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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Website Design for a Multi-Device World

The array of devices through which people interact with online content is larger and more diverse today than ever. To underscore the point, try this little exercise – take a look around your house and find every device you own that can access the Web. For me, the list looks like this:

• Desktop computer
• Laptop computer
• Netbook computer
• iPod touch (x2, each a different generation)
• iPad
• Kindle (x2, each a different version)
• Android phone (HTC EVO)
• Gaming system (wii)

Each of these devices has a different screen size, and the experience of accessing web content is different on each.

That’s why, if you want to ensure that your website will provide an experience that truly engages your audience, it must be designed specifically for this multi-device world in which we all live today.

The multi-device user

The multi-device world is populated by multi-device users. While a staggering variety of devices are, indeed, being used to access web content today, it’s also important to remember that the same user is often using multiple different devices to access your website – and they expect that site to work well regardless of which device they happen to be using at the time.

To illustrate this point, let’s consider the scenario of an average everyday activity that occurs on the Web: mom planning the family vacation.

As she starts her day, she does a quick search on her iPhone and starts to peruse a few sites that strike her interest as she enjoys her morning coffee. Later she takes advantage of her lunch break to continue her research. She visits many of the same websites as she did before, this time reading more and delving deeper each one now that she’s seated comfortably in her chair behind her desk and has more screen real estate to work with. That evening she shares her findings with the family, flipping between sites on her iPad as they unwind on the couch. In each instance, she visits many of the same sites, and she expects them to perform just as well no matter which device she has in front of her.

More than just mobile phones

You have likely been introduced to the concept of “mobile websites” and have been told that your company needs one, but as the scenario above illustrates, the multi-device landscape encompasses much more than just large desktop monitors and small handheld phones. There are many devices and screen sizes in between, and your website must be equipped to work well on all of them. That’s why a separate “mobile-only” site is not the best way to serve the needs of the multi-device user.

A mobile-only solution relies on technology that detects when your website is being accessed via mobile phone and redirects the user to a completely separate version of your site – one designed specifically for the typical screen size of a smartphone. These mobile websites often feature less content and fewer features in order to minimize both navigational complexity and load time.

The problem with the mobile-only approach is that it only addresses the needs of one specific type of device. Large desktop computers get the “normal” browsing experience while mobile phones get a smaller, more streamlined version.

But what about the multitude of devices that fall between these two extremes? How do we serve them effectively?

Going responsive

There are a number of deficiencies with a mobile-only approach, but the inability to serve today’s broad array of devices is the most detrimental.

If the mobile version of your website offers less content and fewer features than your desktop site, you run the risk that a user will be looking for content that you have decided to eliminate from your slimmed-down mobile site. This is a problem, because when a user comes to your site looking for something specific and they can’t find it, their natural response is to go looking for it somewhere else – which usually means your competitor’s site.

After all the effort your put into attracting users to your website, anything that drives them away – like a user experience that is not optimized for the device they are using – runs counterproductive to your goals. So how can you embrace this multi-device world and ensure that your website can succeed in it? It’s time to go responsive.

What is responsive web design?

Responsive web design is an approach that has gained much favor and momentum in the web industry in the past few years – in part because it offers a solution to many of the limitations that mobile-only websites face.

A responsive website is one that intelligently rearranges its layout based on the size of the user’s screen. For instance, let’s say your site normally presents its content in three columns. The smaller a screen gets in size, the more problematic this layout can become, as the columns become so narrow that their content is unreadable and their buttons are un-pressable.

With responsive design, when a visitor is using a tablet in portrait mode or a laptop with a very small screen, those three columns reflow into a two-column layout that is better suited to the dimensions of those screens. For handheld phones, the design shifts to a single column of content with text and links that are large enough to be easily read and touched even on a very small screen. In this way, you have one website that “responds” to the multi-device user, adjusting its layout based on the particular device they are using – hence the name responsive design.

The benefits of responsive design

Efficient maintenance

It’s hard enough to keep one website updated with timely, relevant content; updating content across multiple websites is even more challenging.

When you go the mobile-only route, you end up with multiple websites to maintain. With a responsive approach, however, you have only a single website to manage. This makes it easier to keep your content consistent, because anytime you make a change to your website, that change is seen by all visitors regardless of the device they are using.

Zero gaps

As we saw earlier, supporting the multi-device user means being able to accommodate more than just large desktop screens and small handheld devices.

A responsive web design approach does indeed address these two extremes, but it also fills all the gaps in between, adapting its layout to perform seamlessly on the widest range of screen sizes and devices possible. This is especially helpful for those users that jump from device to device, as described earlier, because the site will adjust to their needs and present them with a consistently good experience regardless of their choice of device.

Adaptability

Because a responsive website design will reflow based on the screen being used to access it, your website will be equipped to support not only those devices that are popular today, but also those that we don’t even know about yet.

As new devices are released – some of which will undoubtedly also introduce new screen sizes or resolutions to the market – you can rest assured that your responsive site will do its best to present an optimal experience by “responding” to whatever type of screen it might be presented with.

Go big

While much attention is paid to how your website will handle smaller screens such as those on smartphones, there is another end of the spectrum to consider: large devices.

A responsive website can not only reflow its layout to present an optimal experience for small screens, but it can also do the same for very large screens. Large screens are often neglected in website design because even sites that are engineered for desktop monitors are not built to suit many of today’s widescreen displays. However, a responsive approach can allow your site to stretch its legs a bit in order to better fit bigger screens, making use of the additional space to better communicate your organization’s message.

Cost effectiveness

Since responsive design means you need only a single website, deploying this approach can often be much more cost effective than developing separate websites for different devices. This cost effectiveness is compounded further over time as you save the added expense of having to update, maintain and host separate sites for desktops, mobile phones, tablets, etc.

The challenges of responsive design

While there are a number of advantages to responsive design, there are a few challenges as well.

First, responsive design is not a feature that you can simply tack on to your existing website. To be done right, a responsive approach requires you to redesign and redevelop your site from the ground up so that responsive logic can be built into every aspect.

Another challenge of responsive design is that, if not done properly, it can result in loss of performance for users on devices where bandwidth is a concern. Often the small-screen version of a responsive design does away with some of the elements that exist solely for aesthetic purposes (large background images, for example). When such elements are “turned off” for smaller devices, if not configured properly, they might still be sent to the device anyway, meaning those devices are required to download excessive and completely unnecessary data that negatively impacts performance. To avoid this pitfall, make sure you’re working with a team that’s experienced in responsive design and has the technical expertise necessary to ensure that your site tailors both its layout and performance to deliver an optimal experience for any device.

Embracing the multi-device world

Traffic to websites from devices other than desktop computers has risen dramatically in the past few years, and industry analysts predict that number will continue to soar in the coming years. Looking at the hundreds of websites that I help maintain and manage, I am seeing an average of about 30 to 35 percent of all traffic coming from mobile devices of one kind or another and even a few sites where mobile traffic is nearing 50 percent.

As we head toward a future where more than half of our website traffic will come from visitors not using a traditional desktop computer, now is the time to ensure that your website is armed to compete effectively in a multi-device world.

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The Gathering: Social Marketing, Old School

The brave new world of Web 2.0 offers a wide array of platforms that allow businesses to connect virtually with the people who want what they’ve got. But long before the advent of the Social Web – before anyone had ever heard of Twitter, Meetup, Craigslist or Facebook – social marketing flourished. From Tupperware parties to trade shows, whether in living rooms or convention halls across America, people came together in gatherings to connect with products, sellers and other customers like themselves all at once. And while today’s culture of hyper-connectivity has dealt much of traditional marketing a fatal blow, the gathering has stood the test of time. In fact, social technology has given new life to the gathering. No longer confined to fixed time slots or venues, the content and conversations of events now live on in perpetuity through social media, event-specific websites and online video. It’s important to make sure that gatherings have a place in your marketing arsenal.This relationship works in the other direction as well. As communities form around common interests on the Web, real-world gatherings are a natural extension of members’ online interactions. Like a handwritten note in the age of e-mail, the face-to-face connection has become a rarefied, premium experience in a time when virtual connectivity is always only a finger-swipe away. For these reasons, it’s important to make sure that gatherings have a place in your marketing arsenal and that you’re investing time in engaging with your tribe of followers offline as well as online.

"Ideas worth spreading"

A recent gathering I attended began like a bad joke: an artist, an engineer and a socialite walk into an auditorium. This time, however, there was no punch line. Instead, I was participating in a TED event, and the room was electric with the pre-show buzz of right and left brains, liberals and conservatives, vegans and slow-food carnivores wearing “I ♥ Meat” t-shirts. For decades the famed TEDTalks have brought together artists, angel investors, designers, doctorates, engineers, entrepreneurs, communicators and community leaders, all in pursuit of one common passion: “ideas worth spreading.” With its famously short talks (25 minutes or less), TED is a petri dish for innovation, and most followers would sever their right arm to attend the invitation-only conference in Long Beach, California. Historically, the group met in druid-like seclusion. But with the ascension of new leadership came a new vision: world-changing ideas should actually be shared with the world. The arrival of online video gave TED a second, virtual life, and in the early 2000s, TED.com began offering free access to full-length videos of its proceedings. For years, TEDophiles like myself have gobbled up this content online while dreaming of experiencing it in person. Fortunately for us, the masterminds behind TED realized that ordinary people everywhere have ideas that could change the world, or at least their local communities. So in 2009, TEDx Events were born, with TED lending its name, brand collateral and mission to independently planned and executed local gatherings. In December 2010 alone, 165 TEDx Events were held in 54 countries. I myself became an official TEDster on September 24 at the inaugural TEDxCharlotte, right in my hometown. A dream came true as I sat with hippies and hipsters for one glorious day of ideas worth spreading. As TEDizens like me have discovered, it is the gathering itself that is the holy grail, not just the content and information. The conversations and connections that can be sparked when people meet and share experiences in the real world are deeper and longer-lasting than those that are confined to tweets, Facebook wall posts or even forum message boards.

Gathering your tribe

TED is a shining example of the value of creating opportunities for people to meet and interact with others who share their interests. Identify the commonalities that unite your tribe.However, you don’t need their massive, worldwide following to harness the power of the gathering to grow your business. You just need to identify the commonalities that unite your tribe and orchestrate an event that taps into their shared passions and provides an outlet for engagement. Remember that those who would make the effort to spend time and energy with you are your champions. They are people who believe in – or at least are interested in – your product, service or company enough to bother. You don’t have to dazzle them. But you do have to show up, make authentic connections and give them something of value for their effort. The end result? They will love and trust you more. In order to ensure the success of your gathering, here are some key points to keep in mind:

Bigger isn’t necessarily better

Often, the slicker and more carefully controlled the interaction, the less special the event can feel. Instead, just keep it simple. Invite a handful of your best customers or, if the invitation is open to all, limit registration. This will foster an atmosphere of intimacy and privilege for those in attendance. Most importantly, don’t use the event as a ruse to assemble your followers for a sales pitch. Be genuine and focus on delivering something of real value.

Show what you know

If you’re a service provider, your customers routinely pay for your knowledge and experience. Play to your strengths by hosting an educational gathering related to your area of expertise. For example, a lawyer could offer a free estate planning workshop to recent retirees or present a seminar for small business owners about the implications of recent health care legislation. The payoff for this type of effort is a group of prospective clients who believe in your credibility as a knowledgeable resource and trust in you more than your competitors.

Break out of your box

Perhaps people associate your business with a particular line of services or products even though your catalog is actually much more diverse. A gathering is a great opportunity to shed some light on your less well-known areas of expertise. For instance, a pest control specialist might know as much about protecting garden vegetables from aphids as floor joists from termites. A lecture to the local garden club could open a new niche market hidden from competitors’ view. Likewise, an interior decorator could offer working moms a workshop about organizing with style, thereby becoming the savior of the super-busy.

The power of privilege

Treat your best customers (the ones you or your staff know by name) to a special appreciation event. Give away products and thank them sincerely for being so faithful to you. They will love your company all the more and become even more vocal evangelists for your brand.

Party like it’s $19.99

If your brand or your products already have a fan base, give those fans an excuse to get together and have a good time – all under the banner of your brand. You’re throwing the party. They’re your fans. The conversation will inevitably lead back to you. You don’t have to force it. Think gallery crawls, wine tastings or product launch parties.

For the love of rewards

Oh to be in the audience the day Oprah gives everyone a new car. Most days, though, you’re at least going home with a free book. When you host an event, reward the effort people make to attend by giving away products to those who show up. Better yet, give more products to people who bring others with them. In doing so, you’re not only giving them a no-risk way to experience your product or service, but you’re incentivizing them to spread the word to others as well.

Use the Web to promote your gathering

If you want a large event, invite all your Twitter followers. If a smaller gathering of your best customers is what you’re after, send direct messages to only the most active or influential among them. You can even turn your event into a contest by challenging your Facebook fans to share why they love your products in order to win a place on the guest list. You’ll not only have an instant list of eager attendees, you’ll also reap some great testimonials for later use.

Transcend time and space

When your event is over, share pictures or video online to demonstrate the good time had by all and the value those who attended received. For example, if your event was instructional in nature, offer a recap of the tips that were covered or access to video of a presentation delivered at the event. Get people talking about your event and keep them talking. The important thing is to get people talking about your event and keep them talking – and sharing, and linking to, and blogging, and status updating and tweeting – about what wonderful people you and your staff are and how much value they find in your product, service or expertise.

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