Why offer a discount? Can't we just ask customers to drop off their products?
You can — and uptake will remain limited. Our research and pilot data consistently show that a reward is essential for driving participation at scale. Without it, take-back remains a passive compliance exercise with low engagement. The reward turns a disposal moment into a relationship moment.
Doesn't offering a discount make it feel transactional?
It depends on the order. Our research on in-store messaging found that purpose must come before payoff. If the first thing a customer sees is "get 10% off," the interaction feels like a coupon grab. If the first thing they see is "give your shoes a second life" — and the reward follows — the dynamic is fundamentally different. The customer is doing something meaningful, and the brand is thanking them for it. That creates loyalty, not just a transaction.
What is "Purpose Before Payoff"?
It's a principle we developed from our pilot research on in-store signage and customer behaviour. The core insight: when customers encounter a take-back programme, the messaging sequence matters. Lead with the environmental purpose ("your product gets a second life, here's what happens to it") and follow with the personal reward ("and here's a thank-you for participating"). Reversing this order — leading with the discount — reduces the interaction to a promotion and undermines the relationship-building potential. The reward is necessary. But it should follow the purpose, not lead it.
What is "motivation crowding-out" and why does it matter?
Motivation crowding-out is a well-documented phenomenon in behavioural economics where introducing an external reward for a behaviour previously driven by values or social norms can diminish the internal motivation to perform that behaviour. The classic illustration: when Israeli daycare centres introduced a
small fine for late pickups, tardiness doubled. The fine transformed a social obligation into a market transaction. In sustainability contexts, the risk is that a customer shifts from "I do this because it matters" to "I do this for the discount," and the programme becomes entirely dependent on the reward continuing. This is why the messaging sequence matters: leading with purpose keeps the interaction in the moral domain, even when a reward follows.
Sources: Gneezy & Rustichini, "A Fine Is a Price," JLS (2000). Frey, "Motivation Crowding Theory" (1997). Titmuss, The Gift Relationship (1970).
What type of reward works best?
Research identifies three categories with different effects.
Self-benefitting rewards (discounts, vouchers) can undermine the "warm glow" of doing something good, because a selfish explanation now competes with the virtuous one.
Other-benefitting rewards (donations to a cause) preserve and can amplify the warm glow.
Mixed rewards (part self-benefit, part other-benefit) are the
most effective overall: they maintain the warm glow for participants while reducing guilt for non-participants. In a retail take-back context, a prize draw (low individual cost, not directly transactional) combined with visible social impact metrics tends to perform well. The optimal mix varies by audience, which is why the ability to test different approaches across stores is valuable.
Sources: Journal of Marketing, "Adjusting the Warm Glow Thermostat." Yang & Thogersen, J. Business Research (2022).
Does culture affect which incentive approach works?
Significantly. A
cross-country study comparing Germany, the United States, and China found different optimal strategies in each market. In Germany, environmental appeals alone were strongest. In the US, rewards drove participation primarily through extrinsic motivation. In China, rewards tied to environmental purpose were most effective. The researchers concluded that environmental purpose can neutralise the negative effects of extrinsic incentives under certain conditions. Programmes operating across multiple markets need to adapt messaging and incentive design rather than applying a single template.
Source: Yang, X. & Thogersen, J. "When People Are Green and Greedy," J. Business Research, 144, 2022.
How does resale fit into this picture?
Resale sits on the same behavioural continuum as take-back. Resale platforms have demonstrated that people will invest significant effort in returning products to circulation — photographing, listing, packaging, posting — when there is something in it for them. But the moment the item has no resale value, the behaviour disappears. The jacket that would fetch 30 euros gets listed. The worn-out shoes that would fetch nothing go in the bin. Resale is the high-payoff end of the continuum. Donation to a textile bank is the low-payoff, high-purpose end. In-store take-back sits in the middle. When the item no longer has resale value, purpose is the only thing sustaining the return behaviour — and purpose alone, without any payoff, has a ceiling.
Does a customer need to participate on the day they see the programme?
No. One of the most underappreciated dynamics in take-back programme design is delayed activation. A customer visits the store, sees the programme, but does not have their old items with them. They do not participate that day. But the awareness has been planted. The next time they are packing the car for a shopping trip, the programme catches. The shoes go in the boot. The discount that seemed irrelevant last visit becomes the reason they made it off the shelf by the front door. Purpose before payoff is not only about the customer at the collection point right now. It is about building the awareness that activates on the visit where participation becomes possible. Social proof reinforces this across visits: each encounter with a counter, the signage, the sense that other customers participate here, is a deposit in awareness.
What role does social proof play?
Social proof is one of the most reliable drivers of sustained participation. A
study of recycling behaviour in New York apartment buildings found that comparative feedback (how your building's recycling compares to neighbours) drove stronger behaviour change than self-referencing data alone. In store, this translates to visible counters ("1,247 items collected at this location"), community statistics ("Join thousands of customers"), and real-time feedback. Social proof creates a nudge for future visits: a customer who sees a counter today may not participate today, but the expectation of participation is established for next time.
Sources: ScienceDirect, "Keeping Up With My Neighbors" (2023). Zhu, Circular Economy and Sustainability (2026): relatedness as ~40% of intrinsic motivation.
Why does the customer need to scan the product? Can't they just drop it off?
Drop-off gives you a bag of products and a weight figure. Scanning gives you product-level data: brand, model, category, condition. This is what transforms take-back from a logistics operation into an intelligence platform. The scan is what makes the email valuable — it's not just "someone signed up," it's "someone who owns Nike Air Max 90s in worn condition visited your Rotterdam store and is ready for a replacement." That's a categorically different data asset. The scan is also the behavioural moment where
Self-Determination Theory applies: competence (the customer learns their effort matters) and relatedness (they see themselves as part of a larger system) are both activated at the point of engagement, not at the point of disposal.
What does the customer gain from scanning?
Three things. First, they receive a personalised discount for their next purchase. Second, they can track what happens to their product — where it goes, how it's processed, what circular outcome is achieved. Third, they're contributing to a visible impact: total items collected, products diverted from landfill, materials recovered. The scan takes 20 seconds. The customer gets a reward, transparency, and a sense of contribution.