How to increase customer’s engagement


Can behavioural science increase customer loyalty?

Do you want to have loyal and engaged customers? Give them a loyalty card, a voucher, or any other kind of direct incentive and you will keep them engaged. This is at least what a huge amount of firms in a variety of industries assume, and what drives their marketing strategies. However, some insights from behavioural science challenge this assumption, and suggest that different approaches might be more effective. In countries like the US the loyalty marketing industry has been estimated as a $6 billion industry (Berman, 2006) and the usage of loyalty programmes is equally popular in other developed countries as the UK and Canada. Nonetheless, despite the significant amount of programmes offer and the large number of members, an important proportion of them has not been successful. There has been found that only about 39% of members are active participants (Ferguson & Hlavinka, 2007) and the awful performance of many of these programmes results in their abolition (Nunes & Dreze, 2006). ….[READ]



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