Points pressure and medium maximisation
People increase effort to reach a reward threshold and chase the points themselves, even when the points do not improve the outcome.
Where it applies
Four of the eight page areas.
HomepageNot typical CategoryNot typical SearchNot typical ProductNot typical CartAlso applies CheckoutAlso applies Post-purchaseMainly here
It also applies sitewide, on every page. See everything at work on Post-purchase pages
How to use it
Three ways to use it, and one to avoid.
- Show the points balance in the confirmation email and account area.
- Show the distance to the next reward alongside the balance.
- Set attainable thresholds.
- Avoid: points expiry, devaluation or earn rules that are not transparent and fair.
What the research found
Points sway choices in the lab and lift spending in loyalty programmes.
Points could sway people towards options with worse outcomes.
Hsee and colleagues found in lab choice experiments that points could sway people towards options with worse outcomes. Taylor and Neslin found a grocery points programme lifted spending as customers worked towards the reward, and Kopalle and colleagues found similar points pressure in a hotel programme. Overlaps with goal-gradient and endowed progress.
Key research
Three sources, each checked.
Last reviewed
Taylor & Neslin (2005) The current and future sales impact of a retail frequency reward program J. Retailing Read the source Hsee, Yu, Zhang & Zhang (2003) Medium Maximization J. Consumer Research Read the source Kopalle, Sun, Neslin, Sun & Swaminathan (2012) The Joint Sales Impact of Frequency Reward and Customer Tier Components of Loyalty Programs Marketing Science Read the source
Before you use it · UK law
Points expiry, devaluation and earn rules must be transparent and fair.
This is simply a pointer to check, not legal advice. Seek legal advice before you put this principle into action.