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.

---

SEO 101: A Plain-English Primer

In today’s marketplace, when people have a question, want information or need to find a product or service, they don’t flip open the Yellow Pages. They don’t scour online directories. In May 2010, Americans conducted 15.9 billion searches*Instinctively, they turn to search engines like Google, Yahoo and Bing. As a result, these sites hold the keys to targeted encounters between you and prospects who are looking for a solution that you can provide. In May 2010, Americans conducted 15.9 billion searches* using the five major search engines. Of those, 63.7 percent were executed on Google sites, while Yahoo and MSN sites claimed 18.3 and 12.1 percent, respectively. That’s a tremendous pie, and you undoubtedly want a piece. Unlike in the days when the Yellow Pages ruled the world, you can’t buy your way to prominence on an organic search results page. Fortunately, you can take a proactive approach to determining where you land in the ranking for applicable product- or service-related keyword phrases through the practice of search engine optimization, known as SEO. Much is to be gained by appearing in the first few results of a search. Users want immediate answers and are not likely to wade through pages and pages of listings. Furthermore, because the major search engines have built their reputation on returning quality results, the higher your ranking, the more apt the consumer is to assume that your site will deliver the solutions they are looking for. Therefore, in the simplest form of the equation, a higher ranking equals greater probability of a user coming to your site, more prospects seeing what you have to offer and increased opportunities to convert visitors into customers. As a result, garnering a favorable position in the results for select search terms is one of the foundational aspects of effective marketing today.

What SEO is and what it is not

SEO is not a turn-key solution.Let’s be clear: SEO is not a turn-key solution. There’s no SEO magic dust that you can sprinkle over your site and instantly advance from page five to page one. The value of Google from the user’s perspective is the efficiency of entering search terms and receiving relevant and trustworthy results without having to sift through a sea of unpopular and unhelpful spammy sites. In fact, the major search engines are constantly advancing and sharpening their algorithms in order to ensure that they protect their stature as the gatekeepers of good information. What does this mean for you the business owner? Achieving the top spot does not come easily, and it takes an ongoing, dedicated investment of time and resources to work your way up through the rankings of a search. After all, if just anyone could fake their way to number one, Google would be worth nothing. Unfortunately, because of the growing importance of SEO, it has become a lucrative field for marketing agencies looking to make a quick buck. There’s a proliferation of snake-oil salespeople who would have you believe that SEO is a simple, one-time fix that will launch you to the top of the list and send your traffic numbers through the roof. This is for their benefit, not yours. As a result of the misinformation and half-truths preached by these shysters, it can be difficult to separate truth from fiction, both in terms of what it takes to improve your standing and what to expect once you do. SEO is a complex process, but you certainly don’t need to become an authority in the minutiae to grow your business successfully. However, you should have a foundational understanding in order to sort out the legitimate practices from those that will only waste your time and money.

The anatomy of a search engine

At a basic level, all search engines operate the same way. The Web encompasses billions of documents that are bound together through links. Search engines use these links to find and access individual web pages and files, using automated “spiders” to crawl and index the content contained therein. All of this information is stored in trillions of records that are tied to specific keywords or phrases. Therefore, when a user initiates a search, the engine doesn’t have to scan all of the many billions of web pages in existence. Instead, it must only access the particular record that holds the index of information pertaining to the terms entered, making it possible to retrieve vast amounts of data in mere fractions of a second. However, search engines do much more than pull back data and generate randomly ordered lists of links that are related to the terms entered in the query. Rather, the results are sorted and ranked based on importance, which is gauged according to relative popularity, following the assumption that a site or page is popular due to the quality of the information it contains. Therefore, the objective of SEO is not only to ensure that the major search engines identify your website content as being relevant to the keywords that pertain to your products or services but also to increase the perceived importance of that content.

Turning the tables on search

You are undoubtedly very familiar with the mechanics of using a search engine. These days, online search is as deeply ingrained in our daily lives as eating or sleeping. However, as one who is charged with growing a business, it is a useful exercise to take a step back and seriously reconsider the search process, looking at it through the eyes of a prospective customer. Sure, it’s possible that a user might search for your business by name – “Sally’s Bakery,” for example. It’s easy to land at the top of those results. However, in that case, the searcher essentially knew what they’re looking for already, perhaps because they are a returning customer, they’ve seen your sign while driving down the road or they’ve been referred by another customer. The brass ring of SEO is capturing organic traffic – prospects that may never even have heard of you before.These types of visitors are good, but they aren’t necessarily the primary target of your SEO efforts. Instead, the brass ring of SEO is capturing organic traffic – prospects that may never even have heard of you before. These are users that are searching with more generic keyword phrases like “birthday cakes Charlotte” or “cupcakes Charlotte.” It’s not as easy to climb the rankings of these results, but it’s conquerable – not to mention profitable. It’s important to understand that each and every one of the billions of searches conducted each month begins with an identifiable need. Therefore, first and foremost, you should ask yourself two questions: “What types of problems do people have for which I can offer a solution?” and “What words or phrases would they use to express that need?”. The answers might not be quite as straightforward as you think. Let’s say you own a professional landscaping company. Certainly there are people who will search for “Charlotte landscaping” or “Charlotte lawn care,” and without question you want to make sure that your site is optimized to be ranked high among the results. But there are many, many other search terms like “landscaping ideas,” “garden,” “roses,” “weeds,” “fertilizer,” “insect control,” “How do I make my home more energy-efficient?” and even “How do I sell my house?” that are still relevant to your business. After all, chances are good that you would have something of value to offer anyone in your area that was experiencing a need related to one of those ideas or questions. Therefore, you should take all of these into account when developing your SEO strategy.

What’s next?

Now that you have a deeper understanding of the fundamentals of search, you’re well-armed to apply that knowledge to the practice of SEO. The great news for you as a business owner or marketer is that there are actually many things you can do yourself to improve your standing with the major search engines. Even better, many of these tactics also serve double-duty in supporting and reinforcing your other marketing efforts. Before you get started, be sure to read SEO 102: 13 Steps to Improve Your Ranking the Right Way. While there’s no instant formula that will launch your site to number one, by implementing these tried-and-true SEO techniques with patience and persistence over time, you can be confident that you will yield real results. * Source: comScore

---

Flex Your Expertise

As one charged with growing a business, there is undoubtedly always one question lingering in your mind: where's my next lead going to come from? Would you believe that sharing just a few minutes of your time and your expertise each day could inject new life into your sales pipeline? The answer is Answers – that is, LinkedIn's Answers forum. Designed as a platform for professionals to exchange expertise, this lesser-known feature of the LinkedIn network can be found under the "More" menu options in the top navigation bar. If you already have a LinkedIn profile, using the Answers forum to attract new leads is easy as 1-2-3:

Step 1: Do your homework.

As with any social media network, it's important to get a feel for the lay of the land before you dive right in, so invest time up-front familiarizing yourself with the LinkedIn Answers forum community. A good place to start is by perusing the leaderboards of top experts in the categories that relate to your business. Click the "see all my answers" links next to these members’ names, and look for commonalities among the answers that were chosen as best. You might even want to test the waters a bit by asking a good question or two so that you can gage the type of responses you receive. Also, if it's been a while since you established your LinkedIn profile, now's the time to dust it off and give it a polish. When you become active on the forums, it's likely that many new people will click through to your profile to qualify your expertise. Make sure you deliver a strong first impression by reviewing each area of your profile to confirm that it is complete and up-to-date. Sharpen the language you use to describe your experience and specialities so that it is precise and powerful. If you're active on Twitter or you have a blog, you can even add applications that will automatically publish your latest tweets and links to your most recent posts on your profile.

Step 2: Turn on your radar.

Once you feel comfortable with the inner workings of the Answers forum, it's time to start looking for opportunities to participate. Questions posted on the forum are divided into categories, from administration and business operations to sustainability and technology, and these broad topics are further subdivided into more specific areas of interest. Don’t try to keep tabs on every question asked. Instead, focus your efforts on the categories that are most closely related to your areas of expertise and where your prospective customers would most likely be active. A great way to streamline this process is by subscribing to the RSS feeds for your chosen categories and setting up a folder in your reader of choice where they can be collected in one location. Rather than having to waste time every day clicking around the forums to browse each category of interest to you, questions will be delivered directly to you in real time. All that's left for you to do is make a quick, efficient scan of your feeds folder once or twice a day to find a few open discussion threads where you can contribute helpful, practical advice.

Step 3: Share your expertise.

When you identify a question that presents an opportunity for you to add something meaningful to the conversation, simply click through to the corresponding discussion forum page, hit the yellow "Answer" button, compose your response and submit. There's no need for a hard-hitting sales pitch. Just talk about what you know with ease and authority. As is true throughout the social media universe, be authentic and allow your personality to shine through in your answer. While you'll want to be conscientious of your spelling and language and maintain a professional demeanor, your response should come across as friendly counsel from a trusted advisor, not an encyclopedia entry. Imagine that the person who asked the question is standing right in front of you, and keep your answer conversational in tone and free of off-putting technical jargon. Be generous with your expertise, and don’t fret about giving away inside secrets. By demonstrating your depth of knowledge and familiarity with the subject at-hand, you'll boost your chances of someone seeking you out to continue the conversation one-on-one. The more personalized you can make your response, the better. Take a few extra moments to review the profile of the person who posted the question. Use the information available to you to custom-tailor your response to their needs. You'll score extra points if you can give a specific example that is relevant and useful to them in their industry or job position. You can also supplement your answer by including links to other web content that might be helpful to anyone who would like to explore the subject further. If you publish a blog, this is an excellent opportunity to link to posts that offer more information about the topic in question. While there is an option to reply privately to the LinkedIn member that asked the question, it will serve you better to post all your answers publicly. By making your response available to anyone who might be interested in the same topic, you'll maximize your exposure to prospective customers and increase the likelihood of reaping good leads from your efforts.

Elevate your profile

As you continue to contribute to the community, your efforts will begin to compound themselves. As an active participant in the Answers forum, you'll elevate your visibility on LinkedIn and gain exposure to members who might otherwise have never had occasion to encounter your profile. Over time, if you consistently provide authentic advice that is sound and not self-serving, you'll develop a reputation as an expert in your field. People will reach out to you based on the depth of your knowledge and the generosity of time and attention that you demonstrate in your answers. Moreover, when one of your answers is selected as best by the member who posted the question, you'll receive special recognition on your profile as an expert in that category. This is a great form of peer validation – an invaluable commodity in any online community. The more best answers you earn, the higher you’ll appear on the leaderboard of experts in your category, giving you an added boost of credibility. Do yourself a favor and check out the LinkedIn Answers forum today. With over 75 million LinkedIn members worldwide, you won't run short of potential leads anytime soon.

---