Limited Access

We place greater value in things when there are barriers placed around them

Paying to unlock benefits leads us to illusions of superiority, greater value analysis and a need to justify sunk costs by spending more once inside.

Ashley, Gillespie & Noble (2016). The effect of loyalty program fees on program perceptions and engagement. Journal of Business Research, 69(2), 964-973.

The study

Setup

310 US Amazon Prime customers were split into 2 groups, either on a free trial or on a paid membership. They were then queried about attitudes towards and value perceptions of Prime and its benefits.

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Results

Those on the paid subscription reported greater loyalty, perceived value and exhibited a higher monthly spend than those who were on the free trial.

np_read_2490885_000000

Ashley, Gillespie & Noble (2016). The effect of loyalty program fees on program perceptions and engagement. Journal of Business Research, 69(2), 964-973.

Key Takeaways

This is driven by two core effects:

1) Sunk Cost Bias where we seek to justify past, non-recoverable costs (of membership access) with our current actions (more spending), even when it’s not in our best interests. 

2) A desire to remain consistent with our past commitments - “I’m a Prime customer now.” 

Create a members club. Putting a price on entry heightens our analysis of the benefits of joining in a way that we wouldn’t if it were free. Limiting access to certain products or benefits can signal higher perceived quality (Zeithaml, 1998) and an increased willingness to buy.

Amazon entice with convenience (‘free’ one-day shipping), priority (30-min Early Access Lightning Deals) and exclusive choice (a vast music, video and book library). What benefits would your own customers pay for? What feelings can gaining access promote?

Limited Access

We place greater value in things when there are barriers placed around them

Paying to unlock benefits leads us to illusions of superiority, greater value analysis and a need to justify sunk costs by spending more once inside.

Ashley, Gillespie & Noble (2016). The effect of loyalty program fees on program perceptions and engagement. Journal of Business Research, 69(2), 964-973.

The study

Setup

310 US Amazon Prime customers were split into 2 groups, either on a free trial or on a paid membership. They were then queried about attitudes towards and value perceptions of Prime and its benefits.

Results

Those on the paid subscription reported greater loyalty, perceived value and exhibited a higher monthly spend than those who were on the free trial.

Key Takeaways

This is driven by two core effects:

1) Sunk Cost Bias where we seek to justify past, non-recoverable costs (of membership access) with our current actions (more spending), even when it’s not in our best interests. 

2) A desire to remain consistent with our past commitments - “I’m a Prime customer now.” 

Create a members club. Putting a price on entry heightens our analysis of the benefits of joining in a way that we wouldn’t if it were free. Limiting access to certain products or benefits can signal higher perceived quality (Zeithaml, 1998) and an increased willingness to buy.

Amazon entice with convenience (‘free’ one-day shipping), priority (30-min Early Access Lightning Deals) and exclusive choice (a vast music, video and book library). What benefits would your own customers pay for? What feelings can gaining access promote?

Limited Access

We place greater value in things when there are barriers placed around them

Paying to unlock benefits leads us to illusions of superiority, greater value analysis and a need to justify sunk costs by spending more once inside.

The study

Setup

310 US Amazon Prime customers were split into 2 groups, either on a free trial or on a paid membership. They were then queried about attitudes towards and value perceptions of Prime and its benefits.

Results

Those on the paid subscription reported greater loyalty, perceived value and exhibited a higher monthly spend than those who were on the free trial.

np_read_2490885_000000

In detail

Connected to

Running workshops?

Limited Access

is included in Box One of our physical workshop tool.
is included in Box Two of our physical workshop tool.
Box One