When someone gives you a head start toward a goal, you experience something called the Endowed Progress Effect
. This effect causes a person to feel a strong sense of progress in place of overwhelm. In our Loyalty Kickstart strategy, it provides us with ways to boost customer retention and client referrals.
300 study participants
were each given a loyalty punch card at a car wash. 150 people received cards with 8 spots to punch, and the other 150 had 10 spots to punch, but they were given two “free” punches. Despite everyone requiring 8 paid washes to redeem the free wash, the group with the 2 free punches redeemed 34% of their punch cards, whereas the other group only redeemed 19%.