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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Mistrustcasting: A Tale of Two Brands

One day recently, a high school math class decided to conduct an experiment to ascertain whether Oreo’s Double Stuf cookies actually contain twice the “stuf” – crème filling – as implied by the treat’s name.

The class’s work yielded the faintly damning discovery that the Double Stuf contain only 1.86 more filling than the original incarnation – a shortage of 7 percent. Hardly headline-making news, right? After all, most folks would agree that it’s close enough and simply applaud the teacher’s creative, hand-on approach to this classroom exercise.

And that’s where Oreo should have left it, but they chose not to. Instead, when contacted about the matter by Business Insider, the company issued a formal statement claiming the math class had reached an inaccurate total and that their Double Stuf recipe does indeed include fully twice the amount of filling. So Business Insider put together its own experiment, which came down in favor of the math class.

Oreo’s response made this story bigger than it needed to be, and as a result, the brand’s overall reputation took a hit. After all, if they felt the need to lie about 7 percent of their filling, what else might they be hiding? The cookie controversy served up good fodder for a few days of news bites and morning drive-time humor, but given the public’s lasting love for Oreo, the Double Stuf kerfuffle blew over in short order.

More than filler

The Double Stuf debacle is an entertaining – if relatively innocuous – example of just how easily the integrity of even the most well-known brands can be called into question. That’s why the task of building and maintaining trust in your brand is such serious business. For more evidence, let’s take a closer look at BP and SC Johnson, two huge corporations with very different approaches to brand integrity – and very different reputations.

Both companies deal in products under close scrutiny in today’s increasingly green-minded business and marketing environments. BP is the world’s sixth largest petroleum fuel interest, and SC Johnson is one of the world’s largest producers of household cleaners.

If you look at their advertising and PR, both companies use strikingly similar language, which is logical, given that each company has a vested interest in portraying itself as environmentally responsible and forward-thinking.

But the court of public opinion tells a very different story, making it clear that their efforts to define themselves are yielding drastically different results.

BP’s big problem

More than three years after the disastrous oil spill in the Gulf of Mexico, BP is still dealing with the aftermath on many fronts. In addition to the illegal practices which led to the spill, the company has been found guilty of felony for lying in its response to the disaster and has paid out more than $42 billion in clean-up costs, settlements and fines.

BP was found to have engaged in multiple deceptions before, during and after the spill. The company repeatedly refused to disclose accurate or timely information for months after the disaster, which resulted in a far greater impact on the environment than would have happened if the company would have been immediately forthcoming.

A visit to BP’s website shows that the spill still dominates much of the company’s PR efforts. That’s as it should be.

But even as BP touts its gulf clean-up efforts in carefully crafted feature articles, it releases defensive statements whenever its efforts and motives are called into question. For example, in a statement dated August 28, BP responds to recent allegations by the state of Louisiana claiming that BP has not adequately addressed the clean up. Here’s the money quote that leads the statement: "Any suggestion that BP has failed to address the clean up of the Louisiana coastline is both false and irresponsible.”

No acknowledgement of BP’s responsibility, no conciliatory tone indicating that BP is committed to repairing the damage it caused, no apology for all of the suffering. Just a hardline defense, with copy that reads like it was drafted by a stereotypical Hollywood lawyer. This antagonistic tone is at odds with the shiny, happy stories that appear throughout the special section of its site dedicated to the Gulf of Mexico restoration.

This stark discrepancy between rosy PR fluff pieces and sharp legal statements defines the very heart of BP’s brand integrity issue. This is a company whose practices are squarely at odds with the public image it attempts to project.

Start with the logo

Petroleum is hardly a “clean” business; the best any oil company can offer is diligent safety practices and commitment to mitigating its environmental impact.

When BP debuted its green sun logo in 2001, the flowery “helios” mark, it was a clear effort to position the brand as somehow “cleaner” and more environmentally conscious than its competitors. The green sun implies a very different focus than, say, an oil derrick looming over a seascape. Yet in the decade plus since its logo shift, BP has actually decreased its efforts in the arena of solar power, finally announcing plans to shutter them altogether in 2011.

The fact remains that BP is first and foremost an oil concern, with all the environmental risks that such companies encounter. Until BP’s research spending on alternative fuels exceeds the 50 percent mark, that logo is a blatant lie.

Follow the money

Many brands seeking to build trust with the public establish charitable foundations or make contributions to causes. With its image in desperate need of a reboot, BP has made significant donations to gulf cleanup efforts and regional charities that focus on hunger and housing. These are all high-profile, press-release-ready efforts.

It’s certainly better than nothing, and BP does seem to grasp the idea that it needs to spend big to show its concern.

But you won’t find much in the way of marine environmental research on BP’s books or any slowdown whatsoever in the company’s high-risk deepwater drilling projects. No, right along with its more environmentally friendly efforts like wind and biofuels, BP is still using the lion’s share of its research dollars to pursue the same kind of risky drilling that damaged the Gulf of Mexico so dramatically.

As John Bell writes in Forbes Magazine, “BP’s talk about caring for the environment was for naught, as its actions failed to match its message.” Small wonder that a site like boycottbp.com is still growing strong. Or that the brand ranked at number seven in MarketWatch’s 2013 poll of companies with the worst reputations.

SC Johnson’s evolving transparency

While SC Johnson certainly faces environmental concerns, it does have an inherent advantage over a company like BP. After all, a Gulf-scale tragedy is highly unlikely in the arena of household cleaners.

But this field carries its own set of risks. Many of SC Johnson’s products – insect repellents, cleaners and baby shampoo, to name a few – are used by families on a daily basis. And in the last decade, concerns have increased about how these types of products impact not only the health of customers but the greater environment as a whole.

In large part, SC Johnson has responded to such concerns with a careful trust-building approach that includes admission of mistakes and a proactive willingness to change corporate policy and behavior. While there have been a few bumps in the road, even their response to setbacks has been characterized by a tone that emphasizes responsibility over defensiveness.

Open policies

One major area of concern with consumers about household products is the ingredients. Many cleaners and air fresheners tout a natural, organic identity while their labels contain a long list of unpronounceable components unfamiliar to anyone lacking a degree in chemical engineering. In an effort to counteract this, SC Johnson launched its "What’s Inside SC Johnson" website in early 2009, where it has published complete ingredients lists for almost all of its products.

However, the company’s track record is not perfect. Its “Greenlist” label, featured on Windex and other products SC Johnson claimed passed its highest environmental standards, was the subject of several consumer-advocate lawsuits. Because the label closely resembled other third-party designations for independently vetted products, the suits rightly called into question the legitimacy of SC Johnson practice of promoting its own – potentially misleading – self-proclaimed green standard.

Response to criticism

One of the ways in which SC Johnson has been most successful in upholding the integrity of its brand is in its response to controversy. The company trades heavily on its identity as a family-owned business, something that can be difficult to buy given its global scope and multi-billion-dollar annual sales numbers. But when issues arise, it is not a corporate lawyer that does the talking for SC Johnson; it’s Fisk Johnson, CEO and true blood family representative.

In the case of the Greenlist issue, Johnson reiterated the company’s commitment to the environment, but admitted its misstep. “When you're out in front of an issue like this, it means that you're not always going to get it completely right, as was the case with this particular issue," he said.

SC Johnson has also demonstrated a willingness to change its formulas and policies ahead of any legal mandate – and also ahead of many competitors. The company has reduced its greenhouse gas (GHG) emissions by 42 percent since 2000, and it has installed two wind turbines at its largest global manufacturing facility, enabling that facility to produce most of its electrical energy onsite.

Integrity gets results

All of this earnest effort is certainly paying off for SC Johnson. In 2012, the United Nations Foundation for Social Change honored the company as a global Leader of Change, and in 2013, the company received an EPA Climate Leadership Award for Aggressive Goal Setting.

SC Johnson’s mix of staying true to its family roots, increasing transparency with customers and demonstrating a willingness to change combines to reinforce its reputation as a brand that operates with integrity. While the company isn’t perfect, its actions maintain consistency with its image. By any measure of consumer confidence, that’s a powerful – and to borrow from BP’s ill-used lexicon – sustainable strategy.

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When Less is More: An Introduction to Minimalist Website Design

Minimalism is a trend that garners a lot of debate and discussion in the website design community. As a result, chances are good that you’ve heard of minimalist design and seen its principles in practice on sites that you visit day in and day out. But what exactly is minimalist design? And is it the right choice for your site?

Minimalism defined

In website design, minimalism can easily be construed as plain, lackluster or easy to accomplish. However, that is quite far from the truth. To the contrary, minimalism is a philosophy of web design that strives to eliminate all unessential features and elements in order to enhance usability by providing a clean, streamlined browsing experience that is absent of unnecessary distractions and clutter.

Focus

Every successful minimalist design starts with a crystal-clear vision of the purpose of the site and the key messages it needs to convey. Before any design choices are made, it’s critical to outline the goals and content of the site. This requires determining what information is most vital to visitors and arranging it in order of significance. You might actually be amazed to discover how little information is actually required to help users make decisions or accomplish their goals.

Typography

Because minimalist design is reduced to only its most essential visual elements, the site’s content takes center stage. As a result, typography is key to capturing the user’s attention. The choice and usage of typefaces in minimal design is critical to creating a unique look and feel that makes a lasting impression on visitors. Therefore, it’s important to choose a combination of typefaces that both reflect the personality of the brand and provide a clean, pleasurable user experience. Yet again, restraint is key, as using too many different fonts can make the site feel unorganized and chaotic. Beyond the choice of typeface, attention to detail in size, color, spacing and weight is important to ensuring readability and defining the overall aesthetic of the site. The WPShower website offers a good example of the role typography plays in setting the tone for minimalist design, with an easy-to-read yet somber font for the main caption and a quiet font for the menus.

Color

A common myth of minimalism in website design is that it entails a lack of color. While many minimalist websites do feature a color palette that is limited to black and white, this is merely an aesthetic choice, not a requirement. Instead, just as with all other elements of minimalist design, color should be deployed in ways that emphasize focus and restraint. Minimalist sites commonly employ a single continuous background color that sets the mood or tone for the site. A carefully chosen accent color is then employed to draw the user’s attention to key features of the site, such as navigational elements or important points within the content. It’s important to ensure that the accent color is not used to excess, or else it will lose its impact. For instance, take a look at authentic style, the design portfolio of William Smith. The background is brown, with another shade of that very color used as accent, yielding an overall effect that is minimal, clean and neat.

Layout

Layout is a make-or-break element of minimalist design. It requires proper execution and an absolute lack of ambiguity. All elements should work together to keep the primary focus on the site’s content. Minimalist design requires special attention to certain key elements. For example, the company name and logo should be in a prominent location in order to establish the site’s identity and promote the brand. Next, as with any site, ease of navigation is critical. Navigation menus should be convenient to locate and use on any device or platform. If visitors are forced to scavenge for information, the website will not be popular, no matter how beautiful it is. For instance, take a look at the website of The Mavenist – a minimalist design featuring awesome typography and a user-friendly layout. Also, it is often incorrectly assumed that a minimal website design excludes images and graphics. After all, we are concentrating on good typography, few colors and highly structured layouts, so images will only introduce chaos, right? Actually, no. Images are an important component of any website’s content, and in minimalist design, images can be used to powerful effect in the absence of other competing graphical elements. For example, take a look at the Clean Dessign theme. It is loaded with images and yet maintains restraint in terms of layout and design.

White space

White space – also known as “negative space” – simply refers to the area on a web page that is not occupied by any design elements or text. Even though it is called “white space,” it does not actually have to be white. This term merely refers to the space that exists between content. White space is a critical element of any design – not just minimalism. It can be tempting to fill this empty space in order to make the best use of the available real estate on the page. However, in fact, it is this space between content that helps users make sense of the page and understand which elements are most important. In minimalist design, white space is used to help lead and direct the user’s attention. For example, content that stands alone will draw focus immediately. Furthermore, white space can also be used to group similar items together as well as to create separation and differentiate between elements of various levels of importance.

Getting started with minimalist design

While minimalist design is appealing in its simplicity, it’s not the right choice for every site. It works best for those sites that are centered around serving a singular purpose – whether that’s selling an app or presenting a portfolio of work. So how can you determine whether your site would benefit from being redesigned with a minimalist approach? The answer is more simple than you might think. No matter what business you’re in, your website exists to help that business grow. Therefore, every decision you make with regard to your site should be based on whether it will help to advance your business growth objectives. A good place to start is by evaluating your current website. Make a list of its various features and components. Now arrange that list in order of usage, with the most commonly used ones on top. From there, go down the list and eliminate any that are not often used or are not essential to supporting the business objectives of your site. If what remains on the list reflects a few relatively simple ideas and functions, your site could be a good candidate for a minimalist redesign. Further exploration with an experienced website design firm will help you identify the ways that your site could be simplified and streamlined. As always, usability trumps all, so any changes must be driven by the goal of providing the best possible experience for visitors that motivates them to take action. Implementing minimalism just because it is a popular trend could ultimately undermine your site’s ability to help you capture and convert new customers. But if your aim is to present a focused message in a powerful way, minimalist design will provide a stage where those ideas can shine.

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