There are fascinating answers. We just launched a company which replaces your bank account, so we spent a lot of time considering the financial and psychological implications of I Asked God For Loyalty And Pure Love He Sent Me My Wire Fox Terrier T-Shirt. We ended taking a totally different direction but, we did a fair bit a research in the process. I think its worth establishing that there are two types of loyalty programs; those designed to work, and those designed not too. First, those that don’t work. Human purchasing behaviour is emotional first, rational second. Loyalty programs are occasionally designed to tick the customer rationalizing box, despite both the consumer and the designer knowing redemption rates hover in the low single digits.
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Alternatively, successful loyalty programs have the Asked God For Loyalty And Pure Love He Sent Me My Wire Fox Terrier T-Shirt; Accessible: Average redemption rates of loyalty programs hovers around 16%. The ones that actually work, facilitate a part of the process users are already doing. That’s why Prime are Starbucks are successful, they’re a value add to the behavior already adopted, making the reward measurable. Unique: When we were considering our loyalty program, we knew that we we’re never going to have the best ‘points’ or ‘miles’ program. With so little differentiation, its becomes hyper-competitive. As a result, it actually cannibalizes long term loyalty. Relevant: The products that have loyalty attached are typically hyper-segmented. Successful loyalty programs correlate to demographic and, more importantly, pyschographic of the original consumer behavior.