Back in the early days of the online learning platform Coursera, I took a class in gamification offered by the Wharton School of Business.

The ubiquitous application of game design elements across so many areas and sectors of business was in its infancy, and I was intrigued.

One of the most fascinating things I learned about is the Goal Gradient Hypothesis, which basically posits that the closer one gets to completing a goal, the more motivated they become.

If you've ever watched a marathon or any kind of endurance race, you may have noticed how participants miraculously get a final burst of energy that enables them to sprint to the finish line.

This is a classic example of the goal gradient hypothesis at work.

In 1932, Carl Leonard Hull first introduced the concept after running experiments with rats, finding they ran faster the closer they got to a food reward goal.

Over 70 years later, a team of researchers tested the relevance to purchase acceleration and customer retention of Hull's hypothesis.

They gave one set of coffee-buying customers a blank 10-stamp loyalty card. A different group received a 12-stamp card with 2 stamps already completed.

So, members of each group needed 10 stamps to receive a free coffee as reward for their completed cards.

Not only did the 12-stamp group complete their cards more quickly than the 10-stamp cardholders but the frequency of their purchasing increased the closer they got to qualifying for their free coffees.

But, loyalty programs aren't the only application for the goal gradient hypothesis. It can be used in many ways to motivate your customers and team across your business.

Here are just a few ways to employ it:

1. Offer special perks or status levels for referrals from clients and/or affiliates.
2. Provide completion bonuses to drive submission of testimonials and/or feedback surveys.
3. Break down complex sales, onboarding, and internal processes and projects into small, achievable milestones.
4. Pre-fill templates and forms to encourage finalization and submission.
5. Use progress bars on applications, surveys, coursework, and trainings to motivate completion.

Have you hit upon the formula to get your customers or team across that finish line?

If you're struggling, let me help.

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Until next time,

PS - If you missed it, last week I was Learning to Fly.

PPS - Check out my series on Loss Prevention and related principles of behavioral economics.
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