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 Five Types of Brand Evangelists

There’s no more valuable asset to the growth of your business than your brand evangelists.In today's culture of the Web, there’s no more powerful form of marketing than word of mouth. As a result, there’s no more valuable asset to the growth of your business than loyal customers who talk about you, sing your praises and disseminate your content through their networks. If you want to set the word of mouth around your brand on fire, you must identify the core motivations within your fans that spur them to action and give them ways to carry your torch that cater to their passions and personalities. Below we’ve profiled the five types of brand evangelists, what drives them and how to put them to work for you:

The Opinionater

The Opinionater wants to be heard. They have opinions about everything, and they want to share them with whomever will listen. They are the bloggers, the commenters, the reviewers, the frequent tweeters and Facebook status updaters.

How to put The Opinionater to work for you:

The most basic level of engaging The Opinionater is providing outlets for them to express their ideas and insights. Let them review your products or services on your website. Share interesting, original content regularly on your blog, Facebook and Twitter, and allow them to comment and debate. However, if you really want to make the most of The Opinionater’s potential as an evangelist, you have to go further. Social media has stripped away the barriers between customers and customers, so put this to your advantage by soliciting The Opinionater’s input on what they like, what they don’t like and what they want to see more of. Starbucks does this in a very sophisticated way on their “My Starbucks Idea” website, where fans can submit suggestions and requests for everything from drinks and merchandise to community involvement. However, you can achieve the same outcome in a less structured fashion simply by asking your followers on Facebook and Twitter for their opinions. To keep the The Opinionater loyal to your cause, it’s important to reassure them that these ideas are being heard. Respond to their comments, recognize their great ideas publicly and let them see their suggestions in action. They’ll feel invested in helping you because they’ll feel like they are a part of your success. If they feel like no one’s listening, you’ll not only risk alienating them, but you might find that suddenly you've got a very vocal critic on your hands.

The Informer

The Informer likes to be first in the know so they can be the one to spread the news. You know them as the email forwarders and the Facebook friends who are always sharing links to articles and videos. It’s important to The Informer to get credit for being ahead of the pack. In being the first to disseminate information within their network, they’re able to take ownership of the ideas being presented as if they were their own.

How to put The Informer to work for you:

Give them access to exclusive information that makes them feel like an insider. The Informer loves to join mailing lists, so be sure to offer an email opt-in on your website and send out regular newsletters with timely news, tips and offers. Let The Informer have the inside scoop on trends and sales, and you’ll set their forwarding fingers in motion.

The Fame Seeker

The Fame Seeker is driven by the allure of attention. They crave the spotlight and want to be celebrities within their own circles. They want to achieve their 15 minutes of notoriety in as many places around the Web as possible. They want to be the first to comment, or at least the one with the wittiest contribution that gets the greatest response. They want to see their name and their photo anywhere and everywhere they can get it, and they have profiles on multiple social media platforms.

How to put The Fame Seeker to work for you:

Recognition is the name of the game. Give them ways to participate in your community that are all about them, and then reward them for their participation. Call them out from the crowd, and you'll have a fan for life. NASCAR driver Ryan Newman’s Fan Club site is built around keeping The Fame Seeker engaged and active. Every member has the ability to share what’s most important to them – their photos, their videos and their opinions. Popular content is rewarded with points from other members, and the top points earners are elevated to a place of special prominence within the site on the fan club leaderboard.

The Trendsetter

The Trendsetter is constantly on high alert for what’s new and what’s coming next. They have a reputation within their circles as the one that’s always sporting the latest and greatest iteration of their obsession, whether it’s coffee, shoes, jeans, gadgets or cars. As a result, when they buy what you sell, it puts you immediately at the forefront of the tribe they belong to.

How to put The Trendsetter to work for you:

The task of putting The Trendsetter to work starts at the very core of your brand. You must position yourself as a company that’s always ahead of the curve. You must offer something genuinely special and unique to entice The Trendsetter to become your standard-bearer. Apple is the epitome of a brand that is in touch with The Trendsetter. Every new product they bring to the market is not only technologically innovative but impeccably designed. The iPad is a status symbol just as much as it’s a useful productivity tool. But you don’t have to compete on the same level as Apple to win over The Trendsetter. What you must do is earn a place in, listen to and respond to your tribe. When you can give them something that no one else in your niche can, it puts you on The Trendsetter’s radar. For example, let’s say you own a restaurant. What’s hot in the culinary world right now? The slow food movement. Create a special section of your menu dedicated to dishes made from seasonal ingredients sourced from local growers, and yours will be the restaurant that Trendsetter foodies all over town are suddenly talking about.

The Crusader

The Crusader is the torchbearer for the causes they believe in, and their loyalty runs deep because their passion is for the mission. They’re not interested in being seen wearing or carrying the trendiest label. They’re consumers with a social conscience that identify themselves with brand whose values and corporate culture inspire them.

How to put The Crusader to work for you:

Make them one of you. Give them a badge to wear that proclaims their belief in your cause. Arm them with information, tools and resources to be your advocate and help spread the word about what you stand for. TOMS is a brand of shoes with a simple mission: for every pair of shoes their customers buy, they donate a new pair of shoes to a child in need. On April 5, TOMS is sponsoring an awareness campaign called “One Day Without Shoes,” and they’ve enlisted their Facebook fans in the cause by creating an app that lets them share what they’ll be doing “without shoes” on April 5 and encouraging them to go “virtually barefoot” by using the campaign’s logo as their profile picture.

It’s time to hand over the megaphones.

Thanks to the evolution of social media and the culture of the Web, word of mouth is no longer an invisible phenomenon but a very public and powerful reality of today’s marketing. No matter the size of your company or the nature of what you sell, you have a powerful sales and marketing force in your customers, fans and followers. These loyalists are at your fingertips, ready and waiting to spring into action. All you have to do is provide the right tools and the right platforms, and you’ll reap the rewards of the trust they build on your behalf.

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Power Points: 8 Tips for Creating Presentations That Sell

If the word “presentation” conjures thoughts of droning speeches and dreadful slideshows, you’re doing it wrong – and worse yet, wasting valuable opportunities to engage, convince and convert new customers. By following these eight tips, you can deliver more powerful, more memorable presentations that give your audience what they want in order to ultimately achieve the outcome you want.

1. Good tools do not good presentations make.

Today’s sophisticated presentation tools – from PowerPoint to Keynote to Google Docs – offer lots of bells and whistles. But don’t get so caught up in playing with all of the available options that you lose sight of your purpose. Whatever software or format you choose, slides are not a dumping ground for data or talking points. You don’t want your visual presentation competing with you for the attention of your audience. It’s there simply to amplify your key points, not duplicate them, so limit each slide to one single image or thought that reinforces what you’re saying. If you’re displaying a chart, graph or table, don’t leave it up to your audience to interpret the meaning of the numbers. Instead do the work of analyzing this data for them by making the title of your slide the main idea that you want them to take away (e.g., “Southeastern Region Exceeds Sales Goals” rather than “2012 Sales by Region”).

2. Don’t save the best for last.

In today’s digital age, attention spans are short. We’ve all been programmed to skim, scan, parse and move on. That’s why you can’t afford a long, drawn-out wind-up to ease into your presentation. Within the first three slides, you must convey to your audience what’s in it for them so they’re motivated to stay engaged with you. If you don’t come out swinging for the fences, they’ll quickly check out as their minds wander to something that’s more urgent in their own world, like their own list of impending to-dos and deadlines.

3. Know and serve your audience.

Let’s be clear: your presentation is not about you. It’s about your audience. You’re there to serve their needs, answer their questions and address their concerns. Because no two audiences are exactly alike, there truly is no such thing as a one-size-fits-all presentation. While the core of your presentation may remain relatively unchanged from one speaking engagement to the next, if you’re not shaping, tailoring and refining your message and delivery for the particular needs and interests of the audience in front of you, you’re doing a disservice to both them and you. That being said, the benefit of having a strong foundation in place and well-rehearsed is that you’ll be prepared to respond quickly to any opportunity that arises – no matter how tight the timeframe. For example, let’s say a conference planner calls you with a last-minute opening in their programming line-up. If you have your key points memorized and visual supports in place, an hour or so is all you’ll need to tweak your presentation, and you’ll be ready to take advantage of the chance to engage with a new audience without wrecking your nerves in the process.

4. Build trust first, last and always.

You can’t expect to convince anyone to do anything if they don’t believe in you. As a result, building trust with your audience is your first and most important objective. The task of establishing your credibility has much more to do with the intangibles of your presentation that what you say or what you put on screen.You must instill confidence with your visual presence, your body language and your demeanor. Be polished and professional from head to toe. Talk slowly and clearly, and don’t forget to breathe. Avoid mental placeholders like “um,” “uh” and “you know,” but don’t be afraid to pause when needed to transition between thoughts. No matter how nervous you might be on the inside, maintain good posture and steady eye contact with your audience from beginning to end. Always keep your composure even if things don’t go exactly as planned. Show that you respect attendees’ time and intelligence by providing real value and useful takeaway messages. Never, ever use jargon as a crutch to create the illusion of expertise. It’s much more important to be relatable to and easily understood by your audience.

5. Practice, practice, practice.

The art of public speaking is not one that comes naturally for most of us. That’s why preparedness is the key to being able to deliver your presentation with the polish and confidence you need to establish that all-important foundation of trust with your audience. Rehearse your presentation as much as possible, doing so in front of colleagues or other members of your team so they can offer feedback. Walk through every step from start to finish, just as you would on the day of, including setting up and using your digital presentation tools. Videotape your practice session. When you play it back, watch for any red flags that will undermine your credibility like verbal stumbling blocks, lack of eye contact, stiff body language, nervous fidgeting or lagging energy. Don’t forget to make contingency plans in case the situation throws you for a loop. For example, what if you arrive and there’s no way to project your presentation or your equipment malfunctions? Make sure you’re equally comfortable delivering your presentation with and without your visual aides.

6. Engage and energize.

Every presentation has the same core purpose: to motivate the audience to take a desired action. Just as with building trust, the secret of motivating an audience lies in the intangibles. Your PowerPoint presentation – no matter how beautiful and well-crafted it may be – is not going to inspire someone to take action. That’s your job. You must be energetic in your delivery. Passion is contagious, so make sure you let yours shine. If your audience senses that you are genuinely enthusiastic about your subject matter, they’ll be more invested in hearing what you have to say. This is another reason that practicing your presentation is so critical. You need to be able to feed off of and react to your audience. If your focus is wrapped up in the mechanics of your delivery, you won’t have the mental agility to be able to think on your feet. If your audience appears to be bored or confused, you must be able to shift gears to recapture their attention or deepen their understanding. Shake things up by giving them opportunities to interact with you and each other during your presentation. And don’t be afraid to take questions. If someone wants to know more, feed their curiosity!

7. Make it easy to take action.

You wouldn’t design an ad or a landing page or a direct mail campaign without a call to action. The same goes for your presentation. If the goal of your presentation is to motivate your audience to take action, make it clear what that action should be. Think carefully, though, about how you frame your request. The next step should be commensurate with the level of engagement and trust you’ve established with them. Will your audience be ready to sign on the dotted line and fork over their money to you at the end of your presentation? Probably not. So instead, focus your call to action on furthering your relationship with them. Encourage them to sign up for your e-newsletter or follow you on Twitter. Or invite them to schedule a complimentary one-on-one consultation session with you. As long as you can keep the conversation going, you’ll keep the door to future sales opportunities wide open.

8. Maximize your mileage.

No lie: creating a great presentation is a lot of work. The good news is that once you’ve honed and refined your presentation, there are lots of opportunities to get more mileage from it. First, it’s always a good idea to make your presentation available online. Sites like SlideShare, Prezi and SlideRocket allow you to create and host interactive presentations in the cloud and then embed them on your website or share via social media. You will need to create a version of your presentation specifically for this purpose, as your slides will need to be more content-rich in order to be able to stand on their own and convey your key points without the benefit of your verbal delivery. Second, if you’ve mastered your in-person presentation delivery, you can just as easily lead a webinar. All you need are a few additional technical elements such as a webcam and an account with a webinar hosting provider like GoToMeeting or WebEx, and you can expanded your reach from a room full of people to a limitless online auditorium. Here's one key difference to keep in mind, though. In a live presentation, you want to keep your audience focused on you and your words, so your slide content should be minimal. However, with webinars, your presence is limited to a disembodied voice coming through phone or computer speakers. To provide the best audience experience, you must design your slides and content in a way that is not only visually interesting but also helps attendees stay in sync with what you’re saying. Finally, keep your sales pitch in your pocket. Keep a core version of your presentation at the ready on your tablet and smartphone. That way, if an unexpected networking opportunity arises, you’ll be at the ready with good visual aides to complement your conversation. Your new acquaintance is more likely to remember the details having heard and seen your message, and you may improve your chances of gaining a new customer in the process.

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