srhaz
08-16-2004, 03:20 PM
This little article was in Money magazines March issue.
"Atlantic Coast Federal Bank had almost no takers when it offered $5 in cash to people who opened a free checking account. So the bank picked a different incentive - $5 gift certificate to Pizza Hut.
End result: 138 new sign-ups through November. What gives? It's human nature, says Harvard psychology professor Nicholas Epley. "Five dollars cash for any use doesn't create a response because work is required - you have to decide what to do with the money", he explains. "But if you state a specific that conjures up a positive reaction, like pizza, it's much more effective." Indeed.
I'm sure someone here can relate this to the laundromat business.
Suppose the lesson is offer free wash, not cash.
Punch cards with a pizza?
"Atlantic Coast Federal Bank had almost no takers when it offered $5 in cash to people who opened a free checking account. So the bank picked a different incentive - $5 gift certificate to Pizza Hut.
End result: 138 new sign-ups through November. What gives? It's human nature, says Harvard psychology professor Nicholas Epley. "Five dollars cash for any use doesn't create a response because work is required - you have to decide what to do with the money", he explains. "But if you state a specific that conjures up a positive reaction, like pizza, it's much more effective." Indeed.
I'm sure someone here can relate this to the laundromat business.
Suppose the lesson is offer free wash, not cash.
Punch cards with a pizza?