Loyalty Unboxed

The “Mount Everest” Problem with Loyalty Tiers (And how to fix it).

We see it constantly. A customer signs up, scans the top-tier benefits, checks the requirements, and mentally checks out: “I will never reach that.”

They don’t leave; they just switch to autopilot:
“Do you want to collect points?” — “Sure.”
“Do you want to redeem?” — “Okay.”

The passion is gone. The programme hasn’t lost the customer, but it has lost their ambition.

🎯 A curious solution: Euronics and the power of “micro-steps”.

Electronics retailer Euronics found a brilliant, low-tech solution to this psychological barrier.

Instead of asking new members to climb a mountain, they simply split the base tier in two. To reach the next level, a customer didn’t need to spend a fortune or invest hours of effort. They just had to complete a simple “mission” — like a 30-second questionnaire. (Euronics frames their entire programme logic around these “missions,” but that is a topic for another dialogue!)

The result?
1. Instant Gratification: The customer feels progress immediately (the “Endowed Progress Effect”).
2. Better Data: A quick, engaging survey replaces boring profile forms.
3. Momentum: A customer who wins early is a customer who explores what else is possible.

Stop designing programmes for the top 1%. Start designing for the Day 1 experience.