Have you ever noticed that feeling of excitement when you sign up for a loyalty program and get a shiny new digital punch card? It’s like embarking on a rewarding adventure where every purchase brings you one step closer to claiming enticing rewards. Those little stamps hold the promise of something special, and they become a symbol of our loyalty to the brand.
As we indulge in this loyalty journey, we find ourselves surprisingly eager to make additional purchases, just to earn a few more stamps on our card. It’s almost like a game where we strive to get more money down on our receipt to unlock those coveted rewards.
But what exactly is it about these digital punch cards that make them so compelling? How do they weave their magic, influencing our purchasing decisions, and nurturing our loyalty to a particular brand or business?
The Psychology of Collection
Humans like collecting things. Artwork, photo albums, action figurines—collections are everywhere around us. According to the Guardian, about 33% of people in the United Kingdom alone have a collection.
Why this phenomenon exists has everything to do with the pleasure centres in our brains. When triggered, these pleasure centres release dopamine into our brain that makes us feel happy.
In this article, we will see how, in rewarding customer loyalty, every aspect of digital punch cards can activate these pleasure centres and release the dopamine that we so desperately crave.
Oddball Paradigm: Periodic Incentives
Periodic rewards on punch cards can help reinforce the behavior of collecting. This is because receiving something unique after a series of ordinary items triggers a flood of dopamine. , a neurotransmitter associated with pleasure and reward. When customers can see the rewards plainly on their punch cards, it motivates them to collect them because they know that they are working towards something special. The rewards themselves are also unique, which makes them even more desirable.
Novelty Effect: Different Rewards
Introducing more valuable rewards as customers collect more stamps can be a powerful motivator. This is because humans tend to perceive new things as being more valuable. When customers see that they can earn better rewards as they continue to collect stamps, they are more likely to be motivated to keep coming back.
This is also a good way to keep customers engaged. If the rewards are always the same, customers may eventually lose interest. By introducing new and different rewards, you can keep them coming back for more.
Ultimately, digital punch cards can be a great way to reward customer loyalty. By offering valuable rewards and keeping things fresh, you can encourage customers to keep coming back for more.
Loss Aversion: Worthwhile Rewards
As it turns out, humans like to obtain things at as low a cost to them as possible. They would much rather reduce loss than to acquire an object of similar value.
This is why you need to make your rewards worthwhile to your customers. They need to perceive that the amount of time and money they spent collecting your stamps to get the reward is nothing compared to the value that they will receive.
Whether or not your reward is considered worthwhile depends on the individual customer. You may have to invest in customer segmentation and targeted marketing, as well as a spot of A/B testing, in order to determine what are worthwhile rewards.
Anticipation: Process of Collection
As we collect things, we often imagine what sort of value the rewards would bring to us. This is certain to cause some anticipation in us that results in the activation of the pleasure centres.
In fact, the brain reacts the most strongly when we are on the cusp of receiving a reward.
Digital punch cards do exactly that. They show customers, at face value, how close they are to receiving a reward.
You can even bump up this effect with automated reminders via email or SMS that your customer is extremely close to obtaining their reward to heighten that sense of anticipation.
Sense of Community: Competition
Healthy competition is a great way to motivate people to perform better, to rank higher than others. Not only that, but it can bring people together, especially to compare their progress.
On the same vein, Punch Cards can facilitate competition that encourage customers to interact with your brand more to earn loyalty stamps to best other collectors.
Sometimes, collectors collect just so that they can meet other like-minded people. This is a way for them to connect to others—through their mutual love for your Stamp Card loyalty program.
There are many reasons why we collect things, and those very same reasons play into our love for Stamp Cards. That is why Stamp Cards has become widespread when it comes to rewarding customer loyalty.
If you would like to embark on your quest in rewarding customer loyalty today, then be sure to consider our services! With Vouchermatic, you can implement Stamp Cards into your loyalty system today.
With an API-first platform, we can integrate our software seamlessly into your existing website or apps. Moreover, you don’t have to learn how to use our software—we’ll handle the technical side for you!
Interested? Then contact us here today to start rewarding customer loyalty. Our dedicated team will answer your questions, and you can even request a free demo!
