‘How can rewards be used to drive effective loyalty programs?’. Answering this question, we once again turn to member psychology in relation to rewarded behaviour.

During the past decade, as loyalty programs have come to terms with analysing Big Member Data, it has been consistently observed that members increase their spending after reward redemption for a short period of time. This is part of the Motivational Cycle. So how can you use this cycle to your advantage?

There is an age-old debate about the best way to motivate people in a B2B environment. Should we motivate people to reach their sales targets by rewarding them with merchandise such as gadgets, gift vouchers, Gucci bags? This is known as ‘extrinsic’ motivation.

Or, should individuals motivate themselves by seeing sales as a valuable and personally rewarding activity in itself? This is called ‘intrinsic’ motivation.