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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Mastering Marketing Momentum: Lessons Learned From Five of the Internet's Most Sharable Slices

More than “likes” or even views, shares can benefit your business by extending the reach of your brand. In other words, shares are the key to exponentially increasing your exposure to new audiences – and ultimately garnering even more likes, views and shares. Here’s a quick look at five recent “sharability” success stories and the lesson you can apply to boost the effectiveness of your own marketing campaigns.

1. Samsung Galaxy S III phone bump bests Apple.

Rather than attempt to compete with the Apple "universe of cachet," Samsung wisely zeroed in on one simple, cool thing that the iPhone couldn't do – as shown in their "Next Big Thing Is Here" campaign. And they framed that moment with a context (a loooong line at your local Apple store) that poked fun at Apple's legion of superfans while emphasizing what they might be missing out on. The resulting viral phenomenon generated more views on YouTube (over 17 million in total) than than all of Apple's 2012 ads combined – and more importantly, pushed the Galaxy S III to overtake the iPhone in worldwide sales in the third quarter of 2012, shortly following the release of the commercial. As selling points go, the "phone bump" might not stand on its own for long. But a well-designed product with other strong features (such as leading 4g technology and a larger screen) allowed this clever presentation to capitalize on its momentum and translate buzz into sales. The clip hit home with a huge audience that was beginning to show some brand fatigue with Apple – and Apple’s well-known, easily-caricatured tribe of brand evangelists. The takeaway: In today’s fast-paced world of business, timing is everything. Always keep your radar up for opportunities – whether that’s exploiting cracks in the competitor’s armor or seizing upon the chance to bring something new to the marketplace – and strike quickly (and creatively).

2. "Man of Steel" trailers take flight.

The last Superman movie, 2006's super-sincere Superman Returns, while reasonably successful, didn't energize the comic-book pioneer's enormous fanbase. Instead, the collective reaction seemed to land somewhere between "not bad" and "not great." Which just didn't cut it. A sequel never materialized in large part because there wasn’t a rabid demand for it. The intervening years have been witness to the huge success of superhero franchises like Iron Man, The Avengers and of course Batman. Much of the flaky "comic-book-ness" of earlier films has given way in the new millennium to earnest, darker, more realistic-looking efforts that hit home with an audience that values cool over camp. This time around Superman, first and mightiest of all costumed crusaders, needed to lose the golly-gee and make with the internal conflict and superpowers. And this set of trailers comes through – in speeding bullet fashion.

The trailers carry an angsty theme, to be sure. But the money moment is when our hero puts his fists on the ground and rockets into the stratosphere. It's a fantastic-looking flight that promises a movie filled not only with its share of 21st-century motivations but special effects that are truly...super. The first trailer drew more than 3 million views – and now, as the movie’s release date nears, the third trailer (also containing the definitive flight sequence), driven by thousands of Facebook shares and retweets, has passed 21 million views. The takeaway: It’s critical to be in tune with your tribe. Motivating someone to choose to share your content over all of the other stuff that comes their way in any given day requires you to give them something that resonates deeply with them on an emotional level, whether that emotion is humor, empathy, excitement, anger or any other feeling in the pantheon of the human condition. You can’t strike that chord unless you are truly one with your audience.

3. Lowes’ #lowesfixinsix vine series helps in seconds.

Lowes’ smart, useful “Fix in Six” series, utilizing the six-second video sharing app Vine, is among the first – and best – marketing efforts on the new platform, which Twitter recently purchased and is rapidly integrating into its text-and links-based model. By its nature, Vine’s six-second time limit forces any application for marketing to be all hook and no sinker. Lowes wisely utilizes the app to serve up content that is every bit as helpful as it is brief. And the fact that it’s all happening on Twitter – the second largest social channel on the Internet after Facebook – means that the audience is potentially huge for marketers who get it right. The takeaway: In a new marketing world where trust – and by extension trustworthy content – is king, achieving the perfect marriage of message and medium is paramount. Whether Vine, Twitter, Instagram or Pinterest is your weapon of choice, know it well and use it wisely.

4. Old Spice’s "I'm On A Horse" rides a viral wave.

Sure, the whole commercial is hilarious – from the shower scene to the handful of diamonds and all the accompanying dialog. In the rapid pace of online culture, it's already secured its place as an Internet classic. It's also a great example of traditional media creating synergy with online channels, as millions of people flocked from TV to the Web to watch this clip again and again. But it all comes back to the last bit – that second of time when the camera pulls back as the actor proclaims, "I'm on a horse." As a closing punchline, this moment had its work cut out for it. But the "best surprise yet" reveal managed to easily top everything that came before. And just like that the clip is over, motivating many to click the replay button. And the embed button, and the retweet button, and the share button, thereby spreading like wildfire among social networks and personal blogs and resulting in more than 45 million views. The takeaway: Granted, there’s no magic formula that guarantees that your next clip will go viral. However, what is guaranteed is that playing it safe is no way to achieve that “sharability” factor you seek. Go out on a creative limb. Sure, it’s scary out there, but if your grandpa’s aftershave brand can push the envelope with the “Man Your Man Could Smell Like,” you can, too.

5. The Oatmeal’s odd but awesome ode to Nikola Tesla.

The Oatmeal, created by Matthew Inman, is one of the most popular comics on the Internet, garnering more than 4 million unique visitors per month and generating more than half a million dollars in income annually. By turns acerbic and sentimental, the strip relies as much on Inman's writing as his simple illustration style. One of The Oatmeal's most-shared installments – and a defining moment that earned him coverage in media giants like Time magazine and Wired – is a rambling rumination on the genius of 19th-century inventor, Nikola Tesla. Almost entirely a written piece, this selection stands as an example of the mysterious, unquantifiable attributes of what sometimes constitutes "sharability." The subject is obscure to most of the population. The piece is almost entirely text and could simply be labeled a humorous essay were it not interspersed with illustrations like this: Yet because of Inman's built-in audience, his genuine passion for Tesla's lifetime of innovation and the media attention given to his subsequent Indiegogo campaign to purchase and renovate Tesla's old lab and turn it into a museum, this particular strip garnered more than 38,000 retweets and 18,000 Google+ recommendations. And the campaign raised $2.1 million in nine days. No doubt Tesla, an erratic genius who studied all aspects of electricity and invented radar and alternating current among other things, would have appreciated Inman's success at capturing Internet lightning in a bottle. The takeaway: Achieving a high “sharability” factor doesn’t require playing to the lowest common denominator. Sometimes going narrow and focusing on creating something that will catch fire within your specific niche can be a powerful strategy.

Now it’s your turn.

“Sharability” isn't necessarily about appealing to a wide audience, although several of the above pieces do that. It's about creating a deep impression with a passionate audience – and motivating that audience to spread the word. A flash of anticipation, a sense of urgency, a helpful tip or a genuine belly-laugh can all create that fundamental desire to let others in on the good stuff. So now it’s your turn. Go forth and create good stuff.

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Deal-Breakers and Dead-Ends: Six Turn-Offs That Alienate Website Visitors

Without question, the task of driving new visitors to your company’s website is not easy. Success requires serious strategic planning and a significant investment of resources, from content marketing and social media promotion to search engine advertising and offline marketing initiatives. So once those hard-won visitors arrive, why in the world would you immediately turn them away? Well, you certainly wouldn’t do so intentionally, but there may be deal-breakers and dead-ends lurking within your site that will repel a potential new customer faster than a cheesy pick-up line and cheap cologne. Here are six mood-killers that you must avoid if you hope to woo new customers, entice them to engage with your site and provide such a positive experience that they will tell all their friends what a great catch you are:

1. Download our app

If you’ve invested in creating an app for your brand, naturally you want to bring this to the attention of mobile visitors and encourage them to download it. But it’s all too easy to cross the line between promoting your app and perturbing your customer. Recently, I was in the process of working on an email marketing campaign using the popular service Constant Contact. I found myself with a spare moment between meetings, so I grabbed my iPad and set out to make a few quick edits to my draft. When I logged into the site and selected the email I wanted to edit, I was greeted with a message asking me if I wanted to download “QuickView”, their app for iPad and iPhone. But I was in a rush and had no interest in downloading and figuring out how to use their app to accomplish the simple task of making changes to an email I had already begun crafting. So I clicked “No, thanks” and was then returned to my list of emails. Once again, I clicked the email that I wanted to edit – and once again I was greeted with the prompt to download the app. I was stuck in a loop of non-productivity. Unless I installed the app, I could not complete my desired action on my iPad. By any standard, this was a very poor user experience. Unfortunately, this is not an unusual scenario. If you browse the Web on your mobile device with regularity, you’ve undoubtedly encountered this type of “Download our app!” a number of times. However, the problem arises when downloading an app is the only viable way to interface with a site via a mobile device and the objective of providing a good user experience is sacrificed in the interest of securing a permanent spot in the user’s pocket. Instead of trying to force your app on mobile visitors, take a more subtle approach. For example, displaying a small banner at the top of your site’s mobile view is a great way to make users aware of your app without disrupting their workflow or compromising the quality of their experience. Never, ever require your visitors to download an app to use your site; rather show them the respect of allowing them to interact with your brand in the way that they most prefer, whether that’s through a browser or through your app.

2. Give us your digits

We get it. When a new visitor comes to your website, you want to capture as much information about them as quickly as possible so that you can continue your engagement with them long after they’ve moved on to other corners of the Web. With this motivation in mind, there are many sites that immediately greet new visitors with a pop-up-style message. Instead of seeing the expected home page content, the user is presented with a request to complete a form to provide their contact information in exchange for a welcome discount offer or to follow the company on Facebook for future updates and promotions. Either way, these pop-ups are very disruptive to the user experience and provide obstacles that only make it more difficult for the visitor to accomplish what they originally came to the site to do. Think about this experience for a moment. Yes, it would be ideal if every visitor to your site would willingly complete a short form that gives you invaluable data. But in reality, no one comes to your site for the express purpose of helping you market to them, so by giving such a message top priority, you are telling them that your needs are more important than theirs. That’s a pretty poor way to start the conversation. This phenomenon is so pervasive that there is even an entire website – tabcloseddidntread.com – dedicated to these types of interruptive messages. While the writing on the site is a bit snarky, the point it makes is a valid one: these messages create a poor user experience from the outset. As a result, any value you might gain in collecting user data is quickly negated if that user has no interest in continuing their engagement with you because you’ve created such a negative first encounter. Instead of leading off the conversation with your survey request, Facebook follow prompt or current promotion, simply allow your visitors to dive right into the site to find the information they’re seeking or complete their desired task. Keep your mailing list sign-up and Facebook links in your site’s universal framework, and if you do your job in creating a positive experience for them, your visitors will willingly allow you to become a presence in their email inbox or their Facebook news feed all on their own.

3. One-size-fits-all framework

Today’s website visitors are accessing our sites on a wide ranging variety of devices with a myriad of different screen sizes, and yet, many sites are still built with the “desktop-only” mindset of years ago. This is a major strike for users on mobile devices who expect more from their experience than simply seeing the desktop site shrunk down to display on their small screen, with text that’s illegibly tiny and links that are nearly impossible to press. The Web is no longer a one-size-fits-all world. That being said, while one “size” may not fit all, you can still have one site that will work seamlessly on a wide variety of screen sizes and devices. By employing responsive design, you can build a singular jack-of-all-trades workhorse that dynamically reflows its layout based on the user’s screen size. The image below illustrates the difference between how desktop-only layout (i.e., the “do nothing” approach) is rendered on a phone’s browser versus a site that’s optimized for small screens with a responsive approach. Read more: Website Design for a Multi-Device World

4. Vexing video

Video can be a powerful way to convey information, but if that video fails, then your message is lost. There are a few ways that video can provide a stumbling block to engagement with your site visitors. First and foremost, not all video formats are compatible with all devices. For instance, Flash videos will not play on iPhones and iPads, which means that instead of seeing your excellent video content, every user on an iOS device will get a message that says something to the effect of “This video cannot be shown on your device.” Other visitors may not want to download a large video due to limited bandwidth or data download concerns, and as a result, your content is not able to achieve the effect you desire. In still other cases, your visitors may be able to download and view a video but may not be able to use audio – perhaps because they are in a public area, such as an office or store. Video without audio is fairly anti-climactic, so if the only way they can consume your message is by watching and listening, then you will leave these visitors cold. The moral of the story is this: If you are going to use embedded video on your site, make sure to choose a format that can be played on all devices and to reinforce its key message and content in other areas for visitors who may not want to watch or listen to a video.

5. The mystery of the disappearing navigation

Your website’s navigation structure is a critical component of the user experience, and the links it contains are the gateway to the information your visitors are seeking. For sites with lots of pages and a deep sitemap, a common design schema is to use drop-down menus that show subpages contained underneath the site’s top-level navigation choices. These drop-down menus are typically powered by Javascript. But what happens if the user has disabled Javascript in their browser or if that script fails to load for some reason? When this happens, your navigation menus may never be shown, leaving visitors stranded with no way to easily maneuver through your site. Failure to load a script is not the only way that navigation suddenly goes missing. Some sites with very elaborate navigation options for the desktop version eliminate the bulk of those options for mobile devices. This can create a dead-end for users who are familiar with the desktop version and are left searching aimlessly for links they will never find. Instead of eliminating links for smaller screens, find ways to present the same content in a way that’s better suited to the device’s display. Additionally, make sure that your site’s navigation has a fallback option should a script fail to load or something else unexpected happens.

6. Page is loading…

Today’s websites have become fat, bloated behemoths. Oversized images and animations, embedded videos and other features have contributed to the substantial size increases we have seen in webpages over the past few years. Bigger pages mean longer load times, which is a major turn-off for visitors who have no lack of other suitors vying for their time and attention online. Better website performance will yield better website results. By optimizing your site’s performance and ensuring that it loads quickly even for visitors with slower connection speeds, you can avoid showing users a half-loaded page and hoping that they will wait around to see the rest. More often than not, that’s a losing gamble, and the visitor you worked so hard to win will turn elsewhere to find a site that will perform according to their expectations.

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