Effect of behavioural factors on responses to customer rewards and incentives has been added to Bookmarks.
Effect of behavioural factors on responses to customer rewards and incentives
Loving the one you’re with
Thanking customers as a way to kindle loyalty seems straightforward enough. It’s not. Learn how behavioral biases can affect outcomes.
Winning customers’ hearts and minds— or more specifically, wallets, good feelings, and positive word of mouth— is a perennial top-of-mind business issue across sectors. But many firms struggle with how best to thank their customers, not only in terms of the amount of resources they should devote, but also the most effective way to acknowledge this good behaviour.
While saying thank you as a way of kindling loyalty seems straightforward enough, research suggests otherwise. People are actually quite sensitive to exactly how an organisation acknowledges their good behaviour, and the field of behavioural economics teaches us that a number of cognitive biases weigh heavily on perceptions.