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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The Six Types of Website Visitors – And How to Serve Each of Them

Every website’s audience is comprised of different kinds of visitors, and those people can almost always be broken down into one of 6 distinct categories. Visitors in each of these categories share similar needs and goals on the website, which means that by understanding the needs of each category and ensuring that your website does what it can to meet those needs, you can better serve those individual users. In this article, we will take a high-level look at the 6 categories of visitors common to almost all websites. We will also explore some of the characteristics of each of these categories and what you can do on your website to cater to each of them.

1. The Browser

The first group of visitors we will look at are those that are “just browsing” the site and in their earliest stage of research. These visitors may have need of the products or services that you offer, but they are far away from the point of purchase. Currently, they are seeing what is available so that they can learn what their options are. These visitors are looking to be educated and there is a prime opportunity for you to establish a strong, early-stage relationship with these visitors. To serve the needs of this “early stage research” group, your site should include content that educates visitors. By offering this content, you answer your visitors’ questions and become a trusted source of information. This is a great way to begin building a relationship with people, one that you hope will eventually turn them into customers! Many companies do not like to accommodate this early stage research group because they are so far away from the point of purchase and many visitors in this category will never turn into actual customers. Those companies prefer to focus their efforts on some of the categories which we will cover shortly, those where people are closer to making a purchase and therefore much easier to sell to. This is another reason why this group of visitors offers you a unique opportunity. Not only can you establish an early relationship by offering helpful information, but many of your competitors may have elected not to cater to this group, setting your company and your site apart for these “just looking” researchers. Make basic information easy to find on your site. Consider including some kind of “search tool” that allows these early stage researchers to query the information that they are looking for and find the exact pages of your site for that content. You can also consider adding a “101-style” page of a “FAQs” page that contains the basic questions and information this group of visitors may be after.

2. The Comparison Shopper

The next group of website visitors are those that are further down the road of being ready to make a purchase. They have been educated and largely know what they are looking for in terms of the product or service they need, now they are trying to determine who is the right company to provide that to them. They want to know what sets your company apart and why they should work with you instead of with someone else. In a way, these visitors are also looking to be educated, but not on the general aspects of what you do. Instead, they want to know about your company specifically. These people are motivated and will likely make a commitment soon. Now is your chance to show them why that choice should be you. To cater to this audience, consider adding pricing to your website. This is not always appropriate or even possible, but price is one of the deciding factors in almost all purchasing decisions, yet many companies elect to leave pricing off their website because of fears that they will show their hand to competitors (more on that later). If you can add pricing to your site, do so! Even if you are not the lowest, adding pricing has value because so few of your competitors have pricing on their sites! This sets you apart and, for some visitors, it may immediately answer a major concern for them (“what is this going to cost me?”) and, if that price is what they were hoping for, you may be able to seal the deal right then and there. Besides pricing, other helpful information that you can consider adding could be warranty or service information, average timelines for the work that you do, or any other content specific to your organization and offerings.

3. The Decider

The next logical group to cover are those customers that are absolutely ready to buy. They have been educated on both the products or services that you offer as well as on what sets your organization apart. They have decided that you are the right fit for them – now you need to make the purchasing process as easy as possible so you can close this deal! If your website actually coverts business online, meaning you allow for online purchasing or registration and that is how you gain customers, then make sure that the check-out or registration process is simple and working! I am always amazed when I see a website that does a great job educating visitors and differentiating their company, but a technical glitch prevents visitors from taking that final step and becoming actual customers! Error messages that come up during checkout or registration will destroy the relationship you have been working hard to forge, so be sure that your site is up and running as intended! You should have some kind of “regular checkup” planned for your site. Waiting for customers to report to you that something is broken is waiting too long, because many customers will never report that problem to you - they will simply take their business elsewhere. This is why your site needs to be working as intended always – and you need to have a process in place to review the site’s functionality regularly. If you do not allow customers to convert online, but they instead need to call to schedule an appointment with your company, then make sure that it is obvious that they need to do this and make sure your contact information is easy to find! Furthermore, consider doing away with automated phone systems whenever possible. A motivated buyer who picks a phone and is greeted with a too-long, robotic welcome message is often as much of a deal-breaker as a website that throws errors. You’ve convinced this person that your company is the right fit for their needs, now greet them with a human touch and stay away from the automated systems.

4. The Familiar

So far, we have looked exclusively at net new customers, but one of the best sources of new business for any company are their existing clients. While your site needs to appeal to new customers, it should also speak to existing ones who are familiar with your company and happy with your services. In many cases, customers may work with you for one specific product of service, unaware of other services you offer as well. Your site can make these customers aware of your full range of offerings and strengthen the relationship you have with them. Your website also allows you to inform existing customers about important updates or announcements that may affect them. These could be simple hours of operation changes for your company or other updates that they should be aware of. Remember, if you started out a relationship by being a thought- leader and provider of useful information, that should not stop once you are engaged with those customers. Consider adding an ‘Existing Customers’ section to your site with this type of information. You do not necessarily need to password protect this information, assuming it is not client-specific and sensitive, but rather allow anyone to view it. In this way, you can give existing customers useful information and show other visitors your commitment to long term relationships with your clients!

5.The Applicant

Stepping away from the ‘customer’ side of your website’s audience, there are other visitors to your site that you should consider. One of these is potential new employees. If you site has a ‘careers’ or ‘job openings’ page, then this is likely where potential new employees will be looking. You do not need to give these pages front-and-center, top-level billing - most job seekers are motivated enough to find this content even if it is not given the same level of prominence that you give you customer-oriented content (and if that job seeker is not motivated enough to find the link, you probably don’t want to hire them anyway). In addition to the actual job listings, however, you may also want to consider adding some content about what life is like at your company – your ‘company culture’, for instance. When you are looking to recruit the best talent out there, they will want to know more about your company than just the hard facts covered in a job listing. This is where a little information about your company culture can really come in handy and help you appeal to the best of the best.

6. The Competitor

Earlier I mentioned that many companies do not put pricing on their website for fear that their competition will find it. This doesn’t end with pricing. I have seen companies “hide” content behind registration systems, or elect to leave it off a site altogether to prevent competitors from gathering that information. In almost all cases, this is a bad idea. After all, if you make your information difficult for competitors to find, you also make it difficult for actual customers to get that same information. Yes, there are times when the information you provide to customers is so individualized or sensitive that you could not make it public on your site, but that is an edge-case. For most businesses, the only reason they elect to leave this content off their site is that aforementioned “fear of competitors getting it”. Here’s the reality, however – if your competition wants that information, they will get it. If they are motivated to get that info, they will jump through the hoops you set up. Customers, however, will not generally go to those lengths. So by “hiding” content from competition, you really only keep it away from the very people you want to speak to – new customers! Do not be afraid of your competition. Be bold and put your content out there for all to see. One of two things will happen. Either your competition will follow suit and put their info out there as well, which allows you to compete on a level playing field, or they will continue to hide it away, which shows customers how open you are and often makes you the more appealing choice. Either way, by making your content easy to access for all categories of visitors to your site, to do the best job of serving the ones that matter to you most.

Appealing to all visitors

By understanding the needs of the visitors your website has, you and your web or marketing team can make the right decisions to best meet the needs of all visitors.

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Parallax Scrolling 101: The Good, The Bad and The Beautiful

One of the hottest trends in website design is parallax scrolling. First employed by Ian Coyle on the Nike Better World site in 2011, this is a special scrolling technique wherein background images move by the camera – or in this case, your computer screen – more slowly than images in the foreground, thereby creating an illusion of depth in what is in reality a two-dimensional environment on your screen.

With its explosive popularity, you have likely seen this effect in use but may not have known exactly what it was or how parallax scrolling is reshaping the landscape of today’s Web. But just like any trend or technique, parallax scrolling is not the right fit for every site, and it does have a few drawbacks. To help you decide whether this is a bandwagon you should jump on, let’s dive in and take a look at parallax scrolling from every angle – the good, the bad and the beautiful.

The good

The obvious benefit of parallax scrolling is its undeniable visual wow factor. Even though this technique has become very popular of late, it is still not so overdone that it has become commonplace. This means that any site that uses this approach well will make a lasting impression on its visitors. In a world where every company and organization is looking for a way to stand out from the crowd, this can be a powerful advantage.

The bad

While the bold visual impact of parallax scrolling is hard to beat, there is a downside to all that eye-popping punch: due to the weight of these graphic-intensive designs, these sites generally take a bit longer to load. In our modern age of impatience, this could potentially be a deal-breaker. Many people will not wait more than a few seconds for your site to load, so if your awesome parallax scrolling means that you have a 20-second load time (which is not unheard of), that is a big problem.

The reason that parallax sites take longer to load is due to the size of the images that must be used to create this style of presentation. As a result, you must be cautious in how you implement this technique. It's easy to overdo it, thereby making your site so large and cumbersome that you’ll turn away customers who aren’t inclined to wait for the page and its images to load.

If you are considering incorporating a parallax effect on your site, be sure to consider performance and work with your web development team to ensure that all images are optimized so that your site not only looks great but also loads as quickly as possible.

The beautiful

Let’s look at a few examples of parallax scrolling that really amp up the wow factor:

Life Of Pi

The website for the movie Life of Pi illustrates the incredible journey of not only the characters in the film but also of the filmmakers who took on this challenging story.

Through the use of numerous still images taken from the film and pieced together, the implementation of the scrolling technique here gives the illusion of video content, providing an element of motion that really enhances the presentation.

Other effects used include images that start out black and white or as sketches and are colored in as you scroll down the page, as well as content that appears from the sides of the screen. In this way, the site is the perfect reflection of a film that relies heavily on visual effects, recreating that feeling of “movie magic” on the screen for its visitors.

Rimmel London

Rimmel London's site uses a traditional parallax effect, where images of the company's products appear in the foreground and scroll at a different rate than those in the background. This gives the site a sense of visual interest and perception of dimension that you simply would not get with flat, static photographs.

Parallax.js

This site, which is a sandbox aimed at web developers, has an incredibly complex and layered implementation of the parallax effect.

The scene depicted has multiple layers of ocean waves that move at different speeds and patterns along with a lighthouse that bobs up and down to give the illusion of an undulating seascape. For added effect, users on mobile devices equipped with a gyroscope can use the orientation of the device to manipulate the way the page moves and flows.

As this intricately layered demonstration of the parallax scrolling effect shows, with so many layers and axes of motion at your disposal, there is a mind-boggling array of possibilities for the kind of experience you could design for your visitors.

Make Your Money Matter

The purpose behind this website is to illustrate the difference between putting your money in a bank versus a credit union.

As you scroll down the page, a series of whimsical illustrations are layered into the page to tell the story of “where your money really goes” when you put it in a bank. In doing so, a topic that is fairly dry and serious becomes much more engaging and approachable through the strength of its presentation. The end result is much more powerful than it would be had the site’s owners simply published a flat page of content and bullet points relating this same information.

Sony

In much the same way as the site for Life of Pi, Sony uses a series of photographic images strung together to create the sensation that the visitor is watching a video in motion, as Sony’s products – ranging from a 4k television screen, speakers, a smartphone and more – appear to assemble themselves right before their very eyes.

This is a very cool presentation technique that far surpasses what traditional still photography alone could capture. Even a video of the product assembly process would not be nearly as engaging, because here, there is the added element of surrealism where the user’s scroll is what controls the build of the products.

TEDxGUC

The site for TedxGUC is far less intricate than others covered so far, but it’s still a great example of how parallax scrolling can deliver a narrative via the Web.

Using nothing but elementary illustrations and some well-written copy, this approach conveys its intended message much more effectively than it could through a few paragraphs of text alone. In fact, the strength of this site is in its simplicity, which goes to show that you do not need to be as over-the-top as the Life of Pi or Sony examples in order to use make effective use of the parallax scrolling technique. Sometimes, less is, in fact, more.

But does it convert?

The million dollar question is whether parallax scrolling has any measurable impact on the power of a website to convert leads and customers. While the results are still hazy on that front, a Purdue University study from 2013 did find that “although parallax scrolling enhanced certain aspects of the user experience, it did not necessarily improve the overall user experience.” This is, of course, just one attempt to evaluate a relatively new technique, but it is noteworthy.

That being said, this particular study did not take into account the memorability of the sites included. The ability of parallax scrolling sites to make a lasting impression is one of their key benefits – one which could theoretically have a very real effect on the site’s ability to capture and convert customers.

In summary

While the business benefits of parallax scrolling are yet to be fully determined, the visual wow factor of this technique is very appealing and is one of the main reasons it has become such a popular trend. In the end, like any element of web design and marketing, parallax scrolling is something that you and your trusted web development team will need to decide whether or not it is a fit for your brand and your website.

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