It is observed that our efforts increase as we approach the completion of our goals.
This effect is called the “Goal Gradient Effect“.
How can the Goal Gradient Effect be useful for marketers?
Real-life example: In a popular coffee reward program, people purchased more coffee when they were close to getting a free cup of coffee.
Observation: It is observed in a loyalty reward program, people spend more money when they are close to getting a reward.
Action: Marketers can increase the total ticket size of the customers by making them believe that they are closer to getting a reward more often. This could mean increasing the frequency of smaller rewards instead of less number of bigger rewards.
What are your views on it? Can it be useful in reality?
2 comments on “The Goal Gradient Effect”
Hey, I find your content really amazing. Also, I loved the way you portray marketing concepts in simple comic strips..makes it easy to understand.
Why don’t you start your own merchandise
Thanks a lot, Simran.
We are glad you liked it.