I looked into the data of an online casino.
Their loyalty programme has 9 levels. Superhero-style names, bonuses at every tier, a beautiful progression chart. Someone was clearly proud of this thing.
Now, the numbers:
- 99.2% of all customers are stuck at level one.
- Even among active users who actually log in, 9 out of 10 are still there.
- Just 8 out of every 1,000 customers have made it past the first level.
- And the cherry on top: level one is called Unranked. Almost every customer logs in every day to be reminded they're a nobody.
This isn't a loyalty programme. It's a VIP showcase for 8 people, while the other 992 get a daily reminder that they haven't earned the right to matter.
They built a ladder to the sky and made the first step so high that nobody can reach it.
And this isn't just a casino problem. Airline miles, bank reward tiers, retail loyalty clubs. Same story, different logo.
Two stamps that doubled completion
There's a brilliant experiment by Nunes and Drèze (2006) involving a car wash.
One group received a card: "Buy 8 washes, get one free." Another group received a card requiring 10 washes, but with 2 stamps already filled in. Both groups needed exactly 8 washes to earn the reward.
The completion rates: 19% vs 34%. Almost twice as many people finished, because of two stamps that were already there.
People hate starting from zero. They love finishing something they've already started.
What I'd change
- Kill the zero. Give people their first status immediately, at registration or their first purchase. Let them start as someone who's already on the journey.
- Show the distance, not the destination. Don't just dangle "Gold". Tell them "2 more orders to go". The word Gold doesn't create momentum. The number 2 does.
- Make status something people can actually feel. Faster replies. Remembering their last conversation. Offers that make sense for them, not another generic email blast. Loyalty should be an experience, not a badge buried in a profile.
Now open your own loyalty dashboard and check where most of your customers are sitting. If they're all stuck at zero, you haven't built a ladder. You've built a fence.