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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Intelligent Design: Transform Your Website into a Sales Engine with Machine Learning

Machine learning: The phrase evokes images of computers playing chess or IBM’s Watson destroying two legendary Jeopardy! champions in a three-day tournament. The truth is, though, machine learning is no longer a novelty; it’s now an integral part of our daily lives. Every time you receive a product recommendation from Amazon, your email server weeds out spam before it reaches your inbox or you enjoy a playlist on Pandora, you’re seeing machine learning in action. In a nutshell, machine learning is the science of training computers to recognize data patterns and make adjustments automatically when those patterns change. While on the surface this may not sound very exciting, nothing could be further from the truth. In fact, machine learning is the key to transforming your website into a lean, mean selling machine.

Understanding machine learning in 100 words or less

Machine learning uses algorithms to build models from data; as more data is collected, the algorithms are “trained” to adapt to changes. There are two ways in which machine learning can be implemented: supervised and unsupervised. Supervised learning algorithms are used to create models that establish relationships between types of data — the relationship between purchase data and user clickstream data, for example. Unsupervised learning uses algorithms to gain insights into customer behaviors and preferences by looking for patterns within the data. Both of these methodologies are designed to make marketing and e-commerce more exact, more personal and more profitable.

Putting machine learning to work

Netflix, Pandora and Amazon are all familiar examples of machine learning in action. All three use recommender systems powered by complex algorithms. These systems collect data about your browsing activities, past selections and any ratings or reviews you may have provided. Then they segment you into clusters with other customers who have demonstrated similar interests or behaviors and use this data to suggest items that might appeal to you based on the browsing and purchasing habits of these other customers. You see this on Netflix as the category titled “Because you watched...” and on Amazon as “Customers who viewed this also viewed...” To gain a deeper understanding of how these algorithms work, let’s take a closer look at Amazon. To Amazon, you are a very long row of numbers in a massive table of data. Your row represents everything you’ve looked at, clicked on, purchased (or, equally as important, not purchased) or reviewed on the site. The other rows in this gargantuan table encompass the same thing for the millions of other customers who shop on Amazon. With every click, visit and purchase, more data is added to your row, which allows Amazon to constantly mold and shape the products it recommends to you and the special offers you receive based on an ever-evolving stream of information about you that is being collected and stored. Another innovative example is True Fit, a retail software start-up that is on a mission to apply data analytics to increase customer confidence in online clothing purchases while decreasing the number of returns for e-railers. Well-known fashion retailers, including Nordstrom, Macy’s and Guess, have implemented True Fit’s algorithms on their e-commerce sites. When customers shop on these sites, they’re asked to create a profile that includes their height, weight and perhaps most importantly, the size and brand of their favorite piece of clothing. Using that data, True Fit is able to recommend the correct size for a specific brand and article of clothing. Even more importantly, as customers continue to use the True Fit system, it learns more about their personal style and preferences and steers them toward purchases they’ll be more likely to keep and enjoy rather than return.

How machine learning drives smarter marketing

You don’t need the resources of major e-commerce giants like Amazon or Netflix to take advantage of machine learning to to improve your e-commerce site and your online marketing efforts. By enhancing your existing site with systems that allow you to create a virtual marketing intelligence brain, you can create a more personalized – and therefore higher quality – shopping experience for your customers. By establishing this type of marketing intelligence ecosystem, you can mine the data provided by customers every time they visit your site to answer vital questions that will help you fine-tune your site and your online marketing strategy – questions like these:

• How likely is a given website visitor to convert?
• What behaviors characterize customers who are likely to buy?
• What behaviors characterize customers who are likely not to buy?
• How can new visitors be identified as high-potential long-term customers?
• Which type of web traffic has the most value?
• Which products or services appeal most to a given segment of customers?
• Given the contents of a particular customer’s shopping cart, which additional products are high-potential recommendations?
• How can website visits be optimized to provide the best possible experience for each individual customer?

Making it personal

The final question in the list above is one that deserves special notice because of the staggering potential for using machine learning to create a more personalized shopping experience – one of the key drivers for increasing online sales. Not only can the data collected via such marketing intelligence ecosystems be used to drive recommender systems, it can also be used to create personalized advertising based on market segments — or even individual profiles — that can be distributed across a variety of desktop, mobile and social platforms. This type of advertising can be tailored to any number of personal preferences and demographic information, including age, marital status, location, lifestyle choices, typical purchases, brand preferences and so on. Ads can be focused to such a granular level that they reflect specific colors a given customer prefers, and their individual purchase drivers, such as status or cost-effectiveness. Another exciting aspect of machine learning-based personalization is the development of individual customer profiles. You can even combine online and offline customer data to create a more complete picture of a given user. Types of data included in this profile might include online and in-store purchases, membership and activity in rewards programs, product ratings and clothing sizes. Just imagine how much more powerful your marketing efforts could be if you were armed with this level of information. One of the most important aspects of a successful marketing intelligence ecosystem is how data mined from customer activities is combined with sound business rules in order to make smart recommendations that are well received by customers and that do not compromise their trust in your brand. For example, most people who walk into a supermarket like bananas and will often buy some. So shouldn’t the recommender simply recommend bananas to every customer? No – because it wouldn’t help the customer, and it wouldn’t increase banana sales. So a smart supermarket recommender would always include a rule to exclude recommending bananas. At the other end of the spectrum, the recommender shouldn’t push high-margin items just because it’s beneficial to the seller’s bottom line. It’s like going to a restaurant where the server steers you toward a particular high-dollar entree. Is it really his favorite? Or did the chef urge the staff to push the dish because it comes with a side order of premium mark-up? To build trust, the best recommender systems strive for some degree of transparency by giving customers clues as to why a particular item was recommended and letting them adjust their profile if they don’t like the recommendations they’re receiving.

Science fact, not fiction

Machine learning can give your business a serious competitive edge by opening the door new opportunities in the marketplace. It can help you personalize and improve your customer experience dramatically and thereby drive sales and revenues. Creatives and developers alike are rapidly pioneering new and innovative ways for marketers to use machine learning — and the future of marketing built on these ideas has seemingly endless possibilities.

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Get it Type: Six Fundamentals of Good Typography in Website Design

Typography is often one of the least appreciated – yet most important – aspects of website design. So much more than just the “font” that is used to present your site’s content, the choice of typeface does as much to set the tone of the site as the colors, images and other visual components of the design. If the content on your website is your brand’s message, then the typography is the voice with which your site speaks that message. The study of typography has a long and rich history. While designers work for years to perfect this practice, by cultivating an understanding of a few basic principles, you can more effectively communicate with your design team as you work collaboratively to make the right typography choice for your website and, through those choices, find the perfect voice for your site. Here are six fundamentals of good typographic design that will help you avoid potential pitfalls and make sound aesthetic choices that will strike the right tone and support the delivery of your message:

1. Know what’s possible.

If you’ve been involved in a website design project in the past, then you’ve likely heard the phrase “web-safe fonts.” For years, limitations in web browsers forced us to utilize a very small group of fonts for our websites. If you requested the use of a font that fell outside of this select group, you would have been directed, instead, to one of these web-safe fonts so that the site’s text could be reliably displayed across a wide variety of browsers. In the past few years, however, this restriction has been greatly minimized as a new feature called @font-face (pronounced “at font face”) has been introduced, allowing us to make use of thousands of new fonts on our websites in a reliable way. This is both a blessing and a curse. The blessing lies in the ability to use the wide array of wonderful typefaces available to us today to create incredibly rich and unique designs. The curse is that, with so many options, it’s all too easy to overdo it and create a muddled mess with competing typefaces that obfuscate the message you are trying to send. Also, despite all of the advancements made in web fonts in the past few years, there are still limitations to what we can and cannot do with fonts on websites, so ask your web design team about these limitations to ensure you make choices that will work on a technical level.

2. Make strategic use of different font classifications.

Different font classifications have different feels and serve different purposes, so developing an understanding of these classifications is a good place to start.

Serif

A serif is “any of the short lines stemming from, and at an angle to, the upper and lower ends of the strokes of a letter.” If you look at a font like Times New Roman, you will notice the little flourishes that hang off the ends of each letter, adding an extra embellishment to those letterforms. Besides Times New Roman, other popular serif fonts include Georgia, Baskerville, Garamond and Palatino. Serif fonts are often used when you want to convey a sense of history or tradition in a design. Historically, serif fonts were used in the body text of printed works because they made large blocks of text easy to read. For computer screens, serif fonts are very versatile and can be used effectively for either body text or headlines. The accounting and business consulting firm KLR uses the serif font Georgia throughout their site to create a look that conveys a sense of professionalism, trustworthiness and experience.

Sans-serif

Sans-serif, or “without serif,” fonts feature letterforms that do not have the extra embellishments found on serif fonts. Common sans-serif fonts include Arial, Helvetica, Verdana, Futura and Tahoma. In printed text, sans-serif fonts were typically used only as headlines because it was easier to read body text set as a serif font rather than a sans-serif, but for computer screens and websites, sans-serif fonts are equally as readable and versatile as serif fonts, so they can be used either for headlines or body text. The straight lines of sans-serif fonts and the lack of extra ornamentation often make these typefaces good choices to create a sleek, modern look. An example of sans-serif fonts can be found here on Fame Foundry in our navigation, our main billboard message and throughout our site in both headlines and body text.

Slab-serif

Similar to serif fonts in that they have extra embellishments added to them, slab-serif fonts often feature thicker, chunky letters whose serifs are blocky with little, if any, contrast between thin and thick lines. Typical slab-serif fonts include Rockwell and Clarendon. The bold letterforms and serifs of this font classification often give them a strong, impressive weight when used as headlines. These fonts are typically not used as body text but are often set in large sizes as headlines. An example of slab-serif fonts can be seen in the logo, navigation and main headlines of Brown Family Seafood’s website, which uses a typeface called ChunkFive.

Display

Display fonts are typefaces that are typically only used at large sizes and are therefore better suited to headlines and large messages than body text. Display fonts typically have lots of character to them and are richly designed. With a wide variety of looks and styles available in display fonts, these fonts can be an excellent choice for headlines since they will add that character to the design, but these fonts are also easy to abuse or overuse. Typically, more than one display font in a design is too much. A few examples of display fonts are shown below:

Grunge

Grunge fonts are typefaces that are designed to show artificial wear, almost like the printing on a vintage t-shirt that has been through the wash many, many times. These fonts, which are also typically used only in headlines or for large, short bursts of text, are a great choice when you are trying to add a worn, textured feel to your design. The city locations listed in the billboard text on Zombie Charge, which tries to recreate a worn and battered look for their zombie-themed adventure runs, uses a grunge font called Umbrage.

Script

Script fonts have a classy, elegant feel to them. These fonts typically have long, flowing characters and very thin letterforms. Because of this, script fonts are often only used for headlines and at larger sizes, because if you set these fonts too small, the thin letters become unreadable. Script fonts are a great choice when you are looking for a high-end, elegant feel and tone. You can see a script font, Allura, used in a number of places in the design for Concord OB/GYN, including in their navigation and main billboard messaging.

Hand-drawn

Fonts that are classified as “hand-drawn” have an organic, if perhaps flawed, look to them. If a script font is drawn by a master artist, then a hand-drawn font is scratched out by an everyday writer who may be in a bit of a rush. These fonts can be used to add a human touch to a design and make it feel like an actual person, and not a digital computer, wrote out the words. The font Mathlete that is used on the billboard message for Sweet Nina’s Nom-Noms has an organic, hand-drawn feel to it that reflects the handcrafted desserts that the company offers.

Novelty

Novelty fonts are often made to replicate popular brands and their distinct characteristic look (think Coca-Cola or Harry Potter). Because of their inextricable association with a well-known brand, these fonts are rarely appropriate to use on a website for another company. Other novelty fonts simulate things like dripping liquid, wood pieces or bones to create the letterforms. While these display fonts are not immediately associated with another brand or company, their overly stylized design also makes them a poor choice for most applications – although if you are going for this type of overly stylized look (for a Halloween-themed billboard message, perhaps), then they can be considered. A few examples of novelty fonts are show below:

3. Always preserve readability.

As you undoubtedly noticed in perusing the above overview of font classifications, most of these fonts are meant to be set at large sizes as headlines. Only serif and sans-serif fonts are versatile enough to be used effectively for both headlines and body text. This is because of readability. If the font you use for your website is your site’s voice, you not only want to be sure the voice is appropriate for your brand but also that the voice speaks clearly. In this case, “speaking clearly” means having text that is easy to read. The overly stylized letterforms of grunge or display fonts and the thin letters of script or hand-drawn typefaces make them difficult, if not impossible, to read when set at smaller sizes. Since body text is set at smaller sizes, using these fonts would be an inappropriate choice. Regardless of which font you use, be sure to view it at the size that it will be set at for the actual website and in the colors that will be used. This will allow you to see the contrast that font has when set against its background so you can determine if the choice you have made provides an easy reading experience for your audience.

4. Avoid overused fonts.

Certain fonts carry a stigma with them due to how they may have been used, or overused, in the past. Fonts like Papyrus have been used in so many – often poorly applied – ways that they immediately have a negative association attached to them. In the case of Papyrus, there is even a website called Papyrus Watch that will show you many examples of how this font has been used and abused. Other fonts become overused in a relatively short time. The typeface Gotham was used by the Obama campaign in 2008, and it quickly started showing up everywhere as other designers jumped onto the bandwagon of this suddenly popular font. As a result, Gotham quickly hit the saturation point and now feels cliched. Some fonts may not be overused in general but only in your niche or market. If your competitors all use the same type choices, there is an easily forgettable, vanilla quality to that approach. By choosing a different typeface, you can set yourself and your site apart from your competition right from the start.

5. Practice restraint.

The wealth of fonts available to use today makes it very easy to overdo it, but by practicing restraint and limiting your site to maybe two or three different font choices at most, we can work to avoid overuse. As Robert Bringhurst says in his definitive volume, The Elements of Typographic Style, “Don’t use a font you don’t need.” By limiting your site’s design to only a couple of choices, you’ll create a clean, clear visual rhythm and ensure that the variety of type styles do not create a confusing mess.

6. Choose complementary fonts.

One way to limit your font choices is to select a pair of fonts that contrast and complement each other, perhaps with one choice for headlines and another for body text. This contrast, and the restraint demonstrated by your choices, will help create a professional and readable presentation. A look at my own personal website shows this contrast. The site uses two fonts, the thick slab-serif ChunkFive for the navigation, main billboard message and logo, and a contrasting sans-serif font, Roboto, for the body text. The thick, chunky letterforms of the slab-serif work well alongside the thin, clean letters of the serif, creating a presentation that is easy to read with font choices that do not overpower the messages I am trying to send.

In summary

With a basic understanding of typographic best practices, you can better communicate with your design team to select font choices that work best for your organization. Some basics to remember include:

1. Despite the advancements made in web fonts in the past few years, there are still limitations to what we can and cannot do with fonts on our websites. Ask your web team about these limitations to ensure you make choice that will work on a technical level.
2. Understand the different font classifications and make choices that reflect the personality of your brand.
3. Always remember that readability is key and choose fonts set at a size and color contrast that make them easy to read on the screen.
4. Avoid overused fonts or fonts that carry a negative association with them from the very start.
5. Don’t overdo it. A few judicious selections should be all you need.
6. Look for fonts that pair well together. Using one font for headlines and another for body copy is one way you can the number of fonts while still maintaining nice variety and contrast.

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