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In the late 1980s the gold card was pretty expensive, something like 80 pounds, and the letters promoting it laid out long rational reasons to want one. A client at American Express had the leap of intuition that people wanted the card anyway, in a period of fairly conspicuous consumption. What stopped them applying, he judged, was fear of rejection.
The new letter said all the reader needed to do to receive the card was sign a form. It said that what the company knew about them suggested they were virtually pre-approved for membership, and that it was made so simple because the company wanted them as a card member.
Think of the psychological difference between applying to Yale and getting a letter from Yale saying they want you to apply. Dating works the same way: the thoughts change once you believe the other person is interested in you.
Why does starting ahead make people finish?
In a 2006 study in the Journal of Consumer Research, Joseph Nunes and Xavier Drèze gave car wash customers loyalty cards. One group got a card needing eight stamps, and another got a card needing ten with two already stamped, so both needed eight more washes. Of the customers with the pre-stamped card, 34% completed it, against 19% of the others.
Why do people overestimate rejection?
Francis Flynn and Vanessa Lake published studies in 2008 showing that people consistently underestimate how many strangers will agree to a direct request. Asking feels more awkward to the asker than it does to the person asked. The asker's discomfort makes a refusal seem more likely than it turns out to be.
How did the first charge card begin?
Diners Club introduced the first charge card in 1950, founded by Frank McNamara and Ralph Schneider, and it was first used in New York restaurants. American Express followed with its own charge card in 1958. Early cards were made of cardboard before plastic took over.
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