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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An Oasis of Personality in the Desert of Website Design

It’s a question every business – no matter the industry or niche – must answer: How do you differentiate yourself from the competition? You can try to do it with your products or your prices, but anyone can come along with a similar product or service offering, and fighting a battle based solely on price almost always a losing proposition. Differentiating yourself through the level of customer service you provide is a great idea, but the trick is that you have to draw someone in before you can win them over with your stellar service. So then the question remains: how do you stand apart from the crowd and draw positive attention to your business? The reality is that all of the factors mentioned above – products, prices and client service – do play a role both in how you attract new customers and how you keep your existing customer base loyal. Another differentiator that’s often overlooked, however, is your company’s personality – all of those intangible factors that are encompassed in your brand (think Apple vs. Microsoft) – and your website is the perfect platform to showcase that personality.

Nothing to fear

In the buttoned-up, suit-and-tie corporate world, the idea of showing personality can be a scary proposition, and many companies are afraid to try it for fear of alienating customers. Present a personality that’s too casual and lighthearted, and you risk turning away clients looking for a more serious tone. Present a very conservative, serious face, and you may come across as unfriendly and drive off those seeking a more personal approach. This fear of alienating segments of your potential audience is why many companies seek the safety of the middle ground and institute a neutral, inoffensive design that they believe will appeal to everyone. What this really does, however, is cause both the company and their website to be perceived as unremarkable and unmemorable. By trying to appeal to everyone, they appeal to no one in particular. As scary as it may seem, the risks of letting your company’s personality shine on your website are far outweighed by the benefits of creating a memorable experience for your customers.

Hey – I remember you!

When it comes to growing and promoting your business, blending in is never the right strategy. Make your website look and act just like everyone else’s, and you may not alienate anyone, but you won’t stick out in anyone’s mind, either. Customers (and potential customers) who come to your site visit hundreds of other websites in any given week. The vast majority of them are driven by features and functionality to the point that if you took away the company logo, one would hardly be distinguishable from the next. On the other hand, if your website offers something different and unexpected – whether in its imagery and visual design or in the tone and approach of the content – it will be like an oasis in the desert, a welcome change from the boring and bland. When it’s time to make a purchase decision, who will they remember – the ones that did the same thing as everyone else or the one that marched to their own beat and had a unique voice? Of course, your site and your company need to deliver the services and value that your audience is looking for, but making a powerful first impression upon your visitors and getting them to remember you is step one in winning their business. This approach can also help filter out clients that are right from those that may not be a good fit for your company to work with.

Finding the right fit

Even though your services may be applicable to a large and diverse audience, it’s important to ask yourself what your ideal customer looks like. An ideal customer is one that not only has a need for your products or services but whose preferences for how those products or services are delivered mesh well with your organization. How can you expect to find that right fit if you’re not being “you”? Let’s say your company is quirky and fun. If you do not embrace this personality in your marketing and on your website, you may appeal to a broader audience, but you will also attract potential clients who ultimately do not want to work with a company like yours. In those cases, you will either lose their business when they realize you are not the type of organization they are seeking, or even worse, they will continue on with you but the relationship will be strained because your company is trying to be something they are not. Instead of hoping to court everyone, try being yourself to attract customers that want to work with a company like yours. In the end, those engagements will be better suited, and often more profitable, for all parties involved.

Don't forget your internal audience

Maintaining a consistent personality between your website and how the company itself actually operates will also benefit your internal audience – that is, your employees. By being true your company’s personality and being willing to show that personality to the world, you prove to your employees that you are committed to, and unashamed of, the culture you have created. By doing this, your employees will feel more connected to the company and will enjoy a sense of pride in the organization that they’re part of. This allows them to be comfortable in speaking about the company without fear that they will saying something contrary to what the “marketing engine” is putting out there. By being true to your personality, you encourage every employee to become an advocate for your message in a way that is genuine and real.

Website designs with personality: A gallery

To show just how effective designing with personality can be, let’s take a look at a few examples of companies that have truly embraced these principles and wear their brand’s personality on their sleeves (or screens, as the case may be).

Northfield Savings Bank

Banking websites are probably the last ones you’d associate with personality or fun, but the site for Northfield Savings Bank uses both expertly on their site to set their institution apart. From their playful “flying pig” logo to their story about those flying pigs, the website demonstrates unequivocally that this is no ordinary bank. For a customer who’s looking for a personal touch in their local bank – as opposed to a massive, faceless global institution – this site is surely a breath of fresh air.

Wishbone

Non‐profit organizations are committed to their missions. This is good, but too often that dedication and seriousness translates into a boring, and therefore unmemorable, approach on their website. Wishbone is an organization that sends “at-risk high school students to after school and summer programs.” The website certainly shows their passion for that mission, but it does so through the use of real photos of and personal stories from the students as well as fun animations that illustrate their process, which creates a very enjoyable, and ultimately very memorable, user experience.

Dollar Shave Club

Normally, a “memorable” shaving experience is a bad thing, because it likely means something went horribly wrong. But DollarShaveClub.com offers a very memorable (and good) experience, welcoming new visitors with a wonderful and humorous video and carrying this playful approach throughout their entire site. Rather than spending big bucks on endorsements from pro athletes or celebrities and presenting a high‐tech feel like their competitors do, Dollar Shave Club opts for a very real-world feel with textures of wood and torn paper. Compare those earthy textures and their comedic tone with Gillette, for example, and you’ll see just how starkly different this approach is. In this case, doing something different has not only created a memorable experience, but one that also promotes sharing. Dozens of friends and colleagues sent me the link to Dollar Shave Club’s website after it went viral. So while this fun and kitschy approach may not be right for everyone who buys razors, it has captured the attention of many who not only appreciate its quirkiness but also happily share their love of the brand with others in their social circles. Need more proof? Just compare the two companies’ videos on YouTube. As of this writing, Dollar Shave Club’s "Our Blades Are F***ing Great" video is approaching 5 million views while Gillette’s “Masters of Style” video, featuring celebrities Andre 3000, Adrien Brody and Gale Garcia Bernal, has yet to cross the quarter-million mark.

MailChimp

MailChimp’s lead user experience designer Aarron Walter has been touting the benefits of adding emotion and personality to websites for some time through his writing and speaking engagements, and that approach is very evident throughout the entire experience of MailChimp.com. Compare their site, which is loaded with unique personality, to other email marketing providers such as Constant Contact, Emma or VerticalResponse, and you will see the difference right away. Those email marketing providers, and many others you will find, all employ a very similar approach on their website – one that quickly becomes unexciting and forgettable. Go to the MailChimp website, however, and the giant illustration of company mascot Freddie von Chimpenheimer IV is one that’s sure to make a lasting impression. Delve still deeper into the site, and into their service, and you will discover just how unique MailChimp is – because anyone that can make email marketing enjoyable is definitely doing something right!

Run For Your Lives

My father and my wife are both runners, so I’ve seen my share of websites for road races. When I heard about the Run For Your Lives Race, which is part running race and part obstacle course – all while hordes of mindless zombies chase after you to try to turn you into one of them – I knew I had to check out their website. The race itself is certainly memorable, as anyone who has run it will surely tell you, and the organizers made sure that the same approach was used on the website. From dark textures and visuals used to complement the race’s zombie theme, to promotions like their contest to “win an all‐expense-paid funeral,” the site is perfectly on-brand, and like Dollar Shave Club, its unique approach promotes viral sharing. No matter how many race websites you’ve visited before, I guarantee you’ve never seen one like this, and you won’t soon forget it!

GE

Humor and fun and zombies are not the only ways to make a lasting impression on website visitors. GE has created an incredibly memorable experience on their site by focusing not only on the company’s technology and innovations but also on the people behind the brand and the impact they’re making in the real world. Through powerful imagery, videos and personal stories, they have put a very human face on what could easily be a brand devoid of any type of emotional connection. In the process, they show that their company stands for much more than what they do or the products and services they offer.

Be memorable. Be yourself.

Be true to your company’s personality and embrace what makes you unique. Stand boldly apart from the crowd and make a lasting impression knowing that your message may turn away some customers that aren’t really a good fit anyway, but it will also help you attract more of the ones that are right for you. Or, to borrow the wise words of renowned business expert Dr. Seuss: “Be who you are and say what you feel because those who matter don’t mind and those who mind don’t matter.”

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The Who, What, When, Why and How of Successful Email Marketing, Part II

Email marketing: it’s not the newest, shiniest weapon in your business growth arsenal. But there’s no denying that it’s still a highly efficient and cost-effective way of communicating with your existing customers as well as new prospects. But don’t let the low barrier to entry lull you into a false sense of security. There are certain fundamentals you must follow if you want to create a campaign that captivates and motivates versus one that is ignored and condemned to the trash folder. In part one of this series (http://www.famefoundry.com/11041/the-who-what-when-why-and-how-of-successful-email-marketing-part-i/), we examined the quality of the recipients to whom our campaigns are sent and solidified a strategy for when and why to send them to ensure that we do not overwhelm those recipients with messages that are unimportant or unnecessary. Now, we’ll turn our focus to the remaining two fundamentals of email marketing success: what we will say and how that message will be delivered.

The How

No matter which email marketing platform you use to create and send your campaign, all include templates that provide designated areas for content that can be easily edited. The issue with these templates, of course, is that they are, well, templates. As a result, when you use them, you run the risk that your emails will look nearly identical to others that your customers receive, and simply adding your logo is not enough to create real differentiation. As a result, used as-is, they can make your marketing campaigns look cheap and unprofessional. This is why customization is a must. All of these email templates are built with HTML, the same programming language used to construct websites. Behind the scenes are code and images that can be edited to create a more custom-tailored look and feel. Due to the highly technical nature of making modifications within the HTML code, this is probably not something you should DIY but rather entrust to your web development team. They can shape and refine these pre-existing templates or even create a completely unique template design from scratch that integrates seamlessly with all elements of your brand’s visual identity (i.e., your website, printed materials, etc.) and sets you apart your competitors. Whichever approach you choose, this represents a relatively small one-time investment that will pay great long-term dividends as you use your branded templates time and time again. Ideally, you’ll want to establish a few different email layouts that can be used for various purposes, such as newsletter-style content, major announcements and perhaps service alerts or other time-sensitive notifications. The template formats you require will of course depend on your business needs, but by having a few on-hand to choose from, you can ensure all of the email communication that you send reflects well upon your brand.

The What

Subject, subject, subject

No matter how beautifully designed your email might be, that design isn’t worth the pixels it’s transmitted on if your message goes straight to the trash unread. Your subject line is the make-or-break factor that will determine whether the recipient will grant you even just a few seconds of their precious time and attention. A line that’s boring and unimaginative provides zero motivation for them to give your message a second glance. One that’s too over-the-top screams “SPAM!” and is just as likely to be ignored. Subject lines that are too long, written in ALL CAPS, filled with exclamation marks or intentionally deceitful (e.g., including “Re:” to make the email appear as if it’s a direct reply to a message from the recipient) are guaranteed to work against you, so avoid them at all costs. Effective subject lines are neither vague nor dull. If you received an email with the nondescript subject line “News Update,” would you read it? Neither will your customers. Similarly, the subject line “April Customer Newsletter” explains what the email itself is, but it offers no insight into the content of its message. For my own company’s email newsletters, we have eschewed these types of easily disregarded subject lines in favor of more descriptive ones that tease the content. In doing so, we have achieved much better open rates. One way to boost the success of your subject line is to frame it in the form of a question, such as “Are you considering a move to the cloud for your business?” or “Do you know the reasons companies usually struggle with a move to the cloud?” Those two subject lines are ones I actually tried recently along with a more straightforward one – “Challenges of Moving Your Business to the Cloud”. While all three saw relatively good open rates, the two that posed a question to the recipient well outperformed the other. Start paying attention to the emails that land in your own inbox. Which subject lines catch your eye? Which do you gloss over without a second thought, and which ones prompt you to hit the “delete” button immediately? Soon you’ll begin to discern which types of lines are most effective, and you can apply these techniques to your own campaigns.

Inform, don’t overwhelm

Now that you’ve formulated an attention-grabbing subject line that will motivate your recipient to open your email, the next challenge you must conquer is the content of the email itself. All too often, companies try to communicate too much via their emails, with the end result being that the recipient is too overwhelmed to fully process and take action on the information being conveyed. Many email newsletters fall into this trap, with company announcements, blog articles, product highlights and more crammed into a single message. In an attempt to make sure the recipient has access to every piece of information that could possibly be of value to them, the e-newsletter becomes a scattered mess that lacks organization and direction. Additionally, this information is usually presented in full within the body of the message itself, instead of prompting the reader to click a link to access the full text via a web page. As a result, the number of ideas coupled with the depth of their presentation spells doom for the campaign. A quick scan of the message is enough to turn the recipient away because they have no desire to invest the time necessary to sort though the barrage of content to find the one or two bits of information that might be of use to them.

Be a tease

Avoid this “much too much” trap by editing and teasing your content. Include no more than three key ideas per newsletter. Sure, you may have more than three things to say, but you must be ruthless in your selection process, and save the rest for another missive or another medium. Next, present those three (at most!) ideas in the form of short teasers. A title, a short intro to the news item or article being highlighted and an accompanying image are all you need to pique your reader’s interest – along with a link prompting them to read more on your company’s website. By doing so, you’ll ensure that your email newsletter offers a clean, visually appealing presentation that can be scanned and processed in a matter of mere seconds. If a reader is interested in one of the three key ideas you’ve presented, they have the option to easily obtain more details for themselves. Of course, this approach has the added benefit of driving users to your website and increasing that site’s exposure to new audiences. When I suggest this “click to read more” approach, the reaction I most often receive is that readers “don’t like to click a link” but rather want to read the article in their email message. I have no idea where this belief came from, but it is false. Users are more than comfortable with clicking links, especially if it comes from a trusted source (see Part I for the benefits of using a carefully curated email list of customers who know who you are already). The Internet is driven by clicks, so do not be afraid to embrace this behavior! By mastering these five fundamentals of successful email marketing – the who, what, when, why and how – you can help to ensure that your messages are a welcome presence in your recipients’ inboxes, that they are read and, most importantly, that they motivate your customers and prospects to take the action you desire.

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