to cast the starts of its latest ad campaign. The company invited fans to post photos tagged #captureeuphoria that they felt depicted intense feelings of joy. From sunsets to wedding photos to cute dogs to beach scenes, these user-submitted snaps were collected into a special gallery on the company’s website.

One interesting thing you’ll notice about the contest: there was no requirement to feature the company’s products in the photos. Rather the idea was to associate the emotion of euphoria with the experience of eating Ben & Jerry’s ice cream – very clever indeed.

At the conclusion of the contest, more than 25 shots were selected and featured in hyper-local media in the winners’ hometowns in ads that popped up in locales ranging from billboards to buses to neighborhood bars.

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When Less is More: An Introduction to Minimalist Website Design

Minimalism is a trend that garners a lot of debate and discussion in the website design community. As a result, chances are good that you’ve heard of minimalist design and seen its principles in practice on sites that you visit day in and day out. But what exactly is minimalist design? And is it the right choice for your site?

Minimalism defined

In website design, minimalism can easily be construed as plain, lackluster or easy to accomplish. However, that is quite far from the truth. To the contrary, minimalism is a philosophy of web design that strives to eliminate all unessential features and elements in order to enhance usability by providing a clean, streamlined browsing experience that is absent of unnecessary distractions and clutter.

Focus

Every successful minimalist design starts with a crystal-clear vision of the purpose of the site and the key messages it needs to convey. Before any design choices are made, it’s critical to outline the goals and content of the site. This requires determining what information is most vital to visitors and arranging it in order of significance. You might actually be amazed to discover how little information is actually required to help users make decisions or accomplish their goals.

Typography

Because minimalist design is reduced to only its most essential visual elements, the site’s content takes center stage. As a result, typography is key to capturing the user’s attention. The choice and usage of typefaces in minimal design is critical to creating a unique look and feel that makes a lasting impression on visitors. Therefore, it’s important to choose a combination of typefaces that both reflect the personality of the brand and provide a clean, pleasurable user experience. Yet again, restraint is key, as using too many different fonts can make the site feel unorganized and chaotic. Beyond the choice of typeface, attention to detail in size, color, spacing and weight is important to ensuring readability and defining the overall aesthetic of the site. The WPShower website offers a good example of the role typography plays in setting the tone for minimalist design, with an easy-to-read yet somber font for the main caption and a quiet font for the menus.

Color

A common myth of minimalism in website design is that it entails a lack of color. While many minimalist websites do feature a color palette that is limited to black and white, this is merely an aesthetic choice, not a requirement. Instead, just as with all other elements of minimalist design, color should be deployed in ways that emphasize focus and restraint. Minimalist sites commonly employ a single continuous background color that sets the mood or tone for the site. A carefully chosen accent color is then employed to draw the user’s attention to key features of the site, such as navigational elements or important points within the content. It’s important to ensure that the accent color is not used to excess, or else it will lose its impact. For instance, take a look at authentic style, the design portfolio of William Smith. The background is brown, with another shade of that very color used as accent, yielding an overall effect that is minimal, clean and neat.

Layout

Layout is a make-or-break element of minimalist design. It requires proper execution and an absolute lack of ambiguity. All elements should work together to keep the primary focus on the site’s content. Minimalist design requires special attention to certain key elements. For example, the company name and logo should be in a prominent location in order to establish the site’s identity and promote the brand. Next, as with any site, ease of navigation is critical. Navigation menus should be convenient to locate and use on any device or platform. If visitors are forced to scavenge for information, the website will not be popular, no matter how beautiful it is. For instance, take a look at the website of The Mavenist – a minimalist design featuring awesome typography and a user-friendly layout. Also, it is often incorrectly assumed that a minimal website design excludes images and graphics. After all, we are concentrating on good typography, few colors and highly structured layouts, so images will only introduce chaos, right? Actually, no. Images are an important component of any website’s content, and in minimalist design, images can be used to powerful effect in the absence of other competing graphical elements. For example, take a look at the Clean Dessign theme. It is loaded with images and yet maintains restraint in terms of layout and design.

White space

White space – also known as “negative space” – simply refers to the area on a web page that is not occupied by any design elements or text. Even though it is called “white space,” it does not actually have to be white. This term merely refers to the space that exists between content. White space is a critical element of any design – not just minimalism. It can be tempting to fill this empty space in order to make the best use of the available real estate on the page. However, in fact, it is this space between content that helps users make sense of the page and understand which elements are most important. In minimalist design, white space is used to help lead and direct the user’s attention. For example, content that stands alone will draw focus immediately. Furthermore, white space can also be used to group similar items together as well as to create separation and differentiate between elements of various levels of importance.

Getting started with minimalist design

While minimalist design is appealing in its simplicity, it’s not the right choice for every site. It works best for those sites that are centered around serving a singular purpose – whether that’s selling an app or presenting a portfolio of work. So how can you determine whether your site would benefit from being redesigned with a minimalist approach? The answer is more simple than you might think. No matter what business you’re in, your website exists to help that business grow. Therefore, every decision you make with regard to your site should be based on whether it will help to advance your business growth objectives. A good place to start is by evaluating your current website. Make a list of its various features and components. Now arrange that list in order of usage, with the most commonly used ones on top. From there, go down the list and eliminate any that are not often used or are not essential to supporting the business objectives of your site. If what remains on the list reflects a few relatively simple ideas and functions, your site could be a good candidate for a minimalist redesign. Further exploration with an experienced website design firm will help you identify the ways that your site could be simplified and streamlined. As always, usability trumps all, so any changes must be driven by the goal of providing the best possible experience for visitors that motivates them to take action. Implementing minimalism just because it is a popular trend could ultimately undermine your site’s ability to help you capture and convert new customers. But if your aim is to present a focused message in a powerful way, minimalist design will provide a stage where those ideas can shine.

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