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.

Is Your Promotion Ready for Prime Time? Seven Make-or-Break Lessons in Staging a Successful Retail Sales Event from Amazon

With the holiday season just around the corner, talk of “Black Friday” and “Cyber Monday” sales have already become practically unavoidable. These two retail sale juggernauts have become so deeply entrenched in our cultural lexicon that they actually shape consumer behavior, as eager shoppers anticipate and plan around their arrival for weeks or even months ahead of time. But what if you want to go your own way? Can you conceive of your own unique promotion that will excite consumers and jump-start spending behavior on par with Black Friday? This was the very challenge Amazon attempted to tackle this past summer with their “Prime Day” promotion. Coinciding with the company’s 20th anniversary, Prime Day was a one-day sale that was promised to include “more deals than Black Friday.” Amazon flooded the marketplace with advertising in advance of Prime Day and whipped up great excitement and speculation among customers about what types of deals might be offered. However, when Prime Day arrived and the sales rolled out, the reaction was decidedly less enthusiastic, with many underwhelmed shoppers turning to social media to express their apathy, disappointment and even downright disgust. In the end, Prime Day was not the colossal failure that the Twitterverse would have you believe. In fact, just a few hours into the day, Amazon sent out a press release claiming that “peak order rates have already surpassed 2014 Black Friday.” Moreover, “Prime members have already bought tens of thousands of Fire TV Sticks, 35,000 Lord of the Rings Blu-Ray sets, 28,000 Rubbermaid sets, and 4,000 Echo devices in 15 minutes. The Kate Spade purse was gone in less than a minute. We also sold 1,200 of the $999 TVs in less than 10 minutes. And there are thousands more deals coming.” While Prime Day may not be the next great retail phenomenon, Amazon’s venture into inventing a new sales holiday offers several valuable lessons in the do’s and don’ts of crafting a successful promotional event:

1. Build buzz around your promotion.

One thing that Amazon did right was building up excitement in advance of the event. They ran advertising for weeks leading up to Prime Day, yet they kept the specifics about the deals that would be offered under wraps, leading to great speculation among Amazon enthusiasts about the kind of fantastic steals they might be able to score. Many of these shoppers even logged on early to try to capitalize on the sale. Any successful promotion starts with hype. You must have a plan in place to build excitement and get people talking so that once it begins, you have a eager customers ready and waiting to jump on board. Of course, hype is just that. It should be the drum roll leading up to the big finish. Otherwise, it’s just an empty promise that will result in disappointed (and distrustful) customers.

2. Deliver on the expectations you’ve created.

By far, the biggest point of failure for Prime Day promotion is that many customers expected much more than Amazon ultimately delivered. The majority of the complaints about Prime Day centered around the lack of perceived value or desirability of the discounted items. Typically, during Black Friday and Cyber Monday, retailers tease deep discounts on highly desirable items (such as TVs, gaming consoles and premium brand products) to get shoppers in the door, counting on them to scoop up other items that they want to unload in the process. But on Prime Day, the best deals centered around Amazon’s own tech gadgets, like their Fire TV stick, Kindle and Echo, while many of the other products that were included, such as dishwasher detergent, socks and even a 55-gallon barrel of lube, were much less attractive and left many customers feeling underwhelmed. Furthermore, Amazon front-loaded the hottest deals at midnight PST, so by the time most customers jumped online in the morning, everything had long been sold out. While Amazon has the numbers to prove they sold tons of item during Prime Day, there’s no denying that, for many customers, they did not meet the expectations that they established in the pre-sale campaigns, leaving the retailer with a major black eye in the court of public opinion. When planning a promotion, be sure that you live up to the hype you create. If your focus is on marketing the promotion instead of on the promotion itself, then you are setting yourself up for disappointed customers.

3. Remember: bigger does not always mean better.

Looking back at Amazon’s pre-sale campaign messaging, you will notice that they refer to Prime Day as being bigger than Black Friday and having “more deals.” Nowhere could I find any mention that Prime Day would be “better” than Black Friday, just that there would be more deals offered, which is a perfect example of the old adage that “bigger does not always equal better.” Item for item, Prime Day may have indeed had more to offer than Amazon did on Black Friday, but that didn’t matter to most customers. People don’t necessarily want tons of options, they just want the right ones. When planning your own promotions, think big, but also ensure that you do not sacrifice quality for quantity. Instead of focusing on offering a wide array of deals, go the opposite direction and think about personalizing your promotion. These days, with the abundance of traffic analytics and customer account data available, it’s easy to know what your customers shop for and purchase most often. Use this information to your advantage and craft customized offers that reward your loyal shoppers with discounts on the things they really want and need. And for goodness sake, notify them ahead of time that their favorite items will be on sale! This is definitely one area where Amazon really missed the boat. After all, who has more customer data and marketing intelligence than one of the Web’s biggest retail giants?

4. Don’t try to please everyone.

The fact that we are talking about all the complaints that people had about Prime Day is interesting in and of itself. After all, this is a sale we’re talking about! People are actually upset that the deals offered weren’t good enough! That’s the very definition of a First World problem and it shows that, no matter how hard you try, you will never please everyone. When planning a promotion, consider your customers and what they want, but don’t get too hung up on trying to include something for everyone. Doing this can force you to go to market with a campaign that is unwieldy and unfocused, and no matter how hard you try, there will always be someone who complains that they did not get what they wanted. Do your best to set and meet expectations, but also be prepared to hear complaints, and accept that this is part of doing business.

5. Motivation is key, and timing is everything.

One of the key reasons Prime Day was not a bigger success is that the motivation behind the event was driven by Amazon, not it’s customers. Amazon decided that they wanted to stage a huge promotion in the middle of the summer to celebrate their 20th anniversary. But what does that have to do with me, the consumer? Nothing at all, really. As Ed Stevens, CEO of Shopatron explains, Amazon’s chief failure was that they neglected to tap into any real time- or emotion-based motivation for their customers: “Prime Day will in no way replace Black Friday. The primary reasons for this include the amount of consumer discretionary dollars in July will not change. Consumers are most motivated to spend their money when it’s associated with an event, and most holiday sales are centered around a sentimental or emotional gift giving component…Prime Day is an unsentimental, ordinary sales gimmick akin to a car dealership having a Labor Day blowout sale.” Everyone knows that the key to making a sale of any sort is to instill a sense of urgency in the buyer. July is far removed from any major gift-giving holiday, so as a shopper, the idea of Prime Day as an early Black Friday is null and void. Unless there’s something I want for myself and happen to find an unbeatable deal on, I’m not likely to part ways with my money on this particular day just because a company tells me I should. When you’re planning your next big promotion, make sure the timing is right, and that you’re tapping into motivations that are relevant to your customer base. If you own a stationery shop, you can run a promotion timed to coincide with brides who are planning for the summer wedding season. If you run a sporting goods store, it doesn’t make sense for you to run a Valentine’s Day sale, but it does make sense for you to plan promotions tied to the beginning of each new sports season for adults and kids needing to gear up for spring baseball or fall football and so on.

6. Make it easy for your customers to participate.

Another one of the chief complaints about Amazon’s Prime Day was the way in which offers were presented: an infinite scroll of items presented five at a time in no particular order which continued on for hundreds of pages. Who wants to wade through that for the chance at finding something they might want at a price they might want to pay for it? If you’re going to run a promotion, don’t make your customers work hard to make you money. People love a good deal, but only to the extent to which it doesn’t cause them an excess of inconvenience. Don’t forget: there’s always a competitor lurking in the wings to give your customers what you fail to deliver.

7. Accept that you will have a target on your back.

With Prime Day well underway and customer reactions starting to roll in, Walmart jumped into the conversation by offering a number of their own “Rollback” deals. They were able to sit back and see what Amazon was doing and then respond in a way that would allow them to try to trump Amazon’s big sale – and for many customers, this move worked as they found (in their opinion at least) better deals on Walmart.com. What does this show us? That the first one to do something is the one with the target on their back! After all, it is always easier to follow rather than to lead. By waiting to see what Amazon had up their sleeve, Walmart was able to evaluate the situation and respond, instead of taking the leap and being first into the fray. This is a reality for any company that forges into uncharted territory, since it allows your competition to learn from any mistakes you make and build upon the path that you establish. Does this mean you should be reactive rather than proactive in your promotional strategy? Not at all. Many companies that were “first in” benefited from that position. eBay was the first company to do online auctions, and sites that tried to follow in their footsteps slowly failed and closed up shop while eBay remains a powerhouse. Sometimes, the first one in wins the day, but other times, they end up being the target that everyone else comes gunning for. Ultimately, though, it’s good planning and solid execution that are the differentiators between a promotion that soars and one that sinks.

Insider Secrets to Killer Website Content: All About Your About Page

As important as good website design is, let’s face it, it’s not what brings visitors to your site. They come for the content, and if that content is sufficiently compelling, then they’ll take the action you desire, whether that’s making a purchase, completing a registration form or even just picking up the phone to contact you for more information. In short, the success of your website begins and ends with quality content.

That’s why in this series of articles – Insider Secrets to Killer Website Content – we’re taking a look at types of content that are common to many websites and exploring ways that they can be redesigned and improved. This second installment addresses a ubiquitous website presence – the “About Us” page.

The ever-present, often-overlooked “About Us” page

You would be hard pressed to find a website that does not have an “About Us” page of some sort. It may be called “Our Company”, “Who We Are” or some other variation on this theme, but in the end, these are all pages focused on telling the visitor about the company to whom the website belongs.

The problem is that these pages are typically as boring as they are commonplace. They generally contain little more than some basic facts about the company – perhaps an abbreviated history of the organization, some details about what the company does or a mission statement.

This information may be necessary – after all, it is your company’s website, so it should contain some high-level, general information about your company. Still, your site – and your “About Us” page – can also contain more than just the facts, ma’am.

A lack of depth

The chief problem with the typical “About Us” page is not that the information it contains is bad in and of itself; it’s that it lacks the depth necessary to play a role in advancing your visitors toward conversion.

Compounding this problem is that “About Us” pages, once written, are rarely ever rewritten. During a redesign process, a website’s content is audited and overhauled, but  if the basic facts about the company haven’t changed significantly, the content of the “About Us” page is usually just moved over to the new site with little to no change made at all. As a result, factually accurate but somewhat boring “About Us” content often persists stubbornly through redesign after redesign.

Your company’s history and the services it offers are certainly important information to share, but there’s so much more that truly defines your company, including its unique personality.

Bringing personality into play

Neither the factual history of your company nor your self-proclaimed statement that you “provide outstanding customer service” will set you apart from your competitors, all of whom are saying exactly the same thing, likely in almost exactly the same words. However, what will set you apart is personality.

Every company has a personality. It is the unique product of your people, your company culture and your interactions with your customers. I often find that a company’s personality is energetic and fun when they engage with customers in the offline world, but their online presence captures none of this energy. Instead, the only cards they show are the typical vanilla facts about the company itself. This is what we can change by bringing that offline personality and the particulars of how your company engages in the physical world into the digital space.

Examples of personality

Let’s take a look at a few great examples of websites that are infused through and through with personality all the way down to the “About Us” page, starting with e-tail giant Zappos.com.

Zappos’ “About” page is all about the company’s culture. Yes, the history of the company and their leadership team are there as well, but the main focus of this section is their culture, including images of holiday celebrations and videos of their people. In perusing this content, you get a much better sense of who they are than you would by reading a a mission statement, a brief company history and a bulleted list of achievements and awards.

Another example of a website permeated with personality is Northfield Savings Bank. The sense of fun that they’ve built into their brand is an unexpected but delightful surprise, since banking isn’t generally synonymous with fun. Still, Northfield pulls it off on their website. Starting with the logo, which features a flying pig, they carry this theme through their entire site, turning the popular phrase “when pigs fly” into a rallying cry for how they go above and beyond in serving their customers. These stories are told on a subpage of their “About” section as part of their “Pig Stories” video series.

It’s not all fun and games

Personality doesn’t have to be all about fun, holiday costumes or flying pigs. For many brands, fun would be an inappropriate trait – but that doesn’t mean you can’t display a personality.

Perhaps you are a not‐for‐profit organization that provides assistance to those in need in your community. Fun may not fit into your brand, but passion likely will. You can show that passion by using your “About Us” page or section to detail the impact your organization has had, profile the lives it has touched and convey the drive that you have to continue to do more.

Instead of simple facts and figures, personality will provide a well‐rounded, distinctive look at who your company or organization really is. That will be what sets you apart from your online competitors and their typical, boring “About Us” pages.

The more the merrier: Adding team bios

If adding unique personality to your company’s “About Us” page can help differentiate your organization, then adding individual bio pages for your employees can take this to the next level.

Granted, this approach is not a fit for everyone. A massive organization with thousands of employees obviously cannot have a page on their website for every individual. In these cases, the bio pages may be limited to board members or senior-level executives. For smaller organizations, however, it is certainly possible to feature each team member individually, and there is real benefit in doing so.

About a year ago, my company redesigned our website. During this process, we made the decision to include a section for “Our People” and give every employee a bio page of their own. We also decided to allow the unique personalities of those individual employees to shine through on their pages. Rather than using the professional headshots you would find on LinkedIn or in press releases, we encouraged our employees to submit photos of themselves that showed them outside the office environment. We received snaps of our team members atop mountains and glaciers, competing in races of one kind or another, enjoying vacations, feeding animals or just being silly and having fun. Taken as a whole, the photos show the variety of personalities and passions that make up our team.

For the bios, we included a short professional history, but we also asked our staff to share their hobbies, talents and an interesting or unusual story about themselves. Like the photos that accompany these bios, the stories and profiles we created reveal an incredible sense of diversity amongst our team.

What our customers are saying

Adding these individual bio pages on our website was a leap of faith for us. We were unsure how our clients and prospective clients would respond to this type of content. However, I am happy to report that our fears were unfounded, as the response has been overwhelmingly positive.

A number of our existing clients have remarked how they enjoy being able to see a picture of a team member before they are scheduled to speak or meet with that person. They also like to know a little something about them outside of their professional work. In more than one case, a customer and one of our team members have discovered shared hobbies or interests thanks to that team member’s bio page. This common interest has allowed them to engage in discussion and begin to foster a relationship that extends beyond the work they are paying us to do for them.

In terms of prospective clients, the feedback has been positive as well. In fact, we recently closed a deal where the client told us they hired us because of our bio pages. That client was wary about hiring a technology firm, fearing that we would only speak in techno‐babble and industry jargon and be on a different wavelength than their company. Seeing our interests outside the office, they immediately felt reassured that they could relate to us – a feeling they didn’t get when they looked at the websites of our competitors.

That’s a big win for personality if you ask me!

The argument against

The argument that I hear most frequently against adding personality to company or team bios is that it may turn some customers off and drive them away from your business. We worried about this ourselves when we decided to add the individual bio pages to our site.

It is true that a unique personality could drive some potential business away. But the better question is: should you really care? If you present your company’s true personality on your website, and that personality turns someone away, would you really have wanted to do business with them in the first place?

Yes, presenting a personality that is more than a safe buttoned-up suit-and-tie approach may turn some business away, but the reverse also holds true. The personality you reveal may very well be the deciding factor that sets your company apart in a  sea of sameness and actually attracts clients that may otherwise have passed you over – exactly as it did in the example I cited above. Had we not put our personality out there, we would not have won that business.

Finding the right fit

No one wants to turn business away, but the reality is that not every potential client will be compatible with the way you operate. Finding the right fit for your company is how you can achieve success in both the short and long term – because even if you do initially win over a company that isn’t truly a good fit for you, they are unlikely to stick around for long.

Finding the right fit allows you to build a relationship that may start with one job but grows stronger and deeper over time to create long‐term engagements and partnerships that can help drive success long after that first project becomes a distant memory. One of the ways to find this right fit is to always remain true to who your company is and not be afraid to let your personality shine through for all the world to see.

You’re not done yet

Finding ways to take “About Us” content from the typical company facts and figures to something that will differentiate your company is just one example of how rethinking content can make your website a more powerful conversion engine. Subsequent entries in this series will explore other common elements of website content that can be improved to bring more value to your visitors and greater returns for your business.