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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How Warby Parker Conquered Social Media (And You Can Too)

Warby Parker is an eyewear company on a mission. In 2010, co-founders Neil Blumenthal, Dave Gilboa, Jeff Raider and Andy Hunt set out to revolutionize their niche by creating boutique-quality, classically crafted eyewear at a revolutionary price point.

Today, they sell frames and lenses together for a flat low price of $95. Not only do they produce a high-quality, affordable product, but they also do so with a conscience: for every pair of glasses sold, a pair is given to someone in need.

It’s an indisputably great concept. But how did they skyrocket to success so quickly? Well, they had a little help – from the community of followers and evangelists they’ve cultivated through their activities on key social media networks, specifically Facebook, Twitter and Pinterest.

While their business model may be unique, their approach to community building offers great lessons in social engagement that you can implement to fast-track the growth of your business:

Facebook

How they did it: Warby Parker is currently just shy of 100,000 followers and still growing daily. The strength of their appeal on Facebook lies in their prolific use of images through status updates, albums and user engagement campaigns.

Since the arrival of the Facebook timeline, images are more important than ever. According to Facebook Marketing, “photos and videos get 120% and 100% more engagement respectively.”

How you can do it: The equation is simple: more images means more interaction, so it’s time to get visual.

Here are a few simple ways you can amp up your use of photos and videos on Facebook:

Attending an event? Snap a photo or video and post it to your page. For greater convenience, install the Facebook Pages app on your smartphone so you can share on the spot without needing to be near a computer.

Published a new blog post? Share the photo you used in the post, then caption it with a catchy hook followed by “Read more here:” and the URL.

Just released a new collection of products? Create an album featuring a photo for each new item in your link along with a quick description and a link to your e-commerce site to drive sales.

Twitter

How they did it: With nearly 28,000 followers to date on Twitter, Warby Parker (@WarbyParker) has a well-branded page and a strong team of community-builders behind their tweets. One of their strongest assets is their consistency in responding to customers, potential customers and fans.

Take a quick peek at their Twitter page, and you’ll instantly notice an unending list of tweets in direct response to another Twitter user. According to Carol Rozwell, vice president and analyst at Gartner, “The dissatisfaction stemming from failure to respond via social channels can lead to up to a 15 percent increase in churn rate for existing customers.”

While it’s impossible and impractical for a growing company to respond to every mention on Twitter, it’s an important practice to engage as much as possible with the community. From my own personal experience I can say that I’m much more likely to be a loyal customer of and an evangelist for a company, product or service that responds to me than one that doesn’t. Not surprisingly, my personal choice of eyewear is, in fact, Warby Parker, and much of that has to do with the responsiveness and excellent customer service they provide through Twitter.

How you can do it: Responsiveness is the name of the game. You should try to over-serve your customers at every turn.

The most efficient way to do this is to assign a specific person — ideally a customer service specialist who is also socially savvy themselves — to monitor your Twitter feed on a daily basis. By delegating the task to one person, you can ensure that your responses are consistent, timely and safeguard the value and reputation of your brand. With the pace at which the social media world moves, if a comment or concern from a follower lingers for even a few hours unanswered, people will take notice and will perceive that you have ignored their tweet.

One important cautionary note: if a follower brings up a problem, acknowledge it publicly, then resolve it privately via phone or email.

Pinterest

How they did it: Much like they’ve done with their Facebook presence, Warby Parker has used the power of images to connect with their customers on Pinterest. They currently have over 6,000 followers, 27 boards, 1,800 pins and more than 1,600 pin likes.

It’s worth noting that they are using Pinterest in exactly the right manner – not as a tool for shameless self-promotion but rather as a vehicle to provide greater value to their customers and to create an overall image for the brand that people gladly want to identify themselves with. For example, one of their boards is called “Jasper: A Vintage Outlook,” and simply features vintage-inspired images that echo the brand’s look and feel.

Another technique they use is cross-promotion. On their “Bespectacled Bloggers” page, they feature bloggers wearing Warby Parker frames. This serves to not only add credibility to the brand, but also to increase traffic to blogs that support Warby Parker. It’s a win-win.

How you can do it: Focus on providing value first and foremost, and allow promotion to happen organically as your followers take your great content and run with it.

Self-promotion need not be avoided completely; however, it’s important to do so in a tasteful fashion and not to let your social media sites be solely focused on you. This will allow you to generate a real community around your brand, product or service, because you’ll become a source rather than a salesperson.

Much like Warby Parker has done with their Pinterest page, think about the kind of things your consumers are interested in (other than your product), and provide valuable content based on that. People will be more inclined to engage with what you post when it’s valuable to them, rather than when they feel like they’re being sold something all the time.

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SEO 101: A Plain-English Primer

In today’s marketplace, when people have a question, want information or need to find a product or service, they don’t flip open the Yellow Pages. They don’t scour online directories. In May 2010, Americans conducted 15.9 billion searches*Instinctively, they turn to search engines like Google, Yahoo and Bing. As a result, these sites hold the keys to targeted encounters between you and prospects who are looking for a solution that you can provide. In May 2010, Americans conducted 15.9 billion searches* using the five major search engines. Of those, 63.7 percent were executed on Google sites, while Yahoo and MSN sites claimed 18.3 and 12.1 percent, respectively. That’s a tremendous pie, and you undoubtedly want a piece. Unlike in the days when the Yellow Pages ruled the world, you can’t buy your way to prominence on an organic search results page. Fortunately, you can take a proactive approach to determining where you land in the ranking for applicable product- or service-related keyword phrases through the practice of search engine optimization, known as SEO. Much is to be gained by appearing in the first few results of a search. Users want immediate answers and are not likely to wade through pages and pages of listings. Furthermore, because the major search engines have built their reputation on returning quality results, the higher your ranking, the more apt the consumer is to assume that your site will deliver the solutions they are looking for. Therefore, in the simplest form of the equation, a higher ranking equals greater probability of a user coming to your site, more prospects seeing what you have to offer and increased opportunities to convert visitors into customers. As a result, garnering a favorable position in the results for select search terms is one of the foundational aspects of effective marketing today.

What SEO is and what it is not

SEO is not a turn-key solution.Let’s be clear: SEO is not a turn-key solution. There’s no SEO magic dust that you can sprinkle over your site and instantly advance from page five to page one. The value of Google from the user’s perspective is the efficiency of entering search terms and receiving relevant and trustworthy results without having to sift through a sea of unpopular and unhelpful spammy sites. In fact, the major search engines are constantly advancing and sharpening their algorithms in order to ensure that they protect their stature as the gatekeepers of good information. What does this mean for you the business owner? Achieving the top spot does not come easily, and it takes an ongoing, dedicated investment of time and resources to work your way up through the rankings of a search. After all, if just anyone could fake their way to number one, Google would be worth nothing. Unfortunately, because of the growing importance of SEO, it has become a lucrative field for marketing agencies looking to make a quick buck. There’s a proliferation of snake-oil salespeople who would have you believe that SEO is a simple, one-time fix that will launch you to the top of the list and send your traffic numbers through the roof. This is for their benefit, not yours. As a result of the misinformation and half-truths preached by these shysters, it can be difficult to separate truth from fiction, both in terms of what it takes to improve your standing and what to expect once you do. SEO is a complex process, but you certainly don’t need to become an authority in the minutiae to grow your business successfully. However, you should have a foundational understanding in order to sort out the legitimate practices from those that will only waste your time and money.

The anatomy of a search engine

At a basic level, all search engines operate the same way. The Web encompasses billions of documents that are bound together through links. Search engines use these links to find and access individual web pages and files, using automated “spiders” to crawl and index the content contained therein. All of this information is stored in trillions of records that are tied to specific keywords or phrases. Therefore, when a user initiates a search, the engine doesn’t have to scan all of the many billions of web pages in existence. Instead, it must only access the particular record that holds the index of information pertaining to the terms entered, making it possible to retrieve vast amounts of data in mere fractions of a second. However, search engines do much more than pull back data and generate randomly ordered lists of links that are related to the terms entered in the query. Rather, the results are sorted and ranked based on importance, which is gauged according to relative popularity, following the assumption that a site or page is popular due to the quality of the information it contains. Therefore, the objective of SEO is not only to ensure that the major search engines identify your website content as being relevant to the keywords that pertain to your products or services but also to increase the perceived importance of that content.

Turning the tables on search

You are undoubtedly very familiar with the mechanics of using a search engine. These days, online search is as deeply ingrained in our daily lives as eating or sleeping. However, as one who is charged with growing a business, it is a useful exercise to take a step back and seriously reconsider the search process, looking at it through the eyes of a prospective customer. Sure, it’s possible that a user might search for your business by name – “Sally’s Bakery,” for example. It’s easy to land at the top of those results. However, in that case, the searcher essentially knew what they’re looking for already, perhaps because they are a returning customer, they’ve seen your sign while driving down the road or they’ve been referred by another customer. The brass ring of SEO is capturing organic traffic – prospects that may never even have heard of you before.These types of visitors are good, but they aren’t necessarily the primary target of your SEO efforts. Instead, the brass ring of SEO is capturing organic traffic – prospects that may never even have heard of you before. These are users that are searching with more generic keyword phrases like “birthday cakes Charlotte” or “cupcakes Charlotte.” It’s not as easy to climb the rankings of these results, but it’s conquerable – not to mention profitable. It’s important to understand that each and every one of the billions of searches conducted each month begins with an identifiable need. Therefore, first and foremost, you should ask yourself two questions: “What types of problems do people have for which I can offer a solution?” and “What words or phrases would they use to express that need?”. The answers might not be quite as straightforward as you think. Let’s say you own a professional landscaping company. Certainly there are people who will search for “Charlotte landscaping” or “Charlotte lawn care,” and without question you want to make sure that your site is optimized to be ranked high among the results. But there are many, many other search terms like “landscaping ideas,” “garden,” “roses,” “weeds,” “fertilizer,” “insect control,” “How do I make my home more energy-efficient?” and even “How do I sell my house?” that are still relevant to your business. After all, chances are good that you would have something of value to offer anyone in your area that was experiencing a need related to one of those ideas or questions. Therefore, you should take all of these into account when developing your SEO strategy.

What’s next?

Now that you have a deeper understanding of the fundamentals of search, you’re well-armed to apply that knowledge to the practice of SEO. The great news for you as a business owner or marketer is that there are actually many things you can do yourself to improve your standing with the major search engines. Even better, many of these tactics also serve double-duty in supporting and reinforcing your other marketing efforts. Before you get started, be sure to read SEO 102: 13 Steps to Improve Your Ranking the Right Way. While there’s no instant formula that will launch your site to number one, by implementing these tried-and-true SEO techniques with patience and persistence over time, you can be confident that you will yield real results. * Source: comScore

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