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.

---

3 Simple Rules for Navigation That Will Boost Your Website's Performance

At the outset of every new website design project, I ask clients to list a few adjectives that would describe their ideal new site. Inevitably, “easy to use” is almost always at the top of the list. Naturally, no one wants their website to be difficult to use. After all, in today’s era of unlimited choice, a great user experience is an absolute necessity. You work too hard to attract visitors and prospects to your website only to drive them away because that site’s interface presents them with frustrations and challenges. In that vein, the ease with which visitors can navigate through your website and its content will have a significant impact on the success of your site. If users can’t quickly identify how to accomplish their goals – whether it’s obtaining more information or making a purchase – they are likely to make a quick exit, taking their business with them. It’s up to your site’s navigational structure to do the heavy lifting in supporting their objectives and answering their questions, guiding them through the site to find what they need and complete the actions appropriate to those needs. This could be purchasing an item, filling out a membership or information request form, or simply finding your phone number so they can call you and open the lines of communication with your business. Regardless of your site’s “win,” an intuitive navigation structure is what will lead them there, so make sure your website follows these three Cs of good navigation in order to ensure that you make the most of every opportunity to capture and convert new customers.

1. Be concise.

In his book The Laws of Simplicity, renowned designer and current President of the Rhode Island School of Design John Maeda offers the following advice as part of his First Law of Simplicity: “The simplest way to achieve simplicity is through thoughtful reduction.” When weighing various options, the fewer choices that are available, the easier the decision process becomes. Give me four items to choose from, and I will be able to select one much more quickly than if you present me with eight. The same principle holds true for website navigation. Presenting your audience with fewer choices will allow them to more easily identify the one that pertains to their specific needs. Considering how impatient typical website visitors are, this can have a very positive impact on your site’s user experience. Look again at John Maeda’s quote, and you will notice that he is not an advocate for arbitrary editing but rather “thoughtful reduction.” Paring down the elements of your website’s primary navigation structure from nine or 10 choices down to four or five is great, but you need to be strategic in how you do it. Start by looking at the pages outlined in your sitemap and deciding how they can be categorized or grouped together in order to reduce the number of topline options. One of my favorite examples of this practice is the common testimonials page. Businesses love to include a testimonials page on their websites, but based on traffic numbers, these are typically among the least visited pages on any site. Traffic numbers are the ultimate arbiters of value and importance. If your visitors aren’t accessing certain content, then that content shouldn’t be given the same prominence as those pages that they actively seek out and use. In the case of testimonials, removing that link from your primary navigation and establishing it as a subpage under your “Our Company” or “About Us” section works very well. The same applies to any pages that you have that are dedicated to company history, management team profiles, staff bios, your company’s mission statement and the like. While these items are valid information for someone who’s really digging in to vet your qualifications, the majority of your visitors will never look at them, so let them take a back seat to the content that’s really going to seal the deal. Of course, this is where the “thoughtful reduction” principle comes into play. While each of the examples above could be grouped together, that doesn’t mean it is the right choice for your site. The goal is to examine your sitemap with a critical eye and decide which elements are truly important to your audience, which ones are secondary, and how you can treat them accordingly to provide as few choices as possible within your site’s primary navigation.

2. Be clear.

Everyone wants their website to be unique. Sometimes, this leads to the temptation to try to reinvent the wheel when it comes to the organization and presentation of its navigational structure, whether that’s by replacing links with icons or coming up with clever names for major content areas. While this may sound like a great idea that will help set your site apart from your competitors’, it can easily backfire. Visitors want to make quick, logical choices as they navigate through your website, which means that the options presented to them need not only to be concise but also to be clear. The navigation on your website needs to conform to the expected conventions that your visitors instinctively know and recognize. This does not mean that your primary navigation should be designed to look like large, beveled buttons with faux‐3D effects. That treatment may make for an obvious “button,” but it is also not in keeping with the aesthetic of today’s Web. On the other hand, you don’t want buttons or links that are so subtle with so little contrast that they fade into the design to the point of becoming invisible. There is a happy medium to be achieved where all links can be obvious and attractive at the same time. Labels are also an important part of clear navigation. Having a navigation link labeled “About Our Company” directly conveys to users what they can expect to find on that page. Trying to be creative and instead name that link “Unlock the Magic” is anything but clear and will confuse and frustrate visitors who simply want to find more background information about your company. That’s not to say that exploring interesting and innovative avenues in the design of your website is always a bad thing. It can certainly help differentiate your site from others and make for a memorable experience. Just make sure that you are not sacrificing clarity for creativity and confusing the user experience in the process.

3. Be consistent.

The final rule of website navigation is consistency. If you’ve designed a clear, concise navigational structure that your visitors can quickly and easily understand and use, then it’s important to maintain that structure throughout the rest of your site. Your website is not a video game, where each level provides new challenges that are the purpose of the game itself. Your users do not wish to relearn how to use your site at every step along the way. They are there solely to obtain information or complete an action, and anything that gets in the way of their mission is reason enough for them to abandon your site. Consistency is about more than just your primary navigation, however. The way that submenus are presented on the interior pages of your site should remain the same from section to section as well, and the same holds true for treatment of text links or buttons. If you use a certain color for text links, consider using that same color for buttons. Users will quickly learn which color – red, for instance – denotes a clickable area, which will help them to continue moving through your site quickly and intuitively rather than being bogged down by simply trying to locate the pathways to their desired destination.

How does your site measure up?

While there are many factors that ultimately contribute to your website’s performance, a well‐designed navigational structure goes a long way toward ushering your visitors from point A (your home page) to point B (the point of conversion, whether that’s placing an order, sending you an email or picking up the phone to initiate conversation). Look at your site and evaluate its navigation based on the principles covered in this article.

1. Is there anything you can do to make your navigational structure more concise through thoughtful reduction?
2. Are there any changes you can make to make your navigation clearer to your audience?
3. Are you consistent throughout your entire site with the way navigation is designed and presented?

Even if you are not ready to undertake a major site overhaul, you can still refine and tweak your existing site to improve its navigation and realize the rewards of presenting a better user experience to visitors that have found your website and are looking to do business with you.

---

The Anti-Super Bowl Ad: How to Be a World-Champion Marketer Every Day of the Year

So you don’t have the budget for a major celebrity endorsement from the likes of Pierce Brosnan or Brett Favre or even Kim Kardashian. And you don’t have the creative firepower to produce the heart-tugging epic of an adventurous puppy and his friends the Clydesdales. Lucky you.

Why? Because you have something far greater at your disposal.

Super Bowl ads and super-sized budgets: Who needs ‘em?

The Super Bowl might be the most-talked about moment in marketing every year. But that’s just it: after a week of speculation leading up to the big game and a couple of days of chatter after, all of those big-budget blockbusters quickly fade away into yesterday’s news.

Ultimately, Super Bowl ads fail the test of good modern marketing.

Think about the one quality almost all Super Bowl ads have in common: They may be funny. They may be sexy. They may be clever. They may be controversial. But at the end of the day, they are all designed to entertain. The Super Bowl – and everything surrounding it – is about over-the-top, in-your-face, entertainment. And therefore, the commercials that air in between plays in the NFL’s ultimate game and the pyrotechnics-infused half-time show have a lot to compete with to win our attention. Therefore, their only hope is to grab us and keep us entertained for 30 seconds.

While surely many of these spots will succeed in making us laugh or awww or even roll our eyes, that’s where their impact ends. They are too far removed from the products they are meant to promote to make any real connection with the audience. They don’t tell us anything meaningful about the brand. They don’t make a promise that we can evaluate to gauge the company’s merits against its competitors’. They don’t provide any content of substance to solidify our trust in the name behind the hoopla. Therefore, ultimately, they fail the test of good modern marketing.

The anti-Super Bowl advertiser’s playbook

For those of us mere mortals who are tasked with growing a brand without the coins to drop $4.5 million for the privilege of being adjacent to a mega moment in pop culture for 30 seconds, there’s no need to bemoan our lack of deep pockets. Why? Because we have a much more powerful set of weaponry in our arsenal.

In today's marketplace, the only valid currency is trust.

In today’s marketplace, which is one founded by, built by and existing for the people, trust is the only valid currency. And trust isn’t built through entertainment. Trust is built brick by brick, day by day, by companies that work hard, communicate honestly, deliver reliably and provide value beyond expectation.

Here are the seven commandments of trust-building that you must practice 365 days a year to conquer your market:

1. Have a purpose.

Your products are not your purpose. No matter what you sell, you have a greater reason for being than completing transactions and making the cash register ring.

Your company exists because you provide a product or service that meets a need or solves a problem. Focus on what it is about your offering that makes your customers’ lives easier, better or more fulfilled. Center everything you are, everything you do and everything you say around serving that purpose.

2. Build a relatable personality.

Stop trying to be a capital-B Brand. The capital-B Brands of the world are the Nikes, the Coca-Colas, the McDonald’s and the Apples of the world: instantly recognizable with a mere glance at their logo – or even their signature colors.

Your brand is more than your icon. Your brand is shaped by the values that define every interaction you have with your customers. Your brand is a mosaic of your people, and as such, it should be inherently human with genuine human qualities.

Don’t approach your customers as a Brand. Approach them from the perspective of someone who understands their needs and wants to solve their problems and make their life easier.

3. Communicate value.

Less than half of consumers trust paid advertising (down about 25% since 2009, according to Nielsen), which just goes to prove that useless, empty marketing content is useless, no matter how comedically, sexily or outrageously it’s dressed.

Today’s consumers are starved for meaning, transparency and utility. So when you communicate with them, forget the flash and focus on the substance. Create content that stands the test of time and provides genuine value, not just a lot of noise.

4. Be present – on every screen, not just the big one.

Wherever it is that your customers live, that’s where you should be. If they’re on Facebook, be on Facebook. If they’re on Twitter, start tweeting.

Listen. Contribute to the conversation – and not just when it serves your needs. Be helpful.

Above all else, be real. Don’t approach the conversation as a self-motivated, faceless corporate salesperson. Come to serve the community and its goals. Be yourself – a person with a budget, family, needs, problems and passions just like everyone else.

Read more: Mastering Tribe Marketing

5. Invest in your existing customers as much as you invest in acquiring new ones.

Never underestimate the value of loyalty. It costs much less to keep a customer than to win over a new one. And if you’re really good, you can turn your customers into fans that will serve as evangelists for your brand and do your marketing for you.

6. Make waves.

Commit to your story. Own your point of view. Don’t be afraid to risk alienating a few people in exchange for being loved by your core customers.

Doing things as they’ve always been done is comfortable and safe. You’re not going to offend anyone. But you’re not going to inspire anyone, either. Everyone who likes you one day can be gone the next. But people who love you stand by you.

In every industry and in every market, there is the opportunity to be revolutionary. Give the tribe of people who share a passion for what you do something meaningful to rally around. Show them that you understand them and you care about meeting their needs.

Draw a line in the sand. Demonstrate what you stand for. Be equally proud of what you are and what you are not.

Be bold. Be unapologetic. Be arrogant if that’s what it takes.

It shows passion. It shows conviction. It’s better than being imminently forgettable.

Let go of the safety net of liking. Make waves of love and hate. You’ll make the choice for your customers an easy one every time.

Read more: Death by Liking

7. Deliver.

To borrow the words of Steve Jobs, “Real artists ship.” At the end of the day, action is your best advertising. Every interaction you have with your customers is a chance to move the chains – either to advance toward the goal line of winning their trust or to lose yardage in the fight.

Action is your best advertising.

Don’t go over the top with your advertising. Do go above and beyond in delivering on your promises – every single time without fail.

It all comes down to this: You may never be a Super Bowl advertiser. But you can most certainly become a world-champion trust-builder. And that’s a title that pays dividends 365 days a year.

Read more: What Are You Doing to Move the Chains?

---