Peoples' willingness to take action when promised a reward
Description
Rewards motivate us to take an action.
Possibly the strongest of the cognitive bias there is.
It's practically used throughout the whole spectrum of our life.
But every area of our life provides a different kind of reward.
Research:
Dropbox used the reward bias to immediately reward users with free storage for each invite they sent to friends. In just 15 months, Dropbox increased annual revenue between 250 million and 400 million dollars. This cost-efficient reward system was inspired by PayPal’s successful “get $10 when you sign up with PayPal today” campaign that helped reach them to their popularity today, without the financial loss.
Application
Loyalty Programs
Implement loyalty programs that reward customers for their repeat purchases or engagement with your brand. Offer incentives such as points, discounts, or exclusive access to rewards based on their level of participation. By providing tangible rewards, you can encourage ongoing engagement and foster loyalty among your customer base.
Contests and Giveaways
Host contests or giveaways on social media platforms or your website where participants have the chance to win prizes or rewards. Encourage users to engage with your content, share posts, or sign up for newsletters in exchange for entries into the contest. The prospect of winning a reward can motivate participation and increase brand visibility.
Referral Programs
Launch referral programs that incentivize existing customers to refer friends or family to your products or services. Offer rewards, such as discounts, freebies, or exclusive perks, to both the referrer and the new customer upon successful referral. By rewarding customers for spreading the word about your brand, you can amplify your reach and acquire new customers more effectively.
Points-Based Systems
Implement points-based systems where customers earn points for various actions, such as making purchases, writing reviews, or engaging with content. Allow customers to redeem accumulated points for rewards, such as discounts, free products, or access to exclusive events. This gamification of the customer experience can drive repeat interactions and increase customer satisfaction.
