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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Let’s Talk Turkey: The Five Most Important Things Visitors Want from Your Website

What do your visitors want from your website?

The answer to this question depends on a number of factors, including the nature of your business, the type of person who typically visits your site and what they hope to accomplish while they’re there. However, there are certain basic needs and expectations that transcend these specific circumstances and are universal to all visitors.

Over the past few months, I’ve conducted an informal survey of clients, coworkers, friends, family and others that I’ve encountered, asking them this one simple question:

“What do you want when you visit a website?”

While there were many different responses to this question, there were five that I heard again and again. Each person I spoke with mentioned at least one of these five, and many cited more than one.

Let’s take a look at these five critical elements that visitors want from your website:

1. Ease of use

Without a doubt, the most common answer I heard was that people want websites to be easy to use, and this makes perfect sense. After all, it’s 2014. We’re all well versed in using the Web to conduct the business of our day-to-day lives. There’s no reason your website should require a learning curve just to get from point A to point B. Yet, far too many sites are guilty of presenting visitors with an experience that’s confusing, frustrating and completely unsatisfying.

The definitive guidebook of usability, Steve Krug’s Don’t Make Me Think, asserts that web applications must explain themselves. When a visitor looks at a web page, the next step should be obvious and intuitive. With the world of options available at their fingertips, visitors have next to no patience when it comes to dealing with sites where there are any sort of obstacles standing in their way. If they can’t figure out where to go and what to do next in as little as three seconds, it could well be a deal breaker that causes them to abandon your site – and by proxy your business – altogether.

Navigation menus that are difficult to use, important content that is buried deep in your site and nearly impossible to find or a design schema that does not provide visitors good visual cues and clear calls-to-action to direct their experience are all pitfalls that must be avoided if you want to ensure that your site meets the acceptable threshold for ease-of-use.

2. Good information architecture

Just as nearly everyone I talked with said they want a site that’s easy to use, many also said that they want information to be easy to find. The key to achieving this is by creating a concise, logical navigation structure. If your site encompasses a large repository of information and content, it’s a good idea to include a search tool that lets your visitors to use keywords to drill down to the information they’re seeking right away rather than hunting and clicking through the site page by page.

There is a long-held myth of website design that claims all content on a site must be able to be reached in no more than two clicks. While that might sound great in theory, in reality, the task of developing an effective navigational structure is rarely that straightforward.

For example, if you had a website with a hundred pages of content, you could theoretically have direct links to each one of those 100 pages right on your home page in order to allow visitors to access all of your content in only one click. Awesome, right? No – not awesome at all. While that massive menu of links might offer one-click access to your site’s entire content catalog, it will also be a confusing, gargantuan mess that provides visitors with little in the way of clear direction.

Remember, visitors to your site are making instinctive decisions in as little as three seconds. They do not want to sift through a laundry list of dozens of links in order to find the one that’s relevant to them. Rather, they want to make easy, logical choices that get them to where they want to go without a lot of guesswork and back-button clicking.

3. Fast load time

Another popular answer I heard in the course of my survey was fast load time. A webpage that takes too long to fully load is major source of frustration for visitors. After all, if they want to make a decision in as little as three seconds, and your site takes seven seconds to load, chances are good that they’re going to choose to navigate away from your site before they ever even see it. Seven seconds may not seem like a long time, but in the instant-gratification-driven world of the Internet, it’s practically an eternity.

If your site is slow to load for visitors who have a fast Internet connection, you’re really going to be in trouble with users who don’t have the benefit of a lightning-speed connection, including those on mobile devices who might be in a location where network coverage is slow or spotty.

Ensuring that your site loads quickly is crucial to providing an optimal experience for all visitors, regardless of their device or quality of connection. After all, no one has ever complained that a site loaded too fast for them!

4. No ads

Advertising is a necessary evil for many websites. If your business model depends at least in part on revenue generated by ads on your site, then removing those ads simply because visitors don’t care for them is probably not a realistic option. Still, the fact that ads offer little more than an annoyance to most visitors is something that you should be aware of.

When considering ads for your website, you must take into account not only the needs of your business but also the needs of your customers. Ads that make your site more difficult to use should be avoided at all cost, especially intrusive ads that take over the screen or obstruct areas of your content with over-the-top, in-your-face animation or video. These “take-over” ads are impossible for website visitors to ignore; they have to interact with them on some level, even if it’s just to hit the “close” icon, in order to achieve their purpose in coming to your site. Of course, the inability to disregard these ads is why advertisers love this format, but if you use them on your site, you’re running the risk that your customers and prospects will quickly tire of the hassle of dealing with them and seek out a competitor who will offer them a more user-friendly browsing experience.

Ads may be a fact of life for your website, but the types of ads you allow is well within your control. Listen to your customers, and make sure you choose advertising display options that do not compromise the overall quality of their user experience.

5. No bugs

One of the worst experiences a user can have online is when they have invested time in a site, gone through the necessary steps to complete a transaction – whether it’s to make a purchase, sign up for a membership, complete a request form, etc. – only to have the site crash and burn during the final steps of that transaction. This is a soul-crushing experience and one of the best ways to drive customers away for good!

Make sure that your website is working as expected at all times. If you’ve recently incorporated new features into your site, thoroughly test not only those new features but also all other existing subsystems within the site to ensure that no problems have been introduced along with the new code that has been added to the site.

Even if you’ve not recently added any new features or functionality, you should schedule routine testing to make sure the site is operating as expected and does not crash just as your visitors are about to cross the finish line and complete a successful transaction.

What I didn’t hear

The five elements covered in this article are ones that I heard again and again during my experiment. Of course, I heard many other answers as well, including “works well on my phone,” “good prices,” “information in Spanish” and “easy-to-find contact information.”

One of the most interesting discoveries to come out of my survey process was the answers that I didn’t hear. Not one person said that they wanted a site that “looked good” or had a “nice design.”

Nor did I hear any comments that people wanted features like “live chat” or “contact forms.” Does this mean that visitors do not want an attractively designed site or access to helpful features? Of course not – it means that those things should already be a part of a good site by default.

Great design is unobtrusive; it provides elegant yet simple visual cues that make the site easy to use and make information easy to find – two of the most commonly mentioned things that people want from a site. So, while the participants in my informal survey may not have cited beautiful design explicitly, they were, in fact, asking for it by proxy.

Great design and helpful features are not only important; they are expected.

In summary

It should come as no surprise that visitors want a site that is easy to use, loads quickly and works seamlessly. All of these should be par for the course for any site, which makes it all the more surprising to see so many sites that fail in even these most basic areas.

When evaluating the effectiveness of your site, start with these fundamentals. If your site fails the test in any one of these areas, then no amount of flashy features or advanced technology can compensate for the poor experience you’ve provided for your users. First and foremost, master the basics that visitors demand and then work up from there!

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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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