When you think about it, status is quite the motivator and at the very core of our nature as humans. Each of us makes comparisons on a daily basis. Whether comparing income, clothes, homes, or other material goods.
Marketers use this motivator to build customer loyalty and drive engagement to give people the perception that they are achieving some sort of status, that will in turn create a sense of competition for status amongst other like-minded consumers. It is this desire for status that ultimately drives customer loyalty programs.
The ways customers confer status can be broken down into two categories: the internal sense of status and external status.
Status is only meaningful if it is associated with customer achievements. Internally, people pursue status for various reasons, but the common denominator is enriching their self esteem. Externally, people want to compare their current status to statuses those that are above and below their current state in order to aspire to something greater, while also looking down on inferior statuses.
Considering the way a customers feel about their own achievements, how they feel about themselves based on others’ opinions and how local/global status effects their respective sense of status is the key to leveraging status and building customer loyalty.