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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The Six Types of Website Visitors – And How to Serve Each of Them

Every website’s audience is comprised of different kinds of visitors, and those people can almost always be broken down into one of 6 distinct categories. Visitors in each of these categories share similar needs and goals on the website, which means that by understanding the needs of each category and ensuring that your website does what it can to meet those needs, you can better serve those individual users. In this article, we will take a high-level look at the 6 categories of visitors common to almost all websites. We will also explore some of the characteristics of each of these categories and what you can do on your website to cater to each of them.

1. The Browser

The first group of visitors we will look at are those that are “just browsing” the site and in their earliest stage of research. These visitors may have need of the products or services that you offer, but they are far away from the point of purchase. Currently, they are seeing what is available so that they can learn what their options are. These visitors are looking to be educated and there is a prime opportunity for you to establish a strong, early-stage relationship with these visitors. To serve the needs of this “early stage research” group, your site should include content that educates visitors. By offering this content, you answer your visitors’ questions and become a trusted source of information. This is a great way to begin building a relationship with people, one that you hope will eventually turn them into customers! Many companies do not like to accommodate this early stage research group because they are so far away from the point of purchase and many visitors in this category will never turn into actual customers. Those companies prefer to focus their efforts on some of the categories which we will cover shortly, those where people are closer to making a purchase and therefore much easier to sell to. This is another reason why this group of visitors offers you a unique opportunity. Not only can you establish an early relationship by offering helpful information, but many of your competitors may have elected not to cater to this group, setting your company and your site apart for these “just looking” researchers. Make basic information easy to find on your site. Consider including some kind of “search tool” that allows these early stage researchers to query the information that they are looking for and find the exact pages of your site for that content. You can also consider adding a “101-style” page of a “FAQs” page that contains the basic questions and information this group of visitors may be after.

2. The Comparison Shopper

The next group of website visitors are those that are further down the road of being ready to make a purchase. They have been educated and largely know what they are looking for in terms of the product or service they need, now they are trying to determine who is the right company to provide that to them. They want to know what sets your company apart and why they should work with you instead of with someone else. In a way, these visitors are also looking to be educated, but not on the general aspects of what you do. Instead, they want to know about your company specifically. These people are motivated and will likely make a commitment soon. Now is your chance to show them why that choice should be you. To cater to this audience, consider adding pricing to your website. This is not always appropriate or even possible, but price is one of the deciding factors in almost all purchasing decisions, yet many companies elect to leave pricing off their website because of fears that they will show their hand to competitors (more on that later). If you can add pricing to your site, do so! Even if you are not the lowest, adding pricing has value because so few of your competitors have pricing on their sites! This sets you apart and, for some visitors, it may immediately answer a major concern for them (“what is this going to cost me?”) and, if that price is what they were hoping for, you may be able to seal the deal right then and there. Besides pricing, other helpful information that you can consider adding could be warranty or service information, average timelines for the work that you do, or any other content specific to your organization and offerings.

3. The Decider

The next logical group to cover are those customers that are absolutely ready to buy. They have been educated on both the products or services that you offer as well as on what sets your organization apart. They have decided that you are the right fit for them – now you need to make the purchasing process as easy as possible so you can close this deal! If your website actually coverts business online, meaning you allow for online purchasing or registration and that is how you gain customers, then make sure that the check-out or registration process is simple and working! I am always amazed when I see a website that does a great job educating visitors and differentiating their company, but a technical glitch prevents visitors from taking that final step and becoming actual customers! Error messages that come up during checkout or registration will destroy the relationship you have been working hard to forge, so be sure that your site is up and running as intended! You should have some kind of “regular checkup” planned for your site. Waiting for customers to report to you that something is broken is waiting too long, because many customers will never report that problem to you - they will simply take their business elsewhere. This is why your site needs to be working as intended always – and you need to have a process in place to review the site’s functionality regularly. If you do not allow customers to convert online, but they instead need to call to schedule an appointment with your company, then make sure that it is obvious that they need to do this and make sure your contact information is easy to find! Furthermore, consider doing away with automated phone systems whenever possible. A motivated buyer who picks a phone and is greeted with a too-long, robotic welcome message is often as much of a deal-breaker as a website that throws errors. You’ve convinced this person that your company is the right fit for their needs, now greet them with a human touch and stay away from the automated systems.

4. The Familiar

So far, we have looked exclusively at net new customers, but one of the best sources of new business for any company are their existing clients. While your site needs to appeal to new customers, it should also speak to existing ones who are familiar with your company and happy with your services. In many cases, customers may work with you for one specific product of service, unaware of other services you offer as well. Your site can make these customers aware of your full range of offerings and strengthen the relationship you have with them. Your website also allows you to inform existing customers about important updates or announcements that may affect them. These could be simple hours of operation changes for your company or other updates that they should be aware of. Remember, if you started out a relationship by being a thought- leader and provider of useful information, that should not stop once you are engaged with those customers. Consider adding an ‘Existing Customers’ section to your site with this type of information. You do not necessarily need to password protect this information, assuming it is not client-specific and sensitive, but rather allow anyone to view it. In this way, you can give existing customers useful information and show other visitors your commitment to long term relationships with your clients!

5.The Applicant

Stepping away from the ‘customer’ side of your website’s audience, there are other visitors to your site that you should consider. One of these is potential new employees. If you site has a ‘careers’ or ‘job openings’ page, then this is likely where potential new employees will be looking. You do not need to give these pages front-and-center, top-level billing - most job seekers are motivated enough to find this content even if it is not given the same level of prominence that you give you customer-oriented content (and if that job seeker is not motivated enough to find the link, you probably don’t want to hire them anyway). In addition to the actual job listings, however, you may also want to consider adding some content about what life is like at your company – your ‘company culture’, for instance. When you are looking to recruit the best talent out there, they will want to know more about your company than just the hard facts covered in a job listing. This is where a little information about your company culture can really come in handy and help you appeal to the best of the best.

6. The Competitor

Earlier I mentioned that many companies do not put pricing on their website for fear that their competition will find it. This doesn’t end with pricing. I have seen companies “hide” content behind registration systems, or elect to leave it off a site altogether to prevent competitors from gathering that information. In almost all cases, this is a bad idea. After all, if you make your information difficult for competitors to find, you also make it difficult for actual customers to get that same information. Yes, there are times when the information you provide to customers is so individualized or sensitive that you could not make it public on your site, but that is an edge-case. For most businesses, the only reason they elect to leave this content off their site is that aforementioned “fear of competitors getting it”. Here’s the reality, however – if your competition wants that information, they will get it. If they are motivated to get that info, they will jump through the hoops you set up. Customers, however, will not generally go to those lengths. So by “hiding” content from competition, you really only keep it away from the very people you want to speak to – new customers! Do not be afraid of your competition. Be bold and put your content out there for all to see. One of two things will happen. Either your competition will follow suit and put their info out there as well, which allows you to compete on a level playing field, or they will continue to hide it away, which shows customers how open you are and often makes you the more appealing choice. Either way, by making your content easy to access for all categories of visitors to your site, to do the best job of serving the ones that matter to you most.

Appealing to all visitors

By understanding the needs of the visitors your website has, you and your web or marketing team can make the right decisions to best meet the needs of all visitors.

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Mastering Tribe Marketing

Introduction

In part one of this series, Tribes in Today's Marketing, we established a foundational understanding of what tribes are, how and why they form, how they've evolved and how this has redefined the marketplace.

Now we turn our attention to how business growth is achieved today by identifying, understanding, joining and, in due time, leading the tribes that are relevant to your business and your bottom line.

Identify your tribe

When you are marketing your product or service, you strive to understand your target audience. Certainly you can map out the usual demographic variables – age, gender, income and location. These are easy to understand, but to participate and ascend to leadership in your tribe, you need more.

Chances are, your tribe doesn't exist around your direct offering in and of itself – either specifically around your brand or even your product or service in the generic sense.

More than likely, your tribe will coalesce around an idea or value that surrounds your product.

More than likely, your tribe will coalesce around an idea or value that surrounds your product – whether it's the convenience it provides or the aspect of a lifestyle that it affords.

If you sell golf clubs, the task of identifying your tribe is fairly straightforward. Your tribe is passionate about golf, about improving their game and about having the latest in golfing technology.

Perhaps you're an organic grocer. Your tribe is comprised of people who are conscientious about good health and nutrition and about supporting farmers who grow more natural, healthful foods. These are the people that are ready to take your message and set it on fire.

However, many times the tribes that drive organizations and their products operate at a different level.

If you own the corner coffee shop, you most certainly have something to offer the tribe of people who appreciate good coffee. But perhaps the atmosphere of your shop taps into the passions of a tribe that aspires to lead a cosmopolitan lifestyle. If you sell fair trade coffee, your products might appeal to an entirely different tribe – one that is sensitive to geopolitical issues.

Many times, tribes are about a state of mind. They are comprised of people who live a certain way and who care about certain things. In this way, the challenge is not so much about analyzing demographics but identifying those whose shared passions align with yours.

Locate your tribe

Tribes are never static. They exist with purpose. They are living life and solving problems. In order to continue being relevant to and meeting the needs of their members, they must evolve. This requires a platform – if not multiple platforms – where they can meet, discuss and debate ideas, share news and continue the ongoing conversation around their passions.

Tribes are never static. They exist with purpose.

They're on message boards; they're talking in forums; they're in the blogosphere; they're connecting with each other on Twitter. In some cases, they're even gathering and meeting in person.

Most of the time the communities that you are looking for are not centered in one place, and there's rarely an obvious sign that reads, “This community lives here.” If you sell coffee, you can't just go to coffeeisgreat.com and find people who are talking about how much they love coffee. However, if you've identified your tribe as well as their passions, needs, wants and fears, it's a lot easier to find them.

Interest-based tribes vs. relationship-based tribes

So far our focus has been primarily on interest-based tribes, which form when people connect around a shared passion. However, social media allows for a new type of connection and thus a new type of tribe – one that forms based on how its members know each other, whether through work, family or location.

These organically created tribes are not bound by any one common interest but rather by the shared goals and interests of life that are relevant to us all. We turn to these tribes for help getting things done, for solutions to everyday problems and for guidance to improve the quality of our lives and the lives of those around us.

Relationship-based tribes and local business

The power of these types of tribes is fairly significant when you consider the nearly limitless aspects of life that we all have in common. Most of us get haircuts, wear shoes, do laundry, watch TV, pay utility bills, buy groceries, own cars, improve our homes, raise children – the list goes on almost indefinitely.

For all of these things, we rely on our tribes of family, co-workers and neighbors for helpful advice and recommendations. As a result, small businesses have a tremendous opportunity to thrive within these tribes if they know where and how to find them. The answer is social media.

For example, if someone has a wonderful experience with a local mechanic, they don't log in to greatmechanics.com and evangelize for Mike the Mechanic. They do, however, tweet about the great service they received. They might even take this one step further and make Mike a member of their online community by connecting themselves with his business page on Facebook and sharing his website with friends living nearby.

In fact, it is not uncommon for the genesis of an interest-based tribe to start with relationship-based tribes talking about a brand and sharing its message.

In other words, if you connect with members of 50 family-based tribes, inevitably these people will connect to form their own community, and your message will begin to spread virally, feeding off of its own momentum to foster the growth of an interest-based tribe.

Become a member of the tribe

Membership doesn't begin the day you start participating in the conversation. You must earn the respect of the tribe in order to become one of them.

Don't come in and immediately start selling, or you'll be ousted swiftly and permanently. Better yet, don't even start by speaking. Listen first and gain insight into the culture within.

Most tribes have evolved over many years and have developed their own rules, perspectives and goals, and building credibility requires an appreciation of these nuances. Read through past conversations to understand the history and the passion surrounding the issues. Learn what's funny, what's serious, what's cliché, what's typical, what people want and what turns them off.

When you do start participating, the one and only rule that applies is to be real. Don't approach the conversation as a self-motivated, faceless corporate salesperson. Come to serve the tribe and its goals. Be yourself – a person with a budget, family, needs, problems and passions just like everyone else.

If you are in the business of doing what you love and you believe in what you do, then talk about it honestly when the time is right without bias or agenda. You must become a trusted member of the tribe before you can begin leading it.

Rule the tribe

The process and path to tribe leadership is unique for each community. However, all tribe leaders posses certain qualities that allow them to ascend to the top.

They are fearless. They are innovators. They challenge the status quo. But, above all, they have built a consistent reputation on standing for the tribe.

As time goes on, after you have proven that you are driven first and foremost by the advancement of the tribe, you'll gain footing as more than just another trusted, non-biased member. The tribe wants to know that you're listening and leading. They want to know that someone is there who genuinely cares about meeting their needs. If you can earn that level of trust with them, they will not only buy from you every time, they will spread your message like no marketing campaign ever could.

This is where tribe leadership truly runs contrary to business models rooted in decades of traditional marketing.

Today, it is more important to be trusted than to sell. Tribes are founded on trust, and trust cannot be achieved with the tactics of old marketing. It is true that tribe leadership and direct selling can both generate sales revenue – at least in the short term. However, while gaining the trust of your tribe is the more indirect path, in the end, the organization that makes a long-term investment in tribe leadership will ultimately achieve the greatest number of sales and claim ownership of the market.

In part three of this series, we'll cover how the influence of tribes extends beyond promotion and actually shapes how business itself evolves around the tribe.

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