GUEST POST from Roger Dooley

Carnival Cruise Line is getting a painful lesson in customer psychology.

When they scrapped their lifetime loyalty program for a spend-based model that resets every two years, their most loyal customers revolted. One Diamond member with 37 years and 31 cruises called it “a slap in the face.” Another with 18 years of loyalty said their “brand loyalty is now completely nonexistent.” Some weren’t printable! I saw ZERO favorable comments from long-term loyalists.

Reading these furious reactions, I spotted one reason for their anger: the IKEA effect.

The IKEA effect says that when we build or help create something, we value it FAR MORE than if someone else made it. Longtime cruisers didn’t just receive their status, they BUILT it. They tracked progress through tiers, planned trips, and maybe even took a longer itinerary just to reach the next tier.

I get this. For years, I’ve chased United’s 1K elite status. In the old days, I’d create spreadsheets tracking YTD miles and future trips. I’d optimize routes for mileage and even did a few end of year “mileage runs,” super-cheap flights to places like Johannesburg or Taipei purely to hit that elite level. I was CO-CREATING my status, which made it even more valuable to me.

When customers actively help build their relationship with your brand, yanking it away feels like theft. Carnival is finding this out.

Smart brands leverage this psychology. Mint and Robinhood don’t just sell tools, they let customers set goals and budgets, track investments, etc. Users who shape their own strategies feel deeper ownership and loyalty.

Peloton members who customize workout plans and track achievements develop stronger commitment than passive users. They’re building their fitness journey.

Starbucks Rewards customers track stars, earn badges, work toward goals… This turns buying coffee into a gamified journey they help create. So do their complex, one-of-a-kind drink orders!

Three powerful psychological forces make this work. First, when customers help shape their experience, they feel autonomous, not passive. This increases perceived value.

Second, personal investment in decisions creates stronger identification with your brand. Their success is tied to yours.

Third, time and effort invested make customers less likely to switch competitors. They’ve built something with YOU.

Every business can do this:

• Replace passive consumption with active participation.
• Let customers customize, choose, or contribute to their experience.
• Make progress visible to show how actions build toward something meaningful.
• Create milestones that give customers reasons to celebrate their journey with you, not just end results.

If you must change programs, honor the investment customers have already made. They are emotionally invested!

What are you letting your customers build?

If they’re just buying from you, their loyalty will be weak.

Image credit: Unsplash

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