How to Nudge People to Go Further in a Loyalty Program?
What we learned from a retail field experiment and an airline study
Sophia is a member of a reward program. It’s almost the end of the year. She is only a base tier member at the moment, but she’s getting pretty close to the Silver tier. To get there, Sophia needs to make one or two additional purchases before the year is over.
Making it to the Silver tier would make Sophia happy. She will be able to enjoy all the perks reserved for Silver members in the coming year.
A happy Sophia is good in the long run for the business. The immediate revenue from her additional purchases would be helpful too. So it’s a win-win situation if Sophia were to reach the Silver status.
The question is:
how can the program nudge Sophia so that she will put in the effort to get to that next tier?
In this post, we will share with you what we’ve learned about this question from one of our research projects.
The Big Idea
When people are going after a goal, letting them know where they are can change how people see their progress and how motivated they feel about that goal.
