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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iPad – The Good, the Bad and the Possibilities

Apple’s January 27 “latest creation” media event was historical for many reasons – not the least of which was the introduction of the first real tablet. Never before has such anticipation surrounded the launch of single product, and rightfully so. When was the last time you read a book on your laptop? How satisfying is it to surf the Web on your smartphone, even if it is an iPhone? There has long been a gap in the usability of these devices for casual media consumption – a gap that Apple has now bridged with the iPad. As Steve Jobs noted in his keynote address, when developing the iPad, Apple set out to create a new category of devices that would surpass both the laptop and the smartphone in handling key tasks like browsing the Web, sending e-mail, viewing and sharing photographs, watching videos, enjoying music, playing games and reading eBooks. With the iPad, Apple has indeed succeeded in carving out a new category in the mobile device marketplace – one that makes digital content accessible in a posture that has been comfortable and familiar to humans for centuries. As with any first-generation technology, the iPad offers many exciting and novel features, but it is not without its drawbacks. However, these details pale in comparison to what is most significant about the device. By offering a new platform, the iPad promises to revolutionize media as we know it today – from the way we consume it to the way it is created, packaged and marketed – bringing sweeping changes to our culture and a number of industries along the way. Here's Fame Foundry's take on all things iPad:

The Good

• Revolutionary, unhinged tablet computing device in book-holding posture
• Addresses all core functions desirable in a mobile computing device: Web browsing, e-mail, address book, calendar, notes, photos, music, video
• Capability to create and edit documents, spreadsheets and presentations with iWork apps
• Ready to run 140,000 existing apps out of the box
• iBooks available to purchase and read on-demand
• Potential to accelerate the growth of the emerging marketplace of “cloud” products, computing and storage
• Hardware is thin (.5 inches thick), lightweight (1.5 pounds) and elegantly designed
• Full-color screen with multi-touch interface
• Sheds the bulk of input devices
• Bezel allows for comfortable holding without accidental touches
• Excellent battery life
• 30-pin peripheral extension
• Wireless and 3G capable
• Built-in Bluetooth 2.1
• Accessible price point: $499 for 16GB model with no 3G support to $899 for 64GB model with 3G support

The Bad

• No system achieved to allow non-Apple apps to run simultaneously with other apps while balancing responsiveness and battery life
• Needs broader networking capabilities for access to nearby computers
• Presents some challenges in the device’s keyboard interface and standing upright when needed (which can be solved with compatible accessories)
• No camera or capability to video chat – an already established system available even on low-end MacBooks and the MacBook Air
• No GPS device

What Will Change

• This is the beginning of the end of paper. As a handheld device that does more than the Kindle – in full color and with a touch-driven interface, innovative software and well-balanced interface design – the iPad will force print publishers to choose one of two paths: create innovative content systems and monetize or file for bankruptcy.
• You will actually be able to watch video easily and comfortably in your hand and in settings never before feasible with a computer or pocket device. In fact, the experience will even rival a high-definition movie, as holding a 10-inch tablet 14-18 inches away is the same as watching a 96-inch television 10 feet away.
• Casual computing on low-end laptops will diminish. Netbooks will need to redefine themselves or be banished to the same dismal corner of the market as underperforming MP3 players in the portable music category.
• Portable TV and video players will begin to fade into obscurity, and physical media such as DVDs and Blu-ray discs will continue to go the way of VHS tapes and Betamax.
• The Kindle’s price will drop substantially, or the device will cease to exist all together. Maybe both.
• Apple will bridge the interoperability gap between its devices, improving networking and file sharing dramatically. Macs, iPhones, iPads and AppleTV to make a bona fide push toward conquering your desk, your pocket, your lap and your living room.
• The iPad OS will continue to evolve away from its iPhone-like genesis.
• The App Store will see a bona fide split between iPad and iPhone apps.
• iPad apps – and perhaps even the OS – will accommodate more handwriting and drawing functionality. Consider what Newton did 15 years ago with the benefit of today’s advancements in software development.
• Apple declared war on Flash a long time ago, and the iPad’s lack of support for the plug-in is the latest incarnation of this. Expect developers to continue to evolve away from Flash, undermining Adobe’s long-running stranglehold on the Web.
• Gaming will enter a completely new frontier previously untouched by the iPhone platform and traditional computers.
• In the next generation of the iPad, Apple will develop an acceptable multitasking subsystem that balances performance and function and will introduce other hardware features such as a front-facing camera that will finally make the long-awaited video phone a reality. The second generation will also likely come with an even lower price point, boosting demand and furthering the iPad’s infusion into our culture.

Suffice to say, the iPad will sell well and will become firmly ingrained in the day-to-day lives of the masses – as have the iPods and iPhones that came before it. It comes with an already established, robust and broad platform of apps that is unprecedented. It is produced and backed by a company that is renown for ongoing innovation and, as with all its previous devices, will undoubtedly be improving upon the platform. Like it or not, the iPad will become a part of our everyday lives and will change everything. Perhaps not in 2010, but soon after. Below Fame Foundry's agents weigh in with their reactions and predictions for the iPad and its potential as a catalyst for change:

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• The Architect

  The truth is, Apple’s iPad is a tablet – and only a tablet. While it possesses the capabilities of many existing devices, it is not a netbook, nor a personal computer, nor a pocket device. It is, however, what the tablet was supposed to be all along: an easy-to-use, book-sized platform for content and communication, with software and an interface that allow for possibilities never before realized. As such, the true significance of the iPad lies in the long-term impact it will have on our culture. Putting aside all initial criticisms in not living up to the dreams of every power user, early adopter and fanboy, the iPad is unquestionably a game-changer. Imagine everything that currently exists in print at book or tablet size being completely data-driven and interactive. Expect to see your UPS driver carrying it. Expect to see your medical charts on it. Expect an interactive Sports Illustrated to be published with capabilities that are unattainable with current Web standards. Just as assuredly as the iPod and iPhone took three generations to hit their full stride in the marketplace, so will the iPad in revolutionizing content, communication and computing. The iPad’s first phase is now in play.

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• The Craftsman

  Although not the end-all, be-all device I was hoping for, the iPad – along with various other tablet devices – is ushering in a new era of personal computing and media consumption. The possibilities of a device like this are endless. The way people are consuming and interacting with media is changing. Virtually all forms of media will be affected by the move toward a handheld digital format, especially the newspaper and publishing industries. What a device like the iPad does so well is consolidate and present content, replacing volumes of books, magazines, papers and other forms of media. Students can empty out their backpacks and have every required book downloaded to their iPad. I also think we will see a shift from an emphasis on developing for the Web to developing applications. Apps will be the primary way content is delivered in the future. Until now, apps were lacking the right device to truly take off as a mainstream platform, but I think that device has finally arrived. But iPad went beyond media consumption when they redesigned the entire interface for iWork. I was intrigued to see how applications like Pages, Keynote and Numbers will work on a multi-touch, gesture-based device. I think the future of interface design is very exciting.

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• The Author

  The iPad is, first and foremost, a media consumption platform. However, this device is not as revolutionary in and of itself as are the changes it makes possible in the types of media that will be available to be consumed. Hardware developers have long struggled to create an interface that is comfortable for reading or viewing for extended periods of time. Now that Apple has solved this problem, as the public embraces the iPad and it becomes as ubiquitous as iPods and iPhones, we will see the emergence of a new kind of audience with evolving expectations. As demonstrated at the January 27 event, iBooks and the New York Times app are a step in the right direction for handheld digital media. However, given time, artists, writers and developers have unlimited potential to work together in changing the media consumption experience as we know it. Currently, media is segmented by format, vehicle and purpose. Books, newspapers, magazines, radio, television and movies stand alone as distinct entities. However, the iPad presents new possibilities for blurring the lines between these various media types. eBooks can become increasingly interactive, enhanced by images, animation, video and sound to offer more than just digital versions of printed texts. If movies have soundtracks, who is to say books can’t as well? Writers, designers, illustrators, animators and composers will have unprecedented opportunities for creative collaboration. Currently news outlets produce separate content for broadcast or print and for the Web. Even though an online news story might include a video or audio clip to support written text, they are not seamlessly integrated. The iPad makes this possible in ways that will offer a richer, more informative experience. Furthermore, as the iPad and other tablets eventually become the default media consumption device of choice, there will no longer be a need for entertainment to conform to a rigid half- or hour-long format for TV or two-hour movies. Instead, writers and producers will have the freedom to find new and innovative ways to produce entertaining content that is both profitable and better suited to the consumption habits of the end user.

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• The Creator

  As a designer, there’s only one thing that excites me about the iPad, and it’s not the elegant design, the slick interface, the incredible battery life or the low price. What really excites me is the iPad’s single most valuable offering — its potential to revitalize the suffering publishing industry and revolutionize journalism. As I watched the native version of the New York Times demonstrated at Apple’s "newest creation" event, a progressive yet familiar medium was being revealed. Unlike the iPhone, the iPad mimics the size and portability of traditional printed material such as books and magazines. In the example of the New York Times, the design of the page is easy on the eyes and demonstrates how typography and page design can be preserved in digital media. What’s more is there’s good news for advertisers, too. The creative ads we are accustomed to seeing in printed publications can be incorporated into page layouts for the iPad app, eliminating ineffective and obnoxious banner and pop-up ads that plague browser-based versions. Like never before, the iPad makes it possible to combine the best of traditional publishing and journalism with the best of the Web. I don’t believe the iPad is destined to replace our workstations and laptops. Rather, it will become the standard vehicle by which we consume information. It is the new “paper.”

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Check Your Ego at the Door: Embracing User-Centered Website Design

The creation of a new website is a process filled with important decisions. As the owner, CEO, or decision maker at the organization for which the new site is being designed and developed, you will be asked for your feedback or approval a number of times along the way – but what are you using as the basis for that feedback? Too often decisions are made during a website’s creation that are based on the preferences of the site’s “owners” and not on the needs of the people who will actually use the website. This is the wrong way to go about making decisions for a project, because the reality is that your website should not be designed for you, it should be designed for your audience. In this article, we will take a look at how you can shape the decisions you make on a website’s creation, or its subsequent upkeep, to help you meet the needs of your website’s most important audience - the clients and customers that will bring you business and ultimately make your site a success.

Making design decisions

No one wants to have a website they don’t like the look of, but the fact of the matter is that design decisions are not made for aesthetic reasons only. Visual choices for a project should be made by taking the needs of your audience, and your business’s goals for the website, into account. Many people assume that their website should be a reflection of their personal tastes or sense of style. That is not the case. It’s sometimes hard to hear, but your preferences of what looks good and what doesn’t should be secondary to what is appropriate for your site’s users. You certainly want something that you are proud of, but when reviewing design options, but sure to consistently ask yourself, “what would my audience think?” Or better yet, ask some of your actual users for their feedback and use that data in your decision making process. In the end, the goal is to come up with a design that you love and which properly represents your company, but will also meet the needs of your audience. When in doubt, however, defer to your users’ needs and remember that old saying – “the customer is always right.”

Give users what they want

While a great design is certainly important, the reality is that your customers are not coming to your website to be “wowed” by its visual design - they are coming to your site for its content. If you want your site to succeed, it has to offer the content your audience is looking for and make it easy for them to find it. When considering what content should be presented on the website, and also where it should be presented, you should once again ask yourself what is right for your audience. You may be very proud of the awards your company has won or feel that the “Message from the President” is insightful, but be truthful - is that what your site visitors are coming to find? If not, then does it make sense to present that content on your homepage or someplace else with similar prominence? Oftentimes website content is prioritized based on company egos or a sense of what they want to see, rather than what users are looking for. We are proud of our accomplishments, so we want them front and center for all to see. Our President runs the company, so his words must be important, right? While these may both be true, if your site visitors are not looking for this content, and yet you place them in a spot of prominence instead of content that your audience actually wants, then you are putting your needs or opinions ahead of theirs. Leave the ego aside when making content decisions for the website. Those awards announcements and presidential messages can certainly have a place on the site, just make sure it’s an appropriate place that doesn’t interfere with what your users come to the website to see.

I want my website to do something cool!

Website owners love pizzazz. We see another site that does something “cool” and we want something similar on our own site. Unfortunately, we rarely ever stop to consider whether that awesome animation or cool feature is actually effective or if it helps meet the goals of your site. When considering adding something you think is “awesome”, you should once again (I imagine you are starting to see a pattern here) ask yourself how that addition will help meet your business’s goals or your users’ needs. Does it help at all, or is it just something cool to add? Almost always, it is the later – nothing more than some “wow factor.” That alone would not be a bad thing, but too often, the “wow” that is added actually makes it harder for our users to do what they came to the website for in the first place. Take animated introductions or “welcome” videos on websites, features that are one of the more popular requests made to add some wow to a site. Would you ever start a business meeting with a song and dance number, trying to entertain your audience before the meeting begins? Probably not – yet that is exactly what you are doing when to you add that animated blast of pizzazz to your website. It is all show and no substance and your site visitors will see right through it – that is if they stick around long enough to even see it. Oftentimes, overblown effects such as unnecessary animation, videos, or music files that play when the site is loaded do the opposite of “wowing” your audience. Instead, those effects often drive them away. If you surprise site visitors with an audio track or a video that autoplays on page load, a likely response is to quickly click the ‘BACK’ button – taking the traffic you worked hard to get away from your website and your business. Your customers, and potential customers, come to your site for a reason. Anything that gets in the way of what they are looking to accomplish lowers the chance that they will continue deeper into your site to complete their task. When adding wow factor to make your site more memorable, always be sure that whatever you add is not done at the expense of your site’s usability. Furthermore, ask yourself if you really even need it, because a site that welcomes visitors and easily allows them to find the information they need to complete the task they came to complete is certainly doing “something cool” – it is meeting your users’ need and driving business results for you. Let’s take a minute to look at a few examples of wow factor added in appropriate, and inappropriate, ways so we can compare the two.

Video – the right way vs. the wrong way

We’ve already mentioned adding “welcome” videos to a website. Often, this video takes the form of a commercial or advertisement that a company ran on television. They receive a web- ready copy of the spot and, wanting to make the investment they made in that video stretch as far as possible, they decide to add it to the website. But for what purpose? If the goal of the initial commercial was to introduce viewers to your company and get them to the website, then why put it on the website to show users who are already there? The website for cosmetic dentist Gary D. Light & Associates starts with a video that pops up on the site and autoplays, distracting users from the rest of the site’s information. Even worse, if you’re in Internet Explorer – which many of your users will be, the video opens again on every single page you visit, even though you may have already closed it two or three times. That is a recipe for annoying your audience. The website for car dealership Tasca also begins with a video that autoplays, showing one of the company’s commercials. Visit the site for the first time and the video overtakes the screen with a commercial. It’s a bit jarring if you are not expecting it the video and audio to begin blaring out of your speakers. Overall, this is a quality website with lots of useful features for someone shopping for a vehicle. Does that opening video help in that search or does it drive you away when it pops up unexpectedly? A better way to present video is what you will see at the United Way of Rhode Island. Their annual “campaign video” is one of the feature pieces of content for the website, and it is presented directly on the homepage in the large billboard area. Rather than autoplay the video, however, a site visitor has to request to see it by clicking the large red “Watch” button. In this way, the video is made readily available to those who want to see it, without interrupting the user experience of those who do not.

The three questions

When new visitors come to your website, they will ask themselves a few questions, namely:

1. Who is this company?
2. What do they do?
3. What do I do next?

Not only do users ask these questions, they do it quickly, in as little as 4-8 seconds once they visit the page. To successfully meet your users’ needs, you need to make sure the content you place in front of them helps answer these questions and directs their experience. The website for Bradford Soapworks is a nice looking site with quality information throughout, but the homepage opens with a letter from the company chairman. There is no mention of what the company actually does, no images of their products and no clear calls-to-action to answer the question of “what do I do next?” That message from the Chairman, however important to the company, does not seem to be in line with the needs of site visitors. In contrast, the website for The Savannah Soap Company does a great job of answering these 3 basic questions and the eye-catching visuals, presented in the site’s large billboard area, also include calls-to-action to “start learning” or to “learn more”, giving visitors a clear direction as to what to do next. When presenting content on your website, consider the answers to the 3 visitor questions outlined above and consistently ask yourself whether the placement of the content you are using is appropriate to meet your visitors’ needs and answer those questions.

Talk to your audience

If you truly want a site that will be a success, continually ask yourself what your customers would want as you make decisions on the site – both during initial design and development phases and again later on during the site’s maintenance. Or, as I mentioned earlier, take it a step further and don’t only ask yourself what your users would want – actually ask them! Whenever appropriate, ask real customers how you are doing on your website. Did the decisions you made along the way help them in the ways you intended? What else could you do to make their experience better? You will be amazed at the quality feedback you can get simply by asking a few questions. Now, this doesn’t mean you should simply put a “tell us how we are doing” form on your site and call it a day. The most likely submissions you will get through those forms are spam-bots or angry visitors who are more likely to fill out such a form when they are upset. While you certainly want to know if someone is upset with the site, this feedback form alone will give you a very skewed picture of how you are doing. Soliciting feedback from your site means truly interacting with your audience. Pick up the phone and call some customers to ask them your questions – or work with a firm that specializes in user testing and see how the site holds up in those tests. However you gather the data, the best way to meet your users’ needs is to learn what those needs are and the best way to learn what they are is to speak to your audience.

Love your website

A website is a reflection of our business, so it makes sense that we want it to also be a reflection of us – our likes and preferences. We want our website to be “ours” - but in the end, while the website itself may be yours, the experience it creates belongs to your audience. If you truly want to make the site a success, start by making sure that the experience it creates - from the design visuals, to the content presented, to the wow factor you decide to (or not to) add, is a wonderful experience for your users. Meet their needs and they will make your site a success. I don’t know about you, but to me, a site that does that is about as “cool” as it gets.

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