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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Writer’s Block Be Gone! 9 Sources to Mine for Endless Blogging Ideas

“Content is king!” is the chief mantra of today’s marketing. And in the king’s service, many a business has begun blogging with fervor, only to have those efforts languish a few weeks or months later as the novelty wears off before the long-term benefits kick in. The challenge facing any business blogger is not only to produce top-quality content that people will love and share but also to establish a regular rhythm of publishing new content over time in order to build a following and develop a community around the brand. Perhaps you’re a sole proprietor – and therefore a solo blogger – juggling too many responsibilities and too little time. Or maybe you’ve been handed the torch of managing your company’s blog, and you have no clue where to begin. Perhaps you’ve been blogging for your company for some time now and are starting to feel the well of inspiration running dry. Wherever you currently stand on the blogging spectrum, don’t give up. Great content ideas are all around you; you just have to know where to look to find them.

Here are nine reliable sources you can always turn to whenever you need inspiration for that next great post:

1. Your company documents

In the course of doing business, your company cranks out tons of documents. While many of these might seem boring or commonplace, there are seeds of inspiration to be found if you look hard enough. Has someone from your company recently given a presentation at a conference or hosted a webinar? Find a way to mold the content into article form, and embed a video or audio recording (if available) for those who’d prefer to watch or listen rather than read. Has your company published an ebook or whitepaper? You’re in luck! Take that content and break it down into bite-sized snippets for near-ready-made posts. Even the most mundane documents can yield surprising gems. Your company’s annual report, for example, probably highlights the past year’s major accomplishments. Seek out the individuals responsible and interview them about the process of reaching those milestones. Ask them to share lessons learned along the way and advice that would be helpful to others (without giving away any trade secrets, of course). Transcribe your sessions and – just like that – you can check another blog post off your list.

2. Your coworkers

Every person within your organization brings a unique set of skills, experience, interests and expertise to the table. Tap into that brain trust to keep your blog humming with an interesting and diverse array of content. Recruit your coworkers to write posts inspired by their own particular strengths and areas of expertise. Different minds think differently, so you’ll likely discover that they’ll explore ideas that might never have occurred to you. Plus – as a bonus – having many voices and perspectives represented on your company’s blog will only make it that much more useful and appealing to readers.

3. Your customers

If you’re doing your job right, your customers are your blog’s readers. But they can also be an invaluable source of its content as well. After all, who’s better qualified to share creative and practical ideas for how your products or services can be used to make someone’s life (or business) better, easier, richer or more efficient? For example, Evernote regularly features customer interviews on its corporate blog as a way to tout the limitless possibilities its suite of apps offers for personal organization and productivity. Within each post, Evernote includes screen shots from the featured customer to demonstrate the software in action. The firm has even taken this approach one giant leap further, recruiting their best customers as brand ambassadors in areas relative to their particular expertise. For example, they’ve instituted a food blogger as their Home Cooking Ambassador, a workout guru as their Fitness Ambassador and a personal tech expert as their Parenting Ambassador.

4. Studies, surveys and polls

If there’s one thing we’ll never be lacking in today’s information age, it’s data. Every day, new research is being published on any number of topics. Find a recent study that’s relevant to your audience and digest what the results mean for them in practical terms. Do the numbers indicate a shift in trends? If so, how should your readers adapt their approach to stay ahead of the curve? Does the research suggest that the status quo is here to stay? If so, how can your readers respond to make the most of a proven winner?

5. News headlines and pop culture trends

A sure way to spice up any blog post is to find a tie-in to current news headlines and pop culture trends. The trick is to take two seemingly unrelated concepts – such as comedian Louis C.K. and customer service – and create an analogy that brings them together in a way that offers a fresh perspective on a topic that’s been covered countless times before. Whether it’s The Amazing Spider-Man or the Olympics, Tom Cruise or the presidential election, by linking subject matter that may seem either unfamiliar or unoriginal to something very familiar and timely, suddenly your topic – no matter what it is – becomes much more relatable and of the moment to your reader.

6. The calendar

Life – and business even more so – is cyclical. With every year comes tax season, summer vacation, the holiday rush and the lull that follows, a new year and new budgets...you get the idea. Think critically about what types of challenges each season brings for your readers, and write timely posts centered around useful tips and advice to help them through.

7. Your own blog

Just because you’ve written about a certain topic before doesn’t mean it’s off the table now. There’s always more to say or a different angle to explore. Perhaps the original was an entry-level, 101-style post. Now it’s time to delve deeper to help those readers who’ve mastered the basics and are ready to learn more. Perhaps enough time has passed since the previous post that new research has been released on the topic, or industry trends have shifted in a different direction. Revisit the topic and bring your readers up to speed on the latest developments.

8. Other blogs

You never have enough time in the day. Guess what? Neither do your readers. Sometimes the best way to solve both of these problems is not to create new content but to curate the great content that already exists. What does that mean? It means aggregating the best, most useful posts that you’ve found in your travels across the Web into a single post (giving due credit to the original sources, of course). This type of article can be organized either around a central theme (e.g. “Pinterest: 10 Articles to Help You Get Started”) or by timeframe (e.g., a “Week in Review” round-up of your favorite articles from the past seven days). Either way, you’ve done your readers a great service by sparing them the time to cull through all the riffraff to get to the good stuff, and you’ve published another great post that required minimal time and effort to compose.

9. You

We began with one mantra, so let’s finish with another: “Write what you know.” The best source of blogging inspiration will always be your own life experience. Readers engage more with true-to-life stories of obstacles overcome or goals achieved. Generally, if something triggers an emotional response from you – whether it’s excitement, anxiety, frustration or curiosity – you’re likely not the only one who’s encountered this situation or felt this way, which means it’s worth considering how to spin the event into a relevant article for your company’s blog. Also, you can harness personal challenges to put yourself in the shoes of your readers. For example, this article was inspired by my own strategizing process for a new company blog – how would I keep the content flowing when the obvious ran out? Keep in mind, too, that there are certain basic building blocks of life and of business that are universal. Every person who owns a business, for example, has to figure out how to win new customers, what they can do to grow their market share, the best way to manage employees and company resources, etc. If your target readers are business owners and entrepreneurs, any wisdom you have to offer in these areas based on your own personal experience will be appreciated. And don’t be afraid to share your failures as well as your successes; both offer equally valuable lessons for your readers. To make the most of life’s inspirational moments, practice actively paying attention to the events of your day-to-day routines. Keep a running log of content ideas – whether it’s in a physical notebook or just a simple text file that lives on your desktop. As you go through your day, write down every minor annoyance and small victory. Doing so will help train your mind to be aware, and soon you’ll discover that you’re finding blogging inspiration in even the most unexpected places.

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10 Things You Pay for From Traditional Marketing Agencies

In today’s business world, it’s no longer the big fish that eats the small fish; it’s the fast fish that eats the slow fish.

In the same way the information revolution has changed how customers and market share are won, it has also reshaped the old systems that once governed how companies operate and how people work. The future of business is more flexible, faster, leaner and smarter.

This is not just about adopting a telecommuting policy or forgoing the purchase of that expensive copier. It’s about changing how business is done, both in philosophy and in execution.

The penalty of clinging to old business practices is losing clients that no longer can justify bills with unneeded overhead baked into them. As leaner and smarter companies emerge, the old juggernauts who are slow to change are quickly dying.

Marketing agencies

At the top of the scale of corporate bloat are marketing and advertising agencies. While not all industries can shed their physical offices and adopt a virtual model, the dominance of digital marketing coupled with the very nature of marketing’s day-to-day business operations afford these agencies a clear-cut path to modern efficiency.

However, in reality, few have changed. The majority of marketing firms hang on to these old systems of operations, passing on the burden of their expenses to their clients.

The traditional marketing firm still maintains an expensive posture to attract its clients.Why? Most find changing their methods of operations to be just as hard as adapting to today’s Web culture and the new rules of doing business. Too much has changed too quickly. In clinging to old methods – even those of its own self-promotion – the traditional marketing firm still maintains an expensive posture to attract its clients with their lavish offices and costly travel. These companies force work into physical locations, perpetuating the punching of clocks and shuffling of paper, while carrying years of old business operations in the form of debt, all of which must ultimately be paid for by the client.

There’s a reason why marketing companies are dying left and right, beyond becoming irrelevant in the digital age. Today's clients no longer accept invoices inflated by bloated operations, particularly when virtual companies can do more at a fraction of the cost.

The rise of the virtual company

It took time for companies like Amazon, Netflix and Apple to revolutionize and overtake industries that were once based in bricks and mortar. Replacing the physical form was a challenge in reconditioning the mind of the consumer and in reshaping traditional systems, such as fulfillment, customer service and exception handling.

2010 will see the emergence of the virtual company in full force.These initial obstacles were quickly overcome as consumers realized the advantage of lower prices by way of lower overhead, mutually beneficial partnerships and geographical barriers being torn down and giving way to an expanded market. Today, that same virtual model that started strong in the retail sector is being adopted throughout all applicable industries. As a result, virtual companies are growing at record pace.

2010 will see the emergence of the virtual company in full force. The convergence of technology, communication, new service-based companies and systems that meet the demands of companies that no longer carry the burden of bloated operations will allow more companies to work smarter, faster and from anywhere.

As virtual companies continue to refine their systems and clients continue to realize the value in receiving better service for less money, the virtual company will gain strength and overtake the outmoded traditional business models. This not only improves efficiencies but tears down geographical barriers to markets and talent.

As we enter the age of the virtual company, let’s review ten things you pay for from traditional marketing agencies:

1. Facilities

Office space is typically the largest expense on the books for marketing agencies. These obligations range from rented space in a shared office park to owning (and owing for) real estate, freestanding buildings and parking facilities.

Virtual marketing companies shed this expense because the nature of the business simply doesn’t require it anymore. Marketing is digital, and print is dying. All the infrastructure that was once housed in a physical location is now replaced by a range of new digital services. Communication is conducted through e-mail, mobile devices, video conferencing and client dashboards rather than on-site meetings and client lunches, the costs of which are ultimately passed back to the client.

The marketplace demands geographic barriers be removed to hire, collaborate and partner with the best talent in the industry. The virtual company’s employees work remotely within a virtual space that accomplishes anything that a physical location provides and more. They are mobile and available at a moment’s notice to meet with clients. Even remote offices, meeting spaces and presentation rooms can be rented by the day or hour, as needed, so as not to waste money on a fixed building that sits there to house all the bloated systems and conventions the traditional marketing company clings to.

2. On-site employees and physical work systems

For many office-based companies, the days of having people gathered in a building to work is gone. For these businesses, the act of keeping people around was just another form of time card punching, rooted in old systems founded on the demand for people to be present and available to coworkers and customers from 9 to 5.

Happy employees do better work, particularly the ones responsible for great creative work.Virtual companies don’t operate according to fixed 9-to-5 schedules. Instead, their systems and employees are faster, more flexible, working within tighter deadlines and using new, more robust project management conventions.

Telecommuting is more prevalent today than ever, for reasons that go beyond avoiding the cost of expensive office space. Happy employees are ones that are not trapped in cubicles, hustling through traffic, burning 30-40 hours and hundreds of dollars a month in commuting to a fixed place to do work that can be done anywhere. The fact is, happy employees do better work, particularly the ones responsible for great creative work.

Moreover, work systems based on having everyone in a centralized office all day are terribly inefficient. To see this, you have to look beyond hard costs and expenditures and consider the man hours wasted on meetings, scheduling, water cooler talk, Web surfing – the list goes on and on.

Replacing the physical office environment are proven virtual office management and collaboration systems like Basecamp, video conferencing, cloud computing and mobile Internet connectivity. Most importantly, the philosophy behind the work is based on maximizing project development efficiencies rather than filling up a 40-hour work week simply for the sake of adhering to convention.

3. Utilities

From security systems, electricity, heating and A/C to cleaning and facility repairs, the auxiliary costs of maintaining a facility can be extraordinary. This is an expense that virtual companies leave behind and don’t pass on to their clients.

4. Landline phone systems

In an age where business is a 24-hour, anywhere and everywhere proposition, corporate phone systems are an enormous waste. Everyone has a cell phone, and most working professionals carry smartphones. For many, the superfluous office phone collects dust, and voicemail systems are rarely used. In a time when most households are shedding the costs of landlines in favor of more flexible and leaner mobile options, many businesses still lag behind.

Agencies that continue to operate from a physical facility must pay to maintain and upgrade expensive landline systems, adding yet more extraneous dollars per hour to their clients’ bills.

5. Office furnishings

Expensive offices, conference room tables, desks, chairs, bathrooms, kitchens, interior decoration and even trophy cases displaying purchased accolades are omitted from the overhead costs of all virtual companies.

6. Computing infrastructure and LANs

So many companies still keep gobs of file and printer servers along with data backup systems, server redundancies, uninterrupted power supplies, routers, switches, cabling, internal e-mail systems – the list goes on.

For virtual companies, the idea of a LAN (local area network) has been replaced by cloud computing, with Web-based service providers, project management, collaboration systems, and applications. These systems are accessible from anywhere in the world, offer true collaboration with anyone and are always backed up and protected.

What’s more, project management in the virtual space allows for new and innovative work habits that promote speed, efficiency and flexibility in ways old companies employing old work systems simply cannot keep pace with.

7. Paper

So many of the slow, dying companies we see today still live in an office with paper circulating all the time. Believe it or not, nowhere is this more true than at your local marketing agency. Also included in this paper-filled world are printers, copiers, fax machines, shredders and a never-ending variety of supplies, all in support of paper trails that lead from the office to the client and back again before ending in nicely climate-controlled filing cabinets.

Virtual companies exist in a paperless world, and the best work circles around those that stay in a paper-driven office. The benefits of going (and staying) completely digital are immense. Digital documents are searchable, sharable, versioned, more secure and viewable on nearly any device. The more files that are kept, used and cataloged in digital format, the more efficiencies will increase overall.

8. Support staff and personnel

When agencies pay for an office, furnishings, phone systems, computing infrastructure and everything in between, they also require additional personnel, time and resources to support those systems, including office managers, receptionists, IT staff, cleaning crews, landscapers and security, to name a few. Thus, these already excessive expenses are further exacerbated and passed on to the client.

9. Restricted geographical barriers

If there’s one thing the Internet has brought to the economy, it’s the expanded marketplace. The business systems of virtual companies are not only set up to take on clients without most of the additional expenses suffered by traditional companies but to hire the best talent available anywhere.

Truth is, many marketing agencies are restricted to their local markets. While these firms would in theory jump on a plane to take on a client nearly anywhere, most find in practice that only local clients are cost-effective given the traditional systems still employed.

10. Debt

The result of all of this expense in a world that is quickly shifting to leaner and smarter operations is that this much of the excess is carried forward in debt that comes at a premium paid to a bank in interest. That ongoing obligation is passed to clients along with the cost of all other inefficiencies.

Virtual companies that start fresh, using smart, lean and flexible systems of operation don’t carry years of bad investments in outmoded, expensive systems on their backs. In fact, as traditional marketing agencies continue to lose clients and market share to these more adept modern firms, the additional debt taken on to stay alive will eventually lead to the extinction of the slow, bloated traditional marketing company as we know it.

photos: Flickr: Christ0ff, chrisdlugosz

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