Bought by 38 per cent of us at some point during the year, gift cards can provide us with some useful business insights, particularly when it comes to persuasion and procrastination.
Many of us succumb to occasional procrastination — especially when the task at hand seems tedious. However, a new study has found that, far from only putting off tasks that we find monotonous and uninspiring, we are just as likely to put off things that we might actually enjoy.
Researchers at the Anderson School of Management at UCLA have studied people's tendency to overestimate the time they think they'll have to carry out enjoyable activities. In one series of studies people were offered one of two different gift cards to spend in a local coffee shop. Both cards were of equal value except one was valid for three weeks and one for three months. When the researchers asked recipients how likely they would be to use it, 68 per cent of those receiving the one with the longer expiration date said they would, compared to only 50 per cent of those given the shorter one.
However, people's predications were very different to what actually happened. Although only a third of those given the gift card with a three-week expiry redeemed it, even fewer redeemed the three-month one — only 6 per cent, in fact. So even though people said they preferred a gift card with a long expiry date because it gave them more time to redeem it, in reality fewer of them actually did. Follow-up surveys were conducted to prove that the primary reason why people failed to redeem the vouchers was due to procrastination rather than simply forgetting.
So if you're planning to buy anyone a gift card this Christmas and you want to be sure that they will use it, this study suggests you should give one that is due to expire sooner rather than later.
The study also provides insights when it comes to persuading clients and customers. Looking to fix up a meeting with a new prospect? Offering lots of dates when you are available may give a sense of your flexibility and desire to do business but in reality it could actually backfire, especially if you offer dates well into the future. Limiting your availability might be a better strategy. The same is true when it comes to persuading potential customers to respond to offers where time-limited benefits or early bonuses should work best.
Ironically people's tendency to put off enjoyable experiences might actually benefit some companies. In the US, the total value of unused gift cards is close to £5bn. The mountain of unused cash has caused some consumer groups to call for retailers to extend the expiration dates on the gift vouchers they issue to give consumers the chance to use them. This research suggests that rather than reduce the problem, such a move will increase it even more. Merry Christmas.
Steve Martin is co-author of Yes! 50 Secrets from the Science of Persuasion. Twitter: @scienceofyes
BUY IT HERE: Yes! 50 Secrets from the Science of Persuasion
blog comments powered by
