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.

---

The Next Big Thing in Website Design: Wearable Technology

5 years ago, if you would’ve told me that people would be using mobile phones with tiny screens to access website content, I would’ve said that you were crazy. Obviously, I would have been quite wrong.

Today, I have clients who see more than 50% of their traffic come from mobile devices. The rise of those devices has changed the web design industry more so than any other thing I have seen in my 15+ years of designing and developing websites. Today, I see some of the signs I saw at the start of that rise in the growing popularity of wearable devices.

In this article, we will talk about what these wearable devices are, how they are used, and how their adoption may affect your business and your website.

What are wearable devices?

As the name suggests, “wearable devices” are ones that consumers actually wear on their body, as opposed to ones that they simply carry with them like a smartphone. Popular wearable device examples would be smartglasses, like Google Glass, and smartwatches, like the Moto 360 from Motorola or the forthcoming Apple Watch.

Each of these devices allow users to connect to the Web and access online content, and all of these devices feature screen sizes that are much smaller than what you will find on current smartphones. If you thought that it was a challenge to get your website content to be effective for a mobile phone, think about that same task now applied to an even smaller form factor!

It is that smaller form factor that is often given as a way to dismiss wearable devices ever being used to visit websites. Many people question whether a person would even want to access web content on those small screens. This is the same argument that was made early on in the rise of mobile devices like smartphones. The problem with this thinking is that it assumes that the wearable device is being used on its own, when in reality, the strength of these devices is how they connect as part of a larger ecosystem.

A connected ecosystem

Recently, we have been testing and experimenting with some wearable devices in our offices, including the aforementioned Moto 360 smartwatch and Google Glass. While these devices are amazing and powerful in their own right, they really begin to shine when they are paired with other devices, like a smartphone.

Yes, the tiny screen of a smartwatch makes reading long blocks of content or doing data entry on a webform uncomfortable, but those tasks can easily be bumped over to a connected smartphone. The watch can be used to filter this information. Instead of digging into my pocket to get my phone to check my emails or view online updates, I can more easily scan that information on the watch. Then, once I have identified something that requires my attention, I can switch to the phone, a tablet, or even a laptop of desktop computer to complete that task. In this way, I am using each device for what it does best – and both of them are accessing web-based content.

By connecting devices, you can also create actions or “triggers” based on certain parameters. For instance, in our testing we were able to take a picture with Google Glass and automatically publish that image to our Twitter account. Pretty cool, but we wanted to really take it a step further and see how far we could push this concept of connected devices and automatic actions. To do this, we purchased a MindWave headset from Amazon.com. This device measures brainwave activity. By using Bluetooth to connect that scanner to Google Glass and a smartphone, and with a little additional programming, we were able to create triggers that activated when certain thresholds were met. The first of those triggers caused Google Glass to snap a photo. The next trigger posted that photo to Twitter. These “triggers” were activated when the brainwave scanner sensed a change in a person’s brainwave patterns. We were able to demonstrate the process of automatically taking a photo and uploading it to social media – all with no input required other than changing the way we think.

Admittedly, this demonstration was a bit over-the-top by design. I do not expect consumers to start running around with brainwave scanners anytime soon, but the lesson here is that these devices, when connected as part of a larger ecosystem, can become so much more than the sum of their parts. As website owners, we really need to stop thinking about devices on an individual basis and start considering them as part of a larger whole.

Embracing the concept of "one Web"

When smartphones began to really gain popularity, companies realized that they could no longer ignore mobile by simply allowing their “normal” site (which was created to be used on a desktop computer, not a smaller handheld mobile device) to be sent to those phone screens. The solution that many companies embraced during this time was to create a separate “mobile-only” site for visitors using a smartphone. This solution became strained as tablet devices entered the market next.

Technically considered a mobile device, but with a screen size closer to a laptop than a phone, tablets really forced companies to question this “separate sites” approach. Yes, you could create one site for large, desktop monitors and another for mobile phones, but would you now create one for tablets –

leaving you with 3 sites to manage and maintain? With the rise of wearable devices, will you need to create a new site for each distinct wearable category? That is a long and expensive road to travel.

The desire to have only one website to manage and maintain has led to the adoption of responsive web design as an industry best practice. Responsive web design allows you to have one website that will automatically change its layout based on the user’s screen size. This was helpful when we had to consider mobile phones and tablets. With the rise of new wearable devices, this concept of “one web” is even more important.

If you intend to develop separate sites for each possible screen size, you will always be playing catch-up. As new devices enter the market, you will need to create a new site for each device type, which means you need to endure the time and expense of constantly rolling out new sites. This can quickly becoming overwhelming.

The reality is that there is no “mobile web”, there is just one Web and as the emergence of wearable devices has shown, our customers are using a variety of devices to access that Web and the content we put out there.

To do now

As wearable devices go from a novelty being used by the few to a way of life for the many, we want to make sure our sites will be ready. Don’t think wearable devices will ever be popular with consumers or used to regularly access web content? Again, that is exactly the argument that was given when smartphones first began gaining popularity, and we can see how that turned out. No, the question of wearable devices is not “if” they will impact our websites and audience, it is “when” they will do so.

If you have not already embraced the “one web” approach on your website, now is the time to really start exploring that option. You can begin by testing your website out on a variety of devices. If you have the ability to purchase these devices at your business, that is great, but even if you do not have the budget for devices purchases, you can still test your site on them. Visit your local Best Buy or other electronics retailer and see what new wearable and mobile devices are available today. Access your website on those devices to get a feel for what your customers may be seeing if they are visiting your site with similar devices.

You can also speak to your web or marketing agency about the rise of wearable devices and how to best prepare your site for them. By being proactive about wearable device support on your website, you can be a leader in the rise of these new devices, instead of a company trying to play catch-up after the fact.

 

---

Flex Your Expertise

As one charged with growing a business, there is undoubtedly always one question lingering in your mind: where's my next lead going to come from? Would you believe that sharing just a few minutes of your time and your expertise each day could inject new life into your sales pipeline? The answer is Answers – that is, LinkedIn's Answers forum. Designed as a platform for professionals to exchange expertise, this lesser-known feature of the LinkedIn network can be found under the "More" menu options in the top navigation bar. If you already have a LinkedIn profile, using the Answers forum to attract new leads is easy as 1-2-3:

Step 1: Do your homework.

As with any social media network, it's important to get a feel for the lay of the land before you dive right in, so invest time up-front familiarizing yourself with the LinkedIn Answers forum community. A good place to start is by perusing the leaderboards of top experts in the categories that relate to your business. Click the "see all my answers" links next to these members’ names, and look for commonalities among the answers that were chosen as best. You might even want to test the waters a bit by asking a good question or two so that you can gage the type of responses you receive. Also, if it's been a while since you established your LinkedIn profile, now's the time to dust it off and give it a polish. When you become active on the forums, it's likely that many new people will click through to your profile to qualify your expertise. Make sure you deliver a strong first impression by reviewing each area of your profile to confirm that it is complete and up-to-date. Sharpen the language you use to describe your experience and specialities so that it is precise and powerful. If you're active on Twitter or you have a blog, you can even add applications that will automatically publish your latest tweets and links to your most recent posts on your profile.

Step 2: Turn on your radar.

Once you feel comfortable with the inner workings of the Answers forum, it's time to start looking for opportunities to participate. Questions posted on the forum are divided into categories, from administration and business operations to sustainability and technology, and these broad topics are further subdivided into more specific areas of interest. Don’t try to keep tabs on every question asked. Instead, focus your efforts on the categories that are most closely related to your areas of expertise and where your prospective customers would most likely be active. A great way to streamline this process is by subscribing to the RSS feeds for your chosen categories and setting up a folder in your reader of choice where they can be collected in one location. Rather than having to waste time every day clicking around the forums to browse each category of interest to you, questions will be delivered directly to you in real time. All that's left for you to do is make a quick, efficient scan of your feeds folder once or twice a day to find a few open discussion threads where you can contribute helpful, practical advice.

Step 3: Share your expertise.

When you identify a question that presents an opportunity for you to add something meaningful to the conversation, simply click through to the corresponding discussion forum page, hit the yellow "Answer" button, compose your response and submit. There's no need for a hard-hitting sales pitch. Just talk about what you know with ease and authority. As is true throughout the social media universe, be authentic and allow your personality to shine through in your answer. While you'll want to be conscientious of your spelling and language and maintain a professional demeanor, your response should come across as friendly counsel from a trusted advisor, not an encyclopedia entry. Imagine that the person who asked the question is standing right in front of you, and keep your answer conversational in tone and free of off-putting technical jargon. Be generous with your expertise, and don’t fret about giving away inside secrets. By demonstrating your depth of knowledge and familiarity with the subject at-hand, you'll boost your chances of someone seeking you out to continue the conversation one-on-one. The more personalized you can make your response, the better. Take a few extra moments to review the profile of the person who posted the question. Use the information available to you to custom-tailor your response to their needs. You'll score extra points if you can give a specific example that is relevant and useful to them in their industry or job position. You can also supplement your answer by including links to other web content that might be helpful to anyone who would like to explore the subject further. If you publish a blog, this is an excellent opportunity to link to posts that offer more information about the topic in question. While there is an option to reply privately to the LinkedIn member that asked the question, it will serve you better to post all your answers publicly. By making your response available to anyone who might be interested in the same topic, you'll maximize your exposure to prospective customers and increase the likelihood of reaping good leads from your efforts.

Elevate your profile

As you continue to contribute to the community, your efforts will begin to compound themselves. As an active participant in the Answers forum, you'll elevate your visibility on LinkedIn and gain exposure to members who might otherwise have never had occasion to encounter your profile. Over time, if you consistently provide authentic advice that is sound and not self-serving, you'll develop a reputation as an expert in your field. People will reach out to you based on the depth of your knowledge and the generosity of time and attention that you demonstrate in your answers. Moreover, when one of your answers is selected as best by the member who posted the question, you'll receive special recognition on your profile as an expert in that category. This is a great form of peer validation – an invaluable commodity in any online community. The more best answers you earn, the higher you’ll appear on the leaderboard of experts in your category, giving you an added boost of credibility. Do yourself a favor and check out the LinkedIn Answers forum today. With over 75 million LinkedIn members worldwide, you won't run short of potential leads anytime soon.

---