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.

---

More Than Meets the Eye: Engaging Website Visitors with a Sensory-Rich Experience

We experience the world through our five senses – sight, sound, touch, smell and taste. The more of our senses that an experience engages, the richer and more memorable that experience is likely to be. Visit a nice restaurant, and you’ll see how that establishment works deliberately to engage all five of your senses. The food will, of course, entice your senses of taste and smell, but its presentation on the plate will also play to your sense of sight – as will the lighting and décor. Consider as well the music being played and the feeling of the fabrics and textures on your chair and table: what kind of sensory response do these things elicit? All of these elements work together in synchronicity to define your experience at this restaurant. When it comes to website design, we have traditionally focused our attention on only one of the senses – sight. While sound comes into play on occasion, it is the sense of sight that we tend to think about first and foremost, as websites have long been considered a visual medium, similar to printed content like books, magazine or newspapers. However, one of the most powerful aspects of the Web is the fact that we can, indeed, engage more of the senses than we can with a paper document. With the benefit of today’s technologies and looking ahead to what the future may hold, we see that we can begin creating experiences that stimulate multiple senses to immerse visitors more deeply in our sites, thereby creating more lasting, memorable impressions. Let’s take a look at how we can use our websites to create sensory-rich experiences and how recent advancements in technology are unleashing new possibilities for how we can engage with our users through the Web.

Sight

Let’s start with the primary sense that has long been associated with websites – sight. Yes, the look of a website is important, and its design is meant to captivate a visitor’s sense of sight. But exactly how we use the tools of visual design leaves a lot of room for creative experimentation and variety. Many sites today employ movement and animation in their designs, whether it’s a rotating carousel of images on the home page, buttons that change color or size when a user hovers over them or embedded video. Amazon’s recently announced Fire phone takes the way that a screen can engage our sense of sight to the next level with a feature called “Dynamic Perspective.” This feature allows users to interface with the content on the screen by tilting the phone in different directions. A simple move of the wrist allows access to shortcuts, opens navigation menus or scrolls the page. This technology has the potential to immerse users more deeply into digital environments with a unique perspective that allows them to look under, behind or around elements on the screen. Currently, these perspective features are being utilized as part of the phone’s native operating system and by a few select apps, but how long before other devices introduce similar features and web designs begin creating pages that can take advantage of different perspectives and dimensions? If movement and animation can attract a user’s attention and engage them through their sense of sight, just think about what this dynamic perspective may be able to bring us in the future.

Sound

Today, the most common way that websites engage a visitor’s sense of sound is through video content. The ability to involve multiple senses in a single experience is a powerful thing, and video content is a perfect example of this principal in practice. By combining visual and audio, video content can accomplish important objectives on a website, whether that’s explaining a complex concept or showcasing product features, While videos are a great example of how sound can be used effectively to enhance the user’s experience, there’s also a dark side to sound on the Web, which, if used improperly, can undermine your site’s success. Just as in the restaurant example we cited previously, background music or sound on a website can help to create atmosphere and mood, but if that sound is too loud, inappropriate or obnoxious, the tone it sets will be a very negative one. Soundtracks on websites, a feature that was popular years ago when many companies wanted immersive Flash-based sites, often backfire. Visitors who may be listening to music as they surf the Web, or those who do not want a website to suddenly begin blaring music at them (perhaps because they are at work or in some other environment where being surprised by audio will be an unwelcome experience) are likely to be annoyed if they get audio content that they did not want or need. Unlike the audio associated with a video that helps engage the user, audio added to create “atmosphere” is rarely used effectively, and you should be very cautious if you decide to go this route. For all audio content on your site, whether it’s part of a video or some kind of music or background sounds, be sure to allow visitors to initiate that audio on their own, and do not surprise them with it. The shock of their sense of sound being engaged unexpectedly is what you want to avoid!

Touch

Touchscreens have been available for many years now, but until the release of the iPod and iPhone, they were not widely used in consumer devices. Today, touchscreens are everywhere. Not only do we all carry around touch-driven smartphones and tablets, but touchscreens are now readily available for laptops and even desktop computers, too. With the rise in the adoption of touchscreens comes the ability to engage our visitors’ sense of touch, allowing them to interface with our site in a more physical way as opposed to only through mouse clicks. This ability to touch our sites allows us to connect with our audience in a literal sense. While most sites or applications currently focus on gestures and movements to scroll pages or access features and content, there are also organizations working on tactile touchscreens that can make interfacing with screens a completely different experience. Looking again at the new Amazon Fire phone and their Dynamic Perspective feature, I can only imagine how powerful an experience we could create by combining that technology with actual tactile sensations on the screen as people interface with our content. Talk about being pulled into a digital environment!

Smell

You wouldn’t think that the sense of smell could possibly come into play on a website, but emerging technologies hint that this may soon become reality. Harvard scientists recently transferred a scent from Paris to New York using an iPhone app (the smell they sent was “champagne and passion fruit macaroon” – yum!). They did this using a platform called the oPhone, a new technology from a company that is “working to bring olfactory wonder to mobile messaging.” Yes, they can actually send smells. The future is here. While this particular technology, which includes more than 3,000 scents, requires the use of specific oPhone hardware, the fact that innovators are actively advancing the possibilities for integrating the sense of smell into the digital world prompts us to think about the kind of fully immersive sensory experiences that might lie just over the horizon. For example, what if a restaurant could transmit the scents of their food as you peruse their website’s menu page. Or what if you were shopping for scented candles online, and you could actually smell each product just as if you were standing in a brick-and-mortar retail store? What if you could take a video tour of a bakery, see the products as they’re being made, hear about how they’re created and smell the delicious aromas of cakes and cookies baking in the oven – engaging sight, sound and smell all at once. Sound unbelievable? It may not be as far off as you think.

Taste

What about the sense of taste? Will we one day be able to transmit tastes through our websites? It sounds crazy, but then again, the ability to project a smell online seems equally implausible until you hear the story of the oPhone. Who knows, maybe one day soon we will not only be able to send the aroma of a freshly baked cookie but also allow customers to sample a taste of that cookie as well. Again, it sounds incredible, but almost all technological advancements seem like wishful thinking until someone figures out how to make it happen.

Looking ahead

Who knows what the future holds, but I for one am excited to see how we will be able to expand our ability to engage our website visitors’ senses to create more powerful – and certainly more memorable – user experiences.

---

The Who, What, When, Why and How of Successful Email Marketing, Part II

Email marketing: it’s not the newest, shiniest weapon in your business growth arsenal. But there’s no denying that it’s still a highly efficient and cost-effective way of communicating with your existing customers as well as new prospects. But don’t let the low barrier to entry lull you into a false sense of security. There are certain fundamentals you must follow if you want to create a campaign that captivates and motivates versus one that is ignored and condemned to the trash folder. In part one of this series (http://www.famefoundry.com/11041/the-who-what-when-why-and-how-of-successful-email-marketing-part-i/), we examined the quality of the recipients to whom our campaigns are sent and solidified a strategy for when and why to send them to ensure that we do not overwhelm those recipients with messages that are unimportant or unnecessary. Now, we’ll turn our focus to the remaining two fundamentals of email marketing success: what we will say and how that message will be delivered.

The How

No matter which email marketing platform you use to create and send your campaign, all include templates that provide designated areas for content that can be easily edited. The issue with these templates, of course, is that they are, well, templates. As a result, when you use them, you run the risk that your emails will look nearly identical to others that your customers receive, and simply adding your logo is not enough to create real differentiation. As a result, used as-is, they can make your marketing campaigns look cheap and unprofessional. This is why customization is a must. All of these email templates are built with HTML, the same programming language used to construct websites. Behind the scenes are code and images that can be edited to create a more custom-tailored look and feel. Due to the highly technical nature of making modifications within the HTML code, this is probably not something you should DIY but rather entrust to your web development team. They can shape and refine these pre-existing templates or even create a completely unique template design from scratch that integrates seamlessly with all elements of your brand’s visual identity (i.e., your website, printed materials, etc.) and sets you apart your competitors. Whichever approach you choose, this represents a relatively small one-time investment that will pay great long-term dividends as you use your branded templates time and time again. Ideally, you’ll want to establish a few different email layouts that can be used for various purposes, such as newsletter-style content, major announcements and perhaps service alerts or other time-sensitive notifications. The template formats you require will of course depend on your business needs, but by having a few on-hand to choose from, you can ensure all of the email communication that you send reflects well upon your brand.

The What

Subject, subject, subject

No matter how beautifully designed your email might be, that design isn’t worth the pixels it’s transmitted on if your message goes straight to the trash unread. Your subject line is the make-or-break factor that will determine whether the recipient will grant you even just a few seconds of their precious time and attention. A line that’s boring and unimaginative provides zero motivation for them to give your message a second glance. One that’s too over-the-top screams “SPAM!” and is just as likely to be ignored. Subject lines that are too long, written in ALL CAPS, filled with exclamation marks or intentionally deceitful (e.g., including “Re:” to make the email appear as if it’s a direct reply to a message from the recipient) are guaranteed to work against you, so avoid them at all costs. Effective subject lines are neither vague nor dull. If you received an email with the nondescript subject line “News Update,” would you read it? Neither will your customers. Similarly, the subject line “April Customer Newsletter” explains what the email itself is, but it offers no insight into the content of its message. For my own company’s email newsletters, we have eschewed these types of easily disregarded subject lines in favor of more descriptive ones that tease the content. In doing so, we have achieved much better open rates. One way to boost the success of your subject line is to frame it in the form of a question, such as “Are you considering a move to the cloud for your business?” or “Do you know the reasons companies usually struggle with a move to the cloud?” Those two subject lines are ones I actually tried recently along with a more straightforward one – “Challenges of Moving Your Business to the Cloud”. While all three saw relatively good open rates, the two that posed a question to the recipient well outperformed the other. Start paying attention to the emails that land in your own inbox. Which subject lines catch your eye? Which do you gloss over without a second thought, and which ones prompt you to hit the “delete” button immediately? Soon you’ll begin to discern which types of lines are most effective, and you can apply these techniques to your own campaigns.

Inform, don’t overwhelm

Now that you’ve formulated an attention-grabbing subject line that will motivate your recipient to open your email, the next challenge you must conquer is the content of the email itself. All too often, companies try to communicate too much via their emails, with the end result being that the recipient is too overwhelmed to fully process and take action on the information being conveyed. Many email newsletters fall into this trap, with company announcements, blog articles, product highlights and more crammed into a single message. In an attempt to make sure the recipient has access to every piece of information that could possibly be of value to them, the e-newsletter becomes a scattered mess that lacks organization and direction. Additionally, this information is usually presented in full within the body of the message itself, instead of prompting the reader to click a link to access the full text via a web page. As a result, the number of ideas coupled with the depth of their presentation spells doom for the campaign. A quick scan of the message is enough to turn the recipient away because they have no desire to invest the time necessary to sort though the barrage of content to find the one or two bits of information that might be of use to them.

Be a tease

Avoid this “much too much” trap by editing and teasing your content. Include no more than three key ideas per newsletter. Sure, you may have more than three things to say, but you must be ruthless in your selection process, and save the rest for another missive or another medium. Next, present those three (at most!) ideas in the form of short teasers. A title, a short intro to the news item or article being highlighted and an accompanying image are all you need to pique your reader’s interest – along with a link prompting them to read more on your company’s website. By doing so, you’ll ensure that your email newsletter offers a clean, visually appealing presentation that can be scanned and processed in a matter of mere seconds. If a reader is interested in one of the three key ideas you’ve presented, they have the option to easily obtain more details for themselves. Of course, this approach has the added benefit of driving users to your website and increasing that site’s exposure to new audiences. When I suggest this “click to read more” approach, the reaction I most often receive is that readers “don’t like to click a link” but rather want to read the article in their email message. I have no idea where this belief came from, but it is false. Users are more than comfortable with clicking links, especially if it comes from a trusted source (see Part I for the benefits of using a carefully curated email list of customers who know who you are already). The Internet is driven by clicks, so do not be afraid to embrace this behavior! By mastering these five fundamentals of successful email marketing – the who, what, when, why and how – you can help to ensure that your messages are a welcome presence in your recipients’ inboxes, that they are read and, most importantly, that they motivate your customers and prospects to take the action you desire.

---