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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One Year Later

Today, there is freedom in marketing. No longer is the loudspeaker of the media controlled by a select few. As a result, so much more can be gained than ever before, all with fewer resources and less risk. The playing field has been officially leveled—and not a minute too soon.

With those words, we launched the first Fame Foundry Magazine and began leading a revolution.

Recognizing that the world of marketing is riddled with misinformation and con artists, we set out on a mission to cut through the static and get to the truth of the challenges of growing business today.

Each month we bring you articles that cut through the muck of jargon, myths, speculation and the outmoded ways of old marketing to give you the clarity and perspective you need to thrive in today's marketplace. As we mark our first anniversary, we take a look back at the fundamentals of new marketing that we’ve established over the past year.

The end of marketing as we knew it

Prior to the advent of the Digital Age, our culture was based on a handful of media. Television, print and radio were the anchors of mass information exchange and business promotion.

As a result, if you owned a business or were charged with growing a company, you were shackled to promotional entities such as television commercials, newspapers and the Yellow Pages.

Those days are long gone, and those systems are now dying. In their place are unlimited channels of conversation not only between one person and another but between people and business.

No longer does mass media claim a chokehold on the lines of communication between companies and customers. No longer are information gathering and sharing the exclusive domain of mainstream news organizations. No longer are consumers willing to passively absorb the web of lies concocted by marketing’s spin doctors.

Today the means of communication have been revolutionized, and the old methods marketing to the masses have been rendered ineffectual.

Read more:
Prying the Torch From the Dead Hands of Old Marketing

All hail the virtual agency

The only thing deader than old marketing is the traditional agency, and its business model is in the grave right along with it.

Today's marketplace is ruled by survival of the fittest. It's time to get faster, leaner, smarter and more agile, and marketing agencies are no exception to this rule.

The new marketing company is one that hasn’t forsaken business principles that are timeless but takes advantage of all that’s afforded by today's technology to shave off unnecessary expenses.

OUT: Deals with a select few in a position of control.

IN: True, choice-based media, entertainment and communications.

OUT: Expensive payments to big, traditional, bureaucratic agencies that still attempt to use carpet-bombing tactics to grow your business.

IN: Fresh and nimble development firms who know how to build a brand and grow a following around it using today’s communication systems.

OUT: Paying the price for enormous overhead expenses for big buildings and lavish offices filled with excessive personnel.

IN: Virtual and hybrid marketing firms that work fast and don’t pass the bloat of unneeded expenses on to their clients.

OUT: Working through layers of costly production managers, account executives and supervisors before you get to the people that really do the work.

IN: Having access to the key architects and creative talents who are integral to the ideas and concepts essential to your success.

Read more:
10 Things You Pay for From Traditional Marketing Agencies

If marketing is dead, what's next?

Getting and keeping customers is what it's all about. That much hasn't changed. What has changed is what's needed to achieve it.

Gone are the days of growing your brand by marketing to the masses. Today’s consumers are disengaged from commercial culture as we once knew it, disenchanted with marketing’s shallow messages and misleading claims and disillusioned by promises unfulfilled. Instead, they are ever in search of the authentic. They are driven to seek out companies they can believe in and to identify themselves with brands that inspire them.

In a world of unlimited channels of communication, loyalty is no longer a commodity that can be bought rather than earned. In the new millennium, trust has become the currency of a marketplace driven by the consumer, and the new way to grow business is through trustcasting.

Simply put, trustcasting is the ongoing process of building and maintaining trust between a business and its customers. The practice of trustcasting requires that any and all resources dedicated to the promotion of business be directly or indirectly founded in trust.

Trustcasting approaches customers as people, not numbers. For those ingrained in the old practices of mass marketing, this represents a daunting ideological shift, but the task of earning and keeping trust cannot be reduced to statistics or demographic segments.

Recognizing word-of-mouth as the primary medium by which today’s customers are won, those that practice trustcasting engage in two-way communication with their customers on a human level, demonstrating genuine respect and value for their time and attention. While this approach undoubtedly requires a more significant investment in time and resources than traditional marketing, the return — cultivating a community of evangelists around a brand – is also much more profound and lasting.

Read more:
Put Away the Smoke and Mirrors
The Trust Manifesto
Goodbye, Marketing. Hello, Trustcasting.
10 Resolutions for Success in 2010 and Beyond
10 Keys to a Successful Marketing Partnership

A brave new world

In today’s marketplace, the Web is where customers are won and businesses grow.

It starts with a great website – one that has successfully confronted and conquered the challenges of providing a beautiful interface, engaging content and utility beyond your primary offering. However, even the best site is only the first step; it’s the foundation upon which you can start to develop a community around your brand.

Once you’ve launched your site, you’ve effectively set up shop and opened the doors. That’s when the real work begins.

To get and keep customers, you must master the Web marketing universe beyond your own site. You must actively seek out those whose needs, desires and interests align with the products or services you offer, draw them in and engage them in conversation.

While it may initially feel like daunting and unfamiliar territory, the key to navigating this new landscape successfully is to ensure that all of your efforts are driven by the motivation of establishing and keeping trust. As long as you always follow the principles of trustcasting, you will inevitably turn contacts into customers, customers into fans and fans into evangelists, all while cultivating a vibrant virtual community.

Read more:
The Web Marketing Universe
On the Right Path
Best of Charlotte Website Design
The “No Duhs” of Social Media
10 Principles of Trustcasting in the Web Marketing Universe

Be yourself or be nothing at all

It’s a mantra worth repeating: People follow people, not companies.

PR done right in today’s marketplace is about people. Cultivating a fan base and creating rich relationships with your public requires that you drop the corporate mask and be a real person.

The public has no affection for the face of corporate America. No one wants to see standard form-letter responses and press releases on Facebook, Twitter and the like.

You must stop being corporate and start representing your brand on a personal level. Be real, flaws and all. Be prepared to be honest through and through. Share your time, your action and your help. Be present every day – accessible and responsive – without fail.

If you try to play it safe and fabricate a personality that shows the world the face you want the public to see, this artifice will be found out quickly. No one will invite you back to the conversation. In fact, you will be banned from the conversation.

By contrast, engaging in real relationships creates fans. Fans are more than just loyal customers; they are brand evangelists that do your marketing for you.

Read more:
The Cult of Personality (Part 1)
The Cult of Personality (Part 2)
Breaking Boundaries

The Age of Tribes

Behind every major movement and successful marketing engine there is a tribe.

What is a tribe? Simply put, it is a group of people that connect around a common goal, shared passion, similarities in background or a need for solutions to improve their lives.

The facts are simple: if you want to grow and thrive in today’s marketplace, you must identify, become a member of and lead the tribes that are relevant to your business and your bottom line.Your organization, your business operations and your products or services must be shaped by and around the tribe.

Tribes are ready and waiting for the next big thing that is going to solve their problems, meet their needs or make their lives better. If you’re the one that delivers that idea, they’ll rally around you, spread your message like wildfire and fan the flames of your success. The power and influence you command as the leader of your tribe is unrivaled by any form of traditional advertising.

Read more:
Tribes in Today’s Marketing
Mastering Tribe Marketing
Shaping Business for the Tribe

Following the leaders

If you need living proof that the rules have changed, look no further than the Fame Foundry Podcast. Each month we spotlight the people and companies who are leading the way in setting new trends and redefining how business is done today.

Take, for example, best-selling author and video blogger extraordinaire Gary Vaynerchuk. When it comes to the gospel of personal branding, there is perhaps no one so well qualified to preach as Vaynerchuk, who has not only turned his family business into $60 million-a-year wine empire but has cultivated a following of more than 100,000 for his daily video blog.

For a true testament to the power of Twitter, we introduce you to Comcast’s Frank Eliason – the man behind the Internet’s most advanced social media-based customer service program. Eliason has achieved the impossible by lending a human voice to the cable giant and transforming formerly dissatisfied customers into brand evangelists.

Then there’s the inspiring story of Amélie’s French Bakery in Charlotte, N.C., which defied the unfavorable odds of launching a new restaurant in the midst of an economic downturn by cultivating a reputation for authenticity and a fiercely loyal community of ardent evangelists.

Perhaps you are sold on the importance of social media platforms like Facebook and Twitter, but you’re still dubious of the value of viral video. Meet self-proclaimed “Internetainers” Rhett & Link, whose reputation for creating highly popular video content has brought major brands like Cadillac, McDonald’s, Coca-Cola and Starburst to their doorstep.

Read more:
Gary Vaynerchuk: Profit from Your Passion
Comcast’s Frank Eliason: Creating a Better Customer Experience One Tweet at a Time
Amélie’s French Bakery: Staying True to Success
Rhett & Link: The Business of Viral

More to come

The revolution is far from over, and Fame Foundry is just getting started. Keep reading for more intelligence on the new rules for business growth and what it takes to compete in today’s marketplace.

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New Year, New Ideas: 3 Smart Strategies to Jump Start Your Marketing

The beginning of a new year makes everyone feel like a fresh start is possible, and businesses are no exception. Plenty of opportunities exist online if your goals include making improvements or ramping up your marketing efforts in the new year. You know that maximizing your brand’s exposure is the key to gaining new customers or maintaining the base you already have, so when you make your company’s list of new year’s resolutions, make sure to include a commitment to exploring new avenues for marketing on the web. If you feel as though you’ve exhausted all possibilities for online promotion of your business, think again! Numerous options are available that you may not have considered.

1. Expand your social media efforts.

By now, if you don’t have a Facebook page that is frequently updated with new content, you’re way behind in the marketing game. It’s estimated that 15-25 million businesses – both large and small – have a presence on the social media giant. And with 500 million people worldwide using Facebook, a business would have to be crazy not to create a page. So, assuming you’ve already established a Facebook presence, it’s likely you’ve also connected with customers and potential customers through Twitter or LinkedIn, as well. But what about Google+? Or Pinterest? Instagram? In this tech-connected world, it’s essential to not only stay on top of the social marketing trends, it’s also imperative to spread your marketing efforts across many different platforms to reach as many potential customers as possible. So, where to begin? As with any marketing plan, it depends on what services and products you’re selling. It makes sense that a product that has visual appeal would benefit from marketing on a visual social media platform, such as Pinterest, Tumblr, Instagram, or Flickr. Establishing a following on any of these sites literally raises your company’s visibility via images and copy that can be shared and made viral instantly. To add more power to your visual message, establish a YouTube channel and upload short video presentations of what your product can do, or use the Vine app to create looping videos. If your company offers a service, Howcast is a great place to post how-to videos that can be shared across the other social media sites. Building your brand via social media is effective, but only if you update your content frequently; after all, the goal is to maintain your presence. If you find that constant updates are overwhelming or daunting, think about utilizing the services of a website like Hootsuite, which offers a bulk scheduler that can send out up to 350 pre-made messages to the social media sites your company uses. Not only will that free up your time, it can also prevent consumers from being bombarded by your messages – the scheduler can be used to space out your updates.

2. Publish, publish, publish.

If you haven’t already embraced content marketing, now is the time to do so. Content marketing is essentially targeted marketing that doesn’t scream “targeted marketing”. You create content in the form of articles or blog posts that your customers will be most interested in. It should be relevant, purposeful, and considerate of your audience’s needs and intellect. Content marketing takes a step back from in-your-face sales techniques, and instead informs your audience about what you have to offer. Content marketing is highly effective, and doesn’t feel pushy. If you’ve been using content marketing via blog posts, you might want to try to mix it up a little bit – especially if you’re running out of fresh content. One way to spice up your marketing efforts is to add a podcast to your website. A podcast can provide a weekly or bi-weekly bite-sized chunk of information to your customers that won’t require the time it might take to read content. Keeping the podcasts to about a minute in length is enough time to hook listeners, keep them engaged, and possibly leave them wanting to know more about what you have to offer. Perhaps the best aspect of podcasts is utilizing content you’ve already created, thereby opening an entirely new channel of exposure for your product. In recent years, the internet has exploded with blogs by “experts” in nearly every subject. To give additional exposure to your blog or podcast, employ the services of a blogging superstar in your field to provide a guest blog or an interview. You don’t have to limit yourself to bloggers, of course; finding other influencers in your field for “guest” opportunities will not only increase awareness of your company, but also provide an excellent opportunity for SEO leads to your website. The best part of utilizing guest bloggers is that more than likely, that guest blogger will post the blog on their site, which in turn drives even more visitors to your business blog. Cross-referencing is a great click-generator. Keeping your content visually inviting should also be a priority as you resolve to freshen up your marketing efforts. Web visitors love to see visual representations of information, and infographics add spice and interest to any online content. If you deal with technical or difficult-to-understand concepts, adding a visual element such as an infographic can be extremely beneficial. Several apps are available online to create interesting, colorful representations of complex information. Sites such as piktochart.com or infogr.am are easy to use, and free. And best of all, the designing is done for you.

3. Capture customers when they’re searching.

None of these suggestions will work very well if your company can’t be found online, and that’s why you may want to investigate cost-per-click, or SEM (Search Engine Marketing) advertising. One of the largest and most popular online advertising methods is Google AdWords. People worldwide search Google for information a billion times each day. If your business shows up at the top of Google’s search engine, you’re guaranteed to draw in new customers, or at the very least, get more exposure. The key, of course, is to come up with the right keywords to generate the most visits. The AdWords platform allows you to specify what keywords entered by searchers will generate your ad. You can be specific about services your business provides, or you can limit your ad to a particular geographic location. Customization is offered in varying degrees; you can even select your ad to appear on certain days of the week, during specific hours, or even whether the ad is shown on mobile devices only. Cost-per-click works based on what budgetary parameters you set; for example, you set a daily budget, and are only charged when someone clicks on your ad, not every time it is displayed. According to the AdWords website, you specify the maximum amount you're willing to pay for visits to your website. The bid you make determines how high up on the search results page your ad appears. Don’t just limit your efforts to Google, either. Facebook offers a cost-per-click service, as does the Bing search engine. Several other companies provide the service, as well.

Stay the course

No matter what new ideas for marketing your business and products you choose to explore in the new year, the most important element in your endeavor is to stay consistent. If you start out the year with a focus on making changes, stay committed to maintaining those changes. Your customers will expect you to follow through, and your success may depend on it.

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