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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Get it Write: How to Use White Papers to Establish Your Expertise

Growing a business in today’s marketplace begins and ends with building trust with your customers.

There’s no more direct route to earning that trust than by demonstrating your expertise in your field. If you can convince a prospective customer that you not only understand their needs and problems but know exactly what’s required to solve them, then it’s hardly a big leap for them to believe that you’re the best one for the job.

White papers are a marketing tactic that provides a proving ground for your expertise. By conveying objective information, thorough analysis and useful insights, a white paper is an effective strategy for cementing your customers’ confidence and trust in the products or services you offer.

Here’s what you need to know to create a successful white paper that will help you capture and convert more customers:

What is a white paper, exactly, and how is it different from a blog article?

A white paper is an in-depth report on a specific topic. White papers differ from blog posts in tone, scope, length and audience.

Unlike blog articles, white papers are not designed for the casual reader but for one who is seeking comprehensive information in order to help them achieve a specific objective or make an important purchasing decision. Also, while blog posts are conversational in tone and based largely in opinion, white papers should be formal and fact based.

There is no set length that your white paper must be to qualify. Depending on the topic, a well-written, well-supported four-page document can be sufficient to get the job done; likewise, an exhaustive 10-page report is sometimes what’s needed to give the reader the depth of information they desire. The key is to be objective and thorough.

Target audience

Before you begin, you must define who it is that you desire to reach based on your business growth goals. This is key to determining both the topic you should cover and the approach you should take in doing so.

For your white paper to be successful, you need to make sure that it addresses a need or issue that is common among this audience and that it provides answers and insights in language and on a level they will find relatable.

For example, a white paper on social media aimed at reaching C-suite-level marketing executives would be much different than one on the same subject targeted to entrepreneurs who are launching a new business.

Content and voice

Your white paper must maintain a sense of objectivity. This is the time to persuade through logic, not emotion.

If a reader feels manipulated, then they will view your report with suspicion, and you will lose credibility by association – the exact opposite of the outcome you desire.

Establish a strong sense of credibility by covering all aspects of your chosen subject – both positive and negative. You may even go so far as to compare and contrast your product with others.

Remember to do your homework. Unlike a blog post that represents your own point of view, a good white paper should incorporate research from other respected sources to substantiate your points. Your job is to pull together the existing data and information on your subject, offer thoughtful analysis and provide your own unique insights.

Don’t be afraid to share the types of insider information you’d normally reserve for paying clients. Doing so will only whet your reader’s appetite to seek out more of your expertise.

Make sure you conclude with a call to action. Don’t go straight for the kill with a pitch like “For more information, call our sales department.” Instead, provide options that allow your reader to further their engagement with your brand, whether that’s by subscribing to your blog or e-newsletter, passing your white paper along to their friends and colleagues via social media networks or downloading other white papers on related topics.

Design

Keep in mind: it’s a white paper, not a bland paper. Just because it’s factual and objective in nature doesn’t mean that you shouldn’t take care to ensure that the information is presented in a visually appealing manner that is a good representation of your brand.

Use charts, graphs and images wherever possible to illustrate your point. And make sure that your choice of typography and colors makes it easy to read, whether on screen or in hard copy form.

Marketing

Your job doesn’t end when you put the final touches on your white paper. After all, it can’t help you get customers if customers don’t know where to find it.

For your white paper to be read, you need to market it well and to the right audience. Promoting your white paper includes everything from having the right title to employing effective distribution methods.

Your white paper is more likely to be read if it is clearly labeled with a strong title. The title of your white paper must be focused and ultra-specific. It should be as concise as possible while communicating to the reader exactly what they can expect to learn from it.

When it comes to spreading the word about your white paper, there are many avenues you can take.

Include links to your white paper in your company’s e-newsletter. When you do so, boost your chances of a click-through by linking directly to a specific section of the white paper that’s most relevant to the content of your newsletter. Instant gratification works in your favor here.

Don’t forget to spread the word about your white paper to your fans and followers on Facebook, LinkedIn and Twitter, using Twitter’s hashtag function to target users searching for a specific topic. Discussion boards focused on topics pertaining to your subject matter are another outlet where you can promote your white paper. You can also use pay-per-click advertising to put your white paper in front of people who are actively searching online for information about your topic.

If you have more than one white paper, make sure to provide responders with the opportunity to download other white papers that might interest them. Also, create a dedicated resource center on your own website where all of your white papers can live.

When in doubt, send it out. Direct mail marketing is not dead, so use email or mail to put your white paper in the hands of your target audience. And don’t be afraid to hit up the same list more than once. On the second pass, you might catch the eye of a reader who either overlooked your offer the first time or might not have been ready to act on it previously.

See your expertise transformed into leads

A good white paper does require a significant amount of time and effort to develop; however, the potential for return on your investment is great.

According to a survey published in October 2011 by Eccolo Media, technology buyers regard white papers as the most influential type of marketing collateral, with 65 percent citing white papers as “very” or “extremely influential” when making a purchasing decision.

If you select a topic that’s important to your target audience, provide them with information that’s truly valuable and useful and market your white paper effectively, you’ll have successfully built a powerful lead-generating engine, as more and more prospective new customers discover who you are and the wealth of expertise you have to offer.

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Put Away the Smoke and Mirrors

“Smoke and mirrors.” “Dog and pony show.” “Image is everything.” These phrases, which are deeply embedded in the vernacular and philosophy of old-school marketing firms, may appear on the surface as nothing more than harmless – if hackneyed – corporate speak. However, these seemingly innocuous clichés actually betray one of traditional marketing's dirtiest secrets. Once the clever headlines, catchy taglines and glamorous images are stripped away, all that’s left at the core is fluff, spin, deception and the art of inventing meaning where there is none. Even they don’t believe their own hype. Yet these are the very same people to whom business owners and decision makers have entrusted their livelihood for decades. Who’s to say the interactions you have with your followers can’t be meaningful?At its heart, your business shares the same goal with every other: to grow, thrive and compete successfully in your market niche. In order to do this, you must engage your customers and build a community around your brand. With old marketing, the relationship between seller and consumer has always taken place at arm’s length, using traditional media channels that rely on flash and frequency, that require a tremendous investment to outshine and outspend the competition. However, who’s to say your relationships with your customers can’t be personal? Who’s to say the interactions you have with your followers can’t be meaningful? The answer: No one who values your success over their own bottom line.

Leading by example

We tend to take established brands for granted, assuming the secret to their success lies in their ability to pour unlimited resources into every available advertising medium to broadcast slick, highly polished messages of self-promotion. However, a closer look at some of today’s most recognizable names reveals a different story. Let’s start with Amazon. If you think about it, there is nothing inherently glamorous about an online bookstore. Yet Amazon has managed to create a following so pervasive that it catapulted from an upstart dot-com to one of the world’s most powerful e-commerce megabrands, all without ever relying on pricey TV and magazine ads. “Advertising is the tax you pay for unremarkable thinking.” How did they do it? The answer is not smoke and mirrors. They did not trick anyone into drinking the Amazon Kool-Aid. Rather they committed themselves and their budget to creating a better shopping experience by developing more intuitive technology, stronger distribution networks and more competitive shipping deals. These are genuine and distinct advantages from which their customers benefit each and every time they interact with the brand, thus solidifying Amazon’s reputation for ease of use, low prices and quality service. Another brand that has risen to the top of its category by flying in the face of traditional marketing wisdom is Geek Squad. As founder Robert Stephens explained at Advertising Age’s 2007 IDEA Conference, “Advertising is the tax you pay for unremarkable thinking.” Instead, by taking a creative approach to what he himself calls an innately “boring business,” he has transformed his one-man show into a corporation that employs more than 17,000 nationwide. In an interview with Inc. magazine, Stephens explained his low-budget strategy:

Without spending any money on marketing, we were able to get people talking about Geek Squad by tapping into themes and archetypes people already understood. We embraced the fact that we were geeks, and we dressed all of our employees like 1960s NASA technicians, since NASA is a symbol of problem solving, teamwork and impossible tasks…In our early years, we found that more than 90 percent of people found us through word of mouth.

In fact, he credits his initial lack of monetary resources with forcing him to work harder, to be more innovative, to dig deeper, to develop an original and authentic approach that has differentiated Geek Squad from all other competitors:

At the crossroads of marketing and meaning

So where do these two concepts intersect for you? It lies in the fundamentals. Your business – let alone your category – would not exist if there were not a legitimate need for your product or service among some segment of the population. There is a community out there that is receptive to your message, that is waiting to be wowed with a newer, better way of doing things. Furthermore, your company would not be here today if at some time someone somewhere hadn’t felt passionately enough about whatever it is you do to risk everything to get that company off the ground. It’s time to reignite that passion and convey it in a way that inspires others. Make a conscious decision to be better, to be different. Resolve to enhance your usefulness; commit yourself to unrelenting innovation; make sure you are delivering a premium experience to your customer; then tell people about it in a genuine and compelling way. And that’s where you’ll need help. But you don’t need just any old traditional agency; you need a partner who shares your belief in what you have to offer and your passion for why you do what you do better than anyone else. You need experts that can show you how to communicate this to your audience in a real and honest way, using available technologies to build community among your customers and keep them actively engaged to the point where they include you as part of their identity. When you have something meaningful to say, and you say it with conviction, people will listen. No smoke and mirrors required.

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