Loyalty Programs · The mechanism · Component
The redemption
What can be obtained, and whether it feels worth it — because redemption is what determines perceived value.
The deliverable
What it is
Earning is easy to design and redemption is what members judge the programme on. A programme that is easy to earn in and difficult to redeem from is experienced as a trick.
Redemption rate is the honest measure of whether members find the reward worth accumulating for.
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.
The friction
How difficult redemption is.
3 attributes: Restriction · Reason · Effect on redemption
LearnThe redemption rate
How many members actually redeem.
3 attributes: Redemption rate · Members redeeming · Time to first redemption
Learn
A programme easy to earn in and hard to redeem from is experienced as a trick, whatever the terms say.
The other components in the mechanism
The earning
What behaviour earns, and at what rate — because whatever earns is what the programme is actually asking for.
LearnThe comprehension
Whether members can actually explain how it works — because behaviour changes only when someone can see the consequence of a choice.
Learn