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.

Five Seductive Pick-Up Lines That Leave Your Visitors Wanting More

For many of your website’s visitors, the page that will greet them when they first arrive on the site is your homepage – and the section of your homepage that is likely to draw their attention upon arrival is the billboard.

Similar to roadside billboards that are meant to attract the attention of passing motorists and promote some company or service, homepage billboards are meant to grab the attention of a website visitor, welcome them to the site and convey some important message to them, and then send them forward to other content or actions within that site.

Take a look at just about any website today and you will see this “billboard” area. It is typically presented as a large, visually rich display that features striking imagery and/or powerful typography, important messages, and a subsequent call-to-action. Additionally, these messages can also be animated in some way to add an element of motion to the site and to allow you to use the billboard to display more than on message on your homepage.

While the purpose of the billboard is nearly identical on all websites, the way this section is executed varies from site to site. In this article, we will take a look at a few popular approaches to the website billboard.

1. Allow me to introduce myself.

Probably the most common billboard approach is what I call the “here’s who we are and what we do” technique. In these examples, the billboard message is all about your company.

Similar to an elevator pitch, this billboard approach quickly introduces your company and summarizes what you do. With attention spans online being as short as they are (many experts say that website visitors will scan a page and make a decision of what to do next, including leaving the site altogether, in as little as 3 seconds), this approach can be an effective way to get your message or value proposition across in a succinct fashion. If that message resonates with your visitors, you then have an opportunity to continue the conversation by driving them deeper into the website to learn more about what you have teased in the billboard message. You could provide links to read more about your services, products, or even just the company or organization itself.

A few examples of the “here’s who we are and what we do” method are below:

Studio1 Architects

This site uses very large images of the firm’s work (the images animate and multiple photos fade in and out over time), coupled with an opening message that explains what they do and a link to view their portfolio: http://studio1architects.com

AF Technology Solutions

This site’s concise billboard message summarizes what the company does (business and technology solutions) and who their audience is (small to medium businesses) and includes a link to learn more about their services: http://af-techsolutions.com

Raw Seafoods

This company uses their billboard to highlight their value proposition and then link visitors over to a page detailing what sets their products and services apart from their competition: http://www.rawseafoods.com

2. What can I do for you?

While the “here’s who we are and what we do” approach is the most common way to utilize a billboard’s messaging, there is a downside to that tactic – it focuses solely on the company or organization and not on the audience they serve. As a variation to that approach, you can consider the “how may we help you?” method.

With the “how may we help you?” technique, the messaging focuses on the website’s audience, not the company that owns the website. Instead of being about that company, their products, or services, it instead looks to its users and illustrates about how that company can help them. The focus turns from “us” to “you”.

A few examples of the “how may we help you?” variation are below:

2-1-1 RI

This not-for-profit site run by the United Way does not use any imagery in its billboard. It instead turns to bold colors and large typography to display its message – “Find Help Now”. The billboard does not explain what the organization does (that content is below the billboard). Instead, the focus here is on the user and the action is all about getting them the help they need by answering two simple questions (what do you need and where do you need it) or by clicking on a popular category: http://www.211ri.org

RIHCA

This site uses animated photos alongside a large message to attract their audience’s attention and address their main need – “Do you need healthcare?” The call to action is a simple and obvious button to “Get Started”: http://www.rihca.org

3. Tell me more about yourself.

Similar to the “how may we help you?” method, the “tell us who you are” approach speaks directly to your audience, but it does so in such a way so that it can ask that audience a specific question about who that audience is. The best example of this is a website that requires visitors to self-segment themselves.

Most websites have more than one audience and oftentimes there is different content on your website that is intended for these specific audiences. Having visitors “choose their path” by self-segmenting early on is one way you can drive them to content that is relevant for them, without worrying that they will have to get through pages that may not be necessary for them to see.

A few examples of self-segmentation on websites are below:

Traveler Beer Company

Any beer or liquor company will present this “Are You 21+?” message on their opening page to require that visitors confirm that they are of drinking age before entering the site. This is a form of self-segmentation: http://travelerbeer.com

Cosmed Group

This company knows that their customers fall into one of two groups – those looking for the pasteurization services that they offer or those who want to buy the equipment to do it themselves. Therefore, they present these two paths (looking for services vs. looking for products) in their billboard so that visitors can self-segment based on their needs: http://cosmedgroup.com

4. Let’s get personal.

Taking self-segmentation a step further are sites that already know who you are. These are sites that you subscribe to or have a user account on. Based on your preference or previous activity on the site, the content that is displayed is deemed to be most relevant to your needs.

The most prominent example of this method is Amazon.com. Visit the Amazon homepage and, as long as you are logged in, the products that you see will be based on your previous browsing or purchase history.

Another good example would be eBay. That site will show you results from searches you have conducted in the past in an attempt to present you with new auction items that you would be interested in.

Many news sites work in this way as well. Content that is most relevant for you, based on your preferences or geographic location, will be presented to you up front to try to best tailor your site experience to you.

One note here is that in these examples, Amazon, eBay, and the typical news site, do not present this information in a true, billboard-style fashion - but the same principal of filtering content based on a users’ preference or past behaviors on the site could also be applied to a billboard area.

5. What’s new?

The final approach we will look at in this article is the “latest news and announcements” method. This approach ensures that your site’s billboard is continually updated with fresh content. It displays current promotions, latest news, or important announcements (and usually a link to read more about that content) instead of general marketing messages.
The value of this approach is in the aforementioned freshness it brings to your content and your display. The downside is that it requires you to be publishing that new content on a pretty regular basis and you need to make a commitment to doing so.

If your organization is already producing relevant press releases or running promotions, then this method may be a great fit for you.

A few examples of this method are below:

Fame Foundry

This approach is exactly what we do on our homepage. Each month, our latest articles are highlighted in our animated billboard.

Honey Dew Donuts

Current promotions and seasonal menu items are featured in this site’s animated billboard. Those messages align with other marketing the company is doing - including print, radio, and television, to ensure that the latest content is always presented front and center: http://honeydewdonuts.com

Marvel

Upcoming films, new comics, and other announcements are the focus of Marvel’s homepage billboard: http://marvel.com

Mix and match

These billboard techniques are not mutually exclusive – you can mix and match them as you see fit. For instance, you may highlight a current promotion or announcement in your billboard, but then allow it to animate to a second and third and fourth, etc. message that is more generic – like the “here’s who we are and what we do” approach.

With so much space on your homepage being given over to the billboard’s display and understanding that the use of striking images, large typography, and animated messages will undoubtedly draw the focus of your visitors, it is important to make sure that the approach you choose for your billboard is the right choice for your business. Consult with your web design and development team to determine which approach, or which combination of different approaches, will best fit your overall goals and needs.