As one example, consider the preferences of customers from Western cultures compared to those from Asian cultures. Customers with a Western mindset tend to prefer loyalty programs in which rewards come incrementally. For each dollar or euro you spend, you get points. Smaller rewards are available for a small number of points and larger rewards are available to those who save up their points. Be sure the redemption rules are easy to understand. Then each time the customer makes a purchase, print the current point tally on the receipt. Minimize the surprises.
On the other hand, customers with an Asian mindset tend to prefer loyalty programs which offer larger rewards earned with an element of fate. Give sweepstakes entries or lottery tickets. Name the program with words that signify good luck. Because many Asian cultures stress duty to the group over individual glory, avoid publicizing the identities of big winners. Otherwise, those big winners and all those who see the publicity may come to fear that the loyalty program tempts fate in ways that could bring bad fortune.
Here, too, we minimize the surprises. In fact, it can be even more important to the Asian consumer than to the Western consumer that they know they earned the reward. Researchers from Baruch College, University of California-Berkeley, and San Francisco State University surprised people with completely unexpected promotional gifts of appreciation. Those from the United States enjoyed their surprise gifts more than did those from Hong Kong, Singapore, Taiwan or Vietnam. Because the reward appeared to be unearned, the East Asian recipients seemed to feel it produced a menacing imbalance.
For your profitability: Sell Well: What Really Moves Your Shoppers
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