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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Mastering Marketing Momentum: Lessons Learned From Five of the Internet's Most Sharable Slices

More than “likes” or even views, shares can benefit your business by extending the reach of your brand. In other words, shares are the key to exponentially increasing your exposure to new audiences – and ultimately garnering even more likes, views and shares. Here’s a quick look at five recent “sharability” success stories and the lesson you can apply to boost the effectiveness of your own marketing campaigns.

1. Samsung Galaxy S III phone bump bests Apple.

Rather than attempt to compete with the Apple "universe of cachet," Samsung wisely zeroed in on one simple, cool thing that the iPhone couldn't do – as shown in their "Next Big Thing Is Here" campaign. And they framed that moment with a context (a loooong line at your local Apple store) that poked fun at Apple's legion of superfans while emphasizing what they might be missing out on. The resulting viral phenomenon generated more views on YouTube (over 17 million in total) than than all of Apple's 2012 ads combined – and more importantly, pushed the Galaxy S III to overtake the iPhone in worldwide sales in the third quarter of 2012, shortly following the release of the commercial. As selling points go, the "phone bump" might not stand on its own for long. But a well-designed product with other strong features (such as leading 4g technology and a larger screen) allowed this clever presentation to capitalize on its momentum and translate buzz into sales. The clip hit home with a huge audience that was beginning to show some brand fatigue with Apple – and Apple’s well-known, easily-caricatured tribe of brand evangelists. The takeaway: In today’s fast-paced world of business, timing is everything. Always keep your radar up for opportunities – whether that’s exploiting cracks in the competitor’s armor or seizing upon the chance to bring something new to the marketplace – and strike quickly (and creatively).

2. "Man of Steel" trailers take flight.

The last Superman movie, 2006's super-sincere Superman Returns, while reasonably successful, didn't energize the comic-book pioneer's enormous fanbase. Instead, the collective reaction seemed to land somewhere between "not bad" and "not great." Which just didn't cut it. A sequel never materialized in large part because there wasn’t a rabid demand for it. The intervening years have been witness to the huge success of superhero franchises like Iron Man, The Avengers and of course Batman. Much of the flaky "comic-book-ness" of earlier films has given way in the new millennium to earnest, darker, more realistic-looking efforts that hit home with an audience that values cool over camp. This time around Superman, first and mightiest of all costumed crusaders, needed to lose the golly-gee and make with the internal conflict and superpowers. And this set of trailers comes through – in speeding bullet fashion.

The trailers carry an angsty theme, to be sure. But the money moment is when our hero puts his fists on the ground and rockets into the stratosphere. It's a fantastic-looking flight that promises a movie filled not only with its share of 21st-century motivations but special effects that are truly...super. The first trailer drew more than 3 million views – and now, as the movie’s release date nears, the third trailer (also containing the definitive flight sequence), driven by thousands of Facebook shares and retweets, has passed 21 million views. The takeaway: It’s critical to be in tune with your tribe. Motivating someone to choose to share your content over all of the other stuff that comes their way in any given day requires you to give them something that resonates deeply with them on an emotional level, whether that emotion is humor, empathy, excitement, anger or any other feeling in the pantheon of the human condition. You can’t strike that chord unless you are truly one with your audience.

3. Lowes’ #lowesfixinsix vine series helps in seconds.

Lowes’ smart, useful “Fix in Six” series, utilizing the six-second video sharing app Vine, is among the first – and best – marketing efforts on the new platform, which Twitter recently purchased and is rapidly integrating into its text-and links-based model. By its nature, Vine’s six-second time limit forces any application for marketing to be all hook and no sinker. Lowes wisely utilizes the app to serve up content that is every bit as helpful as it is brief. And the fact that it’s all happening on Twitter – the second largest social channel on the Internet after Facebook – means that the audience is potentially huge for marketers who get it right. The takeaway: In a new marketing world where trust – and by extension trustworthy content – is king, achieving the perfect marriage of message and medium is paramount. Whether Vine, Twitter, Instagram or Pinterest is your weapon of choice, know it well and use it wisely.

4. Old Spice’s "I'm On A Horse" rides a viral wave.

Sure, the whole commercial is hilarious – from the shower scene to the handful of diamonds and all the accompanying dialog. In the rapid pace of online culture, it's already secured its place as an Internet classic. It's also a great example of traditional media creating synergy with online channels, as millions of people flocked from TV to the Web to watch this clip again and again. But it all comes back to the last bit – that second of time when the camera pulls back as the actor proclaims, "I'm on a horse." As a closing punchline, this moment had its work cut out for it. But the "best surprise yet" reveal managed to easily top everything that came before. And just like that the clip is over, motivating many to click the replay button. And the embed button, and the retweet button, and the share button, thereby spreading like wildfire among social networks and personal blogs and resulting in more than 45 million views. The takeaway: Granted, there’s no magic formula that guarantees that your next clip will go viral. However, what is guaranteed is that playing it safe is no way to achieve that “sharability” factor you seek. Go out on a creative limb. Sure, it’s scary out there, but if your grandpa’s aftershave brand can push the envelope with the “Man Your Man Could Smell Like,” you can, too.

5. The Oatmeal’s odd but awesome ode to Nikola Tesla.

The Oatmeal, created by Matthew Inman, is one of the most popular comics on the Internet, garnering more than 4 million unique visitors per month and generating more than half a million dollars in income annually. By turns acerbic and sentimental, the strip relies as much on Inman's writing as his simple illustration style. One of The Oatmeal's most-shared installments – and a defining moment that earned him coverage in media giants like Time magazine and Wired – is a rambling rumination on the genius of 19th-century inventor, Nikola Tesla. Almost entirely a written piece, this selection stands as an example of the mysterious, unquantifiable attributes of what sometimes constitutes "sharability." The subject is obscure to most of the population. The piece is almost entirely text and could simply be labeled a humorous essay were it not interspersed with illustrations like this: Yet because of Inman's built-in audience, his genuine passion for Tesla's lifetime of innovation and the media attention given to his subsequent Indiegogo campaign to purchase and renovate Tesla's old lab and turn it into a museum, this particular strip garnered more than 38,000 retweets and 18,000 Google+ recommendations. And the campaign raised $2.1 million in nine days. No doubt Tesla, an erratic genius who studied all aspects of electricity and invented radar and alternating current among other things, would have appreciated Inman's success at capturing Internet lightning in a bottle. The takeaway: Achieving a high “sharability” factor doesn’t require playing to the lowest common denominator. Sometimes going narrow and focusing on creating something that will catch fire within your specific niche can be a powerful strategy.

Now it’s your turn.

“Sharability” isn't necessarily about appealing to a wide audience, although several of the above pieces do that. It's about creating a deep impression with a passionate audience – and motivating that audience to spread the word. A flash of anticipation, a sense of urgency, a helpful tip or a genuine belly-laugh can all create that fundamental desire to let others in on the good stuff. So now it’s your turn. Go forth and create good stuff.

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More Than Meets the Eye: Engaging Website Visitors with a Sensory-Rich Experience

We experience the world through our five senses – sight, sound, touch, smell and taste. The more of our senses that an experience engages, the richer and more memorable that experience is likely to be. Visit a nice restaurant, and you’ll see how that establishment works deliberately to engage all five of your senses. The food will, of course, entice your senses of taste and smell, but its presentation on the plate will also play to your sense of sight – as will the lighting and décor. Consider as well the music being played and the feeling of the fabrics and textures on your chair and table: what kind of sensory response do these things elicit? All of these elements work together in synchronicity to define your experience at this restaurant. When it comes to website design, we have traditionally focused our attention on only one of the senses – sight. While sound comes into play on occasion, it is the sense of sight that we tend to think about first and foremost, as websites have long been considered a visual medium, similar to printed content like books, magazine or newspapers. However, one of the most powerful aspects of the Web is the fact that we can, indeed, engage more of the senses than we can with a paper document. With the benefit of today’s technologies and looking ahead to what the future may hold, we see that we can begin creating experiences that stimulate multiple senses to immerse visitors more deeply in our sites, thereby creating more lasting, memorable impressions. Let’s take a look at how we can use our websites to create sensory-rich experiences and how recent advancements in technology are unleashing new possibilities for how we can engage with our users through the Web.

Sight

Let’s start with the primary sense that has long been associated with websites – sight. Yes, the look of a website is important, and its design is meant to captivate a visitor’s sense of sight. But exactly how we use the tools of visual design leaves a lot of room for creative experimentation and variety. Many sites today employ movement and animation in their designs, whether it’s a rotating carousel of images on the home page, buttons that change color or size when a user hovers over them or embedded video. Amazon’s recently announced Fire phone takes the way that a screen can engage our sense of sight to the next level with a feature called “Dynamic Perspective.” This feature allows users to interface with the content on the screen by tilting the phone in different directions. A simple move of the wrist allows access to shortcuts, opens navigation menus or scrolls the page. This technology has the potential to immerse users more deeply into digital environments with a unique perspective that allows them to look under, behind or around elements on the screen. Currently, these perspective features are being utilized as part of the phone’s native operating system and by a few select apps, but how long before other devices introduce similar features and web designs begin creating pages that can take advantage of different perspectives and dimensions? If movement and animation can attract a user’s attention and engage them through their sense of sight, just think about what this dynamic perspective may be able to bring us in the future.

Sound

Today, the most common way that websites engage a visitor’s sense of sound is through video content. The ability to involve multiple senses in a single experience is a powerful thing, and video content is a perfect example of this principal in practice. By combining visual and audio, video content can accomplish important objectives on a website, whether that’s explaining a complex concept or showcasing product features, While videos are a great example of how sound can be used effectively to enhance the user’s experience, there’s also a dark side to sound on the Web, which, if used improperly, can undermine your site’s success. Just as in the restaurant example we cited previously, background music or sound on a website can help to create atmosphere and mood, but if that sound is too loud, inappropriate or obnoxious, the tone it sets will be a very negative one. Soundtracks on websites, a feature that was popular years ago when many companies wanted immersive Flash-based sites, often backfire. Visitors who may be listening to music as they surf the Web, or those who do not want a website to suddenly begin blaring music at them (perhaps because they are at work or in some other environment where being surprised by audio will be an unwelcome experience) are likely to be annoyed if they get audio content that they did not want or need. Unlike the audio associated with a video that helps engage the user, audio added to create “atmosphere” is rarely used effectively, and you should be very cautious if you decide to go this route. For all audio content on your site, whether it’s part of a video or some kind of music or background sounds, be sure to allow visitors to initiate that audio on their own, and do not surprise them with it. The shock of their sense of sound being engaged unexpectedly is what you want to avoid!

Touch

Touchscreens have been available for many years now, but until the release of the iPod and iPhone, they were not widely used in consumer devices. Today, touchscreens are everywhere. Not only do we all carry around touch-driven smartphones and tablets, but touchscreens are now readily available for laptops and even desktop computers, too. With the rise in the adoption of touchscreens comes the ability to engage our visitors’ sense of touch, allowing them to interface with our site in a more physical way as opposed to only through mouse clicks. This ability to touch our sites allows us to connect with our audience in a literal sense. While most sites or applications currently focus on gestures and movements to scroll pages or access features and content, there are also organizations working on tactile touchscreens that can make interfacing with screens a completely different experience. Looking again at the new Amazon Fire phone and their Dynamic Perspective feature, I can only imagine how powerful an experience we could create by combining that technology with actual tactile sensations on the screen as people interface with our content. Talk about being pulled into a digital environment!

Smell

You wouldn’t think that the sense of smell could possibly come into play on a website, but emerging technologies hint that this may soon become reality. Harvard scientists recently transferred a scent from Paris to New York using an iPhone app (the smell they sent was “champagne and passion fruit macaroon” – yum!). They did this using a platform called the oPhone, a new technology from a company that is “working to bring olfactory wonder to mobile messaging.” Yes, they can actually send smells. The future is here. While this particular technology, which includes more than 3,000 scents, requires the use of specific oPhone hardware, the fact that innovators are actively advancing the possibilities for integrating the sense of smell into the digital world prompts us to think about the kind of fully immersive sensory experiences that might lie just over the horizon. For example, what if a restaurant could transmit the scents of their food as you peruse their website’s menu page. Or what if you were shopping for scented candles online, and you could actually smell each product just as if you were standing in a brick-and-mortar retail store? What if you could take a video tour of a bakery, see the products as they’re being made, hear about how they’re created and smell the delicious aromas of cakes and cookies baking in the oven – engaging sight, sound and smell all at once. Sound unbelievable? It may not be as far off as you think.

Taste

What about the sense of taste? Will we one day be able to transmit tastes through our websites? It sounds crazy, but then again, the ability to project a smell online seems equally implausible until you hear the story of the oPhone. Who knows, maybe one day soon we will not only be able to send the aroma of a freshly baked cookie but also allow customers to sample a taste of that cookie as well. Again, it sounds incredible, but almost all technological advancements seem like wishful thinking until someone figures out how to make it happen.

Looking ahead

Who knows what the future holds, but I for one am excited to see how we will be able to expand our ability to engage our website visitors’ senses to create more powerful – and certainly more memorable – user experiences.

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