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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The Ultimate Business Growth Resolution for 2017: Make the Most of Marketing Attribution

As we enter into a new year filled with limitless opportunities and prospects, why not resolve to build a smarter, more profitable business? But in a world where there are so many outlets through which you interact with your customers – from radio and TV to direct mail and email to your website and social media and beyond, how can you know for sure which of your efforts are really working and which are not? That’s where marketing attribution comes in. Marketing attribution is the practice of determining which channels are most effective in attracting and converting customers – both online and off – in order to:

• Measure how many marketing dollars should be allocated to each channel.
• Optimize content to drive more traffic and conversions.
• Attract new customers and win back former customers.
• Sync up offline programs with online campaigns.
• Accurately forecast your marketing budget.

Marketing attribution goes beyond simply counting clicks or following customers’ paths to making their purchases; it uses complex algorithms to determine which channels are driving the most revenue. Naturally, you’ll want to invest more dollars in higher-performing channels. If marketing attribution is such a powerful business growth tool, isn’t everyone taking advantage of it? Actually, no. According to Forrester, only 24 percent of marketers currently measure campaigns across multiple channels, which means that there is a huge opportunity for you to gain a competitive edge by taking the plunge into marketing attribution this year. Here are eight steps you should take right now to get started:

1. Clarify your objectives.

With information coming at us from all directions and devices, it can seem next to impossible to measure the ROI on any given campaign. So what’s the best way to narrow down all the possible factors to determine what’s actually influencing your customers’ behavior? Before embarking down the attribution road, you must establish clear direction. To get the results you seek, start by making a list of questions to help you clarify your objectives: Which channels produce visible results, and which can’t be seen?

• Which metrics will you track in order to gain the insight you seek? Revenue, lead volume, etc.?
• How many conversion points will the attribution system track?
• How do you currently capture and report on metrics? What are some areas where you’d like to see improvement? How do stakeholders receive data reports? Is there a better way to keep them informed?
• What mechanisms will be used to collect the data, such as specialized software or online forms?
• Does your company have in-house expertise on implementing an attribution model, or do you need to leverage an external resource?

Take the time to determine clear objectives before embarking down the marketing attribution path, so you can choose a solution that provides the end results you desire.

2. Start small.

In the digital age, there’s almost no limit to the amount of data you can collect and analyze about your customers and your marketing efforts. However, if you’re new to attribution, keep it simple in the beginning by focusing higher-level data, such as revenue and marketing spend, to avoid becoming overwhelmed with numbers. Save the more granular customer data for future iterations when you’ve got more experience under your belt.

3. Leverage technology.

If interpreting data feels like trying to read foreign language, the first step is to acknowledge what you don’t know and seek external resources to make the job easier. It’s not necessary to hire an expensive in-house expert; there are plenty of effective and affordable solutions available to help you analyze complex data and generate actionable insights. Whatever tool you choose, just be sure that you’re getting clean, accurate and trustworthy results.

4. Match up your metrics.

You probably already have discrete metrics and measurement tools in place for each marketing channel that you currently employ, from email to pay-per-click to social media campaigns. In order to make effective use of marketing attribution, however, you’ll need to establish a set of common metrics that you can use across all channels in your attribution analysis.

5. Work together.

Building a successful marketing attribution program depends on getting buy-in across your organization. Involve all of your key players – from managers to marketers to developers – when choosing a platform and planning its implementation. Collaborate to ensure the right questions are being asked and the relevant data is being collected.

6. Don’t expect perfection.

Rarely is any data set 100 percent clear and comprehensive. There will inevitably be some data that can’t be captured, leaving blind spots in your analysis. Without a crystal ball, there will always be invisible factors – both online and off – that influence your customers’ purchasing decisions. Despite these inherent limitations, even a partial set of attribution data will create a strong foundation for planning successful campaigns across multiple channels. As long as you’re looking at reliable sources, that information can be used to optimize your existing marketing campaigns and plan for future testing and analysis.

7. Compare attribution models.

Under the broad umbrella of marketing attribution, there are a number of models to consider, each with its own strengths and limitations: First and/or Last Interaction: Either the first or last point of contact is given full credit for the conversion.

• Pro: Interaction-based attribution uses previous purchasing behaviors to assign different levels of importance to various touch points.
• Con: This type of attribution can sometimes be subjective.

Last Non-Direct Click: All credit for the sale is attributed to the last indirect point of contact, such as an email link.

• Pro: This model enables marketers to gauge the effectiveness of their external marketing campaigns.
• Con: The Last Non-Direct Click method runs the risk of discounting a myriad of factors that come into play after the customer has clicked through the email.

Last Adwords Click: In this model, the most recent paid search click gets full credit for the conversion.

• Pro: This model enables marketers to gauge the effectiveness of their search spend.
• Con: The Last AdWords method runs the risk of discounting any influences that came after the click.

Linear: In this balanced attribution model, the credit is equally weighted among all points of contact in the path to conversion.

• Pro: This model is simple and straightforward, making it a great entry point for getting starting with attribution.
• Con: The linear method could attribute more credit to a touch point than it actually merits.

Time Decay: Whichever touch point occurred in the closest time proximity to the conversion receives the most credit.

• Pro: It seems logical that the later touch points ultimately prompted the conversion.
• Con: This model disregards initial points of contact, which may have helped to build brand loyalty.

Position-Based: In this type of attribution model, the first and last touch point each receive 40 percent credit, while the other 20 percent is distributed equally across all other interactions.

• Pro: The Position-Based model is a good choice for marketers who want to highlight how leads are generated and then how they ultimately convert while still accounting for the points of contact in between.
• Con: This model runs the risk of giving mid-funnel touch points less credit than they deserve.

8. Consider building your own model.

Every company’s attribution needs are unique. To ensure that everyone in your organization gets the relevant, accurate information they need to make informed marketing decisions, consider building your own attribution model. By partnering with a firm experienced in developing customized, cloud-based business management software, you can work together to design a solution that is tailored to your specific needs and objectives. Here’s to helping you build a more effective marketing and business growth engine in 2017!

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Cashing In: 5 Ways to Optimize Your Website's Conversion Rate

Got a website? Check. Strong traffic numbers? Check. Think you’ve got this online marketing thing licked? Think again. It doesn’t matter how many people are coming to your site if they aren’t taking action once they get there. If you want to make those traffic numbers count, you must find a way to convert visitors into customers. Some people would have you believe that all it takes is a nice website and a great product, and you’ll have customers beating down your doors. By this mode of thinking, if your sales are lackluster, it’s most likely an indication that something is wrong with your products, so you work day and night tweaking and tinkering your offering to give the people what you think they want. In reality, it’s more likely that you’ve overlooked some key elements in the design of your website, and now it’s costing you. If your website is performing well in traffic numbers but lacking in sales, it’s time to re-evaluate your site. Here are five key elements to examine and improve to ensure that you’re maximizing your opportunities to capture customers online:

1. Tell them where to go and what to do.

It’s a fact as simple as it is true: when you have a product or service to sell, you want to make sure people know exactly how to buy that product or service. There’s no point in saying you offer consulting services unless you provide a straightforward path to contact and hire you. There’s no point in displaying a product when there’s no immediately visible way to purchase it. Make sure you present a call to action that is obvious and direct. Look at your website through the eyes of the most technologically challenged user – one who has no clue how to navigate through a website or purchase something online. At every step of the way, do you provide the easiest and most direct route from Point A to Point B so that they can progress intuitively through your site? If you have a picture of a product, is there a call to action next to it? Remember, too, that a call to action is not a wordy description that says “Hey, this item is on sale like many others, so look at them all blah blah blah.” It’s a concise statement of action – usually in the form of a button or link – that prompts the user to take the next step. Maybe you want them to “buy now” or maybe you want them to “learn more.” Whatever the next logical step might be, it must be clearly stated. Attention spans on the Web are short; if your site is lacking calls to action, chances are good that you’re losing many conversions to the ever-present element of distraction.

2. Put the kibosh on clutter.

The universal rule of the Web is that less is more. Clutter comes in many forms – too many pictures, too much copy, too many buttons and links. Whatever is clogging up your site, get rid of it immediately. In order to determine what should stay and what should go, you must identify the primary goal of your website and make sure everything is geared toward that one singular objective. If your site exists to sell your products, then sell on every page. Even on your “About” page, your customer cares less about where you went to school and more about how your products came to be. You need a clear message – one that’s easy to understand and easy to share. Don’t stuff every last thing you do down someone’s throat and expect them to make a decision. Give them choices, but don’t make them think too much. You’ll only confuse your visitors, and a confused visitor is not going to stick around and figure it out; they’ll just go elsewhere instead.

3. Focus on feelings, not features.

It’s always difficult to fight the temptation to cover every single aspect and feature of your product or service in painstaking detail in order to make sure that visitors have all the information they could possibly need to make a decision. Sometimes this works, but more often than not, it doesn’t. Why? Because people don’t really spend their money on the products that have the most bells and whistles; they spend their money on what makes them feel good on the inside. They buy things they believe will make them a better person or make their lives easier or solve a problem they face every day. People don’t purchase iPods because they like the device itself; they purchase iPods because doing so makes them feel like part of a greater tribe of iPod (and, by extension, Apple) enthusiasts. Features are really only a secondary consideration. In trying to convert potential customers, your most important job is to convey how you can fulfill their deeper needs. Figure out how your products or services connect with people on an emotional level, bottle up that feeling and build your website around it.

4. Don’t ask for too much.

Don’t you hate when you walk into a clothing store and an associate follows you around constantly pestering you with questions? Doesn’t it irk you when you’re ready to check out and they ask you to sign up for their store credit card and their rewards card and to give them your email address so they can put you on their mailing list? Don’t make the same mistakes online. It’s critically important to provide a user experience that makes your visitors feel at ease. Avoid using pop-ups and other disruptive elements that create hassles during the shopping process. And when it’s time to check out, just let them check out. Don’t require them to create an account, don’t make them answer a laundry list of questions about their purchase and don’t make them give you a bunch of personal information. In short, don’t make your customers jump through hoops to spend money with you. If you try to get more information out of your customers than you actually need to process their order, you’ll raise red flags of mistrust. They’ll immediately recognize your game, and they’ll likely jump ship mid-transaction in order to avoid being bombarded with future marketing. In reality, all you need to be able to continue your relationship with that customer is an email address and permission to send them updates from time to time.

5. Be creative within reason.

Of course you want your website to be memorable. You want visitors to be wowed by its design. You want a unique look and feel that sets your company apart from your competitors. All of these are valid goals as long as you keep the level of creativity within reason. Don’t try to reinvent the wheel in an attempt to be remembered for originality and innovation. If your site deviates too far from familiar conventions, you’ll end up alienating a lot of potential customers because they’ll have no idea how to get around and find what they need. Be creative, but don’t overdo it. After all, less is more.

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