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.

---

The Who, What, When, Why and How of Successful Email Marketing, Part II

Email marketing: it’s not the newest, shiniest weapon in your business growth arsenal. But there’s no denying that it’s still a highly efficient and cost-effective way of communicating with your existing customers as well as new prospects. But don’t let the low barrier to entry lull you into a false sense of security. There are certain fundamentals you must follow if you want to create a campaign that captivates and motivates versus one that is ignored and condemned to the trash folder. In part one of this series (http://www.famefoundry.com/11041/the-who-what-when-why-and-how-of-successful-email-marketing-part-i/), we examined the quality of the recipients to whom our campaigns are sent and solidified a strategy for when and why to send them to ensure that we do not overwhelm those recipients with messages that are unimportant or unnecessary. Now, we’ll turn our focus to the remaining two fundamentals of email marketing success: what we will say and how that message will be delivered.

The How

No matter which email marketing platform you use to create and send your campaign, all include templates that provide designated areas for content that can be easily edited. The issue with these templates, of course, is that they are, well, templates. As a result, when you use them, you run the risk that your emails will look nearly identical to others that your customers receive, and simply adding your logo is not enough to create real differentiation. As a result, used as-is, they can make your marketing campaigns look cheap and unprofessional. This is why customization is a must. All of these email templates are built with HTML, the same programming language used to construct websites. Behind the scenes are code and images that can be edited to create a more custom-tailored look and feel. Due to the highly technical nature of making modifications within the HTML code, this is probably not something you should DIY but rather entrust to your web development team. They can shape and refine these pre-existing templates or even create a completely unique template design from scratch that integrates seamlessly with all elements of your brand’s visual identity (i.e., your website, printed materials, etc.) and sets you apart your competitors. Whichever approach you choose, this represents a relatively small one-time investment that will pay great long-term dividends as you use your branded templates time and time again. Ideally, you’ll want to establish a few different email layouts that can be used for various purposes, such as newsletter-style content, major announcements and perhaps service alerts or other time-sensitive notifications. The template formats you require will of course depend on your business needs, but by having a few on-hand to choose from, you can ensure all of the email communication that you send reflects well upon your brand.

The What

Subject, subject, subject

No matter how beautifully designed your email might be, that design isn’t worth the pixels it’s transmitted on if your message goes straight to the trash unread. Your subject line is the make-or-break factor that will determine whether the recipient will grant you even just a few seconds of their precious time and attention. A line that’s boring and unimaginative provides zero motivation for them to give your message a second glance. One that’s too over-the-top screams “SPAM!” and is just as likely to be ignored. Subject lines that are too long, written in ALL CAPS, filled with exclamation marks or intentionally deceitful (e.g., including “Re:” to make the email appear as if it’s a direct reply to a message from the recipient) are guaranteed to work against you, so avoid them at all costs. Effective subject lines are neither vague nor dull. If you received an email with the nondescript subject line “News Update,” would you read it? Neither will your customers. Similarly, the subject line “April Customer Newsletter” explains what the email itself is, but it offers no insight into the content of its message. For my own company’s email newsletters, we have eschewed these types of easily disregarded subject lines in favor of more descriptive ones that tease the content. In doing so, we have achieved much better open rates. One way to boost the success of your subject line is to frame it in the form of a question, such as “Are you considering a move to the cloud for your business?” or “Do you know the reasons companies usually struggle with a move to the cloud?” Those two subject lines are ones I actually tried recently along with a more straightforward one – “Challenges of Moving Your Business to the Cloud”. While all three saw relatively good open rates, the two that posed a question to the recipient well outperformed the other. Start paying attention to the emails that land in your own inbox. Which subject lines catch your eye? Which do you gloss over without a second thought, and which ones prompt you to hit the “delete” button immediately? Soon you’ll begin to discern which types of lines are most effective, and you can apply these techniques to your own campaigns.

Inform, don’t overwhelm

Now that you’ve formulated an attention-grabbing subject line that will motivate your recipient to open your email, the next challenge you must conquer is the content of the email itself. All too often, companies try to communicate too much via their emails, with the end result being that the recipient is too overwhelmed to fully process and take action on the information being conveyed. Many email newsletters fall into this trap, with company announcements, blog articles, product highlights and more crammed into a single message. In an attempt to make sure the recipient has access to every piece of information that could possibly be of value to them, the e-newsletter becomes a scattered mess that lacks organization and direction. Additionally, this information is usually presented in full within the body of the message itself, instead of prompting the reader to click a link to access the full text via a web page. As a result, the number of ideas coupled with the depth of their presentation spells doom for the campaign. A quick scan of the message is enough to turn the recipient away because they have no desire to invest the time necessary to sort though the barrage of content to find the one or two bits of information that might be of use to them.

Be a tease

Avoid this “much too much” trap by editing and teasing your content. Include no more than three key ideas per newsletter. Sure, you may have more than three things to say, but you must be ruthless in your selection process, and save the rest for another missive or another medium. Next, present those three (at most!) ideas in the form of short teasers. A title, a short intro to the news item or article being highlighted and an accompanying image are all you need to pique your reader’s interest – along with a link prompting them to read more on your company’s website. By doing so, you’ll ensure that your email newsletter offers a clean, visually appealing presentation that can be scanned and processed in a matter of mere seconds. If a reader is interested in one of the three key ideas you’ve presented, they have the option to easily obtain more details for themselves. Of course, this approach has the added benefit of driving users to your website and increasing that site’s exposure to new audiences. When I suggest this “click to read more” approach, the reaction I most often receive is that readers “don’t like to click a link” but rather want to read the article in their email message. I have no idea where this belief came from, but it is false. Users are more than comfortable with clicking links, especially if it comes from a trusted source (see Part I for the benefits of using a carefully curated email list of customers who know who you are already). The Internet is driven by clicks, so do not be afraid to embrace this behavior! By mastering these five fundamentals of successful email marketing – the who, what, when, why and how – you can help to ensure that your messages are a welcome presence in your recipients’ inboxes, that they are read and, most importantly, that they motivate your customers and prospects to take the action you desire.

---

Is Your Website Ready for the Tablet Revolution?

The revolution is here.

When Apple launched the iPad last year, it carved out a new category in the mobile device marketplace. With the release of the iPad 2 and newer challengers like the Motorola Xoom and the Samsung Galaxy now joining the fray, the market continues to heat up as more and more users opt to perform everyday tasks like browsing the Web, sending email, watching videos and playing games on tablet devices rather than their desktops, laptops or netbooks.

In fact, according to a recent study conducted by Nielsen, 35 percent of tablet owners polled said they now use their desktop computer less or not at all while 32 percent of respondents said the same of their laptop. The top five reasons cited for preferring the tablet over a desktop or laptop were portability (31 percent), easier interface (21), start-up speed (15), convenience (12) and size (12).

Additionally, Forrester Research forecasts that tablet sales in the U.S. will continue to climb sharply, from 10.3 million in 2010 to 24.1 million in 2011 to 44 million in 2015. The firm also projects that by 2015, 82 million people in the U.S. will own a tablet, a figure which represents one third of the total online population.

What do these numbers mean for you? With each passing day, the likelihood that consumers will be interacting with your brand via a tablet rather than a desktop or laptop is increasing. As we demonstrated previously, not all brands can or should release a native app, and even if you do, you shouldn’t neglect those users who will be surfing your primary site on a tablet-based browser.

As a result, it’s up to you to make sure that your website evolves to provide these users with a high-quality, hassle-free experience, or else you’ll risk losing them to competitors that do.

Here are nine critical elements you must examine now to make sure your site will continue to serve the needs of your customers and support the growth of your business in the era of the tablet:

Balance of content vs. interface

Tablet screens are much smaller than desktop or laptop screens, yet the primary use of tablets is for consuming content. Therefore, it’s important to make sure that your website’s interface is clean and clutter-free so that you make optimal use of the available real estate and allow your content to take center stage.

Typography

The type on your website must strike a happy medium for tablet users. If it’s too small or condensed, it will be illegible without zooming in. If it’s too big, users will be forced to scroll more than necessary.

You must find the ideal balance of font face, font size, line spacing and line length so that your content is pleasant and comfortable to read at the distance at which a user would naturally hold a tablet.

Color and texture

Color and texture are more than cosmetic niceties. When applied in strategic ways, they can go a long way toward improving the usability of your site for tablet users. For example, a subtle gradient on top of a button can provide a visual cue to users that it is an actionable object.

Keep in mind as well that with tablet users, you’re fighting finger smudges and glare for visibility. Bright background colors and patterns can reduce interference from these elements, while solid black tends to make them more distracting.

Buttons and links

When it comes to the tools your visitors use to travel around your website, size matters.

For tablet users, the clicking and scrolling of a mouse are replaced by touching and swiping gestures. As a result, navigation actions are less precise on touchscreens. You must allow a greater margin of error by creating buttons that are the size of a fingertip rather than a cursor.

Also, make sure to allow a little breathing room around your buttons and links, especially those that live in your site’s main navigation. Nothing will frustrate a user faster than being directed to a different page than the one they wanted because your links are crammed together too tightly.

Interface cues

If your website’s interface currently relies heavily on rollover effects, you’re going to be in trouble on a tablet. In the world of the touchscreen, there is no such thing as a hover state. If, for example, you have “previous” and “next” buttons that appear only when the mouse is nearby, those elements will be unavailable to your tablet users.

To create finger-friendly navigation, all elements must be big, bold and obvious. Replace buttons that require users to mouse over them to get a sense of action with style enhancements that draw attention to their “pressability.”

Menus

If your site contains drop-down menus, make sure there are visual cues (such as small up and down arrows) to indicate that the menu is expandable and that the menu remains open on tap.

Alternatively, you might consider streamlining your navigation to eliminate the need for drop-down menus altogether. Instead, you can create a showcase page for each main section of your site that acts as a gateway to the subpages contained within.

Scrolling

Screens on the tablet devices that are currently on the market range from approximately 7 to 10 inches and allow viewing in both vertical and horizontal orientation. As a result, there’s no way to be able to accurately predict what a tablet surfer will see without having to scroll.

The good news here is that tablet device users expect to scroll – not just vertically but horizontally as well. There’s no need to worry about trying to force all your important information to fit “above the fold.” Clean, streamlined design that promotes easy content consumption is the name of the game.

Forms

Many of the most critical interactions between your website and your customers occur through forms, whether it’s subscribing to email updates, requesting more information, logging into a secure account or completing a purchase.

Examine your forms closely to ensure that all fields render clearly. Also, make sure your forms are as streamlined as possible. Trying to complete a long form with many fields on a tablet is cumbersome. While the marketer in you wants to collect as much data as possible from your site visitors, the danger of requiring users to complete too many fields is that they’ll get frustrated and give up, leaving you with no data at all or, even worse, a potential sale lost.

Flash

Apple’s iOS does not – and probably never will – support Flash. Android does support Flash, but the performance of Flash content on Android devices thus far has been less than ideal.

If you have Flash anywhere on your site – whether it’s in the introduction to your site, your navigation menus or video – get rid of it now, or else your tablet users will be plagued with problems. Today there are better, more tablet-friendly options available, such as HTML5 and JavaScript, that can replicate the same effects that once required Flash.

When in doubt, test it out.

The only way to be confident about how well your site performs on a tablet is to put it through the paces on actual tablet devices. While there are some web-based simulators, they aren’t 100 percent reliable since they are ultimately limited by using your desktop browser to render your site.

If you don’t already own a tablet, borrow one or – if all else fails – make a trip to your local retailer and use the display models there.

Be sure to evaluate every element and every page of your site carefully. If possible, recruit other friends, colleagues or family members to do the same, and observe them as they navigate through your site. Because they aren’t as intimately familiar with your site and its nuances as you are, they may uncover stumbling blocks that you might have overlooked.

If you identify any problem areas, seek out the help of a trusted website design firm to address them. While you may have to make an investment in upgrading the infrastructure of your site, it will be money well spent to make sure current and prospective customers can access your site on their device of choice – which is more and more likely to be a tablet.

---