#351: Loyalty and The Magic of Marketing with Rory Sutherland
Let's Talk Loyalty
00:00
The Sunk Cost Effect of Loyalty Programs
If you can get people to invest effort into a relationship, they tend to perceive that as a sunk cost. One fashion retailer in the UK found that when they introduced a kind of equivalent of Amazon Prime for £15 a month for unlimited next-day delivery, the average number of purchases per customer per year went from one to five. That's share price stuff, yeah. But there's scope actually, the scope for far more people to do an Amazon Prime than currently do.
Play episode from 36:48
Transcript
