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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Your Brand: A Love Story

There are people who use a phone, and there are people who carry their phone like a badge of honor. There are people who drink coffee, and there are people whose coffee cup is an extension of their self. There are people who drive a car to get from point A to point B, and there are people for whom their hood ornament is crest they’re proud to bear.

What’s the difference? It all comes down to love.

The love story between the world’s most popular brands and their customers starts just like any other: it’s a story of people coming together over shared passions.

You see, today’s social media era has stripped away the barriers that once separated companies from their customers. Whereas yesterday’s traditional media outlets maintained tyrannical control over the flow of information and ideas, social media has paved the way for a genuine exchange of two-way communication.

In this new paradigm, the public has no affection for the face of corporate America. Instead, today’s customers expect the companies they do business with to be human and to exhibit all of the qualities inherent in human relationships – transparency, respect, conscientiousness, kindness, trust, generosity and the like.

As a result, to succeed in this brave new world of business, you must stop relating to your customers as a company and start relating to them on a human level.

Here are four key principals to humanize your company and build a brand your customers will fall in love with:

Open the dialog.

Social media is your means to bridge the gap between the market and the masses. But of course, it’s not enough just to be present on Facebook, Twitter, Instagram and the like. You must be an active participant in the communities where your tribe lives, and you must mold your participation in ways that humanize your brand and break through the barriers to gaining trust.

You must put as much effort into listening and responding as you do into putting your own content out into the world. You must prove that you serve at the pleasure of your customers, not the other way around.

For example, on Twitter, it’s a good idea to allow trusted employees to have individual accounts that they can use to respond to customers on the company’s behalf, as opposed to maintaining a singular universal company brand account without a name or face attached to it.

Also, consider hosting chats, forums or webinar sessions where customers and colleagues in the industry can log in and connect with your company in real time, creating an environment of open communication and fostering feelings of trust and likability.

Commit and admit.

Nothing earns trust in human relationships more than sincerity and the willingness to admit when you’re wrong.

The relationship between your company and its customers is no different. To survive in today’s 24/7 world of accessibility and accountability, you must commit to 100 percent transparency.

That pledge is easy to uphold when times are good. When you’re proud of the things you and your employees are doing, it’s a pleasure to speak openly about them.

But you also must be willing to publicly accept responsibility when you fall short, make a mistake or fail to satisfy a customer. More importantly, you must take the initiative to make concrete changes that will set you apart from competitors that are content to languish in the status quo of corporatism.

Starbucks is a shining example of this customer-centered commitment to transparency. Whenever a customer is displeased, no matter the reason, they are either given a gift certificate for their next visit or their order is remade on the spot with no questions asked. By adopting this policy of open communication, Starbucks has created a strong sense of community and respect where customers feel their voices are heard and their business is appreciated – and, in turn, they reward the company with their undying loyalty and evangelism.

Pull back the curtain.

When it comes to relating to customers, company owners can no long play the role of the great and powerful Oz, tucked away safely behind the curtain of PR flacks who run interference to preserve some carefully polished (if somewhat phony) image.

By allowing greater accessibility, the company CEO can easily become the friendly face of the brand.

Perhaps the epitome of infusing personality into the promotion of products are the dynamic duo of Ben Cohen and Jerry Greenfield – the masterminds behind Ben & Jerry’s. The company’s about page relates the “long, strange dip” of two very real people from humble beginnings who became a worldwide ice cream success story. They’re hardly your typical buttoned-up, suit-and-tie-clad CEOs, but they are 100 percent authentic, and their customers recognize and reward their lack of pretense or posturing.

Surround yourself with a trustworthy (and trust-building) team.

The responsibility for putting a good face on the company isn’t relegated to the C-suite; it’s up to every employee to gain and maintain the trust of the customer.

When you can show that it’s not just the owner or the board of directors or the marketing department that toe the company line but that every single employee at every level of the company stands for the same set of core values, your customers will respond favorably and be inspired to become an advocate for your brand.

Many savvy companies that have embraced this new reality have adopted an open-door policy to using social media. Whole Foods Market is a great example of this community-minded, team-based approach. The entire company, along with its employees, take an active role in promoting environmental and humanitarian causes via social media networks. As a result, Whole Foods’ customers value not only the products they sell but the people behind the brand, and in turn, they do what they can to help promote a company with a conscience that puts people ahead of profits.

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Deal-Breakers and Dead-Ends: Six Turn-Offs That Alienate Website Visitors

Without question, the task of driving new visitors to your company’s website is not easy. Success requires serious strategic planning and a significant investment of resources, from content marketing and social media promotion to search engine advertising and offline marketing initiatives. So once those hard-won visitors arrive, why in the world would you immediately turn them away? Well, you certainly wouldn’t do so intentionally, but there may be deal-breakers and dead-ends lurking within your site that will repel a potential new customer faster than a cheesy pick-up line and cheap cologne. Here are six mood-killers that you must avoid if you hope to woo new customers, entice them to engage with your site and provide such a positive experience that they will tell all their friends what a great catch you are:

1. Download our app

If you’ve invested in creating an app for your brand, naturally you want to bring this to the attention of mobile visitors and encourage them to download it. But it’s all too easy to cross the line between promoting your app and perturbing your customer. Recently, I was in the process of working on an email marketing campaign using the popular service Constant Contact. I found myself with a spare moment between meetings, so I grabbed my iPad and set out to make a few quick edits to my draft. When I logged into the site and selected the email I wanted to edit, I was greeted with a message asking me if I wanted to download “QuickView”, their app for iPad and iPhone. But I was in a rush and had no interest in downloading and figuring out how to use their app to accomplish the simple task of making changes to an email I had already begun crafting. So I clicked “No, thanks” and was then returned to my list of emails. Once again, I clicked the email that I wanted to edit – and once again I was greeted with the prompt to download the app. I was stuck in a loop of non-productivity. Unless I installed the app, I could not complete my desired action on my iPad. By any standard, this was a very poor user experience. Unfortunately, this is not an unusual scenario. If you browse the Web on your mobile device with regularity, you’ve undoubtedly encountered this type of “Download our app!” a number of times. However, the problem arises when downloading an app is the only viable way to interface with a site via a mobile device and the objective of providing a good user experience is sacrificed in the interest of securing a permanent spot in the user’s pocket. Instead of trying to force your app on mobile visitors, take a more subtle approach. For example, displaying a small banner at the top of your site’s mobile view is a great way to make users aware of your app without disrupting their workflow or compromising the quality of their experience. Never, ever require your visitors to download an app to use your site; rather show them the respect of allowing them to interact with your brand in the way that they most prefer, whether that’s through a browser or through your app.

2. Give us your digits

We get it. When a new visitor comes to your website, you want to capture as much information about them as quickly as possible so that you can continue your engagement with them long after they’ve moved on to other corners of the Web. With this motivation in mind, there are many sites that immediately greet new visitors with a pop-up-style message. Instead of seeing the expected home page content, the user is presented with a request to complete a form to provide their contact information in exchange for a welcome discount offer or to follow the company on Facebook for future updates and promotions. Either way, these pop-ups are very disruptive to the user experience and provide obstacles that only make it more difficult for the visitor to accomplish what they originally came to the site to do. Think about this experience for a moment. Yes, it would be ideal if every visitor to your site would willingly complete a short form that gives you invaluable data. But in reality, no one comes to your site for the express purpose of helping you market to them, so by giving such a message top priority, you are telling them that your needs are more important than theirs. That’s a pretty poor way to start the conversation. This phenomenon is so pervasive that there is even an entire website – tabcloseddidntread.com – dedicated to these types of interruptive messages. While the writing on the site is a bit snarky, the point it makes is a valid one: these messages create a poor user experience from the outset. As a result, any value you might gain in collecting user data is quickly negated if that user has no interest in continuing their engagement with you because you’ve created such a negative first encounter. Instead of leading off the conversation with your survey request, Facebook follow prompt or current promotion, simply allow your visitors to dive right into the site to find the information they’re seeking or complete their desired task. Keep your mailing list sign-up and Facebook links in your site’s universal framework, and if you do your job in creating a positive experience for them, your visitors will willingly allow you to become a presence in their email inbox or their Facebook news feed all on their own.

3. One-size-fits-all framework

Today’s website visitors are accessing our sites on a wide ranging variety of devices with a myriad of different screen sizes, and yet, many sites are still built with the “desktop-only” mindset of years ago. This is a major strike for users on mobile devices who expect more from their experience than simply seeing the desktop site shrunk down to display on their small screen, with text that’s illegibly tiny and links that are nearly impossible to press. The Web is no longer a one-size-fits-all world. That being said, while one “size” may not fit all, you can still have one site that will work seamlessly on a wide variety of screen sizes and devices. By employing responsive design, you can build a singular jack-of-all-trades workhorse that dynamically reflows its layout based on the user’s screen size. The image below illustrates the difference between how desktop-only layout (i.e., the “do nothing” approach) is rendered on a phone’s browser versus a site that’s optimized for small screens with a responsive approach. Read more: Website Design for a Multi-Device World

4. Vexing video

Video can be a powerful way to convey information, but if that video fails, then your message is lost. There are a few ways that video can provide a stumbling block to engagement with your site visitors. First and foremost, not all video formats are compatible with all devices. For instance, Flash videos will not play on iPhones and iPads, which means that instead of seeing your excellent video content, every user on an iOS device will get a message that says something to the effect of “This video cannot be shown on your device.” Other visitors may not want to download a large video due to limited bandwidth or data download concerns, and as a result, your content is not able to achieve the effect you desire. In still other cases, your visitors may be able to download and view a video but may not be able to use audio – perhaps because they are in a public area, such as an office or store. Video without audio is fairly anti-climactic, so if the only way they can consume your message is by watching and listening, then you will leave these visitors cold. The moral of the story is this: If you are going to use embedded video on your site, make sure to choose a format that can be played on all devices and to reinforce its key message and content in other areas for visitors who may not want to watch or listen to a video.

5. The mystery of the disappearing navigation

Your website’s navigation structure is a critical component of the user experience, and the links it contains are the gateway to the information your visitors are seeking. For sites with lots of pages and a deep sitemap, a common design schema is to use drop-down menus that show subpages contained underneath the site’s top-level navigation choices. These drop-down menus are typically powered by Javascript. But what happens if the user has disabled Javascript in their browser or if that script fails to load for some reason? When this happens, your navigation menus may never be shown, leaving visitors stranded with no way to easily maneuver through your site. Failure to load a script is not the only way that navigation suddenly goes missing. Some sites with very elaborate navigation options for the desktop version eliminate the bulk of those options for mobile devices. This can create a dead-end for users who are familiar with the desktop version and are left searching aimlessly for links they will never find. Instead of eliminating links for smaller screens, find ways to present the same content in a way that’s better suited to the device’s display. Additionally, make sure that your site’s navigation has a fallback option should a script fail to load or something else unexpected happens.

6. Page is loading…

Today’s websites have become fat, bloated behemoths. Oversized images and animations, embedded videos and other features have contributed to the substantial size increases we have seen in webpages over the past few years. Bigger pages mean longer load times, which is a major turn-off for visitors who have no lack of other suitors vying for their time and attention online. Better website performance will yield better website results. By optimizing your site’s performance and ensuring that it loads quickly even for visitors with slower connection speeds, you can avoid showing users a half-loaded page and hoping that they will wait around to see the rest. More often than not, that’s a losing gamble, and the visitor you worked so hard to win will turn elsewhere to find a site that will perform according to their expectations.

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