Guide

Why stamp cards work: what the research says

A stamp card looks almost too simple to matter. But researchers have tested loyalty cards on real customers, at a real café and a real car wash, and the results are clear: the way a card is set up changes how often people come back. Here's what they found, and how to use it at your counter.

1. Customers speed up as they get closer to the reward

Researchers from Columbia University (Kivetz, Urminsky and Zheng, Journal of Marketing Research, 2006) followed a café's "buy 10 coffees, get 1 free" card. Customers bought coffee more often the closer they got to their free one. The last few stamps came faster than the first few.

They also gave some customers a 12-stamp card with 2 stamps already filled in, so the same 10 purchases were still needed. Those customers finished in a median of 10 days, against 15 days for customers on a plain 10-stamp card.

What it means for you: make the reward reachable. Choose a number of stamps your customers can finish in a few months: a daily coffee drinker can reach 10 quickly, but a customer who has a haircut once a month needs a shorter card, such as "every 6th cut free". And show progress clearly, so customers can see how close they are.

2. A head start nearly doubles the number who finish

In a car wash study (Nunes and Drèze, Journal of Consumer Research, 2006), 300 customers received one of two loyalty cards. Both needed 8 paid washes for a free one. One card had 8 empty spaces. The other had 10 spaces with 2 already stamped.

Nine months later, 34% of customers with the pre-stamped card had earned their free wash, against 19% with the blank card. Same effort, same reward, nearly twice as many finishers. The researchers called it the endowed progress effect: people are more motivated to finish something they feel they've already started.

What it means for you: don't start new customers on zero. Give one or two welcome stamps when they join. In Komweer this is the "welcome bonus stamps" setting on your card.

3. People come back where they're known

This one is our view rather than a study. A regular who is greeted by name, or asked "the usual?", feels recognised, and that's a reason to come back that no discount can buy. A digital card helps you get there: you can see who your regulars are, how often they visit, when they last came in, and when their birthday is.

Why a digital card helps these effects work

  • Nobody loses their progress. A paper card left in another wallet means starting over, and the head start is gone. A digital card lives on the customer's phone.
  • Progress is always visible. Customers see exactly how many stamps they have and how many are left.
  • Rewards don't quietly expire. Komweer emails customers a week before a reward expires, so they come back to use it.
  • Stamps can't be faked. The counter code changes every 25 seconds and works once, or your staff scan the customer's card, so a photo of the code earns nothing.

How to set up a card that customers finish

  1. Pick a reward your customers actually want.
  2. Choose a number of stamps they can reach in a few months.
  3. Give 1 or 2 welcome stamps.
  4. Set a daily limit and a waiting time between stamps.
  5. Add a reward expiry date, so rewards get used. Komweer reminds customers before it runs out.

Frequently asked questions

How many stamps should a stamp card have?

Enough that the reward feels earned, few enough that customers can finish within a few months. Frequent purchases like coffee suit 8 to 10 stamps. Monthly services like haircuts suit 5 or 6.

Do pre-stamped cards really work?

In a car wash field study published in the Journal of Consumer Research in 2006, customers given a card with 2 free stamps were nearly twice as likely to earn their reward (34% against 19%), even though both groups needed the same 8 paid washes.

Why do customers come back faster near the end of a card?

Researchers call it the goal-gradient effect: motivation rises as a goal gets closer. In a café study, customers bought coffee more often as they approached their free one.

Do my customers need an app for Komweer?

No. Customers scan a code with their phone camera and the card opens in their browser. They can add it to their home screen if they like.

Start your card free.

Set up in an afternoon, no contract, nothing for customers to download.

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Sources

  • Kivetz, R., Urminsky, O. and Zheng, Y. (2006). The Goal-Gradient Hypothesis Resurrected: Purchase Acceleration, Illusionary Goal Progress, and Customer Retention. Journal of Marketing Research. Summary (Columbia Business School)
  • Nunes, J. C. and Drèze, X. (2006). The Endowed Progress Effect: How Artificial Advancement Increases Effort. Journal of Consumer Research. Abstract (IDEAS/RePEc)