Coffee, Loyalty And Motivation?
How many coffee shop loyalty cards do you have? (If you have more than one, you may wish to consult a dictionary for the meaning of the word 'loyalty.') Do they all operate the same way? Think about all the old-fashioned loyalty cards you've seen. Not the new electronic point-collecting plastic cards with magnetic strips or microchips. Think of the timeless dog-earred cardboard ones with ten squares or cups or whatever and purchases earned a stamp or a holepunch. At some delicious and delirious future time, you get that tenth stamp and the next cup is FREE!!! It's like Christmas but without the immense tension, family drama and homicidal / suicidal thoughts.
Did those cards affect your behaviour? Did they drive your decision-making? In what ways? Which type of cards were most successful - for the cafe? The whole point of those things, one would presume, was to increase profit in the long run for the cafe. They're not giving you free coffee because you're awesome. (This is no way belittles your actual level of awesomeness.)
In 2006, a study was done at a carwash contrasting two different approaches to loyalty cards. Half the cards were normal 'get eight stamps, get one free' cards. The other half were the same except that the card needed TEN stamps but the first two stamps had already been given. For that second group of cards, the first purchase was, in effect, the THIRD stamp.For the business, the cost was the same for both types of card - the customer still needed to buy eight carwashes.
And this had what impact?