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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Six Lessons from the Retail Sales Floor for Delivering Superior Customer Service

Take a moment to reflect on the last time you visited one of your favorite retailers. Did you encounter a friendly, outgoing salesperson? Did he or she help you find exactly what you were looking for by taking the time to get to know you and really understand your needs? If you answered yes to those questions, then you were on the receiving end of excellent customer service. Notice that I didn't ask if you found a good bargain or if you had the chance to negotiate a more favorable price. Providing good customer service means making an authentic connection; it doesn't mean simply reaching an agreeable price, closing the sale and saying goodbye. As one charged with growing and marketing your business, it's your job to ensure that you and every single person you put on the front lines bring authenticity and enthusiasm to every interaction with a customer or prospect. Whether you have a staff of five or 500, the last thing you want is a customer who feels like they and their hard-earned dollars are under-appreciated. I can’t even count the number of times I've come across a customer service rep who sounds bored and apathetic. This not only makes me want to conclude my frustrating encounter with this person as quickly as possible, but it also leaves me with a sour taste in my mouth about the company as a whole, making me highly disinclined to do business with them again in the future. And if I walk away feeling this way as a result of this rep’s apathy, inevitably there will be hundreds or even thousands of others who share my sentiment. Leave enough customers feeling alienated, and eventually you will have the undoing of even the largest, seemingly most untouchable corporation. Through their actions and their attitudes, your customer service representatives and salespeople can make or break the reputation of your brand and, by extension, the health of your bottom line. From my experience as the operations manager for a large retailer, I know first-hand what it takes to deliver world-class customer service. Here are six best practices from the retail sales floor that you can apply in your organization to ensure that every encounter between your company and your customers and clients gets five stars for satisfaction.

1. Set the tone right from the start.

Rule number one of working the sales floor is to greet your customer as soon as they walk in the door to make them feel acknowledged and to let them know that you are at the ready to serve their needs. Whether you’re meeting with your client in person or by phone or even via web conference, set a positive tone right from the start by warmly welcoming them and breaking the ice. And don’t feel compelled to get straight down to business. Beginning the conversation with a bit of casual, non-work-related talk will establish an emotional connection and let them know that you see them as a person first and customer second.

2. Establish the need.

In the store, the first question out of my mouth after greeting the customer is, "What's the occasion that brings you in?" This gives him the opportunity to tell me a little bit about himself and what he’s looking to accomplish from his visit. The same applies to your initial encounter with a new prospect. As soon as you’ve established a comfortable rapport, it’s time to start asking questions that will help you gain a better understanding of their needs and goals. And, remember, while they may have come to you seeking help with a specific problem, if you’re a savvy conversationalist, you may be able to uncover a broader concern or objective that you can partner with them to solve. That’s why it’s important to make sure you pose insightful questions that will paint the full picture of who this person is, what their experience has been to date and how you can play a role in helping them advance their goals.

3. Listen. No – really listen.

In the retail setting, one of the best things you can hope for as a salesperson is a chatty customer. The more information they volunteer, the easier it is for us to provide helpful recommendations. For example, a woman in her 20s walks through the door and mentions that she’s looking for a cocktail dress, so you offer a few nice selections that fit the bill. But after a few minutes pass and some pleasant conversation ensues, she reveals that the dress is actually for her cousin’s wedding. A mediocre salesperson says, “Oh, that’s nice!” and returns to folding shirts. But for the savvy salesperson who really hears what that customer is saying, the wheels of good service are set in motion. Because, of course, a wedding is never just a wedding. It’s merely the highlight of a full weekend of events that include at minimum a bachelorette party and a rehearsal dinner as well as perhaps a girls’ spa day and a day-after brunch. All of those occasions require a specific type of attire, which opens the door to an array of additional wardrobe needs that you might be able to help her with. And, hey – we get it. Between asking the right questions, keeping the conversation flowing and formulating your recommendations, it’s all too easy not to fully absorb everything your client is saying. But the worst possible mistake we can make as business owners, managers, marketers and salespeople is not really listening to our customers. Every word out of their mouth is a little clue – a piece of the puzzle that comes together to reveal what it is they really want. Don’t be too quick to dismiss what may seem on the surface like irrelevant details. Even if they're telling you about their children, their cat Whiskers or even their favorite Madonna song, listen and retain as much as you can. Bring along an associate, if needed. Make it their job to record everything that’s happening as it’s happening. Assimilating all of these finer points into a cohesive whole is what's going to help you establish a deeper connection with that client that will improve your chances not only of securing the sale at hand but also of cultivating a fruitful long-term, mutually beneficial partnership.

4. Be proactive but not pushy.

In a retail store, any salesperson worth their salt would never just point a customer vaguely in the direction of what they’re looking for and then leave them to their own devices to find it. Rather, they’d walk them over to the appropriate section of the store, help them pull the correct size, advise on proper fit, suggest alternative options or complementary accessories, etc. In the corporate setting, this translates to staying sharp, thinking on your feet and being a problem-solver. If you’ve covered the bases in eliciting good insights from your client – both in terms of their explicit needs and those they may not even be fully aware of themselves – now is the time for you to step up to the plate and swing for the fences. Let your expertise and your passion for what you do shine through as you offer intelligent and thoughtful recommendations, making sure always to frame your presentation directly in terms of how what you’re offering benefits your client. Put yourself on their side of the table, and let them know that you’re here as a partner in their success, not just someone looking to seal the deal. And on that note, every good salesperson knows how to read the room. If your client shows signs of being uncomfortable or overwhelmed, slow down and back up. You never want them to feel as though you are forcing something on them that they don’t want or need. The cliché of the pushy salesperson is a cliché for a reason.

5. Make the sale that makes sense.

Is there anything worse than walking down a mall corridor and being assaulted from every angle by the employees of those stand-alone kiosks who are trying to lure you over to see their wares? If you were interested in their products, you’d make a point to visit them of your own volition, right? Also, what’s with the aggressive heckling? Has that ever really worked? By contrast, when a customer comes into our store, we make recommendations based on what makes sense for their lifestyle and their needs, not what will fulfill our sales quota for the day. Many of them actually thank us for taking the time to show them products that are genuinely a good fit. When you present your client with a service or product that clearly clicks with them, they'll give you as much time as you need to explain the benefits. Better yet, if you can catch them by surprise with an unexpectedly innovative solution to their needs, they’ll be grateful for your insight and excited to move forward. Worst-case scenario? They’ll say no in the moment, but even then, if you’ve done the job well, given time to reflect and reconsider, they might ring you up again in the future. A word of caution, while you want to hear the cash register ring as much and as often as possible (or to see the signature on the dotted line, as it were), selling your products or services to a customer when you know they’re not actually a good fit for their specific needs is like playing Russian roulette. If the product isn’t really the right solution, your customer is going to be unhappy, and they’re going to point the finger at you. They’ll either assume that your product is subpar or, far worse, that your company is dishonest in its claims. That is one sale that will end up costing your company and your brand’s reputation dearly, as they complain vociferously to anyone who will listen.

6. Commit beyond the sale.

I'm not asking that you wine and dine your client every Friday night, unless you actually want to – in which case, I’m not hating. What I am asking, however, is that you dedicate yourself to ensuring their satisfaction. A smart salesperson recognizes that there’s no such thing as “closing.” After all, when a customer makes the choice to do business with you, you’re not closing anything. You’re only beginning the process of cultivating a relationship with someone whom you hope will be a lifelong client. For example, in my line of business I frequently work with clients who spend upwards of $1,000 or more with the company, and they sign contracts that span six months or longer. When someone is spending that kind of money and time with me, I want to make sure they feel comfortable and informed at every step along the way until our obligation has been fulfilled to their greatest satisfaction. Think of every interaction you have as an opportunity to cement your customer’s continued loyalty. Pay attention, nurture the relationship and earn the right to continue serving that customer’s needs. Don’t simply meet their expectations; exceed them at every turn.

Are you sold yet?

So as you can see, whether it’s on the retail sales floor or in a corporate boardroom, the basic principles of superior customer service are universal. By translating these six best practices to the specific products or services that your company offers, you’ll inevitably reap the benefits of customer relationships that are defined by authenticity, enthusiasm and a deep level of engagement. After all, traditional word-of-mouth isn't dead; today’s savvy customers just demand that you work a lot harder to earn it.

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Eight Steps to Conquering Local Media

Anyone charged with the task of growing a business salivates at the idea of landing in the national media spotlight. The lure of the massive exposure that just one mention on CNN, Good Morning America or Oprah or in the pages of Bloomberg Businessweek or USA Today delivers is the driving force behind many PR campaigns. However, it's important to remember that the cardinal rule of real estate also applies to media relations: location, location, location. Of course your potential customers are tuned in to news from the national players. But these customers also exist as members of their local communities. They live locally, shop locally and do business locally. They also read, listen to and watch local media outlets. No matter the size of your business or the scope of your target market, it's critical to develop a systematic approach to leveraging local media. That's why no matter the size of your business or the scope of your target market, it's critical to develop a systematic approach to leveraging local media outlets to increase awareness, build trust in your brand and boost sales. But if you want to make an impact, you must get strategic. Even at the local level, the competition is stiff for airtime and column inches. Here are the fundamentals of breaking through the clutter and conquering the local media markets where you do business.

1. Do your homework.

Every market offers a wealth of opportunities for media coverage. Make it your mission to uncover all of the outlets available to you in each market and then narrow your hit list according to the demographics of your target market and their media consumption preferences. For print media, you'll want to identify the major daily newspaper as well as smaller suburban weeklies and specialty publications that serve niche audiences like parents, women and retirees. Even the humble neighborhood association newsletter can be a valuable tool for showcasing your expertise or increasing awareness of your services. On the broadcast side, local television news programs are a given, but don't forget about local daily or weekly radio and TV talk shows, which often have strong loyal followings. Morning and afternoon drive shows in particular attract a huge number of listeners during the daily commute. Locally produced call-in and talk radio can also be ideal targets for your promotional efforts, particularly if you can offer an expert to field questions or provide insight on topics of interest.

2. Go grassroots.

In your efforts to canvas the traditional media outlets in a given market, don't forget to also investigate the opportunities that may exist to gain exposure among locally based online communities. In today's digital era, companies have unprecedented access to highly active, motivated and powerful influencers who can use social media platforms to disseminate information through their networks of friends and fans. A successful local social media-driven PR campaign begins with researching the popular websites and blogs that cater to that specific market as well as identifying individuals have a strong following on Facebook or Twitter and whose needs and interests overlap with your offering. Once you've pinpointed the sources that are the best fit in terms of both size and scope of their influence, that's when it's time to put trustcasting to work. You must strive to create authentic relationships with these individuals who hold a position of leadership within their tribes. You must also overcome the burden of proof that your company and your products are worthy of their recommendation. By giving you their endorsement, they're putting their reputation and their credibility on the line. Make it worth their while, and they'll make it worth yours in return. For example, when Just Focus Massage & Wellness in Charlotte, North Carolina, needed to build awareness for their new FocusForward wellness seminar series, they identified popular local lifestyle blogs and approached the owners with the opportunity to attend the series free of charge in exchange for sharing their experience with their readers. For a minimal investment, Just Focus was not only able to gain exposure to a highly targeted audience, they also reaped the benefits of the inherent trust that comes with the word-of-mouth recommendation of an established tribe leader.

3. Get to know the gatekeepers.

It's always a good idea to get to know the talk show hosts and reporters who cover topics of relevance to your products or services. However, it's important to keep in mind that many of these individuals have relatively little control over the stories they report. The real power players in local media are the editors (print), producers (radio) and assignment editors (television) who tell the writers, hosts and reporters where to be and what to talk about. If you can get to know these gatekeepers and how to get in front of them, you'll greatly improve your chances of gaining the coverage you seek.

4. Develop genuinely local angles and events.

It's tempting to distribute the same press release or pitch to every outlet on your hit list, especially if you think your story offers a broad-based appeal. However, going the extra mile to enhance your story with local interest will pay dividends in securing coverage in the markets that matter most to you. For example, let's say you're an HR consulting firm pitching a story on the rising costs of health care. This is a compelling story that might gain coverage simply on the merits of its timeliness. However, you could significantly boost your chances of catching the eye of a local newspaper editor simply by including a few relevant details like how local cost increases compare to the nationwide average or the contact information for one of your consultants who is based in that location and can offer expert insight on how these changes are affecting the job market in that city.

5. Don’t forget the fundamentals.

Give your press release the “Would I read it?” test. In addition to giving local media stories that offer local angles, local impact, local data and local people, you must also make sure you’re obeying the fundamental rules of good storytelling. Give your press release the “Would I read it?” test. Keep it simple and find hooks that tie into universal themes. Time your pitches to correspond with news cycles and seasons. Offer compelling visuals and expert spokespeople. Learn the audience demographics and the hot-button issues for each media outlet you plan to approach, and shape your story accordingly.

6. It’s all in the delivery.

Even the best pitch can fall flat it it’s not delivered in the correct manner and at the appropriate time. An important part of building relationships with media professionals is getting to know how and when they prefer to be contacted. Does he live and die by his Blackberry, or will your e-mail just collect dust in his inbox? Would she like to hear from you, or would a phone call be an annoyance? Timing is everything. You must make sure you’re on the radar when editorial decisions are being made and that you’re not trying to get attention when a reporter is up against a deadline. Make sure you’re on the radar when editorial decisions are being made. While every news organization works differently, there are a few rules of thumb that apply in most cases. Deadlines generally fall in the afternoon for daily print publications and three to four days ahead of publication for weeklies. Radio show producers typically have either weekly or bi-weekly meetings to plan upcoming topics and guests, while assignment editors for local television news broadcasts make their final determinations about where to dispatch camera crews and reporters on a daily basis, usually very early in the morning. It’s important as well to be realistic and bear in mind that there can and will be times that no matter how strong or well-timed your story idea might be, no one will bite based on prior commitments or breaking news. Simply accept this graciously and move on to the next pitch.

7. Don't underestimate the personal touch.

Always remember that there are people on the receiving end of your stories. "Media relations" can be a bit of a misleading term. It implies that you’re sending your press releases and pitches to some nameless, faceless news-generating machine. In fact, nothing could be further from the truth. Always remember that there are people on the receiving end of your stories, so put your best relationship-building skills to work. Call and introduce yourself to local writers, editors, bloggers and producers when you have nothing to actively pitch. If possible, invite them to lunch to discuss their needs and interests as well as how they prefer to receive information, and demonstrate consideration for those preferences when you contact them in the future with story ideas. Do keep in mind that many media outlets have strict policies regarding gifts, so be sure to know and play by the rules.

8. Give ‘em the goods.

Product placement can go a long way in getting free advertising for your company, especially in radio. If you run a bakery, deliver a tray of your most popular treats to the afternoon drive show personalities. Or if you own a day spa, invite the busy mom who hosts the morning show to enjoy a free day of pampering. While there are no guarantees, chances are good that you'll at least get an on-air thank you and maybe even a genuine, glowing review of your products or services. Additionally, radio and TV producers are always looking for prizes for promotional giveaways and sponsors for events. These opportunities tend to cost much less than traditional paid advertising on the same stations but deliver high-impact exposure and referrals.

Let the conquest begin.

Remember: if you want to win the war of PR, you have to win the battles being fought in your own backyard. By employing these time-tested tactics, you can help to ensure that your pitches will stand out from the crowd and establish your company as a trusted source for local media outlets in the markets where you do business.

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