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.

Taming the Word of Mouth Monster

The customer's word is king.

In today’s culture of the Web, nothing holds greater sway than word of mouth. If want to grow your business, you need the help of your customers and fans.

Let’s look at an example:

The first clip is from SouthEnd Home Improvement's website; the second is a review that one of their customers posted on their Google Places page.

Both essentially say the same thing, speaking to the superior quality of the workmanship and customer service provided by the company. Yet Josh's review has probably motivated far more prospective clients to pick up the phone than the company's own site.

Why is this the case? After all, we don’t know Josh, and he hasn’t done anything to earn our trust.

However, we trust him implicitly because he is not affiliated with the company and thus (at least theoretically) not motivated by a sales agenda or self-interest.

Is it fair? Maybe not. But if you're going to compete successfully in today's consumer-driven marketplace, that's the reality you must live in. In this post-mass media era, you simply cannot talk frequently and loudly enough about your own products and services to muscle your way to the top.

Old marketing has been dethroned.

Marketing was a much simpler proposition back in the days when communication flowed in one direction from companies to customers.

You could buy exposure in the print, radio and TV media outlets of your choosing, and you could control the message down to the last detail. Your investment could be mapped out neatly on schedules and calendars, and you had access to all kinds of reassuring data like reach, frequency and cost per impression. Sign a contract, write a check, hand over your perfectly polished advertisements and wait for the phone to ring.

Traditional advertising is still there for the taking. The problem is that your customers aren’t buying into it anymore. There's simply too much information available to them from too many different channels. All the beautifully crafted ads your budget can buy can't save you if your Google Places page is littered with scathing reviews from dissatisfied customers.

Today's marketplace is ruled by the customer.

Companies today have inherited the burden of mistrust created by generations of brands before them that thrived on the shallow messages and misleading claims of traditional advertising.

Today's consumers view themselves as a band of brothers united behind the cause of holding companies accountable for providing quality products and services and making good on their promises. It's an "us against them" mentality, and you're on the wrong side of the fight until you prove otherwise.

You can't hide the truth from your customers any longer. A disgruntled customer 10 years ago was a mild annoyance. Customer service people could silence the complainer and wash their hands of the matter. It required a screw-up of much larger proportions for a company's bad practices to come to light in the traditional media.

However, one unhappy customer who voices their discontent on Facebook or Twitter has the power to cost you hundreds of potential sales. If something goes wrong and you're not pulling out all the stops to make things right, you're taking a big gamble with your brand's reputation.

In a consumer-driven marketplace, no brand is untouchable. No company is too big to be brought down by their customer.

Don't slay the dragon – make it your friend.

Word of mouth marketing is a fearful proposition for most businesses because it doesn't conform neatly to the metrics and regulations that drive the corporate world.

It's a lot like lightning in that there's no way to predict when and where it might strike. As such it's nearly impossible to capture on record and quantify. However, when it does touch down, there's no denying the power of it's impact.

So how do you harness this inherently anti-corporate force and put it to work for you in the real day-in, day-out, nitty-gritty world of business?

Treat every customer like Oprah.

While word of mouth is not a new concept by any stretch of the imagination, the advent of the digital age and social media have magnified its importance by putting a megaphone in the hands of every customer.

As a result, the customer service landscape is littered with potential PR landmines because you can't always tell who holds the biggest megaphone. Aggravate the wrong customer, and your reputation is toast.

Sure you can tell which members of your online community have the most Facebook friends or Twitter followers or blog subscribers. But things get messy when you encounter these people in the real world. They don't have their subscriber count tattooed on their forehead, and they don't introduce themselves with their Twitter handle.

So what do you do? You must treat every customer as though they have an Oprah-like ability to exert their influence.

Tread carefully, and make sure you demonstrate to each and every customer that you respect them and that their opinions matter. Maybe 99 out of 100 of them won't talk about you anyway, but you had better make sure that the one who speaks up is a happy camper.

Underpromise and overdeliver.

When you are in front of a prospect and you have the opportunity to make a sale, it's hard to force yourself to leave any cards on the table. You want to talk up every feature and every benefit in the most superlative degree.

However, if that's what it takes to close the deal, you'd better be prepared not only to make good on every claim but also to go above and beyond the call of duty.

Your sales pitch is your customer's baseline expectation. If you do only what you say, they'll thank you for a job well done and move on.

But if you go the extra mile and do more than promised, then you'll get them talking.

Never make a sale at the cost of your reputation.

You want to hear the cash register ring as much and as often as possible. However, selling your products to a customer when you know they're not actually a good fit for that person's 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 sale will end up costing your company and your brand's reputation dearly.

Make every impression count.

Generally speaking, your customers have short-term memories. Your relationship with them is only as good as your last encounter, and your brand’s reputation lives and dies in the moment of interaction.

Every phone call, every email, every visit to your store counts. That means you had better make sure that every person your customers come into contact with understands the importance of every touchpoint.

Customers are allowed to have bad days, to be unpleasant, even to be irrational. Customer service people are not.

Be remarkable – literally.

Your customers are not professional spokespeople. Promoting your company is not anywhere near the top of their agenda.

To get them talking about you, you must overcome the inertia of their natural tendency to talk about pretty much anything other than your company.

How can you do that? You must surprise and delight them. You must offer them something that's truly new, innovative and exciting. Your products or services must make their lives easier or better in ways that are meaningful and significant.

If you want buzz around your restaurant, you have to make it buzzworthy. Everything from the food to the service to the ambiance must offer something your customers can't get anywhere else in town.

Reinvent the wheel if you have to. When your customers find something so great that it ignites their passion, they won’t be able to keep it to themselves.

Feed them a steady diet of good content.

Your customers don't go through their lives talking up the products and services they use like they just stepped out of a commercial from the 1950s.

However, everyone loves a hot tip. Mary who enjoys working in her yard doesn't call up her girlfriend to have a heart-to-heart conversation about fertilizer. However, if she finds a great video on the Scotts website about how to keep her lawn lush and green all summer long, you'd better believe she'll email a link to the other members of her gardening club and retweet it for the benefit of the gardening enthusiasts who follow her.

With the simple act of sharing the video link, Mary's given Scotts her word of mouth endorsement as a trusted expert.

Content marketing works. Period.

Get the conversation started.

You can't control what your customers say about you. In fact, you can't force them to say anything about you at all. What you can do, however, is get the conversation started.

Social media has removed the communication barriers between you and your customers. Use that to your advantage by identifying the motivations that drive your fans to act and giving them ways to carry your torch that cater to their passions and personalities.

Ask for their input. Recognize their good ideas. Provide good information and inspiration that they'll want to pass along to their own networks. Get creative and make it fun to be your fan so they'll invite others to join the party.

No one ever said it would be easy.

Building good word-of-mouth marketing around your brand is a slow, arduous climb of earning the trust of your customers and motivating them to act on your behalf.

There are no shortcuts here. If you want good word of mouth, you must earn it the old-fashioned way through hard work and honest communication. You must deliver top quality products and services that provide exceptional value. You must develop authentic relationships with your customers and be attentive and responsive to their needs. If something goes wrong, you must go above and beyond to set things right. In all things, demonstrating genuine respect for your customers is paramount.

However, all of this hard work will not go unrewarded. The payoff for your investment of time and resources is getting and keeping the best kind of customers — true, dedicated fans that become advocates for your brand.

Thanks to the power of social media, when your evangelists start talking, they’re not just going to tell one person, they’re going to broadcast it to everyone in their social circles on the Web – via Facebook, Twitter, LinkedIn, their blog, etc. As a result, you’ll not only gain exposure to potential new customers, you’ll have an inherent foundation of trust by association.

The ripple effect that occurs as the good word of mouth around your brand continues to spread virally from one person’s network to another will do far more to sustain and propel the growth of your business in today’s economy than any form of paid advertisement that your money could buy.

Five Seductive Pick-Up Lines That Leave Your Visitors Wanting More

For many of your website’s visitors, the page that will greet them when they first arrive on the site is your homepage – and the section of your homepage that is likely to draw their attention upon arrival is the billboard.

Similar to roadside billboards that are meant to attract the attention of passing motorists and promote some company or service, homepage billboards are meant to grab the attention of a website visitor, welcome them to the site and convey some important message to them, and then send them forward to other content or actions within that site.

Take a look at just about any website today and you will see this “billboard” area. It is typically presented as a large, visually rich display that features striking imagery and/or powerful typography, important messages, and a subsequent call-to-action. Additionally, these messages can also be animated in some way to add an element of motion to the site and to allow you to use the billboard to display more than on message on your homepage.

While the purpose of the billboard is nearly identical on all websites, the way this section is executed varies from site to site. In this article, we will take a look at a few popular approaches to the website billboard.

1. Allow me to introduce myself.

Probably the most common billboard approach is what I call the “here’s who we are and what we do” technique. In these examples, the billboard message is all about your company.

Similar to an elevator pitch, this billboard approach quickly introduces your company and summarizes what you do. With attention spans online being as short as they are (many experts say that website visitors will scan a page and make a decision of what to do next, including leaving the site altogether, in as little as 3 seconds), this approach can be an effective way to get your message or value proposition across in a succinct fashion. If that message resonates with your visitors, you then have an opportunity to continue the conversation by driving them deeper into the website to learn more about what you have teased in the billboard message. You could provide links to read more about your services, products, or even just the company or organization itself.

A few examples of the “here’s who we are and what we do” method are below:

Studio1 Architects

This site uses very large images of the firm’s work (the images animate and multiple photos fade in and out over time), coupled with an opening message that explains what they do and a link to view their portfolio: http://studio1architects.com

AF Technology Solutions

This site’s concise billboard message summarizes what the company does (business and technology solutions) and who their audience is (small to medium businesses) and includes a link to learn more about their services: http://af-techsolutions.com

Raw Seafoods

This company uses their billboard to highlight their value proposition and then link visitors over to a page detailing what sets their products and services apart from their competition: http://www.rawseafoods.com

2. What can I do for you?

While the “here’s who we are and what we do” approach is the most common way to utilize a billboard’s messaging, there is a downside to that tactic – it focuses solely on the company or organization and not on the audience they serve. As a variation to that approach, you can consider the “how may we help you?” method.

With the “how may we help you?” technique, the messaging focuses on the website’s audience, not the company that owns the website. Instead of being about that company, their products, or services, it instead looks to its users and illustrates about how that company can help them. The focus turns from “us” to “you”.

A few examples of the “how may we help you?” variation are below:

2-1-1 RI

This not-for-profit site run by the United Way does not use any imagery in its billboard. It instead turns to bold colors and large typography to display its message – “Find Help Now”. The billboard does not explain what the organization does (that content is below the billboard). Instead, the focus here is on the user and the action is all about getting them the help they need by answering two simple questions (what do you need and where do you need it) or by clicking on a popular category: http://www.211ri.org

RIHCA

This site uses animated photos alongside a large message to attract their audience’s attention and address their main need – “Do you need healthcare?” The call to action is a simple and obvious button to “Get Started”: http://www.rihca.org

3. Tell me more about yourself.

Similar to the “how may we help you?” method, the “tell us who you are” approach speaks directly to your audience, but it does so in such a way so that it can ask that audience a specific question about who that audience is. The best example of this is a website that requires visitors to self-segment themselves.

Most websites have more than one audience and oftentimes there is different content on your website that is intended for these specific audiences. Having visitors “choose their path” by self-segmenting early on is one way you can drive them to content that is relevant for them, without worrying that they will have to get through pages that may not be necessary for them to see.

A few examples of self-segmentation on websites are below:

Traveler Beer Company

Any beer or liquor company will present this “Are You 21+?” message on their opening page to require that visitors confirm that they are of drinking age before entering the site. This is a form of self-segmentation: http://travelerbeer.com

Cosmed Group

This company knows that their customers fall into one of two groups – those looking for the pasteurization services that they offer or those who want to buy the equipment to do it themselves. Therefore, they present these two paths (looking for services vs. looking for products) in their billboard so that visitors can self-segment based on their needs: http://cosmedgroup.com

4. Let’s get personal.

Taking self-segmentation a step further are sites that already know who you are. These are sites that you subscribe to or have a user account on. Based on your preference or previous activity on the site, the content that is displayed is deemed to be most relevant to your needs.

The most prominent example of this method is Amazon.com. Visit the Amazon homepage and, as long as you are logged in, the products that you see will be based on your previous browsing or purchase history.

Another good example would be eBay. That site will show you results from searches you have conducted in the past in an attempt to present you with new auction items that you would be interested in.

Many news sites work in this way as well. Content that is most relevant for you, based on your preferences or geographic location, will be presented to you up front to try to best tailor your site experience to you.

One note here is that in these examples, Amazon, eBay, and the typical news site, do not present this information in a true, billboard-style fashion - but the same principal of filtering content based on a users’ preference or past behaviors on the site could also be applied to a billboard area.

5. What’s new?

The final approach we will look at in this article is the “latest news and announcements” method. This approach ensures that your site’s billboard is continually updated with fresh content. It displays current promotions, latest news, or important announcements (and usually a link to read more about that content) instead of general marketing messages.
The value of this approach is in the aforementioned freshness it brings to your content and your display. The downside is that it requires you to be publishing that new content on a pretty regular basis and you need to make a commitment to doing so.

If your organization is already producing relevant press releases or running promotions, then this method may be a great fit for you.

A few examples of this method are below:

Fame Foundry

This approach is exactly what we do on our homepage. Each month, our latest articles are highlighted in our animated billboard.

Honey Dew Donuts

Current promotions and seasonal menu items are featured in this site’s animated billboard. Those messages align with other marketing the company is doing - including print, radio, and television, to ensure that the latest content is always presented front and center: http://honeydewdonuts.com

Marvel

Upcoming films, new comics, and other announcements are the focus of Marvel’s homepage billboard: http://marvel.com

Mix and match

These billboard techniques are not mutually exclusive – you can mix and match them as you see fit. For instance, you may highlight a current promotion or announcement in your billboard, but then allow it to animate to a second and third and fourth, etc. message that is more generic – like the “here’s who we are and what we do” approach.

With so much space on your homepage being given over to the billboard’s display and understanding that the use of striking images, large typography, and animated messages will undoubtedly draw the focus of your visitors, it is important to make sure that the approach you choose for your billboard is the right choice for your business. Consult with your web design and development team to determine which approach, or which combination of different approaches, will best fit your overall goals and needs.