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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Rediscover the Lost Art of Focus

Does this sound like a typical occurrence in your day? You've just wrapped up one task, and before you move on to the next, you decide to take a quick break to see what's new on Facebook. Hey, look – your friend posted a link to an article in the New York Times. You click through to read, and when you're done, one of the related articles catches your eye. That one leads to another and then another. When you finally reemerge from the rabbit hole of link-clicking, you realize that half an hour has evaporated. Or perhaps your e-mail notification alert chimes, and you click over to find a reminder that your car is due for service. While you’re waiting on hold with the dealership to schedule your appointment, it occurs to you that you haven't checked the balance in your bank account lately, so you log in, and then you remember that you also need to pay your water bill. Before you know it, what began as a simple two-minute task has become a 20-minute derailment.

The cost of disruption

But a few distractions during the day are harmless and practically unavoidable, right? Not so much. All those minutes wasted here and there turn into hours that come with a high price tag if you're your own boss. When you're an entrepreneur, your time is your most valuable asset. When you're an entrepreneur, your time is your most valuable asset, and one of your most important responsibilities is being a good steward of that asset. Every minute frittered away on Facebook, YouTube, blogs and even mundane chores is a minute you're not spending innovating, selling or shipping. In reality, no matter how dedicated you are to your business or how deep your passion runs for what you do, staying focused can be a challenge. Between phone calls, e-mail, social media sites and routine daily to-dos, your attention is constantly being pulled in many directions at once. However, it is possible to quiet your mind and rein in the distractions, but to do so, you must recondition your brain. If you're serious about increasing your productivity, you must commit to a structured regimen of daily practice in regaining your focus, just as you would if you were training to improve your speed and endurance in running or cycling.

The Pomodoro Technique

One of the best methods for cultivating your powers of concentration is the Pomodoro Technique. In a nutshell, this technique is a time management tool that breaks the working day into units of 25 minutes called "Pomodoros." Use the clock as a time cop and obey it relentlessly. To get started, all you need is a timer, a notebook and a pen. When your day begins, make a list of all the tasks you must accomplish in order of priority. Set the timer for 25 minutes, and start working on the task at the top of the list. Focus on this task and only this task until the timer chimes. When the timer goes off, mark an x next to that task on your list and give yourself a short break of no more than three to five minutes. The purpose of this break is to let your mind rest and disconnect, so don't keep thinking about what you were just working on, and don't get wrapped up in responding to e-mail or returning a call from a client. Instead, relax, get up and stretch, read an article on your favorite blog or take care of one item on your personal to-do list. After every four Pomodoros, take a longer break of 15 to 30 minutes. Then simply repeat this cycle until your workday is done. The key to success in implementing the Pomodoro Technique is to use the clock as a time cop and obey it relentlessly. Be sure to set the timer for breaks, too, so that you're not tempted to extend them beyond the allotted time. However, always keep in mind that breaks are equally important as the 25-minute Pomodoros, so don't work through them in your eagerness to finish your task, either. The breaks are there for a reason – to allow you just enough of a mental refresher to keep you razor-sharp without getting sucked into a vortex of distraction.

Put time back on your side

As you adapt to this new daily rhythm, you'll be amazed how quickly the clock ceases to be your enemy and becomes your ally. You'll also realize how many times throughout the day you habitually allow yourself to be interrupted by distractions like Facebook and Twitter just because they're there. Reclaiming lost time in your day is critical to getting the most out of your business growth efforts.With practice, it will be easy to tune anything and everything out for 25 minutes. Knowing there is a break ahead is a great source of motivation. When you're tempted to check e-mail or see who's on IM, look at the clock first, and make yourself stick it out, knowing you never have more than 25 minutes until the next break. The Pomodoro Technique is much more than just an exercise in self-discipline; it's also an invaluable resource to help you take control of your time and boost your productivity. Because you keep a running daily log of how many Pomodoros it takes to accomplish each task, you will develop a very clear picture of how long each activity takes, which will help you estimate and prioritize projects more effectively so that you don't find yourself racing to meet deadlines. You can also identify tasks that are absorbing a disproportionate amount of your time and develop more efficient ways of getting them done. Reclaiming lost time in your day is critical to getting the most out of your business growth efforts. When your focused work time is more productive and your downtime is kept in check, you'll be amazed at how much you can accomplish when you quite literally put your mind to it.

Further reading

To learn more about the Pomodoro Technique, download the free instructional e-book at  www.pomodorotechnique.com.

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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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