But what exactly<\/em> makes them so addictive to consumers?<\/a> <\/p>\n\n\n\n Simple: they\u2019re built on powerful psychological drivers that keep people coming back for more. <\/p>\n\n\n\n In this blog, we\u2019re breaking down the psychology of restaurant rewards programs, from the top five concepts behind effective rewards programs to tips for creating a restaurant rewards program that\u2019s just as addictive as the big players. <\/p>\n\n\n\n Let\u2019s dive in.<\/p>\n\n\n\n The goal gradient effect<\/a> is a psychological concept that suggests the closer people get to achieving a goal, the harder and faster they\u2019ll work to reach it. <\/p>\n\n\n\n So, in the context of restaurant rewards programs, the closer your consumer is to getting a reward, the more effort they\u2019ll put in to actually get the reward. <\/p>\n\n\n\n For example, let\u2019s say your restaurant rewards program offers a free item at 100 points. The person sitting at 90 points is more likely to come back and spend whatever they need to get those extra 10 points compared to the person who only has 15 points. This is how making progress in a rewards program can motivate customers to keep spending and earning. <\/p>\n\n\n\n A customer\u2019s perceived value is how much they believe something to be worth based on that thing\u2019s benefits vs. its cost. According to HubSpot<\/a>, the formula for this psychological belief is expected benefit \u2013 perceived cost = perceived value. <\/em><\/p>\n\n\n\n This is one of the reasons restaurant rewards programs are so effective. It\u2019s satisfying for customers to watch their points balance climb, especially when they visually see how close the next reward is. Then, when they finally get to redeem their hard-earned points, the concept of \u201cfree\u201d items is so exciting that it doesn\u2019t really matter how much they spent to get there. <\/p>\n\n\n\n As long as your restaurant rewards program offer benefits your customers actually want, then perceived value will always work in your favor. <\/p>\n\n\n\n Loss aversion<\/a> is a concept that suggests people hate the feeling of losing more than they enjoy the feeling of winning.<\/p>\n\n\n\n When applied to restaurant rewards programs, loss aversion means that customers might be more inclined to take advantage of a deal or promotion because they don\u2019t want to \u201close\u201d it. <\/p>\n\n\n\n For example, imagine your restaurant rewards program has a promotion for a limited-time deal, like a free appetizer on Tuesdays. Even if a customer wasn\u2019t planning on visiting your restaurant on that specific Tuesday \u2014 and even if they\u2019ve never been interested in that specific appetizer before \u2014 they may redeem the promo anyway, because it feels bad to miss out on the opportunity. <\/p>\n\n\n\n The sunk cost fallacy<\/a> is a concept that suggests the more people invest in something \u2014 whether time, money, or emotional effort \u2014 the more likely they are to keep going. <\/p>\n\n\n\n This is a big contributing factor to why restaurant rewards programs are so impactful. Because of the sunk cost fallacy, customers may be more likely to continue participating in your rewards program the longer they\u2019ve been a member (because of how much time they\u2019ve already put in), or the higher the rewards level they achieve (because of how much money they\u2019ve already spent). <\/p>\n\n\n\n Keeping your customers engaged in your restaurant rewards program is key here, because the more they put in, the more they\u2019ll want to stick around. <\/p>\n\n\n\n The scarcity principle<\/a> suggests that, when a person sees something as exclusive or hard to get, they\u2019ll place greater value on that thing (even if it\u2019s not actually that exclusive in real life<\/em>). <\/p>\n\n\n\n One way restaurant rewards programs leverage the scarcity principle is through tiered loyalty offerings, like Silver, Gold, and Diamond rewards levels, for example. <\/p>\n\n\n\n Top loyalty tiers aren\u2019t typically easy or fast to achieve, so not many people will actually become Diamond-tier members. The scarcity principle makes Diamond-tier loyalty an incredibly exclusive, high-value milestone for customers, which can boost motivation and encourage repeat visits for those working toward that status symbol. <\/p>\n\n\n\n Exclusive experiences can go a long way in holding customer interest in your restaurant rewards program!<\/a> <\/p>\n\n\n\nGoal gradient effect <\/h2>\n\n\n\n
Customer perceived value <\/h2>\n\n\n\n
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<\/figure>\n\n\n\nLoss aversion<\/h2>\n\n\n\n
Sunk cost fallacy<\/h2>\n\n\n\n
The scarcity principle<\/h2>\n\n\n\n