Loyalty and rewards programs can be great motivators. When a business rewards the behavior they want from their customers – say, giving them a free coffee after they consume nine – they encourage that behavior. The most potent loyalty programs go beyond mere periodic freebies and confer status.
Aside from their responsive Twitter account, I was also impressed by the company’s use of foursquareto reward the “mayor” of Marylebone station with the privilege of switching on the Christmas lights – an innovative way to recognise a loyal customer.
Every merchant seems to have a loyalty program these days. It makes sense to reward customers for their patronage and encourage even greater frequency. But, it appears there’s one kind of loyalty reward that may be more effective. One study showed that “irrelevant information” (in this case, largely valueless loyalty points) changed consumer buying decisions.