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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Insider Secrets to Killer Website Content: All About Your About Page

As important as good website design is, let’s face it, it’s not what brings visitors to your site. They come for the content, and if that content is sufficiently compelling, then they’ll take the action you desire, whether that’s making a purchase, completing a registration form or even just picking up the phone to contact you for more information. In short, the success of your website begins and ends with quality content.

That’s why in this series of articles – Insider Secrets to Killer Website Content – we’re taking a look at types of content that are common to many websites and exploring ways that they can be redesigned and improved. This second installment addresses a ubiquitous website presence – the “About Us” page.

The ever-present, often-overlooked “About Us” page

You would be hard pressed to find a website that does not have an “About Us” page of some sort. It may be called “Our Company”, “Who We Are” or some other variation on this theme, but in the end, these are all pages focused on telling the visitor about the company to whom the website belongs.

The problem is that these pages are typically as boring as they are commonplace. They generally contain little more than some basic facts about the company – perhaps an abbreviated history of the organization, some details about what the company does or a mission statement.

This information may be necessary – after all, it is your company’s website, so it should contain some high-level, general information about your company. Still, your site – and your “About Us” page – can also contain more than just the facts, ma’am.

A lack of depth

The chief problem with the typical “About Us” page is not that the information it contains is bad in and of itself; it’s that it lacks the depth necessary to play a role in advancing your visitors toward conversion.

Compounding this problem is that “About Us” pages, once written, are rarely ever rewritten. During a redesign process, a website’s content is audited and overhauled, but  if the basic facts about the company haven’t changed significantly, the content of the “About Us” page is usually just moved over to the new site with little to no change made at all. As a result, factually accurate but somewhat boring “About Us” content often persists stubbornly through redesign after redesign.

Your company’s history and the services it offers are certainly important information to share, but there’s so much more that truly defines your company, including its unique personality.

Bringing personality into play

Neither the factual history of your company nor your self-proclaimed statement that you “provide outstanding customer service” will set you apart from your competitors, all of whom are saying exactly the same thing, likely in almost exactly the same words. However, what will set you apart is personality.

Every company has a personality. It is the unique product of your people, your company culture and your interactions with your customers. I often find that a company’s personality is energetic and fun when they engage with customers in the offline world, but their online presence captures none of this energy. Instead, the only cards they show are the typical vanilla facts about the company itself. This is what we can change by bringing that offline personality and the particulars of how your company engages in the physical world into the digital space.

Examples of personality

Let’s take a look at a few great examples of websites that are infused through and through with personality all the way down to the “About Us” page, starting with e-tail giant Zappos.com.

Zappos’ “About” page is all about the company’s culture. Yes, the history of the company and their leadership team are there as well, but the main focus of this section is their culture, including images of holiday celebrations and videos of their people. In perusing this content, you get a much better sense of who they are than you would by reading a a mission statement, a brief company history and a bulleted list of achievements and awards.

Another example of a website permeated with personality is Northfield Savings Bank. The sense of fun that they’ve built into their brand is an unexpected but delightful surprise, since banking isn’t generally synonymous with fun. Still, Northfield pulls it off on their website. Starting with the logo, which features a flying pig, they carry this theme through their entire site, turning the popular phrase “when pigs fly” into a rallying cry for how they go above and beyond in serving their customers. These stories are told on a subpage of their “About” section as part of their “Pig Stories” video series.

It’s not all fun and games

Personality doesn’t have to be all about fun, holiday costumes or flying pigs. For many brands, fun would be an inappropriate trait – but that doesn’t mean you can’t display a personality.

Perhaps you are a not‐for‐profit organization that provides assistance to those in need in your community. Fun may not fit into your brand, but passion likely will. You can show that passion by using your “About Us” page or section to detail the impact your organization has had, profile the lives it has touched and convey the drive that you have to continue to do more.

Instead of simple facts and figures, personality will provide a well‐rounded, distinctive look at who your company or organization really is. That will be what sets you apart from your online competitors and their typical, boring “About Us” pages.

The more the merrier: Adding team bios

If adding unique personality to your company’s “About Us” page can help differentiate your organization, then adding individual bio pages for your employees can take this to the next level.

Granted, this approach is not a fit for everyone. A massive organization with thousands of employees obviously cannot have a page on their website for every individual. In these cases, the bio pages may be limited to board members or senior-level executives. For smaller organizations, however, it is certainly possible to feature each team member individually, and there is real benefit in doing so.

About a year ago, my company redesigned our website. During this process, we made the decision to include a section for “Our People” and give every employee a bio page of their own. We also decided to allow the unique personalities of those individual employees to shine through on their pages. Rather than using the professional headshots you would find on LinkedIn or in press releases, we encouraged our employees to submit photos of themselves that showed them outside the office environment. We received snaps of our team members atop mountains and glaciers, competing in races of one kind or another, enjoying vacations, feeding animals or just being silly and having fun. Taken as a whole, the photos show the variety of personalities and passions that make up our team.

For the bios, we included a short professional history, but we also asked our staff to share their hobbies, talents and an interesting or unusual story about themselves. Like the photos that accompany these bios, the stories and profiles we created reveal an incredible sense of diversity amongst our team.

What our customers are saying

Adding these individual bio pages on our website was a leap of faith for us. We were unsure how our clients and prospective clients would respond to this type of content. However, I am happy to report that our fears were unfounded, as the response has been overwhelmingly positive.

A number of our existing clients have remarked how they enjoy being able to see a picture of a team member before they are scheduled to speak or meet with that person. They also like to know a little something about them outside of their professional work. In more than one case, a customer and one of our team members have discovered shared hobbies or interests thanks to that team member’s bio page. This common interest has allowed them to engage in discussion and begin to foster a relationship that extends beyond the work they are paying us to do for them.

In terms of prospective clients, the feedback has been positive as well. In fact, we recently closed a deal where the client told us they hired us because of our bio pages. That client was wary about hiring a technology firm, fearing that we would only speak in techno‐babble and industry jargon and be on a different wavelength than their company. Seeing our interests outside the office, they immediately felt reassured that they could relate to us – a feeling they didn’t get when they looked at the websites of our competitors.

That’s a big win for personality if you ask me!

The argument against

The argument that I hear most frequently against adding personality to company or team bios is that it may turn some customers off and drive them away from your business. We worried about this ourselves when we decided to add the individual bio pages to our site.

It is true that a unique personality could drive some potential business away. But the better question is: should you really care? If you present your company’s true personality on your website, and that personality turns someone away, would you really have wanted to do business with them in the first place?

Yes, presenting a personality that is more than a safe buttoned-up suit-and-tie approach may turn some business away, but the reverse also holds true. The personality you reveal may very well be the deciding factor that sets your company apart in a  sea of sameness and actually attracts clients that may otherwise have passed you over – exactly as it did in the example I cited above. Had we not put our personality out there, we would not have won that business.

Finding the right fit

No one wants to turn business away, but the reality is that not every potential client will be compatible with the way you operate. Finding the right fit for your company is how you can achieve success in both the short and long term – because even if you do initially win over a company that isn’t truly a good fit for you, they are unlikely to stick around for long.

Finding the right fit allows you to build a relationship that may start with one job but grows stronger and deeper over time to create long‐term engagements and partnerships that can help drive success long after that first project becomes a distant memory. One of the ways to find this right fit is to always remain true to who your company is and not be afraid to let your personality shine through for all the world to see.

You’re not done yet

Finding ways to take “About Us” content from the typical company facts and figures to something that will differentiate your company is just one example of how rethinking content can make your website a more powerful conversion engine. Subsequent entries in this series will explore other common elements of website content that can be improved to bring more value to your visitors and greater returns for your business.

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The New Rules of Customer Engagement

The rise of the culture of the Web has revolutionized the nature of how businesses and customers relate to each other. Whereas companies could once shape and direct the perception of their brand through carefully crafted ad campaigns, direct mail and press releases, today the flow of information runs fast and free, and customers now own the conversation. And because whoever owns the platform dictates the culture, the world is a more human, less institutional place to do business. Today’s customers want to feel good about the products they buy, where they came from and how they were made. Moreover, they want to like the company behind the product – that is, genuinely like it, not just press a Facebook button. We are entering an age of emotive economics. Corporations have been forced to adapt to this new, people-centric culture by connecting with customers on their own turf in more casual, conversational ways. There’s little room or respect for old-school corporatism’s pomp and protocol. And those businesses that cling to traditional behaviors in the online community will earn its scorn very quickly. Those companies that have embraced this new landscape and its risks have enjoyed great reward. For this reason, the human face, rather than steal and glass, has become the façade of big business. Yet with style must also come substance. It is no longer acceptable to be about profit alone. Companies are expected to contribute to the world in ways that make their customers’ lives better. Consumers are demanding that business be done on their terms. It should come as no surprise, then, that human values – transparency, respect, conscientiousness, kindness, trust, generosity and the like – are the keys to engaging with customers in this brave new world of business. So how can you use this new dynamic to your advantage to grow your business? You must embrace the new rules of engagement, understanding that when you put people first, profit will follow:

1. Don’t treat customers like they’re stupid.

When Netflix bungled its attempt to change its pricing structure last year, the backlash in the online community was severe, with many customers threatening to cancel their accounts immediately. It was clear that customers viewed Netflix as a value-priced alternative to more expensive traditional paid media channels, and therefore many felt betrayed by the company’s sudden doubling of their fees. While the price increase itself wasn’t really so unjustifiable, what made it unpalatable for customers was the company’s lack of transparency in explaining the business drivers behind the rate hike – the rising operational costs of maintaining a physical DVD business and the growing licensing fees for content streaming. Instead, Netflix spun the move as giving customers a “choice,” offering the option to subscribe to a DVD-only service at its lowest price ever. Here's an excerpt from their ill-advised news release: To his credit, CEO Reed Hastings acknowledged the poor handling and chalked up the misstep to “overconfidence,” which still sounds like PR spin, but hey, we’re making progress. The lesson? If a change in product or policy may have negative consequences for your customers – even if only in perception – acknowledge them, express empathy over the inconvenience or added cost, explain the reasons if possible and then point out the benefits or offer alternative options. People understand that businesses must evolve and that profit is still part of the equation. Don’t assume that your customers are beyond reason or treat them like they’re too stupid to detect what’s really going on.

2. Over-serve your customers.

It’s always good business to go the extra mile for customers, but never more so than when trying to recover from a mistake. How you handle disappointment is what determines whether your customers write you off and tell everyone about it or trust you more and spread the good word about you. When Google decided to phase out Wave due to poor user adoption rates, they didn’t just shutter the windows and bury the technology as if it never existed. Instead, they gave users months to move their data off the service, converted Wave into an open-source project and gave the Wave community the tools to get involved:

3. Be humble and listen to your customers.

Building on the success of its breakthrough app Wunderlist, Berlin-based software firm 6Wunderkinder recently launched Wunderkit, a project collaboration and management tool designed around the social connections of today’s work environment. Wunderkit was made available in a “freemium” model, offering standard features to all users for free with additional functionality available for a small fee to power users. As the company analyzed feedback from its beta release of Wunderkit, they realized the community’s dissatisfaction with project collaboration between users – one of the platform’s central features – only being available to premium users. What follows is a fantastic example of how to demonstrate that you’ve heard your customers loud and clear, understand their feelings and are acting to resolve the issue:

The customer is king, and the king is here to stay.

Never underestimate the commitment required to engage with customers effectively in today’s marketplace. Human relationships are not managed well with rigid rules and policies but instead must be governed by human values like compromise, sensitivity and transparency. It takes much more than a Twitter account and Facebook page to win the hearts of customers. You must develop a culture that is focused on and driven by the customer through and through. Be purposeful in growing such a culture. Establish your own rules of engagement. Make sure every employee is encouraged to embrace and exhibit those values. Empower them to do whatever it takes to take care of your customers. The journey may be a bit rocky at times, but if you walk the line faithfully, you’ll earn something from your customers that can never bought with advertising dollars – trust, respect and even passion for your brand and what it stands for.

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