Creating a virtuous circle is the goal of any successful incentive campaign. The virtuous circle occurs when a user receives their reward, and it inspires them (and ideally those around them) to improve their performance further.
Here’s how we define the reward-redemption cycle:
It’s key to realise that the winning of the points is not in itself inspiring, nor is redeeming their points, to purchase something they want. Inspiration only occurs when a participant receives their product.
It’s important that this cycle is completed quickly so that the recipient can connect the reason with the reward, the benefit with the behaviour. Many incentives fail in this regard because users have to save their points over a long period, or claiming their reward is too convoluted, or product delivery times are too long. All these factors lessen the effectiveness of an incentive campaign.
Of course, if the points not redeemed, the cycle is broken.
Critically, it is essential that the user has a positive experience at all stages of the cycle. Receiving the points needs to be simple, as does the act of spending them.
For online points systems, providing a good experience requires ensuring the shop is easy to use and with a good range of products. Speed of delivery and smooth management of orders are essential to ensure that getting the product doesn’t turn into a chore.