How many cards for 'buy 9 get the 10th free' loyalty programs do you have in your wallet? 

If you're like most people, you have plenty of them.  But, does the punch card really make you loyal to that brand?   Do you rush out to tell your friends how great the brand is (a sign of true loyalty) or do you simply buy enough to get the free product?

These incentive-based "buy one get one free" loyalty programs are so yesterday.  It's easy to throw out coupons and offers to see what sticks and what doesn't.  But in terms of driving loyalty, a "BOGO" campaign is not necessarily even an incentive program. It is a unit based/generic program that may or may not create value.

Why? The big key here is that many of our decisions are based on emotion vs. logic or rational thought.  Behavioral economics --- which focuses on the role psychology and emotions play in decision making and economic behavior --- contends that economic decision making is 70% emotional and 30% rational.

Which is why the old framework of Maslow doesn't work anymore.  And this is also why "BOGO" type incentive programs that tend to be rational do not work well.

It's the emotional side of the decision making process that creates connected, passionate, engaged customers.   Think about it.  Everything we do --- as individuals, as companies, as brands --- is about creating relationships.  We work to engage people and strengthen these bonds through loyalty. 

Knowing that it's  the emotional side of the decision making process that creates connected, passionate, customers, why do so many loyalty programs fail to consider the emotional triggers which significantly stronger and more engaging?

About Loyalty 360

Connecting, educating, and guiding is what Loyalty 360 – The Loyalty Marketer's Association is all about. Committed to bringing loyalty to the forefront as a critical marketing strategy, Loyalty 360 is a trusted source for cutting-edge research, best practices, and networking opportunities. The association gives members the expert insights and guidance they need to better understand loyalty and develop programs that effectively engage their customers and employees and build stronger relationships with them.

www.loyalty360.org