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.

Jumping Into Jumo

New social media platforms seem to crop up and die out (or get bought out) with regularity in this day and age. Whereas the social media map used to consist primarily of MySpace and Facebook (and Friendster if we’re feeling generous), now there's Twitter, YouTube, LinkedIn, Tumblr and Wikipedia, just to name a few. With stories of upstarts like FriendFeed or Lala getting swallowed up by the big guns in the business, it’s a landscape that’s constantly changing.

But the great thing about this open environment is that it isn’t a zero-sum game, as Facebook’s Mark Zuckerburg put it at the Web 2.0 Summit 2010 a couple of weeks ago. As a result, while it’s a noisy scene, the best “artists” making the best “music” rise to the top and get noticed.

The newest kid on the block

Which brings us to Jumo. The latest project from Facebook co-founder Chris Hughes, Jumo is a new attempt to merge the burgeoning movement for social change with the power of social networking itself.

While social change and humanitarian efforts have existed in many formats (with varying degrees of success) on the Web, Jumo’s concept is centered upon fostering a deeper interaction with issues and causes. By focusing on the heart of what drives people to get involved in generous giving and living, Jumo is banking on helping charities and nonprofits connect with potential supporters.

The point of connection is not the “ask,” whereby a nonprofit initiates their relationship with you by requesting a donation. No, Jumo takes a few steps back to first ask, “What is it that you’re passionate about?”. From there, the site connects you with organizations that are working in related fields.

In other words, the relationship that you develop with a charity begins organically with a question of the heart, not a question of the wallet. The end result – financial support – might not be that dissimilar, but the means are profoundly different. Jumo's approach could mean the difference between creating a one-time giver and inspiring a life-long supporter who not only gives but actively recruits others to join the cause through their heartfelt passion.

Why Jumo matters

What does this mean to you as an online citizen?

The Jumo model is important because there are lessons from this approach that apply to us all. Whether you’re running a business or a charity, your interactions – both online and in-person – with your clients are what ultimately drive the machine. You might have the coolest product or the most moving cause in the world, but if you’re not taking care of your customers or donors, you won’t last long.

While on one hand, social media has made it easier to keep people at arms-length behind the safety of a computer screen, it’s also helped to remind us all of what’s important in the social realm: relationships. Without them, you’re sunk.

The nuts and bolts

So how does it all work? It’s quite simple, really.

Step one is signing up for an account, which unsurprisingly starts with a prompt to connect to your Facebook account.

Next you create your profile, with Jumo pulling in your profile picture and basic personal information from Facebook. From there, you review a list of core issues and causes, including poverty, peace and governance and human rights. Each topic leads you further down a path of discovery that ultimately ends in a list of specific organizations that are doing work in the fields that you’ve selected.

Once this process is complete, your Jumo home page will be generated. This page features an aggregated news feed from the projects that you have chosen to follow. You’ll also have a sidebar with suggested projects and issues that might interest you as well as a “Talk” column that reflects updates from all projects, issues and people with whom you’re connected.

If all of this sounds familiar, that’s because it is. The format and terminology will be second nature to anyone who’s already on Facebook and Twitter. That familiarity should be a strength for Jumo moving forward, as it makes the new environment easy to get used to.

It’s also fairly easy to add a new organization or project on Jumo; the key is that you must have a valid Employer Identification Number (EIN) as a 501(c)(3) nonprofit entity. Beyond that, it’s a simple process of plugging in basic information such as your organization's mission and links to your website.

Again, Jumo presumes that your organization has already established a Facebook Page, as it will ask for your Facebook ID number to pull a profile picture in for your new project. From there, it’s up to you to connect with individual users on Jumo, though the platform aids the process by allowing you to select the same topics of interest of as an individual, only this time the selections will help to define what your project is.

A step in the right direction

Only time will tell if Jumo will actually reach the lofty goals that its creators have set forth, but it so far it seems to be off to a promising start.

The interface is easy to navigate, but the site has been plagued by performance issues due to an overwhelming amount of traffic in its first few days of beta launch. The team is working to alleviate those problems, and hopefully, once fully launched, any minor issues will be resolved so that users can get down to the business of changing the world.

Full Speed Ahead: Nine Creative Ways to Connect Using Hyperlapse Video

Cat lovers everywhere rejoice: Hyperlapse from Instagram is here! Now you, too, can create and share captivating high-speed videos of your cat’s most adorable tail-chasing sessions and other curious behaviors right from your smartphone.

Of course, the magic of Hyperlapse is not exclusive to crazy cat ladies. This powerful stand-alone app – currently available exclusively for iOS devices – puts high-tech built-in stabilization technology in the palm of your hand, allowing you to transform your shaky, amateur smartphone footage into an amazingly smooth finished product. Hyperlapse differs from traditional time-lapse in that the camera is also moving, opening endless possibilities for experimentation and creativity.

Within mere hours of the app’s release, brands of all sorts immediately began experimenting to see how they could pack the most meaningful marketing punch in a 15-second super-speed clip. Here are nine creative ways you can follow the lead of these early adopters to use Hyperlapse video to connect with your fans and followers:

1. Showcase your product.

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Time-lapse video is a unique way to show off your products or services. After all, are there any number of flowery words and descriptive passages that could match the allure of watching the waves roll in at the Trump Miami?

2. Sell the experience.

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There's good reason behind the familiar saying, “Show, don’t tell.” If you could give your customer the sensation of having a first-hand experience without having to put down their tablet or get up from their desk chair, wouldn’t you?

Mercedes-Benz created a Hyperlapse video that does just that, putting the viewer in the passenger’s seat on a closed-course test drive to let them feel how the car handles curves.

3. Create buzz.

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Hyperlapse is a great way to generate excitement among your fans about your latest product. Footlocker used the app to create an unboxing video of the new Kobe 9 “Bright Mango” before it was released to the public, giving just enough of a sneak peek to whet the appetite of any sneakerhead.

4. Convey authenticity.

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In today’s trust-driven marketplace, authenticity reigns supreme. And what better way to prove just how authentic your products are than by showing how they are meticulously crafted – sped up for the benefit of the viewer with a fleeting attention span, of course – as in this Hyperlapse clip from Mazama?

5. Appeal to the senses.

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Video is a visual medium (obviously), but when done right, it can engage all of the senses to create an overwhelming appeal. Just take this example of a Hyperlapse video from Budweiser that will make any viewer want to drop whatever they’re doing to grab a beer, prop up their feet and fight off the onslaught of pumpkin-spice everything to squeeze just a few last drops out of summer.

6. Pull back the curtain.

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Mike’s Hard Lemonade’s first foray into Hyperlapse came in the form of a video tour of their Chicago office, which was revealed to reflect the same sense of vibrant, in-your-face fun that the brand is known for.

Do the same for your fans: pull back the curtain and let them see that your brand values permeate your company’s culture through and through.

7. Get creative.

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Sometimes you don’t need high-flying cinematic acrobatics. Sometimes all you need is a simple concept with a clever spin that creates a memorable tie-in to your brand, like this Hyperlapse video from Naked Juice that shows people rushing by a person standing on the sidewalk sans clothing accompanied by the caption, “Don’t let life pass you by. Get Naked.”

8. Add a sense of fun to the mundane.

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For dog owners, a game of fetch is a commonplace daily activity. But Nature’s Recipe’s time-lapse video that literally captures the game from a dog’s-eye-view and conveys his unbridled enthusiasm is a fun, unexpected pick-me-up that’s almost too good not to share with friends.

How can you use Hyperlapse to create unique content that will surprise and delight your fans and get their sharing fingers clicking?

9. Co-create content with fans.

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As part of its #MiniDelivery promotion, Oreo is sharing videos from fans who received their special packages, such as this one from fan @ashleighmn that lets viewers share in the experience of unwrapping her delicious delivery.

You can likewise use Hyperlapse to get your fans to do your marketing for you by challenging them to create their own time-lapse videos showing how they enjoy using your product or how your products play a role in their day-to-day life.

When planning and shooting your Hyperlapse videos, here are a few factors to keep in mind to ensure a high-quality end result that has the desired effect on your viewers:

1. Story

Consider how your brand’s story fits into the element of time-lapse and how that can best be used creatively to promote your brand. Just because Hyperlapse exists doesn’t make it the best medium for every message.

2. Context

Where you share your Hyperlapse video will have an impact on how it’s viewed and received by viewers. Keep in mind the expectations of users on different platforms and how your video will fit with a given platform’s interface.

The technical limitations of different social media platforms are another element to consider. Regardless of camera orientation, Instagram forces square formatting on Hyperlapse videos and will crop the areas that don’t fit within their frame. Facebook currently accepts videos from Hyperlapse in landscape format.

3. Filmography

Although Hyperlapse is designed to allow the camera to move while shooting, videos actually turn out better when the camera is held steady and even better still when the camera is stationary. Lighting greatly affects the quality of the end result as well, as videos that are too dark or have fast variations in lighting are difficult to watch. Close-up shots, especially when multiple large objects enter the frame, render blurry unprofessional-looking results because the camera can’t process a quick change of focus.

4. Capacity

Remember, Hyperlapse makes your smartphone work hard. Shooting a lengthy video will use up a lot of memory and quickly drain the battery, and sometimes large videos won’t be able render completely unless other items are deleted from the phone to free up memory.

Happy Hyperlapsing!