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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Website Design for a Multi-Device World

The array of devices through which people interact with online content is larger and more diverse today than ever. To underscore the point, try this little exercise – take a look around your house and find every device you own that can access the Web. For me, the list looks like this:

• Desktop computer
• Laptop computer
• Netbook computer
• iPod touch (x2, each a different generation)
• iPad
• Kindle (x2, each a different version)
• Android phone (HTC EVO)
• Gaming system (wii)

Each of these devices has a different screen size, and the experience of accessing web content is different on each.

That’s why, if you want to ensure that your website will provide an experience that truly engages your audience, it must be designed specifically for this multi-device world in which we all live today.

The multi-device user

The multi-device world is populated by multi-device users. While a staggering variety of devices are, indeed, being used to access web content today, it’s also important to remember that the same user is often using multiple different devices to access your website – and they expect that site to work well regardless of which device they happen to be using at the time.

To illustrate this point, let’s consider the scenario of an average everyday activity that occurs on the Web: mom planning the family vacation.

As she starts her day, she does a quick search on her iPhone and starts to peruse a few sites that strike her interest as she enjoys her morning coffee. Later she takes advantage of her lunch break to continue her research. She visits many of the same websites as she did before, this time reading more and delving deeper each one now that she’s seated comfortably in her chair behind her desk and has more screen real estate to work with. That evening she shares her findings with the family, flipping between sites on her iPad as they unwind on the couch. In each instance, she visits many of the same sites, and she expects them to perform just as well no matter which device she has in front of her.

More than just mobile phones

You have likely been introduced to the concept of “mobile websites” and have been told that your company needs one, but as the scenario above illustrates, the multi-device landscape encompasses much more than just large desktop monitors and small handheld phones. There are many devices and screen sizes in between, and your website must be equipped to work well on all of them. That’s why a separate “mobile-only” site is not the best way to serve the needs of the multi-device user.

A mobile-only solution relies on technology that detects when your website is being accessed via mobile phone and redirects the user to a completely separate version of your site – one designed specifically for the typical screen size of a smartphone. These mobile websites often feature less content and fewer features in order to minimize both navigational complexity and load time.

The problem with the mobile-only approach is that it only addresses the needs of one specific type of device. Large desktop computers get the “normal” browsing experience while mobile phones get a smaller, more streamlined version.

But what about the multitude of devices that fall between these two extremes? How do we serve them effectively?

Going responsive

There are a number of deficiencies with a mobile-only approach, but the inability to serve today’s broad array of devices is the most detrimental.

If the mobile version of your website offers less content and fewer features than your desktop site, you run the risk that a user will be looking for content that you have decided to eliminate from your slimmed-down mobile site. This is a problem, because when a user comes to your site looking for something specific and they can’t find it, their natural response is to go looking for it somewhere else – which usually means your competitor’s site.

After all the effort your put into attracting users to your website, anything that drives them away – like a user experience that is not optimized for the device they are using – runs counterproductive to your goals. So how can you embrace this multi-device world and ensure that your website can succeed in it? It’s time to go responsive.

What is responsive web design?

Responsive web design is an approach that has gained much favor and momentum in the web industry in the past few years – in part because it offers a solution to many of the limitations that mobile-only websites face.

A responsive website is one that intelligently rearranges its layout based on the size of the user’s screen. For instance, let’s say your site normally presents its content in three columns. The smaller a screen gets in size, the more problematic this layout can become, as the columns become so narrow that their content is unreadable and their buttons are un-pressable.

With responsive design, when a visitor is using a tablet in portrait mode or a laptop with a very small screen, those three columns reflow into a two-column layout that is better suited to the dimensions of those screens. For handheld phones, the design shifts to a single column of content with text and links that are large enough to be easily read and touched even on a very small screen. In this way, you have one website that “responds” to the multi-device user, adjusting its layout based on the particular device they are using – hence the name responsive design.

The benefits of responsive design

Efficient maintenance

It’s hard enough to keep one website updated with timely, relevant content; updating content across multiple websites is even more challenging.

When you go the mobile-only route, you end up with multiple websites to maintain. With a responsive approach, however, you have only a single website to manage. This makes it easier to keep your content consistent, because anytime you make a change to your website, that change is seen by all visitors regardless of the device they are using.

Zero gaps

As we saw earlier, supporting the multi-device user means being able to accommodate more than just large desktop screens and small handheld devices.

A responsive web design approach does indeed address these two extremes, but it also fills all the gaps in between, adapting its layout to perform seamlessly on the widest range of screen sizes and devices possible. This is especially helpful for those users that jump from device to device, as described earlier, because the site will adjust to their needs and present them with a consistently good experience regardless of their choice of device.

Adaptability

Because a responsive website design will reflow based on the screen being used to access it, your website will be equipped to support not only those devices that are popular today, but also those that we don’t even know about yet.

As new devices are released – some of which will undoubtedly also introduce new screen sizes or resolutions to the market – you can rest assured that your responsive site will do its best to present an optimal experience by “responding” to whatever type of screen it might be presented with.

Go big

While much attention is paid to how your website will handle smaller screens such as those on smartphones, there is another end of the spectrum to consider: large devices.

A responsive website can not only reflow its layout to present an optimal experience for small screens, but it can also do the same for very large screens. Large screens are often neglected in website design because even sites that are engineered for desktop monitors are not built to suit many of today’s widescreen displays. However, a responsive approach can allow your site to stretch its legs a bit in order to better fit bigger screens, making use of the additional space to better communicate your organization’s message.

Cost effectiveness

Since responsive design means you need only a single website, deploying this approach can often be much more cost effective than developing separate websites for different devices. This cost effectiveness is compounded further over time as you save the added expense of having to update, maintain and host separate sites for desktops, mobile phones, tablets, etc.

The challenges of responsive design

While there are a number of advantages to responsive design, there are a few challenges as well.

First, responsive design is not a feature that you can simply tack on to your existing website. To be done right, a responsive approach requires you to redesign and redevelop your site from the ground up so that responsive logic can be built into every aspect.

Another challenge of responsive design is that, if not done properly, it can result in loss of performance for users on devices where bandwidth is a concern. Often the small-screen version of a responsive design does away with some of the elements that exist solely for aesthetic purposes (large background images, for example). When such elements are “turned off” for smaller devices, if not configured properly, they might still be sent to the device anyway, meaning those devices are required to download excessive and completely unnecessary data that negatively impacts performance. To avoid this pitfall, make sure you’re working with a team that’s experienced in responsive design and has the technical expertise necessary to ensure that your site tailors both its layout and performance to deliver an optimal experience for any device.

Embracing the multi-device world

Traffic to websites from devices other than desktop computers has risen dramatically in the past few years, and industry analysts predict that number will continue to soar in the coming years. Looking at the hundreds of websites that I help maintain and manage, I am seeing an average of about 30 to 35 percent of all traffic coming from mobile devices of one kind or another and even a few sites where mobile traffic is nearing 50 percent.

As we head toward a future where more than half of our website traffic will come from visitors not using a traditional desktop computer, now is the time to ensure that your website is armed to compete effectively in a multi-device world.

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Keep it Social

Human communication is complex. The words that you use, the tone and volume of your voice as well as your body language and facial expressions all play a role in how your message is received by those that you are communicating with. A poorly chosen phrase or a simple misstep in your body language can steer a conversation into unexpected, and unintended, territory. In an age when so much of our communication has now become digital, the challenges have become even greater. Many of the social cues present in face-to-face interactions are all but impossible to convey. Body language and facial expressions are a non‐factor, and tone is as hard to express as it is easy to misinterpret. As a result, when communicating online, achieving clear understanding of meaning and intention comes down to the words that you use and how you use them.

Social communication

In today’s Digital Age, social media plays a pivotal role in the way companies communicate with their customers. But with the proliferation of social platforms – from standard bearers like Facebook, Twitter, LinkedIn and Google+ to niche sites like Pinterest, Instagram, Flickr and Foursquare – it’s easy to become overwhelmed by the task of managing your brand’s social presence. As a result, it’s tempting to find ways to automate this communication in order to save time and resources. This is exactly the solution that I discussed recently with a vendor who was promoting a platform that would automatically broadcast updates to dozens of social media sites each time a blog post, news release or similar content was published to our website. Rather than spending the time to post this content to each of our social profiles individually, this tool would do it all for us in one quick shot. While this may sound like a dream come true, the problem is that it is a blunt instrument-style approach to communication: every profile gets exactly the same update at the same time. But the reality is that not all social media sites are the same, and neither are the audiences that use them. The way you communicate with connections on LinkedIn should differ from how you do so on Facebook. Similarly, the content you’d publish on photo-sharing sites like Instagram, Pinterest or Flickr is completely different from the updates you’d post to a micro‐blogging site like Twitter. Each site has a syntax specific to that particular social media platform, and ignoring that syntax greatly compromises the effectiveness your communication. You absolutely have something to lose – the opportunity to connect with your audience in a meaningful way. Some might argue that since the posts are automated, you’ve got nothing to lose by trying this approach, but that is incorrect. You absolutely have something to lose – the opportunity to connect with your audience in a meaningful way. And that lost opportunity could cost you dearly if the tailored messages of your competitors reach your potential customers where your robotic, automated communications miss the mark or, even worse, alienate your followers. In the end, while automation will save you time, it does so by taking away your ability to customize your message for specific audiences and platforms.

Be social, be specific

Stepping back from social media for a moment, think about human communication in general. We change the way that we speak and the messages that we send depending on who our audience is. You speak to your friends differently than you speak to your family. You communicate with co‐workers and peers differently than with clients and customers. Effective interpersonal communication requires an understanding of how best to convey your desired message to those you are speaking with. This is not something you could ever automate; it requires a human touch. When it comes to communicating via social media, the medium and the methods may be different, but the basic underlying principal remains the same: to be effective, your message must be tailored to the audience that will receive it. Although the channels themselves may be digital, you can’t eliminate the human element. For an example of how different messages should be tailored to different platforms – and why not every update is right for every social media profile you manage – let’s take a look at how my company shares our news and announcements. When we acquire a new certification or receive recognition that’s worthy of a press release, we promote that accomplishment on sites like Linkedin, Twitter and Facebook where followers naturally expect to see updates about what’s going on with our company. In each case, we use the specific syntax and conventions of that site – such as hashtags on Twitter – to make sure those updates are in a format that audiences are familiar with and can easily find. We do not, however, share content like this on sites like Flickr or dribbble because those platforms are visual in nature, and these particular announcements have no meaningful visual component to them. If instead we are publishing an update about a new website project that we are launching for a client, we will again post that announcement to Linkedin, Twitter and Facebook, but we will also add updates to social media sites that are more visual in nature because, for this update, we do have good image-based content (i.e., a screenshot of the new design) that can accompany the post. Each time we post an update to social media, we consider the nature of the content to decide which sites are most appropriate for those updates. Additionally, each social media post that we make uses the specific syntax of that social media platform.

Forget trying to do it all; focus on doing it right

The concept of automating your social media communication is only an attractive option if you are trying to publish content to so many social media sites that doing so has become unmanageable drain on your time. If this is the case, the solution isn’t to find a way to automate the work; it’s to streamline your activities to include only those sites that are a good fit for your needs. Trying to use every single social media site available to post as much content as possible is not a sound strategy. Why? Because social media platforms are overrun with self-promotional content that is irrelevant to audiences, and users of these platforms are quickly becoming conditioned to tune out this static. Sending automated updates to dozens of sites at once, without ever considering whether or not those updates are appropriate for those sites, just adds to this problem. Is that how you want your company’s news and announcements to be perceived – as part of the useless glut of social media updates? So if taking the time to individually update dozens of social media profiles for your company is not the answer, and automating those updates is also a no‐go, then how can you use social media to effectively communicate your organization’s message? The first step is to speak with a professional team that can help you establish an appropriate social media strategy – one that suits your brand and fits into your overall marketing plan. That team can help you identify which social media sites your audience is actually using and what types of updates you should send to each platform. They can also help you develop a rhythm for social media updates – one that you will be comfortable executing on a regular basis. By identifying the right sites for your organization and understanding how to use those sites effectively, you can capitalize on the power of social media to grow your brand and your business.

Case in point: KLR

KLR is a large accounting and business consulting firm headquartered in New England. In developing their social media strategy, they realized that while their target audience does likely use Facebook (after all, who doesn’t at this point?), they do not use that platform to search for the types of high‐end accounting and business planning services that the firm offers. As a result, promoting their services to that audience on that platform would be inappropriate, and their content would fall on deaf ears. Instead, KLR uses sites like LinkedIn and Twitter, where they have built a network of business connections that recognize them as thought leaders in their industry, to promote their services. Does this mean they turned away from Facebook altogether? Not at all; rather, they determined a more effective use for the platform: communicating with current and prospective employees, including interns whom they were looking to attract to the firm. Recognizing that college-age students would absolutely be using Facebook to research potential employers and positions, KLR decided to use their Facebook profile to showcase their company culture and their standing as a “Best Place to Work” for eight years running. By evaluating different social media sites, which segments of their audience (if any) are using those sites, and how they can most effectively convey their messages across that landscape, KLR has made the most out of the time they spend managing their social media presence.

A final word

Social media can be invaluable in its role as an open line of communication between your company and its customers. However, it can also be one of the surest ways to waste time and resources if you don’t have the right strategy in place. Make sure you’re getting the most from your efforts by contacting a digital marketing specialist to discuss your company’s needs. Together, you’ll be able to define your company’s voice and bring a human touch to your social media strategy.

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