Reward or Penalise?

There’s a lesson in DVD stores.

What happens when you don’t return a DVD on time? You get a fine. What happens when a consumer gets a fine? They choose another store, use their partner’s name or just hope they don’t ever have to pay feeling guilty every time they go near a store!

Come on, fess up. It’s true isn’t it?

Why penalise when you can reward?

What if every time you returned a DVD on time you got a credit and every 5th return gave you a free DVD? Most coffee shops manage to achieve this with a cup of coffee and a DVD rents for about the same as a standard coffee these days.

Studies (and common sense) show you would most likely use more product more of the time when an incentive is in place.

What are you penalising your customer for? What could you reward your customer for?

I wonder what a difference a small change of internal policy could make without ever spending an advertising dollar?

Best schedule some time to do a little thunking....