Loyalty Programs · The mechanism · Component
The earning
What behaviour earns, and at what rate — because whatever earns is what the programme is actually asking for.
The deliverable
What it is
A programme rewarding spend asks for spend. One rewarding frequency asks for visits. Most programmes reward spend by default and then wonder why frequency did not change.
The rate has to be visible enough that a customer can see the consequence of a choice, or it influences nothing.
One level in
What it is made of
Each element is a constituent part of the component. Follow one to see the attributes it carries.
A programme rewarding spend is asking for spend. If you wanted frequency, you designed the wrong thing.
The other components in the mechanism
The redemption
What can be obtained, and whether it feels worth it — because redemption is what determines perceived value.
LearnThe comprehension
Whether members can actually explain how it works — because behaviour changes only when someone can see the consequence of a choice.
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