Loyalty Programs · Winding down · Component
The explanation
What members are told, and whether it is honest about being a reduction.
The deliverable
What it is
A reduction presented as an improvement is recognised immediately and adds insult to the change. It is also the most common way these announcements are written.
Members accept that programmes change. They react badly to being told a worse deal is a better one.
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 recovery
What happens afterwards.
3 attributes: Retained · Reaction period · Against expectation
Learn
“To simplify the programme” when the reason is cost is recognised immediately, and it costs more than honesty would.
The other components in winding down
The notice
How long members have before the change takes effect — because anything short is experienced as confiscation whatever the terms say.
LearnThe honouring
What happens to points already earned — where the saving from not honouring them is small and the damage is not.
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