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Framing Reward is as Important as Reward Itself

https://www.nirandfar.com/framing/

nirandfar.com

Framing Reward is as Important as Reward Itself
On May 1, 1981, American Airlines launched its frequent flyer program AAdvantage. Since then, a flood of loyalty programs have attempted to bring customers back through rewards. Today, you can become a card-carrying member of just about anything: hotels, supermarkets, drugstores and pizza chains.

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Loyalty and Reward Programs

Millions of Americans are enrolled in loyalty or reward programs in hotels, supermarkets, drugstores and restaurants, and there are two major challenges:

  • As the outlets with loyalty programs tend to reward only the customers who are already loyal, the participation percentage is on the lower side.
  • Customers find it difficult to be loyal, due to other chains and outlets offering great discounts as well.

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The Endowed Progress Effect

How a reward is framed, and the steps the customers must take to 'earn' the reward, is the key to a successful loyalty plan.

If customers are shown their efforts and the progress they have made, in absolute terms, with a clear path on what to do next, it is more likely they will push themselves to complete the program.

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This Endowed Progress Effect Applied

This Endowed Progress Effect is successfully deployed in games like Candy Crush Saga, and websites like Paypal and LinkedIn, which show a prominent progress indicator, with easy to find ways for completing the next milestone. These apps and games use social pressure tactics and freebies to lure the customers into providing more information or buying a premium service.

Once the customer sees that time and energy has been spent, and progress made, they are less likely to drop out.

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Variable Rewards Trick

Customers come back due to some variable rewards. These can be: a new tweet, a special offer at a restaurant, or a fresh new deal at a shop.

Variable rewards, which have an element of uncertainty and unpredictability, work like a slot machine for our brains. Smart framing focuses on the time and money the customer has already spent, instead of what they can get.

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These programs teach that discovering brings not just good grades, or a financial reward. It brings the satisfaction that one can realize dreams, and thrive, in a world framed by major dramatic questions.

Two types of motivation

Motivation is categorized into two basic types: Extrinsic and intrinsic.

  • Extrinsic motivation is related to external forces like money or fame.
  • Intrinsic motivation

Money as a motivation

Money as a tool for motivation is limiting at best, and the 'carrot and stick' approach many managers use to motivate employees is will actually achieve the opposite effect of what was intended.

Conditional rewards

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Be a Game Master

Be a Game Master
Attach rewards to your to do list. 
  • Reward yourself for fulfilling one or several tasks

Use surprise rewards.

  • Determine a reward by chance.

Gamify Your Business

Product Gamification

  • Add new features to a product to make it addictive when used.

Marketing Gamification

  • Gamify experiences to increase loyalty among existing clients.

Workplace Gamification 

  • Train employees and help them grow into a leader.

Gamify Your Life with Apps

  • Do It Now (RPG To Do List)
  • Habitica/HabitRPG (Boosts General Productivity)
  • MindSnacks (Language Learning Apps)
  • SuperBetter (App for Tracking a Single Difficult Goal)
  • Fitocracy (Workout Fitness Log)
  • Productivity Challenge Timer
  • LifeRPG (Task List Based on a Mission-Oriented Approach)
  • EpicWin (RPG-Style To-Do List)
  • Life Strategy (Life Managing App)
  • Thirty – Get Inspired (Habit-Building App)