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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Left in the Dark? The Pitfalls of Taco Bell’s #OnlyInTheApp Social Media Stunt

Taco Bell recently unveiled a new mobile app, available for both iOS and for Android, that “gives consumers complete access to every Taco Bell ingredient to create what they want, when they want it – all in the palm of their hand.” The app allows customers in drive-thru or in their dining room to order and pay for items directly on their mobile device. The app itself may be a great idea, but the marketing push behind this new addition from Taco Bell is certainly raising some eyebrows. The company decided to “go dark” on their social media platforms and on their website, replacing their normal content with a black background and a large message that says that “the new way to Taco Bell isn’t on the Internet, it’s #onlyintheapp”, using a hashtag that they have created for this campaign. While I can appreciate the company’s desire to focus heavily on marketing this new feature, doing so at the detriment of all their other messaging and marketing channels is short-sighed. In this article, we will take a look at the possible benefits of this “all in” approach and why Taco Bell may have done this, as well as the pitfalls of this type of campaign and putting all your eggs, or in this case all your tacos, in one basket.

Information on demand

We live in world where immediate access to information is now expected. Have a question? You can whip out your phone or open the web browser on your desktop computer and hop over to Google for the answer. The same holds true for the services we use or products we buy, including menu items and locations or contact information for restaurants. Having worked on websites for restaurants in the past, I can tell you from experience that this information, menu and locations/contact, are some of the most heavily requested pages on those sites. Taco Bell’s current marketing approach, and their decision to “take down” their normal website in favor of a marketing message and nothing BUT a marketing message, is not a customer-friendly decision because it runs contrary to the information on demand culture that our customers have come to expect from websites. Now, to be fair, Taco Bell did not actually take down their entire site. If you run a search engine query for “Taco Bell Menu”, you can find those pages still live on the Web, but you have to work for it! Their current homepage, which is where their visitors will likely go, includes no links to the other pages of the site. If a customer needs menu information, or if they are looking for something like a location’s address or phone number, they will have to go out of their way to dig that information out. That is asking a lot of a person and few customers will go to those lengths.

What they want versus what you want

Taco Bell’s current campaign is a perfect example of placing a company’s needs before their customers’ needs. The marketing message that now dominates Taco Bell’s media properties is what they want people to know about. There is nothing wrong with promoting a new service or product, but by removing easy access to the rest of the information their customers may want, they are ignoring their needs in place of their own. What if a customer comes to the site to find nutrition information, only to be greeted by a message to download this new app. Is that a good customer experience? Perhaps they do not have an iPhone or Android device. This message is lost on them and they are at a dead end. This is a lost opportunity. Saying that this information is “not on the Internet” and instead forcing them to download an app is like saying “we don’t care how you want to access this information, we want you to download an app and we won’t give you that information unless you do so.” That may sound harsh, but that is absolutely how this decision comes across. Yes, there is value in putting a marketing campaign front and center in big way like this. Taco Bell’s new app is certainly being talked about, but most of the chatter I am hearing is not about the app itself or how great or convenient it is, it is about the company’s decision to market it in this way, with the rest of their messaging and information absolutely non-existent. A better approach would have been to market this new app in a big way with a bold, prominent placement across all their media channels, but to also include easy links to the normal website and social media content. With that approach, they could still ensure that their message comes across loud and clear, which is what they want, but they would not be ignoring what their customers want because that information would still be easily accessible.

Ignoring the conversation

Another interesting (and not in a good way) aspect of Taco Bell’s “going dark” campaign is what they are doing on social media. Their Facebook page currently includes only 1 post with a message similar to their website about the new app. The Taco Bell logos and everything else have been removed. What this page does have are comments – 1,194 of them as of this writing. If you read through those comments, you will find people complaining about the removal of the website content, the lack of delivery services, and many random slams on Taco Bell in general. Bottom line, there is a lot of negativity on this page, but Taco Bell is nowhere to be found in those comments. Their “going dark” campaign also includes them removing themselves from the conversation. This is not how social media works. Social media is all about engagement and conversations. If you put something out there, especially something like a new service like this, you should be prepared to answer customers’ questions and have those conversations. Taco Bell has yet to do this. Instead, they have “gone dark” and are nowhere to be found.

A better approach

When you have an important message to convey to your audience, you want that message front and center. There may be the temptation to take the same route that Taco Bell did and remove all your other content in favor of that message. Yes, people that visit your site will see it because that is all that there is to see, but is that the end goal? No, you do not want customers to only see your message, you want them to see your message and take action. Preferably, you want them to take the action that this campaign is focused on, but if they cannot do that, you do not want them to hit a dead end. In the case of Taco Bell, someone without a mobile device that can download the app, or someone with no interest in downloading that app, has hit that aforementioned dead-end. There is nowhere else for them to go other than away from Taco Bell. That is a lost opportunity. For your own marketing campaigns, you want to ensure that if you put a message front and center, you also make other paths available for people who that message may be lost on. Bottom line, you do not focus on one message or campaign at the expense of everything else you have to say and offer – and you never take yourself out of the conversation! When customers are talking about your company and what you are doing, that is a golden opportunity to respond and start a conversation. If you instead decide to “go dark”, you miss that opportunity completely.

In closing

I expect that this campaign is a temporary one for Taco Bell. Soon enough, their website and social media will be back to normal, but in the meantime, all I see in this marketing push are missed opportunities and ill-informed decisions. When planning your own campaigns and messages, speak to your marketing team or agency and always ask yourself whether your plans focus too heavily on what you want instead of what your customers need. The key to a successful campaign is finding a way to address both of these needs and tie together your company’s goals and those of your customers.

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Five Tips to Fuel Your Next Launch From the Coolest Cooler's Record-Shattering Kickstarter Campaign

62,64 backers. $13,285,226 dollars. 26,570% of the fundraising goal met. By any count, these are staggering figures – even more so when you discover that they all pertain to a cooler. Specifically, we’re talking about inventor Ryan Grepper’s Coolest Cooler, a high-tech party-on-wheels that boasts fun-inducing features such as a built-in blender, speakers, USB charger and much more. It has also surpassed other headline-grabbing Kickstarter campaigns, including the Pebble smartwatch and the Veronica Mars Movie Project, to become the site’s most funded campaign ever. Perhaps the most surprising fact about this record-smashing campaign, however, is that Grepper’s first attempt at funding the Coolest Cooler through Kickstarter failed less than 12 months ago. So what were the sparks that set the second campaign ablaze? And how can you apply these lessons to ignite your next marketing campaign or product launch? Let’s take a look:

What was different this time around?

Before we look at the exact lessons that this campaign can teach us, it is helpful to consider what was done differently on this second, wildly successful campaign versus the first one which did not meet its funding goal.

• The campaign was launched during the summer months, rather than the winter.
• The design of the Coolest was revamped and updated.
• The funding goal was lowered.

In addition to these changes, the second campaign also benefited from supporters who backed the idea the first time around. That first campaign fell short of its goal of $125,000, but it did generate $102,188 in pledges from 279 supporters – and those supporters were first in line when the second campaign launched. So what lessons do these changes, and the success resulting from those changes, teach us?

1. Timing is key.

The first time this campaign was run, it was in December. This time, it was done in the summer, when trips to the beach and having an amazing cooler are much more in people’s minds. As the Coolest’s inventor told Geekwire in a recent interview, “launching a product when backers are most likely to be receptive makes a difference.” This same principal holds true for any marketing campaign. You need to launch your campaign when the time is right. For instance, take the week of Thanksgiving. The company that I work for does no marketing pushes during that week. This is because we are a B2B company, and the customers we work with are either off during the week of the Thanksgiving holiday or, if they are in the office, their mind is certainly not on making new business technology decisions or purchases. For a B2B company, this holiday week is not good timing for a campaign. If, however, you are a B2C business, this week is golden! The day after Thanksgiving, commonly known as Black Friday, is one of the biggest shopping days of the year, followed a few days later by the similarly popular Cyber Monday. This entire holiday weekend is filled with ads and promotions for B2C companies, because their customers are in the mindset to buy during that time. Timing is important, and the exact timing that will work for you may be different than what will work for other companies. You need to think about your audience and what their mindset is and you need to consider your product and whether or not there is a specific time when it will most resonate with potential buyers. You likely even have some offerings that make sense at certain parts of the year and others that are most suited to different time periods. Kicking off a campaign at the right time can be the different between success and failure, as shown in the two different campaigns for the Coolest Cooler.

2. Design matters.

Another change that was made to the Coolest for this second campaign was the product’s design. The new design is much more vibrant and exciting than the first. With sleeker lines and a bold, orange color that really stands out, as well as better integration of the component parts, the improvements to the design of this product played an important role in the amazing success that it has seen on this second go around. Design is important; yet it is often one of the first things to be compromised on when budgets are being reviewed. Using pre-built templates as opposed to hiring a design professional to craft a look and feel unique to your needs and ideas is an option that too many companies bypass in order to save some money, but as we have seen with the Coolest, design absolutely matters. Skimping on design is the same as skimping on success. If you are going to launch a campaign, do it right and give it the best chance to succeed by investing in design.

3. Set a realistic bar for success.

Whenever you initiate any kind of marketing or sales campaign, you will have a goal that you are trying to achieve. If you are promoting an event, you will have a certain number of attendees you hope to attract. If you are selling a product, you will have a set number of units you may seek to move. In the case of Kickstarter, there is a “funding goal” that is trying to be reached. While the Coolest’s first campaign came close to that funding goal, the organizers of this campaign decided to drastically lower their goal on the second go-around, from $125,000 to $50,000. For crowdfunded campaigns, there is wisdom in having a lower threshold for success. Backers are often more likely to contribute to a project if it is close to meeting its goal or if it has already met that goal, which guarantees that the project will move forward. The backers who pledge to a project that does not meet its goal are not charged their pledge amount, so it is not like they are out any money if a campaign fails, but people who back a crowd funded campaign are likely to be excited about that campaign and the “rewards” that their pledge will bring them. If they know that the success of a campaign is all but guaranteed, they are apt to jump in and join the fun instead of waiting by to see what happens. By lowering your threshold for success, you actually encourage people to contribute earlier in the campaign! In business, having a realistic measurement for success means that a campaign can be seen as positive – and if a campaign yields positive results, it is more likely that you will be able to do other campaigns in the future! On the flip side, if you are unrealistic in your goals for what a campaign will produce, you will be disappointed when the results fall shy of what you were aiming for, even if the numbers you end up with are totally respectable. Set a realistic bar for success and give yourself the momentum to kick off future campaigns that can build on that success!

4. Passionate customers are like gold.

When the second campaign for the Coolest was kicked off, it already had a few hundred passionate supporters – those who had supported the first campaign. These backers helped spread the word on the Coolest, and coupled with the lower funding goal, positive results were seen very quickly (the funding goal was reached in less than 36 hours)! The passion of those initial backers was contagious, and once the campaign started rolling, the success was amazing, and it all started with help from some passionate and vocal supporters. Having customers who are passionate about your company is one of the best ways to help spread the word on what you have to offer. You can promote your offerings on social media as much as you want, but it often just comes across as a company pitching their products. When a person who is not connected to your company does this, it is received very differently. Customers who love your company and evangelize to others in their social circles hold weight with their connections that you do not possess. If a company says that they have “the best prime rib in the state”, that is seen as marketing copy, but if a friend of yours updates from a restaurant that they “just has the best steak I’ve ever had!”, you view that message much differently. It is not seen as marketing, it is seen as a recommendation from a trusted source, a friend whose opinion you may value. While the marketing speak may not get you to try that restaurant, your friend’s recommendation likely will. This is why passionate customers are like gold. They will help spread the word on your business to people who trust them. In turn, you then have the chance to “wow” new customers and create new referral sources that can result in amazing business success, just like what we see with the Coolest campaign.

5. Ask for help.

The final item we will point out actually happens at the end of the video introducing the Coolest. Not content to hope that people will share the information on the campaign with other in their social circle, the video ends will an actual request for those share. Arrows point to the social sharing button on the page, directly underneath the video, prompting viewers to click a link and share that video. Over 350,000 share of that video have been done on Facebook alone (compared to a little over 700 on the first video/campaign). Yes, part of this success in social sharing comes from the overall success of the campaign itself, but you cannot discount the power of asking people for help! Making social sharing buttons available is step 1, but if you want people to use them, ask them to do so! Sometime, making a simple request is the difference between a person clicking that link, and sharing your content, and bypassing that option altogether.

In summary

The campaign for the Coolest is obviously not typical. You should expect to achieve the same, incredible level of success (remember, set those realistic expectations!), but by following some of the principals that we see at play in this products second campaign versus its first one, we can absolutely find more success in our own campaigns and online initiatives.

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