Social Loyalty App and Token Economy : The Psychology of Loyalty Revealed

What is Token Economy?

A token economy is a system of behavior modification based on the systematic positive reinforcement of target behavior. The reinforcers or rewards are symbols or tokens that can be exchanged for other reinforcers. Token economy is based on B.F. Skinner’s principles of operant conditioning (or stimulus-response conditioning) and can be situated within applied behavior analysis or behaviorism.

The Psychology of Rewards
In the token economy system, the basic premise is that reward drives behavior – the carrot and stick formula.  Thus, when applied to social loyalty program, we reward the consumers when they respond appropriately to a behavior we want (e.g., refer your store to 10 more friends) and not reward them when they don’t respond accordingly.  However, paradoxically, while a big reward reinforces desired behavior better than a small reward, when rewards are discontinued, those who have received big rewards are more likely to return to the old buying pattern than those who received small rewards.   So make sure NEVER let your best customers feel that you are withdrawing privileges from them.

The identifying token

There are several ways of tracking or monitoring customers' purchases in order to later provide them with a reward especially now that the Social Loyalty Program is available on Facebook.  Whether the reward is a simple discount, a more targeted discount, points which lead to a gift from a catalogue or later money-off offer, or even extra services, there has to be some means of recognizing each customer at the point of sale. This is usually an identifying token or badges that the customer presents when making a purchase. So when applied to the Social Loyalty Program, the rewards (stimulus), in theory, are not only aimed at eliciting the right behavior (response), but also should reinforce it so that it ultimately becomes part of the consumer’s shopping psyche.  However, eliciting the right response is not just the function of the rewards offered, but all also includes a lot of other factors including the overall buying experience such as frequency of rewards, ease of use, emotional value of the rewards, and the like.

The Necessity of a Social Loyalty Program

By being the member of a loyalty program, the consumer by default becomes part of a larger community. Like every group, this community is also guided by certain norms and rules-predominantly set by the business that owns the program. The points accrual and redemption system forms the basic rules while the repeated strategic promotions that have a different set of rules become the advanced rules to get the members of the community to keep coming back. In a successful loyalty program, while the community formation is the first step, the successful conversion of the members into a “psychological-crowd” remains the key.

Psychological crowds are by nature extremely prone to the power of suggestibility. This vulnerability towards suggestion can be achieved by constant and relevant communication.   Thus, social loyalty program available on social media networks such as Facebook becomes very powerful and effective because of the availability of the community management system while keeping operating costs very low.  In marketing terms, the tactical and strategic promotions that are used to constantly communicate to the members serve the function of active suggestion. The online physical and emotional proximity between the members can be achieved by creating activities such as a family day-out, movie premiere, tickets for a play etc. These activities re-assure each member that there are many of people out there who think, behave and feel like them thus, validating their membership to the group.

What applies to an individual applies to a group.  Hence, successful loyalty programs are those that leverage the emotions that guide human behavior and channel them towards limited behavior modification resulting in regular and incremental financial returns for the business. The human mind craves for routine and any incentive that allows one to profitably) continue dealing with the store or business through rewards and incentives is the winner.

Loyalty programs are dictated by market dynamics. It is no longer a luxury but a necessity and a vital tool for survival for any business across industries. This is easy to understand when we realize that the market resides nowhere but in the collective consciousness of consumers.

It follows that the reward is a crucial part of any loyalty program. It has to be desirable enough to change the behavior of customers. In fact, if the reward is really well chosen, it will be attractive to the target group of customers, and not attractive to customers who are not really valuable to the business. It also has to be affordable, and balancing the two sides of the desirability/affordability equation is tricky. Next week, we will examine the key functions of a loyalty reward, offering sound advice on what consumers might value, and what might disappoint them. It also walks you through the properties or attributes that are always found in successful loyalty rewards.

If you like to be contacted about how a cloud-based Social Loyalty platform can improve the customer experience and enhance the revenues of your organization or your clients, please fill out the form on the right.

A Viral Channel to Showcase your Restaurant

So you’re a restaurant owner and business is picking up. It’s pretty standard practice now for establishments to have their own “embassy” on Facebook, serving as a gateway for existing and potential customers to get more information about the menu, the chef behind it and even obvious things like hours and contact information.

This is certainly a big improvement from those days wherein you had to get someone to build a website for your restaurant because everybody else was doing it. We live in a social world today and it’s time to make our Facebook fan pages work for us.

The 15 Most ‘Liked’ Brands in the world, from Red Bull to Burberry, have one thing in common. Their brand pages are highly visual. Simply Measured, an analytics firm that measures brand performance on Facebook, found a 65% aggregate jump in engagement for photos and videos that brands posted on their pages, while photo-less updates fell over the same period.

Content presentation has becomevery powerful.

Red Bull, the most popular energy drink in the world by volume, mixes up athlete profiles, events and comedy that generate thousands of likes and comments, with video and image posts as the most popular while promotional posts receive significantly lower user interactions.

Similarly, Burberry, the world’s most successful luxury fashion brand on Facebook, engages its fans by sharing a lot of unique and exclusive content like posting behind-the-scenes shots from photo shoots and videos from their latest campaigns.

What does this all mean for a restaurant owner trying to lure new customers via its Facebook page?

The bottom line is, everybody loves interactive content over lengthy text. Status updates are great but it is best to mix these up with videos and photos to keep people engaged and excited about the brand. It also does not hurt that videos and photos highly influence Facebook’s EdgeRank ratings, an algorithm to determine the content that an individual user will see in the ‘Top News’ portion of the News Feed.

Once you are ready to add more interactive content into your restaurant’s page, you can install the new and improved AppAddictive YouTube Video Gallery app. In under a minute, your page will literally come to life. It’s as easy as:

Step 1:  Make sure that you have qualityvideo content on your YouTube channel.

Step 2: Go to this page to install the AppAddictive YouTube Video Gallery player.

Step 3: Configure your page and publish.

What can you post? The opportunities are endless…

1. Introductions and features: on you (the owner/s), the chefs and restaurant staff, your customers, new menu items, specials, events and teaser content that will build hype and excitement.

2. How to/tutorials: not only an interactive post but also a helpful customer relationship management tool.

3. Entertaining content that fans would never have had access to without the advent of social media: the design and development of the menu, behind the scenes details from the market to the kitchen to the table. Do you have time to come up with weekly series of life in the restaurant? Share it with the world

4. Related brands, products, services, movies, songs

… BUT don’t forget that it is important to limit the length of videos and set expectations within the text to tell your fans what the clip is about.

For further inspiration, check out the pages of the people who get it (they pass the AppAddictive test!)

Eataly NYC

  • Eataly makes fried pizza and calzones in Worth Sqaure!
  • A Day In the Life of Mario Batali

The Mermaid Inn

  • Summer Crab Boul – tips on “How to” Crack your own crabs
  • 101st oyster! A regular eating his 101st oyster in under an hour

Bouchon Bakery

  • Fastest Scissors in the West: Matt McDonald, Head Baker, preparing our Epi Baguettes

  • Family Meal Coming Soon For Our Guests – Now the count down begins for something hot to come out of Bouchon Bakery for our guests

AppAddictive’s YouTube Video Gallery app not only adds a new video page on your existing fanpage, it also provides you, the page owner and its users to publish the sa

me video on your respective timelines. As a bonus, we give page owners the ability to upload a custom banner on top. Now take this app for a spin!

Word of Mouth Marketing is More Powerful Online

Word-of-mouth marketing (WOMM), is an unpaid form of promotion—oral or written—in which satisfied existing customers tell other people how much they like a business, product, service, or event. Word-of-mouth is not new at all.  It is in fact one of the oldest yet most credible forms of advertising because people who don't stand to gain personally by promoting something put their reputations on the line every time they make a recommendation.

George Silverman, a psychologist, pioneered word-of-mouth marketing when he created what he called “teleconferenced peer influence groups” in order to engage physicians in dialogue about new pharmaceutical products. Silverman noticed an interesting phenomenon while conducting focus groups with physicians in the early 1970s. “One or two physicians who were having good experiences with a drug would sway an entire group of skeptics. They would even sway a dissatisfied group of ex-prescribers who had negative experiences!”

Now that we are in the online space, Digital Word-of-mouth marketing can influence the consumers’ buying decision. All of us are influenced by the word-of-mouth in one way or the other. Just think back to the time you asked for advice or an opinion from your friends and peers before purchasing a relatively expensive commodity. Or think about the last time you did online research to finalize your service provider or to purchase a product.  In my case, by default, I would read online reviews from previous customers when buying things at Amazon or Ebay for instance.  All these are the outcomes of  the digital word-of-mouth marketing.

So, let’s go a step ahead and explore what modes of digital word of mouth marketing are available to us:

1. Share with a Friend

Social networking websites provide us a great platform to connect with our family and friends located anywhere across the globe. Facebook,LinkedIn, Twitter etc. have now become a part and parcel of our daily lives. Happy, sad or confused- our status can spread the word within our network.   For example: – on purchase of every product from your website, give an option to your customers to share that with their connections on the social networking websites.

2. Reviews & Testimonials

Whether going out to dine at a restaurant, or about to purchase a laptop, or intending to hire a web consultant, etc., we all tend to go through the testimonials, reviews and ratings prior to making our purchase.  This is the power of asking for a review or a testimonial from a customer .  The previous buyer would give a review, which can then be shared with others.  This would be a good referral mechanism to build trust on your company without incurring additional costs.  These testimonials serve as effective marketing collateral for your website that can potentially increase more traffic to your website or fanpage.

3. Fan Page

Creating a Facebook fan page is an excellent and cost-efficient way to connect with your clients, prospects and business partners. A number of activities can be done through Facebook apps that can aid you in doing your digital word-of-mouth marketing.  Things such as status updates on Facebook, adding photos and videos to catch the eye of the target group, creating events and inviting your fans to attend, interactive activities such as games, online contests, promotions, etc. to engage your fans and the like, are some of the ways to do viral marketing organically through Facebook.

These are just some of the online ways of opportunities to do digital word-of-mouth marketing. For businesses, customer evangelism using entrenched advocates is one of the most affordable marketing channels; yet it provides some of the highest return on investment. More and more companies expand their reach thanks to the help of existing customers.  And the existence of Social Media like Facebook only allows the WOMM to grow virally in an exponential way.  This is what Social Loyalty or Digital Word-of-Mouth Marketing is all about.

Facebook Launched App Center with 600 Apps

Earlier this week, Facebook officially launched the App Center, an online store similar to Apple App Store or Google Play. App Center launched approximately 600 applications, including software from Pinterest, Draw Something, Nike, and other games. The platform is now mobile and accessible through iOS and Android-equipped devices. [Read more…]

Acquire, Engage and Retain Facebook Likes, Leads and Sales

How do you know your Facebook ad conversion rate is optimized?  How does your Cost per Engagement or Cost Per Conversioin compare to your industry peers?  AppAddictive can give you an honest assessment of what Facebook can and cannot do for your business. If there is a fit, AppAddictive can manage your Facebook Conversion Rate Optimization and your Facebook Ad Campaigns. We use our Facebook Ads API access to perform your Facebook Conversion Rate Optimization.

Local business? We have a starter package that gets you new Facebook likes from your local area. We monitor your inbound comments and messages and post two to three times a week. After you reach 500 new likes, we will design and distribute a Facebook Offer. At the end of the trial period, you will be able to track how many customers came to your business because of hearing about you on Facebook.

Launch a promo with us and promote your offer on Facebook or to our affiliate network of properties. Packages start as low as $200.

If you have a budget of more than $10,000 on Facebook Ads, contact us so we can scale your Facebook Ad Campaigns and increase your ROI. You can acquire U.S. based fans, app installs, and leads inside Facebook with ROIs that are better than your other campaigns.  If you are a charity organization, please contact us and we have some interesting discounted programs for you.

If you are a search engine marketer looking for Facebook Ad Campaign expertise, we can complement your campaigns.

If you are launching a product and seeking to promote your word-of-mouth marketing through influential word-of-mouth with reach, please contact us too.

We are an approved Facebook Ads API preferred developer.

Fill out the form on the right to get more information about this service.

Check out our New Facebook Advertising Book. It covers all the newly announced Facebook ad formats and a very complete flowchart that guides you step-by-step on how to buy Facebook ads for your clients. Published on October 4, 2012.

YouTube Video Gallery

We’ve rebooted our YouTube Video Gallery app, now with the ability to publish to your Facebook Timeline, publish playlists and so much more. Acquire and engage customers using our specialized Page Tab Apps to display your content. Great for businesses of any size. Agency partners welcome. Click Here to read how’s Facebook Page increased its likes to 86,000 by using our Youtube App.

Social Loyalty – Revolutionizing Customer Management

Turn your existing customers into brand advocates and gain new customers by rewarding, sharing and promoting social interaction. The AppAddictive social loyalty platform allows offline and online merchants to have a cloud based loyalty program that extends to Facebook. The first benefit to the merchants is that their loyal customers can share their activity on Facebook and bring in new customers and more business. Studies show that using social loyalty programs can save a merchant as much as 88% on new customer acquisition costs. The second benefit to the merchants is that the cloud based loyalty program saves the merchant a lot of IT costs versus desktop server loyalty program solutions. Fill out the form on the right to ask about how you can have a social loyalty platform today!


Transform customers into brand advocates by incentivizing and rewarding users on Facebook & other social networks


Loyalty is no longer just a retention tool. Gain new customers by rewarding,sharing, and promoting social interaction


Track, measure, and chart your loyalty program results on social media networks like Facebook, YouTube & Google+


The next generation of customer retention management is here and AppAddictive is leading the way


Our loyalty program is cloud-based. You do not need to maintain an IT staff or servers just to have a loyalty program.

Fill out the form on the right to ask about how you can have a social loyalty platform today!

AppAddictive Social Loyalty Platform Demo on Prezi

Facebook Ads Could be your Most Efficient Source of Leads

We have seen a large improvement in the performance of Facebook Ads around the world. According to a study by Marin Software – who services fortune 500 companies  – performance and buyers of Facebook Ads are on the rise – meaning Facebook Ads are becoming more efficient and more business are jumping on the band wagon.

Here’s a ‘Road Map’ to running Facebook Ad Campaigns:

Happy Birthday Facebook. What Does the IPO mean to your Business?

Facebook expects to raise $16 Billion through its IPO, securing its title as the largest tech IPO in history. In New York, there was an air of excitement, speculatio and questions. Most importantly, what does Facebook going public mean for you business?

5 changes to Expect:

 1. Better Ads: Ads are essential to Facebook’s revenue stream, which will have to show significant growth. Expect to see innovation in ads – new ad formats, better targeting and greater reach. Similar to Search Ads after Google’s IPO, Facebook Ads platform is in it’s infancy. Expect Facebook ads to show up outside of the Network and Mobile.

2. Paid Reach for Posts: With a greater focus on ads, it will become increasingly harder for posts by businesses to reach fan’s newsfeeds. Compelling and engaging posts are still valuable – however business owners will have to venture into buying ads to make sure they get visibility.

3. Social Media Marketing will Become Easier: The rise of Facebook created the Social Media Industry. With Facebook’s IPO – growth will breed opportunity and standardize best practices. Business managers will have more tools and options to utilize Facebook effectively and invest more money.

4. More Apps, More Features, More Fun: Facebook has to do something with all that money right? Expect more features that promote sharing and engagement as Facebook acquires tech companies such as Instagram. As cool features are added, you can look forward to more ad real estate and ability to streamline your social media efforts. There is a huge opportunity to integrate newly acquired apps into your marketing too.

5. Less Changes to Facebook: Do you feel like every time you login something has been added or removed? Facebook has certainly experimented to get it right. Now as a public company, they are less inclined to change products. That means managing your pages, ads and Apps will become easier.