Aligned Incentives And Loyalty

I wonder what would go through the mind of an alien, had it walked into a busy mall and saw how humans conducted trade.

Assuming this was a curious fella, I imagine it would be fascinated by the exchange of paper and cards for goods, the seemingly unspoken rules of negotiation and on top of that(or is it below?) the complex web of trust that makes it all possible.

I think it's often too easy for us to take for granted the sophisticated system we've developed for exchanging value.

It seems natural or just the way things are done. Which tells a lot on how we've evolved as a species over the years, in my view.

According to history, trading is as old as civilization itself, perhaps even older.

Any system that goes through many iterations, is bound to reach a level of refinement that approaches some element of elegance in its efficiency.

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An Outside Observer

Not that I do it often, but whenever I visit a well modernized mall, I try to take the standpoint of an outside observer, almost anthropological in nature.

From that lens, it's like I'm witnessing countless micro-interactions that would've baffle our ancestors(or our hypothetical alien visitor).

You'll see a teenager taps a piece of plastic on a screen to buy bubble tea, or a mother showing her phone to claim loyalty points and discounts after purchasing groceries.

Without any context, you'll probably find it remarkable this rather implicit trust that underpins these micro-transactions. Neither party questions whether the plastic card will work or if the loyalty points will be honored at the moment of transaction.

Something else that's also noticeable is the varying depths of relationship between buyers and sellers.

It's a bit amusing to me that these automated self-checkout machines that treat every customer exactly the same have entered this above-mentioned relationship, albeit a very superficial one.

But there's still human warmth in many interactions like the coffee shop barista who knows his regular customers' orders by heart and a boutique owner texting her best clients when new items arrive.

For the most part, our ancestors traded goods directly with people they knew - the baker, the blacksmith, the farmer etc. Part of the reason being that these were also the only individuals within their physical proximity they could trade with.

Modernity And Loyalty

We modern people constantly switch between deeply personal and completely anonymous commercial relationships.

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The latter is something that many have become accustomed to doing, which is quite remarkable when you think about how much trust we place in completely automated or digital systems.

But here's a question: can loyalty still exist in this world of infinite choice and frictionless transactions?

I mean, when a customer returns to the same coffee shop for years, is it loyalty they feel, or just out of habit?

For my part, I think it's a mixed of both, especially knowing that we're creatures of habit.

I originally chose this bakery shop I visit routinely out of convenience, but over time, the familiar faces have created something deeper than mere routine.

It's always easier to default to what's familiar than venture into the unknown, even if better options might exist elsewhere.

But I think all through that process, loyalty can also build up given the "right" conditions.

I suppose loyalty in commerce is similar to any other relationship, in that it requires mutual benefit, yes, but also something more intangible. Like the human element of feeling genuinely valued.


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