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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Death by Liking

What if you create a good product that everyone likes? What if you keep feeding the demand by making more and more of that product? What if you maintain this endless rinse-and-repeat cycle with what you know works? What if you never stray from the safety of the familiar? How could you not be successful?

Blockbuster brands

Simple math will tell you that you will be successful for awhile – years, even – if enough people like your brand. Therein lies the problem: people like your brand. They choose your product when it's convenient for them. They tolerate it in the absence of a more appealing option. But what happens when you hit a bump in the road? What happens when a new competitor arrives on the scene? What happens when they realize they can live without you? Let's ask Blockbuster, shall we? For years, it was smooth sailing for Blockbuster. At the height of their success, there was a store on practically every street corner. People went there as a course of habit. Going to Blockbuster to rent a movie became as deeply ingrained in our routines as going to the grocery store or the dry cleaner. And it was good to be Blockbuster. That is, until Netflix happened. Suddenly, the idea of driving to a store and paying $4 to rent a movie for a few days didn't seem like such a nice convenience. Driving it back to the store according to Blockbuster's timetable wasn't so tolerable. People discovered they didn't like Blockbuster quite as much as they thought they did. One by one, the once ubiquitous blue and yellow signs started disappearing. No one cheered their departure. And no one felt the sting of their absence.

Apple brands

What if you create a product that some people love? What if those people tell everyone who will listen how great your product is? What if they are willing to seek out your product even when they have to pay more or drive farther to get it? What if they still choose your brand even when someone else comes along with an alternative that is cheaper, newer and flashier? The flip side of that coin is that there will be people who hate you. They'll align themselves with other people who share their hatred. Hating you will become their rallying cry. How do you survive when you've polarized the market? Ask McDonald's. Ask Starbucks. Ask Apple. Hardly anyone is just lukewarm about their fast food preference. For everyone who must have a regular Big Mac fix, there's someone else who will gladly give you an earful about why Wendy's is a far superior choice and they'll never set foot within 100 yards of a McDonald's. You could stage a re-enactment of West Side Story with the Jets who take pride in bearing the white cup with the green seal and the Sharks who feel their own smug sense of self-satisfaction in sporting the nondescript cup from the locally owned corner coffee shop. For everyone who evangelizes for Apple, there's someone on another message board tearing them to shreds. You don't even have to be a computer geek to have a dog in this fight. There's a reason the "I'm a Mac/I'm a PC" ad campaign resonated with people on both sides of the aisle. If you're a Mac, you're a Mac through and through, and you probably own an iPhone and an iPod, too. The Apple brand is part of your identity.

Make waves or drown treading water

Doing things as they've always been done is comfortable and safe. You're not going to offend anyone. But you're not going to inspire anyone, either. Everyone who likes you one day can be gone the next. But people who love you stand by you. In every industry and in every market, there is the opportunity to be a revolutionary. You don't have to invent the next iPad. You might just develop a network of trustworthy, reliable home maintenance professionals that can be reached with one call to one phone number and dispatched to solve any problem that might arise. You might start a car-buying concierge service that saves your clients the hassle and guesswork of negotiating a car deal. You might bring an authentic 24-hour French bakery and cafe to a mid-sized southern city. Everyone who likes you one day can be gone the next. But people who love you stand by you. Give the tribe of people who share a passion for what you do something meaningful to rally around. Show them that you understand them and you care about meeting their needs. Draw a line in the sand. Demonstrate what you stand for. Be equally proud of what you are and what you are not. Be bold. Be unapologetic. Be arrogant if that's what it takes. It shows passion. It shows conviction. It's better than being imminently forgettable. Let go of the safety net of liking. Make waves of love and hate. You'll make the choice for your customers an easy one every time.

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From Panda to Penguin: How to Practice Safe SEO Today

Anyone who has had some exposure to the internet knows the importance of Google. After all, as the world's single most important search engine in terms of user base and popularity, Google wields considerable power to make (or break) any website.

Time and again, Google makes changes to its SEO algorithm, in order to improve its search functionality and usability. Thus, while earlier it was an attack on paid links, last year Google came up with the Panda update that effectively tackled websites which were mere content scrapers or low-level affiliates.

While the impact and implications of Google Panda have been discussed all across the internet multiple times, certain newer changes in SEO algorithm are still relatively lesser known. In this article, we focus on the newest change – the Over Optimization Penalty, and how to tackle it.

What is it about?

To quote Google's Matt Cutts, certain websites are often built keeping search engines in mind, and thus many SEO folks have sites that are “over optimized”, or in other words, “overly SEO-ed”. In short, the axis mundi of Over Optimization Penalty is to target and punish websites that focus more on SEO and less on content quality.

Yes, that's right. With search engines controlling a good deal of incoming traffic for almost any website, many site owners publish content keeping Google and Bing in mind, not their website visitors. In other words, SEO becomes the King, while content takes back-seat. It is this very practice that Google's recent Over Optimization Penalty patch aims to hit at. The motive is to “level the playing field” and crawl websites that offer quality content, not quality SEO.

How does it affect me?

Before going any further, let me present you with (my version of) a handy guide to Search Engine Optimization.

At the most basic level, SEO deals with analysis of data related to your website, so that you can assess what interests your website's visitors the most, what makes them visit your site, which topics are popular (and which aren't), and so on. Once you have such data, you can optimize or tweak your website to provide your visitors with information that they prefer, and avoid information that they don't like.

For instance, say, you are running a website about coffee. Now, you notice that most visitors to your website come by searching for terms such as “how to make awesome coffee”, and not “utensils for coffee”. Thus, you can focus more on preparation guides for coffee, rather than offering advice about purchasing coffee mugs. Similarly, you realize that your visitors are keen on knowing about the production of coffee all across the globe, and you can further provide such informational articles.

This is where over optimization comes into play. In your bid to get more and more visitors, instead of simply providing awesome coffee-related articles, you may also resort to repeatedly offer technically similar or 'SEO-friendly' articles about the history of caffeine, which may or may not be totally useful.

Good SEO is about content, proper coding standards and information hierarchy, and definitely not just about extra keywords.

So what should I do?

Avoid excessive usage of keywords.

The crux of the Over Optimization Penalty is to promote websites that do not play a handicap match by relying on keywords more than the actual content itself. Of course, keywords still matter – but you should not stuff them or fall prey to the 'keyword density' gimmick.

Avoid unnecessary "networked" links.

Let's say you have 10 websites, and you've created a 'network' out of them. Now, if only you can cross link within this network of websites, your traffic will increase – after all, users visiting the first site will be like, “Hey there's more to this network. I gotta visit 'em all!” Right? Sadly, not anymore. Google has been going tough on websites that are abusing interlinking.

Avoid backlinks from uncanny locations.

In other words, avoid link spam, period.

Avoid spending days and nights to 'comprehend the algorithm'.

Do not create content that satisfies Google's search algorithm – instead, spend time creating content which meets the expectations of your users. Google will automatically follow suit and take notice of your hard work. Surely, many SEO experts can claim to give you instant traffic boost and content promotion – but rarely do such tricks work in the long run.

Update your old posts and articles.

If your website has older articles and posts which have a good rank in terms of SEO, it is worth updating them – not necessarily a re-write, but check for broken links, outdated information, etc.

Build links the proper way.

Yes, properly employed link-building techniques can be effective in promoting your website. Certain measures such as writing guest posts and posting relevant comments on websites that are similar in genre to yours can be fruitful.

Implement a healthy on-site strategy.

It goes without saying that simple and clean code, along with validated HTML and CSS promotes better crawling of your web pages. Also, it makes sense to employ plugins and methods to make your pages load faster. Good load times almost invariably lead to better traffic. Similarly, HTML5 and responsive web design are the way to go, like it or not!

Employ social networking.

Websites such as Twitter and Facebook are ideal for viral campaigns – this is a well known fact. Further more, just in case you haven't noticed, Google is now keeping social networks in mind when assessing the importance of a website – in any search page, you can see the +1 buttons under each result, thereby allowing users to like or dislike a website in one go. Naturally, you'd not want to miss out on the social networking front.

Keep track.

Google itself offers a plethora of tools to aid you in your quest to promote your website – for instance, you can consider using Google Analytics and Google Webmaster Tools to your advantage.

Follow the golden rule of good SEO

So, what's the final word? Well, it's pretty simple, actually – Google is trying to offer search results that are clean of subpar content. Your best bet is to create content for humans, not search engines, so make sure you always write for people, not crawlers.

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