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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Bridging the Gap: How to Integrate Social Media Into Your Website

Your website is the home base for your company. It’s where you turn visitors into leads and prospects into paying customers.

Social media sites are outposts for your company. They’re where you go to find your customers and prospects and maintain an ongoing dialog with them in the places where they live online.

All too often, however, companies treat their web development and social media efforts as separate and distinct initiatives when, in fact, they should be working together seamlessly to promote the growth of your business.

Here’s how to maximize your online exposure by bridging the gap between your home base and social media outposts:

Start with the basics.

Make sure you have obvious links to every social media site where you maintain an active presence in a prominent location on your website. The header or footer is a good spot for these links because they then become a universal element of your website that every visitor will see no matter which page they might happen to land on first, last or in between.

You don’t have to use the standard logo for these social media sites, either. Instead, you can style these buttons in ways that reflect the look and feel of your own site.

Keep in mind, too, that the point of these links is to entice web visitors to “like” or follow you on these social media networks so that you can continue your conversation with them long after they’ve left your site. Therefore, it’s important that you include links only to those sites where you maintain an active presence. Don’t add a link to any site where you are not a frequent participant because there will be no incentive for that prospective customer to want to continue engaging with you on that platform.

It’s also smart to have these links open in a new tab so that you don’t risk losing your hard-earned visitor to other distractions on Facebook or Twitter.

Empower your advocates.

Today’s culture of the Web thrives on people finding great stuff and passing it along to others.

Make sure it’s easy for your customers and fans to share the stuff they like on your site with their own circles of friends and followers.

Again, use some discernment here and don’t include sharing options for every social site ever invented. Just pick a few key options like Facebook, Twitter and Google+ so that these buttons can be large enough to be easily seen.

Also, don’t plop these buttons on every page. Make sure they’re present on every product page and blog post. But what are the chances someone is really going to share your About or Contact page with the world?

Finally, pay attention to how links look when they’re shared. For example, Facebook’s API displays page titles and meta descriptions for shared links, so make sure these elements that live in the underpinnings of your site are formed strategically so that the shared content is presented in the most advantageous way for your brand.

Use social media to feed your website.

If you regularly use social media networks to keep your customers and prospects apprised of special promotions or events, you might consider plugging a Facebook Like Box or Twitter widget into your website.

However, don’t exercise this option just because it’s there and it’s trendy. Think carefully about whether the content you share on Facebook or Twitter actually pertains to and is appropriate for your average website visitor.

Also, while it’s almost always best for your blog to be an integral part of your own website, if you do maintain your blog on a third-party platform like Blogger or Tumblr, make sure you pull an RSS feed from your blog into your website so customers can discover your great content.

Get visual.

If you have a helpful how-to video or a series of photos from your latest event that you want to feature on your website, consider posting them to social sharing sites like YouTube or Flickr and embedding them in your site from there.

This approach makes your content accessible to the millions of users who search these social platforms for videos and images, making it that much easier for potential new customers to discover your website and your brand.

For example, Pink Cake Box, a gourmet cake shop located in New Jersey, reports that about 10 percent of their website traffic each month comes from Flickr, where they regularly post photos of unique cakes.

Just make sure when you post your photos or videos that you include a link back to your site in the description so users have a clear path to reach your home base.

Get social with service.

It’s standard practice to give your customers the option to contact your company via an email address or by submitting a form on your website.

However, many companies are now encouraging customers to get in touch via Twitter or Facebook as well.

There are several benefits to this approach. First, it gives the person who wants to reach you a quick, convenient way to do so. It also gives your company the opportunity to field both praise from happy customers and complaints from dissatisfied buyers in the public eye.

While you might be nervous about the idea of having complaints aired publicly, consider this: these people are going to be talking about you anyway. It’s best to give them an outlet to do so in a way that allows you to provide a positive resolution to the problem at-hand while demonstrating to the world that your company cares about your customers and is dedicated to providing the best possible experience for them.

If you go this route, just make sure that you’re prepared to monitor and reply to any communication directed at you via social media right away. If a question or complaint lingers unanswered, it will reflect poorly on your brand. Also ensure that anyone who is tasked with responding behalf of your brand is well trained in how to handle any imaginable scenario in a way that demonstrates strong values and a commitment to providing excellent customer service.

By bridging the gap between your activities on social media networks and your own website, you’ll create an even stronger promotion engine for your business that will help you capture and convert more customers.

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The Web Marketing Universe

Confusion about successful web marketing is rampant. Even for those in marketing, there's an ongoing war to maintain clarity about how the web universe works and how successful web marketing is executed today. Building an outperforming web platform is very much like building and running a retail store whose primary objective is providing a product or service.

• The store must be attractive, have a good location and be unique to attract visitors.
• The store’s layout, personnel and operations must serve the customer and make the sales process as easy as possible.
• The experience must promote the visitor to return to the store.
• The experience must transform the visitor into a customer.
• The experience must provoke visitors to tell others.
• The experience must promote customers to become repeat customers.

And while the foundational recipe for a successful website is very similar, getting there is completely different. Life happens faster online. While visitors peruse a physical store, website visitors “use” an online store. They can leave just as easily as they walked in. Their attention spans are much shorter, and their tolerance for a confusing layout or arduous pathways is low. There are no roads leading to the Internet storefront. The idea of “getting there” is completely different. The straightforward “location, location, location” mantra is replaced with a myriad of new approaches and considerations to gain the foot traffic you need to be successful online. So, from the never-ending minutia of terminology, buzzwords and techno-jargon, let’s clear the air for once and get some things straight about what makes a successful web marketing machine.

Metrics

Before anything is done, before the first photo is taken, before the first line of code is written, you must take account of what you know. In the web world, everything is in the numbers. From the unaware prospect to the loyal return customer, all possibilities and measurements must be mapped out within the sales continuum. Where do your customers come from? How much does the average customer spend with you in a year? How much is spent to gain one customer? What has your past advertising and marketing efforts yielded? Who are your repeat customers? Why do customers come back? Why do customers leave? Are you doing everything you can to measure all elements that directly and indirectly affect sales? There is much inventory and soul-searching in identifying your metrics. You must be honest about what you know and what you don’t know. You must be critical and able to grade yourself. Doing the homework here will not only guide the purpose of all your web marketing efforts, but also allows you to measure your return on investment, make adjustments and out-perform your competitors.

Utility

In the vastness of the Internet, there are two classes of websites: the digital brochure and the utility site. Most websites are the first kind––the online equivalent of a printed flyer. Yup, all the computing processors, memory, software, hardware, power and communication lines for people to read the same information that they would get from a brochure. The brochure site states its case, makes its pitch and then its done. That’s what many companies do with their brands on the Internet, and their website’s performance is a reflection of it. Your website needs to be useful, not just informative about your primary business objective. Many websites waste inordinate amounts of time and money promoting a site with no utility. Its visitors see no reason to return, and it dies right there. The precious opportunity to turn a casual visitor into a return visitor—the web version of true branding—is sadly wasted. Your website needs to find its place on the Internet. It needs to be known for something. Awareness and traffic on the web is cumulative, and all the time used to gain a visitor is wasted if the site is not worth bookmarking, sharing, remembering or revisiting. To achieve this, you must be prepared to invest in your site’s utility. You must have an offering to the public at large, without the visitor needing to be a customer. Your website needs to find its place on the Internet. It needs to be known for something.If you sell lawn fertilizer, offer a lawn care calendar for the visitor’s geographical area, e-mail alerts on care stages, free weekly lawn care tips and write a regular article. Create a place the visitor can count on, all the while promoting your brand and selling your product or service. Comparative shopping listings, mortgage amortization calculators, games, a “rare word of the day” and “your lawn care tip of the week” are all beginnings of utility for a website. If your competitors are already introducing utility in their online store fronts and developing a reputation for having a website that’s worth returning to, then you have something to worry about. Don’t wait until then. Up the ante and don’t waste another visit to your site.

Content

Many times the utility of a good website resides in the content it offers. Now this is where many websites have an identity problem. Most view their website’s static “brochure” text regarding their product or service as the website’s content. It isn’t. Content has purpose and application to the visitor beyond your primary offering. It may not apply to everyone, but it needs to be content that your audience wants to read, see, play, view, hear and interact with. Content has been and always will be king. As a result, the content maker is king. Believe it or not, writers are usually the single most important factor to the successful website core. If your website features piano playing tips in video form, then the video producer owns the role of king. Don’t regard your website as a one-time sales pitch. Invest in content and the long-term rewards will be exponential.

The idea

The challenge of utility and content represents the stage where the good idea is born. If your website doesn’t present any reason for a visitor to return, then it’s useless. Your website’s success is based on its core concept. What is it going to offer people? What is its reputation going to be? What about your content is going to make people talk about it, forward its web address, bookmark it, share it and most important, what is going to make people come back to it? This is where a good web development firm shines. The responsibility of your web development firm is to make sure the idea around your utility and content is sound and executable. Web professionals work hard to stay abreast of what the Internet landscape—and all competitors—provide. They know what people want, what’s lacking, where the opportunities are and where to drill for maximum gain.

Presentation

You’ve got your idea, you’ve found your niche, you’re creating great content––now we can talk about building a beautiful and functional website. Crafting a superstar website is its own discipline. Professionals that build memberable websites master a craft that is like no other. Once again, the Internet’s vast array of possibilities and potential are the reason so much more must be considered. Take, for example, reading a magazine. The magazine contains a catalog of content. It employs the simple interface of a table of contents, page numbers and the action of turning the pages—that’s it. In contrast, a website has multiple dimensions and depth. It does more than display your content—it’s functional. It stores content, catalogs it and queries it. It reacts. It allows for conversation and builds community. Your 24-hour Internet house is, in short, a working engine that must reflect your brand proudly, be functional and easy-to-use and run itself without you in the room. Your website is a working engine that must reflect your brand proudly, be functional and easy-to-use and run itself without you in the room. But with great power comes great responsibility—in design and function. It’s very much like building a unique, first-of-a-kind car from the ground up, combining art and precise engineering into a beautiful, functioning machine. There is a metric ton of considerations in any given website, right down to the psychology of choice. As a result, there are many amateur web designers, but very few great web builders. Still, many companies rely on traditional marketing agencies who see web development akin to the linear development of print material, television commercials or radio spots [see our article on the fall of traditional marketing companies]. In other cases, some companies employ a single individual––usually a programmer or a designer––to build a competitive website that in reality requires experts from many disciplines. Both of these extreme approaches to web building leave a trail of failed websites littered around the Internet landscape. The memorable and over-performing website requires a unique and specific combination of expertise from an array of web professionals, all working in concert on the details and all joined together on the big picture. That doesn’t mean you need teams of people working around the clock, but you will need portions of their knowledge and interactive specialties to craft it the right way the first time. In fact, the right way costs less upfront and makes your investment that much more powerful.

Traffic Building

You’ve established a good foundation with your web marketing strategy and metrics; you’ve got an online building that’s both beautiful and very useful; now the focus turns to building foot traffic. While the traffic building plan is part of the web marketing strategy, its execution is on an ongoing basis. The exact strategies and tactics for traffic building are different for each business, brand, product or service, and covering all the possibilities would be beyond the scope of this article. Effective traffic building, however, depends on one key element: the relation of a website’s utility and content to the community at large. Food for thought: In the beginning, you will start with any traffic. However, the public does reside with other websites. Those other websites have provided a platform for community. There are an endless number of online communities on everything from aardvarks to zucchini that people bookmark, remember and participate in––weekly, daily, hourly. You need to be there too. Identify those spots and begin participating in them. Be real and helpful. Promote your brand when appropriate, and promote your personality in the process. Link to some of your good content. Extend an offer outside your primary objective. Create and build a reputation. Again, there’s more to this than a simple example can convey. Simply put, there must be regular engagement with the public outside of your website. People engage with companies through the best form of advertising: word-of-mouth. The Internet just sets that on fire.

Visitor-to-Customer Conversion

The science and art of converting a visitor into a customer is unique to each web marketing plan. It begins with identifying, marking and sometimes even coding-in conversion points within the site. Conversion points can be the creation of an account, the point at which a product is sold, the submission of a contact form or the making of an appointment. The array of possible conversions are unique to the business; however, they tie directly to the bottom line. This is where the experienced web development agency brings metrics back into play. All efforts in traffic building and advertising are mapped; traffic from websites, search engines and other sources are cataloged; traffic is tracked to conversion points within the site; analysis is taken and actions to improve traffic and the rates of conversion are continuously implemented. Such complexity is beyond the expertise of traditional marketing firms or the one-man-band.

Getting Started - The Big Picture

Yes, at first glance this is a lot to take in. That’s why it’s important to interview your marketing firm to make sure they not only recognize the web marketing universe, but that can also execute on it and show results. We’re here to help. Call or write us. We promise to answer all of your questions in a straightforward manner and help you understand it all. If you’re already engaged or under contract with another firm, at least ask your firm—and yourself—the tough questions:

• What is the plan?
• Why will people come to your website?
• What will keep visitors coming back?
• What will make visitors tell others?
• What will convert visitors to customers?
• How is it performing?

And most of all: What will make people fans of your website? This is ultimately the goal of any web marketing campaign, and it's indicative of any superstar website. From local dentists to international corporate brands, anyone can reach the apex of online marketing, win more customers and gain market share for less money. Remember: fans do the marketing for you.

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