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NPL for Cashback Services and Online Coupons

Use "Variable reward". In the very base of most products building the habits is the "variable reward". The most important word is - variable.

"Skinner's Box"

In 1950s Berres Skinner made an experiment which allows to understand the true potential of the variable rewards and its influence on the retention rate.

First he put the pigeons into the box with a lever. After being pushed the food was given. Pigeons soon understood the mechanics and after that started using it when it was needed.

In the second part of the experiment Skinner changed the logics of lever mechanics. Instead of constant food delivery the lever brought food only sometimes. It made the food (a reward) variable.The frequency of lever usage significantly grew and pigeons used it not only when they were hungry but even just because.

Variable Reward

The reward thirst and lack of transparency in the algorithm of getting the prize stimulate specific areas of our mind, which are responsible for pleasure.

Anyway, definitely you shouldn't all the rewards to "variable". But you can start using such schema in different user's clusters. The result will surprise you.

Please notice that the reward should be important and significant for a user. Social rewards are the most effective in cashback and online coupons spheres. People are keen to feel themselves important. They willing to feel successful, superior among the others.

It's better to use such case not only in personalized mailings but in the notifications of your mobile app and browser extension because this is a 100% way to attract the user's attention. Start personalized offers for exact products - and get a pleasure from the retention rate growth.

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