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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The Gathering: Social Marketing, Old School

The brave new world of Web 2.0 offers a wide array of platforms that allow businesses to connect virtually with the people who want what they’ve got. But long before the advent of the Social Web – before anyone had ever heard of Twitter, Meetup, Craigslist or Facebook – social marketing flourished. From Tupperware parties to trade shows, whether in living rooms or convention halls across America, people came together in gatherings to connect with products, sellers and other customers like themselves all at once. And while today’s culture of hyper-connectivity has dealt much of traditional marketing a fatal blow, the gathering has stood the test of time. In fact, social technology has given new life to the gathering. No longer confined to fixed time slots or venues, the content and conversations of events now live on in perpetuity through social media, event-specific websites and online video. It’s important to make sure that gatherings have a place in your marketing arsenal.This relationship works in the other direction as well. As communities form around common interests on the Web, real-world gatherings are a natural extension of members’ online interactions. Like a handwritten note in the age of e-mail, the face-to-face connection has become a rarefied, premium experience in a time when virtual connectivity is always only a finger-swipe away. For these reasons, it’s important to make sure that gatherings have a place in your marketing arsenal and that you’re investing time in engaging with your tribe of followers offline as well as online.

"Ideas worth spreading"

A recent gathering I attended began like a bad joke: an artist, an engineer and a socialite walk into an auditorium. This time, however, there was no punch line. Instead, I was participating in a TED event, and the room was electric with the pre-show buzz of right and left brains, liberals and conservatives, vegans and slow-food carnivores wearing “I ♥ Meat” t-shirts. For decades the famed TEDTalks have brought together artists, angel investors, designers, doctorates, engineers, entrepreneurs, communicators and community leaders, all in pursuit of one common passion: “ideas worth spreading.” With its famously short talks (25 minutes or less), TED is a petri dish for innovation, and most followers would sever their right arm to attend the invitation-only conference in Long Beach, California. Historically, the group met in druid-like seclusion. But with the ascension of new leadership came a new vision: world-changing ideas should actually be shared with the world. The arrival of online video gave TED a second, virtual life, and in the early 2000s, TED.com began offering free access to full-length videos of its proceedings. For years, TEDophiles like myself have gobbled up this content online while dreaming of experiencing it in person. Fortunately for us, the masterminds behind TED realized that ordinary people everywhere have ideas that could change the world, or at least their local communities. So in 2009, TEDx Events were born, with TED lending its name, brand collateral and mission to independently planned and executed local gatherings. In December 2010 alone, 165 TEDx Events were held in 54 countries. I myself became an official TEDster on September 24 at the inaugural TEDxCharlotte, right in my hometown. A dream came true as I sat with hippies and hipsters for one glorious day of ideas worth spreading. As TEDizens like me have discovered, it is the gathering itself that is the holy grail, not just the content and information. The conversations and connections that can be sparked when people meet and share experiences in the real world are deeper and longer-lasting than those that are confined to tweets, Facebook wall posts or even forum message boards.

Gathering your tribe

TED is a shining example of the value of creating opportunities for people to meet and interact with others who share their interests. Identify the commonalities that unite your tribe.However, you don’t need their massive, worldwide following to harness the power of the gathering to grow your business. You just need to identify the commonalities that unite your tribe and orchestrate an event that taps into their shared passions and provides an outlet for engagement. Remember that those who would make the effort to spend time and energy with you are your champions. They are people who believe in – or at least are interested in – your product, service or company enough to bother. You don’t have to dazzle them. But you do have to show up, make authentic connections and give them something of value for their effort. The end result? They will love and trust you more. In order to ensure the success of your gathering, here are some key points to keep in mind:

Bigger isn’t necessarily better

Often, the slicker and more carefully controlled the interaction, the less special the event can feel. Instead, just keep it simple. Invite a handful of your best customers or, if the invitation is open to all, limit registration. This will foster an atmosphere of intimacy and privilege for those in attendance. Most importantly, don’t use the event as a ruse to assemble your followers for a sales pitch. Be genuine and focus on delivering something of real value.

Show what you know

If you’re a service provider, your customers routinely pay for your knowledge and experience. Play to your strengths by hosting an educational gathering related to your area of expertise. For example, a lawyer could offer a free estate planning workshop to recent retirees or present a seminar for small business owners about the implications of recent health care legislation. The payoff for this type of effort is a group of prospective clients who believe in your credibility as a knowledgeable resource and trust in you more than your competitors.

Break out of your box

Perhaps people associate your business with a particular line of services or products even though your catalog is actually much more diverse. A gathering is a great opportunity to shed some light on your less well-known areas of expertise. For instance, a pest control specialist might know as much about protecting garden vegetables from aphids as floor joists from termites. A lecture to the local garden club could open a new niche market hidden from competitors’ view. Likewise, an interior decorator could offer working moms a workshop about organizing with style, thereby becoming the savior of the super-busy.

The power of privilege

Treat your best customers (the ones you or your staff know by name) to a special appreciation event. Give away products and thank them sincerely for being so faithful to you. They will love your company all the more and become even more vocal evangelists for your brand.

Party like it’s $19.99

If your brand or your products already have a fan base, give those fans an excuse to get together and have a good time – all under the banner of your brand. You’re throwing the party. They’re your fans. The conversation will inevitably lead back to you. You don’t have to force it. Think gallery crawls, wine tastings or product launch parties.

For the love of rewards

Oh to be in the audience the day Oprah gives everyone a new car. Most days, though, you’re at least going home with a free book. When you host an event, reward the effort people make to attend by giving away products to those who show up. Better yet, give more products to people who bring others with them. In doing so, you’re not only giving them a no-risk way to experience your product or service, but you’re incentivizing them to spread the word to others as well.

Use the Web to promote your gathering

If you want a large event, invite all your Twitter followers. If a smaller gathering of your best customers is what you’re after, send direct messages to only the most active or influential among them. You can even turn your event into a contest by challenging your Facebook fans to share why they love your products in order to win a place on the guest list. You’ll not only have an instant list of eager attendees, you’ll also reap some great testimonials for later use.

Transcend time and space

When your event is over, share pictures or video online to demonstrate the good time had by all and the value those who attended received. For example, if your event was instructional in nature, offer a recap of the tips that were covered or access to video of a presentation delivered at the event. Get people talking about your event and keep them talking. The important thing is to get people talking about your event and keep them talking – and sharing, and linking to, and blogging, and status updating and tweeting – about what wonderful people you and your staff are and how much value they find in your product, service or expertise.

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How GE and Jeff Goldblum Can Help You Harness Your Light Bulb Marketing Moment

Do you want people to remember your company or your product? One of the ways you can achieve memorability is by using humor. Make someone laugh and you make an impression on them. Make an impression on them, and you are well on your to achieving memorability.

When I speak with companies about the value of using humor in their marketing, the objection I most often hear is:

“Our company / service / product just isn’t funny.”

This is a legitimate comment. After all, some products or services lend themselves much better to humor than others. A website for a company selling inflatable bouncy castles is much easier to make “fun” than an ad for an accounting firm. Still, I believe that many companies are convinced they cannot be funny, yet they have never really tried to do so.

Making light bulbs funny

Would you consider light bulbs “funny”? Probably not, but as a recent ad released by General Electric, and featuring actor Jeff Goldblum, shows, even a product as commonplace as a light bulb can use humor in its marketing.

In the ad, Goldblum plays a fictional “Famous Person” named Terry Quattro who extolls the value that good lighting has had on his career as a way to promote GE’s Link light bulb. The ad itself is hysterical and already going viral. Within days of being released, it was already well over a million views on YouTube. This is humor being used at its finest, but the video also does a wonderful job of promoting the product!

Watch the video and you will find that, between the silliness and humor, the writers have done a great job of explaining the value of these light tbulbs, including a low cost ($14.97) and long life (22 years). By wrapping those important messages along with ridiculous scenes that you can’t help but laugh at, they have created something unique and memorable. If all this ad did was explain the value of the light bulb, it would not stand out in any way, but by using humor, the writers and GE have created a fun spot that also does a great job of selling their product!

Sharing the funny

Besides being memorable, marketing that is genuinely funny also has a great shot at being shared by people who have enjoyed that ad.

After seeing the General Electric video, one of the first things I did was to share it on my social media accounts with my friends and contacts. This is par for the course these days. When someone sees something unique, or interesting, or amazing, or funny, one of their first inclinations is to share it with others. This is powerful because it allows your content to spread faster and reach a wider audience. Unlike online ads that are easily ignored and passed over, a shared piece of content, whether it is a video, an article, or some other kind of content, resonates with an audience in a stronger way. This is because that content is often being shared by someone they know, as opposed to being delivered via a faceless ad network.

If I am looking at my Facebook page and one of my friends shares a video and declares that it is “awesome” or “hysterical”, there is a much greater chance that I will give that content a chance than I will if I see it randomly advertised in the sidebar of some web page.

By using humor in your content, you give yourself a chance at being shared, and by being shared, you give your content the best chance to reach the widest audience.

Focus on the situation, not the product

One of the ways that General Electric was able to make an ad for light bulbs funny is by not actually trying to make the product itself funny. Instead, they created a comical situation and a character that introduced the humor to the ad. This ends up being a much easier road to travel than struggling to make a product like a light bulb comical. By placing that product in a comical environment, they still achieve the end result they want – an ad that makes people laugh and encourages sharing.

The aforementioned objection that “Our company / service / product is not funny” can be neutralized using the same approach that GE did for their Link light bulb. If the products or services your company offer do not naturally lend themselves to humor, think outside of the product’s box and take a cue from how GE solved this challenge.

You are not GE

OK, so one item that must be addressed here is the fact that your company is not General Electric and you likely do not have the resources or marketing budget that they have. GE was able to get writers Tim Heidecker and Eric Wareham, best known for their comedy work on the Cartoon Network’s Adult Swim show, to create this ad. GE was also able to secure the talents of actor Jeff Goldblum for this spot. This company has the ability and money to secure these talents, but if you don’t, will this still work for you? The short answer is yes. While your ad may not have the same instant viral exposure that a Hollywood actor and a team of seasoned comedy writers can bring to the spot, that doesn’t mean you should abandon the idea of humor altogether.

If you work with a marketing or web agency, talk to them about your willingness to try introducing some humor into your marketing. Maybe there is one particular product or service that you can test it with, the same way that GE is using humor for this one product (as opposed to for their entire company). Brainstorm and think outside of your comfort zone a bit to see if you can come up with some ideas that will work for you.

Enhance your lighting

GE’s “Enhance Your Lighting campaign is an excellent example of a company and a product that wouldn’t readily be considered “funny” finding a way to add humor into their marketing. Check out the video and see what you can learn from what General Electric has done here. Connect with your marketing team to see how you may be able to use humor to increase the memorability and shareability of your next campaign idea.

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