Why We Like Reward Plans: A Quick Look
Main Reasons We Behave This Way
Our actions set the base for our love of reward plans. Studies show we put in twice the effort to keep things than to get new stuff. This makes reward systems work well to guide our buys.
Important Parts of Reward Plans
Watching progress boosts our buys by 20% as it drives us to keep up. Using varying reward times can make our need to belong jump by up to 300%, as it taps into deep parts of our minds that crave wins.
Easy Choice Making
Fast choices work best with 3-5 types of rewards. Over 7 options slow us down, making us less likely to join. This is vital in creating a plan that does well.
Layers and Targets
Brands with multi-level reward systems see a 15-30% boost in our spending. These plans use:
- Desire for status
- Aim-driven tasks
- The joy of being recognized
- The drive to achieve goals
The science behind these setups gives clear insights into our actions.
The Mindset of Avoiding Loss
Our Dislike for Losing
Avoiding loss is a main reason we push twice as hard to not let go of things versus gaining new ones.
This strong motive in our behavior, first noted in theory studies, keeps being seen in research and actual use.
Applying This to Reward Plans
Smart plan adjustments focus on how you present the perks. Shifting the perspective from gaining more to not losing can increase engagement by 45%.
For example, showing a $50 bonus as avoiding a loss can attract more people.
Time-Limited Offers and Maintaining Level
Fast deals that play on our fear of losing can get 3.2x more responses than usual offers.
Holding onto high status by stating what you could lose gets 68% more people involved versus just showing possible gains.
This highlights how potent the drive to prevent loss is in prompting quick actions.
Strategies to Retain Customers
The threat of a potential loss fires us up, making it a key method to:
- Draw people into your plan
- Maintain your customer base
- Enhance your system performance
- Shift behaviors
- Increase earnings
These findings, used wisely, can lead to lasting success in keeping customers and boosting your plan’s success.
