Deepstash brings you key ideas from the most inspiring articles like this one:
Read more efficiently
Save what inspires you
Save all ideas
Millions of Americans are enrolled in loyalty or reward programs in hotels, supermarkets, drugstores and restaurants, and there are two major challenges:
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.
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.
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.
SIMILAR ARTICLES & IDEAS:
Becoming a skilled professional used to be a matter of learning what the professionals did, how and why they did it, and some general facts that somewhat described our societies and ourselves.
As climate change, population growth and technological development bring fast and drastic changes to our world, educational programs that encourage discovery and innovation become ever more necessary.
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.
Motivation is categorized into two basic types: Extrinsic and intrinsic.
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.
‘If, then’ rewards or conditional rewards are when we promise to give something to an individual when they complete a certain task.
These rewards can have a negative impact on motivation as the employees lose the will to work on that task for the sake of working.
Use surprise rewards.