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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The Next Big Thing in Website Design: Wearable Technology

5 years ago, if you would’ve told me that people would be using mobile phones with tiny screens to access website content, I would’ve said that you were crazy. Obviously, I would have been quite wrong.

Today, I have clients who see more than 50% of their traffic come from mobile devices. The rise of those devices has changed the web design industry more so than any other thing I have seen in my 15+ years of designing and developing websites. Today, I see some of the signs I saw at the start of that rise in the growing popularity of wearable devices.

In this article, we will talk about what these wearable devices are, how they are used, and how their adoption may affect your business and your website.

What are wearable devices?

As the name suggests, “wearable devices” are ones that consumers actually wear on their body, as opposed to ones that they simply carry with them like a smartphone. Popular wearable device examples would be smartglasses, like Google Glass, and smartwatches, like the Moto 360 from Motorola or the forthcoming Apple Watch.

Each of these devices allow users to connect to the Web and access online content, and all of these devices feature screen sizes that are much smaller than what you will find on current smartphones. If you thought that it was a challenge to get your website content to be effective for a mobile phone, think about that same task now applied to an even smaller form factor!

It is that smaller form factor that is often given as a way to dismiss wearable devices ever being used to visit websites. Many people question whether a person would even want to access web content on those small screens. This is the same argument that was made early on in the rise of mobile devices like smartphones. The problem with this thinking is that it assumes that the wearable device is being used on its own, when in reality, the strength of these devices is how they connect as part of a larger ecosystem.

A connected ecosystem

Recently, we have been testing and experimenting with some wearable devices in our offices, including the aforementioned Moto 360 smartwatch and Google Glass. While these devices are amazing and powerful in their own right, they really begin to shine when they are paired with other devices, like a smartphone.

Yes, the tiny screen of a smartwatch makes reading long blocks of content or doing data entry on a webform uncomfortable, but those tasks can easily be bumped over to a connected smartphone. The watch can be used to filter this information. Instead of digging into my pocket to get my phone to check my emails or view online updates, I can more easily scan that information on the watch. Then, once I have identified something that requires my attention, I can switch to the phone, a tablet, or even a laptop of desktop computer to complete that task. In this way, I am using each device for what it does best – and both of them are accessing web-based content.

By connecting devices, you can also create actions or “triggers” based on certain parameters. For instance, in our testing we were able to take a picture with Google Glass and automatically publish that image to our Twitter account. Pretty cool, but we wanted to really take it a step further and see how far we could push this concept of connected devices and automatic actions. To do this, we purchased a MindWave headset from Amazon.com. This device measures brainwave activity. By using Bluetooth to connect that scanner to Google Glass and a smartphone, and with a little additional programming, we were able to create triggers that activated when certain thresholds were met. The first of those triggers caused Google Glass to snap a photo. The next trigger posted that photo to Twitter. These “triggers” were activated when the brainwave scanner sensed a change in a person’s brainwave patterns. We were able to demonstrate the process of automatically taking a photo and uploading it to social media – all with no input required other than changing the way we think.

Admittedly, this demonstration was a bit over-the-top by design. I do not expect consumers to start running around with brainwave scanners anytime soon, but the lesson here is that these devices, when connected as part of a larger ecosystem, can become so much more than the sum of their parts. As website owners, we really need to stop thinking about devices on an individual basis and start considering them as part of a larger whole.

Embracing the concept of "one Web"

When smartphones began to really gain popularity, companies realized that they could no longer ignore mobile by simply allowing their “normal” site (which was created to be used on a desktop computer, not a smaller handheld mobile device) to be sent to those phone screens. The solution that many companies embraced during this time was to create a separate “mobile-only” site for visitors using a smartphone. This solution became strained as tablet devices entered the market next.

Technically considered a mobile device, but with a screen size closer to a laptop than a phone, tablets really forced companies to question this “separate sites” approach. Yes, you could create one site for large, desktop monitors and another for mobile phones, but would you now create one for tablets –

leaving you with 3 sites to manage and maintain? With the rise of wearable devices, will you need to create a new site for each distinct wearable category? That is a long and expensive road to travel.

The desire to have only one website to manage and maintain has led to the adoption of responsive web design as an industry best practice. Responsive web design allows you to have one website that will automatically change its layout based on the user’s screen size. This was helpful when we had to consider mobile phones and tablets. With the rise of new wearable devices, this concept of “one web” is even more important.

If you intend to develop separate sites for each possible screen size, you will always be playing catch-up. As new devices enter the market, you will need to create a new site for each device type, which means you need to endure the time and expense of constantly rolling out new sites. This can quickly becoming overwhelming.

The reality is that there is no “mobile web”, there is just one Web and as the emergence of wearable devices has shown, our customers are using a variety of devices to access that Web and the content we put out there.

To do now

As wearable devices go from a novelty being used by the few to a way of life for the many, we want to make sure our sites will be ready. Don’t think wearable devices will ever be popular with consumers or used to regularly access web content? Again, that is exactly the argument that was given when smartphones first began gaining popularity, and we can see how that turned out. No, the question of wearable devices is not “if” they will impact our websites and audience, it is “when” they will do so.

If you have not already embraced the “one web” approach on your website, now is the time to really start exploring that option. You can begin by testing your website out on a variety of devices. If you have the ability to purchase these devices at your business, that is great, but even if you do not have the budget for devices purchases, you can still test your site on them. Visit your local Best Buy or other electronics retailer and see what new wearable and mobile devices are available today. Access your website on those devices to get a feel for what your customers may be seeing if they are visiting your site with similar devices.

You can also speak to your web or marketing agency about the rise of wearable devices and how to best prepare your site for them. By being proactive about wearable device support on your website, you can be a leader in the rise of these new devices, instead of a company trying to play catch-up after the fact.

 

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Death of a Salesman

The salesman is dead. Long live the relationship-builder.

If you're like most entrepreneurs, you love what you do. You have a passion for your ideas, your products and your services. But you hate selling those ideas, products and services with a passion, too. And you know what? Your customers hate being sold just as much as you hate selling them. So what's the solution? Forget everything you thought you knew about sales. In today’s marketplace, growing your business is as simple as building relationships – something you’ve been doing your entire life. There’s no magic formula for success. You don’t need to be a fast-walking, smooth-talking salesman to get people’s attention. You don’t need to put on a dog-and-pony show to convince them you are the best at what you do. Flash isn’t what’s going to get the job done. Just be yourself and do what comes naturally. Focus on serving others. Have conversations. Talk plainly but with authority. Be authentically helpful. Let your expertise do the heavy lifting. Lead the way to success for your prospects. Say goodbye to your days of being a salesman once and for all. Here are the dos and don’ts that will guide you in building relationships that lead to business growth.

Find your niche. Don’t try to be everything to everyone.

The salesman will eagerly talk the ear off of anyone and everyone that will give him the time of day, regardless of whether they have any real use for his products or services now or in the future. The relationship-builder can say with confidence that he is the best man for the job because he knows his strengths and his customers’ needs well enough to know that it is true. When you’re trying to grow your business, it’s tempting to cast your net far and wide to reel in any and every prospect that crosses your path. But grasping at straws is no foundation for long-term, mutually beneficial relationships. The key to convincing prospects that you are their best choice is truly believing that you are, in fact, the best choice for them. This type of self-assuredness starts with knowing where your depth of expertise lies and identifying those who can benefit most from it. This requires you to be resolute in defining your service niche, clear in identifying your target audience and focused on finding ways to connect the dots between the two. When you find the people that you are meant to serve, convincing them to let you help them reach their goals is a much less difficult proposition.

Pull, don’t push.

The salesman cold calls. His is the Russian roulette approach to business growth. He spins the wheel and hopes for the best. The relationship-builder endeavors to establish a foundation of trust before ever asking a prospect to entrust him with their time, attention or hard-earned dollars. We’ve said it before, and we’ll say it again: you must be identify the tribes of people who represent your target market, find the places where they live online and earn your right to walk among them as a leader. To be accepted by their community, you must first contribute. This will likely require being an active participant in social media channels, where you can interact directly with current and prospective customers in ways that are helpful, insightful or even entertaining. This almost always requires ensuring that your own online home base – your website – provides value beyond compare in its free content offering, whether that takes the form of blog articles, videos or other types of resources. After all, as a relationship-builder, you must be willing to give away some of your time and expertise in order to plant the seeds of trust and open the lines of communication. But the benefit of your efforts is that when someone is ready to pull the trigger on a buying decision, your name will be the first – and maybe only – one on their call list.

Do your homework. Don’t make assumptions.

The salesman has a one-size-fits all pitch for every customer. His product doesn’t change, so neither does his approach. The relationship-builder does the legwork necessary to ensure that the relationship starts off on the right foot. He recognizes that no two customers are alike, and if he doesn’t have a fundamental understanding of the problems they face, how can he propose to address them? If you are given the opportunity to meet with a prospect, gather as much intelligence as possible beforehand. After all, when you have the entirety of the Internet and its infinite font of information at your disposal, why not use it? What can you learn about the person you’re meeting with? What is their professional background? What experiences or interests do you have in common with them that can help you break the ice? What’s the story of the company they represent? What does their competitive landscape look like? What opportunities can you see that they might not be taking full advantage of? You’ll be amazed at what spending a few minutes with Google, LinkedIn, Facebook and Twitter will reveal. Ultimately what you’re really looking for are the questions, concerns, issues and insecurities that keep them up at night. If you walk in and show them that you understand their challenges from their perspective, they’ll be more easily convinced that you also know how to overcome them.

Have a conversation. Don’t make a pitch.

The salesman loves the 30-second elevator pitch. He comes out swinging right off the bat with a perfectly polished speech about how wonderful his products or services are. The relationship-builder asks questions first. After all, this meeting is about serving the prospect’s needs, not his own. While it is important to do your homework before a prospect meeting, don't make the mistake of assuming that you already have all the answers you need. And certainly don't script out the interaction. Ask a lot of questions. Confirm the conclusions you drew from your research. Be prepared to improvise. You know your business, and if you’ve done your due diligence, you know their business pretty well, too, so there’s no need to be apprehensive if the conversation takes an unexpected turn. Don’t become so wrapped up in your own presentation that you steamroll over your prospect. You should listen at least as much as you talk. Make sure you truly hear what the prospect has to say. Pay close attention to their body language and facial expressions for cues that can help you steer the discussion in ways that reinforce their trust in you. Remember: a pitch is a push; a conversation is a two-way street.

Tell a story, don’t tout features.

The salesman has a laundry list of features that he wants to make sure he conveys to a prospect so they know just how special his product or service is. The relationship-builder doesn’t talk in bullet points. He paints a picture of the end result. Tell your prospect the story of their future success and how you're going to help them achieve it. Give them a reason to believe why will it work, what will it be worth when it does and why are you the one that can make it happen.

Be authoritative, not arrogant.

The salesman is unshakably confident – to such an unnatural degree that he comes across as phony and affected, as if he’s merely putting on a well-rehearsed show. The relationship-builder demonstrates a different brand of confidence – one rooted in the foundation of authentic expertise and experience. When you talk to a prospect, speak with authority, not arrogance. Demonstrate that you are a master of your field, but interact with them as an equal. Relate to them as one person who understands the challenges of growing a business to another. And never stoop to tearing down the competition. Unless your prospect broaches the subject, there’s no reason even to acknowledge their existence. This is your time to shine; make the most of it.

Be patient, not pushy.

The salesman wants a commitment today because that’s what serves his interests. The relationship-builder lets the customer decide when they’re ready to take the relationship to the next level because that’s what serves the client’s interests. That’s not to say that you should meet with a client and then ignore them until they decide to pick up the phone and call you again. You should touch base periodically, but do so in a way that demonstrates your continued mindfulness of and investment in their needs. Reassure them that you’re ready to hit the ground running if and when they choose to move forward. Remember that every touchpoint – whether it occurs in person, over the phone or via email – represents another chance to strengthen the bonds of trust that exist between you.

Be a nurturer, not a closer.

The salesman is a great closer. Once he has a signature on a contract and money in hand, his job is done, and he has already long since turned his attention to his next target. The relationship-builder never closes. He pays attention, he nurtures, he earns the right to continue serving the customer’s needs. "Closing" is a dangerously misleading term – one that is symptomatic of the old school of sales. When a customer makes the choice to do business with you, you’re not closing anything. You’re only beginning the process of cultivating a relationship with someone whom you hope will be a lifelong client. Remember that this person and this company have decided to take a chance on you. To them, it’s still a roll of the dice at this point. This is your opportunity to prove to them that their gamble will pay dividends in the realization of the future success you promised. Think of every interaction you have as an opportunity to cement their continued loyalty. Don’t just meet their expectations; exceed them at every turn.

R.I.P., Mr. Salesman. Hello, Mr. Relationship-Builder.

Follow the guidelines we’ve outlined here, and you’ll inevitably find that your prospective customers respond positively to seeing that their needs come first and that you have a genuine interest in helping them advance their own goals. If you approach the task of growing your business as a mission of earning trust and building relationships with people rather than just closing one sale after another, you’ll find not only that it’s not a dreadful task but that it’s actually enjoyable and even rewarding. So what are you waiting for? Get out there and start building!

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