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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Left in the Dark? The Pitfalls of Taco Bell’s #OnlyInTheApp Social Media Stunt

Taco Bell recently unveiled a new mobile app, available for both iOS and for Android, that “gives consumers complete access to every Taco Bell ingredient to create what they want, when they want it – all in the palm of their hand.” The app allows customers in drive-thru or in their dining room to order and pay for items directly on their mobile device. The app itself may be a great idea, but the marketing push behind this new addition from Taco Bell is certainly raising some eyebrows. The company decided to “go dark” on their social media platforms and on their website, replacing their normal content with a black background and a large message that says that “the new way to Taco Bell isn’t on the Internet, it’s #onlyintheapp”, using a hashtag that they have created for this campaign. While I can appreciate the company’s desire to focus heavily on marketing this new feature, doing so at the detriment of all their other messaging and marketing channels is short-sighed. In this article, we will take a look at the possible benefits of this “all in” approach and why Taco Bell may have done this, as well as the pitfalls of this type of campaign and putting all your eggs, or in this case all your tacos, in one basket.

Information on demand

We live in world where immediate access to information is now expected. Have a question? You can whip out your phone or open the web browser on your desktop computer and hop over to Google for the answer. The same holds true for the services we use or products we buy, including menu items and locations or contact information for restaurants. Having worked on websites for restaurants in the past, I can tell you from experience that this information, menu and locations/contact, are some of the most heavily requested pages on those sites. Taco Bell’s current marketing approach, and their decision to “take down” their normal website in favor of a marketing message and nothing BUT a marketing message, is not a customer-friendly decision because it runs contrary to the information on demand culture that our customers have come to expect from websites. Now, to be fair, Taco Bell did not actually take down their entire site. If you run a search engine query for “Taco Bell Menu”, you can find those pages still live on the Web, but you have to work for it! Their current homepage, which is where their visitors will likely go, includes no links to the other pages of the site. If a customer needs menu information, or if they are looking for something like a location’s address or phone number, they will have to go out of their way to dig that information out. That is asking a lot of a person and few customers will go to those lengths.

What they want versus what you want

Taco Bell’s current campaign is a perfect example of placing a company’s needs before their customers’ needs. The marketing message that now dominates Taco Bell’s media properties is what they want people to know about. There is nothing wrong with promoting a new service or product, but by removing easy access to the rest of the information their customers may want, they are ignoring their needs in place of their own. What if a customer comes to the site to find nutrition information, only to be greeted by a message to download this new app. Is that a good customer experience? Perhaps they do not have an iPhone or Android device. This message is lost on them and they are at a dead end. This is a lost opportunity. Saying that this information is “not on the Internet” and instead forcing them to download an app is like saying “we don’t care how you want to access this information, we want you to download an app and we won’t give you that information unless you do so.” That may sound harsh, but that is absolutely how this decision comes across. Yes, there is value in putting a marketing campaign front and center in big way like this. Taco Bell’s new app is certainly being talked about, but most of the chatter I am hearing is not about the app itself or how great or convenient it is, it is about the company’s decision to market it in this way, with the rest of their messaging and information absolutely non-existent. A better approach would have been to market this new app in a big way with a bold, prominent placement across all their media channels, but to also include easy links to the normal website and social media content. With that approach, they could still ensure that their message comes across loud and clear, which is what they want, but they would not be ignoring what their customers want because that information would still be easily accessible.

Ignoring the conversation

Another interesting (and not in a good way) aspect of Taco Bell’s “going dark” campaign is what they are doing on social media. Their Facebook page currently includes only 1 post with a message similar to their website about the new app. The Taco Bell logos and everything else have been removed. What this page does have are comments – 1,194 of them as of this writing. If you read through those comments, you will find people complaining about the removal of the website content, the lack of delivery services, and many random slams on Taco Bell in general. Bottom line, there is a lot of negativity on this page, but Taco Bell is nowhere to be found in those comments. Their “going dark” campaign also includes them removing themselves from the conversation. This is not how social media works. Social media is all about engagement and conversations. If you put something out there, especially something like a new service like this, you should be prepared to answer customers’ questions and have those conversations. Taco Bell has yet to do this. Instead, they have “gone dark” and are nowhere to be found.

A better approach

When you have an important message to convey to your audience, you want that message front and center. There may be the temptation to take the same route that Taco Bell did and remove all your other content in favor of that message. Yes, people that visit your site will see it because that is all that there is to see, but is that the end goal? No, you do not want customers to only see your message, you want them to see your message and take action. Preferably, you want them to take the action that this campaign is focused on, but if they cannot do that, you do not want them to hit a dead end. In the case of Taco Bell, someone without a mobile device that can download the app, or someone with no interest in downloading that app, has hit that aforementioned dead-end. There is nowhere else for them to go other than away from Taco Bell. That is a lost opportunity. For your own marketing campaigns, you want to ensure that if you put a message front and center, you also make other paths available for people who that message may be lost on. Bottom line, you do not focus on one message or campaign at the expense of everything else you have to say and offer – and you never take yourself out of the conversation! When customers are talking about your company and what you are doing, that is a golden opportunity to respond and start a conversation. If you instead decide to “go dark”, you miss that opportunity completely.

In closing

I expect that this campaign is a temporary one for Taco Bell. Soon enough, their website and social media will be back to normal, but in the meantime, all I see in this marketing push are missed opportunities and ill-informed decisions. When planning your own campaigns and messages, speak to your marketing team or agency and always ask yourself whether your plans focus too heavily on what you want instead of what your customers need. The key to a successful campaign is finding a way to address both of these needs and tie together your company’s goals and those of your customers.

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SEO the Right Way

Search engine optimization, or SEO, is a term you’ve undoubtedly been introduced to, likely by spammy email solicitations or SEO “gurus” who promise to “fix” your site so that it rockets straight to the top of search engine results.

But is this the right approach? After all, search engines don’t buy your products or services – people do. As a result, it’s much more important to optimize your website so that it provides the best possible experience for human users, not for Google.

In this article, we’ll examine why optimizing for real people – and better serving the needs of your website visitors – will ultimately yield greater success in capturing and converting new customers. We’ll start by letting you in on a little secret that those so-called SEO “specialists” don’t want you to know: by optimizing for humans, you will also be optimizing for search engines.

Why the “SEO-Only” approach fails

Before we dive into the principles and benefits of optimizing for humans, let’s first take a look at what I call the “SEO-only” approach and why it often falls short of expectations.

Consider this scenario:

You’re in the market to purchase a certain product or service, so you type some relevant keywords into your search engine of choice. You click on the top result, and as the website loads in your browser window, the next words out of your mouth are, “what the heck is this?”

The site is a confusing mess, and there is no clear indication of what the company does, what sets them apart or what you steps you should take next to progress through the site. Frustrated, you quickly click your browser’s “back” button and select a different result from the list, hoping to land on a site that will give you information that is easy to understand and seems trustworthy.

How many times has this happened to you? If you’re like me, it happens all the time.

In the example above, the website was “optimized” for search engines, and it ranked favorably for key search phrases. This is good, as it means that when users are searching for the products or services the company offers, their website has a good chance of appearing on the first page of the search results and being clicked on. However, the effect of bringing this visitor to the website was rendered null and void because the poor user experience it offered drove them away just as quickly as they landed.

In other words, from an SEO standpoint, the site is successful, as it ranks high for the right keywords and phrases. From a business standpoint, however, the site is an abject failure. It did not convert a customer. Even worse, it drove that customer away and directly to the site of a competitor. More often than not, this is what will happen if you optimize for only for search engines and not for actual people.

The complete package

The reason the SEO-only approach does not work is because it focuses only on a single piece of the picture – achieving a high ranking.

As we’ve just seen, however, capturing a lead because of strong ranking but then losing their business due to a poorly designed website ultimately yields no benefit to your bottom line.

To truly succeed, your website needs much more than just favorable search engine placement. The complete packages includes:

• Quality design
• Intuitive user experience
• Relevant, useful and timely content
• Support for a variety of devices
• Findability

Quality design and intuitive user experience

These two items often go hand-in-hand, especially when we are talking about optimizing websites for humans. The value of top-notch design is often underestimated and seen as little more than “making things looks nice,” but quality design is about so much more than that.

A quality design is certainly one that is aesthetically appealing, but it is also one that is easy to use. The simple truth is that your customers – and potential customers – do not come to your website to admire its visual design like a work of art hanging in a gallery. They come to your site to accomplish a task, whether that is to gather information, book an appointment, make a purchase, etc. They come with a specific purpose, and a quality design is one that does not distract them from that goal. Instead, it helps them fulfill it.

The scenario we described earlier of a user visiting a website that ranked high in search results only to immediately abandon the site due to a confusing user experience is a great example of why the quality of the design is critical to your site’s success. It helps ensure that the site visitors you attract are ones you can convert into actual business.

Additionally, a great user experience is one that happy visitors will share with others through word of mouth or, perhaps, via links on social networks or blogs. A quality design and user experience can help turn your satisfied customers into promoters of your website. And as we will see in a moment, inbound links to your website can be a very valuable asset.

Relevant, useful and timely content

While an elegant design and refined user experience are very important aspects of optimizing your site for humans, great content is what gives your visitors a reason to come back time after time. Providing value-add resources that are relevant, useful and timely – and that your site visitors actually want – is how you optimize your web content for humans.

You may be proud of the awards your company has won, the great things that have been written about you, your leadership team’s accomplishments or your company’s charitable outreach efforts, but that’s probably not the content your audience is looking for. Therefore, if you’re organizing your site around showcasing this type of content, you are only serving your own needs, not your visitors’.

Optimizing your web content for your visitors means putting yourself in their shoes. Ask yourself what they want to see, and then put that content front and center. All of that other stuff can still have a place on your site, but not at the expense of elevating the content your audience is actively looking for. That content must be given top priority.

You also need to make sure your content is useful and timely. If something is no longer relevant, remove it or relegate it to your archives and replace it with something that is new and interesting. Publishing a steady stream of fresh content is one of the best ways to encourage links back to your website from visitors who found that content useful.

What about inbound links?

One of the tried-and-true tactics of good search engine optimization is increasing your number of inbound links – that is, links from other sites that point to your own site.

Search engines treat these links as votes of approval for the quality and relevance of your site and factor the number of links you have established into their rankings calculation. Therefore, the more quality inbound links you have, the better your chances of climbing the rankings.

The practice of building inbound links is not an exercise in quantity over quality, however. Anyone claiming that they can get you “5,000 inbound links quickly!” is someone you should run away from – quickly! You don’t want these links, many of which come from link farms and other spammy websites. Search engines are smart enough to discern these type of no-quality links, which can actually send your ranking plummeting or, even worse, get your site blacklisted entirely.

What you want are high quality links from real people who have read your content and want to share it with others. Whether these links live on social media platforms, articles, blog posts or another site’s brochure pages, they are produced when a thinking human consumes your content and says, “Hey! That was really good. Other people will find this valuable, too. Let me link to this page.”

These links will both put your website in front of more people who are interested in the types of content you publish and help increase your search results rankings at the same time – a perfect example of how optimizing for humans simultaneously achieves the objective of optimizing for search engines.

Support for a variety of devices

Long gone are the days when the only way a user would view your website would be when sitting in front of a desktop computer with a large monitor.

Today, you can be assured that your website is being accessed via a staggering variety of devices with an array of different screen sizes. From handheld smartphones to tablets to laptop computers to the aforementioned desktops, your website must work well on a wide range of devices in order to be successful.

If you’ve ever searched for something on your phone, found a listing that looked promising and touched the link only to be presented with a website that was designed for a large screen only, you know what a painful experience that can be – that is, if you even bothered trying to use the site. Most visitors in this situation will just leave right away and look for another site that works well on their device. Again, the site in this scenario we’ve painted was optimized well for search, and it came up favorably. But yet again, the opportunity to convert was squandered due to the site’s poor user experience – in this case, the experience of using the site on a mobile device.

Once a visitor is gone, they are likely gone for good. Expecting them to come back to your site later when they are on a desktop computer where the site will perform better is wishful – and erroneous – thinking.

Optimizing for humans means making sure your website works well for them the first time they visit the site, regardless of the device they choose to do so with.

Findable websites

Yes, this is where the traditional SEO approach of creating high rankings for relevant search terms comes in.

When a searcher is looking for the products, services or information your site offers, you want that site to rank as high as possible in the search engine’s results to give it the best chance of being seen and clicked.

Achieving this high ranking is where most traditional SEO services end, however. As this article and the scenarios illustrated so far have shown, good rankings are just the start. What your site does with the traffic it captures through organic search is equally important – and this is where human optimization and all of the elements it encompasses (quality design, relevant content, device support, etc.) come into play.

Creating a “findable” website is about more than just attaining high search engine rankings, however. You want your website to be in front of someone whenever they are in need of your products or services.

This could mean a search engine result, but it could also mean a referral from a trusted friend or colleague. It could even mean a link on a social networking site or blog.

By optimizing for humans and presenting them with truly useful content within the framework of a design that is easy and enjoyable to use and that works well on any of the devices they may use to access the site, you’ll effectively encourage them to share your site with others.

This added exposure helps increase the findability of your website and your chances of having it land in front of real people who are actively looking for what you have to offer. This is the power of optimizing your website for humans.

Humans first, last and always

Optimizing your website for humans means making choices that will help them obtain the information they need from your website or perform the task they have set out to accomplish quickly, easily and without encountering any obstacles along the way.

It means putting the needs of real people first and foremost in all decisions that shape the design and content, with the understanding that by doing so, your site will be more appealing to those people, which can in turn make it more appealing to search engines, which will attract more people and links to the site, which will make it even more appealing to search engines, and so on and so forth...

It’s a cycle of success that starts with making sure that every element and every aspect of your site is carefully chosen and crafted to create an experience that is optimized for the human beings who will ultimately decide whether or not to purchase your products or services rather than just for the search engine algorithms that can only decide where your site ranks on a page.

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