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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Playing for Keeps: 11 Ways to Create Customers for Life

Reality check: You’re not special.

Here’s a cold, harsh truth about business growth and the nature of competition: Your products and services are not unique. There are plenty of other choices out there, and thanks to modern search engines, finding those options can be done in a fraction of a second.

“But wait!” you protest, “We are the only company that offers this product with this particular combination of features at this exact price!”

As accurate as that statement might be, your customers don’t have the time or the desire to keep track of all those finer points. You live and breathe the details of your business; your customers do not. They know that you sell widgets and your competitors sell widgets. To them, one widget is the same as the next, and one widget provider is just as good as another until proven otherwise.

So how do you not only create a preference for your widget but cultivate an unyielding loyalty to your company as the only one they want to be in the widget business with?

The answer has much less to do with convincing your customers that your widgets are special and irreplaceable and much more to do with convincing your customers that they themselves are special and irreplaceable.

Nothing erodes the relationship between a customer and a company faster than when that customer feels unappreciated. If they perceive that you don’t care about their business, they’ll happily buy their widgets elsewhere.

On the other hand, if you recognize that your customers are your company’s strongest asset and treat them accordingly, your brand will become as indispensable to them as they are to your brand.

Here are 11 ways to create customers for life:

1. Reach out and touch someone.

The process of winning a new customer is like dating. Everyone puts their best foot forward, and there’s lots of wooing and romance involved in sealing the deal.

After the sale closes, the shine can fade from the relationship a bit. Your focus turns to the coal-shoveling work of fulfilling your agreement, and the niceties of your courtship period tend to fall by the wayside.

However, if the only time your customers hear from you is when you’re trying to sell them something or when you’re trying to collect payment for your services, they’ll know exactly where they stand with you, and they won’t think twice about taking a call from your competitor who’s willing to pull out all the stops to steal them away.

Be proactive in your customer service efforts and make personal contact with your clients at least a few times a year. Don’t just sit back and wait for them to call you, and don’t assume that if you don’t hear from them that everything is peachy keen. Reach out to them, ask how they’re doing, feel out their level of satisfaction with your products or services and be a sounding board for questions, complaints or feedback.

By taking the initiative, you’re demonstrating that their value to your company goes far beyond their signature on a contract.

2. Put a human face on your brand.

Even in today’s mile-a-minute, everything-on-demand world of automation and convenience, one simple fact remains unchanged: people want to do business with people.

As a result, one of the most effective ways to make doing business with your company a pleasure through and through is to give your customers one point person who will take ownership of ensuring that their every need and concern is addressed.

There’s nothing more aggravating to a client than being passed from one person to another when they’re trying to get the answer to a question or resolution to a problem. When this happens, it’s easy for the customer to become angry and disenchanted with what they perceive to be a faceless brand and simply give up and go elsewhere.

However, you can save them the trouble of finding a new provider while simultaneously repairing the relationship if have the right customer service structure in place. Potentially deal-breaking issues can be easily resolved when there’s a real, knowledgeable human being on the other end of the phone or email who has a name, a face and a passion for providing a swift, helpful response.

3. Create a culture of service.

If you’re really serious about cultivating long-lasting relationships with your clients, customer service can’t be relegated to a policy manual or a department. It has to be an integral part of your company’s DNA.

Every single person within your organization is in sales, and every single one of them is in customer service, too. Like CEO Tony Hsieh has said on many occasions, Zappos is a service company that happens to sell shoes.

From the receptionist at the front desk to the junior-level guy behind the scenes doing the work that your clients will never see to the accountant that generates the invoices, each action and decision that these individuals make has a cumulative effect in defining your brand.

The key to creating a culture of service that permeates every level of your organization is empowerment, which means you need employees to whom you can entrust this level of responsibility.

Take great care with every hiring decision and seek out individuals who understand the importance and value of their role in shaping your customers’ experience of your brand. Most people can be trained in the nuances of a specific job role, but there’s no orientation program that can instill charisma and work ethic where it does not exist.

Passion is contagious. When your employees project genuine enthusiasm for their job and take ownership of providing the highest caliber service, your customers will feel that they’re more than just a number on a spreadsheet.

4. Reward good behavior.

If you find yourself constantly discounting your products or services to keep your customers coming back for more, you’re training them to love your brand based on price alone. Coupons and sales offer your customers a one-time benefit, and their appreciation for such concessions is as short-lived as the promotion itself.

Your marketing efforts should increase the perceived value of your goods or services, not undercut them. Rather than sacrificing your bottom line to reel in bargain hunters, why not incentivize your best customers to continue doing they’re already doing?

Developing a customer loyalty rewards program – whether it’s based on the longevity of their relationship with you, how much they’ve spent or how many referrals they’ve sent your way – is a great way to reinforce behaviors and actions that help to advance their relationship with your brand.

The key is structuring the program so that the reward is something that holds value to your customer, the initial payoff is attainable within a few months of participation and redemption is an easy, hassle-free process; otherwise, your loyalty program will have exactly the opposite effect.

5. Ask, listen and respond.

Soliciting feedback is a win-win customer relations strategy: it’s an easy way to demonstrate that you care about their needs and desires, and in return, you get valuable insights straight from the source.

After all, who has a clearer view of the ways you could potentially improve what you do or what you have to offer like the customers who use your products or services day in and day out?

In addition to proactively requesting input from your customers, it’s also important to monitor what they’re saying about you. Make sure to keep tabs on your reviews on sites like Google Places and Yelp, and use tools like Google Alerts and Social Mention to stay on top of the conversations that are occurring around your brand across the blogosphere and social media networks.

Certainly you can’t change the course of your business to meet the whim of every customer. But if you see certain requests being made repeatedly, that’s a red flag that there are prime opportunities waiting to be seized to create more robust relationships between your business and your customers.

6. Be one with your tribe.

Take a genuine interest in your customers and their well-being beyond the depth of their pockets.

Keep tabs on key developments in their world and celebrate milestones with them. Give them a shout-out on Facebook or Twitter to acknowledge their accomplishments and help them spread the word.

If your client maintains a blog, follow their posts, share great articles that they publish with your own network and leave thought-provoking comments that spark further discussion or debate.

If a customer comments on your blog or Facebook page, by all means, make sure you respond. When they take the time to actively engage with you, don’t ignore their advances, or they won’t bother to continue.

These small gestures will cost you little time and no money, but they show in a big way that you’re paying attention to the things that matter most to your customers and that you’re invested in their success.

7. Help them advance their goals.

Always have your antenna up for opportunities to help your customers in ways that go beyond your direct product or service offering.

For example, you could call their attention to an insightful article that pertains to an issue of interest to their business. Share links to their blog posts with your fans and followers. Send good job candidates their way. Look for chances to make connections between your clients to facilitate networking and mentoring. Make referrals on their behalf as often as you can.

All of these actions demonstrate to your customers that they’re constantly on your radar and that you’re a true business partner and not just another widget seller.

8. Practice random acts of gratitude.

It’s standard practice to send tokens of appreciation to your customers around the Christmas holidays. This is always a nice gesture, but it’s not exactly mind-blowing.

Don’t make your customers wait 12 months for a demonstration of your gratitude. Do unexpected things throughout the year to show them how much their business means to your company.

You don’t have to break the bank to do something that leaves an impression; it truly is the thought that counts. For example, in today’s instant-gratification-seeking, social media-obsessed culture, think about how great an impact a simple, handwritten note of thanks from the CEO of your company could make.

9. Strive for perfection.

Each and every encounter between your customers and your company plays a role in defining your brand. Take the time to map out every opportunity or instance where your customers do or should come into contact with your business and look for ways to ensure that the experience you offer them is truly remarkable. How can you make it easier, faster, more convenient, more effective, more efficient, more valuable?

Bring everyone in your company together, and ask for their feedback. What tools can you give them to help them serve your customers better? Allow them to be candid about what they see as vulnerabilities and weak points. If there are cracks in the foundation, your customers will notice, so be proactive and aggressive in addressing any issues and ensuring that everything – from the integrity of your products and services to the quality of day-to-day interaction with your employees to the resolution of your customers’ problems or complaints – reflects an unwavering commitment to delivering nothing but the best possible experience.

10. Be honest.

While you should always strive for perfection, any organization run by human beings will inevitably make human mistakes. And in truth, your customers don’t expect you to be infallible 100 percent of the time. They do, however, need to know that they can count on you to make it right.

When problems arise, you have a real opportunity to step up to the plate. Be honest, be humble, be apologetic. Make sure that your actions show that the mistake was an honest one and that you’re sincere in wanting to right the wrong.

If you’ve built a reputation for quality and service, your customers will almost always be willing to forgive a small misstep, as they’ll know it’s the exception and not the rule. In fact, according to a recent Harris Interactive study, 63 percent of respondents said they would go back to a company after a negative experience if they received a follow-up apology or correction from a person in charge.

While you can’t always be perfect, you can always be honest. Transparency is the key to maintaining a solid foundation of trust that is the cornerstone of every long-term customer relationship.

11. Never stop selling.

Genuine customer loyalty must be earned one interaction at a time. You must approach every phone call, every email and every personal encounter like a sales opportunity, not because you’re constantly pushing something else at them but because you must continuously resell yourself and build a case for why you’re the one who can make their lives better and to whom they should entrust their precious dollars.

Happy customers not only keep the cash flowing, they’re your best prospects for additional sales and a vital source of referrals and word-of-mouth marketing.

If you put these principles into practice, you can transform your brand into one of the coveted elite few who have passionate, loyal, vocal customers who not only continue to buy but who do the job of selling for you. Customers who love companies love helping them grow.

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Check it Out: 10 Ways to Stop Shopping Cart Abandonment

It’s not over until the cash register rings

A customer has found your site, browsed your store and added several items to their cart. You’re home free, right? No so fast...until they’ve confirmed their purchase, you’re still at zero, and you still have plenty of opportunities to derail the sale. Fatal flaws in your checkout process can not only cost you the potential sale at hand but also drastically decrease the likelihood of that customer ever returning to your site to buy from you in the future. If you’re experiencing a high occurrence of shopping cart abandonment, here are 10 ways to fix the obstacles and annoyances that are driving away customers and crippling your conversion rates:

1. Eliminate all chance of unpleasant surprises.

Make sure customers have all the information they need upfront to make a confident buying decision. This includes confirming the availability of the item; calculating promotional pricing or discounts; mapping out shipping options, costs and timetables; specifying whether or not sales tax applies to the purchase and clearly defining your return policy. If a customer reaches checkout only to discover that the particular item they wanted is out of stock, ineligible for an advertised discount or costs more to ship than they are willing to pay, odds are good that will be the last you see of them.

2. Display relevant details in the cart.

The shopping cart itself should provide a clear overview of the pending purchase at a glance so that customers do not have to navigate away from the checkout process to confirm the details of their order. Keep in mind that by this point in the process, your shopper may well have clicked to and from the cart numerous times as they selected multiple items, browsed various categories of products or compared one item to another, and they may be fuzzy on the specifics of everything they’ve chosen. Without the benefit of being able to glance down into a physical shopping cart to review their selections, they need reassurance that the package that lands on their doorstep will contain exactly what they intend, so be sure to provide thumbnail images, descriptions, quantities, sizes, colors, prices, availability and applicable discounts for each product in the cart.

3. Allow changes within the cart.

Every time your customer navigates away from the cart, you’re running the risk of losing them, so make sure that they can edit details such as quantity, size and color without having to locate the product page a second time.

4. Offer multiple payment options.

If you’re conducting e-commerce business online, your site should be tied in to a secure payment gateway. However, offering the option to complete the transaction through a third-party processor like PayPal or Google Checkout can put some customers – especially those who may not shop online often – at ease because they don’t have to release their credit card number and billing information directly to you. Conversely, PayPal and Google Checkout shouldn’t be the only options you provide. If a customer does not already have an account established with one of these payment processors, they may not want to create one just to do business with you.

5. Don’t require customers to create an account.

Without a doubt, it’s awfully tempting to require customers to create an account to complete their purchase because it will allow you to collect valuable data from them for future sales analysis and marketing. However, given the sheer number of social media and e-commerce sites that your customers likely interact with, they may very well have account creation fatigue. They may not want to establish yet another user account and password just to make a purchase, especially if they don’t necessarily anticipate ordering from you again in the near future. The best approach is to offer two options: checking out as a guest, which will expedite the process, or creating an account, which offers conveniences appealing to those who do shop with you often, such as eliminating the need to re-enter their shipping and billing information every time they make a purchase and allowing them to check on the status of an order. The key is to let your customer make the choice that suits them best; don’t force the issue and lose a sure sale in pursuit of future marketing opportunities.

6. Simplify and streamline.

Online shoppers are notoriously impatient, so don’t ask for more information than you need to complete the transaction, and don’t break the checkout process into more steps than necessary. Make sure as well to display a breadcrumb trail that indicates how the checkout process will progress. If a customer can see at step one that they only have three steps left to complete their order, they won’t get impatient or frustrated as they move from one screen to the next, not knowing what’s coming next or when the process will be done.

7. Cater to the on-the-go shopper.

When evaluating your checkout process, don’t forget about mobile users. A customer may be standing in the bricks-and-mortar store of your competitor and comparison shopping on their phone. If you offer the better price, don’t you want to make it as easy as possible for this customer – who’s clearly ready to buy – to order from you on the spot instead? This is another reason why it’s critical to streamline the steps within your checkout process as much as possible as well as to ensure that form fields can be easily completed on touch-based devices. Walk through your checkout process on as many different types of mobile devices and platforms as you can get your hands on, and don’t waste any time in eliminating any obstacles or road blocks that you discover.

8. Don’t give up too soon.

In the age of multitasking, sometimes a customer will simply get distracted before they have a chance to complete their transaction. The phone rings, the baby wakes up from her nap, the computer freezes, the pizza delivery guy arrives, etc. Or sometimes, they just need some extra time to make a decision while they continue to do research, get opinions from friends and the like. While you can’t do anything to mitigate this type of offline interference, you still have a chance to save the sale. A persistent shopping cart retains the items your customer has selected for a set period of time, whether that’s a few hours or a few days. When your customer has a chance to return to their computer, they can pick up exactly where they left off rather than facing the hassle of tracking down each item again, even if they had closed their browser window.

9. Never underestimate the importance of the human element.

If your customer has a question as they are progressing through checkout, the easiest, most reliable way to ensure they don’t lose momentum is to display your customer service phone number prominently at every step along the way. A simple question should have a simple resolution, and usually that is best provided in real time by a human being. If you leave your customers to their own devices to find the answers they need, you’re running the risk of allowing them to become distracted or frustrated and losing all interest in completing the order.

10. Reinforce trust at every turn.

As with all elements of doing business online, trust is key. In the absence of face-to-face human contact, you must rely on your website to build trust for you if you want customers to choose to spend their hard-earned dollars with you rather than with your competitor. Some elements of trust-building in e-commerce are obvious. Do you display your SSL certificate to reinforce security? Do you feature customer testimonials or reviews to boost confidence in your reputation? Is it easy to locate your company’s phone number, physical address and return policies so they feel assured that they can resolve a problem or obtain a refund without hassle? Other elements are less tangible. Does your site have a polished, refined look and feel overall, or does it look dated or sketchy? Do you offer value-added content like how-to videos or blog articles that convey to your customers that they are doing business with experts who are knowledgeable and passionate about their products? Thanks to the proliferation of Internet scam artists, the burden of earning trust with online shoppers is steep, but it is surmountable with careful attention to detail.

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