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.

From Panda to Penguin: How to Practice Safe SEO Today

Anyone who has had some exposure to the internet knows the importance of Google. After all, as the world's single most important search engine in terms of user base and popularity, Google wields considerable power to make (or break) any website.

Time and again, Google makes changes to its SEO algorithm, in order to improve its search functionality and usability. Thus, while earlier it was an attack on paid links, last year Google came up with the Panda update that effectively tackled websites which were mere content scrapers or low-level affiliates.

While the impact and implications of Google Panda have been discussed all across the internet multiple times, certain newer changes in SEO algorithm are still relatively lesser known. In this article, we focus on the newest change – the Over Optimization Penalty, and how to tackle it.

What is it about?

To quote Google's Matt Cutts, certain websites are often built keeping search engines in mind, and thus many SEO folks have sites that are “over optimized”, or in other words, “overly SEO-ed”. In short, the axis mundi of Over Optimization Penalty is to target and punish websites that focus more on SEO and less on content quality.

Yes, that's right. With search engines controlling a good deal of incoming traffic for almost any website, many site owners publish content keeping Google and Bing in mind, not their website visitors. In other words, SEO becomes the King, while content takes back-seat. It is this very practice that Google's recent Over Optimization Penalty patch aims to hit at. The motive is to “level the playing field” and crawl websites that offer quality content, not quality SEO.

How does it affect me?

Before going any further, let me present you with (my version of) a handy guide to Search Engine Optimization.

At the most basic level, SEO deals with analysis of data related to your website, so that you can assess what interests your website's visitors the most, what makes them visit your site, which topics are popular (and which aren't), and so on. Once you have such data, you can optimize or tweak your website to provide your visitors with information that they prefer, and avoid information that they don't like.

For instance, say, you are running a website about coffee. Now, you notice that most visitors to your website come by searching for terms such as “how to make awesome coffee”, and not “utensils for coffee”. Thus, you can focus more on preparation guides for coffee, rather than offering advice about purchasing coffee mugs. Similarly, you realize that your visitors are keen on knowing about the production of coffee all across the globe, and you can further provide such informational articles.

This is where over optimization comes into play. In your bid to get more and more visitors, instead of simply providing awesome coffee-related articles, you may also resort to repeatedly offer technically similar or 'SEO-friendly' articles about the history of caffeine, which may or may not be totally useful.

Good SEO is about content, proper coding standards and information hierarchy, and definitely not just about extra keywords.

So what should I do?

Avoid excessive usage of keywords.

The crux of the Over Optimization Penalty is to promote websites that do not play a handicap match by relying on keywords more than the actual content itself. Of course, keywords still matter – but you should not stuff them or fall prey to the 'keyword density' gimmick.

Avoid unnecessary "networked" links.

Let's say you have 10 websites, and you've created a 'network' out of them. Now, if only you can cross link within this network of websites, your traffic will increase – after all, users visiting the first site will be like, “Hey there's more to this network. I gotta visit 'em all!” Right? Sadly, not anymore. Google has been going tough on websites that are abusing interlinking.

Avoid backlinks from uncanny locations.

In other words, avoid link spam, period.

Avoid spending days and nights to 'comprehend the algorithm'.

Do not create content that satisfies Google's search algorithm – instead, spend time creating content which meets the expectations of your users. Google will automatically follow suit and take notice of your hard work. Surely, many SEO experts can claim to give you instant traffic boost and content promotion – but rarely do such tricks work in the long run.

Update your old posts and articles.

If your website has older articles and posts which have a good rank in terms of SEO, it is worth updating them – not necessarily a re-write, but check for broken links, outdated information, etc.

Build links the proper way.

Yes, properly employed link-building techniques can be effective in promoting your website. Certain measures such as writing guest posts and posting relevant comments on websites that are similar in genre to yours can be fruitful.

Implement a healthy on-site strategy.

It goes without saying that simple and clean code, along with validated HTML and CSS promotes better crawling of your web pages. Also, it makes sense to employ plugins and methods to make your pages load faster. Good load times almost invariably lead to better traffic. Similarly, HTML5 and responsive web design are the way to go, like it or not!

Employ social networking.

Websites such as Twitter and Facebook are ideal for viral campaigns – this is a well known fact. Further more, just in case you haven't noticed, Google is now keeping social networks in mind when assessing the importance of a website – in any search page, you can see the +1 buttons under each result, thereby allowing users to like or dislike a website in one go. Naturally, you'd not want to miss out on the social networking front.

Keep track.

Google itself offers a plethora of tools to aid you in your quest to promote your website – for instance, you can consider using Google Analytics and Google Webmaster Tools to your advantage.

Follow the golden rule of good SEO

So, what's the final word? Well, it's pretty simple, actually – Google is trying to offer search results that are clean of subpar content. Your best bet is to create content for humans, not search engines, so make sure you always write for people, not crawlers.

Jumping Into Jumo

New social media platforms seem to crop up and die out (or get bought out) with regularity in this day and age. Whereas the social media map used to consist primarily of MySpace and Facebook (and Friendster if we’re feeling generous), now there's Twitter, YouTube, LinkedIn, Tumblr and Wikipedia, just to name a few. With stories of upstarts like FriendFeed or Lala getting swallowed up by the big guns in the business, it’s a landscape that’s constantly changing.

But the great thing about this open environment is that it isn’t a zero-sum game, as Facebook’s Mark Zuckerburg put it at the Web 2.0 Summit 2010 a couple of weeks ago. As a result, while it’s a noisy scene, the best “artists” making the best “music” rise to the top and get noticed.

The newest kid on the block

Which brings us to Jumo. The latest project from Facebook co-founder Chris Hughes, Jumo is a new attempt to merge the burgeoning movement for social change with the power of social networking itself.

While social change and humanitarian efforts have existed in many formats (with varying degrees of success) on the Web, Jumo’s concept is centered upon fostering a deeper interaction with issues and causes. By focusing on the heart of what drives people to get involved in generous giving and living, Jumo is banking on helping charities and nonprofits connect with potential supporters.

The point of connection is not the “ask,” whereby a nonprofit initiates their relationship with you by requesting a donation. No, Jumo takes a few steps back to first ask, “What is it that you’re passionate about?”. From there, the site connects you with organizations that are working in related fields.

In other words, the relationship that you develop with a charity begins organically with a question of the heart, not a question of the wallet. The end result – financial support – might not be that dissimilar, but the means are profoundly different. Jumo's approach could mean the difference between creating a one-time giver and inspiring a life-long supporter who not only gives but actively recruits others to join the cause through their heartfelt passion.

Why Jumo matters

What does this mean to you as an online citizen?

The Jumo model is important because there are lessons from this approach that apply to us all. Whether you’re running a business or a charity, your interactions – both online and in-person – with your clients are what ultimately drive the machine. You might have the coolest product or the most moving cause in the world, but if you’re not taking care of your customers or donors, you won’t last long.

While on one hand, social media has made it easier to keep people at arms-length behind the safety of a computer screen, it’s also helped to remind us all of what’s important in the social realm: relationships. Without them, you’re sunk.

The nuts and bolts

So how does it all work? It’s quite simple, really.

Step one is signing up for an account, which unsurprisingly starts with a prompt to connect to your Facebook account.

Next you create your profile, with Jumo pulling in your profile picture and basic personal information from Facebook. From there, you review a list of core issues and causes, including poverty, peace and governance and human rights. Each topic leads you further down a path of discovery that ultimately ends in a list of specific organizations that are doing work in the fields that you’ve selected.

Once this process is complete, your Jumo home page will be generated. This page features an aggregated news feed from the projects that you have chosen to follow. You’ll also have a sidebar with suggested projects and issues that might interest you as well as a “Talk” column that reflects updates from all projects, issues and people with whom you’re connected.

If all of this sounds familiar, that’s because it is. The format and terminology will be second nature to anyone who’s already on Facebook and Twitter. That familiarity should be a strength for Jumo moving forward, as it makes the new environment easy to get used to.

It’s also fairly easy to add a new organization or project on Jumo; the key is that you must have a valid Employer Identification Number (EIN) as a 501(c)(3) nonprofit entity. Beyond that, it’s a simple process of plugging in basic information such as your organization's mission and links to your website.

Again, Jumo presumes that your organization has already established a Facebook Page, as it will ask for your Facebook ID number to pull a profile picture in for your new project. From there, it’s up to you to connect with individual users on Jumo, though the platform aids the process by allowing you to select the same topics of interest of as an individual, only this time the selections will help to define what your project is.

A step in the right direction

Only time will tell if Jumo will actually reach the lofty goals that its creators have set forth, but it so far it seems to be off to a promising start.

The interface is easy to navigate, but the site has been plagued by performance issues due to an overwhelming amount of traffic in its first few days of beta launch. The team is working to alleviate those problems, and hopefully, once fully launched, any minor issues will be resolved so that users can get down to the business of changing the world.