Behavioral Science For Brands: Leveraging behavioral science in brand marketing. How Pret a Manger harnessed variable rewards to recover from the pandemic
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Jan 23, 2025 The podcast dives into how Pret a Manger rebounded after the pandemic, leveraging behavioral science to boost success. It explores the sunk cost effect and the allure of variable rewards that bolster customer loyalty. The discussion also highlights the evolution of Pret's loyalty programs and the impact of employee empowerment on enhancing customer experiences. Listeners will discover innovative membership models and pricing strategies that cater to consumer psychology, showcasing how adaptability can drive engagement in challenging times.
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Pret's Origins
- Pret a Manger started in London in 1986, founded by Julian Metcalf and Sinclair Beecham.
- It aimed to address the lack of healthy, quick lunch options for busy professionals.
Pandemic Impact and Recovery
- Pret a Manger's reliance on office workers made them vulnerable during the pandemic and the subsequent rise in remote work.
- They successfully recovered by creating a loyalty program and a unique reward system.
The Power of Variable Rewards
- Uncertain rewards are more effective at building habits and loyalty than fixed rewards, as demonstrated by B.F. Skinner's experiments with rats.
- Variable rewards create surprise and joy, strengthening the customer's bond with the brand.