Motivation - Using Rewards for Marketing
Pepper are able to power a wide range of rewards scenarios; ranging from simple and familiar stamp-card mechanics though to sophisticated tiered based loyalty that takes into an account very specific characteristics of a User’s behaviour.
Whilst bespoke Rewards programmes can be designed on a consultative basis in conjunction with the Merchant (or their partners), the following provides a few examples of what is possible.
The properties of any Reward scenario are managed by the Merchant via the Pepper ‘Web Console’.
Each of these additional models should be used as the primary marketing message and the app supplied as a facilitating channel. E.g. The message should be ‘Win a trip to Ecuador and meet our coffee farmers’, and in order to enter, a user must download the app and create an account or make a purchase.
- Historically, some Pepper Merchants have started by giving away a full stamp card for a free coffee on signup.
Motivational theory used commonly in slot machines ( https://medium.com/@dfcatch/the-psychology-of-loyalty-programs-3a9741c43f41#.vetdl1gq4) suggests that it might be more successful to give a high number of stamps to encourage initial usage. e.g. If I have to buy 9 coffees to get 1 free one, then I should get 6/7 stamps on signup. This increases usage through:
- A high expectancy of reward, and a high motivation (i.e. I'm only 3 stamps away from a free coffee)
- A reinforcing reward early on in their relationship with the app, where the user get's a good feeling (think of slot machine gaming logic - give an early reward after minimal spend to ensure loyalty)
- Increase in learned behaviour - I am highly motivated to make my first 3 purchases, meaning that I have to Topup and Checkin. By the time my motivation has dropped because I have already had one free coffee, it is now habitual and easy to use the app to purchase.
- Consider use of some stronger reward motivators for less frequent actions or on a prize draw basis.
The cost of these prizes can be balanced with a reduction in the number of free coffees being granted, possibly through implementation of #1 Prizes could include:
- A coffee subscription for a period of time
- An Espresso Training workshop
- A large donation for a charity of your choice
- A trip to meet our coffee producers
- Adding other aspects to loyalty in addition to earn & burn increases engagement. One of the benefits of the Pepper Platform is that it allows multiple loyalty models. e.g. Granting users membership of a club, which which grants a set of perks which can only be accessed through the app, or specific perks for users who visit more than one location in a chain.
- Use 'Ad-Hoc', or 'surprise & delight' rewards to give users unexpected perks. Especially based on behaviour which is seen to be 'doing good', this can help to move the loyalty scheme away from being 'earn & burn' to a stronger rewards scheme.