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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Rediscover the Lost Art of Focus

Does this sound like a typical occurrence in your day? You've just wrapped up one task, and before you move on to the next, you decide to take a quick break to see what's new on Facebook. Hey, look – your friend posted a link to an article in the New York Times. You click through to read, and when you're done, one of the related articles catches your eye. That one leads to another and then another. When you finally reemerge from the rabbit hole of link-clicking, you realize that half an hour has evaporated. Or perhaps your e-mail notification alert chimes, and you click over to find a reminder that your car is due for service. While you’re waiting on hold with the dealership to schedule your appointment, it occurs to you that you haven't checked the balance in your bank account lately, so you log in, and then you remember that you also need to pay your water bill. Before you know it, what began as a simple two-minute task has become a 20-minute derailment.

The cost of disruption

But a few distractions during the day are harmless and practically unavoidable, right? Not so much. All those minutes wasted here and there turn into hours that come with a high price tag if you're your own boss. When you're an entrepreneur, your time is your most valuable asset. When you're an entrepreneur, your time is your most valuable asset, and one of your most important responsibilities is being a good steward of that asset. Every minute frittered away on Facebook, YouTube, blogs and even mundane chores is a minute you're not spending innovating, selling or shipping. In reality, no matter how dedicated you are to your business or how deep your passion runs for what you do, staying focused can be a challenge. Between phone calls, e-mail, social media sites and routine daily to-dos, your attention is constantly being pulled in many directions at once. However, it is possible to quiet your mind and rein in the distractions, but to do so, you must recondition your brain. If you're serious about increasing your productivity, you must commit to a structured regimen of daily practice in regaining your focus, just as you would if you were training to improve your speed and endurance in running or cycling.

The Pomodoro Technique

One of the best methods for cultivating your powers of concentration is the Pomodoro Technique. In a nutshell, this technique is a time management tool that breaks the working day into units of 25 minutes called "Pomodoros." Use the clock as a time cop and obey it relentlessly. To get started, all you need is a timer, a notebook and a pen. When your day begins, make a list of all the tasks you must accomplish in order of priority. Set the timer for 25 minutes, and start working on the task at the top of the list. Focus on this task and only this task until the timer chimes. When the timer goes off, mark an x next to that task on your list and give yourself a short break of no more than three to five minutes. The purpose of this break is to let your mind rest and disconnect, so don't keep thinking about what you were just working on, and don't get wrapped up in responding to e-mail or returning a call from a client. Instead, relax, get up and stretch, read an article on your favorite blog or take care of one item on your personal to-do list. After every four Pomodoros, take a longer break of 15 to 30 minutes. Then simply repeat this cycle until your workday is done. The key to success in implementing the Pomodoro Technique is to use the clock as a time cop and obey it relentlessly. Be sure to set the timer for breaks, too, so that you're not tempted to extend them beyond the allotted time. However, always keep in mind that breaks are equally important as the 25-minute Pomodoros, so don't work through them in your eagerness to finish your task, either. The breaks are there for a reason – to allow you just enough of a mental refresher to keep you razor-sharp without getting sucked into a vortex of distraction.

Put time back on your side

As you adapt to this new daily rhythm, you'll be amazed how quickly the clock ceases to be your enemy and becomes your ally. You'll also realize how many times throughout the day you habitually allow yourself to be interrupted by distractions like Facebook and Twitter just because they're there. Reclaiming lost time in your day is critical to getting the most out of your business growth efforts.With practice, it will be easy to tune anything and everything out for 25 minutes. Knowing there is a break ahead is a great source of motivation. When you're tempted to check e-mail or see who's on IM, look at the clock first, and make yourself stick it out, knowing you never have more than 25 minutes until the next break. The Pomodoro Technique is much more than just an exercise in self-discipline; it's also an invaluable resource to help you take control of your time and boost your productivity. Because you keep a running daily log of how many Pomodoros it takes to accomplish each task, you will develop a very clear picture of how long each activity takes, which will help you estimate and prioritize projects more effectively so that you don't find yourself racing to meet deadlines. You can also identify tasks that are absorbing a disproportionate amount of your time and develop more efficient ways of getting them done. Reclaiming lost time in your day is critical to getting the most out of your business growth efforts. When your focused work time is more productive and your downtime is kept in check, you'll be amazed at how much you can accomplish when you quite literally put your mind to it.

Further reading

To learn more about the Pomodoro Technique, download the free instructional e-book at  www.pomodorotechnique.com.

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On the Right Path

When I was in college, I had a professor who spoke a lot about the importance of wayfinding. He was especially interested in how the Department of Transportation studied design elements such as typography and contrast to discover the best font and colors to use on their signs. When you drive down the interstate, those big green signs with white lettering make navigation pretty easy. Or consider the wayfinding system of a large airport. Getting from terminal A to terminal D would be a nightmare without all the signs helping us along the way. The core function of good wayfinding is to get a person from point A to point B, quickly and efficiently. In order to do that, a person navigating the system should need only to look for signs to point them in the right direction. Just as an exit sign tells an interstate driver where to get off, the visual cues on a well designed homepage should direct a visitor onto the right path.

Why It’s Important to Funnel Visitors

It is the job of the homepage to quickly funnel users to the information they need the most.We often hear the term “funneling traffic.” It is usually used in the context of getting people to visit a site from the outside via search engines, social media or a traditional marketing campaign. But it is equally important to funnel traffic once they get to your site. Your company may have several types of audiences, and you need to speak to each one in different ways. The type of information provided and the tone in which it is presented will be different depending on the audience. A site that tailors its information to specific audiences needs a way for those audiences to quickly identify which category they fit in or which area they are most interested in. It is, therefore, the job of the homepage to do that efficiently. Success in this area means getting a visitor off the homepage and deeper into the site—where you can convert them from a visitor to a customer or fan. It also means protecting them from purposeless information that gets in the way of what they’re really looking for.

Know Your Audience

Before you start funneling visitors you need to identify your audiences. By knowing your target audience, you will be more confident in knowing how to connect with them. Again, your site may have several target audiences. A healthcare site has to accommodate both patients as well as medical professionals. A nonprofit organization has to accommodate people who want to volunteer their time, those who want to donate money, and those who need to use the service the organization provides. All of these audiences have unique needs and specific requests—but before they can become more than a visitor, your site has to give them what they're looking for. The power of your site relies on your ability to focus on your audiences.

Focus Your Funneling

We’ve all been there: stopped at an intersection, not knowing which way to go. One road with two names. Two roads with one name, but going in different directions. Sometimes you just pick a road and see what happens. And sometimes you get lost and have to turn around—something you certainly don’t want a visitor to your site doing. It's natural for a business to want to accommodate every single visitor that comes to their site. Doing this, however, can quickly lead to a cluttered homepage and information overload. Or, in our transportation analogy, an intersection just like this: If your homepage looked like this, most visitors would simply hit the back button and leave your site, not only confused and turned off, but more important, with a negative opinion of your company as a whole. If your site has many types of people visiting, it is important to identify the characteristics of your core audiences in order to quickly direct your most important traffic to where they need to go. This will keep your homepage clean, simplified and actually make decision making easier for the user. Visitors given 3 choices based on core audience characteristics—as opposed to 10 choices based on characteristics for every visitor—will be able to identify their needs and navigate more quickly. Your homepage does not need to encompass every detail about your company or product. Statistically, only 30% of a visitors time is spent on the homepage. The rest is spent on deeper level pages that are better equipped to handle the needs and interests of your visitors—and move them to action.

Give Them What They Like

Once core audiences have been established, you need to determine how you want to motivate them and what actions you want them to take. It is not as simple as saying, “visitor x goes here and visitor y goes here.” You need to know what those visitors are interested in—what motivates them to delve further and eventually cause them to take action or reach a conversion point. Audiences may be influenced by statistics, testimonials, free trials or product features. By knowing what motivates your audience, you will know how to quickly grab their attention and get them to want to take action. So what kind of action do you want your visitors to take? Of course the ultimate action is often financial, whether that is buying a product or service or donating money. But there are other actions that can facilitate that final goal. You may want first-time visitors to download a demo, take a tour or request more information by filling out a form or signing up for a newsletter. Or perhaps you want to drive people to a physical store using a “find the nearest location” feature.

Bringing It All Together

Now that you know the who, how and why, it’s time to bring everything together in a killer homepage design that will not only look great, but function seamlessly as a visitor’s guide to your site. Many well-designed sites begin with a large introductory headline and a brief opening paragraph that gives the visitor a snapshot of what the company is about or what it is selling. The funneling occurs with individual modules that target a specific audience. Designs should be clean and contain good contrast to quickly identify elements. Headlines should be specific, leaving little doubt who the following information is intended for. Typically, “more” or “continue” buttons are used, prompting the visitor to explore the next level of the site. Often pictures of a product or other graphical elements are used to entice the visitor into wanting more. Here are examples of sites that do this well.

Conclusion

Your homepage is not only a first impression, but the starting point to an experience. A good homepage is a spring board that motivates people to explore more important areas of your site. It clearly direct visitors to the information they need the most to get them to a final destination. And if their journey is a pleasant one, you're one step closer to a repeat visitor, fan, and even customer. Happy trails!

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