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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SEO the Right Way

Search engine optimization, or SEO, is a term you’ve undoubtedly been introduced to, likely by spammy email solicitations or SEO “gurus” who promise to “fix” your site so that it rockets straight to the top of search engine results.

But is this the right approach? After all, search engines don’t buy your products or services – people do. As a result, it’s much more important to optimize your website so that it provides the best possible experience for human users, not for Google.

In this article, we’ll examine why optimizing for real people – and better serving the needs of your website visitors – will ultimately yield greater success in capturing and converting new customers. We’ll start by letting you in on a little secret that those so-called SEO “specialists” don’t want you to know: by optimizing for humans, you will also be optimizing for search engines.

Why the “SEO-Only” approach fails

Before we dive into the principles and benefits of optimizing for humans, let’s first take a look at what I call the “SEO-only” approach and why it often falls short of expectations.

Consider this scenario:

You’re in the market to purchase a certain product or service, so you type some relevant keywords into your search engine of choice. You click on the top result, and as the website loads in your browser window, the next words out of your mouth are, “what the heck is this?”

The site is a confusing mess, and there is no clear indication of what the company does, what sets them apart or what you steps you should take next to progress through the site. Frustrated, you quickly click your browser’s “back” button and select a different result from the list, hoping to land on a site that will give you information that is easy to understand and seems trustworthy.

How many times has this happened to you? If you’re like me, it happens all the time.

In the example above, the website was “optimized” for search engines, and it ranked favorably for key search phrases. This is good, as it means that when users are searching for the products or services the company offers, their website has a good chance of appearing on the first page of the search results and being clicked on. However, the effect of bringing this visitor to the website was rendered null and void because the poor user experience it offered drove them away just as quickly as they landed.

In other words, from an SEO standpoint, the site is successful, as it ranks high for the right keywords and phrases. From a business standpoint, however, the site is an abject failure. It did not convert a customer. Even worse, it drove that customer away and directly to the site of a competitor. More often than not, this is what will happen if you optimize for only for search engines and not for actual people.

The complete package

The reason the SEO-only approach does not work is because it focuses only on a single piece of the picture – achieving a high ranking.

As we’ve just seen, however, capturing a lead because of strong ranking but then losing their business due to a poorly designed website ultimately yields no benefit to your bottom line.

To truly succeed, your website needs much more than just favorable search engine placement. The complete packages includes:

• Quality design
• Intuitive user experience
• Relevant, useful and timely content
• Support for a variety of devices
• Findability

Quality design and intuitive user experience

These two items often go hand-in-hand, especially when we are talking about optimizing websites for humans. The value of top-notch design is often underestimated and seen as little more than “making things looks nice,” but quality design is about so much more than that.

A quality design is certainly one that is aesthetically appealing, but it is also one that is easy to use. The simple truth is that your customers – and potential customers – do not come to your website to admire its visual design like a work of art hanging in a gallery. They come to your site to accomplish a task, whether that is to gather information, book an appointment, make a purchase, etc. They come with a specific purpose, and a quality design is one that does not distract them from that goal. Instead, it helps them fulfill it.

The scenario we described earlier of a user visiting a website that ranked high in search results only to immediately abandon the site due to a confusing user experience is a great example of why the quality of the design is critical to your site’s success. It helps ensure that the site visitors you attract are ones you can convert into actual business.

Additionally, a great user experience is one that happy visitors will share with others through word of mouth or, perhaps, via links on social networks or blogs. A quality design and user experience can help turn your satisfied customers into promoters of your website. And as we will see in a moment, inbound links to your website can be a very valuable asset.

Relevant, useful and timely content

While an elegant design and refined user experience are very important aspects of optimizing your site for humans, great content is what gives your visitors a reason to come back time after time. Providing value-add resources that are relevant, useful and timely – and that your site visitors actually want – is how you optimize your web content for humans.

You may be proud of the awards your company has won, the great things that have been written about you, your leadership team’s accomplishments or your company’s charitable outreach efforts, but that’s probably not the content your audience is looking for. Therefore, if you’re organizing your site around showcasing this type of content, you are only serving your own needs, not your visitors’.

Optimizing your web content for your visitors means putting yourself in their shoes. Ask yourself what they want to see, and then put that content front and center. All of that other stuff can still have a place on your site, but not at the expense of elevating the content your audience is actively looking for. That content must be given top priority.

You also need to make sure your content is useful and timely. If something is no longer relevant, remove it or relegate it to your archives and replace it with something that is new and interesting. Publishing a steady stream of fresh content is one of the best ways to encourage links back to your website from visitors who found that content useful.

What about inbound links?

One of the tried-and-true tactics of good search engine optimization is increasing your number of inbound links – that is, links from other sites that point to your own site.

Search engines treat these links as votes of approval for the quality and relevance of your site and factor the number of links you have established into their rankings calculation. Therefore, the more quality inbound links you have, the better your chances of climbing the rankings.

The practice of building inbound links is not an exercise in quantity over quality, however. Anyone claiming that they can get you “5,000 inbound links quickly!” is someone you should run away from – quickly! You don’t want these links, many of which come from link farms and other spammy websites. Search engines are smart enough to discern these type of no-quality links, which can actually send your ranking plummeting or, even worse, get your site blacklisted entirely.

What you want are high quality links from real people who have read your content and want to share it with others. Whether these links live on social media platforms, articles, blog posts or another site’s brochure pages, they are produced when a thinking human consumes your content and says, “Hey! That was really good. Other people will find this valuable, too. Let me link to this page.”

These links will both put your website in front of more people who are interested in the types of content you publish and help increase your search results rankings at the same time – a perfect example of how optimizing for humans simultaneously achieves the objective of optimizing for search engines.

Support for a variety of devices

Long gone are the days when the only way a user would view your website would be when sitting in front of a desktop computer with a large monitor.

Today, you can be assured that your website is being accessed via a staggering variety of devices with an array of different screen sizes. From handheld smartphones to tablets to laptop computers to the aforementioned desktops, your website must work well on a wide range of devices in order to be successful.

If you’ve ever searched for something on your phone, found a listing that looked promising and touched the link only to be presented with a website that was designed for a large screen only, you know what a painful experience that can be – that is, if you even bothered trying to use the site. Most visitors in this situation will just leave right away and look for another site that works well on their device. Again, the site in this scenario we’ve painted was optimized well for search, and it came up favorably. But yet again, the opportunity to convert was squandered due to the site’s poor user experience – in this case, the experience of using the site on a mobile device.

Once a visitor is gone, they are likely gone for good. Expecting them to come back to your site later when they are on a desktop computer where the site will perform better is wishful – and erroneous – thinking.

Optimizing for humans means making sure your website works well for them the first time they visit the site, regardless of the device they choose to do so with.

Findable websites

Yes, this is where the traditional SEO approach of creating high rankings for relevant search terms comes in.

When a searcher is looking for the products, services or information your site offers, you want that site to rank as high as possible in the search engine’s results to give it the best chance of being seen and clicked.

Achieving this high ranking is where most traditional SEO services end, however. As this article and the scenarios illustrated so far have shown, good rankings are just the start. What your site does with the traffic it captures through organic search is equally important – and this is where human optimization and all of the elements it encompasses (quality design, relevant content, device support, etc.) come into play.

Creating a “findable” website is about more than just attaining high search engine rankings, however. You want your website to be in front of someone whenever they are in need of your products or services.

This could mean a search engine result, but it could also mean a referral from a trusted friend or colleague. It could even mean a link on a social networking site or blog.

By optimizing for humans and presenting them with truly useful content within the framework of a design that is easy and enjoyable to use and that works well on any of the devices they may use to access the site, you’ll effectively encourage them to share your site with others.

This added exposure helps increase the findability of your website and your chances of having it land in front of real people who are actively looking for what you have to offer. This is the power of optimizing your website for humans.

Humans first, last and always

Optimizing your website for humans means making choices that will help them obtain the information they need from your website or perform the task they have set out to accomplish quickly, easily and without encountering any obstacles along the way.

It means putting the needs of real people first and foremost in all decisions that shape the design and content, with the understanding that by doing so, your site will be more appealing to those people, which can in turn make it more appealing to search engines, which will attract more people and links to the site, which will make it even more appealing to search engines, and so on and so forth...

It’s a cycle of success that starts with making sure that every element and every aspect of your site is carefully chosen and crafted to create an experience that is optimized for the human beings who will ultimately decide whether or not to purchase your products or services rather than just for the search engine algorithms that can only decide where your site ranks on a page.

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TOMS Roasting Co. vs. Vogue’s Kimye Cover: A Cautionary Tale in Brand Evolution

Trends come and go. New technologies emerge. Consumer tastes, preferences and habits shift. As a result, brands must evolve or die. But with change comes risk. Will your next big idea be the next big thing or just a big black eye? After all, the history of marketing is riddled with spectacular failures and flops. Sony Betamax. New Coke. The Gap retro logo redesign debacle of 2010. In just the past few weeks two major brands – TOMS and Vogue – have taken major evolutionary leaps with very disparate results. Let’s examine their stories and the valuable lessons they offer to us all in how to maximize our brands’ possibilities for growth while avoiding potentially disastrous pitfalls.

TOMS takes on coffee.

On March 11, TOMS founder and CEO Blake Mycoskie took the stage at South by Southwest to announce its latest venture: TOMS Roasting Co., an ambitious new brand offshoot that encompasses a chain of coffee bars, a wholesale roasting business and an online subscription-based coffee club. Following the “one for one” business model that TOMS first pioneered with its shoes (donating a pair of shoes to a child in need for every pair sold), their coffee likewise comes served with a plan for doing social good. In this case, the “give” (in TOMS-speak) is water. For every bag of beans and cup of joe sold, TOMS will provide clean water to a person in one of the communities in Rwanda, Malawai, Guatemala, Honduras or Peru where TOMS sources its beans. The goal is to make “one for one” giving as much of a deeply ingrained part of their customers’ daily routines as their morning coffee. Reaction to this new venture has been overwhelmingly positive, with celebrities and average Joes alike singing the company’s praises on social media. Actress Olivia Wilde (@oliviawilde) tweeted, “Caffeine with a cause? Don’t mind if I do. I’m helping @TOMS’ mission to provide clean water.” Twitter user @hopevandy said, “TOMS is now selling coffee. My life is now complete.” It’s hard to ask for a more enthusiastic endorsement than that. While only time will tell if TOMS Roasting Co. is truly a sustainable business venture, it’s certainly emerged onto the scene with a well-caffeinated jolt.

Vogue bows to pop culture.

Jennifer Lawrence. Jessica Chastain. Kate Winslet. Sandra Bullock. Michelle Obama. Kim Kardashian and Kanye West. Which of these things is not like the other? On March 21, Vogue magazine proudly unveiled the cover of its April 2014 issue, featuring none other than tabloid power-duo Kim Kardashian and Kanye West (or as they’re known in pop culture circles by their portmanteau, “Kimye"). Immediately, the backlash was swift and vehement, with fans decrying that their Fashion Bible of Record had seemingly fallen prey to the most plebeian fate of catering to the lowest common denominator. Actress Sarah Michelle Gellar tweeted, “Well…I guess I’m canceling my Vogue subscription. Who’s with me???” – a message that has since been retweeted nearly 10,000 times and favored by almost 14,000 users. Another fan responded on Facebook, proclaiming the cover “The official death of Vogue” (a comment which has since received more than 1,500 likes). And while this one cover won’t likely be the singular undoing of this century-old prestige brand, it’s certainly a glaring misstep – one that’s likely to haunt its reputation for some time to come. So how can you ensure that your next big idea follows in the successful footsteps of TOMS Roasting Co. and doesn’t result in a disaster of Kimye-sized proportions? Follow these three commandments of brand evolution:

The three commandments of brand evolution

1. To thine own self be true.

On the surface, coffee does not seem like the next logical evolutionary step for a brand best known as a shoe company. After all, no one expects Nike to step up to the plate and start roasting beans anytime soon. However, shoes are not the core of the TOMS brand. It’s their mission: one for one. And by branching out into coffee, TOMS has created an opportunity for its fans to live that mission every day, not only when they need a new pair of shoes. As Mycoskie explained during an interview with TODAY, “I’ve been saying in the office, ‘Let’s start our day by improving someone else’s.’” By contrast, according to their own mission statement, “the foundation of Vogue’s leadership and authority is the brand’s unique role as a cultural barometer for a global audience. Vogue places fashion in the context of culture and the world we live in — how we dress, live and socialize; what we eat, listen to and watch; who leads and inspires us. Vogue immerses itself in fashion, always leading readers to what will happen next. Thought-provoking, relevant and always influential, Vogue defines the culture of fashion.” Juxtaposed against that is Kim Kardashian. She became a household name as a result of an illicit tape. She’s cemented her celebrity status with a basic cable TV reality show and an omnipresent claim on the tabloid headlines. She designs a clothing line sold in Sears. Which part of that is cohesive with a brand that wants to be “a cultural barometer for a global audience”? Vogue built its name as a brand of high-end aspiration. It’s not supposed to be a clothing catalog; it’s meant to be escapist fantasy. Kim and Kanye are as mass and mainstream as it gets. And Vogue’s readers (and perhaps now former subscribers) saw right through this stunt for what it is: a desperate, grasping, Hail Mary attempt to cling to relevancy in a world where print media outlets are a dying breed.

2. Know thy tribe.

For TOMS, branching out into the coffee business is not a move without risk. After all, there’s no lack of competition in the marketplace. However, TOMS knows its tribe. Customers who buy TOMS do so for a reason: to make a difference with their dollars. With their shoes, TOMS has cultivated with a distinctive style. Their signature beachy canvas slip-ons can be spotted at 20 paces, making a fashion statement that says, “I care.” TOMS knows their customers are torch-bearers who will champion their latest cause, proudly carrying their TOMS coffee bags and cups as a beacon of consumerism with a social conscience. And again, this is where Vogue seemingly overestimated the sheepish loyalty of its tribe. Perhaps the inherent danger in being a self-proclaimed arbiter of high culture and fashion is that it’s too tempting to think you’re better than your tribe. You know best, and they’ll love whatever you give them because you tell them to do so. A word to the wise: you’re never above your tribe. If you lead them, it is by permission through hard-won trust. And that permission will be quickly revoked if that trust is betrayed. First, last and always, you must demonstrate that you exist to serve your tribe and have their best interests at heart.

3. Engage your evangelists.

For a month leading up to the big reveal, TOMS teased their fans. They plugged the upcoming announcement. They solicited guesses from their followers about what the new product would be and publicly promoted those who participated. They challenged their customers to take the cleverly hashtagged “#onedecision pledge” to “change one decision that will help change a life.” In doing so, TOMS literally created an appetite for their coffee. Their customers felt a sense of ownership over the new product line before they even knew what it was, and as a result, came locked and loaded with a sense of investment in its success. Of course, this approach only succeeded because they also delivered on the anticipation with a truly great product that follows commandments #1 and 2 above. After all, publicity in the absence of authenticity is just a recipe for disaster, right Vogue?

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