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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Buyer Beware: Your CARFAX Guide to Choosing a Web Domain Name

After days of brainstorming and hours of searching, you’ve finally found the perfect domain for your business – and it’s even a “dot com.” Win! Before you hit the checkout button, be forewarned: the domain you’re about to purchase may a cesspool of spam and other nasties. And don’t count on your registrar to tell you that in advance. Unlike the purchase of a vehicle, used domains don’t come with a Carfax to tell you its mileage, provide insight into its value and essentially advise how well the previous owner treated his or her property. In fact, you won’t even necessarily be notified that the domain has a previous owner! So, how do you determine whether your domain is pre-owned? And if so, how do you uncover any potential SEO risks? Here’s your “Carfax” guide to buying a web domain name:

Start with WHOIS

When you register a domain for the first time, the information you furnish to the registrar is stored in a database. Except in the case of a private registration, that information is publicly available and accessible using a query called WHOIS. When used, WHOIS returns database information so that the site’s domain name, owner, creation date and expiration date, for example, can be viewed. If you’re purchasing your domain from an auction or directly from another consumer, then your domain was obviously pre-owned. However, if you are utilizing a registrar like GoDaddy or NameCheap, then you will need the WHOIS from domaintools.com to pinpoint the domain’s birth date. Enter your newfound domain into http://whois.domaintools.com WHOIS LOOKUP. If the domain has had one or more previous owners, you will see a Registrar History, NS History (Name Server), IP History and Whois History. Next to Whois History is the domain’s “birthday.” If no Whois or Registrar history is shown, then you are the first person to register this URL. But don’t get your hopes up too fast. Even new, unused domains can carry a shoddy SEO history.

Provide some context with web selfies

In its WaybackMachine, web.archive.org provides website snapshots over time. These selfies can provide contextual understanding of how your website was used as far back as 1996. This is particularly useful for understanding anchor text and backlinks.

New or used, check for backlinks

Backlinks pass link juice to a website, which can positively or negatively affect a site’s SEO metrics including PageRank (PR), Domain Authority (DA) and Trust Flow. Even domains without a birthday may have inadvertently acquired links. This is particularly common if a website’s name is close to the spelling of another more popular site. So with each domain purchase, you may be inheriting a blank slate, a goldmine or a deathtrap. As a starting place, OpenSiteExplorer.com or BulkDaChecker.com will provide a quick DA check. DA is Moz’s “best prediction for how a website will perform in search engine rankings.” Many elements, including the domain’s age and its backlinks, are factored into determining DA. And, the higher the DA the more likely you will rank highly in Google SERP. A DA of 1 (out of 100) usually suggests a site has done no link building. However, the only way to be certain is to investigate further with MajesticSEO.com (in both Fresh and Historic Indexes) or ahrefs.com – both websites offer free and paid subscription options. At first glance, the information can be overwhelming.  So, here are the tabs/pages you need to explore:

Anchor Text

The purpose of anchor text is to give readers clues about a link’s content. When a site has been spammed or intentionally implemented Black Hat SEO, the anchor text is usually a dead giveaway. Irrelevant anchors If the domain you’re interested in purchasing is cell-phone-provider-online.com, for example, “Versace shoes” anchor text does not make sense. If you happen to purchase this domain, you’ll want to disavow or manually request removal of these links. Poker, porn, payday loan or prescription anchors Usually bad company does not come alone – if you see one Viagra or Online Poker anchor text, you’ll see another. Also watch for unexpected women’s names like Lucinda and Lolita; this typically indicates pornography backlinks. Non-English anchors Unless the site previously targeted non-English-speaking customers, you should not see any foreign anchor text. Repetition of exact-match anchor When a site acquires links naturally, it is rare to find repetition of the same anchor text over multiple sites.  For example, if you sell desk chairs, one website may link to you from their content using your domain name, another will use “office chairs,” and a third may lead in customers with the word “website.”  If the occurrence of a single anchor text over multiple sites stands out to you as appearing unnatural, then it likely is – and this may have been the result of old-school link building tactics that are now being penalized.

Referring Domains

A referring domain is a site that links to your domain. On both MajesticSEO and ahrefs.com, referring domains are sorted in order by number of links for your convenience. Unnatural distribution of links As a general rule of thumb: if greater than 50 percent of your links come from less than 10 percent of your referring domains, then this is a red flag. As an example, let’s say you have 5,000 total links. Of that 5,000, 3,000 come from a single domain, another 1,000 are from a second domain followed by one, two and three links from a series of other domains. This concentration of links from one or two domains may indicate the presence of a link network or site-wide links – two things that will position you for Google penalties. Foreign top-level domains (TLD) When in high volume, foreign TLDs like .ru, .br, and .fr will point to spam. You will likely want to disavow these domains.

Follow-to-nofollow ratio

A quick check of the follow-to-nofollow ratio (available from MajesticSEO and ahrefs dashboards) will help identify if your site has accumulated comment, forum or user-generated profile spam. A link portfolio of more than 50% nofollow links is worth additional investigation. In such a case, dig deeper into the actual nofollow links to determine their origin.

Check for Google penalty indicators

SEMRush is a favorite tool among many Internet marketers. It’s known primarily for its support of keyword research. However, with a little deductive reasoning, you can use those same tools to identify if a site has been penalized. Here are the dates you’ll need from the exercises above: From WHOIS:

• Use domain birthday (creation) as your starting point
• Note dates where there were changes in domain ownership

From the WaybackMachine:

• Note any redesigns or periods of maintenance

From Moz:

• Note dates of major Google algorithm changes

From the SEMRush.com home page, enter your domain. In the traffic viewer, select “2 years.” A normal traffic pattern for a website will appear similar to sine wave with natural dips for seasonality and having an upward-and-to-the-right trend. If your two-year view does not show enough data to see this, expand to “All Time.” Dips in organic traffic are expected when a site is down over along period for maintenance, for redesign or for change in ownership. If in addition to these natural changes you still a significant drop in organic traffic, Google may have penalized the site. And while there is no way to confirm the penalty without access to the site’s original Webmaster Tools, traffic patterns have historically proven the best litmus test – rapgenius.com is a recent example.

Is the website safe?

Worst than penalties is malicious content. A site marked for hosting malware will have been blacklisted by search engines, Internet browsers and the like – and is therefore not a domain you should invest in. Use Google’s Safe Browsing to determine if your future domain has been sited for hosting malware in the last 90 days. To inspect, replace yahoo.com in the link below with your domain. http://www.google.com/safebrowsing/diagnostic?site=yahoo.com If you decide to take on a site with a soiled SEO history, get ready for many rounds of research, link removal requests and inclusion requests. Based on your findings, you’ll have to determine if it’s worth it. If it’s the domain of a lifetime, then maybe it is.  But if not, there are many more domains out there, and with a little bit of time, you can find the right one for you.

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Building a Thriving Community Ecosystem: The Five Essential Elements

What is an ecosystem?

In nature, an ecosystem is defined as “a system formed by the interaction of a community of organisms with their environment.” In today’s culture of the Web, an online ecosystem is essentially the same thing – the organic result of the interactions that occur between the members of a community and the environment that they live in. It cannot be defined in and of itself but only as the sum of its thousand moving parts. For brands that exist in today’s culture of the Web, there is no higher echelon of marketing than establishing your own community ecosystem. Why? Well, it’s one thing to interact with your customers and fans in an ecosystem that someone else has built (e.g., Facebook, Twitter, etc.). However, because you didn’t build the ecosystem, you’re limited to one-off interactions that are structured according to the framework defined by the architects of that community (140 characters, anyone?). On the other hand, however, when you’re the one that builds the sandbox, it’s your party. Your website becomes the place where members of your tribe choose to hang out, to debate, to share and to be inspired by their peers – who, incidentally, are other members of your tribe. Most importantly, their identity as a member of this community is inextricably linked to your brand. It’s a marketer’s wildest dream come true. The process of building a thriving ecosystem is no small feat. Here are the five essential elements that you must have if you want to create a real, organic online community that simultaneously exists for and is a product of your tribe:

Earth: The foundation

Before you can build an ecosystem, you have to lay the foundation. But where do you begin? In our series on understanding and marketing to tribes, we established that tribes form around a shared passion for a specific idea, lifestyle or movement. Therefore, for your ecosystem to thrive, there must be a common thread that draws people in and binds them to the community and its members so that they identify themselves as part of your tribe. Your goal is not to build the next Facebook. People don’t need just another broad-based social network where they can set up a profile and post their thoughts. That already exists in any number of places where they already do those things. What people are yearning for is to be among and connect with other people who share their passions. When you build a community around that passion, they’ll come there knowing it’s a place where they can satisfy that need to belong, where they’ll be among others who speak the same language and where they’re free to obsess over something with like-minded people who won’t mind if they talk ad nauseum about that one particular thing that really stokes their fire. So how do you find that common thread? Think about your customers. What do they love? What excites them? What challenges do they face day in and day out? What do they worry about? How can you tap into those things? The answer to those questions is the foundation for your ecosystem. By identifying the common passion that unites your tribe, you can begin to build a community where great interactions will thrive. Even if your brand only ever lives at the periphery of those interactions, that’s okay. Remember, too, that among those who populate your ecosystem there will be individuals who are already your customer, might someday be your customer or may never be your customer, and that’s okay, too. The fact that you exist at the root of all of it will yield greater rewards than you could ever imagine.

Air: Sharing

The ability to interact with other members in meaningful ways is as critical to the life of an ecosystem as the air we breathe; in its absence, the community suffocates. An ecosystem is not a blog with comments. While commenters may well respond to one another on occasion, these interactions are limited in scope to the content to which they are attached. There’s nowhere else for these commenters to go to keep the conversation going or to talk about a different subject entirely. An ecosystem is not a message board where people come to get help or resolve a problem. Once that problem is solved, they move on and never come back; they don’t identify themselves with or feel any lasting ties to the community. An ecosystem is a place where people can share the things matter to them in ways that are meaningful to them. It starts with being able to establish a profile – one that’s more than simply a name and a photo. You need to give people the ability to define who they are in the context of that community and its foundation. Then they need outlets to share their own ideas, photos and videos and to interact with others around that shared content. It’s this level of highly personalized sharing that forges deep, persistent bonds among members of a community. NASCAR driver Ryan Newman’s Fan Club site is built around keeping its members engaged and active by giving them many different ways to share and interact. They can post their own videos, build photo albums, join the conversation on community message boards and even chat with other members in real time. Again, keep in mind that all the sharing that takes place in your ecosystem may have very little to do with your products or services. And that’s exactly what you want because a community that will thrive over the long haul is one that exists to serve its members, not your brand and your business. As long as you’re the one providing the arena where these exchanges are taking place, you’ll benefit immeasurably from constant exposure and engagement.

Water: Leadership

Good tribe leadership is the water that helps a fledgling ecosystem grow and keeps an established ecosystem strong and thriving. The task of providing good leadership is actually more challenging than it may at first seem. In the traditional world of marketing, everything was centered around presenting a carefully cultivated message and never allowing the customer to see any cracks in the perfectly polished veneer of a brand’s image. But that approach doesn’t work in the world of the online ecosystem. You must be comfortable walking among the members of your community and interacting with them on a human level. You must be willing to drop the corporate mask and be authentic. Think of your role as the leader of your community as being the host of a party. It’s not your job to dominate every conversation or to restrict what your friends are and are not allowed to talk about. It is your job to provide good fodder for discussion, to fill in the gaps when you sense a lull in the conversation and to help everyone feel at home and included.

Fire: Rewards

The members of your ecosystem that make the wittiest comments, spark the healthiest debates or share the most interesting content are the ones that keep the community vibrant. So how do you motivate them to keep doing what they do best? In today’s fame-obsessed culture, everyone wants their 15 minutes of notoriety, and everyone wants to feel like a celebrity in their own circles. People are driven by the opportunity to be elevated to a position of higher esteem among their peers. Therefore, if you want to stoke the fires of participation in your ecosystem, recognition is the name of the game. Give the members of your community ways to participate that are all about them, and then reward them for that participation. Distinctions such as “photo of the day” or “most viewed video” reward the creator by putting him or her in the spotlight. Call them out from the crowd, and you'll feed their craving for more recognition. The key to establishing an effective reward system is knowing what motivates the members of your community. For example, because racing fans thrive on competition, the Ryan Newman Fan Club community is built around a points system. Members who start discussions or who post photos and videos can earn points – or votes – from other members that put them in the running for a spot on the fan club’s leaderboard. Points are tallied throughout the racing season, with prizes awarded to the top performer each month as well as the top overall points earner for the season.

Aether: The essence

Aristotle defined aether as the quintessence – the immutable substance that makes up the heavens and stars. When it comes to online ecosystems, the aether is the intangible element – the sine qua non – that makes being a member of your community something to be desired. Think about the most popular nightclub in town. Why do people go there? It’s not just to listen to music. It’s not just to drink a martini. It’s not just to hang out with their friends. They could do all of those things in any number of places. There’s something in the atmosphere – an indefinable quality – that propels them to go to that one club rather than any of the dozens of others in the same vicinity. Perhaps it’s that when they go there, they’re surrounded by people just like them. Or perhaps they’re surrounded by people that they aspire to be like. Maybe it’s the bragging rights that come with being “seen” in the place that everyone’s buzzing about. Your ecosystem needs the same thing. There has to be some sense of status or value attached to being able to claim membership in your tribe. This is the one element of your ecosystem that you have the least control over. You simply can’t manufacture the essence, nor can you make a proclamation that this is what makes your community special. In fact, the essence can only emerge when it’s allowed to develop organically. When you see members of your community sharing inside jokes, developing their own language, even making plans to meet up offline – that’s when you’ll know you have the essence. The best thing you can do when you recognize it is to subtly encourage those members or activities that you see happening around it so that it continues to flourish.

It’s your sandbox.

The prospect of building your own community ecosystem is certainly daunting. There’s much at stake and many unknowns that you must contend with. In sharp contrast to the world of traditional marketing, there’s a distinct lack of control. An ecosystem can only thrive when allowed to develop and grow naturally and on its own timeline. As soon as you start to restrict or interfere too much, it will wither on the vine. Entering the realm of ecosystem building requires a leap of faith. However, just as building the trust that your customers have in your brand is paramount to the growth of your business, putting trust in your customers is essential to the growth of your ecosystem. If you can relinquish the need for control and truly let the members of your community take ownership of it, you’ll be amazed at the results that unfold. Interactions will become vibrant and nuanced, natural leaders will emerge and the community will truly take on a life of its own. And in today’s marketplace, there is no more powerful force for business growth than a large and engaged community that’s homed around your brand.

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