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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Full Speed Ahead: Nine Creative Ways to Connect Using Hyperlapse Video

Cat lovers everywhere rejoice: Hyperlapse from Instagram is here! Now you, too, can create and share captivating high-speed videos of your cat’s most adorable tail-chasing sessions and other curious behaviors right from your smartphone.

Of course, the magic of Hyperlapse is not exclusive to crazy cat ladies. This powerful stand-alone app – currently available exclusively for iOS devices – puts high-tech built-in stabilization technology in the palm of your hand, allowing you to transform your shaky, amateur smartphone footage into an amazingly smooth finished product. Hyperlapse differs from traditional time-lapse in that the camera is also moving, opening endless possibilities for experimentation and creativity.

Within mere hours of the app’s release, brands of all sorts immediately began experimenting to see how they could pack the most meaningful marketing punch in a 15-second super-speed clip. Here are nine creative ways you can follow the lead of these early adopters to use Hyperlapse video to connect with your fans and followers:

1. Showcase your product.

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Time-lapse video is a unique way to show off your products or services. After all, are there any number of flowery words and descriptive passages that could match the allure of watching the waves roll in at the Trump Miami?

2. Sell the experience.

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There's good reason behind the familiar saying, “Show, don’t tell.” If you could give your customer the sensation of having a first-hand experience without having to put down their tablet or get up from their desk chair, wouldn’t you?

Mercedes-Benz created a Hyperlapse video that does just that, putting the viewer in the passenger’s seat on a closed-course test drive to let them feel how the car handles curves.

3. Create buzz.

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Hyperlapse is a great way to generate excitement among your fans about your latest product. Footlocker used the app to create an unboxing video of the new Kobe 9 “Bright Mango” before it was released to the public, giving just enough of a sneak peek to whet the appetite of any sneakerhead.

4. Convey authenticity.

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In today’s trust-driven marketplace, authenticity reigns supreme. And what better way to prove just how authentic your products are than by showing how they are meticulously crafted – sped up for the benefit of the viewer with a fleeting attention span, of course – as in this Hyperlapse clip from Mazama?

5. Appeal to the senses.

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Video is a visual medium (obviously), but when done right, it can engage all of the senses to create an overwhelming appeal. Just take this example of a Hyperlapse video from Budweiser that will make any viewer want to drop whatever they’re doing to grab a beer, prop up their feet and fight off the onslaught of pumpkin-spice everything to squeeze just a few last drops out of summer.

6. Pull back the curtain.

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Mike’s Hard Lemonade’s first foray into Hyperlapse came in the form of a video tour of their Chicago office, which was revealed to reflect the same sense of vibrant, in-your-face fun that the brand is known for.

Do the same for your fans: pull back the curtain and let them see that your brand values permeate your company’s culture through and through.

7. Get creative.

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Sometimes you don’t need high-flying cinematic acrobatics. Sometimes all you need is a simple concept with a clever spin that creates a memorable tie-in to your brand, like this Hyperlapse video from Naked Juice that shows people rushing by a person standing on the sidewalk sans clothing accompanied by the caption, “Don’t let life pass you by. Get Naked.”

8. Add a sense of fun to the mundane.

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For dog owners, a game of fetch is a commonplace daily activity. But Nature’s Recipe’s time-lapse video that literally captures the game from a dog’s-eye-view and conveys his unbridled enthusiasm is a fun, unexpected pick-me-up that’s almost too good not to share with friends.

How can you use Hyperlapse to create unique content that will surprise and delight your fans and get their sharing fingers clicking?

9. Co-create content with fans.

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As part of its #MiniDelivery promotion, Oreo is sharing videos from fans who received their special packages, such as this one from fan @ashleighmn that lets viewers share in the experience of unwrapping her delicious delivery.

You can likewise use Hyperlapse to get your fans to do your marketing for you by challenging them to create their own time-lapse videos showing how they enjoy using your product or how your products play a role in their day-to-day life.

When planning and shooting your Hyperlapse videos, here are a few factors to keep in mind to ensure a high-quality end result that has the desired effect on your viewers:

1. Story

Consider how your brand’s story fits into the element of time-lapse and how that can best be used creatively to promote your brand. Just because Hyperlapse exists doesn’t make it the best medium for every message.

2. Context

Where you share your Hyperlapse video will have an impact on how it’s viewed and received by viewers. Keep in mind the expectations of users on different platforms and how your video will fit with a given platform’s interface.

The technical limitations of different social media platforms are another element to consider. Regardless of camera orientation, Instagram forces square formatting on Hyperlapse videos and will crop the areas that don’t fit within their frame. Facebook currently accepts videos from Hyperlapse in landscape format.

3. Filmography

Although Hyperlapse is designed to allow the camera to move while shooting, videos actually turn out better when the camera is held steady and even better still when the camera is stationary. Lighting greatly affects the quality of the end result as well, as videos that are too dark or have fast variations in lighting are difficult to watch. Close-up shots, especially when multiple large objects enter the frame, render blurry unprofessional-looking results because the camera can’t process a quick change of focus.

4. Capacity

Remember, Hyperlapse makes your smartphone work hard. Shooting a lengthy video will use up a lot of memory and quickly drain the battery, and sometimes large videos won’t be able render completely unless other items are deleted from the phone to free up memory.

Happy Hyperlapsing!

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Put Away the Smoke and Mirrors

“Smoke and mirrors.” “Dog and pony show.” “Image is everything.” These phrases, which are deeply embedded in the vernacular and philosophy of old-school marketing firms, may appear on the surface as nothing more than harmless – if hackneyed – corporate speak. However, these seemingly innocuous clichés actually betray one of traditional marketing's dirtiest secrets. Once the clever headlines, catchy taglines and glamorous images are stripped away, all that’s left at the core is fluff, spin, deception and the art of inventing meaning where there is none. Even they don’t believe their own hype. Yet these are the very same people to whom business owners and decision makers have entrusted their livelihood for decades. Who’s to say the interactions you have with your followers can’t be meaningful?At its heart, your business shares the same goal with every other: to grow, thrive and compete successfully in your market niche. In order to do this, you must engage your customers and build a community around your brand. With old marketing, the relationship between seller and consumer has always taken place at arm’s length, using traditional media channels that rely on flash and frequency, that require a tremendous investment to outshine and outspend the competition. However, who’s to say your relationships with your customers can’t be personal? Who’s to say the interactions you have with your followers can’t be meaningful? The answer: No one who values your success over their own bottom line.

Leading by example

We tend to take established brands for granted, assuming the secret to their success lies in their ability to pour unlimited resources into every available advertising medium to broadcast slick, highly polished messages of self-promotion. However, a closer look at some of today’s most recognizable names reveals a different story. Let’s start with Amazon. If you think about it, there is nothing inherently glamorous about an online bookstore. Yet Amazon has managed to create a following so pervasive that it catapulted from an upstart dot-com to one of the world’s most powerful e-commerce megabrands, all without ever relying on pricey TV and magazine ads. “Advertising is the tax you pay for unremarkable thinking.” How did they do it? The answer is not smoke and mirrors. They did not trick anyone into drinking the Amazon Kool-Aid. Rather they committed themselves and their budget to creating a better shopping experience by developing more intuitive technology, stronger distribution networks and more competitive shipping deals. These are genuine and distinct advantages from which their customers benefit each and every time they interact with the brand, thus solidifying Amazon’s reputation for ease of use, low prices and quality service. Another brand that has risen to the top of its category by flying in the face of traditional marketing wisdom is Geek Squad. As founder Robert Stephens explained at Advertising Age’s 2007 IDEA Conference, “Advertising is the tax you pay for unremarkable thinking.” Instead, by taking a creative approach to what he himself calls an innately “boring business,” he has transformed his one-man show into a corporation that employs more than 17,000 nationwide. In an interview with Inc. magazine, Stephens explained his low-budget strategy:

Without spending any money on marketing, we were able to get people talking about Geek Squad by tapping into themes and archetypes people already understood. We embraced the fact that we were geeks, and we dressed all of our employees like 1960s NASA technicians, since NASA is a symbol of problem solving, teamwork and impossible tasks…In our early years, we found that more than 90 percent of people found us through word of mouth.

In fact, he credits his initial lack of monetary resources with forcing him to work harder, to be more innovative, to dig deeper, to develop an original and authentic approach that has differentiated Geek Squad from all other competitors:

At the crossroads of marketing and meaning

So where do these two concepts intersect for you? It lies in the fundamentals. Your business – let alone your category – would not exist if there were not a legitimate need for your product or service among some segment of the population. There is a community out there that is receptive to your message, that is waiting to be wowed with a newer, better way of doing things. Furthermore, your company would not be here today if at some time someone somewhere hadn’t felt passionately enough about whatever it is you do to risk everything to get that company off the ground. It’s time to reignite that passion and convey it in a way that inspires others. Make a conscious decision to be better, to be different. Resolve to enhance your usefulness; commit yourself to unrelenting innovation; make sure you are delivering a premium experience to your customer; then tell people about it in a genuine and compelling way. And that’s where you’ll need help. But you don’t need just any old traditional agency; you need a partner who shares your belief in what you have to offer and your passion for why you do what you do better than anyone else. You need experts that can show you how to communicate this to your audience in a real and honest way, using available technologies to build community among your customers and keep them actively engaged to the point where they include you as part of their identity. When you have something meaningful to say, and you say it with conviction, people will listen. No smoke and mirrors required.

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