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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Put Away the Smoke and Mirrors

“Smoke and mirrors.” “Dog and pony show.” “Image is everything.” These phrases, which are deeply embedded in the vernacular and philosophy of old-school marketing firms, may appear on the surface as nothing more than harmless – if hackneyed – corporate speak. However, these seemingly innocuous clichés actually betray one of traditional marketing's dirtiest secrets. Once the clever headlines, catchy taglines and glamorous images are stripped away, all that’s left at the core is fluff, spin, deception and the art of inventing meaning where there is none. Even they don’t believe their own hype. Yet these are the very same people to whom business owners and decision makers have entrusted their livelihood for decades. Who’s to say the interactions you have with your followers can’t be meaningful?At its heart, your business shares the same goal with every other: to grow, thrive and compete successfully in your market niche. In order to do this, you must engage your customers and build a community around your brand. With old marketing, the relationship between seller and consumer has always taken place at arm’s length, using traditional media channels that rely on flash and frequency, that require a tremendous investment to outshine and outspend the competition. However, who’s to say your relationships with your customers can’t be personal? Who’s to say the interactions you have with your followers can’t be meaningful? The answer: No one who values your success over their own bottom line.

Leading by example

We tend to take established brands for granted, assuming the secret to their success lies in their ability to pour unlimited resources into every available advertising medium to broadcast slick, highly polished messages of self-promotion. However, a closer look at some of today’s most recognizable names reveals a different story. Let’s start with Amazon. If you think about it, there is nothing inherently glamorous about an online bookstore. Yet Amazon has managed to create a following so pervasive that it catapulted from an upstart dot-com to one of the world’s most powerful e-commerce megabrands, all without ever relying on pricey TV and magazine ads. “Advertising is the tax you pay for unremarkable thinking.” How did they do it? The answer is not smoke and mirrors. They did not trick anyone into drinking the Amazon Kool-Aid. Rather they committed themselves and their budget to creating a better shopping experience by developing more intuitive technology, stronger distribution networks and more competitive shipping deals. These are genuine and distinct advantages from which their customers benefit each and every time they interact with the brand, thus solidifying Amazon’s reputation for ease of use, low prices and quality service. Another brand that has risen to the top of its category by flying in the face of traditional marketing wisdom is Geek Squad. As founder Robert Stephens explained at Advertising Age’s 2007 IDEA Conference, “Advertising is the tax you pay for unremarkable thinking.” Instead, by taking a creative approach to what he himself calls an innately “boring business,” he has transformed his one-man show into a corporation that employs more than 17,000 nationwide. In an interview with Inc. magazine, Stephens explained his low-budget strategy:

Without spending any money on marketing, we were able to get people talking about Geek Squad by tapping into themes and archetypes people already understood. We embraced the fact that we were geeks, and we dressed all of our employees like 1960s NASA technicians, since NASA is a symbol of problem solving, teamwork and impossible tasks…In our early years, we found that more than 90 percent of people found us through word of mouth.

In fact, he credits his initial lack of monetary resources with forcing him to work harder, to be more innovative, to dig deeper, to develop an original and authentic approach that has differentiated Geek Squad from all other competitors:

At the crossroads of marketing and meaning

So where do these two concepts intersect for you? It lies in the fundamentals. Your business – let alone your category – would not exist if there were not a legitimate need for your product or service among some segment of the population. There is a community out there that is receptive to your message, that is waiting to be wowed with a newer, better way of doing things. Furthermore, your company would not be here today if at some time someone somewhere hadn’t felt passionately enough about whatever it is you do to risk everything to get that company off the ground. It’s time to reignite that passion and convey it in a way that inspires others. Make a conscious decision to be better, to be different. Resolve to enhance your usefulness; commit yourself to unrelenting innovation; make sure you are delivering a premium experience to your customer; then tell people about it in a genuine and compelling way. And that’s where you’ll need help. But you don’t need just any old traditional agency; you need a partner who shares your belief in what you have to offer and your passion for why you do what you do better than anyone else. You need experts that can show you how to communicate this to your audience in a real and honest way, using available technologies to build community among your customers and keep them actively engaged to the point where they include you as part of their identity. When you have something meaningful to say, and you say it with conviction, people will listen. No smoke and mirrors required.

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10 One-of-a-Kind E-commerce Websites That Put Ordinary Sites to Shame

This collection of creative e-commerce websites includes those that take a unique approach to creating a storefront, and each are discussed in light of what makes their creative designs work so well.

Hopefully, you too can find some inspiration in the collection below to help you in your own e-commerce website designs. Which of these made a big impression on you?

Mom and Popcorn

This vintage website is a very unique experience in that it jumps off the page and makes you forget what decade you are really in. Although not the typical clean cut design of most popular e-commerce sites, it remains easy to use and bursts with creativity. It is very easy to find what you are looking for and the prices are prominent. You don't have to click around aimlessly to figure out what to do next. Five stars for Mom & Popcorn!

The Affair

The Affair is a UK based, offbeat clothing company that makes no apologies; neither for its darkness and morbid atmosphere, nor for its unique shopping design. Although simple and uncluttered, it is anything but standard. For one thing it has a discreet but impossible to miss shopping cart link in the corner. When an item is added to the cart, there is an animation of the selected item dropping into the shopping cart. This is a great touch because so often people click several times to be sure their selection was made and end up with too much in the cart at the end. With The Affair's unique concept, there is no confusion. Another useful feature is that each product's thumbnail offers a 360 degree view so you can examine it from all angles. It's these details that make all the difference.

Storenvy

Storenvy is ingenious, both in concept and in execution. It takes social networking, Etsy, and Pinterest and combines them all into one with an interface as easy to use as Blogspot. It allows users to create their own store to sell stuff, or to buy by browsing hundreds of items from different sellers at once. It is able to pack a lot of information and products into a small space without getting cluttered or confusing. It comes with a built-in store creation wizard to make it super easy to get out there and sell your goodies. I only wish I had thought of it first!

Saddleback

Saddleback is a beautifully and meticulously designed website that sells all types of leather products. Every element of the site contributes to its design, which is a breath of fresh air from other designs that can be weighty and cluttered, even if nice looking. The attention to detail is what makes this rich site still completely practical and usable. One particularly nice touch is that it includes a list of the sites of their business rivals, making it easy to see that Saddleback is the complete package.

Heartbreaker Fashion

Heartbreaker has a pleasant design with a good use of patterns and textures, which is what makes it different from other creative e-commerce websites. The trend has been to avoid patterns because they can distract shoppers from the product. When done right, however, it can really enhance the store front. Heartbreaker also has a handy shopping cart box in the footer of the site as well as the top. Even though it breaks the mold, it is still very user friendly, and even stronger for it.

Oi Polloi

Oi Polloi is a retro site that sells clothes and footwear. It is surprising to find that it does not have a shopping cart immediately available - only once an item is selected does a shopping cart (here called a "Basket") descend as an overlay to the site, showing exactly what you bought, what size, and how much it is, as well as a subtotal. So there is not a separate page for the checkout, which is quite efficient in my opinion. Never be afraid to reinvent the wheel!

A Modern Eden

A Modern Eden sells prints, decals, and stuffed animals with strange angular designs. It makes use of trendy colors, and where normally the bright green background would be tacky or distracting, in this usage it is not only appropriate but adds greatly to the fun and feel of the site. The ribbon highlighting the shopping basket icon is a very nice touch as well.

Patrick Ervell

Patrik Ervell sells fashionable men's clothing with a really cool twist. Where expensive men's clothes can often appear stiff or uncomfortable, this site helps guys envision themselves wearing the clothing, with use of live moving models with every product! Normally this is a huge no-no. Animations can quickly become a very bad idea, especially if there is more than one moving item per page. But Patrik Ervell accomplishes it beautifully, with a sterile white background and simple, concise text only interspersed where necessary.

Marie Catrib's

Marie Catrib's uses vivid pastel colors; friendly, bold text; and interesting dotted lines and patterns to make the pastry and bread products come alive. Some unique elements include the ability to search by vegan or gluten-free, a toggle button to hide half the website to focus on browsing, most information in the footer, and having ALL the offered products on the home page of the site. Simple, easy to use, and captivating.

Brand Neusense

Brand Neusense breaks a lot of rules by being too crowded, having too many colors, and incorporating too many animations - yet, somehow it all works. First of all, the models look like real people, not - for lack of a better word - models. Even more so, though, this creative e-commerce website stands out because the homepage focuses more on the various brands it sells and on ads than it does on its product. It is designed thoughtfully for its target market, and that's all you can ask of a web designer.

So whether you have an upcoming creative e-commerce website design project coming up or you need to revamp your e-commerce site design, use the examples above in your decisions. Doing your research and noting what others do right (or wrong) is one of the best ways to create a website that puts ordinary to shame.

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