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.

Is Your Website Ready for the Tablet Revolution?

The revolution is here.

When Apple launched the iPad last year, it carved out a new category in the mobile device marketplace. With the release of the iPad 2 and newer challengers like the Motorola Xoom and the Samsung Galaxy now joining the fray, the market continues to heat up as more and more users opt to perform everyday tasks like browsing the Web, sending email, watching videos and playing games on tablet devices rather than their desktops, laptops or netbooks.

In fact, according to a recent study conducted by Nielsen, 35 percent of tablet owners polled said they now use their desktop computer less or not at all while 32 percent of respondents said the same of their laptop. The top five reasons cited for preferring the tablet over a desktop or laptop were portability (31 percent), easier interface (21), start-up speed (15), convenience (12) and size (12).

Additionally, Forrester Research forecasts that tablet sales in the U.S. will continue to climb sharply, from 10.3 million in 2010 to 24.1 million in 2011 to 44 million in 2015. The firm also projects that by 2015, 82 million people in the U.S. will own a tablet, a figure which represents one third of the total online population.

What do these numbers mean for you? With each passing day, the likelihood that consumers will be interacting with your brand via a tablet rather than a desktop or laptop is increasing. As we demonstrated previously, not all brands can or should release a native app, and even if you do, you shouldn’t neglect those users who will be surfing your primary site on a tablet-based browser.

As a result, it’s up to you to make sure that your website evolves to provide these users with a high-quality, hassle-free experience, or else you’ll risk losing them to competitors that do.

Here are nine critical elements you must examine now to make sure your site will continue to serve the needs of your customers and support the growth of your business in the era of the tablet:

Balance of content vs. interface

Tablet screens are much smaller than desktop or laptop screens, yet the primary use of tablets is for consuming content. Therefore, it’s important to make sure that your website’s interface is clean and clutter-free so that you make optimal use of the available real estate and allow your content to take center stage.

Typography

The type on your website must strike a happy medium for tablet users. If it’s too small or condensed, it will be illegible without zooming in. If it’s too big, users will be forced to scroll more than necessary.

You must find the ideal balance of font face, font size, line spacing and line length so that your content is pleasant and comfortable to read at the distance at which a user would naturally hold a tablet.

Color and texture

Color and texture are more than cosmetic niceties. When applied in strategic ways, they can go a long way toward improving the usability of your site for tablet users. For example, a subtle gradient on top of a button can provide a visual cue to users that it is an actionable object.

Keep in mind as well that with tablet users, you’re fighting finger smudges and glare for visibility. Bright background colors and patterns can reduce interference from these elements, while solid black tends to make them more distracting.

Buttons and links

When it comes to the tools your visitors use to travel around your website, size matters.

For tablet users, the clicking and scrolling of a mouse are replaced by touching and swiping gestures. As a result, navigation actions are less precise on touchscreens. You must allow a greater margin of error by creating buttons that are the size of a fingertip rather than a cursor.

Also, make sure to allow a little breathing room around your buttons and links, especially those that live in your site’s main navigation. Nothing will frustrate a user faster than being directed to a different page than the one they wanted because your links are crammed together too tightly.

Interface cues

If your website’s interface currently relies heavily on rollover effects, you’re going to be in trouble on a tablet. In the world of the touchscreen, there is no such thing as a hover state. If, for example, you have “previous” and “next” buttons that appear only when the mouse is nearby, those elements will be unavailable to your tablet users.

To create finger-friendly navigation, all elements must be big, bold and obvious. Replace buttons that require users to mouse over them to get a sense of action with style enhancements that draw attention to their “pressability.”

Menus

If your site contains drop-down menus, make sure there are visual cues (such as small up and down arrows) to indicate that the menu is expandable and that the menu remains open on tap.

Alternatively, you might consider streamlining your navigation to eliminate the need for drop-down menus altogether. Instead, you can create a showcase page for each main section of your site that acts as a gateway to the subpages contained within.

Scrolling

Screens on the tablet devices that are currently on the market range from approximately 7 to 10 inches and allow viewing in both vertical and horizontal orientation. As a result, there’s no way to be able to accurately predict what a tablet surfer will see without having to scroll.

The good news here is that tablet device users expect to scroll – not just vertically but horizontally as well. There’s no need to worry about trying to force all your important information to fit “above the fold.” Clean, streamlined design that promotes easy content consumption is the name of the game.

Forms

Many of the most critical interactions between your website and your customers occur through forms, whether it’s subscribing to email updates, requesting more information, logging into a secure account or completing a purchase.

Examine your forms closely to ensure that all fields render clearly. Also, make sure your forms are as streamlined as possible. Trying to complete a long form with many fields on a tablet is cumbersome. While the marketer in you wants to collect as much data as possible from your site visitors, the danger of requiring users to complete too many fields is that they’ll get frustrated and give up, leaving you with no data at all or, even worse, a potential sale lost.

Flash

Apple’s iOS does not – and probably never will – support Flash. Android does support Flash, but the performance of Flash content on Android devices thus far has been less than ideal.

If you have Flash anywhere on your site – whether it’s in the introduction to your site, your navigation menus or video – get rid of it now, or else your tablet users will be plagued with problems. Today there are better, more tablet-friendly options available, such as HTML5 and JavaScript, that can replicate the same effects that once required Flash.

When in doubt, test it out.

The only way to be confident about how well your site performs on a tablet is to put it through the paces on actual tablet devices. While there are some web-based simulators, they aren’t 100 percent reliable since they are ultimately limited by using your desktop browser to render your site.

If you don’t already own a tablet, borrow one or – if all else fails – make a trip to your local retailer and use the display models there.

Be sure to evaluate every element and every page of your site carefully. If possible, recruit other friends, colleagues or family members to do the same, and observe them as they navigate through your site. Because they aren’t as intimately familiar with your site and its nuances as you are, they may uncover stumbling blocks that you might have overlooked.

If you identify any problem areas, seek out the help of a trusted website design firm to address them. While you may have to make an investment in upgrading the infrastructure of your site, it will be money well spent to make sure current and prospective customers can access your site on their device of choice – which is more and more likely to be a tablet.

One Year Later

Today, there is freedom in marketing. No longer is the loudspeaker of the media controlled by a select few. As a result, so much more can be gained than ever before, all with fewer resources and less risk. The playing field has been officially leveled—and not a minute too soon.

With those words, we launched the first Fame Foundry Magazine and began leading a revolution.

Recognizing that the world of marketing is riddled with misinformation and con artists, we set out on a mission to cut through the static and get to the truth of the challenges of growing business today.

Each month we bring you articles that cut through the muck of jargon, myths, speculation and the outmoded ways of old marketing to give you the clarity and perspective you need to thrive in today's marketplace. As we mark our first anniversary, we take a look back at the fundamentals of new marketing that we’ve established over the past year.

The end of marketing as we knew it

Prior to the advent of the Digital Age, our culture was based on a handful of media. Television, print and radio were the anchors of mass information exchange and business promotion.

As a result, if you owned a business or were charged with growing a company, you were shackled to promotional entities such as television commercials, newspapers and the Yellow Pages.

Those days are long gone, and those systems are now dying. In their place are unlimited channels of conversation not only between one person and another but between people and business.

No longer does mass media claim a chokehold on the lines of communication between companies and customers. No longer are information gathering and sharing the exclusive domain of mainstream news organizations. No longer are consumers willing to passively absorb the web of lies concocted by marketing’s spin doctors.

Today the means of communication have been revolutionized, and the old methods marketing to the masses have been rendered ineffectual.

Read more:
Prying the Torch From the Dead Hands of Old Marketing

All hail the virtual agency

The only thing deader than old marketing is the traditional agency, and its business model is in the grave right along with it.

Today's marketplace is ruled by survival of the fittest. It's time to get faster, leaner, smarter and more agile, and marketing agencies are no exception to this rule.

The new marketing company is one that hasn’t forsaken business principles that are timeless but takes advantage of all that’s afforded by today's technology to shave off unnecessary expenses.

OUT: Deals with a select few in a position of control.

IN: True, choice-based media, entertainment and communications.

OUT: Expensive payments to big, traditional, bureaucratic agencies that still attempt to use carpet-bombing tactics to grow your business.

IN: Fresh and nimble development firms who know how to build a brand and grow a following around it using today’s communication systems.

OUT: Paying the price for enormous overhead expenses for big buildings and lavish offices filled with excessive personnel.

IN: Virtual and hybrid marketing firms that work fast and don’t pass the bloat of unneeded expenses on to their clients.

OUT: Working through layers of costly production managers, account executives and supervisors before you get to the people that really do the work.

IN: Having access to the key architects and creative talents who are integral to the ideas and concepts essential to your success.

Read more:
10 Things You Pay for From Traditional Marketing Agencies

If marketing is dead, what's next?

Getting and keeping customers is what it's all about. That much hasn't changed. What has changed is what's needed to achieve it.

Gone are the days of growing your brand by marketing to the masses. Today’s consumers are disengaged from commercial culture as we once knew it, disenchanted with marketing’s shallow messages and misleading claims and disillusioned by promises unfulfilled. Instead, they are ever in search of the authentic. They are driven to seek out companies they can believe in and to identify themselves with brands that inspire them.

In a world of unlimited channels of communication, loyalty is no longer a commodity that can be bought rather than earned. In the new millennium, trust has become the currency of a marketplace driven by the consumer, and the new way to grow business is through trustcasting.

Simply put, trustcasting is the ongoing process of building and maintaining trust between a business and its customers. The practice of trustcasting requires that any and all resources dedicated to the promotion of business be directly or indirectly founded in trust.

Trustcasting approaches customers as people, not numbers. For those ingrained in the old practices of mass marketing, this represents a daunting ideological shift, but the task of earning and keeping trust cannot be reduced to statistics or demographic segments.

Recognizing word-of-mouth as the primary medium by which today’s customers are won, those that practice trustcasting engage in two-way communication with their customers on a human level, demonstrating genuine respect and value for their time and attention. While this approach undoubtedly requires a more significant investment in time and resources than traditional marketing, the return — cultivating a community of evangelists around a brand – is also much more profound and lasting.

Read more:
Put Away the Smoke and Mirrors
The Trust Manifesto
Goodbye, Marketing. Hello, Trustcasting.
10 Resolutions for Success in 2010 and Beyond
10 Keys to a Successful Marketing Partnership

A brave new world

In today’s marketplace, the Web is where customers are won and businesses grow.

It starts with a great website – one that has successfully confronted and conquered the challenges of providing a beautiful interface, engaging content and utility beyond your primary offering. However, even the best site is only the first step; it’s the foundation upon which you can start to develop a community around your brand.

Once you’ve launched your site, you’ve effectively set up shop and opened the doors. That’s when the real work begins.

To get and keep customers, you must master the Web marketing universe beyond your own site. You must actively seek out those whose needs, desires and interests align with the products or services you offer, draw them in and engage them in conversation.

While it may initially feel like daunting and unfamiliar territory, the key to navigating this new landscape successfully is to ensure that all of your efforts are driven by the motivation of establishing and keeping trust. As long as you always follow the principles of trustcasting, you will inevitably turn contacts into customers, customers into fans and fans into evangelists, all while cultivating a vibrant virtual community.

Read more:
The Web Marketing Universe
On the Right Path
Best of Charlotte Website Design
The “No Duhs” of Social Media
10 Principles of Trustcasting in the Web Marketing Universe

Be yourself or be nothing at all

It’s a mantra worth repeating: People follow people, not companies.

PR done right in today’s marketplace is about people. Cultivating a fan base and creating rich relationships with your public requires that you drop the corporate mask and be a real person.

The public has no affection for the face of corporate America. No one wants to see standard form-letter responses and press releases on Facebook, Twitter and the like.

You must stop being corporate and start representing your brand on a personal level. Be real, flaws and all. Be prepared to be honest through and through. Share your time, your action and your help. Be present every day – accessible and responsive – without fail.

If you try to play it safe and fabricate a personality that shows the world the face you want the public to see, this artifice will be found out quickly. No one will invite you back to the conversation. In fact, you will be banned from the conversation.

By contrast, engaging in real relationships creates fans. Fans are more than just loyal customers; they are brand evangelists that do your marketing for you.

Read more:
The Cult of Personality (Part 1)
The Cult of Personality (Part 2)
Breaking Boundaries

The Age of Tribes

Behind every major movement and successful marketing engine there is a tribe.

What is a tribe? Simply put, it is a group of people that connect around a common goal, shared passion, similarities in background or a need for solutions to improve their lives.

The facts are simple: if you want to grow and thrive in today’s marketplace, you must identify, become a member of and lead the tribes that are relevant to your business and your bottom line.Your organization, your business operations and your products or services must be shaped by and around the tribe.

Tribes are ready and waiting for the next big thing that is going to solve their problems, meet their needs or make their lives better. If you’re the one that delivers that idea, they’ll rally around you, spread your message like wildfire and fan the flames of your success. The power and influence you command as the leader of your tribe is unrivaled by any form of traditional advertising.

Read more:
Tribes in Today’s Marketing
Mastering Tribe Marketing
Shaping Business for the Tribe

Following the leaders

If you need living proof that the rules have changed, look no further than the Fame Foundry Podcast. Each month we spotlight the people and companies who are leading the way in setting new trends and redefining how business is done today.

Take, for example, best-selling author and video blogger extraordinaire Gary Vaynerchuk. When it comes to the gospel of personal branding, there is perhaps no one so well qualified to preach as Vaynerchuk, who has not only turned his family business into $60 million-a-year wine empire but has cultivated a following of more than 100,000 for his daily video blog.

For a true testament to the power of Twitter, we introduce you to Comcast’s Frank Eliason – the man behind the Internet’s most advanced social media-based customer service program. Eliason has achieved the impossible by lending a human voice to the cable giant and transforming formerly dissatisfied customers into brand evangelists.

Then there’s the inspiring story of Amélie’s French Bakery in Charlotte, N.C., which defied the unfavorable odds of launching a new restaurant in the midst of an economic downturn by cultivating a reputation for authenticity and a fiercely loyal community of ardent evangelists.

Perhaps you are sold on the importance of social media platforms like Facebook and Twitter, but you’re still dubious of the value of viral video. Meet self-proclaimed “Internetainers” Rhett & Link, whose reputation for creating highly popular video content has brought major brands like Cadillac, McDonald’s, Coca-Cola and Starburst to their doorstep.

Read more:
Gary Vaynerchuk: Profit from Your Passion
Comcast’s Frank Eliason: Creating a Better Customer Experience One Tweet at a Time
Amélie’s French Bakery: Staying True to Success
Rhett & Link: The Business of Viral

More to come

The revolution is far from over, and Fame Foundry is just getting started. Keep reading for more intelligence on the new rules for business growth and what it takes to compete in today’s marketplace.