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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Tribes in Today’s Marketing

What is a tribe?

Simply put, a tribe is a group of people that connect around a common goal. Tribes can exist anywhere and can be based upon any shared interest, no matter how specific. In fact, you are most likely a member of a tribe or even multiple tribes. You may even lead one. Behind every major movement and successful marketing engine there is a tribe. Behind every major movement and successful marketing engine there is a tribe. Barack Obama leads one in which he can raise millions of dollars in a single day. Steve Jobs leads a tribe comprised of a cult-like following of brand evangelists who hang on his every word during his two-hour product launch event and then go out and do Apple’s marketing for them. Tribes are not always large. Some don’t want to be big. In fact, many are exclusive. The common element around which most tribes form is actually quite narrowly-defined. These tribes are not just for golf, but for those afflicted with a natural slice in their swing; not just for personal finance, but for those obsessed with maximizing the energy efficiency of their homes; not just for shoes, but for those infatuated with handcrafted Italian leather stilettos. Balloon artists, amateur photographers, collectors of exotic southwestern jewelry, Ford Mustang enthusiasts, avid Mac users, city managers engaged in innovative economic development – all of these are tribes that gather. For their members, their interest is an intrinsic part of their identity, and their association with their peers is a point of pride. Anytime people make connections based on a shared passion, similarities in background or a common need for solutions to improve their lives, a tribe is born.

What’s changed

Tribes have always been around. Before the days of the Web, smartphones and Facebook, communities would form based on commonalities and gather face-to-face. Naturally, these tribes were geographically-based, and their numbers were fewer and limited to the most popular interests. Today’s tribes are different. The advent of the Information Age tore down geographical barriers by introducing platforms of persistent conversation and information sharing. Online message boards, which have been around for decades, overcame the limitations of locality and allowed for a tidal wave of tribes to be formed – not just big tribes, but ones that were small and highly specialized. People now had the tools they needed to find others with a shared passion and make an instant connection in the absence of physical proximity. As technology continued to evolve, the Web provided a more robust platform for these communities to take form. Smarter and more relevant searching allowed people to find outlets for their passions through 200 million websites. Website creation tools became more accessible, allowing those with limited technical know-how to create online hubs where their tribes could gather. Add to this new tools for scheduling, collaboration, coordination and real-time communication as well as wifi and the mobile Web, and you have fertile ground for tribes to flourish around any and every common goal and interest.

New types of tribes

In the past few years, the evolution of social media has allowed people to connect in ways that are not based solely on common interests but also on commonality in relationships and geography. When communities form around who their members are, where they live and how they relate to each other, a new dynamic is introduced. The tribe concept becomes even more powerful and pervasive as people forge ties around commonplace goals in their daily lives. For geographically-based tribes, the day-to-day problems of life – from finding the best deli in town to getting a recommendation for a good mechanic to obtaining a reference for a trustworthy electrician – are solved through the formation of tribes based on members’ inherent commonalities. Tribes can form around many different types of relationships. Whether it’s families bound together in a social network or colleagues that develop a web of connections on LinkedIn, the common thread that ties all these communities together is the relationship of their members to one another. in a world ruled by tribes, word-of-mouth is king Communication travels quickly through these organic networks, in most cases crossing over to other networks. Something as seemingly simple as a recommendation for TurboTax software during tax season spreads virally via word-of-mouth advertising from tribe to tribe, as members seek to solve problems in ways that enhance their own lives, the lives of others they care about and the environments in which they live. Thus, in a world ruled by tribes, word-of-mouth is king. Trust is not only essential; it is required.

The old system of marketing

Before the economy was overtaken by tribes of highly interconnected and informed consumers, success in marketing was achieved by the companies with the largest budgets and the greatest capacities to pummel the public into purchasing their brands. If you were selling a product 10 years ago, you would have run expensive advertising campaigns based on interruption, hitting the consumer over the head with your message as forcefully and as often as possible. The objectives driving this type of intellectual spamming were to raise brand awareness, create demand for more product, obtain wider distribution and ultimately apply those profits to more ads in order to fuel this vicious cycle. In what’s left of mass media, this wasteful practice still goes on. Arby’s invested more than $85 million interrupting everyone with an oven mitt to sell sandwiches. Progressive and Geico spend a fortune flashing their brands in any and all media and markets. Nike poured hundreds of millions into endorsements and marketing to sell more Tiger Woods-branded products simply because they could command higher prices. National brands aren’t the only ones guilty of still marketing by interruption and spamming. From law firms to home builders to car dealerships, local businesses in every town dump truckloads of money into carpet bombing the public with ads in local magazines, newspapers and television, shouting their claims that they’re the best, they’ve discounted everything yet again, they have too much inventory and everything must go.

Marketing in a tribe-driven world

Today, trust rules the marketplace. People have many more choices and much less time than ever before. As a result, they invest their time carefully in their passions, in the issues that count and in the things that make a difference in their lives. They have no use for or trust in traditional advertising. Instead, they belong to a tribe, and they follow the movement of its members and leaders. These tribes are formed and move with or without you. Today’s successful marketers bow to the tribe, reforming how they do business, how they develop products and how they grow accordingly. The power and influence you command through the trust you earn from the tribe is unrivaled by any form of advertising. Your membership in the tribe is earned through trust and trust alone. Trust gives you permission to talk about your ideas as well as what you are doing to improve the lives of its members. When you are active and demonstrate honest intentions and selfless motives, you are promoted by the tribe’s leaders. The power and influence you command through the trust you earn from the tribe is unrivaled by any form of advertising. In this way, the tribe is your marketplace.

Getting there

Many companies, particularly local businesses, have a hard time mapping the connection between tribes and their bottom line. In fact, most are challenged to identify where tribes exist or, if they must, start and lead a new tribe. The fact is, any successful act of business creates a solution for a problem or improves people’s lives in some way. Underneath that solution are people who are already talking about all the issues surrounding it every day. Your focus in growing your business should be to identify your tribe and lead it. Weber doesn’t just sell grills; they lead a tribe of grilling enthusiasts. Jeep doesn’t just sell cars and accessories; they lead a tribe of off-roading die-hards. Gary Vaynerchuk doesn’t just market wine; he leads a tribe of a million wine aficionados. Fame Foundry doesn’t just sell marketing and website design; they lead a tribe of entrepreneurs and decision-makers whose passions are focused on business growth. Your passion for your business is your license to lead. You don’t need to be a national brand to be a tribe leader. Your local dentist doesn’t just sell her services; she leads a local tribe of people that care about healthy teeth. She may have only 25 true fans, but when they tweet or post their endorsement for her practice on Facebook, multiplying their actions by the average of 150 connections per fan now gives her instantaneous, powerful and unbiased word-of-mouth advertising to 3,750 people. Eliza Metz applies her life’s passion to leading a massive tribe of yarncrafting fanatics who follow her on her blog, on Plurk, on Facebook and on her podcast. She has earned the trust of its members, who have elevated her to a position of leadership. As a result, when she says she likes something, they listen and move, which translates to sales immediately. Eliza has never bought one piece of advertising; instead, she leads. Your passion for your business is your license to lead. But you can’t just log in, plant your flag and begin selling your products or services. The tribe will banish you right away. The fundamentals of trustcasting prevail in every facet of business growth, and this is no different in leading tribes. In part two of this series, we’ll go beyond the foundational understanding of tribes and cover the steps to identifying, becoming a member of and leading the tribes that are relevant to your business and your bottom line in today’s marketplace.

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Guest Blogging 101 (Or How to Grow Your Audience by Giving Away Your Best Material)

Growing community and conversation around your brand is no easy feat; it requires dedication, focused effort and time. In addition to creating a platform that’s easy to navigate and top-notch content that drives engagement, you must constantly promote yourself to raise awareness and bring fresh eyes to your material. As counter-intuitive as it might sound, when you’re in the process of trying to grow a fledgling handful of followers into a thriving community of dedicated readers, one of the best ways to do so is by giving away your best posts. Why? Because in building relationships with bloggers who have already developed a community of followers whose interests overlap with your area of expertise, you can gain exposure to new readers who will then hopefully take an interest in hearing more of what you have to say. As a blogger myself, I've done this firsthand through Facebook, Twitter, Pinterest and strategic guest blogging opportunities. Though a bit intimidating at first, reaching out to bloggers I admire who cover similar topics has yielded valuable guest blogging opportunities that have helped me to steadily increase my reach and gain new readers for my own blog. Based on that experience, here are five secrets to success in scoring great guest blogging gigs that will help you grow your audience:

1. Know your niche.

What topics do you cover? How often do you post? What are your visitor stats? Who is your ideal reader? You need to have a strong grasp of these things so you can identify the right bloggers to connect with whose audience will most closely align with your own. It’s also important to make sure that somewhere on your site – whether it’s in the sidebar of your blog or on your about page – you have an introduction that’s crafted to quickly and succinctly orient new readers to your community. Focus on the reader’s interests by briefly explaining who you are, what topics you cover and what qualifies you as an authority in your niche. Point them to your most popular posts and invite them to subscribe to your content. And don’t forget to include a way for them to get in touch with you to pave the way for conversion from causal reader to paying customer.

2. Do your research.

You don't want to connect with just anybody out there with their own platform; you want to be strategic with the relationships you build. As a creator of content, you likely read quite a few blogs yourself. What are they? Do they cover similar topics? Is their demographic the same as yours in any way? It may be helpful to make a spreadsheet with these details, along with contact information to make your life a little easier when it comes time to reach out.

3. Become a prolific commenter.

By commenting, I mean both on your own blog in response to comments from your readers and also on blogs that you regularly read and follow. The blogging world is all about connection, community and driving conversation. If you stay silent, you’ll cut yourself off from opportunities to cultivate a more deeply engaged reader base. Although it may be impossible or impractical to reply to every single comment on every single blog post you write, you should make a habit of checking the comments section and replying to readers directly. Better yet, see if your platform has a tool that will alert you by email whenever you receive a new comment so that you can reply quickly and boost the chances of keeping the conversation going. When commenting on another author’s blog post, be sure to leave a thoughtful response. Avoid generic feedback like, “great post,” and opt instead for noting what what you found uniquely insightful or inspiring about the post, asking a question that provokes further debate and discussion or even answering a question the writer might have posed within the post itself. By doing so, you not only contribute in meaningful way to their community, but you also encourage them to check out your own blog as well.

4. Make a pitch.

Once you’ve acclimated to interacting with other bloggers and have a strong grasp of blogs that are aligned with your own blog’s niche, it’s time to reach out and make a pitch. By now, you should be very familiar with the content on the blogs you’ll be pitching to—what topics they cover, what they’ve written about recently, who runs the blog, etc. Not sure where to go from there? Here are some suggestions for crafting your message:

• Employ a tone that’s personal and friendly while keeping your request brief (no more than two paragraphs).
• Reference some of their recent posts so they can see that you are a real follower of theirs and you’re not just sending out the same pitch en masse to anybody with a blog.
• Provide links to your blog, portfolio and social media profiles to help them get a feel for your expertise, writing abilities and point of view.
• Be specific about what you’d like to write about, whether it’s a certain topic where you have expert advice to give or a series they’re doing where you can offer valuable insight.
• Follow up if you don’t hear back, allowing a week or so to make sure they’ve had time to review and process your request.

5. Become a contributor.

If you happen to have a little extra time on your hands, becoming a regular contributor on a high-traffic blog is a sure-fire way to connect with new readers who otherwise may not have found you. In addition to building your portfolio and legitimizing your expertise, being a contributor ensures major publicity for your content and exposure on a much broader level. Although developing an organic following will take some time, defining your blog’s niche, finding similar blogs to strategically connect with, engaging in the blog community through comments, pitching ideas to bloggers and contributing to high-traffic sites on a regular basis will help you develop valuable connections that will lure new readers to your blog. And when you feed these readers a steady diet of insightful, conversation-provoking content, you’ll find they’ll not only become a regular fixture in the burgeoning community that’s developing around your content and your brand, but that they’ll also become your allies in recruiting new members by sharing your great stuff within their own circles.

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