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.

---

10 Steps to Conquering Twitter Through Trustcasting

A simplistic platform with complex rules

As a vehicle for communicating with customers, Twitter is a deceptively simple platform that, in reality, is a challenge to truly master. First, there’s the format. How do you develop meaningful relationships 140 characters at a time? There’s also the overwhelmingly expansive size of the community. With 200 million registered accounts in the Twitterverse, how do you attract followers that belong to your tribe and will help your business grow? Furthermore, there’s the staggering pace of the flow of information and dialogue. With an average of 110 million new tweets every day, how do you make a meaningful contribution? Each of these complex questions share the same answer: trustcasting. As we established in the Trust Manifesto, “In a marketplace founded by, built by and existing for the people, trust is the only fundamental currency.” The results you yield from your participation in the Twitterverse will only ever be as good as the time and effort you invest in earning trust and developing genuine relationships with others. If ever there were an ecosystem built by and existing for the people, it’s Twitter. Each user is the sole arbiter of who is and is not granted permission to be present in their feed. Each and every user is judge and jury of good and bad content; the interesting, relevant stuff gets elevated and passed along to their own networks while the boring, self-serving stuff withers and dies out quickly. The one and only way to break through is by engaging in an ongoing process of building and maintaining trust. Following the golden rule of trustcasting, everything must be centered around developing authentic and reciprocal relationships between your company and other members of the community – a process for which no shortcuts exist. The results you yield from your participation in the Twitterverse will only ever be as good as the time and effort you invest in earning trust and developing genuine relationships with others.

Here are 10 essential steps you must follow to conquer Twitter by adhering to the principles and practices of trustcasting:

1. Be one with the medium.

Before you dive in and make potentially embarrassing or even reputation-killing public blunders, observe the ways in which other more experienced users engage and interact with each other to get the lay of the land. Nothing screams “Imposter!” like someone who goes tearing through the Twitterverse like a bull in a china shop with no regard for the nuances of the community. By showing disregard for the unique language and customs of the Twitter ecosystem, you also show that you’re disinterested in serving anyone’s interests other than your own.

2. Step out from behind the corporate curtain.

While the old familiar rules of marketing would dictate that your handle should be your company name and your avatar should be your logo so that your brand is always front and center, Twitter isn’t a collection of brands on a shelf but a living, breathing community of people. If your customers encounter a faceless brand, they don’t know if the person behind the curtain is the great and powerful Oz or your summer intern. It’s much more natural for your followers to have an authentic conversation with a human being. Set up your profile with a photo of yourself and a bio that tells us more about you than your official job title while remaining transparent that you also represent a company. Make sure to let your personality to shine through and to allow your interactions display human qualities – whether it’s candor, humor, generosity or even humility. By allowing members of the community to get to know you on a personal level, you open the doors to a deeper level of engagement.

3. Find real people you can have real conversations with.

With so much buzz around the concept of influence on Twitter, it’s tempting to go chasing after the users with the highest follower counts and try to entice them into your circle, knowing that one retweet will reach thousands of potential customers. However, it’s more important to find members of your tribe – those whose interests and needs align with the products or services you offer – who will be receptive to what you have to say. A good way to find these people is to regularly search for users in your area who are talking about subjects relevant to your offering. For example, let’s say you’re a dog trainer. You could enter the search terms “puppy near:Charlotte within:20mi” to pinpoint users near you who might be interested in the tips, articles and offers you have to share. By following them or replying to their tweets when appropriate, you’ll increase the likelihood that they will follow you in return. As you build a friendly rapport with this group of core followers, others will take notice and want to join in the conversation. It will be as if you are at the head of the cool kids’ table, and they want to pull up a seat. Contrast that with a scenario in which you have amassed a list of supposedly influential users who ignore your content and never respond to you. Where did all the effort to win their follow leave you?

4. Give before you expect to receive.

The holy grail of Twitter is transforming your followers into evangelists who retweet your content through their networks and give it legs to travel far beyond your immediate circle of influence. However, you can’t expect the rewards if you don’t put in the work. It’s up to you to find or create interesting content that’s worthy of a share. Promotions and giveaways are easy fodder for sharing, but they’re not the only share-worthy material. A link to a thought-provoking article, an inspiring quotation or a helpful how-to video are also highly sharable. Even if the content isn’t originally yours, you’re doing a service to your community by finding good information and passing it along.

5. Put sales objective second to trust objectives.

Twitter is a medium, not a broadcast channel.You’ll only be successful if you approach it as a means to cultivate a tribe of people you’ll enjoy conversing with, learning from and sharing with rather than a tool to give you unlimited access to a captive audience that you can barrage with marketing messages at will. Don’t engage followers as a brand with an agenda to sell but as an ambassador for your brand with intentions of making a meaningful contribution. For example, let’s say you own a store that sells running gear. You should make it a regular practice to pass along links to local races, share articles from around the blogosphere about good running form and nutrition, offer helpful tips to users who tweet about their struggles staying motivated and give shout-outs to customers who have achieved personal milestones like completing their first 5k. Without ever posting a direct link to a product, you can allow prospective customers to reach their own conclusions that you are the kind of company they want to support when they’re ready to make a purchase.

6. Reach out.

Remember that Twitter is, in essence, one sprawling public forum. As a result, you don’t have to sit back and wait for someone to approach you. It’s perfectly acceptable to jump into the conversation, as long as you follow the rules of trustcasting in doing so. Don’t be disruptive, and don’t go straight for the kill with a hard sales pitch or a link to your website. If you see an opportunity to join in a dialogue with something insightful, helpful or even funny, go right ahead. You might get a response or a follow in return for your efforts. More importantly, over time, you’ll cultivate a reputation for being a trusted source of interesting, useful or entertaining information, and your company and your brand will reap the benefits of your perceived authority in these areas.

7. Be responsive.

Always be responsive if someone directs a question or comment your way. It’s smart to keep tabs on mentions of your name or the name of your company so that you can reply as quickly as possible. Attention spans on Twitter are short, and if hours pass before you respond, chances are good that the person has moved on, and you will have missed the window of opportunity for a good two-way dialogue. It’s also important to be an equal-opportunity responder. While it’s always fun to reply to someone who is raving about your product or service, it’s dangerous to ignore those who have complaints. Respond to your critics with sincere concern and express an earnest interest in making things right, just as you would a dissatisfied customer who was standing in front of you in your store. Even if your efforts are rebuffed or ignored, you will have done your best publicly to demonstrate that you have their best interests at heart. In trustcasting, respect for the customer is paramount.

8. Be the kind of follower you want to have.

One of the best ways to earn goodwill in the Twitterverse is to promote others’ content. When someone you’re following shares a link to a thought-provoking blog post, news article or video, retweet their content, giving them credit for their great find. Elevating other members of the community is a simple, selfless act that demonstrates that you’re there to do more than toot your own horn.

9. Let your guard down.

The best thing social media – Twitter included – has done for business is removing the barriers that once stood between companies and their customers. No longer are you bound by the restrictions of mass media channels; instead, you can interact directly with your customers on a personal level. Therefore, your participation on Twitter must follow the rules of the culture of the Web. If you insist on holding your followers at arm’s length and only allowing them to see a perfectly polished version of your company, you won’t get the most from your efforts. Instead, go with the flow and keep it real. Your tweets are essentially part of a long-running chat. Keep your tone light, casual and approachable. You can even give your followers the occasional behind-the-scenes glimpse into daily ins-and-outs of your business. If you own a bakery, and you tweet a photo of your chef hard at work making your signature dessert, it’s a great way to remind your followers that they can swing by and pick up a freshly baked, handmade treat without explicitly asking them to do so. And they’ll feel more invested in your success because they will feel more connected to the people behind the name.

10. Be patient and persistent.

You won’t be an overnight Twitter sensation. You may not ever play on the level of Martha Stewart or Ashton Kutcher. But you also don’t need millions – or even thousands – of followers to make your participation worth your while. At its core, Twitter is a high-tech version of traditional grassroots marketing. You must build your community one follower at a time. Keep your focus on the quality of your community and the depth of your interactions, both of which you must allow to grow naturally and organically. In trustcasting, there’s no substitute for honest intentions and hard work. But while earning and maintaining the trust of your followers is a more indirect path to business growth than conventional carpet-bombing sales and marketing tactics, it will ultimately allow you to achieve the greatest return in securing ownership of your market.

---

Tribes in Today’s Marketing

What is a tribe?

Simply put, a tribe is a group of people that connect around a common goal. Tribes can exist anywhere and can be based upon any shared interest, no matter how specific. In fact, you are most likely a member of a tribe or even multiple tribes. You may even lead one. Behind every major movement and successful marketing engine there is a tribe. Behind every major movement and successful marketing engine there is a tribe. Barack Obama leads one in which he can raise millions of dollars in a single day. Steve Jobs leads a tribe comprised of a cult-like following of brand evangelists who hang on his every word during his two-hour product launch event and then go out and do Apple’s marketing for them. Tribes are not always large. Some don’t want to be big. In fact, many are exclusive. The common element around which most tribes form is actually quite narrowly-defined. These tribes are not just for golf, but for those afflicted with a natural slice in their swing; not just for personal finance, but for those obsessed with maximizing the energy efficiency of their homes; not just for shoes, but for those infatuated with handcrafted Italian leather stilettos. Balloon artists, amateur photographers, collectors of exotic southwestern jewelry, Ford Mustang enthusiasts, avid Mac users, city managers engaged in innovative economic development – all of these are tribes that gather. For their members, their interest is an intrinsic part of their identity, and their association with their peers is a point of pride. Anytime people make connections based on a shared passion, similarities in background or a common need for solutions to improve their lives, a tribe is born.

What’s changed

Tribes have always been around. Before the days of the Web, smartphones and Facebook, communities would form based on commonalities and gather face-to-face. Naturally, these tribes were geographically-based, and their numbers were fewer and limited to the most popular interests. Today’s tribes are different. The advent of the Information Age tore down geographical barriers by introducing platforms of persistent conversation and information sharing. Online message boards, which have been around for decades, overcame the limitations of locality and allowed for a tidal wave of tribes to be formed – not just big tribes, but ones that were small and highly specialized. People now had the tools they needed to find others with a shared passion and make an instant connection in the absence of physical proximity. As technology continued to evolve, the Web provided a more robust platform for these communities to take form. Smarter and more relevant searching allowed people to find outlets for their passions through 200 million websites. Website creation tools became more accessible, allowing those with limited technical know-how to create online hubs where their tribes could gather. Add to this new tools for scheduling, collaboration, coordination and real-time communication as well as wifi and the mobile Web, and you have fertile ground for tribes to flourish around any and every common goal and interest.

New types of tribes

In the past few years, the evolution of social media has allowed people to connect in ways that are not based solely on common interests but also on commonality in relationships and geography. When communities form around who their members are, where they live and how they relate to each other, a new dynamic is introduced. The tribe concept becomes even more powerful and pervasive as people forge ties around commonplace goals in their daily lives. For geographically-based tribes, the day-to-day problems of life – from finding the best deli in town to getting a recommendation for a good mechanic to obtaining a reference for a trustworthy electrician – are solved through the formation of tribes based on members’ inherent commonalities. Tribes can form around many different types of relationships. Whether it’s families bound together in a social network or colleagues that develop a web of connections on LinkedIn, the common thread that ties all these communities together is the relationship of their members to one another. in a world ruled by tribes, word-of-mouth is king Communication travels quickly through these organic networks, in most cases crossing over to other networks. Something as seemingly simple as a recommendation for TurboTax software during tax season spreads virally via word-of-mouth advertising from tribe to tribe, as members seek to solve problems in ways that enhance their own lives, the lives of others they care about and the environments in which they live. Thus, in a world ruled by tribes, word-of-mouth is king. Trust is not only essential; it is required.

The old system of marketing

Before the economy was overtaken by tribes of highly interconnected and informed consumers, success in marketing was achieved by the companies with the largest budgets and the greatest capacities to pummel the public into purchasing their brands. If you were selling a product 10 years ago, you would have run expensive advertising campaigns based on interruption, hitting the consumer over the head with your message as forcefully and as often as possible. The objectives driving this type of intellectual spamming were to raise brand awareness, create demand for more product, obtain wider distribution and ultimately apply those profits to more ads in order to fuel this vicious cycle. In what’s left of mass media, this wasteful practice still goes on. Arby’s invested more than $85 million interrupting everyone with an oven mitt to sell sandwiches. Progressive and Geico spend a fortune flashing their brands in any and all media and markets. Nike poured hundreds of millions into endorsements and marketing to sell more Tiger Woods-branded products simply because they could command higher prices. National brands aren’t the only ones guilty of still marketing by interruption and spamming. From law firms to home builders to car dealerships, local businesses in every town dump truckloads of money into carpet bombing the public with ads in local magazines, newspapers and television, shouting their claims that they’re the best, they’ve discounted everything yet again, they have too much inventory and everything must go.

Marketing in a tribe-driven world

Today, trust rules the marketplace. People have many more choices and much less time than ever before. As a result, they invest their time carefully in their passions, in the issues that count and in the things that make a difference in their lives. They have no use for or trust in traditional advertising. Instead, they belong to a tribe, and they follow the movement of its members and leaders. These tribes are formed and move with or without you. Today’s successful marketers bow to the tribe, reforming how they do business, how they develop products and how they grow accordingly. The power and influence you command through the trust you earn from the tribe is unrivaled by any form of advertising. Your membership in the tribe is earned through trust and trust alone. Trust gives you permission to talk about your ideas as well as what you are doing to improve the lives of its members. When you are active and demonstrate honest intentions and selfless motives, you are promoted by the tribe’s leaders. The power and influence you command through the trust you earn from the tribe is unrivaled by any form of advertising. In this way, the tribe is your marketplace.

Getting there

Many companies, particularly local businesses, have a hard time mapping the connection between tribes and their bottom line. In fact, most are challenged to identify where tribes exist or, if they must, start and lead a new tribe. The fact is, any successful act of business creates a solution for a problem or improves people’s lives in some way. Underneath that solution are people who are already talking about all the issues surrounding it every day. Your focus in growing your business should be to identify your tribe and lead it. Weber doesn’t just sell grills; they lead a tribe of grilling enthusiasts. Jeep doesn’t just sell cars and accessories; they lead a tribe of off-roading die-hards. Gary Vaynerchuk doesn’t just market wine; he leads a tribe of a million wine aficionados. Fame Foundry doesn’t just sell marketing and website design; they lead a tribe of entrepreneurs and decision-makers whose passions are focused on business growth. Your passion for your business is your license to lead. You don’t need to be a national brand to be a tribe leader. Your local dentist doesn’t just sell her services; she leads a local tribe of people that care about healthy teeth. She may have only 25 true fans, but when they tweet or post their endorsement for her practice on Facebook, multiplying their actions by the average of 150 connections per fan now gives her instantaneous, powerful and unbiased word-of-mouth advertising to 3,750 people. Eliza Metz applies her life’s passion to leading a massive tribe of yarncrafting fanatics who follow her on her blog, on Plurk, on Facebook and on her podcast. She has earned the trust of its members, who have elevated her to a position of leadership. As a result, when she says she likes something, they listen and move, which translates to sales immediately. Eliza has never bought one piece of advertising; instead, she leads. Your passion for your business is your license to lead. But you can’t just log in, plant your flag and begin selling your products or services. The tribe will banish you right away. The fundamentals of trustcasting prevail in every facet of business growth, and this is no different in leading tribes. In part two of this series, we’ll go beyond the foundational understanding of tribes and cover the steps to identifying, becoming a member of and leading the tribes that are relevant to your business and your bottom line in today’s marketplace.

---