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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In It to Pin It: 8 Ways to Win New Customers with Pinterest

A Pinterest-ing development in social media

The results are in and they’re rather stunning: Pinterest is now the third largest social network in the U.S., right behind Facebook and Twitter (Google+ who?). Moreover, a recent study by BlogHer showed that women trust recommendations from Pinterest more than any other platform. Not too shabby for a network that’s barely two years old and still in an invite-only open beta phase.

The basic mechanics of the site are simple. Members (known as “Pinners”) can establish a profile and “pin” all the cool, funny, trendy and inspirational things that they find in their online travels to digital bulletin boards, where images (and their associated links) are bookmarked. Pinners use these boards to visually document anything and everything pertaining to their interests, whether those interests entail fashion, home décor, food, parenting, wedding planning, tech gadgets or cars.

As you’d expect from any social network, pinners can follow each other. They can also “repin” other users’ images as well as like or comment on pins. Naturally, there’s also integration with the other Big Two, with the option to share links to pins on Facebook and Twitter.

More interesting is the question of why the site has caught fire so quickly. The primary reason lies in its anatomy. True to its name, Pinterest creates a highly streamlined experience for its users that is curated according to their interests. Unlike Facebook and Twitter, where users have to sift through every photo and status update from those they follow in a linear fashion, Pinterest users can focus solely on their hobbies without their feeds being cluttered with information that holds no value to them.

The most important question, of course, is how you can harness the power of this explosive new social network to grow your business. To answer that question, here are eight ways you can use Pinterest to win over new customers and fans:

1. Tap into what people love.

Before you dive in, take some time to study the ecosystem and how its members interact. One of the greatest advantages of Pinterest from a marketing perspective is that the community is very open, so it’s easy to see who’s influential in a certain area of interest and what types of content generate the most repins and comments.

By monitoring these trends, you can identify where the best opportunities lie for your brand to create the kind of content that your customers crave.

2. Focus on values, not products.

Think your brand isn’t a good match for an image-driven platform? Don’t be too quick to dismiss your Pinterest potential. Plenty of brands that don’t seem like the most obvious fit for Pinterest – from GE to Kotex – have found creative ways to leverage the platform to engage with customers.

The key is focusing not on your products or services but on the core values that define your brand. Organize your boards around these pillars of your brand and share things there that anyone who shares that common interest or passion would enjoy. Make sure to offer a healthy balance of content that includes your products where relevant but also great stuff from across the Web as well as repins from other users.

Whole Foods Market, for example, has quickly emerged as a Pinterest rock star using this approach. The company’s core values include caring about the community and the environment, promoting healthy eating habits and providing education about good nutrition. Drawing upon these values, they’ve created a diverse collection of boards –ranging from “Who Wants Dinner?” to “Winter Entertaining” to “Super HOT Kitchens” to “We’re Used to Reusing” – where they share content from a wide array of sources that collectively represents the Whole Foods lifestyle.

3. Tell a story in pictures.

Unlike Facebook or Twitter, Pinterest is image-based rather than message-based – which is one of the key reasons for its success. When users scroll through feeds or boards, they’re presented with a simple, uncluttered interface that includes a stream of pictures interrupted just slightly by a brief caption below. As a result, to be successful, it’s important to ensure that the images you pin to your boards tell the story of the content they represent in a visually compelling way.

For example, if you want to share a link to a post from your blog on Pinterest, you need to make sure it includes a powerful image that encapsulates its key theme or message and is also intriguing enough to prompt someone to click through to see the full story.

Keep in mind, too, that when followers re-pin your images, they can change the caption. As a result, it’s important that the images you pin can stand on their own outside the context of your brand’s boards so that they continue to convey your message and values as they are repinned from one board to another.

4. Be a participant, not just a contributor.

Creating boards that offer great curated content organized around your customers’ interests is a good first step. But as with any social network, to get the most out of your presence on Pinterest, you must also listen and engage, not just broadcast.

Repinning other users’ content to your brand’s boards demonstrates that you’re there to do more than push your own agenda by elevating those who have something interesting to offer on your topics of interest. Likewise, following other users’ boards and commenting on others’ pins is an effective relationship-building tactic that can draw new eyes (and potential new customers) to your own boards.

5. Let your customers create content for you.

Pinterest makes it easy to crowdsource content. All you have to do is create group pinboards and invite other users to pin content to those boards – a great way to spark engagement with your brand.

You can also use group pinboards as a springboard for contests where you ask customers to pin pictures of themselves using your products, with prizes for the most creative, innovative or inspiring images. It’s a win-win strategy for both your brand and your customers, as your customers can enjoy a turn in the spotlight while you can promote your products in a tasteful way that’s very palatable to the community.

6. Diversify your boards.

Another element that differentiates Pinterest from Facebook and Twitter is that users have the option to follow specific boards in addition to following users. This means that a user may elect to follow just one or two of your boards rather than everything you post.

While this may initially seem like a disadvantage to you, it’s actually a benefit. Why? Because it means you don’t have to worry about limiting your content to only that which offers the broadest appeal. Instead, you can tailor each board to fit a specialized interest.

Returning to our Whole Foods example, each of their boards is tailored to a fairly narrow area of interest, whether that’s recipes, seasonal entertaining, home décor, DIY projects, gadgets or books. While all of these boards may not appeal to every Whole Foods customer, by providing such a wide array of boards, the brand has greatly increased its chances that every customer can find something that resonates with their interests.

7. Make sure your great content can be found.

If you’re investing the resources required to create and curate interesting content, you want to make sure it can be found by the greatest possible number of customers and potential customers, right? The good news here is that there are tactics you can use to boost your odds.

First, just like Twitter, Pinterest supports hashtags. Tagging each image with the central idea or theme of your board will increase its chances of being found in search. Additionally, the sharing tools built into Pinterest automatically pick up these hashtags and include them when users share your content on Facebook and Twitter.

Also, make sure when possible to form the name of your boards around keywords. For example, West Elm offers home décor boards organized around specific color palettes (“Coral,” “Aquamarine”) and patterns (“Stripes,” “Chevrons”). By naming their boards according to these keywords, West Elm helps lead users who are looking for decorating ideas focused on that color to their boards.

8. Turn pins into traffic.

Don’t overlook the opportunity to use Pinterest to drive traffic to your website. If you pin cool imagery and interesting content from your site to your boards, you’re basically seeding Pinterest with a lot of links back to your site.

You can also add the “Pin It” button to your site right next to your other social sharing buttons in order to make it as easy as possible for visitors to add images from your site directly to their boards.

And if something either you or one of your customers pins happens to become incredibly popular? Think of all the potential clicks back to your site!

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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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