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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10 Steps to Conquering Twitter Through Trustcasting

A simplistic platform with complex rules

As a vehicle for communicating with customers, Twitter is a deceptively simple platform that, in reality, is a challenge to truly master. First, there’s the format. How do you develop meaningful relationships 140 characters at a time? There’s also the overwhelmingly expansive size of the community. With 200 million registered accounts in the Twitterverse, how do you attract followers that belong to your tribe and will help your business grow? Furthermore, there’s the staggering pace of the flow of information and dialogue. With an average of 110 million new tweets every day, how do you make a meaningful contribution? Each of these complex questions share the same answer: trustcasting. As we established in the Trust Manifesto, “In a marketplace founded by, built by and existing for the people, trust is the only fundamental currency.” The results you yield from your participation in the Twitterverse will only ever be as good as the time and effort you invest in earning trust and developing genuine relationships with others. If ever there were an ecosystem built by and existing for the people, it’s Twitter. Each user is the sole arbiter of who is and is not granted permission to be present in their feed. Each and every user is judge and jury of good and bad content; the interesting, relevant stuff gets elevated and passed along to their own networks while the boring, self-serving stuff withers and dies out quickly. The one and only way to break through is by engaging in an ongoing process of building and maintaining trust. Following the golden rule of trustcasting, everything must be centered around developing authentic and reciprocal relationships between your company and other members of the community – a process for which no shortcuts exist. The results you yield from your participation in the Twitterverse will only ever be as good as the time and effort you invest in earning trust and developing genuine relationships with others.

Here are 10 essential steps you must follow to conquer Twitter by adhering to the principles and practices of trustcasting:

1. Be one with the medium.

Before you dive in and make potentially embarrassing or even reputation-killing public blunders, observe the ways in which other more experienced users engage and interact with each other to get the lay of the land. Nothing screams “Imposter!” like someone who goes tearing through the Twitterverse like a bull in a china shop with no regard for the nuances of the community. By showing disregard for the unique language and customs of the Twitter ecosystem, you also show that you’re disinterested in serving anyone’s interests other than your own.

2. Step out from behind the corporate curtain.

While the old familiar rules of marketing would dictate that your handle should be your company name and your avatar should be your logo so that your brand is always front and center, Twitter isn’t a collection of brands on a shelf but a living, breathing community of people. If your customers encounter a faceless brand, they don’t know if the person behind the curtain is the great and powerful Oz or your summer intern. It’s much more natural for your followers to have an authentic conversation with a human being. Set up your profile with a photo of yourself and a bio that tells us more about you than your official job title while remaining transparent that you also represent a company. Make sure to let your personality to shine through and to allow your interactions display human qualities – whether it’s candor, humor, generosity or even humility. By allowing members of the community to get to know you on a personal level, you open the doors to a deeper level of engagement.

3. Find real people you can have real conversations with.

With so much buzz around the concept of influence on Twitter, it’s tempting to go chasing after the users with the highest follower counts and try to entice them into your circle, knowing that one retweet will reach thousands of potential customers. However, it’s more important to find members of your tribe – those whose interests and needs align with the products or services you offer – who will be receptive to what you have to say. A good way to find these people is to regularly search for users in your area who are talking about subjects relevant to your offering. For example, let’s say you’re a dog trainer. You could enter the search terms “puppy near:Charlotte within:20mi” to pinpoint users near you who might be interested in the tips, articles and offers you have to share. By following them or replying to their tweets when appropriate, you’ll increase the likelihood that they will follow you in return. As you build a friendly rapport with this group of core followers, others will take notice and want to join in the conversation. It will be as if you are at the head of the cool kids’ table, and they want to pull up a seat. Contrast that with a scenario in which you have amassed a list of supposedly influential users who ignore your content and never respond to you. Where did all the effort to win their follow leave you?

4. Give before you expect to receive.

The holy grail of Twitter is transforming your followers into evangelists who retweet your content through their networks and give it legs to travel far beyond your immediate circle of influence. However, you can’t expect the rewards if you don’t put in the work. It’s up to you to find or create interesting content that’s worthy of a share. Promotions and giveaways are easy fodder for sharing, but they’re not the only share-worthy material. A link to a thought-provoking article, an inspiring quotation or a helpful how-to video are also highly sharable. Even if the content isn’t originally yours, you’re doing a service to your community by finding good information and passing it along.

5. Put sales objective second to trust objectives.

Twitter is a medium, not a broadcast channel.You’ll only be successful if you approach it as a means to cultivate a tribe of people you’ll enjoy conversing with, learning from and sharing with rather than a tool to give you unlimited access to a captive audience that you can barrage with marketing messages at will. Don’t engage followers as a brand with an agenda to sell but as an ambassador for your brand with intentions of making a meaningful contribution. For example, let’s say you own a store that sells running gear. You should make it a regular practice to pass along links to local races, share articles from around the blogosphere about good running form and nutrition, offer helpful tips to users who tweet about their struggles staying motivated and give shout-outs to customers who have achieved personal milestones like completing their first 5k. Without ever posting a direct link to a product, you can allow prospective customers to reach their own conclusions that you are the kind of company they want to support when they’re ready to make a purchase.

6. Reach out.

Remember that Twitter is, in essence, one sprawling public forum. As a result, you don’t have to sit back and wait for someone to approach you. It’s perfectly acceptable to jump into the conversation, as long as you follow the rules of trustcasting in doing so. Don’t be disruptive, and don’t go straight for the kill with a hard sales pitch or a link to your website. If you see an opportunity to join in a dialogue with something insightful, helpful or even funny, go right ahead. You might get a response or a follow in return for your efforts. More importantly, over time, you’ll cultivate a reputation for being a trusted source of interesting, useful or entertaining information, and your company and your brand will reap the benefits of your perceived authority in these areas.

7. Be responsive.

Always be responsive if someone directs a question or comment your way. It’s smart to keep tabs on mentions of your name or the name of your company so that you can reply as quickly as possible. Attention spans on Twitter are short, and if hours pass before you respond, chances are good that the person has moved on, and you will have missed the window of opportunity for a good two-way dialogue. It’s also important to be an equal-opportunity responder. While it’s always fun to reply to someone who is raving about your product or service, it’s dangerous to ignore those who have complaints. Respond to your critics with sincere concern and express an earnest interest in making things right, just as you would a dissatisfied customer who was standing in front of you in your store. Even if your efforts are rebuffed or ignored, you will have done your best publicly to demonstrate that you have their best interests at heart. In trustcasting, respect for the customer is paramount.

8. Be the kind of follower you want to have.

One of the best ways to earn goodwill in the Twitterverse is to promote others’ content. When someone you’re following shares a link to a thought-provoking blog post, news article or video, retweet their content, giving them credit for their great find. Elevating other members of the community is a simple, selfless act that demonstrates that you’re there to do more than toot your own horn.

9. Let your guard down.

The best thing social media – Twitter included – has done for business is removing the barriers that once stood between companies and their customers. No longer are you bound by the restrictions of mass media channels; instead, you can interact directly with your customers on a personal level. Therefore, your participation on Twitter must follow the rules of the culture of the Web. If you insist on holding your followers at arm’s length and only allowing them to see a perfectly polished version of your company, you won’t get the most from your efforts. Instead, go with the flow and keep it real. Your tweets are essentially part of a long-running chat. Keep your tone light, casual and approachable. You can even give your followers the occasional behind-the-scenes glimpse into daily ins-and-outs of your business. If you own a bakery, and you tweet a photo of your chef hard at work making your signature dessert, it’s a great way to remind your followers that they can swing by and pick up a freshly baked, handmade treat without explicitly asking them to do so. And they’ll feel more invested in your success because they will feel more connected to the people behind the name.

10. Be patient and persistent.

You won’t be an overnight Twitter sensation. You may not ever play on the level of Martha Stewart or Ashton Kutcher. But you also don’t need millions – or even thousands – of followers to make your participation worth your while. At its core, Twitter is a high-tech version of traditional grassroots marketing. You must build your community one follower at a time. Keep your focus on the quality of your community and the depth of your interactions, both of which you must allow to grow naturally and organically. In trustcasting, there’s no substitute for honest intentions and hard work. But while earning and maintaining the trust of your followers is a more indirect path to business growth than conventional carpet-bombing sales and marketing tactics, it will ultimately allow you to achieve the greatest return in securing ownership of your market.

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Go Mobile or Go Home

Once upon a time, not so very long ago, being available to your customers online 24/7 was enough. But then along came the smartphone – and its even more agile cousin the tablet – and the expansive mobile data networks needed to support them. Suddenly the Internet came unfettered from desktops anchored to offices and homes and became a ubiquitous presence in our lives. Today 24/7 just doesn’t cut it. You must be available to your customers not only anytime but anywhere. At the corner coffee shop. In line at the supermarket. At the airport. In the very aisles of your competitor’s store. You may not know for certain when or where your customers might be looking for you, but you can be absolutely sure that you must be there if you want to stay competitive in today’s market. Consider this statistic: smartphones and tablets currently drive nearly seven percent of digital traffic in the U.S. If that number doesn’t wow you, try this on for size: experts predict that by 2013 – that’s next year – more people will access the Internet via phone than computer. It all boils down to this: the proliferation of smartphones and tablets in the past few years has changed the game. If you’re in it to win it, you have to go mobile or go home. But where do you start?

Look before you leap.

Before you take the plunge into the world of mobile, it’s a good idea first to figure out where you currently stand so you know where you need to go and how best to get there. Peruse your website on as many different devices as you can get your hands on. Put yourself in the shoes of your customers, and evaluate the quality of your experience as you navigate through your site. How easy or difficult is it to select the specific link you want? If you have a lot of images on your site, how long does it take to render on a mobile device? Can you quickly and easily complete critical actions like locating contact information, filling out an inquiry form or even making a purchase? If you identify any obstacles, or if the overall experience is frustrating in any way, you need to take action to make sure you give your business the best chances of capturing and converting mobile browsers. There are a number of ways you can bring your site into the mobile era. To decide which approach is the right fit for your business, you must weigh your options based on your growth objectives and your customer’s browsing habits.

Option 1: Build a dedicated mobile site.

A good mobile website is not simply a shrunken version of your primary site. It’s designed specifically to deliver an experience that’s optimized for the needs and preferences of the mobile user. Keep in mind that these users aren’t typically casual browsers; they’re usually after a specific bit of information or seeking to accomplish a specific task. As a result, mobile websites don’t usually offer all the bells and whistles of their desktop equivalents. Rather, the content and functionality are pared down significantly to offer only those features that are most useful to those on the go. For example, while mobile users frequently comparison shop on their phones, they might not be as likely to actually go through the entire purchase process on their handheld device. As a result, you may not need to offer a full-fledged shopping cart on your mobile site. Instead, you might offer the capability for customers to log in to their account and save desired products to a wish list so they can quickly and easily complete their purchase later when they return to their desk. Great mobile websites have certain elements in common. They focus on critical needs, such as providing access to key services and products and contact information. They limit the use of images to minimize page load time. They offer easy, intuitive, finger-friendly navigation. If forms are included, they are streamlined and ask only for the most essential information. They don’t employ Flash, since Flash-based content is inaccessible to all iOS users.

Option 2: Employ responsive design.

Responsive design is the concept of building a website so that the layout of the site adapts and changes according to the resolution of the user’s browser, which means that it looks just as good and performs just as well on a 27-inch desktop display as a 3.5-inch iPhone and all screen sizes in between. The design is fluid and adapts to the the browser and the platform on the fly. However, the change is more than just a straightforward scaling effect; rather, certain key elements within the design – such as navigational menus, links and search fields – shift and transform according to the resolution of the browser. Employing responsive design allows you to deliver a robust experience to all users without the need to build and maintain a separate dedicated mobile version of your website.

Option 3: Get app-y.

A native app can be a fantastic mobile marketing tool, if done right. However, it’s not the right solution for everyone. Before you go down the app-building rabbit hole, there are a lot of questions to answer and obstacles to overcome. How big is your customer base? Apps require a certain scale to make sense. If you’re a mom-and-pop bakery, for example, you could theoretically develop an app that would let your customers design their own cupcakes and place their order right from their phone. While it would surely be a fun gimmick, it doesn’t fulfill a broad-based need, and the app’s ability to generate additional revenue would probably never offset the cost to create and maintain it. That brings us to another point: you must carefully consider your ROI. If you sink many thousands of dollars into development and get it approved, will people really use it? If you can’t develop an app that offers something people want and will use frequently – whether that’s in the form of utility, convenience, content or all of the above – chances are good that your investment will end up buried in the app marketplace collecting dust. Remember, too, that when you’re dealing with apps, you either have to develop a version for each operating system (Android, iOS, etc.), which can be a costly proposition, or choose just one and ignore the needs of a huge percentage of your potential customer base, which is never a smart business decision.

Be a contender.

When it comes to mobile, convenience and conversion are the name of the game. From a business growth perspective, it’s critical to ensure that your products or services are easily accessible to mobile users so you can boost your chances of capturing and converting an increasingly untethered customer base.

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