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.

Don't Call It a Comeback: Why Email Marketing Still Matters

"The reports of my death have been greatly exaggerated." – Mark Twain

There's been some chatter around the Web in recent years about the looming death of email at the hands of social media.

Scandalous as it sounds, though, many of us wouldn't mind seeing our bulging inboxes go away. The Telegraph recently highlighted a study connecting email to stress at work. Not surprisingly, participant stress levels spiked at points in the day when inboxes were fullest. Shocking revelation, right?

But whether the thought of email extinction unsettles or elates you, a closer look at its role in our work and lives reveals that the reports of email's death are greatly exaggerated.

State of the union email address

Social media may be doing the heavy lifting when it comes to sharing our lives, but email remains a valued, private and protected channel for conducting life and business online.

We use email to keep up with the brands, organizations and communities we care about through e-newsletters, news alerts, daily deals, group activity digests, etc.

We use it to conduct business online, such as registration for services, support requests, banking e-statements and payment confirmations. You can even get receipts emailed to you from the registers of many brick-and-mortar retailers now.

Ironically, even social media is using email to keep us engaged. How often do you receive notifications from Facebook, Twitter, LinkedIn and the lot about new followers, daily/weekly activity digests, new comments on conversations and suggestions for new connections?

Marketer's know the inbox is alive and well, and they're still pumping out white papers and webinars about email marketing. Email service providers like Constant Contact and MailChimp—and a half-dozen others—are still thriving.

Email still matters because it is so closely connected to our identities and our lives. It's less transient than social media. People delete their accounts—ask Facebook after a privacy policy change. Social sites rise and fall in popularity—last year it was Pinterest, this year Instagram. Some professionals hardly check their LinkedIn accounts. But nearly everyone online has an email account that they check regularly and some of us have had a particular address for 10, 15, and nearly 20 years.

So if email is closely connected to who we are as people, it's important that we as business growers frame email marketing efforts in this light. Forget open rates, click throughs, bounce rates, etc. for just a moment and let's focus on three keys to connecting with customers in their inboxes.

Key #1: Relationship

By signing up to receive your emails, customers are inviting you into their inbox—a personal space. They "opt-in" in faith that you will deliver value and not abuse the privilege.

This transaction of trust is as important as the ones involving money. Your email recipients are in fact customers even if they've never spent a penny on your products or services. They are paying for your email content with their time and attention.

Unfortunately, many businesses today don't understand (or ignore) this relationship dynamic and treat email like direct mail, using "spray and pray" tactics—"I've got a message to get out and a database full of email addresses. Let's do this!"

If you "e-blast" your customers, by the way, you may be guilty of this kind of marketing terrorism.

As customers welcome you into their inboxes, treat them with respect. Give them value. Be a guest they'll want to come back again and again. Essentially, don't be self-centered or rude.

Ultimately, the key to building relationships with your customers through email is the Golden Rule.  Email as you would want to be emailed.

Key #2: Content

Email marketing is content marketing ...  And the first key to great email content is to give subscribers what they want.

Give 'em what they want

If you offer multiple email subscription options for your customers—for example deals, company news, e-newsletters, etc.—then honor their wishes. If all I want is deals, don't send me your press releases.

If you don't segment your email content like this and basically have one big mailing list, then it's important to actively get feedback from subscribers to determine what types of content they're interested in—and how often want to get it, but more on that later. Consider polling your list once or twice a year to see which features they like best. Or better yet, make your emails "reply-able" and end them with a question like "How can we improve the content of our emails for you?" This type of engagement with the reader make the email more of a two-way conversation.

To increase trust and interest earlier, at the email sign-up form, make it clear what customers will be getting by subscribing. The more clarity you provide the more comfortable and more emotionally invested they will be.

Be interesting

It may sound obvious, but make it a priority to have something interesting to say or share with subscribers. Give them a reason to keep reading.

NextDraft is an an email newsletter published daily by Dave Pell in which Dave simply currates news from all over the web and delivers "The day's most fascinating news" right to your inbox. His description of NextDraft is better than any I could offer:

Each morning I visit about fifty news sites and from that swirling nightmare of information quicksand, I pluck the top ten most fascinating items of the day, which I deliver with a fast, pithy wit that will make your inbox vibrate with delight...

Imagine this: You'll actually look forward to email again. It's totally free and almost no one ever unsubscribes. The subscription form is up there, just a few pixels away. Go ahead. Give your inbox some awesome.

Just as captivating as the 10 intriguing stories Dave highlights each day is the smart writing he uses to set up each story and string them all together.  Here's a sample:

Put a little art in their inbox

I always open emails from Berlin-based software firm 6Wunderkinder because they are the most beautifully designed ones in my inbox. Great design is core to the 6Wunderkinder brand and products, and this commitment carries over into their email, which always look great and announce something worth reading about. Here's a recent sample from my inbox:

You don't have to be a design firm or developer to put together attractive html-based emails. Most email services providers have templates with drag-and-drop customization. But ... HTML-based email can be a little tricky in the ways it's rendered by various email software, so if in doubt, it's probably better to get some professional help.

Customize content to show you care

A growing trend in the email marketing world is email personalization, serving up different types of content to customers based demographics like location, sex or age as well as cues from their interactions with the brand or where they are in the sales pipeline. Personalization increases the value of your emails by providing content that fits more closely with customers interests and other characteristics.

For example, IKEA is a global brand, so the emails I get from their loyalty program, IKEA Family, are specific to my local store in Charlotte—not Stockholm.  In the example below, they even offer a deal in collaboration with the local minor league baseball team, the Knights. And local store information—location, hours, and contact info—is included at the bottom.

While this level of personalization involves some pretty robust marketing software, businesses without such resources can still tailor messages to specific groups of readers by segmenting their email lists through criteria like geographic location. Additionally, the major email service providers do offer some basic tools for email personalization. Just remember that the goal of any customization is to deliver a better, more personalized email experience to your customers.

Key #3: Frequency

A recent marketing study conducted by The Economist Intelligence Unit and Lyris, asked participants, "In your opinion, what frustrates you most about companies’ use of online communications?" Eighty percent of respondents chose "Too many unwanted email messages," outpacing the second place option by more than thirty points.

Most of us have grown accustomed to the tidal wave of information that is social media, so we're used to ignoring a lot of it. But email has to be managed. We generally touch each piece of mail, much in the same way as postal mail for centuries past. So the motivation here is to send only enough mail to provide value to subscribers, without being associated with inbox burnout.

Research by Eloqua shows that a judicious frequency of emails sent isn't just good for the customer, it's good for campaign performance. In essence, it appears from the chart below that when it comes to getting customers to email marketing that gets results, less is more.

Straight Talk on SEO: The 15 Factors That Really Affect Your Site’s Search Engine Rankings

If you own or manage a website, then you have undoubtedly been contacted with offers promising to “increase your website’s search engine rankings though search engine optimization.” I receive messages like this daily with promises that range from the surprising to the absurd. If you take these solicitations at their word, they make search engine optimization, or SEO, seem like a magic cure for your website marketing needs – but what are you really getting if you decide to hire a company to provide SEO services for your website? While there are many reputable firms that provide search engine marketing and optimization services, there are just as many scam artists who are looking to capitalize on business owners’ ignorance of what really goes into achieving improved search engine rankings. The truth is that the algorithms that determine search engine rankings are complex – and they are always changing. There is no “silver bullet” for improving rankings, no one thing you can do that will, by itself, get you the results you desire. Unfortunately, many companies present SEO this way – as a quick fix that offers guaranteed results. Like most things in business and in life, it sounds too good to be true because it is. In this article, we will explore 15 factors that affect how search engines rank your website so that the next time a company contacts you with an offer to “optimize your website for the search engines”, you can ask exactly which of these things they will be addressing as part of their plans and make better decisions for your website’s digital marketing initiatives.

1. Content

We will start with the most important factor when it comes to search engine rankings – content. This is what it is really all about. Search engines want to deliver the best results for searchers, results that will link to quality content that is relevant to that searcher’s query. More so than anything on this list, quality content is the key to improved search engine rankings. If you have quality content, your site has the best chance to be found by searchers and rank effectively in search engines. Most SEO companies that are looking to make a quick buck on your website will not address your content strategy, yet any true initiative to address rankings and overall success will begin by looking at your content to make sure that it is unique to your site, relevant to what your audience is looking for, and that you have a plan to produce this quality content on a regular basis.

2. Site structure

The way your website is built plays a role in how search engines will rank that site. Code that is clean and well-structured allows the search engines to crawl the site effectively and find what they are looking for. On the flip side, older sites whose code is convoluted and outdated will make it more difficult for search engines to crawl that site. Any time you make it more difficult for the search engines, you negatively impact your rankings.

3. On-Site optimization

This is what most SEO companies are referring to when they say that they will provide “optimization services” for that site. There are, indeed, a number of best practices that can be applied to the way specific web pages are built, but on their own, these on- site optimization techniques will only have a minimal effect – and if your website was built by a reputable agency that understands search engine best practices, then many of these on-site optimizations should already be in place. These techniques are important and should be part of a bigger overall plan if you hope to get the most out of the website, but you need more than on- site optimization for your site to truly be successful.

4. Inbound links

An incredibly important factor in rankings is links to your website from other sites. These links count as a “vote of confidence” for your site and search engines see those votes of confidence as proof that your site is quality – but not all links are created equal! A link to your site from a popular site that has a similar subject matter is a great link to have. The popularity and standing of that site, coupled with the fact that it shares subject matter to your own, make these links very valuable in the eyes of search engines. On the flip side, spammy links from bogus websites or “link farms” will not help you. In fact, those bogus links may harm your rankings! If a company contacts you promising 10,000 inbound links, run away quickly! What they are doing is “link building” using these link farm websites. While you may get short term results from these initiatives, you risk being penalized in the long term once the search engines discover where those links came from. What you want are quality links from reputable sites that like your content (yes, again it comes down to quality content).

5. Download speed

How quickly your website loads is another factor search engines have begun considering in their rankings algorithms. A fast-loading site is not only good for the user experience, but it really can improve rankings as well.

6. Longevity

This is a factor that is tough to control. The length of time your domain has been registered does play a role in rankings. A website that has been around for a while has been able to build up inbound links (see above), it has grown over time, and the search engines know that it is not a flash-in-the-pan site. Search engines like longevity, so if you registered your domain name years ago and have had a quality site up since that time, this will help you in your rankings now.

7. Frequency of updates

Search engines like sites that are attended to regularly. When those search engines index your site and see that it is constantly changing and being added to, they take that into account in a positive way for their ranking considerations.

8.  Mobile device support

More and more these days, mobile devices are playing a role in our websites’ success and search engine rankings are just another way these devices are making themselves known. Google’s best practices recommend using responsive web design to deliver websites to a variety of devices. Building a website that delivers an experience suited to the wide variety of devices available today ensures that when searchers find your site, whether they are on a desktop computer or a mobile phone, they get a quality experience. Search engines want sites that deliver these experiences and mobile or multi-device support is becoming an important factor in rankings.

9. Social media

We’ve already discussed the value of inbound links, so it is not surprising that links from social media and conversations being had on social media have also begun to impact search engine rankings. A strong presence on social media sites with links back to your website can drive traffic to your business and boost search engine rankings.

10. Advertising

Paid search engine advertising is one way you can get exposure to searchers quickly, while your site’s organic rankings improve over time. While Google has stated that they do not reward sites that advertise with their search engine by increasing their subsequent organic rankings, the reality is that paid ads can get you more exposure, which can lead to additional inbound links or social media mentions, which can then improve overall rankings. So whether or not you believe that Google does not reward companies that spend ad dollars with them, the process of taking out these ads can absolutely bring you traffic now and improve your organic placement over time.

11. Geographic location

Search engines have realized that many searches are local. If you are in Boston and you search for a plumber, you do not want listings for plumbers in Texas. Different searchers in different parts of the world will get different results for the queries they make, so the geographic location of your company will play into your rankings.

12. Browsing history

Similar to the fact that location will influence your site’s rankings, so will previous visits to your site. If a searcher has been to your site before, Google will often give that site preferential treatment for future searches, thinking that they may wish to visit the site again. The reality is that your overall browsing history plays a big part in the results you receive. Eli Pariser talked about these “filter bubbles” in a TED talk he gave in 2011.

13. Language

If your site caters to visitors who speak different languages, having pages presented in those languages can absolutely help if searches are being conducted in that language.

14. Uptime

Search engines cannot index and rank your site if it is down. Server uptime will play a role in overall rankings. If your server environment is unreliable and often down for maintenance, not only will you risk turning customers away if the site is offline for a time, but you also will eventually impact your rankings if search engine bots visit your site and find it unavailable.

15. Content

We end the article where we began, with content. While every item in this list will influence your search engine rankings, the reality is that it starts and ends with content. If you really want to increase search engine rankings, look to the factors and tips covered in this article, but be sure that above all else, your content is the best that it can be.

What about meta tags and keywords?

As mentioned earlier, search engine algorithms are always changing. Factors like Meta tags and “keyword density” no longer play a role in how search engines rank websites, yet there are still professed SEO specialists out there hawking these outdated methods. If the company you are speaking with about SEO services is pitching “keyword density” but is not addressing your content plans, or any of the other factors covered in this article, that is a sure sign that you should look for a different provider.

In summary

Quite a few factors contribute to search engine rankings, and while the ones presented in this article are all important, there are doubtlessly other things that we are not even yet aware of that search engines weigh when they rank websites for their search engine results. To truly improve your site’s rankings, you need to do more than add some keywords or tweak your pages’ code - you need to have a long term strategy that will address the items on this list today, while also being prepared for changes tomorrow.