Chapter Two - Whoever Figures Out Motivation Wins

This week, I read chapter two of "Loyalty 3.0” (Paharia, 2013) by Rajat Paharia. Chapter Two is titled "Whoever Figures Out Motivation Wins." I find the title of this chapter to be extremely true. Motivation is a key factor that drives the marketing/branding efforts.

The chapter opens up by stating that human motivation is a necessary part of Loyalty 3.0. The chapter then discusses how there are "five key intrinsic motivators for Loyalty 3.0." (Paharia, 2013, p. 24). They are autonomy, mastery, purpose, progress, and social interaction. Each of these are key tactics in understanding how motivation works in loyalty. Now, let's take a deeper look at each of them.

For starters, autonomy, according to the book is "is the urge to direct our own loves ("I control")." (Paharia, 2013, p. 24). This motivation allows consumers to have a more tailored experience. When consumers feel "I control", it allows them to feel that they can control their purchasing journey. This feeling can lead them to possibly become more loyal to the brand, due to them being able to control the experience and how they feel. A brand that does a great job of this motivation in the work setting, is Google. According to an article they allow "employees to spend 20% of their working time on projects of their choosing. This freedom to pursue personal interests and passions has resulted in groundbreaking products and features. It allows employees to explore new ideas and take risks without the fear of failure." (Nevins, 2024). This allows the workers to feel the sense that they are in control of part of their workday, making them more loyal to their employer.

The next motivation is mastery. This "is the desire to get better at something that matters ("I improve")." (Paharia, 2013, p. 24). This encourages audiences to keep striving to get better and gain more. Whether that be more knowledge, loyalty points, better purchases, etc.  

For your audience and consumers, this idea could be met through gamification and rewards that promote progress. I think a good brand that showcases this motivation would be FitBit and/or Oura. They are both encouraging their consumers to improve and keep pushing through in their wellness journeys.

Next up is the motivation of purpose. According to the book, this "is the yearning to do what we do in teh service of something larger than ourselves ("I make a difference")." (Paharia, 2013, p. 24). Everyone likes to feel like they have a purpose and that they are giving back in some way, shape, or form. This allows the brand to go above and beyond and have a deeper meaning and an emotional connection with its consumers. A brand that I think does a really good job at this is Patagonia. They are known for being very eco-friendly, and they want their consumers to also align with that vision. This creates a mindset that everyone involved with Patogina is creating a difference and has a purpose.

Now, let's look at the progress motivation. This "is the desire to see results in the direction of mastery and greater purpose ("I achieve"). (Paharia, 2013, p. 25). This motivation deals with continuous improvement, achievements, and rewards. For your consumers, this can look like a brand using different incentives like milestone rewards, loyalty programs, IRL progress-tracking, and more to keep them engaged and loyal. A good example of this motivation is Chick-fil-A and Starbucks. Like most fast food places now, they have apps that allow you to scan at each purchase and gain points so that you can receive rewards. This creates loyalty with a consumer because they are more likely to keep purchasing from you if they know they will receive points every time and free food/drinks sometimes.

The last one is social interaction. The book defines this as "the need to belong and to be connected to and interact with others ("I connect with others"). (Paharia, 2013, p. 25). Everyone craves connection, whether it be with a person or brand. Everyone also crazes to feel connection and community. The Bible even tells us that we weren't made to do life alone. A brand that does a good job of social interaction is Nike. They want to bring a sense of belonging with fitness. An example within their brand of this would be the Nike Run Club. This is where consumers can share their run workouts/progress with other consumers. This allows the consumer to have a community with running, someone to congratulate them, and someone to motivate them.  

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References:

Nevins, A. (2024, April 16). Google’s Company Culture: Unveiling Organizational Values - Culture Partners. Culture Partners. https://culturepartners.com/insights/googles-company-culture-unveiling-organizational-values/

Rajat Paharia. (2013). Loyalty 3.0: how big data and gamification are revolutionizing customer and employee engagement. Mcgraw-Hill Education.