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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Don’t Fear the Reviewer

Does the idea of allowing your customers to rate your products on your website make you uneasy? If so, it’s time to reverse your thinking: don’t fear the reviews; fear what their absence is costing you. Here are four reasons why encouraging your customers to post product ratings will not only strengthen their allegiance to you but also help you capture more sales:

Break through the trust barrier

As we established previously in our article on the culture of the Web, the Internet collective harbors an inherent mistrust toward all corporate entities, and unfortunately for you, retailers are no exception to that rule. On the other hand, peer validation is everything. No matter what you do or what you sell, if people love it and vouch for you, you’ll be strongly positioned for success. In the absence of this corroboration, you face a significant burden of proof to overcome the natural skepticism of the collective. What does this mean for you? You can spend hours meticulously crafting eloquent descriptions for each and every product you sell, but they will never carry the weight of a review that one of your customers spends five minutes to dash off. Reviews demonstrate that you stand behind your products and you have nothing to hide.Fair? Perhaps not. True? Absolutely. It’s all about trust. However, when it comes to trust, you actually get extra credit for the very fact that you do empower your customers to publish their feedback on your site. For new visitors who may not be familiar with your brand or your reputation, these reviews are a badge of transparency that demonstrate that you stand behind your products and you have nothing to hide.

Tip the scales in your favor

Online shopping is a fact of life in today’s world. However, as commonplace as the act of buying on the Web has become, there is always still a lingering hint of uncertainty that resides with customers because they cannot see, hold and judge an item for themselves before committing to the purchase and paying the associated shipping costs. This effect is multiplied for certain types of merchandise like clothing and shoes. I may know that I generally wear a size 11 running shoe, but when deciding between different brands and styles, how can I tell whether my chosen shoe will run true to size, offer the level of cushioning I desire and be comfortable for a five-mile jog? The last thing you want in this situation is for me to give up and go to a bricks-and-mortar store where I can try before I buy, even if it means paying a bit more for that luxury. This is where customer reviews can save the sale by providing the reassurance I need to feel confident that the particular shoe I have selected will meet my expectations.

Turn your customers into salespeople

Returning once again to the qualities that define the culture of the Web, one of the fundamental characteristics of the Internet collective is their compulsive need to share. As a result, when someone buys something that they love, it’s practically second nature for them to talk up their purchase on sites like Facebook and Twitter. This tendency is all the greater when they can boast about a particularly unique find or an especially good bargain, as they seek the approbation of those in their social networks. It’s the virtual equivalent of taking a girlfriend along on a shopping excursion and having her ooh and ah in approval over your selections. Why not give your customers a soapbox to exercise their habitual need to share on your own site, where their opinions can help persuade other shoppers to purchase the same product when it is right there in front of them, just one click away from landing in their cart? One of the most effective customer review systems we’ve encountered is on gap.com. Not only does Gap allow customers to provide thorough evaluations of each item in their own words, but each product can be rated on several different criteria, including overall sizing, fit through the arms, chest and shoulders as well as the type of occasion for which the item is best suited (i.e. work, going out, etc.). If the prevailing sentiment among reviewers indicates that a shirt runs small or tends to shrink in the wash, I know right away to order a size larger than usual, and I can feel certain that I won’t regret this decision when my order arrives at my doorstep. Furthermore, let’s say I’m a little iffy on whether or not to buy a pair of pants based on how they look in the photographs. Rave reviews from those who have already purchased and worn the same item can provide the tipping point that will persuade me to add them to my cart. Detailed and informative reviews give shoppers the confidence boost they need to complete the transaction.As these examples demonstrate, not only will detailed and informative reviews give shoppers the confidence boost they need to complete the transaction, they can also provide enticement to splurge on additional unplanned items. As a result, chances are good that you will yield a greater number of conversions as well as an increase in the total amount of each sale.

Do your own market research

Your customers buy products from you. Inevitably, those customers have opinions about their purchases. If only you could benefit from knowing what their opinions might be. It just so happens that you can, and you don’t have to spend a boatload of cash on a consumer research study to do it. When you invite your customers to post their reviews of your products on your site, you not only open a direct line of communication, but you also send a clear message that you care about what they have to say. Open a direct line of communication with your customers.Better yet, because it is up to the customer to take the initiative to provide their feedback and they can do so with relative anonymity, you can be confident that you are receiving their honest and unfiltered opinion – much more so than if you tried to solicit a response face-to-face or with a formal survey. Although these reviews do not represent a statistically accurate sampling of all your customers, they can be instrumental in revealing insights that can be invaluable in helping you shape your product offering to better meet their needs. Even when you’ve done your homework and made your best effort to provide a great selection of high-quality products that align with your customers’ interests and concerns, there’s nothing like the candid reassurance of those customers to let you know that your instincts were right. You might even find an unexpectedly strong preference for a certain type of item over another, in which case you can consider expanding your offerings in that category. But wait! What if the feedback you receive is negative? You should be equally appreciative of the opportunity this creates to go back to the drawing board and figure out better ways to give the people what they want. Maybe the response is “I like this, but I really wish it had more of that.” Without reviews, this sentiment might never have come to light, and your customers might have just silently drifted away, leaving you wondering where they went and why. Or perhaps your reviews alert you to a problem that emerges when a product is used over a prolonged period of time or in a particular set of real-world conditions. Even the best quality control efforts can’t forecast and circumvent every potential pitfall, but armed with this knowledge, you can take proactive measures to address the issue and make it right.

Open the door to greater success

If you’ve made the investment in creating a smart, user-friendly e-commerce store, why not seize the opportunity to yield the most from that investment by adding functionality that can multiply your sales? If you’re not sure where to begin, let Fame Foundry’s expert web development team help you develop a customer feedback module that is custom-tailored to fit your brand, your product line and – most importantly – your customers.

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8 Business Growth Goals You Can Conquer with Great Content

Content, content, content

Let’s be honest: creating great content on a regular basis can be a real drag.

After all, you didn't get into this business to be a writer any more than to be a salesperson, an accountant or a lawyer. However, just as you can't neglect to fill your sales pipeline or pay your bills or protect your company’s assets, you can't ignore your content.

Why is content so important? Because it's the fuel that propels your business growth engine. Whether you call it a blog, a magazine, a resource library or a newsletter, your content is the one weapon in your arsenal that can help you conquer nearly every challenge of growing a company in today's marketplace:

1. Increasing visibility and driving traffic

You can’t win a customer that can’t find you. And more often than not, today’s customer is looking for you online, which is why it’s critical to optimize your organic search ranking.

People tend to think of SEO as if it's some occult form of black magic. While the practice of SEO is certainly complex, the one thing you must remember is that even though search engines are driven by intricate algorithms, all of those metrics and calculations are founded in delivering high-quality, relevant results that will be the most useful to real people.

Real people value good content. As a result, so do Google, Bing and Yahoo.

There’s no more rock-solid SEO strategy than publishing great original content on a regular basis. As you develop valuable, (legitimately) keyword-rich content that becomes popular through page views and inbound links, your level of perceived authority on that subject will increase in the eyes of the search engines, which in turn will boost your ranking in searches that pertain to your core offering. And the higher you climb in the rankings, the more potential customers will be able to find you.

2. Attracting more targeted traffic

If all you want is to send your site visit stats through the roof, there are plenty of attention-grabbing stunts you can pull to draw sheer numbers.

But numbers don't necessarily equate to dollars. For your business to grow, you need to consistently attract the types of people to your site whose needs and interests are the most closely aligned with the products or services you have to offer.

This is where your content steps up to the plate. When you publish unique, insightful information that appeals to your tribe, you'll attract visitors that will become your fans, spread the word about you, bring their friends and, ultimately, turn into customers.

3. Building trust and converting customers

Bringing visitors to your site is just the first step. Your job isn’t done until you convince them to entrust their hard-earned dollars to you.

The task of building trust with a prospect when you're standing in front of them is a relatively straightforward proposition.

However, you don't always have the luxury of a face-to-face encounter to make a first impression. Instead, more often than not, you're relegated to building trust through a computer screen. And thanks to all the Internet con artists and shysters out there, the burden of proof you must overcome to establish your trustworthiness is a large one.

So what options do you have? You can always sing your own praises in the most flattering and superlative fashion. Of course, that doesn't hold much sway in the absence of solid evidence to support your claims.

Don’t just cross your fingers and hope that your customers will buy into your sales pitch. Instead, let your content make the case for you.

Your content is the proving ground for your expertise. If you’re a big phony and you don’t know what you’re talking about, it will become obvious pretty quickly. But if you have something of genuine value to offer, and you give it away willingly upfront before you ask anyone to spend a dime, that’s where real online trust-building begins.

4. Differentiating your company from your competitors

Your company doesn’t exist in a vacuum. There are plenty of other people who do what you do and sell what you sell. For your business to grow, you must be able to make a compelling case for why people should buy from you rather than the other guys.

This is a challenge that dates back to the genesis of marketing, but in the Age of Information, it’s one that great content can go along way toward helping you overcome.

Make no mistake: your content is not your sales pitch. But if you can provide truly useful information that your customers can’t find elsewhere, you’re making an implicit case for the benefits of doing business with you.

For example, let’s say you’re a general contractor, and you’ve created a comprehensive online resource library for homeowners that covers all things home improvement-related: the latest renovation trends, how-tos for simple DIY projects, advice on upgrades that deliver the best ROI, etc.

This is the type of information that your potential clients will truly value. And by demonstrating your authority, you’ll prove that what you have to offer is much more than just a common commodity, which will even help you fend off lower-priced competitors. Your customers won’t care as much about saving a few dollars if they feel more confident knowing their project is in the hands of a trustworthy expert.

5. Generating word-of-mouth marketing

You live in the world of your products and services. You eat, breathe and sleep your business. Talking about what you do is second nature to you.

The same does not hold true for your customers. They don't go through life looking for opportunities to be your walking, talking billboard.

However, great content has the power to get people talking. Everyone loves information that gives them ways to save time and money, makes life easier or gets their creative ideas flowing.

And in the culture of the Web, we're all hard-wired to be like-button-pushers and retweeters. So when you give your customers good stuff that sparks their interest, they’ll be instinctively inclined to share it with others, and your name will travel far and wide right along with the content you’ve created as it passes through their networks and their friends' networks, too.

6. Expanding your customer base

The interminable task of business growth is identifying sources of new potential customers and finding ways to get in front of them. This quest is what's kept the purveyors of mailing lists in business for decades.

But in today's Web marketing universe, you don't have to shell out thousands of dollars to gain exposure to new customers. Communities exist everywhere around the Web, and your content is your foot in the door.

All you have to do is identify those whose tribes’ interests align with your products or services, and offer to provide content for their websites. In exchange for giving away your valuable expertise, you'll have the opportunity to take the stage in front of a brand new audience of potential customers, who will be more receptive to what you have to say due to the cache of trust conveyed to you by the established leader of that tribe.

If you’re an event planner, for example, you could approach the owner of a popular local blog targeted to moms and offer to write an article on a timely topic of interest, such as “10 Trendy Summer Birthday Party Themes.”

Without ever having to make a direct pitch for your services, you’ll suddenly have a new tribe of potential customers who know who you are, and if you’ve done a good job, will likely be inclined to click through to your website to see what other ideas and information you have to offer. In terms of exposure to your target demographic, your content-driven approach will deliver a greater ROI than traditional advertising ever could.

7. Building community and keeping customers engaged

You wouldn’t hand a customer a brochure and expect them to wake up every day excited to read it over and over again.

The same holds true for your website. You can’t expect to build community around a vanilla site that’s all about you and your product or service offering. No matter how beautifully crafted it might be, there's nothing to keep people coming back. They'll get the basic information they need, and they'll move on.

Great content is the key to transforming your company’s website into the hub of a thriving online community. People don’t want to interact with brands; they want to interact with other people. Content puts a human face on your company and makes your brand approachable. It’s the common ground between your company and your customers.

And not only is your content the spark that ignites conversation, but it's also the fuel on the fire that keeps it going. When you recognize and respond to those who comment on and share your posts, you make them feel like they’re part of something meaningful and give them added motivation to invite others to join the party.

8. Driving innovation

One of the best fringe benefits of the task of researching and writing top-quality content is that it forces you to keep up with what’s going on in your industry.

When you’re trying to build your business, it’s easy to get tunnel vision. You get so deeply immersed in the day-to-day nuts and bolts that you don’t make time for the big-picture thinking that’s required to reach the next level.

Creating content requires you to be a perpetual student of what you do; to be constantly reading and exploring so that you have fresh, exciting ideas to share with your readers.

This, in turn, makes you a sharper, more confident, more agile businessperson. Rather than doing things as they’ve always been done, you’ll be on top of the trends and ahead of the curve, with an overabundance of inspiration for what to try next.

What you put in is what you get out

Just like anything else, what you put into your content it is exactly what you'll get out of it.

If you want your content to help you meet your business growth goals, it has to be the real deal. It has to be meaningful. It has to be unique. It has to be too valuable to ignore. It has to address real problems and issues that are relevant to your customers. It has to offer practical solutions and insightful tips that are so good they’ll eagerly await your next post and gladly pass along your links to others.

Creating content of this caliber takes time. It takes hard work. Most importantly it takes discipline and commitment. If you don't make yourself buckle down and hammer out the good stuff week after week and month after month, you’ll quickly lose your audience to someone who will.

On the other hand, when you faithfully publish the type of content your customers crave, the reward is a sales engine that’s so powerful and so robust, you’ll put your company in a competitive position anyone would envy.

Read more:

Shut Up and Blog Already

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