1. What the study found
Joseph Nunes and Xavier Drèze published a study in the Journal of Consumer Research on what they called the endowed progress effect. They turned an eight-step task into a ten-step task with two steps already done. According to the study's abstract, that increased the likelihood of completing the task and decreased the time to complete it.
2. Why it works
The authors explain that the task stops looking like something not yet begun and starts looking like something already started and incomplete. According to their abstract, the effect depends on how progress is perceived and not on a desire to avoid wasting the free steps.
3. Give the gift a reason
The same abstract says the reason offered for the gift, if any, and the currency in which progress is recorded both matter. That is why the free stamps should have a clear reason, such as "for your first visit".
4. How to apply it in your business
If your card asks for eight stamps, make one with ten that already has two, and stamp those two on the first visit. The customer still needs to collect the same eight. Try it with a group of new customers and compare how many cards get filled.
5. What the study does not promise
It is a study, not a guarantee for your business. Take it as an idea to test, and measure your own results.
Start with two
A card that has already begun feels halfway there, and whoever is halfway there is more likely to arrive. If you prefer a digital stamp card on your customer's phone, we build those too.
Sources
If you would rather have us do it, message us on WhatsApp or see Digital Loyalty Cards.