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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DeadSpace: 7 Reasons Why MySpace is as Good as Dead

The first behemoth of social networking, MySpace—now owned by Fox Interactive Media—is on its way to its grave, with no one to blame but itself. MySpace’s popularity hit its apex in March 2008. In the following month, it was overtaken by its first real competitor, Facebook. But the writing was on the wall long before that. Web developers and architects all over knew that MySpace was doing it wrong. Surely at least a few of its own developers knew this and pushed for change. Still, MySpace was the slowest to adapt. For a site of that magnitude—including all of its systems, engineering and hacks to make it function—change does not come easy or cheap. The site was not built to do or handle what it attempts to do today, and its poor framework and conventions of interaction are a reflection of that. This is where the ever-important step of planning and laying a site’s foundation is so important. MySpace architects did not effectively build the system to be much more than a novelty. And while MySpace is not your average website, it serves as a lesson in utility for anyone charged with planning, building and running a website on any scale. If a better alternative in Facebook had never come along, MySpace would not be in this position nor would it have pushed to try to make any changes, even in the eleventh hour. People still want to connect to other people, share things they care about and display certain aspects of their life. Whether you agree with those aspects of our culture or not, they do exist, and MySpace fulfilled those motivations for a time. All you need is one competitor, however, one other option entering the marketplace, and the incumbent developers will be challenged to fight to the death. MySpace’s architects and developers simply could not live up to that challenge. In 2008, MySpace did begin to introduce features, tweak aspects of its foundation and attempt to crack down on the juggernauts of spam bots plaguing the site—but by then people didn’t care. Facebook came along, presented a better option, and people moved with little doubt that they would ever return to MySpace. Thus, in the same way it virally grew, MySpace will die by the same domino effect that catapulted its popularity. Let’s examine seven key elements of MySpace that rushed MySpace to its grave. (It should be noted that the following screenshots were purely at random and were very, very easy to find.)

1: Out-of-control design framework

Of the people you know, how many could lay plans for their own house, paint a beautiful portrait worthy of hanging in your living room or perform cosmetic surgery? Chances are, few. There are just certain things that some people have no business doing, either lawfully or for the sake of the rest of us. Designing websites is one of those things. Designers are in a unique class of professionals, and good web design is an exact art and science. MySpace disagrees, however, and allows their users to hack everything in the page until nothing is usable, legible or tolerable. Pages are riddled with high-res backgrounds, text isn’t protected, and colors, styles and sizes are fully unlocked—just to name a few. All of this creates a design playground which breeds annoying layouts that distract from the page's content. In contrast, Facebook has chosen to restrict at least the foundational framework of the site. While customization is an important aspect, it shouldn’t be allowed at the risk of the functional system—the very heart of a social networking site’s brand and reputation.

2: Auto-play music

People love music. It’s one of the few ubiquitous facets of life. In fact, Apple’s famed comeback as a technological and cultural superpower was all a carefully conceived plan to tap into our common love for music—and they rode that all the way to billion-dollar profits. In contrast, MySpace taps into music to annoy the living hell out of most of us. In fact, it should be noted that all non-prompted audio anywhere, on any page, is a widely unacceptable and an unwanted "feature."” This goes for ads, auto-play videos, and most important, unexpected, blaring music overlaid on what you might be listening to already.

3: Identities

The days of Internet handles are coming to a close. Yes, there was a time when one would be known as “Biker5445,” as systems continued to use usernames as main identifiers. Of course, Internet e-mail systems will still use some form of handles for some time. Most of today’s websites, however, no longer need to do this—particularly social networking sites. This is even more important due to recent news and events concerning privacy and security. The use of a handle is only good for concealing identity, and that doesn’t mix well in a site intended to connect people. What good can come from that policy in a social networking site? MySpace did eventually get clued into this basic, fundamental issue and started asking its users for their real name as an option: Again, too little too late.

4: Little focus on content with a horrible user interface

There’s actually too much of this subject matter to fit within this article’s short space. One could write volumes about the sheer usability and UI issues that plague MySpace. One thing is for sure, this aspect is a website killer, no matter if you are local deli or a major social networking site. In the case of MySpace, most interactions and conversations occur within a never-ending, scrolling guestbook. These “comments” also have very little restrictions and are filled with a cacophony of text, pictures, videos and animated gifs—all without any context in the conversation. Ultimately, the interface leaves everyone reading essentially one-half of an e-mail conversation between two people and no one else. That’s just the beginning. Features that are, at best, a one-time read about a person’s interests, life story, and favorite music, movies, books, television shows, heroes and foods are typically placed near the top of the page in one long column. Whether you have an interest in any of this stuff or not, you’re treated to it every time. The list goes on, but we just can’t stomach any more.

5: MySpace has cultivated a raunchy, immature base

MySpace’s culture—formed by the foundation created by its architects—has without a doubt developed an immaturity and a raunchiness that is unique to MySpace. It’s widely known that MySpace has sold-out to become a platform built around dating, which doesn’t help its state in terms of the quality of content. You can easily find all the "vital" statistics that you want from a date on most pages—everything from sexual orientation, build types, even income takes headline status. The archetypical “MySpace photo” is often mocked and mimicked today by a photo with the person in a sexually suggestive pose, with bright light and the camera aiming down from above. It’s not just about sexually suggestive material, but about the framework of how MySpace works. The site can’t be responsible for user’s content, or perhaps lack of content, but what MySpace’s architects have built promotes an underlying immaturity that is not present in Facebook—at least not yet. Coupled with all the other out-of-control elements, a light click-through of MySpace easily resembles a walk down a tattered, defaced red light district. And why is Facebook not facing this degree of the problem? Its architects have planned better. Perhaps it’s embracing the common sense of restricting anonymity. Perhaps it’s because Facebook doesn’t allow layouts and its interface to go nuts. Either way, it’s well-known that Facebook has attracted a more mature presence and left MySpace with the rest. If you have never experienced this cultural difference, click around random pages in MySpace—if you dare. Chances are, you don't need to and you're just nodding along with the rest of us.

6: Inordinate number of ads

News Corp is definitely profit-centric. Whatever soul MySpace ever had, it was sold to the highest bidder ages ago. The number of large, animated, irritating, irrelevant and sometimes offensive ads compared to what matters—content and utility—is terribly imbalanced. While Facebook has yet to turn a profit at the date of this article, it will eventually need to solve this problem and will most certainly shift its balance as well. Until the day comes when Facebook burns through its cash faster than investors can pour it in, this difference makes it an easy switch from MySpace to Facebook.

7: Spam

If there’s one thing that’s notorious on MySpace, it’s spam. The site’s spam comes in many forms, but the most prevalent are the spam bots for sex and dating sites. They pose as skanky figures, companies, scam artists, music groups and interest groups, which scour friend lists in public profiles and send out friend requests to drive traffic to their MySpace page or other shady website. MySpace came to its senses in recent times, figuring that this was annoying people beyond limits and started to ruthlessly crackdown. Again, too late. The brand of MySpace, “A Place for Friends,” became “MySpace—A Place For Sleazy Marketers.”

The Future

While MySpace's reputation is dead, Facebook isn’t perfect either. In fact, more and more people are becoming annoyed with its limitations and methods as well. It is still plagued with its own problems, some of them similar to MySpace in terms of its core usage. Simply put, there are things that “social networking” sites should be doing and they are not, along with things that they are doing and shouldn’t be. Facebook is—for the moment—simply a better option. But it’s got a thin line to walk as well, not the least of which is to actually turn a profit. With MySpace as good as buried, look to Facebook to begin making changes to address the pressures of creating more revenue. The balance between utility and profits will be tilted. The question is how much will it tilt and how much will be sacrificed when the next social networking site comes along and ups the ante?

More...

MySpace Helps News Corp Lose $363 Million [Mashable]

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20 Questions to Determine If It’s Time to Redesign Your Website, Part 2

Previously we helped you put your website to the test to identify the glaring problems in design and content that might be costing you valuable opportunities to win new customers. However, these variables really only scratch the surface when it comes to the performance of your site. If your website isn’t your number one salesman, there could be less obvious but equally insidious issues lurking beneath the surface that are killing your site’s ability to convert. If you answer “no” to any of the following questions, it’s time to seriously consider a redesign:

1. Is your site free of autoplay gimmicks and pop-ups?

If you want to alienate a visitor immediately, start playing music or have a spokesperson begin talking automatically as soon as they load the site. Uncued audio, video, animations, banners and pop-ups are completely taboo in modern website design. Don’t insult the intelligence of your users by forcing content upon them. It’s the online equivalent of having a pushy salesman pounce on them the minute they walk in the door and hound them into looking at products or services that may not be relevant to their interests at all.

2. Is the navigation intuitive?

When evaluating your website’s navigational structure, don’t look at it through the eyes of your most sophisticated, web-savvy users. Scrutinize it from the perspective of your most reluctant, technology-averse users. Are there an overwhelming number of pathways presented on the home page? Do the options offered in your top-level navigation menus correspond to specific user needs and motivations? How many layers are you asking users to dig through to find the types of information they are most likely to need? Are action buttons styled and positioned consistently so that they’re easy to identify as a user scans and scrolls through your site?

3. Does your site offer a search feature?

Sometimes visitors will arrive at your site with a very specific need or purpose in mind, especially if they are comparison shopping across multiple sites. Don’t force them to sift through layers of navigation to uncover the one piece of information they’re seeking. Provide a search feature in the global framework that lets them bypass the various menus and links and find anything and everything on your site that pertains to their particular interest, whether it lives in your brochure copy, product descriptions, blog posts or news articles.

4. Is your site compatible with small screens?

In today’s 24/7 world of business, the most useful website is the one that can be accessed anywhere, not just at a desk. As a result, it’s critically important to ensure that your site plays well with all mobile platforms and devices, including touchscreens and tablets. Pull your company’s website up on your phone. Then pull it up on your friends' phones. Then pull it up on every modern mobile OS that you can get your hands on. If you can't bring it up, browse through it, view the content and complete core functions effortlessly, then neither can your users. In order to ensure that you’re providing the best possible user experience for those on small screens, you must make sure that your site’s interface is clean and clutter-free so that you make optimal use of the available real estate to allow the most important content to take center stage. Also pay close attention to details such as the amount of time it takes to load your site via mobile networks, the size and readability of typography, the level of contrast between the text and the background, the function of menus and the “pressability” of links, buttons and navigational tabs.

5. Is your site touch-friendly?

With the explosive growth in the adoption of touch-driven smartphones and tablets, the likelihood is increasing with every passing day that customers will be traveling around your website using touching and swiping gestures rather than the clicking and scrolling action of a mouse and keyboard. To create finger-friendly navigation, all links, buttons and menus must be big, bold and obvious and have a buffer around them to allow a greater margin of error. In the world of touch, roll-overs and hover states are non-existent, so replace buttons that require users to mouse over them to get a sense of action with style enhancements that draw attention to them as action elements. Again, the only way to be confident about how your site rates on the touch-friendly scale is to put it through the paces on actual touchscreen devices. If you don’t already own such a device, borrow one or – if all else fails – make a trip to your local retailer and use the display models there. It’s worth a little legwork to ensure that you’re providing the best possible quality experience for the growing legions of touch users. Read more: Is Your Website Ready for the Tablet Revolution?

6. Is it Flash-free?

The mobile Web is officially a hostile environment when it comes to 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, your navigation framework or video – get rid of it now, or else most mobile users will be plagued with problems. Today there are better, more lightweight and touch-friendly options available, such as HTML5 and JavaScript, that can replicate the same effects that once required Flash.

7. Is your site supported by a content management system?

Publishing unique, high-caliber content to your site on a regular basis is a crucial element of today’s marketing that is integral to helping your company conquer many key business growth objectives. The only way to achieve this efficiently and cost effectively is to have a content management system behind the scenes of your website that allows designated administrators within your own company to create and post certain content types – such as blog posts, company news, event information and press releases – within the existing framework of your site. A solid, robust content management system will make it easy and intuitive for almost any user to publish sophisticated, engaging content that includes photos or videos and follows graphical style conventions that maintain a cohesive look and feel with your site as a whole.

8. Is there a way for users to subscribe to receive updates?

It takes a lot of effort to find and entice new qualified visitors to your website, but the greatest payoff comes when you can grab these users and convince them to come back again and again. Don’t put the burden on them to remember to check in every so often to see what’s new on your site. Make sure they have the option to subscribe to receive updates either by RSS feed or email so that when you publish a new blog post or send out your next e-newsletter, you’re in their feed reader or inbox, prompting them to click through and dive into your latest content.

9. Is your site free of black-hat SEO techniques?

If your website has ever been in the hands of a less-than-reputable developer or SEO “expert,” there may be dangerous black-hat SEO tactics in play that are putting your site’s performance in organic search results in serious jeopardy. Black-hat tricks like keyword stuffing and invisible text are the crutches often employed by snake-oil SEO practitioners to artificially improve the position of a website in search engine results pages for specific terms or phrases. However, the problem is that all of these illegitimate methods are condemned by the major search engines, which are programmed to weed out and penalize imposters. While these techniques might provide a temporary boost, when they are uncovered by the search engines (and they inevitably will be), your site will be blacklisted, and you’ll be off the map completely when it comes to organic search. There’s no short-term benefit that’s worth the cost of such a great potential risk.

10. Do you have tools to track the metrics on key conversion points?

Where do visitors to your site come from? What keywords are they using to find your site? Which pages do they visit most often? Which pages might be turning them off and sending them elsewhere? How many visitors leave after viewing only one page? How long do visitors tend to spend on your site? The answers to all of these questions are critical to helping you shape your site and adapt your online marketing efforts to maximize conversions. However, unless you have the required tracking code in place in the underpinnings of your site to tie into a metrics toolset like Google Analytics, you’ll find yourself with major gaps in the information you need to make crucial decisions that affect the growth of your business.

How did your site rate?

If you’ve answered “no” to several of these questions, it’s time to move overhauling your site to the top of your business growth priorities list. By partnering with a top-notch website design firm, the initial investment required to redevelop your site to meet these criteria will be returned to you many times over in the lifetime value of the new customers you’ll be able to capture with a site that offers a powerful and engaging experience to users on any and every platform and device.

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