Using Rewards to Create Moments That Matter - Maritz Motivation

POINT OF VIEW

April, 2015

Using Rewards to Create Moments That Matter

®

© 2015 Maritz All rights reserved

POINT OF VIEW

April, 2015

In today’s complex and rapidly changing world, people search for meaning and connection in most every aspect of their lives—including their relationships with organizations and brands. That’s why progressive companies work hard to build authentic, purpose-driven relationships with their employees, business allies and customers … relationships that not only help propel a business forward but enrich the lives of these key stakeholders in ways that truly make them feel special. But positive, resilient relationships like these don’t happen by accident. They’re built on a foundation of trust and common purpose—then nourished through shared experiences that deliver “moments that matter.” Over time, it’s the sum total of these moments that helps define the business in the minds of the people who are most important to its success. Rewards, recognition and loyalty programs can provide an important foundation for building better business and better lives. Designed right, they deepen the relationship with a brand by moving beyond a “do this, get that” exchange and engaging stakeholders in ways that matter most to them. In other words, a well-designed program provides opportunities for people to get what they want as part of a mutually beneficial partnership. How do you provide your stakeholders with a program experience that truly delivers moments that matter? At Maritz, we use a people-centered approach when considering how the opportunity to earn rewards can make the entire experience feel rewarding. This approach begins by putting our clients’ stakeholders at the center of strategy and then using the following guidelines to design an approach that leverages the power of rewards to inspire and motivate.

1. Start with Purpose and Values.

Because incentive, loyalty or recognition programs—for better or worse—reflect the purpose and values of the organization that provides them, it’s essential that the rewards experience represents the identity of the brand and the organization that stands behind it … inviting people to share in that identity as being part of their “best selves.”

We deliver Moments that Matter.

That’s why the starting point for designing an experience that truly reflects the organization’s core values is being crystal clear about the role rewards, along with all other program elements, will play in reinforcing brand authenticity. What mission will each play? How will all program elements be blended together to create moments that matter, building shared meaning, shared purpose and shared benefits?

2. Bring a Deep Understanding of People.

Designing a program experience that accomplishes this important mission requires a deeper understanding of the people who will participate. For Maritz designers, The Maritz Institute provides an important source for insights into human motivation and people-centered design practices. For example, the Four-Drive Theory advanced by Paul Lawrence and Nitin Nohria of Harvard Business School provides Maritz designers with a vital framework for understanding the four biological drives that are fundamental to human behavior: Acquire, Bond, Create and Defend. By advancing beyond time-worn design approaches that focus mostly on the drive to Acquire, Maritz designers consider the role tangible rewards will play in activating the powerful emotions underpinning all four of these drives. For example, how will the entire participation experience feel socially rewarding when stakeholders share their experiences and stories? How can game mechanics be used to encourage learning? How might competition be introduced as a way to gain and maintain special status? How could the program support a community where stakeholders interact and support each other?

© 2015 Maritz Motivation Solutions • The Maritz Institute


1

POINT OF VIEW

April, 2015

Perspective-taking can also contribute greatly to program experience design. By using empathy and observation, designers are better able to understand the needs of those for whom they’re designing and balance those needs with the business mission established for the program. Stepping into the shoes of stakeholders also helps the designer avoid personal bias and shift the conversation from “How do we get them to do what we want?” to “How can we create an experience filled with moments that matter that delivers mutual benefit?” Finally, insight gleaned from stakeholder data—including analysis of behavioral, attitudinal and emotional data sets—can be particularly helpful to designers seeking to understand the current stakeholder experience and for guiding the way to something better.

Bond

Acquire

Driven to acquire stuff, status, resources

Driven to fit in, engage, share, connect to the community

CHOICE

Defend

Create

Driven to defend status, stuff, ideas and relationships

Driven to learn, understand,express, “create” impact

Based on the work of Paul Lawrence and Nitin Nohria at Harvard Business School ©2015 The Maritz Institute. All rights reserved.

3. Offer the Right Types of Rewards.

Because earning and enjoying rewards is central to the participation experience, offering the right mix can make all the difference between inspiration and apathy … between extraordinary results and lackluster outcomes. That’s why it’s vital that the designer bring a deep understanding of the people who will participate—both as stakeholders of the business and as human beings— to the process of selecting rewards. Which rewards will carry the most meaning, spark the most joy and create lasting memories? And how will the rewards offering strengthen relationships by reflecting the purpose and values of the brand across all geographies?

REWARD SPECTRUM Pre-Determined Branded Items In-Kind

D AN R B

Limited Selection

Filtered Reward Cards

Travel Experiential

Merchandise

Gift Cards

Discounts

Rebates

Open Cards/Cash

ON ECTI N N CO

Branded Choice

Non-Branded Choice

How the rewards you choose impact your brand & program results With such a wide spectrum of reward possibilities available, deciding what types of rewards to offer can seem daunting. At one end of the spectrum, there’s cash and cash-equivalent gift cards. Since cash is universally understood and because most people, when asked, will say they want more money, why not simply default to cash? At the opposite end of the spectrum, the approach is to offer a few, pre-defined items chosen because they’re thought to have unique appeal. And what about in-kind rewards like free products and services that are closely linked Meaningful to brand identity? &

Memorable


Meaningful & Memorable


2

POINT OF VIEW

April, 2015

For incentive, recognition and loyalty programs, the best answer for what type of rewards to offer can often be found—not at the edges of the spectrum—but in the middle. That’s because selecting the right rewards is really about achieving a balance between the non-branded choice of cash payments or cash cards, and a limited choice of branded items that may not appeal to a diverse audience. The most effective approach is to carefully curate a selection of reward options based on the mission of the program and essence of the organization’s brand … realizing that rewards like quality merchandise, experiential travel, philanthropic options and filtered reward cards accomplish a job that is distinctly different from cash payments, branded items or even free, in-kind products. Because these rewards take people out of the realm of day-to-day, moneybased transactions, they have the potential to be better at being rewards. Better at inspiring people to accomplish more. Better at reflecting the true essence of the brand. Better at creating moments that matter.

Here are some important reasons why: Tangible, non-monetary rewards facilitate goal-setting because they help people form mental pictures of what success will look like. Further, because they can be visualized as very specific and positive consequences of one’s efforts, people tend to think about them more often than monetary rewards. This increased focus also spurs goal-getting behaviors and has been shown to increase results. Tangible rewards can align to a company’s purpose and values; where cash or cash equivalents don’t always create clear connections … and may even erode brand values through non-aligned spending. Tangible and experiential rewards (like travel) hold greater salience because they’re socially-acceptable rewards that can be referenced, talked about and acknowledged by others.

The most effective approach is to carefully curate a selection of reward options based on the mission of the program and essence of the organization’s brand.

Because they can be mentally separated from cash-based compensation and in-kind offerings, tangible rewards effectively give people permission to splurge on things they really want and couldn’t otherwise justify as a personal expense … things that hold greater motivational appeal as a reward. Tangible rewards provide greater flexibility to promote and adjust over time – unlike monetary rewards which can grow to become an expected part of compensation.

4. Curate Rewards to Consistently Reflect the Brand.

When focusing on the middle of the reward spectrum, there are a multitude of reward options for designers to consider. Here, the design goal is to thoughtfully match or “curate” the selection to what people in the program want and to keep it novel, relevant and brand-aligned over time. At Maritz, we consider all three of the perspectives needed to effectively curate a rewards selection that achieves results throughout the program lifecycle: 1. The client company/brand-centric view that considers the sponsoring organization’s cultural and external brand attributes to determine the types of items and complementary brands that will best reflect the organization’s values and brand identity. 2. The “inside/out” or stakeholder-centric view where empathetic perspective-taking and stakeholder research is used to capture input about reward preferences and the overall program experience.



3

POINT OF VIEW

April, 2015

3. An “outside/in” or retail marketplace view that’s informed by a variety of sources, including multi-program reward redemption data, big data analysis and digital social intelligence to visualize trending topics. This information, along with insights gleaned from years of analyzing reward redemption patterns, helps confirm the appeal of items in the selection. Taken together, these views provide unparalleled insight into what people want for themselves and how an offering should be carefully curated to build positive impact over time. And, should client program requirements include supplementing tangible rewards and individual travel with additional options from either end of the reward spectrum, Maritz has the expertise to source and fulfill all other reward types as well.

5. Use Points to Maximize the Earn Experience

Designers know that the most effective programs encourage people to experience the program as a type of game, where it can be just as much fun to play as it is to win. For this reason, earning points as an indication of progress and as a medium of exchange for rewards leverages a time-proven game mechanic that is much more than a means to an end. Earning points provides the brain with a form of mini-reward that helps relieve the mental conflict between craving instant gratification and having to do more over a longer period of time to gain something of greater value. And, since people enjoy imagining what pleasurable experiences—like earning a reward—will be like, earning points provides regular reminders of progress that fuel anticipation. Earning points can even serve to build self-image simply by increasing the feeling that one truly deserves a reward when it’s earned. Just as anticipation is gratifying, so is memory. It’s highly pleasurable to “relive” past enjoyment. People respond to current experiences and make better decisions based on remembered past experiences. Memory is also critical for determining behavior and attitudes. The earn side of a program experience is a powerful way to create positively-charged memories in the minds of stakeholders. When program interactions, like earning points, spark moments that matter during the earn experience, these positive emotions will not only be triggered by future interactions, but will also prime people to want to continue their association with the organization or the brand.

6. Deliver a World-Class Shopping Experience

Having earned and accumulated points for their achievements or brand loyalty, it’s now time for stakeholders to finalize their choices and redeem their points. This is an especially important moment in the program experience because, like a good story, people tend to remember the ending more than everything else that came before. So, fulfilling rewards in an engaging, immediate way can either create a “halo” for the brand or, conversely, diminish a hard-earned relationship if not executed just right. To bring these special moments to life, Maritz has invested in an industry-leading reward fulfillment capability that does not disappoint. From reward selection to delivery, the experience is designed to acknowledge stakeholder accomplishments and strengthen their relationship with the brand.



4

POINT OF VIEW

April, 2015

It begins with an online shopping site that’s on-par with top tier retailers and delivers global reach with features that include: – Rewards that are region specific and culturally relevant for stakeholders located across the world – Configurable content matched to client program, brand and language requirements – Highly visible displays that encourage goal-setting and provide a human context for rewards – Dynamic merchandising with frequent selection updates based on the latest “must have” items – Optional personal shopping and concierge services And, there are additional features that enhance the shopping experience of stakeholders visiting our U.S. shopping site: – Sophisticated search capabilities – Ratings, reviews and social sharing that provide “social proof” of the rewards experience – Sophisticated analytics that provide insight into participant behaviors and preferences — and that help Maritz designers anticipate categories that will grow in popularity – Special handling and gift wrapping – Individual travel planning and purchasing support

Beginning with a carefully curated selection, the experience progresses through all the steps leading to the ultimate moment of truth: when points are redeemed and rewards are received with accuracy and immediacy. This is where Maritz’ fulfillment capability delivers the most rewarding stakeholder experience … and peace of mind for client program owners. In summary, Maritz has designed everything about the rewards experience—from earning through shopping and fulfillment—to make people across the globe feel rewarded and recognized.

7. Create a Total Program Experience

While providing the right mix of rewards is vital to program success, it would be a mistake to confuse issuing rewards with motivation and believe that having a rewards strategy in place completes the program experience. At Maritz, experience designers use a framework that, in addition to rewards, considers three other core elements or “pillars” that support a total program experience: Attention, Goal Commitment and Progress Feedback. As with the Rewards pillar, strategy is developed for each and then carefully integrated to unify the experience from the stakeholder’s point-of-view.



5

POINT OF VIEW

April, 2015

A Head-Turning Attention Strategy In modern life, attention is an increasingly scarce resource. Getting and keeping attention requires a thoughtful approach grounded in both art and science. One way to cut through the clutter is to activate emotions that help guide people toward what’s important. Positive emotions invite people to look beyond immediate concerns and explore opportunities for personal growth. That’s why messages that are framed to activate more than one motivational drive are more likely to receive attention. It’s also important for stakeholders to perceive overlap between their personal values and those of the client company or brand. When crafted around science-based design principles like novelty, storytelling, simplicity and credibility, an attention strategy creates heightened awareness and enables stakeholders to understand how their effort will result in true mutual benefit.

An Actionable Goal Commitment Strategy Unless people make a personal commitment to take on a goal and make it their own, nothing much is likely to happen. For starters, it’s important that people understand the “why” behind program goals and see them as consistent with their values. Goals must also be perceived as both fair and achievable for people to engage. The experience can also be designed to help program stakeholders set intentions and identify the actions they will take to be successful. Here, providing ways for people to share their goals with others, giving them the autonomy to determine how they’ll be successful and providing the resources necessary to get the job done are all ways to accelerate goal commitment.

A Progress Feedback Strategy People continually seek feedback to understand how they’re doing. People feel especially positive about their work after making progress on something they feel is important and meaningful. So, once a stakeholder has internalized a goal and is taking action to achieve it, the program experience should deliver timely feedback and even include opportunities for coaching. Telling stories, presenting statistics in human terms and publishing testimonials are all forms of social proof that help drive engagement. And because people like to have fun, introducing game mechanics and visual or novel representations of progress will help them understand where they are and what they need to do to get to the next level.

Moments that Matter Build Better Business and Better Lives

For over 85 years, Maritz has understood the important role that rewards play in unleashing human potential. Today, programs built around carefully curated rewards as positive outcomes for stakeholder involvement can help companies move beyond transaction-based relationships to create something more inspiring, more meaningful and more memorable. Doing so starts with a deeper understanding of people that’s reflected throughout a cohesive strategy that ties all program elements together. Driven by purpose, these program experiences activate positive emotions associated with all four motivational drives while they build awareness, encourage goal setting, convey progress and reward achievement. In other words, these experiences are designed to spark moments that matter that help build better business for Maritz clients and better lives for their stakeholders.



6

POINT OF VIEW

April, 2015

References The following documents and the references cited in these documents have informed the content of this paper: Amabile, T. M., & Kramer, S. J. (2011). The progress principle: Using small wins to ignite joy, engagement, and creativity at work. Boston, MA: Harvard Business Review Press. This book provides important insight about the role of progress feedback in powering the accomplishment of meaningful work. Godar, P., & Frey, R. (2014, July). 4 ways to transform your rewards strategy. Workspan. This article advises recognition program practitioners to take a holistic approach to rewards program design – incorporating strategies for awareness, goal commitment and progress feedback. Jeffrey, S. A. (2003). The benefits of tangible non-monetary incentives. SITE Foundation executive white paper. This paper summarizes research that compares the effectiveness of non-monetary and monetary rewards. Jeffrey, S A., & Adomdza, G. K. (2011). Incentive salience and improved performance. Human Performance, 24(1), 47-59. doi:10.1080/08959285.2010.530631. Research indicating that people think more frequently about non-monetary reward goals and perform at higher levels. Kahneman, D. (2011). Thinking fast and slow. New York, NY: Farrar, Straus and Giroux. A seminal work that explores human decision-making through the lens of economics. Kirk, B. (2010, August). Earn, burn and yearn: A new paradigm for loyalty marketing – Building loyalty along the “earn, burn, yearn” continuum leads to lasting relationships. Maritz Motivation Solutions white paper. This paper spotlights strategies that help consumer loyalty practitioners enhance the “earn” and “yearn” dimensions of their program experience. Kirk, B., Buttery, K., Versiglia, G., & McEuen, M. B. (2009, August). The psychological continuum of loyalty. The Maritz Institute white paper. This paper explores the hypothesis that stakeholder relationships comprise a strategic business advantage that cannot be duplicated by competition and spotlights scientific research that informs the development of “true loyalty.” Lawrence, P. R., & Nohria, N. (2002). Driven: How human nature shapes our choices. New York, NY: John Wiley & Sons, Inc. A ground-breaking analysis of scientific discovery that synthesizes human motivation into four primary biological drives: Acquire, Bond, Create (Learn) and Defend. Luckey, M. (2014). It’s all about people–Creating experiences that matter. Maritz Motivation Solutions white paper. This paper provides practitioner guidance for moving beyond transactional programs to more complete program experiences. Maritz Motivation Solutions (2012, August). The what, why and how of purposeful choice®. Maritz Motivation Solutions white paper. This paper reinforces the importance of avoiding a “one size fits all” approach to rewards selections. McEuen, M. B. (2010, February). Breakthrough loyalty: motivation framework for the new normal. The Maritz Institute white paper. This paper introduces Four-Drive Theory as a way to understand human motivation to design next generation motivation programs/initiatives. Pokorny, M., & Frey, R. (2012). The four pillars that support effective motivation initiatives. The Maritz Institute white paper. This white paper provides Maritz designers with guidance for developing program strategies for awareness, goal commitment, progress feedback and rewards.

This point of view was written by Russ Frey and designed by Doug Peters. Special thanks also to Mary Luckey, Jen Hunter, Chip Schafer, Mary Beth McEuen, Paula Godar and John Villier.

For more information, please visit Maritz at www.maritz.com or call (877) 4 MARITZ.



7

Using Rewards to Create Moments That Matter - Maritz Motivation

Recommend Documents