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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Tune in to Everything

The greatest foe a writer must face isn’t actually writer’s block; it’s a much more nefarious enemy: “rut syndrome.” Every brand has its own voice, and every project has its own tone. But after you’ve thrown a few thousand words at something, it gets harder and harder to write anything original while staying within these established parameters.

Familiar phrases start to reappear with increasing regularity, and you may find yourself unopposed to using them again. “Tried and true” becomes “tired and clichéd.” Buzzwords turn into buzzkill. The walls of your rut begin to close in on you, and you get the feeling that your best work might lie behind you, at least in this particular field.

So how can you claw your way out of this rut while staying in your groove? By looking outward rather than trying to dig deeper into yourself. And by “outward,” I don’t mean industry blogs or field-related resources. Sure it’s important to stay informed, but often the fresh perspective that fuels a new direction in your writing will come from unexpected directions. The key is to turn your attention toward those unlikely sources – and let the creativity flow.

Living on “high-receive”

One of the creative sparks for this very article has been bouncing around in my head for a couple of years now. It’s an off-the-cuff bit of writing that appeared on the Facebook page of Fame Foundry’s chief architect, Kenneth Vuncannon. The title alone speaks volumes about why I enjoy working with Ken: “On creative design (and in stern defense of all creative people)”.

In this piece, Ken wrote, “Not even designers know where all the inspiration comes from, but they are the ones who sacrifice normal life and choose to live constantly on high-receive, subjecting their brains to everything in this world in the name of creativity.”

That bit about high-receive struck me at the time, and it remains with me still, informing my work process day in and day out. And here I was just casually spending five minutes on Ken’s page, looking at pictures and catching up – probably drawn to his profile by some quip that made me laugh.

Ken’s brief paragraph in praise of designers – “they are the ones” who draw inspiration from “everything in this world” – also serves as a great piece of advice for anyone wishing to challenge their own creativity: look outside yourself. Look everywhere, all the time. Be ready for that happy coincidence. Train your mind to make connections that can grow into your next great work.

The more you think like this, the more your ideas will begin to flow from moments that might otherwise slip by as ephemeral instances of random beauty or humor. And the greater the chance that something original can find its way into one of those dry assignments that threatens to drag you down into the rut.

Here are a few examples from my own efforts to stay tuned in to the greatness around us:

Crazy people

Here’s a piece that has stuck with me for some 20 years. I was at my grandmother’s for the weekend with the rest of my family, home from college, sometime in the early nineties. Grandma Whipkey’s was a fine place to visit, overflowing as it was with homemade cookies and cable TV – HBO to be specific. We were flipping through channels when I stopped for a few minutes on something called “Crazy People,” a movie starring Dudley Moore and Paul Reiser as advertising pitch men.

I hadn’t heard of the movie and had no interest in the premise. But the part that happened to be showing was Dudley Moore’s pitch for Volvo. The tag? “Volvo: Boxy but good.”

As a college kid only just discovering the verbal agility and wit of Monty Python, this bit struck me as funny. All these years later, I think of this clip often. There’s a bit right after it as well where Moore argues that he and his fellow execs should “level with the people.” Reiser’s reply is, “We’re in advertising. We can’t do that.”

It’s a sharp piece of satirical writing – one that serves as a great reminder that marketers can – and should – tell the truth.

A reverent – and irreverent – obituary

Here’s an opening line that has never before been used in an obituary: "If you're about to throw away an old pair of pantyhose, stop."

You read that right. But such a goofy first line couldn’t possibly be part of a well-written obituary, could it? Surely this is a misguided attempt at humor that falls as flat as a vulgar joke in church.

Wrong. This one, written by the family of Mary Agnes Mullaney, a Milwaukee native who recently passed away at 85, hits it out of the park. There isn’t a hint of typical dry obit tone, but the piece overflows with joy, grief, dignity and every other emotion that naturally occurs when a well-loved person passes away.

Take this passage, which recounts lessons to live by, as demonstrated by Mary the gentle firecracker:

“Go to a nursing home and kiss everyone. When you learn someone's name, share their patron saint's story and their feast day, so they can celebrate. Invite new friends to Thanksgiving dinner. If they are from another country and you have trouble understanding them, learn to ‘listen with an accent.’

Never say mean things about anybody; they are ‘poor souls to pray for.’

Put picky-eating children in the box at the bottom of the laundry chute, tell them they are hungry lions in a cage, and feed them veggies through the slats.”

The purpose of an obituary is to announce someone’s death and convey a few carefully culled facts about the life that was lived. This piece turns the conventions of this medium upside-down and, in doing so, transforms it into something every obituary should be: a very human, deeply powerful ode to grief and celebration.

This one inspires me to look again at any dry or unwelcome writing task set before me. There is always a new and different way to approach any assignment, no matter how seemingly routine.

Kids run roughshod through ruts

If you want a prime example of setting your brain to “high-receive,” my sincere hope is that there are children in your life. My wife and I have four kids, ages two, five, seven and nine. I call them the Popcorn Gang – they’re packed with energy and exploding all over the place with creativity (among other things).

One of my favorite bedtime storytelling techniques is to turn them loose on a basic comic book plot and let them fill in the fun bits. They are the crusaders for justice, and they choose their powers. My main responsibility is voicing a made-up villain (Rovoltin’ Molten is a favorite; he controls lava and maintains a sinister lair deep in a volcano) and subjecting the baddie and his minions to my kids’ incredible feats of bravery and might. My evil mastermind will try to take over the world; this much is certain. But make no mistake, he will be utterly defeated by the end of the tale.

It’s always a big gulp from the fire hose of originality. If I didn’t set limits on the numbers of powers, talking animal sidekicks and tricked out vehicles, the stories would last until dawn. One example among hundreds: I’ve never heard of a superhero who shot blue popcorn from his knuckles before, but darned if young Captain Abel didn’t thwart a whole battalion of lava soldiers with this devastating ability. They’ve come up with enough plots and powers over the years to populate a whole new superuniverse.

My daughter Evangeline, our youngest, will be three in a couple months. The other day she had this revelation for my wife while they cuddled up and looked out the window at a gorgeous late summer day:

“Mommy, you are the flower and I am the green grass. Cole is the raincloud and Abel is the raincloud and Gibson is the raincloud and Daddy is the sun. Grandpa is the blue sky and Grandma is the green grass with me.”

So yeah, that’s unquestionably my favorite thing of the week. I was amused to note that her brothers are the rainclouds, while bursting with joy over my status as the sun (all the while realizing that I’ll undoubtedly take a turn as a raincloud in 10 years or so).

Later on, because I spend a lot of time each day in the marketing world, I thought about what a great moment it would make in a campaign. Not a cynical moment designed to manipulate emotions. Not a too-cute, overdone moment that feels like neon unicorns prancing on cotton candy clouds. But a light, authentic moment that could find a natural fit with any number of family-oriented brands. I may never wind up using it, but into the hopper it goes.

Kids are at the heart of so many memorable ads, from Volkswagen’s Darth Vader Kid to AT&T’s recent series of ad-libbed interviews. And it’s not hard to understand why: Kids don’t know from ruts. You want a fresh perspective on something? Run it by a human under 10.

Storing up genius

Staying open to unlikely sources of inspiration doesn’t always come naturally, but there’s no reason why creativity and structure can’t go hand in hand.

Keep a file of intriguing items you run across. Bookmark video clips, images or articles that strike your fancy. If you have kids, pets or friends who do things that make you shake your head for any number of reasons, by all means fill a notebook with their quotes and stories.

By the way, if you don’t end up using anything in some capacity (you will, but let’s say you don’t), there is still a tremendous benefit to be found in a life spent deliberately looking outward in pursuit of the good stuff. In the end, it’s not just about helping yourself create better work and serve your clients better. That is simply an inevitable benefit to the habit of tuning into greatness. But you can be sure that as you expand your horizons, your work will be distinguished not by its similarity to other campaigns or articles in the same field but by the part that stands out as original. Your fresh voice and your sideways angle are what will set your writing apart and keep your creativity flying high, safe from the depths of the dreaded rut syndrome.

So here’s to all those disparate bits of stimulation that will make your work better, stronger and more inventive. Stay tuned – to everything – and be inspired.

Tribes in Today’s Marketing

What is a tribe?

Simply put, a tribe is a group of people that connect around a common goal. Tribes can exist anywhere and can be based upon any shared interest, no matter how specific. In fact, you are most likely a member of a tribe or even multiple tribes. You may even lead one. Behind every major movement and successful marketing engine there is a tribe. Behind every major movement and successful marketing engine there is a tribe. Barack Obama leads one in which he can raise millions of dollars in a single day. Steve Jobs leads a tribe comprised of a cult-like following of brand evangelists who hang on his every word during his two-hour product launch event and then go out and do Apple’s marketing for them. Tribes are not always large. Some don’t want to be big. In fact, many are exclusive. The common element around which most tribes form is actually quite narrowly-defined. These tribes are not just for golf, but for those afflicted with a natural slice in their swing; not just for personal finance, but for those obsessed with maximizing the energy efficiency of their homes; not just for shoes, but for those infatuated with handcrafted Italian leather stilettos. Balloon artists, amateur photographers, collectors of exotic southwestern jewelry, Ford Mustang enthusiasts, avid Mac users, city managers engaged in innovative economic development – all of these are tribes that gather. For their members, their interest is an intrinsic part of their identity, and their association with their peers is a point of pride. Anytime people make connections based on a shared passion, similarities in background or a common need for solutions to improve their lives, a tribe is born.

What’s changed

Tribes have always been around. Before the days of the Web, smartphones and Facebook, communities would form based on commonalities and gather face-to-face. Naturally, these tribes were geographically-based, and their numbers were fewer and limited to the most popular interests. Today’s tribes are different. The advent of the Information Age tore down geographical barriers by introducing platforms of persistent conversation and information sharing. Online message boards, which have been around for decades, overcame the limitations of locality and allowed for a tidal wave of tribes to be formed – not just big tribes, but ones that were small and highly specialized. People now had the tools they needed to find others with a shared passion and make an instant connection in the absence of physical proximity. As technology continued to evolve, the Web provided a more robust platform for these communities to take form. Smarter and more relevant searching allowed people to find outlets for their passions through 200 million websites. Website creation tools became more accessible, allowing those with limited technical know-how to create online hubs where their tribes could gather. Add to this new tools for scheduling, collaboration, coordination and real-time communication as well as wifi and the mobile Web, and you have fertile ground for tribes to flourish around any and every common goal and interest.

New types of tribes

In the past few years, the evolution of social media has allowed people to connect in ways that are not based solely on common interests but also on commonality in relationships and geography. When communities form around who their members are, where they live and how they relate to each other, a new dynamic is introduced. The tribe concept becomes even more powerful and pervasive as people forge ties around commonplace goals in their daily lives. For geographically-based tribes, the day-to-day problems of life – from finding the best deli in town to getting a recommendation for a good mechanic to obtaining a reference for a trustworthy electrician – are solved through the formation of tribes based on members’ inherent commonalities. Tribes can form around many different types of relationships. Whether it’s families bound together in a social network or colleagues that develop a web of connections on LinkedIn, the common thread that ties all these communities together is the relationship of their members to one another. in a world ruled by tribes, word-of-mouth is king Communication travels quickly through these organic networks, in most cases crossing over to other networks. Something as seemingly simple as a recommendation for TurboTax software during tax season spreads virally via word-of-mouth advertising from tribe to tribe, as members seek to solve problems in ways that enhance their own lives, the lives of others they care about and the environments in which they live. Thus, in a world ruled by tribes, word-of-mouth is king. Trust is not only essential; it is required.

The old system of marketing

Before the economy was overtaken by tribes of highly interconnected and informed consumers, success in marketing was achieved by the companies with the largest budgets and the greatest capacities to pummel the public into purchasing their brands. If you were selling a product 10 years ago, you would have run expensive advertising campaigns based on interruption, hitting the consumer over the head with your message as forcefully and as often as possible. The objectives driving this type of intellectual spamming were to raise brand awareness, create demand for more product, obtain wider distribution and ultimately apply those profits to more ads in order to fuel this vicious cycle. In what’s left of mass media, this wasteful practice still goes on. Arby’s invested more than $85 million interrupting everyone with an oven mitt to sell sandwiches. Progressive and Geico spend a fortune flashing their brands in any and all media and markets. Nike poured hundreds of millions into endorsements and marketing to sell more Tiger Woods-branded products simply because they could command higher prices. National brands aren’t the only ones guilty of still marketing by interruption and spamming. From law firms to home builders to car dealerships, local businesses in every town dump truckloads of money into carpet bombing the public with ads in local magazines, newspapers and television, shouting their claims that they’re the best, they’ve discounted everything yet again, they have too much inventory and everything must go.

Marketing in a tribe-driven world

Today, trust rules the marketplace. People have many more choices and much less time than ever before. As a result, they invest their time carefully in their passions, in the issues that count and in the things that make a difference in their lives. They have no use for or trust in traditional advertising. Instead, they belong to a tribe, and they follow the movement of its members and leaders. These tribes are formed and move with or without you. Today’s successful marketers bow to the tribe, reforming how they do business, how they develop products and how they grow accordingly. The power and influence you command through the trust you earn from the tribe is unrivaled by any form of advertising. Your membership in the tribe is earned through trust and trust alone. Trust gives you permission to talk about your ideas as well as what you are doing to improve the lives of its members. When you are active and demonstrate honest intentions and selfless motives, you are promoted by the tribe’s leaders. The power and influence you command through the trust you earn from the tribe is unrivaled by any form of advertising. In this way, the tribe is your marketplace.

Getting there

Many companies, particularly local businesses, have a hard time mapping the connection between tribes and their bottom line. In fact, most are challenged to identify where tribes exist or, if they must, start and lead a new tribe. The fact is, any successful act of business creates a solution for a problem or improves people’s lives in some way. Underneath that solution are people who are already talking about all the issues surrounding it every day. Your focus in growing your business should be to identify your tribe and lead it. Weber doesn’t just sell grills; they lead a tribe of grilling enthusiasts. Jeep doesn’t just sell cars and accessories; they lead a tribe of off-roading die-hards. Gary Vaynerchuk doesn’t just market wine; he leads a tribe of a million wine aficionados. Fame Foundry doesn’t just sell marketing and website design; they lead a tribe of entrepreneurs and decision-makers whose passions are focused on business growth. Your passion for your business is your license to lead. You don’t need to be a national brand to be a tribe leader. Your local dentist doesn’t just sell her services; she leads a local tribe of people that care about healthy teeth. She may have only 25 true fans, but when they tweet or post their endorsement for her practice on Facebook, multiplying their actions by the average of 150 connections per fan now gives her instantaneous, powerful and unbiased word-of-mouth advertising to 3,750 people. Eliza Metz applies her life’s passion to leading a massive tribe of yarncrafting fanatics who follow her on her blog, on Plurk, on Facebook and on her podcast. She has earned the trust of its members, who have elevated her to a position of leadership. As a result, when she says she likes something, they listen and move, which translates to sales immediately. Eliza has never bought one piece of advertising; instead, she leads. Your passion for your business is your license to lead. But you can’t just log in, plant your flag and begin selling your products or services. The tribe will banish you right away. The fundamentals of trustcasting prevail in every facet of business growth, and this is no different in leading tribes. In part two of this series, we’ll go beyond the foundational understanding of tribes and cover the steps to identifying, becoming a member of and leading the tribes that are relevant to your business and your bottom line in today’s marketplace.

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