We All Cheat
One of our colleague’s children got a public reprimand at school the other day; she had taken a pink slip of paper from the classroom without asking. Our co-worker was telling how he and his wife had seized the opportunity to hammer home a bit of moral responsibility. They even had the little paper offender make an apology to the teacher and punished her with considerable X-Box downtime. He ended his smug lecture on parenthood and morality by stating: “Besides, she could have just asked me yeah? I would have taken home a whole box of paper from the office”.
So, we all cheat … a little. Mostly, we are not even aware of the fact that we do. Like our rationality, our morals seem bounded. Clients often point out that many loyalty program members cheat and that making compliance rules stricter hardly seems to have any effect. It’s not like they’re all bad apples, it’s just that a lot of members seem to curb honesty, here, there and everywhere.
One way of dealing with this is to use an algorithm that detects false claims, a verbal lie detector. Here at MMI we are involved in developing such a tool. Be on the lookout for news of the Pinocchio project.
In the meantime, let us enlighten you about the science of cheating and share with you some of our findings following years of research. To begin with, and quite surprisingly, it has been found consistently that raising the chance of getting caught or increasing the penalty does not seem to stop people from cutting moral corners.
So, what does work? Having people sign a claims form at the top (vs. the bottom) reduces the probability of making a false claim by 25%. Similar results were obtained by confronting people with an honour code. People that were asked to make a voluntary donation for the free cup of coffee in the office were significantly more generous when a picture of a watchful (or third) eye was put on the wall above the coffee maker. An off-the-couch application of these psychological experiments could go a long way in battling cheating in incentive programs.
Motivforce is in line for a host of accolades over the next few months as we’ve been shortlisted for three high profile awards programs with our clients IBM, Lenovo and Celebrity Cruises.
Just in case you might have missed it; a wind of change has started to blow in the loyalty marketing landscape. In Europe the General Data Protection Regulation (GDPR) is about to go live and it marks a heightened privacy consciousness among businesses and their customers. And ultimately, we expect that the principles of GDPR will go global.
Even if you are not operating from the EU, it is not a bad idea to start reflecting on what the new model of data protection will mean for you and your program. Almost certainly, the bar will be raised and your program members will expect you to take your protection of their data to a whole new level.
So, are you GDPR ready? First off, the new privacy laws regulations are going to be complex and you definitely need to consult your legal team for expert advice (Disclaimer 1). But, there are several opportunities for loyalty marketing and programs on the horizon. Read on
This variation on an old Queen song came to mind when we asked ourselves a question that challenges one of the fundamental aspects of loyalty programs. Are those hierarchical program tier structures that group customers in different levels, depending on spending or selling pre-specified amounts, really the most effective design feature? Tiers foster feelings of status, depict various degrees of member loyalty, motivate people to keep their status and can easily be extended.
We’ve been pioneering the fusion of digital games with e-learning since 2006 so it’s good to see that we’ve been ranked among the top 10 gamification technology providers by APAC CIO Outlook Magazine
The development of online education modules continues to be a growth market for Motivforce. While we keep expanding our enablement portfolio with some of our accounts in conjunction with the latest social loyalty tools (such as gamification), others are simply all about business partner learning. We often get asked to come up with a convincing business case that outlines how clients will start earning by learning.
We think there are four key benefits, all with direct important bottom-line implications.
There has been a lot of debate in recent months about the most effective metrics to use when assessing the performance of a loyalty or incentive program.
To see the real effect of the power of loyalty and incentive program it is also recommended to use Confrere Analysis.
Loyalty and incentive programs are powerful tools. Used effectively they can generate habitual behavioral loyalty, increase sales revenue, decrease customer churn, increase share of wallet and limit variety-seeking behavior. Many of these results have been empirically tested in academic research and in award winning case studies.
The future of loyalty programs is mobile. This mantra has been reiterated across many loyalty marketing industry trend reports. It is a mantra that clearly has face value. In fact, it is a no-brainer, as much of our life now revolves around our little handhelds. Most loyalty programs are migrating to mobile platforms, allowing their members instant access any place, any time. Being able to check your points balance, the latest reward additions or quickly swiping through a learning module in a client’s parking lot definitely ups the convenience factor. But, it does not guarantee an engaging mobile program experience. That is why a number of forward-looking brands have started to engage their members by inviting them to share their ‘must-share-moments’ with the brand and explore the face value of the mobile camera.
For the third year in a row Motivforce has struck gold at the 2017 Brandon Hall Excellence Awards with its Know Your IBM channel incentive program, winning the Gold Award for Best Sales Training Program for Extended Enterprise and Gold Award for Best Unique or Innovative Sales Training Program.
In addition, Know Your IBM received a Silver Award for Best Results of a Learning Program; and Bronze for Best Advance in Creating an Extended Enterprise Learning Program.
In our conversations with organizations that are assessing B2B loyalty and incentive programs, a number of negative perceptions inevitably surface.
Here are the top 5 myths about loyalty programs and our evidence as to why they simply aren’t true.