Customer loyalty requires motivation. Loyalty programs, progress indicators, and punch cards all demonstrate one thing: you are on the path to a goal. But does motivation change as the goal draws nearer? The key question is: How does the perceived distance to a goal influence engagement? Do people accelerate just before reaching the goal—and what evidence exists to support this?
Studies
The Coffee Card Experiment
In 2006, Ran Kivetz from Columbia University conducted a groundbreaking experiment that demonstrated the goal-gradient effect. He distributed identical stamp cards to 300 café customers in Chicago: collect 10 stamps, get 1 free coffee. Over five months, researchers tracked every purchase. The results were striking: an average of 12 days elapsed between the first and second stamp, but only 5 days between the ninth and tenth. Customers made purchases 2.4 times more frequently as they approached their goal. Remarkably, no one had told them to hurry—the mere proximity to the free coffee automatically triggered this acceleration.
The Endowed Progress Effect
In 2006, Joseph Nunes and Xavier Drèze from the Wharton School uncovered a psychological phenomenon at a California car wash. They distributed two types of stamp cards to 200 drivers: Group A needed to collect 8 stamps to earn a free wash, while Group B needed 10 stamps but received cards with 2 bonus stamps already printed on them. The crucial difference was that Group B perceived an artificial head start, even though both groups needed to purchase exactly 8 washes to complete their cards. After nine months, the results were striking: 34% of Group B had fully completed their cards, compared to only 19% of Group A—the illusion of progress nearly doubled the completion rate.
The Post-Reward Slump
In a follow-up study, Kivetz analyzed the purchase data of 4,200 members of a café loyalty program over two years. He discovered a paradoxical phenomenon: immediately after customers redeemed their hard-earned free reward, the gap until their next purchase doubled from 6 to 12 days. Only after customers had accumulated 3-4 new stamps did their purchase pace accelerate again. The sobering conclusion: without a visible, proximate goal, motivation drops dramatically—even among the most loyal customers.
The Car Wash Card Experiment
Joseph Nunes and Xavier Drèze conducted a field experiment in 2006 at a California car wash. They gave 300 customers a loyalty card: half received a card requiring 8 stamps to earn a free wash, while the other half received a card requiring 10 stamps but with 2 already filled in—objectively the same requirement of 8 washes to reach the reward. The results were striking: 34% of customers with pre-stamped cards completed the program, compared to only 19% of those starting from zero—nearly double the completion rate. Even more remarkable was the behavioral change: customers with initial progress averaged just 12.7 days between washes, while those without pre-stamped cards took 14.6 days. The gifted progress not only increased completion rates but also accelerated the pace of engagement.
The Online Survey Experiment
Nunes and Drèze also tested this effect digitally in 2008 with 186 participants in an online survey. All participants were asked to complete the same 10-question survey. One group saw this message at the beginning: "Progress: 0 of 10 questions." The other group saw: "Progress: 2 of 12 questions"—objectively the same amount of remaining work, but with artificial initial progress. The result: The group with starting progress had a 30% higher completion rate. Even more revealing: Perceived task difficulty was identical in both groups—the effect didn't work by making the task appear easier, but through the psychological impact of already invested effort. The paradox: Rationally, everyone knew the "2 of 12" display was artificial, yet it still worked on an emotional level.
Principle
Which principle for Customer Experience Design can be derived from this? People work harder and demonstrate greater commitment when they can see how close they are to achieving their goal—a phenomenon that can be systematically leveraged in designing customer journeys. This goal-gradient effect is particularly powerful with clearly defined, time-limited goals and when progress is displayed in a visually trackable format. The critical factor is that customers must feel they have already completed a significant portion of the journey, which is why even seemingly arbitrary head starts can substantially boost motivation. However, the effect diminishes when goals are too abstract or when progress isn't immediately visible. The following guidelines demonstrate how to implement this principle in practice.
Guidelines
Celebrate milestones
Break down large goals into smaller ones. Celebrate each milestone achieved and make the next goal visible. This keeps motivation consistently high. The following examples illustrate this guideline:
- Fitbit/Apple Watch: Badges for every achievement: 10,000 steps, first week, cumulative marathon distance. Small wins keep motivation high.
- Kickstarter: Split funding goals into stretch goals. First goal achieved? Here comes the next one – the momentum is maintained.
Make progress continuously visible
For longer processes or content, continuously display progress using scrollbars with chapter markers, "You are at step 3 of 7" notifications, or estimated time remaining for forms. The mechanism: progress indicators create small goals and moments of achievement that sustain attention. Without orientation, the process becomes a monotonous, endless loop—ideal conditions for mind-wandering. Particularly effective: non-linear progress bars that fill faster toward the end, leveraging the goal-gradient effect.
Loyalty programs with starting credit
Launch loyalty programs with initial progress rather than starting from zero. Instead of "10 purchases until reward," frame it as "12 purchases required, 2 already completed." While the actual effort remains the same, completion rates increase significantly. Present the bonus as a welcome gift rather than a manipulation tactic. Make the progress bar highly visible to maximize its psychological impact.
Onboarding with pre-filled steps
Design onboarding processes with artificial progress momentum. Instead of showing "Step 1 of 5," display "Step 3 of 7 – Your registration and email verification are already complete." Users have completed these steps regardless, but explicitly marking them as "done" creates forward momentum. The progress bar should never start below 30%—the psychological threshold for perceived progress.
Profile completion with starting percentage
Display new users' profile completion at 30-40% rather than 0%. Count basic information—name, email, and registration date—as already completed steps. The wording is crucial: Instead of "Your profile is incomplete," use "Great start! Your profile is already 35% complete." Pair this with concrete next steps: "Adding a profile picture would bring you to 50%." The psychological impact of moving from 0% to 35% is greater than moving from 35% to 70%.
Progress bar always with a head start
Never display progress bars as completely empty. Even when objectively no progress has been made, set the initial fill to at least 10-15%. Visually, an empty bar signals "not yet started," while a partially filled bar signals "already underway." For multi-step processes, mark the current step as "in progress" rather than "not started." Word choice reinforces this effect: "You have already completed X" is more motivating than "Y still remaining."
Kivetz, R., Urminsky, O. & Zheng, Y. (2006). The goal-gradient hypothesis resurrected: Purchase acceleration, illusionary goal progress, and customer retention. Journal of Marketing Research, 43(1), 39-58
Hull, C. L. (1932). The goal-gradient hypothesis and maze learning. Psychological Review, 39(1), 25-43
Nunes, J. C. & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research, 32(4), 504-512
Nunes, J. C. & Drèze, X. (2006). The Endowed Progress Effect: How Artificial Advancement Increases Effort. Journal of Consumer Research, 32(4), 504-511