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November 01, 2022
A concept in behavioral sciences, the Nudge Theory was named and popularized by the 2008 book “Nudge: Improving Decisions About Health, Wealth, and Happiness”, written by American academics Richard H Thaler and Cass R Sunstein. The theory is mainly concerned with the design of the environment in which people make choices. The framework is about understanding how people think, behave and make decisions.
At Capillary, we’ve been building on the Nudge theory in the context of a Loyalty Marketer. Pioneering the use of the Nudge Framework in the context of loyalty marketing, using the platform gives you an upper hand against the competition when looking to improve customer engagement and deliver a great experience.
Working with 250+ brands and touching 800 million+ end customers globally, Capillary’s system is extremely rich in data which helps the Nudge engine to come up with some really incisive insights. We’ve devised a product-led way to help loyalty marketers, CXOs, and practitioners improve the performance of their marketing programs with the least friction. One of the layers across the Capillary suite of products, the nudges can be broadly categorized into three kinds:
Type 1 (Data-led Nudges): Know how your program is doing, and potential disruptions to watch out for
Type 2 (Platform best practices): Low-hanging fruits to leverage product features
Type 3 (Proactive Nudges): New initiatives that can boost program performance to the next level
Now, let’s dive deeper into these three kinds of nudges and the benefits they can reap for a brand.
It can be a tedious affair to keep track of tens of metrics on a regular basis and particularly without context from the industry. The aim of this category is to proactively serve key insights on what’s working and what can be made better and how you are doing compared to peers in the industry. For instance, if the system detects the following:
Over the years, we’ve built an extremely comprehensive platform with loads of intelligence inbuilt. Sometimes, it can become overwhelming and you may miss out on some of the features that a loyalty marketer can leverage. To ensure this doesn’t happen, here are some of the nudges:
Apart from the above two types of nudges, these are nudges that look at doubling down on the engagement and loyalty game. These are add-ons that help loyalty marketers further refine their engagement program.
Many times nudges are ignored by a loyalty marketer or a user in general because the workflow isn’t optimal. A system may be giving the right nudges but at the wrong times! This results in subpar effectiveness. To avoid this, Capillary’s Nudge Framework undergoes continuous feedback cycles and AI learning to ensure the nudges are smoothly integrated into the workflow for a loyalty marketer.
Data Analytics plays a huge role in helping us deliver the right nudges to help you achieve your business goals. As we strengthen our position as a leader when it comes to innovation in the field of Nudge for Loyalty Marketers, we see tremendous benefits for our clients in delivering value and a great customer experience.
Talk to a loyalty and engagement expert to learn more about the Nudge framework and see how it can help improve your program performance.
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