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.

---

Jacob Gube: Simplifying the Formula for Success

The secret to the success of Six Revisions is, in fact, not a secret at all. They have a singular purpose – providing “Useful Information for Web Developers & Designers” – and they serve it relentlessly. This straightforward, no-frills approach with an emphasis on quality, comprehensiveness and usefulness is exactly what drives the popularity of Six Revisions. The site has cemented its reputation among the development and design community for publishing consistently exceptional content written by talented professionals who not only practice but have a true passion for their craft. Recently Fame Foundry had the opportunity to talk with Jacob Gube, Six Revisions’ founder and chief editor, about what it takes to build a community around content, what he’s learned along the way and what lies ahead for the Web and web development. FAME FOUNDRY: Please tell us a bit about your professional background. How did you get your start as a web developer? JACOB GUBE: I got started as a web developer by doing freelance graphic design work. It was something that just fell into my lap. Companies that I did design work for frequently also needed a website, and they’d often ask me, “Do you know someone who can get a website up for us?” Not wanting to miss out on an opportunity, I’d say, “I’ll give it a shot!” And that’s how I got my start. FAME FOUNDRY: What was your first big web development project? JACOB GUBE: In terms of scope, the first big web development project I had was for a company called Eclipse Window Tinting. They offered car window-tinting services and wanted a Web presence as a way to drive traffic to their store. The site had a MySQL database for providing estimates based on car make and model, year and window tint type with a simple web app that calculated the price. It also featured an image gallery of cars they’d tinted using the original Lightbox script to open large-scale images inside a modal window after clicking on its thumbnail, which was still pretty fresh and new at the time. FAME FOUNDRY: What do you love about web development? Is there anything about it that you don’t enjoy? JACOB GUBE: I love the idea of being able to reach people who have an Internet connection with the products that we create. It doesn’t matter whether they’re just next door or thousands of miles away, they will still be able to interface and use the things we make. I can’t think of one thing that I don’t enjoy about web development. Maybe supporting old browsers like IE6, which can be frustrating at times. FAME FOUNDRY: How did Six Revisions come into existence? JACOB GUBE: It came into existence on a whim. I was just coming off a failed start-up for a blog that would discuss news and reviews of technology gadgets – sort of like Engadget. It failed because we didn’t really have a passion for the subject, so producing content was difficult. That experience taught me one of the biggest lessons I’ve learned about business: in order to be a successful entrepreneur, you have to believe in and have passion for your product. I started Six Revisions a few weeks after that experience. I just woke up one day itching to start a blog. I asked myself, “What am I really good at? What can I write about and never be bored of?” By the end of that day, I had a site about web development and design up and running, a domain name secured and my first post published. FAME FOUNDRY: What was your goal when you started out? Did you aim for this level of popularity, or did it begin as more of an outlet for your personal interests? JACOB GUBE: Six Revisions was never about popularity, subscribership, page views or profit margins. It was a personal side project – an outlet for me to share the things I learned while working as a professional web developer. I didn’t expect people would even read the site, but I guess they liked what I had to say and kept coming back. FAME FOUNDRY: What is the origin of the name? JACOB GUBE: In graphic design, you usually have rounds of revision after you produce a design for a client, so that’s where “Revisions” came from. Web developers and designers often have to go through these revision cycles as well. The number “Six” is arbitrary; it just sounded good to me at the time. I didn’t spend too much time picking out a name. I wanted a site up. FAME FOUNDRY: What were some of the influences that helped you shape the site? JACOB GUBE: I’d say, of course, the only real design blog out at the time, which was very popular then and still continues to be today, Smashing Magazine. My earlier work, though, was influenced greatly by Samuel Ryan’s Wake Up Later as well as Lifehacker. FAME FOUNDRY: How did you know that Six Revisions was going to be big? JACOB GUBE: I didn’t know Six Revisions was going to be big. I hadn’t anticipated for the growth, and I was ill-prepared. In the beginning, I had to move web servers five times in a span of maybe three months because the demand kept increasing, and no host could withstand the type of traffic the site was getting. That’s why my newest web start-up, Design Instruct, had a much longer planning phase and better infrastructure that scales as the demand goes up. Design Instruct is the fruit of my two years of experience with Six Revisions. Couple that with an amazing business partner, my brother Isaac Gube, and we’ve witnessed growth much faster than Six Revisions. FAME FOUNDRY: Was there any one moment or event that you attribute as your “big break”? JACOB GUBE: Our big break was being featured on Digg for the first time. That took our traffic and subscribership from basically zero to a very sizable amount. If I were to pick one single catalyst that took Six Revisions from a hobby to a company, it’d be the Digg community. You can see how much I value Digg by looking at the layout of each post: the Digg button is the first thing you see on an article. FAME FOUNDRY: How long did you wait for that first break? JACOB GUBE:: I’d say I had to wait maybe one or two months. FAME FOUNDRY: Did you ever get impatient or doubt your chances of success in the process? JACOB GUBE: Here’s the thing: I never really had any goals or milestones that I needed to meet. I don’t think I have them now. To me, when you build a product, all you have to do is work hard on it and let your passion show, and the rest will take care of itself. I didn’t get impatient or doubt my chances because I had no aspirations to be successful. FAME FOUNDRY: You’ve said that you prefer to let things grow organically in order to allow for creativity and flexibility. How has this played out over the history of Six Revisions? JACOB GUBE: Letting things grow on their own has worked out really well for me. When you have your five-year goal-setting, your meetings about meetings, your team-building exercises and your drawn-out private beta testing, you’re wasting the time that you could be spending on making your product better. To me, building a website or web app is simple: You do it. Your users tell you what you need to work on, and you do that. This mentality has played out very well with both Six Revisions and Design Instruct because when you start with a blank slate, you let your users shape your website. Any other development philosophy besides that is guesswork. FAME FOUNDRY: What happens behind the scenes at Six Revisions? What is a typical day for you? JACOB GUBE: I dedicate most of my time to the readers and the authors, both of which are what make the website what it is. The rest of the time is spent on making sure the site is running properly. A typical day for me begins early in the morning because that’s when I’m most productive. I do most of the creative work in the morning because I’m a morning person. Little time is spent on doing anything else: I’ll quickly scan my inbox to see if there are any pressing e-mails that need my attention and respond to those. Usually, e-mails that I respond to in the morning are from authors or readers. When my productivity and creativity are waning in the late afternoon, I do the administrative work – answering e-mails that I missed in the morning, accounting, site maintenance – all the tasks that you’d consider “boring.” FAME FOUNDRY: What are some of the challenges you see in running and growing an online magazine? JACOB GUBE: The biggest challenge will always be the lack of time. There are many things you need to do but very little time to do them. You need to move quickly and make speedy decisions or else you miss your window of opportunity. FAME FOUNDRY: Six Revisions has earned a reputation for great content. Where do you draw your inspiration from, and how do you channel that inspiration into content that is in demand among the design and development community? JACOB GUBE: I get a lot of inspiration from just making websites. Many of the posts I write were inspired directly by something I was working on that day. For example, my post about clean and simple websites was inspired by working on the design for Design Instruct. I feel that I have a good grasp on what designers and developers like because I am one, so I’m able to channel that inspiration into content that people enjoy reading. FAME FOUNDRY: Is good content hard to come by? JACOB GUBE: Good content is very hard to come by, especially in the field of web design and development. That’s because being a great web developer or designer and being a great writer don’t often come in one package. So when you find people who can do both, you try and hold onto them. FAME FOUNDRY: What do you look for in good content for Six Revisions? JACOB GUBE: My definition of good content is that which is well-articulated, provides solid arguments and is written by someone who’s actually done the thing they’re talking about. When you’re inexperienced about the subject you’re writing about, it’ll show. You can spend a lot of time researching a subject, but unless you’ve actually done it, you won’t be able to write about it as well as someone who has. FAME FOUNDRY: For those aspiring to use great content to create a community around their brand, what advice would you give? JACOB GUBE: You have to start publishing great content in order to get more great content. It’s the only way you’ll attract talented writers. When they see that you’re publishing great stuff, they will want to be a part of that. FAME FOUNDRY: You’re well-known for your affinity for minimalism – a philosophy that is as apparent in your site as in your personal workspace. Do you feel this helps you from an organizational standpoint, a creative standpoint or both? JACOB GUBE: Minimalism helps me in many aspects of my work and personal life. To me, a cluttered surrounding clouds your mind. You may not know it, but you might be feeling stressed or stifled because there’s so much stuff around you. When you live a life based not on how much stuff you have, but rather on how little stuff you have, you’ll find that you have more time to spend on things that really matter. From an organizational standpoint, you don’t have a lot of stuff to organize to start with, so it’s easy to keep things in check. From a creative perspective, when you’re comfortable and you’re not bogged down by “stuff” in your environment, you can output some pretty cool work. FAME FOUNDRY: Are you still active in web development, or is your time completely dedicated to the magazine? JACOB GUBE: I’m very active in web development. I wouldn’t be able to write about it effectively unless I was. FAME FOUNDRY: How do you see the Web evolving in the next few years? JACOB GUBE: In the next few years, I’m willing to wager that you’ll see simpler and cleaner designs. I think everyone’s had enough of the loud and bright-colored, 20-large-buttons-in-your-face web designs, so there will be a shift towards simplicity, cleanliness, and more thought-out user interfaces. FAME FOUNDRY: How do you see web development evolving with mobile platforms and the iPad? JACOB GUBE: I think the mobile web development industry is beginning to pick up. More and more web developers are thinking about engineering stuff for portability and mobility. That’s partly why I think simplicity will win in the next few years. Because of the current limitations of infrastructures, mobile designs need to be lightweight. They also need to be simple because the interface is limited by the controls and screen size. FAME FOUNDRY: What are your future plans for Six Revisions? JACOB GUBE: My only plan for Six Revisions is to continue the tradition of publishing great content written by great people. That’s my one and only recipe for growth and success. As the founder and chief editor of Six Revisions, co-founder and technical editor of Design Instruct and author of MooTools 1.2 Beginner’s Guide, Jacob Gube provides both inspiration and practical instruction to thousands of peers in the web design and development community. He’s also an active web developer and designer himself specializing in front-end and PHP development – work that fuels the success of his blogs as the source of content enriched by his depth of experience. Follow Jacob on Twitter @sixrevisions.

---

Mythbusters: Website Edition

As a web designer, I routinely speak with business owners and marketing managers who are in the midst of a website redesign project for their company. During these conversations, I am always amazed by the myths about user experience and interface design that they mistakenly cling to. Many of these misconceptions are the by-product of previous website projects – leftover relics from an Internet of old. Others are more baffling, as their tenets are not now and never were true. So in the interest of championing the best practices and principles of modern website design, we’re channeling our inner myth busters and blowing the lid off five of these most persistent myths (dramatic explosions not included):

Myth #1: Visitors need/want instructions on how to use your site.

The Internet is no longer a new and unfamiliar medium, yet many companies still populate their websites with content that seems targeted to someone who has never actually navigated the Web before. When you include instructions for visitors about how to use to your website, you are adding a lot of extra words, which in most cases only serve to weigh down your pages with unnecessary visual clutter. In fact, the goal of any good design is to create an interface that is so intuitive that no instruction or explanation is necessary to help visitors move from one page to the next and complete routine processes such as making a purchase or signing up for an account. As a result, if you feel instructions are necessary, that inclination is a major red flag for serious design flaws that must be addressed in order to provide a quality experience for your user. To be fair, there are certainly instances where some level of guidance is needed. Complex interactions or applications that are truly unlike anything that has come before on the Web will require some level of training for your users, but the vast majority of websites do not fall into this category. If your site is, well, just a website (and there’s nothing wrong with that!), forego the instructions and have faith that your users are savvy enough to know and understand the well-established conventions of using the Internet.

Myth #2: These days, everyone has a high bandwidth connection.

Over the last few years, the average size of a webpage has doubled, largely due to our profuse use of images. Current design trends that call for giant, page-spanning photographs combined with the drive to deliver high-resolution images for retina displays mean that the file size of the images we are using continues to climb. Many people argue that this is acceptable because, as the size of our webpages grow, so does the bandwidth speed of our Internet connections. But is this really the case? It is true that the number of people with access to high bandwidth connections continues to increase, but the belief that all visitors have the benefit of a lightning-fast connection is nothing more than wishful thinking. There are still many areas of the country and the world that are shackled to the type of slower connections that are only a distant memory for many of us. Also, keep in mind as well that mobile visitors may be operating on a network that is either unreliable or has data download limits. In both of these instances, a website that is bloated with large content (i.e., giant videos, unoptimized images, etc.) will pose a problem. Ensuring that your website is optimized for performance is as important today as it has ever been, regardless of how fast connection speeds may be. After all, no one has ever said, “Wow, this website loaded TOO quickly for me!” Better performance and faster downloads improve the quality of experience for all users.

Myth #3: There may be some users visiting your site on a mobile device, but not that many.

Years ago – when the iPhone was still a novelty and everyone and their 12-year-old brother didn’t walk around with a smartphone in their pocket – this may have been the case. But today, visitors are accessing your website on a wide variety of devices with a range of different screen sizes. Examining the hundreds of websites that we manage reveals that an average of 30 percent of all traffic to those sites comes from mobile devices of one kind or another, and for some, it’s as high as 50 percent or more. This is consistent with the forecasts of industry analysts, who predict that by 2015 – that’s next year, folks! – the majority of all Web traffic will come from mobile devices. Additionally, not only are visitors accessing your site on mobile devices, but the same visitor is likely using multiple devices to access your content. We call this the “muti-device user”. As we covered previously in our article “Website Design for a Multi-Device World”: The multi-device world is populated by multi-device users. While a staggering variety of devices are, indeed, being used to access web content today, it’s also important to remember that the same user is often using multiple different devices to access your website – and they expect that site to work well regardless of which device they happen to be using at the time. Gone are the days of “mobile users” coming to your site only to locate your phone number or directions to your office. Today’s mobile users – and multi-device users – expect convenient, on-demand access to the same content that they can find on the desktop version of the site. Clinging to an outdated belief that “no one has a reason to visit my website on a mobile device” will quickly translate to “no one has a reason at all to visit my website at all.” Read more: Website Design for a Multi-Device World

Myth #4: You should open off-site links in a new tab/window.

This is the most common myth that I hear from clients, who insist that all links that lead to another site must open in a new tab or window. This request stems from a belief that if a visitor leaves your website to look at content somewhere else on the Web, they will never find their way back. By opening that link into a new tab, your website remains open in the user’s browser for them to return to at any time. Or at least, that’s how it works in theory. Unfortunately, I have seen this practice backfire on a number of occasions. Why would this be the case? Think of the Web as a linear experience. You move from one page to another and another. You can travel seamlessly to and from any point along  this timeline by using the browser’s back and forward buttons. But when you open a link in a new tab, you start a new timeline for the user. Having observed many website users over the years, I can tell you that the back button is a feature that they are intimately familiar with. If that user clicks a link and visits a new page, and they then want to return to your site, they will intuitively click the back button until they get there. However, if you’ve opened the off-site link in a new tab or window, then the back button eventually leads to a dead-end for that visitor. Your site, which they want to return to, is not part of their current timeline because it is open in a completely separate tab. Of course, all the user needs to do is close the current tab, and your site will be in front of them again, but I’ve seen many visitors who are unaware of or confused by this. Instead, when the linear experience of the back button doesn’t bring them to your site as they expected, they instead type your website’s URL into the browser’s address bar, thinking that something went wrong along the way. They now have two instances of your website open, so in your efforts to “help” them easily get back to your site, you’ve actually confused the user experience. Does this mean you should never open links in a new tab or window? No, it doesn’t. For example, it’s a good practice to open PDF files in a new tab because these documents feel like they are separate from the linear experience of browsing a site. Additionally, opening links in new tabs is not “wrong,” per se. It is an acceptable solution, but if you choose to use that approach, do so for a reason other than the mistaken belief that if visitors leave your site, they will never find their way back. The linear experience of web browsing – and using the back button to return to a webpage – is a well-understood convention, so don’t be afraid to let your visitors explore in the manner that is most natural to them.

Myth #5: Visitors absolutely will/absolutely will not complete a form.

The final myth we will debunk concerns web forms. Interestingly, I hear competing opinions from clients regarding forms on their websites. Some believe that visitors will not fill out a form no matter what. Others think that their users will gladly complete a lengthy questionnaire for almost no reason at all. As usual, the truth lies somewhere in the middle of these two extremes. Gathering information from website visitors is a valuable exercise. It allows you to understand who is coming to your site so you can follow up with them, engage with them and hopefully convert them into paying customers for your business. Just asking for visitor’s information is not enough, however. Very few people will be willing to complete a form unless they have a clear understanding of what they will receive in return – and what they receive needs to be of greater value to them than receiving more marketing from you. This value can come any number of different ways, such as receiving a free whitepaper or application download or registering for an event or webinar. In each of these cases, there is a legitimate reason for your site visitors to complete a form that gives you their personal information. If, however, your form simply says, “Sign up for updates!” without any further information about what those updates entail, how frequent they will be delivered or what potential value they hold, then there is a slim chance anyone will be inclined to complete that form. Creating a valuable offer is step one. Step two is the design of the form itself. Asking for too much information will be a roadblock for many visitors, who will either perceive a form with a large number of fields as being too cumbersome or too intrusive to complete, so the best course of action is to ask for only the information you need. If you never intend to call someone, then don’t ask for their phone number because that’s one less obstacle you’ll have to overcome. The more concise and easy your form is to complete, the more likely your visitors will do so. Website visitors will fill in forms, as long as you make those forms easy to complete and provide value to them in exchange for sharing their information with you.

R.I.P. myths and misconceptions

The Web and the behavior of its users are constantly evolving. Since the last time you engaged in a website redesign project, there have undoubtedly been a number of shifts in trends and tendencies, and what you learned through that experience even just two or three years ago may not be applicable today. Because of this ever-changing landscape, the importance of working with web development firm that keeps pace with these changes and the best practices of modern website design cannot be understated. Such a partnership will ensure that the decisions driving the the design of your site are relevant to today’s Web and are not relics of a time gone by.

---