50. People are more motivated as they get closer to a goal

Slide 1

• The idea of the goal-gradient effect is that people tend to accelerate as they get closer to a goal.
• During a study done in 1934 by Clark Hull, the goal-gradient effect was observed in rats and showed that they ran faster toward the end of a maze in order to complete their goal of finding food.
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Slide 2

• Consumers that are part of a rewards program are generally more happy than those who are not.
• Being a member of a loyalty program makes them smile more, engage with employees more, and even tip more.
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Slide 3

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• Many big companies use reward cards to keep customers coming back. However, in this digital age, Apps are replacing cards and are easily accessible on anyones smart phone.
• Starbucks is a good example, every time you purchase a product or complete a goal, you are rewarded with stars. Once you reach a certain number of stars, you are rewarded with a free item.
• Hurry, you're almost there!

Slide 4

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• Interestingly, a company is also most likely to lose the consumer right after the reward has been given, at least temporarily. Even the lure of a second reward is not always enough to get them back right away.
• This is called the post-reward resetting phenomenon.