How Social Rewards Programs are Changing Digital Marketing
Rewards programs are everywhere. Credit cards, frequent flier miles, grocery chains and drug stores. You can hardly buy a book or pack of gum without them asking you if you have a card or if you’re a member. Last Friday I attended a board meeting at swanky Del Frisco’s on Boston’s waterfront and guess what? They have a rewards program. For every dollar spent you get a point redeemable for gift cards and dinners. It creates and incentive to dine there – especially if you are near the next threshold to redeem your points for a gift.
Social proof, also known as informational social influence, occurs in social situations when people are not sure how to behave. They make the assumption that surrounding people possess more knowledge about the situation and assume the behavior of others will yield the best outcome.
