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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Don’t Fear the Reviewer

Does the idea of allowing your customers to rate your products on your website make you uneasy? If so, it’s time to reverse your thinking: don’t fear the reviews; fear what their absence is costing you. Here are four reasons why encouraging your customers to post product ratings will not only strengthen their allegiance to you but also help you capture more sales:

Break through the trust barrier

As we established previously in our article on the culture of the Web, the Internet collective harbors an inherent mistrust toward all corporate entities, and unfortunately for you, retailers are no exception to that rule. On the other hand, peer validation is everything. No matter what you do or what you sell, if people love it and vouch for you, you’ll be strongly positioned for success. In the absence of this corroboration, you face a significant burden of proof to overcome the natural skepticism of the collective. What does this mean for you? You can spend hours meticulously crafting eloquent descriptions for each and every product you sell, but they will never carry the weight of a review that one of your customers spends five minutes to dash off. Reviews demonstrate that you stand behind your products and you have nothing to hide.Fair? Perhaps not. True? Absolutely. It’s all about trust. However, when it comes to trust, you actually get extra credit for the very fact that you do empower your customers to publish their feedback on your site. For new visitors who may not be familiar with your brand or your reputation, these reviews are a badge of transparency that demonstrate that you stand behind your products and you have nothing to hide.

Tip the scales in your favor

Online shopping is a fact of life in today’s world. However, as commonplace as the act of buying on the Web has become, there is always still a lingering hint of uncertainty that resides with customers because they cannot see, hold and judge an item for themselves before committing to the purchase and paying the associated shipping costs. This effect is multiplied for certain types of merchandise like clothing and shoes. I may know that I generally wear a size 11 running shoe, but when deciding between different brands and styles, how can I tell whether my chosen shoe will run true to size, offer the level of cushioning I desire and be comfortable for a five-mile jog? The last thing you want in this situation is for me to give up and go to a bricks-and-mortar store where I can try before I buy, even if it means paying a bit more for that luxury. This is where customer reviews can save the sale by providing the reassurance I need to feel confident that the particular shoe I have selected will meet my expectations.

Turn your customers into salespeople

Returning once again to the qualities that define the culture of the Web, one of the fundamental characteristics of the Internet collective is their compulsive need to share. As a result, when someone buys something that they love, it’s practically second nature for them to talk up their purchase on sites like Facebook and Twitter. This tendency is all the greater when they can boast about a particularly unique find or an especially good bargain, as they seek the approbation of those in their social networks. It’s the virtual equivalent of taking a girlfriend along on a shopping excursion and having her ooh and ah in approval over your selections. Why not give your customers a soapbox to exercise their habitual need to share on your own site, where their opinions can help persuade other shoppers to purchase the same product when it is right there in front of them, just one click away from landing in their cart? One of the most effective customer review systems we’ve encountered is on gap.com. Not only does Gap allow customers to provide thorough evaluations of each item in their own words, but each product can be rated on several different criteria, including overall sizing, fit through the arms, chest and shoulders as well as the type of occasion for which the item is best suited (i.e. work, going out, etc.). If the prevailing sentiment among reviewers indicates that a shirt runs small or tends to shrink in the wash, I know right away to order a size larger than usual, and I can feel certain that I won’t regret this decision when my order arrives at my doorstep. Furthermore, let’s say I’m a little iffy on whether or not to buy a pair of pants based on how they look in the photographs. Rave reviews from those who have already purchased and worn the same item can provide the tipping point that will persuade me to add them to my cart. Detailed and informative reviews give shoppers the confidence boost they need to complete the transaction.As these examples demonstrate, not only will detailed and informative reviews give shoppers the confidence boost they need to complete the transaction, they can also provide enticement to splurge on additional unplanned items. As a result, chances are good that you will yield a greater number of conversions as well as an increase in the total amount of each sale.

Do your own market research

Your customers buy products from you. Inevitably, those customers have opinions about their purchases. If only you could benefit from knowing what their opinions might be. It just so happens that you can, and you don’t have to spend a boatload of cash on a consumer research study to do it. When you invite your customers to post their reviews of your products on your site, you not only open a direct line of communication, but you also send a clear message that you care about what they have to say. Open a direct line of communication with your customers.Better yet, because it is up to the customer to take the initiative to provide their feedback and they can do so with relative anonymity, you can be confident that you are receiving their honest and unfiltered opinion – much more so than if you tried to solicit a response face-to-face or with a formal survey. Although these reviews do not represent a statistically accurate sampling of all your customers, they can be instrumental in revealing insights that can be invaluable in helping you shape your product offering to better meet their needs. Even when you’ve done your homework and made your best effort to provide a great selection of high-quality products that align with your customers’ interests and concerns, there’s nothing like the candid reassurance of those customers to let you know that your instincts were right. You might even find an unexpectedly strong preference for a certain type of item over another, in which case you can consider expanding your offerings in that category. But wait! What if the feedback you receive is negative? You should be equally appreciative of the opportunity this creates to go back to the drawing board and figure out better ways to give the people what they want. Maybe the response is “I like this, but I really wish it had more of that.” Without reviews, this sentiment might never have come to light, and your customers might have just silently drifted away, leaving you wondering where they went and why. Or perhaps your reviews alert you to a problem that emerges when a product is used over a prolonged period of time or in a particular set of real-world conditions. Even the best quality control efforts can’t forecast and circumvent every potential pitfall, but armed with this knowledge, you can take proactive measures to address the issue and make it right.

Open the door to greater success

If you’ve made the investment in creating a smart, user-friendly e-commerce store, why not seize the opportunity to yield the most from that investment by adding functionality that can multiply your sales? If you’re not sure where to begin, let Fame Foundry’s expert web development team help you develop a customer feedback module that is custom-tailored to fit your brand, your product line and – most importantly – your customers.

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Great Content, No Readers: How to Solve Your Subscriber Problem

Hybrid or Hummer: What kind of mileage is your content getting?

Previously, we established that content is the gasoline in your business growth engine. But your job doesn't end when you hit "publish." Promoting your content is just as important as creating it. If content is the gasoline in your business growth engine, then promotion is the difference between putting that gasoline in a Prius versus a Hummer. Even the most value-packed content can’t help your business grow if no one is reading it. For your content to deliver results, you must actively engage in bringing new people to your site.

Here are 12 tried-and-true tactics to boost your readership and maximize the mileage you’re getting from the resources you’re investing in creating great content.

Be a citizen of the web marketing universe.

No website or blog starts out with its own built-in community. However, established communities do exist everywhere around the Web. Identify the ones where the types of people who would be interested in the topics you write about are already hanging out, reading and making connections. Join in the dialog there by commenting on blog posts or participating in discussion forums. Don’t be a shameless self-promoter. Focus instead on adding value to the conversation. If you do a good job, people will be naturally curious to learn more about you, and they’ll seek out your site to see what else you have to say. Just make sure to include a link in your signature so they’ll know where to find you.

Don't beg for links; present win-win opportunities.

Once you’ve earned your stripes as a trusted and valued member of these communities, you can begin reaching out to the other blog owners that run in these circles for opportunities to gain exposure to their readers. But don’t just ask them to link to your site. After all, what do they stand to gain from giving you a link? Instead, frame your request so that it provides benefit to the person on the receiving end as well. For example, invite them to be featured in an interview on your site. Even the most successful and well-established bloggers are always looking for a little added exposure, and they’ll undoubtedly promote their appearance to their fans, too. Or ask if you can contribute a guest post to their site. Most bloggers will be relieved to have one less post to write, and you’ll get the chance to put your own original content in front of their readers, with the added benefit of a link in your bio.

Give links to get links.

When you’re composing your posts, there’s no need to pretend that you’re the one and only person who’s ever had anything of value to say on your chosen subject matter. Link to other articles and experts who’ve either offered great insights on that topic or taken an opposing point of view, if you want to refute their claims. When you publish your article, shoot the person whose blog you’ve linked to an email or a direct message on Twitter. It will definitely get you noticed and will more than likely get you either a retweet or a link in return.

Leverage the connections you already have.

Don’t assume that everyone who follows you on Facebook or Twitter also reads everything you post on your site. Every time you publish a new article, make sure you extend that content to Facebook, Twitter, LinkedIn and any other social media platforms where you are active. Instead of simply posting a link to your article, a great trick is to turn your headline into a question. Open-ended questions leave people craving an answer, which will prompt them to click through to satisfy their curiosity. If you’re using this tactic on Twitter, remember to keep your post to 120 characters or less (link included) in order to allow for retweets.

Extra! Extra! Let them read all about it.

Create a weekly or monthly email newsletter that’s a digest of your most recent posts. Enhance the value of this newsletter by incorporating a few bite-sized tips or links to other interesting articles from around the Web. You might be surprised at the number of new readers the “forward to a friend” button might bring you.

Don’t be shy.

Opportunities to subscribe to and share your content should be omnipresent. Put your email subscription offer either in the header or the sidebar of your site so that no one who visits can miss it. Add extra incentive to join your list by offering a freebie at sign-up, such as an e-book, checklist or audio download. Be sure to present the chance to subscribe to email updates at the end of every article as well. If the reader liked what they read, that’s the best time to get them to sign on.

Give them options – lots of options.

Email addresses are pure marketing gold, but don't be so laser-focused on building your list that you only offer email updates. Let your readers consume your content in the way they most prefer, whether that’s by subscribing in an RSS reader, via StumbleUpon or through the social media channels where you post links to your latest articles.

Be attentive to your readers.

When someone reaches out to you – whether by leaving a comment on an article, sending you a direct message on Twitter or dropping you an email – respond. Making them feel like a part of a community whose members are truly valued will motivate them to spread the word about you and encourage others to join the party.

Create content that sparks conversation.

The real holy grail of promotion is not generating two-way conversation between you and your readers. It's the multidimensional communication that occurs when your readers start interacting with each other as well. That's when suddenly you make the leap from publishing content to building community. The key lies in how you craft your content. While it's important to write with authority and demonstrate your expertise, don't make the presumption that you have the final say. One of your most important jobs as a creator and promoter of content is getting the ball rolling on conversation and debate. Ask for input and advice. Solicit dissenting opinions. Encourage your readers to share their own personal experiences that relate your topic. Great conversation is magnetic. It will keep your current readers coming back again and again, and draw new visitors in when they see the lively interactions that exists around your content.

Find the right balance.

Remember that you don't have to post every day or even every week if that's not realistic for you. It's better to find a comfortable rhythm that will allow you to maintain a steady pace of both creation and promotion. It’s better for someone to come to your site and see that you post one must-read article every month than to see unpredictable fits and starts of activity.

When you find something that works, stick with it.

In the game of promotion, there’s no magic formula for success. It may require a lot of trial and error before you find the right combination of tactics that work for your audience and your schedule. When you do uncover a particularly effective strategy, mine it for all it’s worth. If you write a guest post that gets a lot of attention, find out if there might be an opportunity for you to become a regular contributor on that site. If you get a significant proportion of traffic from one of the sites or forums where you’re a regular participant, by all means, keep it up. If you write a post that gets more traffic, more retweets or more comments than average, continue to develop other articles around that topic. When people tell you what they want, give it to them.

Slow and steady wins the race.

If this sounds like a lot of work, it is. Community building requires time, patience and persistence. There are plenty of articles out there with enticing headlines like “How I got 10,000 subscribers with one post!” This probably won’t happen for you. That doesn’t mean your efforts aren’t worthwhile. Don’t risk becoming a pariah by being overtly pushy and self-serving in your methods. Instead, tread carefully and treat everyone you encounter in the blogosphere – readers, commenters and fellow content creators alike – with respect. As always, follow the rules of trustcasting and allow your community to grow organically in breadth and depth as you cultivate your reputation as a credible and authoritative source of information. Over time, you’ll build a robust, thriving community of people who will not only consume your content voraciously but will ultimately become customers and evangelists for your brand.

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