300 customers at a car wash were split into two groups and given one of two different loyalty cards for a free wash upon completion: either one with space for 8 stamps or one for 10 (with 2 spaces pre-stamped).
Despite both cards requiring the same amount of effort, completion of the non-pre-stamped 8 card over a 9-month period was only 19% whereas the pre-stamped 10-card was 34%.
Get them started. Endow progress with a fraction of points, stars or a brand-specific measure. Make sure you endow enough to motivate use, aiming for between 10-25% of the total effort required for the first reward. As well as helping with initial effort, make the reward itself substantial and meaningful to assist habit-forming.
Never endow at the end. The closer we are to a goal, the more we value our own internal efforts to complete it. Doing so on their behalf will devalue existing effort, perceived reward value and reduce loyalty strength.
Make it seamless.In Christmas 2013, 1 in 8 Americans got a Starbucks Gift Card. On redemption they were automatically endowed with progress in the form of loyalty stars, creating 1.5m new loyalty members as a result. How can you seamlessly channel gift customers through to your loyalty scheme?
733 new employees of a health company used a single opt-in process to subscribe to a retirement plan. Results were compared to a multi-step phone process used with 455 and 407 employees from the two previous years.
Participation rates were 5% after one month and 8% after three months. With the new process, they rose to 19% and 35% respectively.
Perform a friction audit.
Identify all the hurdles and delays your user may feel while using your product and attempt to minimise them. How many barriers to a near-effortless user experience can you find?
Adding friction can help people from making mistakes.
Add barriers to counter System 1 mode, prompting users for conscious reflection to validate important information (e.g. monetary transactions). What strategic friction can you create?
Add friction to make waiting times feel shorter.
Houston airport reduced the number of luggage waiting times complaints by moving the luggage area further away so that passengers spent more time walking and less time waiting.
Remove friction but highlight effort.
Our willingness to pay for something increases by knowing how much work is done for us. We pay more for a cup of coffee if we see the barista working on it for several minutes.
23,946 cafe hot drink sales were studied over 14 weeks. For the last 4 weeks, customers were shown a sign stating that “guests are changing their behavior and more and more are switching from the to-go cup to a sustainable alternative. Take part in this: choose a sustainable cup and help to protect the environment.”
Results showed that customers used 17.3% more reusable mugs over to-go cups after dynamic nudging.
Drive change by showing relative growth.
New behaviors tend to start small, so stating absolute percentages isn’t persuasive. Instead, reframe the change as a dynamic movement increasing over time to create a means to 'pre-conform' with this inevitable future (Sparkman & Walton, 2017).
...where new behaviors tend to become the norm once at least a quarter of a group adopt them. Boost change success by recruiting a group of change-makers to create, broadcast and maintain this initial effort.
Combine existing financial nudges with dynamic norms.
The cafe in the study was already charging €0.10 for a takeaway cup but they were able to improve behavior even further with this cheap, efficient and new nudging method...and so can you.
No results right now...
...but we're adding all the time
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