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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Haiti Earthquake Relief: 10 Ways You Can Help Today

Day in and day out, the agents of Fame Foundry practice and preach the ways that technology, the Web and social media can help businesses survive in an ever-changing and highly competitive marketplace. Today, however, our hearts are with the victims of the earthquake in Haiti, and our focus has turned to the ways these same tools offer opportunities for all of us to come to the aid of the thousands of Haitians affected by this disaster. Within hours of the earthquake, nonprofits, charities and corporations sprang into action, establishing emergency relief funds to collect contributions online and via text message. Following is a list of trusted organizations that are using the power of the Internet and social media to drive an immediate response in the aftermath of devastation.

American Red Cross

Help the American Red Cross and its team of responders as they provide a wide range of support to victims, including food, water, field hospitals, transportation and sanitation services. Donate online and designate your gift to Haiti Relief and Development. You can also give $10 by texting "HAITI" to 90999, and your contribution will be added to your next phone bill. The Red Cross has already raised more than $10 million via mobile donations. In addition, you can make a donation through iTunes. Set denominations range from $5 to $200, which will be charged directly to your iTunes account, with 100 percent of proceeds going to the Red Cross.

CARE

CARE has established the Haiti Emergency Response Fund, with a goal of raising $10 million to support a multi-year response effort that will provide both immediate relief and long-term rehabilitation. You can help by making a donation on the CARE website or via Google's Support Disaster Relief in Haiti page using Google checkout.

Direct Relief International

Direct Relief is airlifting medications and medical supplies to Haiti, including antibiotics, sterilization products, bandages and other items needed to treat the injured. Help them by contributing online and selecting Emergency Relief – Haiti Earthquake or by texting GIVE10 to 20222 to make a one-time $10 donation.

Doctors Without Borders

Doctors Without Borders has mobilized a large emergency response in Haiti to provide surgery and basic care to as many victims as possible. Support their efforts by making a donation online.

Oxfam America

Oxfam is responding in areas hardest hit by the disaster with water, shelter, sanitation and public health services. Make a one-time $10 donation to Oxfam's Haiti Earthquake Response Fund by texting OXFAM to 25383, or visit their website to make a contribution of any amount.

Samaritan's Purse

Samaritan's Purse is sending cargo planes daily to Haiti carrying personnel, equipment, medicine, water filtration systems and other critically-needed relief supplies such as blankets, hygiene kits and materials for temporary shelter. Support their efforts by donating online.

UNICEF

UNICEF is deploying food, clean water, medical and sanitation supplies and temporary shelter to Jacmel and Port-au-Prince. They will also help protect children that have been separated from their families. You can help by making a donation on the UNICEF website or via Google's Support Disaster Relief in Haiti page using Google checkout.

World Vision

Donations to World Vision's Haiti Earthquake Relief Fund will help the organization rush emergency supplies, such as food, clean water, blankets, tents and more, to survivors of the catastrophe.

Yele Haiti

Yele Haiti is a grassroots organization founded by musician Wyclef Jean. Text YELE to 501501 to send $5 to the Yele Haiti Earthquake Fund. You can also make a donation of any amount online.

Donate today.

Fame Foundry encourages you to take few minutes of your time and donate today. Making a financial contribution is the best way to help in the wake of disaster. Cash can be transferred quickly, allowing relief organizations to obtain exactly what is needed while making the most efficient use of resources such as transportation, manpower and warehouse space that are scarce in times of crisis. Every contribution – no matter the amount – counts when need is greatest. As an added benefit to you, any cash donation made to the Haiti relief effort through February 28, 2010, is eligible for deduction on your 2009 tax return, thanks to special legislation passed by Congress. As always, be careful of solicitations you receive via e-mail, phone, Facebook and Twitter. When you are ready to make your contribution, it is always safest to do so directly through the charity’s authorized website. If you have concerns about any charitable organization, you can visit Charity Navigator or the Better Business Bureau’s Wise Giving Alliance to view ratings and evaluations.

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Let's Get Visual: Four Tips for Using Photos to Engage With Your Customers

It’s a mantra we’ve repeated time after time: content is king.

While that is unfailingly true, it’s important to remember that content is more than words on a page. There’s good reason for the saying “A picture is worth a thousand words.” Sometimes there’s simply no better way to drive home a message, evoke an emotional response or bring your brand to life than through the impact of an image.

Here’s how you can harness the power of photography to forge deeper relationships between your customers and your brand:

1. Just do it.

You’re not a professional photographer. You don’t have the thousands of dollars of equipment necessary to stage the types of perfectly polished shots you see on the pages of glossy magazines.

Don’t sweat it. A modern smartphone or digital camera is all you really need to get started. Worry less about technology and technicalities and more about the effect you want to achieve.

There’s no more important objective for today’s marketer than establishing bonds of trust between your brand and your customers. And there’s no easier, more efficient way to plant those seeds of trust than by pulling the curtain back and giving them a peek behind the scenes.

Tiffany & Co. is a high-end brand with high-dollar price tags to match. The company uses its Instagram account to share photos of its inner working with the world, showing that there’s more inside that classic turquoise box than merely a status symbol.

2. Let your customers do the snapping.

These days, everyone walks around with a camera in their pocket. As such, mobile photo sharing has become an integral part of today’s culture of the Web.

Let this trend work in your favor by putting your customers behind the lens generating great content that shines a spotlight on both your brand and the people who love it.

Warby Parker, an eyewear company based in New York City, invited their fans and customers to join them on a photo adventure through NYC called “Walk of the Town.” Over 100 fans participated, resulting in nearly 700 photos generated and tagged with #warbywalk.

This is a fantastic marketing concept on two levels. First, what cooler way to showcase the company’s unique, funky frames than against the backdrop of one of the world’s most iconic cities for style and fashion? Second, consider the residual PR value that results from each of these 100 fans sharing their photos with their own followers and Facebook friends, who also likely commented on and shared them with their own circles in turn.

3. Branch out.

When it comes to using social media to connect with customers, most companies focus on the big four: Facebook, Twitter, Google+ and LinkedIn. But there are a number of niche social sites that offer excellent opportunities to use images to gain exposure to both your existing customer base and new prospects alike.

For example, in addition to Instagram, Warby Parker is also active on Pinterest. As its name implies, Pinterest is a pinboard-style social photo sharing website. Users “pin” photos on boards they self-classify by category, allowing them to keep track of anything and everything they find appealing, from recipes to fashion to home decor ideas and more. The social aspect comes into play when pinners follow others users and can like, comment on or “repin” images to their own boards.

People of the Second Chance, a faith-based nonprofit, uses Pinterest as a vehicle to boost awareness of their organization, advocate for their mission of spreading love and grace and drive donations. They feature products for sale in their online store as well as inspirational images that represent core elements of their mission.

By being willing to experiment with these smaller niche networks like Pinterest and Instagram, you can gain exposure to your existing customers in new ways and catch the eye of new customers, too. It all begins with a little daring and a little creativity.

4. Think before you snap, but don’t over-think it.

In the age of social media, once you send something out into the world, it’s really out of your hands. So before you get too snap-happy, take a second look at your photos and make sure you’re sending the message you intend so you don’t accidentally invoke a negative backlash.

That being said, don’t be paralyzed by aspirations of perfection, either. There’s no better way to let the personality of your brand shine than through quirky, unique, cool, artsy or clever images.

There’s a reason why Facebook’s EdgeRank algorithm puts such a high value on posts that include pictures: People love looking at photos. At the end of the day, it’s just that simple.

So have fun, be creative and take a few risks. After all, one great photo really can do the work of a thousand words in conveying what it is that your brand stands for.

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