Snippets: nudging people in loyalty programs
Ah, the pleasures of coming across two of your favourite topics: loyalty and behavioural science. The guys from the Loyalty Science Lab explored how to most effectively nudge people forward in a loyalty program.
They uncovered several very important insights, such as:
Not all customers are alike, and loyalty program managers would do well to tailor the communication according to customer characteristics.
The higher customers are in the program tier structure, the more effective backward feedback (how many points the customer has accumulated so far) becomes.
For customers in the lower tiers, forward feedback works better. In other words, tell them how much they've got to do to become part of the next tier.
Check out the full piece here: https://medium.com/swlh/how-to-nudge-people-to-go-further-in-a-loyalty-program-640e09b691fa
My best wishes for a great day ahead!