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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Small Changes, Big Impact: 5 Things You Can (and Should!) Do Today to Boost Your Website’s Performance

Every spring it happens like clockwork: the temperatures get warmer, the days get longer and everything in nature becomes more vibrant and colorful. Along with these changes in the great outdoors comes the irresistible urge to clean house and embrace a fresh start. Why not keep that motivational momentum going and apply it to your business – and, more specifically, to your website – as well? After all, there’s no time like the present to sweep away the old and outdated and bring in fresh new ideas and technologies. But you don’t necessarily need to dive head-first into a full redesign and all of the time and expense that entails to reap measurable results. Instead, here are five small steps you can – and should! – take today to ensure that your site is up-to-date, relevant and doing all it can to bring you new customers and grow the community around your brand:

1. Reposition your contact form.

For most website owners – especially those in service-based businesses such as law, accounting, consulting, real estate, etc. – the key “win” for their site is when it motivates a visitor to request more information or schedule a meeting. Contact forms are a ubiquitous website staple intended to provide a convenient – and highly measurable – avenue to initiate communication between an interested prospect and a company. However, perhaps because they are so commonplace, all too often these forms are given little strategic thought, resulting in a cookie-cutter name/email address/phone number format that yields more bogus spam submissions than legitimate new business opportunities. However, there is one simple change you can make that has been shown to get better results: reposition your standard “Contact us” form as an “Ask our experts” feature. By doing so, you shift the focus of the form to providing your visitors with an opportunity to submit a question that is specific to their needs and concerns. Rather than feeling like they are opening themselves up to an endless barrage of solicitation calls and emails, your visitors will sense that they are initiating a dialogue with an expert who will help them solve their particular problem. Make sure to respond to all inquiries within 24 hours, provide helpful advice that is free of charge and tailored to your prospect’s situation, and leave the door open to continue the conversation in a future meeting or phone call. By doing so, you will establish an important foundation of trust and confidence with your potential new client that will make them more inclined to engage your professional services. I have personally seen the submission rates on these types of forms increase dramatically. On one site where this small change was implemented, form submissions jumped from one or two per week to one or two per day – all legitimate business opportunities that were sparked simply by repositioning the focus of the form.

2. Productize your offering.

Another challenge that professional services organizations face in creating a website that works as an effective customer conversion engine is that they do not sell a specific product but rather a suite of services that can be customized to each client’s specific needs. This makes it terribly hard to market to visitors who come to their site and simply want to know “What exactly does this company sell, and how much does it cost?”. Because there are so many variables to the company’s offerings, there is not a quick and easy answer to these questions. If this challenge sounds familiar to you, one approach you can try is to “productize” what you have to offer. Create a bundle of services with a fixed price, and market that package on your site in a simple, straightforward manner that makes your offering easy to understand and helps visitors feel like doing business with your company is as simple as buying a product off the shelf at a store. This is exactly what my company did with some of the technology consulting services that we offer. Instead of only listing the array of services we provide, we also created a product that representing a very specific offering. This made it so much easier to answer the “What do you sell?” question, and it gave us something tangible to promote in our marketing campaigns. In reality, this approach in no way limited the range of services we are able to offer our clients; rather, it merely served as a vehicle to open doors to new opportunities and made it easier to start conversations with new customers for whom we could ultimately provide a custom-tailored solution. Examine the services that you offer, and work with your marketing team to create an appealing package that you can market – understanding all the while that this “product” is really just a means for you to connect with customers and begin the sales process with something tangible that they can easily understand.

3. Lose your home page carousel.

One simple change that I have seen many websites make in the past year or so is to remove animated image carousels from their home pages. These carousels have long been a popular fixture of website design, but the reality is that they can sometimes do more harm than good. Home page carousels typically feature giant, screen-spanning images which carry with them heavy download requirements both for the images and for the scripts that power the animation sequences, thereby creating a potential stumbling block in performance for users on mobile devices or with slower connections. Additionally, studies have shown that click-through rates on animated carousels are extremely low, and they drop significantly from the first slide to the subsequent ones. This is why many companies are replacing rotating carousels with a singular static message instead. This one change can greatly reduce a page’s download size (when my company did this on our home page, its file size decreased by 75 percent) while having little to no effect on actual user engagement or click-through. In fact, because the page now loads more quickly, many sites actually see an uptick in user engagement because fewer people are abandoning a site due to poor performance. Do you have a carousel on your website? If so, do you know whether or not it is working well for you? Your marketing team may be able to do some A/B testing between a version of your site with this animation feature and one without it to see which performs better. Since carousels do work well for some sites (like news organizations or sites with lots of frequently updated content), having this data can help you determine whether or not it’s time to ditch the carousel.

4. Update your image(s).

Stock photography is something of a necessary evil of website design, as more often than not, companies don’t have the budget to execute a full-fledged custom professional photo shoot. However, not all stock images are created equal. Stock photos that are overused or that look so obviously staged that they scream of their “stockiness” can cheapen a site’s design and leave visitors with a negative overall impression of the site. Replacing those images can make a big difference in a site’s visual appeal. If your site’s imagery is stale, you can make some simple image swaps to freshen it up. If you are going to change out old stock images for new stock images, make sure to seek out photos that feel fresh and that are not terribly overused (most stock photo sites will tell you how many times an image has been downloaded). An even better option is to try to add some unique imagery to your site. This could be photographs that you hire a professional to take or – in keeping with one of this year’s hottest trends – custom illustrations that you commission from an artist. If your budget is tight, incorporating even just one or two such one-of-a-kind images in key spots on your site can really boost its visual impact. For instance, if you lose that aforementioned carousel on the home page and replace it with one truly compelling static image and message, it can make a really powerful first impression on your visitors.

5. Publish less.

Most experts agree that publishing original, value-add content on your site on a regular basis is key to optimizing its success – both from a sales and marketing standpoint and as an advantage in the never-ending battle of SEO. While I agree with this approach in principal, for many companies, the drive to publish regularly has resulted in putting out mediocre content simply to meet an inflexible standard of frequency. This is often an entirely counterproductive effort, as content that lacks in quality, original thought or value for the reader reflects poorly on the organization and its perceived level of expertise. Publishing original content to your site on a regular basis is still a best practice, but that content must offer value for it to succeed. Let’s say a visitor comes to your site and is impressed to find that you publish new articles weekly or monthly; however, once they click through the headline to see what they can glean from your writing, if what they find is mediocre at best, what motivation do they have to return to your site again in the future, let alone entrust you with their hard-earned dollars? If, on the other hand, you publish new content less frequently, but everything you produce is of the highest quality, then that same visitor will know that the time they spend on your site will always be worth their while, and they will look forward to the next time you post something new. Re-examine your current content marketing strategy, and ask yourself whether you are focused on quality or frequency. If it’s the latter, commit instead to writing less but to improving the quality of what you offer on your site. While this change may not have an immediate impact, it will absolutely yield long-term results that your visitors will appreciate and respond positively to.

In closing

Eventually, your website will need a redesign, but in the meantime you can make small, strategic, surgical changes that will pay immediate dividends in your site’s success. This approach of implementing gradual but regular modifications will also benefit you when it does come time for that full redesign. By making intelligent improvements over time, you will ultimately be closer to your end goal, leaving less to accomplish with the redesign and thereby paving the way for a smoother and less costly project.

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Seven Ways to Shed Weight Fast!...For Your Website

With the holiday season and all of its excesses in the rearview mirror, for many of us, our thoughts turn next to resolution-making, specifically vowing to shed the extra pounds that are the collective result of any number of regrettable dietary choices made over the course of past months, from digging into the kids’ trick-or-treating bags to raiding the fridge for Thanksgiving leftovers to a daily egg nog latte habit. But while we’re in resolution-making mode, we’d do well to think not only about how to trim our waistlines but also how to slim down our websites. Why? Just like all those little culinary indulgences add up to extra pounds on our bodies, the small additions you might have made here and there on your website can weigh it down and leave its performance in the same type of sluggish slump as you might feel after one too many pieces of grandma’s pumpkin pie.

The problem

Today’s websites have become bloated, with the average web page tipping the scales at over 2 megabytes. That may not sound like much in an era when we’re well accustomed to talking in terms of gigabytes and even terabytes. However, when it comes to the Web, even 2 megabytes is too much, especially for visitors using low bandwidth or mobile devices, who are likely to leave your site rather than wait for a too-slow page to load, leaving you in the perilous position of losing their business altogether. Hefty page weight and poor performance can also have a negative impact on your site’s search ranking, as Google and other search engines now include these elements as key factors in their algorithms. As a result, streamlining the size of your web pages is certainly a best practice, but where do you begin? Just as shedding pounds requires you to make changes in multiple aspects of your lifestyle, there are a number of aspects of your website that you can examine to find ways to trim the unnecessary dead weight that’s detrimental your site’s performance.

Your seven-step plan for website weight-loss success

1. Optimize images.

As giant, screen-spanning images have become a popular trend in website design, pages have gotten heavier and heavier over the years. One way you can make a drastic reduction in the weight of your web pages is to ensure that the images on your site are properly optimized for the Web and that you’re not serving unnecessarily large images to mobile devices with small screen sizes.

2. Retool HTML files.

HTML files also impact the download size of a page, so look for ways to optimize the code to reduce the overall size of the file. Although these savings are likely to be small, remember that even small changes can add up to measurable improvements.

3. Streamline style sheets.

Because CSS files must be downloaded in order for a user to view your site, poorly formatted files or loading of unnecessary styles can increase the size of downloads. Requiring multiple style sheets can also have a negative impact on performance, since each one will require a separate HTTP request to fetch that file.

4. Ditch JavaScript where possible.

Using JavaScript files or libraries is a common practice in modern website design, but when it comes to optimizing page download size, there are a few drawbacks to this approach. First, requiring an entire library for just one effect (like an animated carousel of images) is not the best use of bandwidth. It can also lead to a critical user experience fail if your website does not work as intended because a visitor has elected to disable JavaScript in their browser. In some cases, JavaScript may be necessary, but be sure to make the distinction between when it is truly a must-have versus when it is simply a nice-to-have feature.

5. Use Web fonts sparingly.

The rise of Web fonts has given designers much more flexibility in their application of typography on the Web. Instead of being forced to select from only a handful of Web-safe fonts, Web fonts allow new typefaces to be included with a site’s files or linked from a third-party resource, such as Google Fonts or Adobe’s Typekit service. While these solutions have greatly increased the options available to designers, they can also significantly impact the performance of a web page. Font files must be downloaded with the page, so it is important to keep these to a minimum. Requiring three or four different weights of one font may be attractive from a visual standpoint, but it will be brutal from a file size perspective.

6. Eliminate external feeds whenever possible.

Content that is pumped in from other sites, including social media feeds and ads from by a third-party provider, will absolutely slow a website down, as external feeds are notorious bandwidth hogs. While these resources are sometimes necessary, their use should be limited as much as possible.

7. Check for CMS dependencies.

If your site uses a content management system, there are likely to be aspects of that CMS and how it is configured that play a role in performance. Since CMS platforms draw their content from a database, the calls to that database can slow the download speed of your page if there are too many of them or if they are not configured properly.

Know your numbers

Just as you need a scale to help you gauge your progress toward your target weight, you also need tools to help you measure the impact the steps you’ve taken above have made in improving the performance of your website. The Website Speed Test from Dotcom Monitor is a great tool that allows you to “instantly test your website speed in real browsers from 23 locations worldwide.” This application will not only tell you how large your page is but also measure its load time and reveal which elements contribute most to its size (similar tests are also available from Google). Armed with this data, you can charge forth with confidence, knowing that your website will soon be a leaner, meaner business growth machine – no fad diets or gym memberships required!

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McDonald’s "Pay With Lovin’" Campaign: A Cautionary Tale of Good PR Gone Wrong

During this year’s Super Bowl, McDonald’s ran a very interesting commercial, not about a special new sandwich or other changes to the fast-food giant’s menu, but about how customers may be able to pay for the items on that menu. Dubbed “Pay With Lovin”, this new promotion allows select customers to pay for their order with kindness of some kind. As shown in the ad, you can make a call to a family member and tell them that you love them, give someone a compliment, or even do a little dance in exchange for your Big Mac and fries. The ad itself is actually very well done and touching, and the entire campaign is an interesting change from a company that is certainly not seen in a favorable light by many consumers (McDonald’s is always at or near the top of “Worst Fast-Food Restaurant” surveys and lists). In this article, we will take a look at why this new promotion from McDonald’s is a good move for the company and what we may be able to learn from this campaign.

The perception of McDonald's

When someone says “McDonald’s” to you, what do you immediately think of? If your answer is “cheap, low-quality food”, then you are not alone. Right or wrong, McDonald’s has long been known by many for inexpensive, mediocre food. The company’s decisions over the years, like their “value menu” of very low cost items, has certainly contributed to this perception. Today, restaurants like Chipotle and Panera continue to grow in popularity by offering customers quick service, but with better quality (and more expensive) meal options than the traditional fast-food restaurants offer. These restaurants, often known as “Fast-Casual”, have taken business away from McDonalds while further cementing their place as the go-to location for that aforementioned “cheap food.” So how does McDonald’s start to move away from this negative perception of their brand – they begin by changing the conversation.

Changing the conversation

McDonald’s latest promotion has nothing to do with their food or their prices, the two things for which they are most commonly known in negative light. This “Pay With Lovin” campaign is all about fun and good feelings. It is part contest, part giveaway, and part customer appreciation event all rolled into one.  The campaign itself is a very interesting experiment. Between February 2nd and the 14th, each participating McDonald’s location will have 100 total “prizes”, with a select number of customers selected by random each day. Those random customers will be given the opportunity to “Pay With Lovin” and use a fun expression of kindness instead of money when they are ordering their meal. There is excitement to this promotion as customers wonder if they will be chosen for this “Pay With Lovin” opportunity. It also provides McDonalds with a great way to connect with those customers in a way that they have never done before. In an article on Inc.com, McDonald’s Chief Marketing officer, Deborah Wahl, says, “We’re on a journey of transformation and a key part of that journey is how we engage with our customers.” McDonalds realizes that to change the negative perception of their brand, they need to change the conversation, and they are starting that change by interacting with their customers in a fun way that is designed to make people feel good.

People are talking

Another great aspect of this promotion is that people are talking about McDonalds – and it is not in a negative way! The company has given customers something to get excited about and something to share with others. That moment of delight when a customer is informed that they can “Pay With Lovin”, and the fun that happens from that event, is something people can enjoy and then share on social media by telling others about the experience. This will further spread the good cheer and the positive vibes for a brand that has seen far too few of those in recent years. The fact that people are being nice and kind as part of this campaign just adds to the positive vibes of the promotion, and while I am sure there will be the occasional sourpuss who will refuse to engage in this idea (you can’t please everyone, no matter how hard you try), the majority of customers who are told their order is free if they simply spread some love will be happy to do so!

What’s next?

So changing the conversation is a great start for McDonalds, but what comes next? This promotion, as innovative as it is, is a short term initiative. Once this campaign is over, McDonald’s will be back to being known as that cheap, low quality fast food restaurant unless they make some additional moves in their business. If they want to truly change the conversation in the long term, they need to build on what they have started here – but at least they have found a place to start.

What can we learn?

So what marketing lessons can we take away from McDonald’s “Pay With Lovin” campaign?

1. If people are speaking negatively about your brand, finding a way to change the conversation is a good start to changing perception.
2. If you want to change the conversation, start with your existing customers and change how they talk and think about your company.
3. Engaging customers in ways that are fun and unique will get people excited and talking, which encourages them to tell others about their experience. The more people they tell, the quicker the conversation around your brand moves towards the positive.
4. A campaign like this is a great start, but if you have larger problems, you still need to fix those issues or risk falling back exactly to where you were before your campaign began.

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