For decades, loyalty programs have been built rewarding customers for what they’ve already done. I.e., Spend, Earn, Redeem. Repeat.
But the most effective programs today, and the ones shaping the future, are not just rewarding behaviour. They are engineering it.
At the centre of this evolution sits a powerful concept we call The Striving Effect.
From Rewarding Behaviour to Driving It
At its core, a loyalty program is a “desirable behaviour stimulation program” . The ambition isn’t just to recognise loyalty, it’s to create it through intentional behavioural design.
Historically, much of the industry has focused on:
- Earn and burn mechanics
- Points accumulation
- Redemption value
But this framing is backward-looking. It rewards past behaviour.
The striving effect flips this.
Instead of asking:
“How do we reward what a member just did?”
We ask:
“How do we motivate what they do next?”
The Psychological Foundation
To understand the striving effect, we need to look at Expectancy Theory of Motivation.
In simple terms, Expectancy Theory suggests that people are motivated when:
- They believe effort will lead to performance
- They believe performance will lead to a reward
- They value that reward
In a loyalty context, this translates to:
- “If I make one more purchase…”
- “…I will get closer to something valuable…”
- “…and that outcome is worth it.”
This is where many loyalty programs stop. They create rewards, but they don’t always create clear, compelling progress toward them.
The striving effect lives in that gap.
The Striving Effect Defined
The Striving Effect is the behavioural dynamic where:
Members are motivated not by the reward itself, but by the progress toward it
It’s the difference between:
- A passive points balance
vs - A visible, achievable next step
Humans are wired to complete journeys. When progress is visible, achievable and soon
…it creates momentum.
This is why loyalty programs, when designed well (aka by Loyalty & Reward Co), can influence where customers buy, how often they buy, and how much they spend.
Designing for the Next Transaction
One of the most practical applications of The Striving Effect is in transactional cadence.
A core question we are increasingly exploring with clients is:
How do we design a program that motivates the next transaction… and then the next… and then the next?
This shifts loyalty design from:
- Lifetime value thinking
to - Next action thinking
Key design principles:
1. Shorten the distance to value
If the reward feels too far away, motivation collapses
2. Make progress visible
Progress bars, milestones, and nudges reinforce movement
3. Trigger “just one more” behaviour
The most powerful moment is when a member is close:
- “Spend $12 more to unlock your reward”
- “One more visit to reach your next benefit”
4. Create momentum loops
Each completed action should naturally lead to the next goal.
This is how programs move from passive systems to behaviour engines.
Tier Programs Are The Ultimate Striving Mechanism
If transaction-based mechanics drive short-term behaviour, tier programs are where The Striving Effect truly comes to life.
Tiers are, fundamentally, structured striving systems.
They introduce:
- Status progression
- Milestone-based rewards
- Loss aversion (don’t drop down a tier)
- Identity (“I am a PlatinumOne member” – Philip Shelper)
When designed well, tiers tap into multiple layers of psychology:
- Achievement
- Recognition
- Exclusivity
- Competition (with self and others)
But critically, they create a ladder to climb.
The mistake many programs make:
Tiers are often:
- Too far apart
- Poorly communicated
- Lacking in value
- Undifferentiated
The opportunity:
Design tiers so that:
- The next level always feels within reach
- The benefits are tangible and desirable
- The path is clear and motivating
When this happens, members don’t just participate, they strive.
Consumer Behaviour and Why Striving Works
The striving effect aligns with several well-established behavioural principles:
People accelerate effort as they get closer to a goal.
→ This is why “almost there” messaging works so well.
- 2. Dopamine & Anticipation
Rewards don’t just create pleasure when received, they create anticipation while being pursued.
→ The journey can be more motivating than the reward itself.
Repeated, incentivised actions can evolve into habitual behaviour.
→ Loyalty programs can turn occasional customers into default customers.
Once progress is made, people don’t want to lose it.
→ Tier retention mechanics (e.g., requalification) are incredibly powerful.
Bringing the Striving Effect to Life in The Real World
Across client conversations, we’re increasingly evolving program design in three key ways:
1. From Earn & Burn → Earn & Progress
Points are no longer just currency, they are signals of progress.
2. From Static Rewards → Dynamic Journeys
Programs are becoming:
- Personalised
- Behaviour-triggered
- Context-aware
Each member sees a path, not just a balance.
3. From Passive Membership → Active Motivation
The best programs actively guide behaviour:
- Next best action prompts
- Real-time nudges
- Milestone celebrations
- Omnichannel excellence
The Future of Loyalty is in Designing for Striving
Loyalty programs have always been about influencing behaviour.
But the industry is now entering a new phase. One where:
- Behavioural science is more deeply embedded
- Data enables real-time personalisation
- Programs are designed as continuous motivation systems
The Striving Effect sits at the centre of this evolution.
It challenges us to rethink:
- How we structure rewards
- How we design tiers
- How we define success
Because ultimately, loyalty isn’t built on what customers have done.
It’s built on what they’re motivated to do next.
What Comes Next
This shift, from rewarding behaviour to engineering it, represents a meaningful evolution in loyalty thinking.
And it’s one we’re actively developing further.
We’ll be exploring the striving effect, expectancy theory, and next-generation behavioural design in more depth in Edition 3 of Loyalty Programs: The Complete Guide, currently underway and coming soon.
