Black Friday. Cyber Monday. Christmas in general. All are shopping events.
This time of year all of us are inundated with marketing and advertising urging us to go shopping. All the retailers want you to shop, shop, shop ‘til you drop. And spend your money. And all this talk about shopping got me thinking about award and incentive programs.
Shopping is Not Awarding
If you’ve ever been a participant in an incentive program that awarded “points” for achieving ongoing goals you probably have had the opportunity to redeem the points you earned for merchandise, individual travel or other awards through the incentive provider’s online catalog. Or you might even have a physical catalog on your desk or coffee table (although they went the way of the Dodo a few years back. Hint to forward thinking providers - resurrect that concept– really – retro is cool - but that’s another post.)
In almost every incentive program you are urged to “shop” the awards catalog. When you go to redeem online it looks, feels, smells and acts like an online retailer site. There is the usual “shopping” cart. They ask if you want to “check out.” They offer suggestions and specials to get you to part with your points. They are SELLING to you.
One huge retail environment.
And I’m guessing – the same things that run through your mind when you spend MONEY goes through your mind when you REDEEM POINTS. And that, I believe, is a huge mistake made by the incentive providers and the exact opposite experience your award earners should have.
When you shop you are giving up one asset for another. You make judgments on that value exchange. You look for sales. You look for coupons. You look for ways to maximize your return on your hard-earned dollars. That shouldn’t be how you feel when you redeem for awards using points.
In other words – incentive companies make a big deal out of separating points from cash in order to keep participants from equating it to compensation – but then they put the participant back into an environment that is EXACTLY like one they would be in if they had been awarded cash.
Not only that – one more parting shot – points are held in a “point bank account” – and big bank account balance are better right? Again – another monetary reference that reinforces a monetary standard of saving versus spending.
Seems to be a bit of a disconnect no?
It’s Not Shopping – It’s Selecting and Awarding
You don’t want participants to shop. You want them to reward themselves. You want them to freely release points for rewards.
It’s time to stop using the cash analog of shopping when it comes to redeeming for awards.
Change the Process, The Vocabulary, The Experience
My recommendation is that we need to go back to square one and redefine the redemption process and do our best to eliminate any connection to shopping.
The first thing I’d do is change the vocabulary…
- Instead of a shopping cart why not a “Reward Pile?”
- Instead of shopping for awards participants are “Rewarding Themselves?”
- Instead of checking out you get people to “Get Your Rewards Now?”
Secondly, I’d change the process so that the participant chooses “awards” at the beginning. We used to call it a “wish list” – and now that’s kind of an afterthought. What if we made it a requirement that participants create a wish list within a few weeks of the program announcement? Then the “shopping” experience isn’t shopping but a “receiving” experience based on what you’ve already earned and identified as a reward. It’s getting the stuff you’ve already selected and worked for.
What if every time you moved an award from your “Want to Earn” list to your “I’ve Earned” list you get a bonus award? What if we changed the experience from “debiting” your award bank account to “increasing your award receipts?”
Some may say these are minor points – nits – differences without distinction – but they are critical cues your participants pick up consciously or subconsciously that communicate that they’re spending money. That tells them not to do it. Especially in this economy.
Don’t get me wrong – this is not about selling merchandise (or any award for that matter) – it’s about getting participants to experience the rewards they’ve earned.
But the entire system is set up to do the opposite.
Start over.
Do it different. Please?
Great post. I couldn't agree more. For a similar line of thinking about the impact of shopping mentality on the experience, take a look at this post from Dan Ariely http://danariely.com/2010/11/26/an-irrational-guide-to-gifts/.
Posted by: Mark Peterman @stlpeterman | November 30, 2010 at 09:55 AM
Funny you bring that up - I was re-reading that post this morning in my starred items folder in google reader. I was thinking of linking to it - but it started to get me going down the whole "guilt" path - which is one of the issues as well with the whole "shopping" gig - and the post started to get too long.
For those that stop by - go to the post that Mark references - you won't be disappointed.
Thanks Mark for engaging.
Posted by: Paul Hebert | November 30, 2010 at 09:59 AM