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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Five Often-Overlooked Opportunities to Build Trust with Online Shoppers

Just because the online shopping experience precludes you from cultivating personal, face-to-face relationships with your customers, it doesn’t mean that trust is absent from the equation. In fact, just the opposite is true. Because you don’t have the advantage of engaging with your customers in person, it’s critical that you examine each aspect of your e-commerce process to ensure that you are building and reinforcing trust at every step of the way. Here are five commonly overlooked opportunities to earn the trust of online shoppers:

Transparency

From the time a customer lands on your site until the time their order reaches their doorstep, transparency is key. It’s important to ensure that you address and eliminate all potential concerns upfront. Before your customers even reach checkout, they should know how quickly their order will be processed as well as the range of available shipping options and costs. Give your customers added assurance by providing delivery timetables that are as specific as possible without compromising accuracy. For example, you might guarantee that all orders placed Monday through Friday before noon eastern time will be shipped the next business day, as long as you know that you can live up to this promise without fail. This type of information is mission-critical to shoppers who are making a time-sensitive purchase such as a birthday gift or an outfit for a special occasion. If possible, after an order has been placed, send a follow-up e-mail confirming that the shipment is on its way, and include a tracking number, too. The fewer question marks that arise between the time your customer completes their purchase and the time it arrives in their hands, the more trust you’ll build.

Packaging

When your package lands in your customers’ hands, does it give the impression that someone has taken care to make them feel they are receiving something special that has been handled and shipped with care? Or does it create the feeling that someone in a warehouse grabbed a few things off the shelf, stuck them in a plastic bag and sent them on their way, with no thought about or regard for the recipient on the other end? The quality of packaging can have a great impact on the perception of the quality not only of the product inside but of the overall buying experience. As a result, you shouldn’t think of the cost of packaging as an expense; you should approach it as an investment in earning the trust of your customers. It’s important to go the extra mile to make sure you present your products in a way that protects and enhances the value of your brand. Grove is a great example of a company that has perfected the art and science of packaging. Each handmade bamboo iPhone 4 case, which can be custom-engraved with the customer’s design of choice, arrives encased in a bamboo frame, which is actually created as a byproduct of the production process. This ingenious idea embodies everything the brand stands for – sustainability, quality, craftsmanship and authenticity – while presenting the case itself as a unique work of art.

Follow-up

The process of building trust with online shoppers doesn’t have to end when your package arrives at their doorstep. A follow-up e-mail asking them to rate your products or provide feedback on their buying experience is a simple act of consideration that conveys your genuine concern for their happiness. Netflix frequently sends subscribers e-mails asking them to rate the audio and picture quality of a movie they recently watched or to evaluate their satisfaction with the service they received when they contacted Netflix phone support.

While Netflix undoubtedly cares about measuring the quality of their services, they are also seeking to build and maintain the trust of their customers by demonstrating their commitment to delivering a great experience every time.

Returns

A generous return policy is priceless when it comes to winning the trust of online shoppers. As commonplace as the act of buying products on the Web has become, there is always still a lingering hint of uncertainty that resides with customers because they cannot see, hold and judge an item for themselves before committing to the purchase and paying the associated shipping costs. However, reassuring them that if their item arrives and is not what they expected, they can return it without question and – even better – with free shipping, shows that you are fully dedicated to ensuring their satisfaction. Not only will you build trust but you’ll also give them an added boost of buying confidence that will keep them coming back again and again. Additionally, make sure that your return policies take into consideration what happens when things don’t go exactly according to plan. If you miss your promised delivery date, don’t add insult to injury by creating headaches for a disappointed customer. Instead, win back their trust by expressing your sincere apologies and graciously offering to credit back the original shipping fees and cover the cost of return shipping.

The human touch

Sure, it's okay to automate your e-commerce processes – charging a credit card, sending order confirmation e-mails, scheduling shipments and generating tracking numbers. But throughout every step of the transaction, you must also offer your customers the safety net of being able to talk to a real person. Not only should your customer service number be available, but it should be obvious and omnipresent so that shoppers don’t have to hunt it down. While it’s tempting to bury those digits because the cost of maintaining customer service staff can cut into your profit margins, you must remember that even in today’s Digital Age, nothing builds trust quite like genuine human contact. If you’re not readily accessible to your customers, you’re running the risk of losing their business to someone who is. E-mail and online contact forms are fine options, but they shouldn’t be the only options. Keep building trust and head off the temptation to give up and go elsewhere by making sure your customers can easily make the leap from virtual interaction to personal interaction. In an age when consumers have the luxury of almost unlimited options, you can’t afford to roll the dice with your customers’ trust. Establishing clear, straightforward expectations, demonstrating care and concern for your customers’ satisfaction, following through on your promises and being readily accessible and responsive goes a long way in transforming a casual online shopper into a repeat buyer and a loyal evangelist for your brand.

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Power Points: 8 Tips for Creating Presentations That Sell

If the word “presentation” conjures thoughts of droning speeches and dreadful slideshows, you’re doing it wrong – and worse yet, wasting valuable opportunities to engage, convince and convert new customers. By following these eight tips, you can deliver more powerful, more memorable presentations that give your audience what they want in order to ultimately achieve the outcome you want.

1. Good tools do not good presentations make.

Today’s sophisticated presentation tools – from PowerPoint to Keynote to Google Docs – offer lots of bells and whistles. But don’t get so caught up in playing with all of the available options that you lose sight of your purpose. Whatever software or format you choose, slides are not a dumping ground for data or talking points. You don’t want your visual presentation competing with you for the attention of your audience. It’s there simply to amplify your key points, not duplicate them, so limit each slide to one single image or thought that reinforces what you’re saying. If you’re displaying a chart, graph or table, don’t leave it up to your audience to interpret the meaning of the numbers. Instead do the work of analyzing this data for them by making the title of your slide the main idea that you want them to take away (e.g., “Southeastern Region Exceeds Sales Goals” rather than “2012 Sales by Region”).

2. Don’t save the best for last.

In today’s digital age, attention spans are short. We’ve all been programmed to skim, scan, parse and move on. That’s why you can’t afford a long, drawn-out wind-up to ease into your presentation. Within the first three slides, you must convey to your audience what’s in it for them so they’re motivated to stay engaged with you. If you don’t come out swinging for the fences, they’ll quickly check out as their minds wander to something that’s more urgent in their own world, like their own list of impending to-dos and deadlines.

3. Know and serve your audience.

Let’s be clear: your presentation is not about you. It’s about your audience. You’re there to serve their needs, answer their questions and address their concerns. Because no two audiences are exactly alike, there truly is no such thing as a one-size-fits-all presentation. While the core of your presentation may remain relatively unchanged from one speaking engagement to the next, if you’re not shaping, tailoring and refining your message and delivery for the particular needs and interests of the audience in front of you, you’re doing a disservice to both them and you. That being said, the benefit of having a strong foundation in place and well-rehearsed is that you’ll be prepared to respond quickly to any opportunity that arises – no matter how tight the timeframe. For example, let’s say a conference planner calls you with a last-minute opening in their programming line-up. If you have your key points memorized and visual supports in place, an hour or so is all you’ll need to tweak your presentation, and you’ll be ready to take advantage of the chance to engage with a new audience without wrecking your nerves in the process.

4. Build trust first, last and always.

You can’t expect to convince anyone to do anything if they don’t believe in you. As a result, building trust with your audience is your first and most important objective. The task of establishing your credibility has much more to do with the intangibles of your presentation that what you say or what you put on screen.You must instill confidence with your visual presence, your body language and your demeanor. Be polished and professional from head to toe. Talk slowly and clearly, and don’t forget to breathe. Avoid mental placeholders like “um,” “uh” and “you know,” but don’t be afraid to pause when needed to transition between thoughts. No matter how nervous you might be on the inside, maintain good posture and steady eye contact with your audience from beginning to end. Always keep your composure even if things don’t go exactly as planned. Show that you respect attendees’ time and intelligence by providing real value and useful takeaway messages. Never, ever use jargon as a crutch to create the illusion of expertise. It’s much more important to be relatable to and easily understood by your audience.

5. Practice, practice, practice.

The art of public speaking is not one that comes naturally for most of us. That’s why preparedness is the key to being able to deliver your presentation with the polish and confidence you need to establish that all-important foundation of trust with your audience. Rehearse your presentation as much as possible, doing so in front of colleagues or other members of your team so they can offer feedback. Walk through every step from start to finish, just as you would on the day of, including setting up and using your digital presentation tools. Videotape your practice session. When you play it back, watch for any red flags that will undermine your credibility like verbal stumbling blocks, lack of eye contact, stiff body language, nervous fidgeting or lagging energy. Don’t forget to make contingency plans in case the situation throws you for a loop. For example, what if you arrive and there’s no way to project your presentation or your equipment malfunctions? Make sure you’re equally comfortable delivering your presentation with and without your visual aides.

6. Engage and energize.

Every presentation has the same core purpose: to motivate the audience to take a desired action. Just as with building trust, the secret of motivating an audience lies in the intangibles. Your PowerPoint presentation – no matter how beautiful and well-crafted it may be – is not going to inspire someone to take action. That’s your job. You must be energetic in your delivery. Passion is contagious, so make sure you let yours shine. If your audience senses that you are genuinely enthusiastic about your subject matter, they’ll be more invested in hearing what you have to say. This is another reason that practicing your presentation is so critical. You need to be able to feed off of and react to your audience. If your focus is wrapped up in the mechanics of your delivery, you won’t have the mental agility to be able to think on your feet. If your audience appears to be bored or confused, you must be able to shift gears to recapture their attention or deepen their understanding. Shake things up by giving them opportunities to interact with you and each other during your presentation. And don’t be afraid to take questions. If someone wants to know more, feed their curiosity!

7. Make it easy to take action.

You wouldn’t design an ad or a landing page or a direct mail campaign without a call to action. The same goes for your presentation. If the goal of your presentation is to motivate your audience to take action, make it clear what that action should be. Think carefully, though, about how you frame your request. The next step should be commensurate with the level of engagement and trust you’ve established with them. Will your audience be ready to sign on the dotted line and fork over their money to you at the end of your presentation? Probably not. So instead, focus your call to action on furthering your relationship with them. Encourage them to sign up for your e-newsletter or follow you on Twitter. Or invite them to schedule a complimentary one-on-one consultation session with you. As long as you can keep the conversation going, you’ll keep the door to future sales opportunities wide open.

8. Maximize your mileage.

No lie: creating a great presentation is a lot of work. The good news is that once you’ve honed and refined your presentation, there are lots of opportunities to get more mileage from it. First, it’s always a good idea to make your presentation available online. Sites like SlideShare, Prezi and SlideRocket allow you to create and host interactive presentations in the cloud and then embed them on your website or share via social media. You will need to create a version of your presentation specifically for this purpose, as your slides will need to be more content-rich in order to be able to stand on their own and convey your key points without the benefit of your verbal delivery. Second, if you’ve mastered your in-person presentation delivery, you can just as easily lead a webinar. All you need are a few additional technical elements such as a webcam and an account with a webinar hosting provider like GoToMeeting or WebEx, and you can expanded your reach from a room full of people to a limitless online auditorium. Here's one key difference to keep in mind, though. In a live presentation, you want to keep your audience focused on you and your words, so your slide content should be minimal. However, with webinars, your presence is limited to a disembodied voice coming through phone or computer speakers. To provide the best audience experience, you must design your slides and content in a way that is not only visually interesting but also helps attendees stay in sync with what you’re saying. Finally, keep your sales pitch in your pocket. Keep a core version of your presentation at the ready on your tablet and smartphone. That way, if an unexpected networking opportunity arises, you’ll be at the ready with good visual aides to complement your conversation. Your new acquaintance is more likely to remember the details having heard and seen your message, and you may improve your chances of gaining a new customer in the process.

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