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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What Does the Demise of Internet Explorer Mean for the Future of Website Design?

On January 21, 2015, web developers everywhere let out a great collective sigh of relief. Why? Because that was the day Microsoft announced that Windows 10 will ship with a brand new browser, code-named “Project Spartan,” thus effectively signaling the inevitable demise of the old stalwart Internet Explorer. According to Microsoft, Spartan is designed to provide a more interoperable and reliable experience with advanced features including the ability to annotate web pages, a distraction-free reading experience and integration of Cortana for finding and doing things online faster. While this all might sound appealing to the average user, it is particularly welcome news for web developers, for whom Internet Explorer has long been regarded as the very bane of their existence. You see, each browser interprets code in different ways, and each has different versions that offer different capabilities. While Chrome, Firefox and Safari do have their differences, for the most part they have the same capabilities. However, Internet Explorer, or IE, has historically been the odd one out, notorious for causing issues for website designers due to its lack of capabilities, especially in older versions like IE7 and IE8 (which, for example, does not support such simple design elements as rounded corners and text shadows). But while web devs are raising their glasses to toast IE’s impending downfall, you’re probably left with more than a few questions. After all, since IE has been the standard Windows browser since the mid-1990s, that little blue “e” icon has become synonymous with the Internet for many everyday users. So what exactly does Microsoft’s decision to do away with Internet Explorer mean for you – and most importantly – for your website? Let’s explore (no pun intended).

The challenges of IE

On today’s Web, the various browser manufacturers have agreed on a certain set of standards that they will all obey. This is incredibly important for web designers (and, by extension, for businesses that have websites), because it means that as long as your website conforms to those agreed upon standards, it should be displayed in a fairly consistent manner no matter which browser a visitor uses to access your site. Unfortunately, this is not always the case. In the mid-to-late 1990’s, Microsoft was engaged in a heated race for market share with the other most popular browser of the day, Netscape Navigator. Instead of agreeing on a singular set of standards, these two companies tried to outdo each other by adding proprietary features to their software that would interpret and display websites differently. This created a lose-lose scenario for web designers and businesses, as it meant that you either had to develop two different versions of your site (one for each popular browser) or dictate which browser visitors should use (this is why it became commonplace to see disclaimers on sites reading something like “Best viewed in Internet Explorer 4”).  This exclusive approach is what led some companies to build the software they use to run their business for those specific platforms. Even now, almost 20 years later, companies that continue to use that software may still be dictating that their employees must use a woefully outdated browser. This is where IE begin to falter, especially in the court of public opinion. As newer browsers, such as Google’s Chrome – which now ranks as the most popular according to many studies – began to enter the market, people started using them at home. They quickly discovered that these modern browsers were not only much faster but that they also included many new features and capabilities. It didn’t take long for consumers to develop a strong preference for these newer browsers and to begin pushing back against their IT departments’ requirements that were keeping them shackled to antiquated versions of IE at the office.

Microsoft realizes the problem

You might think that Microsoft would love any scenario in which people are forced to use their browser. On the contrary, however, it has created a major PR problem for them. The same IT departments that would not allow employees make the switch to a new browser also prevented them from upgrading to newer versions of Internet Explorer. The reality is that those new versions of IE are very capable browsers that, like the others on the market today, conform to the standards that are an important part of modern web design. Microsoft wants customers to begin using these new versions of their software because the continued use of versions that were originally released 10 years ago or more has created a vey negative perception of their product in the marketplace that has tainted the Internet Explorer brand as a whole.

The struggles of web designers

While old versions of web browsers certainly pose problems for consumers, they are doubly challenging for web designers and for the companies they build sites for. Testing newly developed websites in legacy browsers to ensure reliable backwards compatibility  is a critical step in the process that requires significant time and effort, creating overhead that adds to the timeline and budget of every project. Exactly how many people are visiting your site with those outdated browsers? It depends on the nature of your business. For instance, my company works primarily with IT professionals, and our traffic numbers indicate that the majority of our audience uses newer browsers (including many on mobile devices). As a result, we don’t need to develop and test for very old browsers because our visitors simply aren’t using them. However, if your business serves a more broad base of consumers – and especially if many of your customers are likely to be older and/or less tech savvy – it is important to ensure that your site performs equally well on new and old browsers alike. A good place to start is by examining the analytics data for your site, which can tell you which browsers are being used to access your site. One of the nice things about newer browsers like Chrome and Firefox (and even current versions of IE) is that they auto-update. This means that they automatically download and install their own updates so we no longer need to worry about radically outdated versions of the software. However, older versions of IE do not do this, which is why we still struggle to support software that came out over 10 years ago. With Microsoft’s new browser – which we expect will include auto-update approach – we may hopefully have arrived at a point where even that legacy software is forced to be rewritten for the new age and we can all say a final goodbye to outdated browsers.

Better days ahead

So what does the emergence of Project Spartan mean for your business and your website? In the short term, you may not feel an immediate impact, but you likely will begin to reap the benefits in the not-too-distant future. If Microsoft succeeds in its objective of transitioning customers away from old versions of IE and adopting their new Project Spartan (or other more current and capable browsers), by the next time you are ready for a redesign, the amount of time required for browser testing may be significantly reduced because the browser landscape will have gotten less diverse with the continued shift away from those legacy browsers, which can only mean good things for your project budget! Another benefit will be a greatly reduced potential for users to encounter problems on your site due to browser compatibility issues, which of course means less chance that a frustrated visitor will need to call your company for support (best-case scenario) or will give up on your site and go elsewhere (worst-case scenario). Finally, the release of a new, more capable option from a company that has been at the forefront of browsers for years (despite popular opinion, Microsoft remains a power player in the world of the Web) is a great thing because it gives users more options. And if Microsoft is successful, their competitors will inevitably up their game as well – and that is good news for everyone!

Don’t throw dirt on IE’s grave just yet

While there is certainly much to look forward to with the future release of Project Spartan, unfortunately, we can’t call time of death on IE yet (as much as we might like to). As AdWeek’s Krista Monllos explained to NPR, Spartan is in for an uphill battle: “By introducing a new browser, you're asking people to change their daily habits. If someone is used to Chrome or used to whatever it is they use, they probably don't want to change.” After all, Internet Explorer still accounts for almost a quarter of the present-day desktop browser market, and IE8 is still used by almost seven percent of people in the United Sates. Therefore, moving forward, it will be important to keep a finger on the pulse of the shift in these numbers – as well as any changing trends in your own analytics data – in order to ensure that your site is designed and tested to serve the needs of your users, no matter where they may fall in the continuum of browser evolution.

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How to Pick a Fruitful Marketing Strategy: Three Juicy Takeaways from Walmart’s “Picked by Farmers" Campaign

Recently, Walmart has launched a series of video spots they call “Picked by Farmers, Guaranteed by Us,” featuring the farmers who grow and supply their produce. Each of these vignettes focuses on one individual farmer and one specific variety of fruit or vegetable. Additionally, each spot is centered around one of three themes: the personal story of the farmer and his experience working with Walmart (“Growers’ Stories”), helpful tips for how to select, store and prepare a particular type of produce (“Tips from the Farm”) or Walmart’s money-back guarantee. At first glance, these spots seem rather simplistic. There’s no trendy music, no rail-thin models indulging in the products, no Hollywood-worthy camera tricks or special effects. After all, we’re not selling iPads or BMWs here. But delve below the surface, and you’ll discover true marketing genius at work. Let’s look at the three core principles that make this campaign powerfully effective and how you can apply the same concepts to your own marketing strategy:

1. Serve before you sell.

Of course, these spots are designed to sell produce. As Walmart continues to take a bigger bite out of the grocery market with the aggressive expansion of its “Neighborhood Market” and “Walmart Express” concept stores throughout the country, they need to make sure that consumers think of them as their go-to destination not only for tires and diapers but also for tomatoes and dairy products. However, in the “Tips from the Farm” series, Walmart eschews using an overt sales message in favor of providing valuable, relevant information to their customers to help them make better buying decisions. For shoppers, there’s nothing more frustrating than spending their hard-earned dollars on fresh fruits and vegetables only to get home and find that their watermelon has no taste or their tomatoes have a mushy texture. With this understanding in mind, Walmart offers helpful tips on how to select, store and use these items to help their customers make the most of their grocery budgets (Don’t wash your strawberries until you’re ready to use them! Don’t put your tomatoes in the refrigerator! Pick an avocado with a firmness similar to the palm of your hand!). And who better to give this advice than the farmers who have dedicated their lives to understanding everything there is to know about these crops? To apply this principle to your own marketing strategy, think about your area of expertise and how you can put your inside knowledge to work to help your customers. For example, let’s say you own a home renovation business. Any homeowner who has undertaken a remodeling project knows how quickly all of the choices they must make can become overwhelming. Give these potential clients a hand by producing a series of videos that explain the advantages and disadvantages of different materials for countertops or flooring or showcase trends in lighting and other decorative fixtures. You’ll likely find that by dishing out a little free advice, you can earn major trust points with potential customers.

2. Be human.

One of the criticisms most often launched against Walmart is that it’s a big, unfeeling corporate giant with no face and no heart. But the Growers’ Stories spots show us that behind the Goliath, there are many Davids, and when we buy watermelons from Walmart, we’re actually buying them from third-generation farmer Jack Wallace in Edinburg, Texas. And we’re buying tomatoes from Scott Rush in Florida and strawberries from Mike Ferro in Oxnard, California. These are honest, hard-working Americans who care deeply about putting a quality product on your dinner table. The lesson here is this: Branding is important, always. But your company must be more than a brand. It must be human through and through. Whenever possible, you should remind your customers that they’re working with a team of people who are passionate about what they do, driven to exceed expectations and honestly apologetic if and when mistakes are made.

3. Counteract your brand’s vulnerabilities.

To sell anything – whether it’s a tomato or a tablet or a total kitchen remodel – you first must overcome the psychological objections of your customer. The current trend among foodies is the local food movement, which is focused on buying and using fresh, locally sourced ingredients. As cited previously, one of Walmart’s biggest branding challenges is their perception as the enemy of Main Street and the nemesis of the Mom-and-Pop. Therefore, Walmart is the antithesis of all things local, right? Not necessarily. As their Growers’ Story spot on tomatoes demonstrates, Walmart partners with small farmers around the country to distribute locally grown produce to nearby stores. And, in the end, if a customer is not satisfied with the quality of the produce, they can get their money back. The combined effect of these two messages is that Walmart has implicitly defended itself against a commonly held negative perception about its brand while negating any risk for customers in giving their products a try. What can you take away from this approach? Every brand has its weaknesses. While you don’t want to explicitly acknowledge these vulnerabilities, at every step along the way in the sales process, you should be aware of the red flags and concerns that might be giving your customer pause, and proactively counteract those inhibitions by providing  helpful (and true!) information that will help them make a confident buying decision.

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