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.

Starbucks vs. Dunkin' Donuts

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• The Architect

  Starbucks and Dunkin' Donuts’ approaches to creating meaningful community around their brands and extending their companies beyond a typical retail website is as different as their stores. Both websites have menus, nutrition information, online stores, store locators and social links -- the bare necessities for brands of this nature. The similarities end there. Dunkin' Donuts' version of extending itself beyond the walls of its stores is reminiscent of old gimmicks and half-hearted community-building ploys. There's a healthy version of its menu, links to a running site, some promos and a contest, and then we’re done. Dunkin' Donuts provides no opportunity for its fans to be a part of its website in any meaningful way. Starbucks has done better in their attempts. Noteworthy is the idea of improving the company with your ideas -- something that speaks to core fans. If you love the green Starbucks splash stick, then you should know it was developed in this way. The website allows visitors to share ideas, vote on ideas submitted by others and see which ideas have received the strongest response. It promotes community by encouraging visitors to play a part in improving the brand they love through their own opinions and innovations. Second to this, there’s a blog that’s halfway worth subscribing to if you’re an ultra fan. And while it is not exactly groundbreaking, it has a genuine appeal and seems to keep a decent personal touch to it with little of the usual corporate interference on the surface. Introducing new conveniences, products and free offers allows the blog to be something worth subscribing to for core users and brand evangelists. In addition, Starbucks offers a place for those willing to contribute to their causes. It’s not terribly engaging, but having a directory of people bound to stores and allowing for conversation within each store is a worthwhile effort. It needs more work in order to truly establish the store as a gateway to the local community.

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• The Craftsman

  A website should not only be an extension of a retail store, but it should also be the gathering place for your brand's community of followers. It's important to give that community a great experience when they visit your site, and design plays an integral role in that experience. Dunkin' Donuts and Starbucks handle this experience in very different ways, and both leave much to be desired. Let's start with Dunkin' Donuts. It is quite clear that the goal of this site is to push products. The first thing that I notice is the horrible Photoshop work on the home page. It's a collage of poorly photographed and cut out cups, beans and other products. It's obvious that none of the elements ever appeared together naturally. With coffee beans the size of walnuts and cups the size of buckets, the scale is so ridiculous that the whole thing comes off as cheesy and poorly produced. There is a lot of movement and visual stimulation on the home page, including pop-up menus, enlarging images and a hot pink drop-down menu. It seems that at any moment a man wanting to guess my weight or swallow a sword could jump out from behind that burlap sack. These elements are over the top and a detriment to the functionality, as the page takes several seconds to load. The navigation is passable, but there is a lot going on. First you have the main navigation with drop-down menus. Above that you have a secondary navigation that is one of the smallest I have ever seen at only six pixels. I would think that a store finder and franchising information warrants a larger size. And above in the upper right corner there are 4 graphics that appear to be buttons but do nothing when clicked or hovered over, creating confusion. Secondary pages on the site are cleaner, but there are still some alignment and spacing problems, and an overall lack of design consistency makes the site look thrown together. While some pages look pretty good, others look quite bad. On any given page there are several fonts and many colors, causing it to look very busy. Starbucks' website is in stark contrast to the Dunkin' Donuts site. It's clean and minimalist in a way that feels great on the home page, but once you dig into the site, the pages become bland and boring. The home page immediately gives you hierarchy with a large, interactive feature that is simple to navigate. Below that are three areas that funnel traffic with a minimal navigation system. The light background helps the warm, rich imagery pop, creating terrific contrast. Nothing is in your face or obtrusive. It's subtle and functional -- just what you'd expect from a brand like Starbucks. The secondary pages aren't nearly as strong as the home page. The primary and secondary navigation are minimal to the point of being boring. The leading on the navigation and body text is tight and should be expanded. The subtle drop shadow on the top of the canvas area makes that area appear as a frame and does nothing to enhance the page. Columns are narrow, and content feels cramped. There is wasted real estate under a poorly designed search bar which features a "go" button -- none of which feels like what you would expect from Starbucks. There is also a lot of inconsistency from page to page, especially in the way their products and offerings are displayed, which makes the browsing experience feel disjointed. Both sites have work to be done and leave me feeling disappointed. I expect better from these two captains of the coffee industry. While Dunkin' Donuts is over the top with its bright colors and flashy animation, Starbucks doesn't go far enough with its neutral colors and boring framework. Like a cup of coffee that's too strong or too weak, these sites need to find the perfect brew.

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• The Developer

  Anyone who has studied the metrics on their own website knows that getting people past the front page is a big deal, getting them to stay longer is even a bigger deal, and having someone feel that your site is worthwhile enough to come back is the ultimate score. Today's websites are as much about visitors consuming information, collaborating and interacting as a community as they are about selling a product or service.Interestingly, when comparing Dunkin' Donuts to Starbucks, it is clear that both companies have attempted to make their sites into something more than just a reproduction of their retail storefronts. They both have used various methods to try to capitalize on the enthusiasm of their customers. Dunkin' Donuts offers a feature that allows you to create your own donut, while Starbucks has launched a number of social websites that range from promoting specific product lines to advocating social change to soliciting suggestions to make your Starbucks better. Overall, Starbucks does a better job of providing compelling reasons to visit the site. However, both make the perplexing mistake of burying the content rather than bringing it to the forefront. Dunkin' buries these nuggets in favor of button graphics and forces visitors to hunt to find something interesting. Starbucks hides a single text link for each of their social sites below their Flash movie that gets in the way of finding something more useful. Both companies have very active Facebook pages with posts happening every few minutes -- not that you would know this by looking at the front page of their site. What's that you say? The goal is to sell product? Well, I have a question in return: Isn't it necessary to drive traffic to your site in order to sell products online? If there are 4.5 million fans on Starbucks' Facebook page posting every couple of minutes, you do the math. I'll just hold off on returning to these websites until either company gives me a reason to.

Insider Secrets to Killer Website Content: 7 Steps to Building a Better Blog

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. So far, we’ve covered customer testimonials and “About Us” pages. In this third installment of the series, we tackle the ever-popular but often poorly executed business blog.

The promise of blog content has always been the ability to easily add fresh content to your website on a regular basis. In practice, however, that’s not quite as easy as it sounds.

While the tools available to us today allow blogsto be updated very easily, authoring content that is relevant and unique is a much greater challenge – one that proves to be the downfall of many a blog.

The challenges of maintaining and sustaining a blog

Every new blog is launched with the loftiest of goals and expectations. Plans are laid to write articles chock-full of insight on the latest industry trends, and anticipation is high for the proliferation of inbound links to come along with the resulting boost in search engine rankings.

The road to realizing those dreams starts with quality content, but being able to produce that content on a regular basis is where the rubber meets the road – which often proves to be a much greater obstacle than many realize when they initially decide to launch a blog.

At the outset of blogging, enthusiasm is high and ideas flow like honey. But all too often, after a few months or even weeks, the content begins to falter. The frequency between updates grows, and the quality wanes as articles begin to read more like standard press releases or company news updates.

For any blog to succeed, it must have regularly published content that is timely and relevant. If you can also make that content unique, then you have achieved the trifecta of excellent blog content.

So how do you ensure that the enthusiasm and quality that you have at launch can be sustained past the first handful of posts? Here are seven steps to turn your blog into a powerful traffic-boosting, sales-generating machine:

1. Answer questions you are being asked.

Every writer’s biggest challenge is coming up with a topic – and blogging is no different.

Staring at a blank screen and trying to get started on a new article is a daunting task indeed. But one way you can generate some topic ideas is to think about questions that often come up in your day-to-day conversations with your customers.

Whenever I begin brainstorming ideas for a new article, I start by reflecting on these conversations. Typically, I can identify a few topics that I’ve recently been asked about, and I can also recall the answers I gave and the discussion that ensued. More often than not, these provide the perfect foundation for a new article.

By coming up with a list of common client questions, you’ll provide yourself with excellent potential blog topics. Better yet, you’ll also create content that people are actually interested in and actively looking for – because you can bet that if these questions are being asked of you, then there are others out there who are looking for those same answers too.

2. Write about what others are not writing about.

Answering common questions is a great start, but you can really take your blog to the next level if the articles you publish – and the answers you provide – are unique.

Think about your own experiences in searching for answers online. If you search for a topic and find very few relevant articles addressing that topic, then that article – and its source – become gold to you. If it’s a really great article that does indeed answer your questions, you will tell others about it via social media or by posting links on message boards and forums where you are an active participant. A unique article succeeds because it addresses a topic that no one else effectively has.

The value of an article with little competition increases exponentially. So anytime you’re brainstorming new blog content topics, be sure to do a search for articles that may be similar in nature. If you do find similar content, make sure yours offers a different perspective or creative spin. If you do not find similar articles, this is your golden opportunity to publish something truly unique.

3. Keep to a schedule and plan ahead.

A schedule is critical when it comes to sustaining your blog over the long term. The frequency with which you update your blog with new content – whether it’s daily, weekly or monthly – will be different depending the nature of your industry and your audience. However, sticking to that schedule is what’s important, because it is all too easy to miss a deadline and brush it off as no big deal. But once you miss one deadline, it’s that much easier to miss another and another and another – until the gap between articles becomes substantial, and getting back on track becomes a grueling uphill battle.

One way to ensure that you keep to a schedule is to plan ahead, and planning ahead starts with ideas. If you dedicate time for you and your team to brainstorm article topics (whether individually or in a group session), you’ll inevitably find that one great idea leads to another and another.

When you have a handful of great article concepts to work on, it’s often tempting to publish these articles in quick succession. However, it’s important to avoid this temptation. Instead, make the most of your brainstorming momentum and plan out exactly when each of these articles will be published based on a regular, sustainable rhythm.

By having a handful of quality articles in queue, you can more easily keep to your schedule. And, of course, while you are waiting to publish those new articles, you can brainstorm new ideas and write those articles so that you always have fresh content at the ready.

Maintaining a schedule helps ensure that you do not publish new articles either too infrequently or too frequently but instead maintain a steady stream of quality content so that your readers know when to expect new articles and remain engaged with your blog.

4. Keep it short and sweet.

One concern I often hear voiced when I speak with clients about blogging is that they fear they will not be able to maintain a regular rhythm of publishing because of the time it takes to do so.

Yes, writing blog content takes time, but if you’re doing it right, it’s not as much as you might think. Blog articles do not need to be lengthy to be effective. In fact, short articles that are very sharply focused and easy to read are often the most effective and popular articles you can write.

By keeping articles short in length but high in quality, you can publish great content with much less of a demand on resources than you may have initially expected while still realizing the value that fresh blog content brings to your site.

5. Enlist help.

Another way to minimize the time impact of creating new blog content is to spread the workload around. If only one individual in your organization is tasked with authoring articles for your blog, then the entire burden of maintaining your publishing schedule falls on their shoulders, which means you also have a single point of failure if their other job responsibilities start encroaching on their available time for blogging. If you have a team of authors, however, then the impact on any one individual is minimized.

In addition to the benefits of sharing the responsibilities, having multiple voices represented on your blog also brings much needed variety to its content. Different authors bring different ideas, expertise and perspectives to the table, helping to create a more well‐rounded blog. Plus, if your organization offers a variety of services, then having experts who can cover a wide array of subjects will give your blog relevance to a broader audience.

When enlisting authors for your blog, look for those with distinct voices that will bring something new to the site as well as those who are enthusiastic about writing and eager to contribute.

You should also seek out those aforementioned subject matter experts in your organization. Many people are hesitant to recruit these experts to write – often because they are so valuable to an organization that pulling them away from their “real work” is seen as counterproductive. This could not be further from the truth. The reality is that these subject matter experts have a perspective that others do not. Remember, you want unique, relevant content that will resonate with your audience. What better way to achieve that goal than by turning to those who know it best? As an added bonus, when your readers see that you have true experts at work behind the scenes, your business and your brand as a whole will benefit from a boost in reputation.

6. Embrace current events.

Timeliness can be important in blog articles. When a topic is current, it is often relevant and being actively sought out by interested readers. Therefore, creating blog content that addresses those current events and latest development can be a great way to add articles to your site with information that others are talking about and looking for right now.

If you are consistently on the lookout for relevant current events that you can build content around, and you are also answering frequently asked client questions as covered earlier in this article, then you are well on your way to ensuring you never run out of possible ideas for new blog content.

7. Get ready to share.

If publishing timely, relevant and unique blog content is step one in building and maintaining a successful blog for your website, then promoting that blog content is a logical step two.

Great content will get found, but can do a lot to facilitate this process by promoting it. Yes, this means letting your connections on social media know about a new article once it is published, but just posting a link on your company’s Facebook page is not enough. You also need to also look for more targeted situations where you can share this content.

One example would be to include a link an email exchange you are having with a current client or prospect as a reference point when they ask a question that your post helps to answer. Furthermore, you and your team should become active participants on other websites and forums where the members of your tribe live day in and day out and where you can post links to your articles when appropriate to the conversation (don’t overdo it, of course, or you’ll become a community pariah). Also, by featuring related articles within each post in your blog, you can introduce readers to other content that they may not have been looking for at that moment, but which they will find valuable, too.

Whatever avenues of promotion you use – and you should use a number of different methods – the goal is to spread the word to readers who are looking for the content you are creating.

Watch your hard work pay off.

There’s no doubt about it – maintaining an effective blog is hard work. But with strategic planning and a solid team behind you, you can publish quality content on a regular basis – content that will serve as a powerful catalyst for bringing new visitors to your website and new customers through your doors.