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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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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.
How a reward is framed, and the steps the customers must take to 'earn' the reward, is the key to a successful loyalty plan.
Millions of Americans are enrolled in loyalty or reward programs in hotels, supermarkets, drugstores and restaurants, and there are two major challenges:
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