Conversion
Social Proof
We copy the behaviors of others, especially in unfamiliar situations
32 dog-phobic children were split into 3 groups and shown 8 videos of either one child playing with a dog, many children with different dogs or no dogs, and then asked to interact with a dog themselves.
Those who watched another child play with a dog performed far better. Those who watched many children also kept this up a month later.
Provide mental shortcuts through the judgements of others; the more people, the more persuasive. First-time consumers of your product will benefit the most from this approach.
Persuade with similarity. We're most influenced by those who we deem similar to ourselves. Communicate characteristics relevant to that segment, such as proximity, gender / age, profession or social class to successfully direct behavior.
Use role-models. Understand the emotional drivers of your audience and seek out positive, aspirational individuals to direct specific consumer decisions and reinforce behaviors.
Experience
Delay Discounting
We choose smaller, more immediate rewards over greater ones that we need to wait for
36 children, young adults and adults were asked to choose between a delayed reward of $1,000 and a number of smaller ones now.
All were quick to accept smaller rewards now over a larger delayed one. The longer the delay, the less perceived value the reward had, so $1,000 next week felt equal to $900 today but $1,000 in five years felt like $600 today.
Embrace the power of now.
Immediate gains are valued more greatly than those far off. Similarly, far-off costs seem less painful. Amazon heighten the immediate gain by taking a hit now, for longer term business payoff.
Where in your business can you capitalize upon 'the now'?
Prevent impulsive financial or health decisions by:
• Reframing future rewards around time (by stating a specific date) or by surfacing the painful zero outcomes of short-term choices (Wu & He, 2012).
• Goal Priming. Painting a vivid, personal, emotional picture of someone's future reality will boost their ability to make longer-term decisions now.
Dissuade from inferior choices today with a lock-in for tomorrow
This is when a choice now locks in a set of future inferior outcomes, aggregating any gains and forcing a stronger consideration of less impulsive choices.
Loyalty
Rewards
We change our behavior when given gifts that reinforce actions and goals
58 households in Philadelphia, Pennsylvania had their fruit and veg shopping monitored for 8 weeks. Half were offered a 50% discount reward on all fruit and veg purchased and half were not.
Results showed that the reward increased healthy food purchasing behavior from 6.4 to 16.7 servings of fruit and veg on average per week per household.
Rewards come in two types: Extrinsic and Intrinsic.
Extrinsic rewards are economic: pay, discounts, working conditions, gold stars, healthcare, promotions etc.
Intrinsic rewards are emotional, coming from a sense of achievement through skill and hard work, unplanned verbal praise from authority figures, and peer recognition.
Too much extrinsic will lessen internal motivation as it’s seen as controlling, especially if they’re later removed (Murayama et al., 2010). Ensure that they’re significant enough to motivate against task boredom (Hidi, 2015) and are in line with the market needs of employees / customers.
Focus on rewarding intrinsically - seen as a superior reward (Deci et al., 1999) - with greater levels of trust, choice and freedom to make one’s own decisions. You’ll be rewarded with a more motivated, loyal following as a result.
Experience
Measurement Paradox
We enjoy experiences less when we track them
With the rise of wearable devices, personal quantification is easier than ever. It's not a surprise that self-tracking has a large adherence in a competitive, comparative culture where the individual is constantly improving his performance in every possible measure.
But it has a cost.
One of the responsibilities of product creators is to understand and examine the resultant behaviours that modifications to the product design will trigger. By adding certain features or changing their salience, you will inevitably change the behavioural dynamics.
It’s well studied that external rewards undermine intrinsic motivation, but now we know that the act of tracking can also impact it by reminding us of the output, making the activities seem like work. Thus, not everything that can be measured should be measured.
Peter Drucker said “What gets measured gets managed, even when it’s pointless to measure and manage it, and even if it harms the purpose of the organization to do so”.
It’s a warning from the father of management that it’s not often taken to heart, and this study reminds us of it.
With the rise of wearable devices, personal quantification is easier than ever. It's not a surprise that self-tracking has a large adherence in a competitive, comparative culture where the individual is constantly improving his performance in every possible measure.
But it has a cost.
One of the responsibilities of product creators is to understand and examine the resultant behaviours that modifications to the product design will trigger. By adding certain features or changing their salience, you will inevitably change the behavioural dynamics.
It’s well studied that external rewards undermine intrinsic motivation, but now we know that the act of tracking can also impact it by reminding us of the output, making the activities seem like work. Thus, not everything that can be measured should be measured.
Peter Drucker said “What gets measured gets managed, even when it’s pointless to measure and manage it, and even if it harms the purpose of the organization to do so”.
It’s a warning from the father of management that it’s not often taken to heart, and this study reminds us of it.
95 university students spent the day leisurely walking. In the measurement group they were given the choice to wear a pedometer. In the control group, everyone used a sealed shut pedometer. Afterwards, they rated how much they enjoyed walking.
Measuring led participants to walk more but decreased how much they enjoyed it – even for those who chose to be measured.
Consider what you want your users to feel.
While measurement may improve performance, it comes at the expense of enjoyment. By adding a measurement option, the behaviour will feel like work instead of fun.
Understand why users engage in an activity when deciding whether to measure it.
Sometimes the benefit of achieving more may outweigh the cost of users enjoying the experience. Does the end you’re looking to achieve justify the means of measuring its progress?
Switch the motivation type by becoming pro-social and giving meaning to the measurement.
For example: If you reduce your calories, you could send the equivalent of those excess calories to someone in need of food.
Prior data can set reference points that demotivate us
Our personal motivation can suffer in the face of prior data, setting unhelpful reference points about future expected efforts.
For instance, consider the following: "I can see that I ran 10k 3 times in a row, so if I don't run 10k this time, I feel that I'm doing worse. But I just don't feel like I can do 10k today, so I won't go at all."
However, in absolute terms, you're doing more in total by doing any more running at all, whether that's 1k, or even 100m, so you're best off ignoring the data and doing *something*.
A good counterbalance to this is to focus instead on the *experience* that running provides. This removes the quantifiable reference point and frees us to just enjoy the act for what it is. And who knows, maybe we'll end up running longer than 10k in the process!
Loyalty
Reciprocity
We’re hardwired to return kindness received
We call Reciprocity the glue that binds us as a society.
No surprise then that it’s a powerful tool to help people make decisions that are both pro-social and a win-win.
When the Behavioural Insights Team were asked by the UK Government to increase the rates of job-seekers turning up to interviews, they applied the principle of Reciprocity to boost rates.
They changed the text message being sent out from:
“You’ve been booked an interview at Tesco on Friday at 10am”
to:
“Dave,
I’ve booked you an interview at Tesco on Friday at 10am.
Good luck.
Roxy”
This shift from a passive tone of voice to an active tone, where Roxy had done something kind for you (and you then wanted to reciprocate by turning up), increased attendance from 10% up to a whopping 27%.
We call Reciprocity the glue that binds us as a society.
No surprise then that it’s a powerful tool to help people make decisions that are both pro-social and a win-win.
When the Behavioural Insights Team were asked by the UK Government to increase the rates of job-seekers turning up to interviews, they applied the principle of Reciprocity to boost rates.
They changed the text message being sent out from:
“You’ve been booked an interview at Tesco on Friday at 10am”
to:
“Dave,
I’ve booked you an interview at Tesco on Friday at 10am.
Good luck.
Roxy”
This shift from a passive tone of voice to an active tone, where Roxy had done something kind for you (and you then wanted to reciprocate by turning up), increased attendance from 10% up to a whopping 27%.
407 pedestrians in Brittany, France were approached by a young woman and asked to complete a survey. Before the request, half were offered candy and the other half were not.
The results found that people - especially women - were far more likely to reciprocate and answer the survey after receiving a gift than when not.
Act first.
Find ways to initiate reciprocity with consumers. Merely asking those satisfied to go tell their friends will work (Söderlund et al., 2015).
Make it a ‘common habit’.
When we’re told that a behavior is a social norm shared by others, we’re more likely to reciprocate. Households in USA and India consume significantly less electricity when told that their neighbors are consuming less (Sudarshan, 2014). In the long-term, any consistent, successful behaviors will be adopted as the default for others.
Do it in person.
Reciprocation appears to be more powerful when requests from strangers are made face to face rather than online. This is due to the persuasive impact of immediacy that physicality affords, the higher levels of digital suspicion and the sheer number of emails people receive (Meier, 2016).
Groups
In-Group Bias
We tend to favour our group over others
48 teenagers were divided into 2 groups based on expressing a preference for a painting. They were then told to anonymously award money to other participants involved in the study.
The results demonstrated that when given a choice between maximising profit for all groups and maximising profit for their own group, they chose the latter.
In-Group favouritism can take many forms.
For instance, designers might feel they are the out-group in a meeting dominated by engineers, creating a sense that they're either not as welcomed or have opinions that aren't as valued. Who might be feeling excluded in your projects and meetings?
Turn “Us vs Them” into “We”.
Broaden the perception of group boundaries by cooperating with the out-group in shared activities (Gaertner et al., 1990). Which situations can you create that promote collaboration?
Actively use the benefits of your outgroup.
We tend to evaluate the work of our own group as better and more creative than it really is. However, by enlisting the aid of an out-group, you may have an accurate assessment of the actual creative value (Adarves‐Yorno, 2008).
Be careful with unconscious bias.
Groups can be formed by meaningless reasons but also by our own pre-conceived notions or bias. What might be some of the reasons you or others use to place someone in an out-group? How might you raise this in a way to bring disconnected groups together?
Product Development
IKEA Effect
We’ll pay disproportionately more for something we’ve helped create
52 people were split into two groups and given IKEA boxes: either fully-assembled or unassembled that they were asked to put together.
Those tasked with assembling their box were willing to pay a 63% premium for it during the subsequent bidding process over those given the pre-assembled boxes.
Provide personalization options early in your order flow to engender a sense of ownership and significantly improve conversion. Apple do this with their customizations for a new computer, as do new car showrooms. How can you add a low-risk, satisfying sense of creation into your existing products or services, especially around your USPs?
Don’t create choice overload and stress with too many pre-purchase customizations. Similarly, keep any post-purchase building effort simple, fun and low risk. What core parts of your product manufacture should always remain out of customer hands?
Frame involvement as a value-add experience and not a labour-cost-saving exercise. How much this is felt may depend on your brand, your product and what you allow to be crafted by customers.
Product Development
Picture Superiority Effect
We remember images far better than words
142 people were split into 3 groups and were shown either 72 nouns, abstract words or pictures on a projector for a split-second each, with 5-second pauses in between. They were then asked to recall as many items as possible.
Results showed that those in the picture group recalled far more than either word groups.
Boost your message.
Visual ads are remembered better in the long term than verbal ads, especially when we are under greater cognitive load (Childers and Houston, 1984).
What emotional message can you convey more powerfully with a striking, visual metaphor over mere words?
Boost learning by adding in visual references, and not relying solely on text-based language.
This can help broaden understanding across cultures and age ranges.
Where are you trying to change behavior?
What image do you want to stick in peoples’ heads to simplify understanding?
Make product choices distinct.
Images are internalized twice, both visually and verbally (see Dual Code Theory), so they stick in the brain better than just words.
This holds as long as the images aren't abstract or similar to one another (Reder et al, 2006).
So if you sell a large product range that looks similar, consider modifying their design or how they're presented to heighten relative differences and create a more distinct range of choices.
Experience
Biophilia Effect
We're drawn to living things and become stressed if too detached from them
68 people were shown photos of shopping environments, either with or without plants. They were then asked about the environment’s percieved restorative power.
Those who saw the biophilic environment reported a higher restorative effect on wellbeing than those without plants.
Use nature to restore consumer attention and boost dwell time (Lee et al., 2015).
Even a short exposure will reduce mental fatigue. Where are the most stressful points along a customer journey? Focus on ‘biophying’ these areas first.
Leaf the stress behind.
Research (Ulrich et al., 1991) suggests that having restorative green spaces in the workplace reduces stress, even though 58% of office workers still have no plants (Human Spaces, 2014).
Seeing plants from a worker's desk lowered self-reported sick leave next to those without a bio-optimized view (Bringslimark et al. 2007).
Start small and slowly work your way down the list of biophilic enhancements.
Create familiarity through nature.
Use natural references to ground marketing of technologically-complex or abstract products to boost understanding and brand warmth (Rafaeli and Vilnai-Yavetz, 2004).
Experience
Chunking
We process information better when put into small groups
48 people were shown 100 sets of numbers of different lengths, split up into a number of smaller chunks. After seeing each set, they were asked to recall the numbers in a memory test.
The results found that, on average, people were good at remembering about 7 numbers and 4 chunks before memory errors started kicking in.
Chunk for clarity.
Our short-term memory is limited, so whether you're designing a food menu or trying to share a new idea, prevent Analysis Paralysis by breaking information down into 3-5 smaller bites that are easier to process.
Chunk requests.
If you're asking for a lot of info from customers, how can you break the task into more manageable segments?
Data capture company, Typeform are a great example of this, turning the concept of chunking into a core USP for its data capture products.
Chunk for long-term understanding.
Boost knowledge retention by structuring each chunk learned to build upon what was learned in previous ones. Repeat past chunks to build a strong, modular connection between fragmented bouts of learning.
Language app, Duolingo does this in an engaging visual way.
Product Development
Analysis Paralysis
Our capacity to process information and make decisions reduces with each made
42 people were either asked to make 35 'A or B' choices that would inform the design of an educational course they were attending, or instead to just read the course material. Both were then tasked with solving math puzzles and were timed until they gave up.
Those who had to make the choices beforehand persisted for less time on the puzzles and also got fewer right.
Protect your decision capacity.
Prioritize your day around and take breaks before making harder decisions. For example, restaurant inspectors can reduce errors by scrutinizing sites at higher risk of failure at the start of the day (Ibanez & Toffel, 2017).
Create product contrast.
When no option in a set offers a distinct advantage from the others, we're most at risk of not choosing at all (Dhar, 1997). How can you improve your choice architecture to offer variety that actually makes deciding easier?
Order matters for revenue.
Prospective Audi owners given a high number of customization options early on more readily accepted, higher-priced defaults in later steps (Levav, 2010). Though be careful not to trigger Reactance by pre-selecting defaults that are seen as too expensive.
Product Development
Availability Bias
Our judgements are heavily influenced by what comes to mind more easily
36 medical students were first asked to diagnose six clinical cases (Phase 1). They were then asked to diagnose a further eight, four of which were similar to Phase 1, but were actually different (Phase 2). Their accuracy for successful diagnosis was rated out of four.
Average diagnosis scores were 17.5% lower for Phase 2 cases that were similar to those in Phase 1.
Create pre-experiences.
During product development sessions, prime attendees with prototypes to first tell a detailed story of an imagined future. This will increase innovative ideas by reducing both incremental thinking (Liedtka, 2015) and inferior ideas brought about through Ownership Bias and any Sunk Costs.
Conduct reflective reviews.
After results are in from product experiments, reviewing the specific causes behind both failures and successes is critical. This will help you understand any assumptions or misdiagnosis brought about by merely relying on what comes easily to mind (Ellis and Davidi, 2005).
Include real customers in retrospectives.
Combining reflective reviews with real customer feedback will boost team performance (Schollaert, 2009) and help suppress the perils of your team's own Confirmation Bias.
Conversion
Zeigarnik Effect
Incomplete tasks weigh on our minds until done
47 subjects were given around 20 small, manual tasks to complete, one at a time. Experimenters randomly interrupted completion of half of these tasks. After, subjects were asked to recall as many tasks as possible.
There was a 90% higher recall of incomplete and interrupted tasks than those completed.
Make important task completion frictionless. If customers leave your site without finishing their order, make it effortlessly easy to get that completion feeling, such as allowing for completion with a single click, tap or swipe.
Focus on completion’s emotional release. Providing reward incentives for task completion actually demotivates consumers. Instead, remind them not just of the product they’ve not yet bought, but of the feelings that this ‘purchase task’ will unlock.
Make known campaigns incomplete and interactive. Greater familiarity with an advert increases consumer ability to complete an interrupted ad message. Active participation also boosts ad memory (Heller, 1956). So if your popular campaign’s reaching its end, consider a special second follow-up version that allows for active participation in completing the ad message.
Product Development
Collection Bias
We have an emotional need to amass sets of related items
Almost anything can be collected, but to promote collectibility of your products, you should release them in identifiable sets (Carey, 2008). Use names, symbols or colors to connect products. Even subtle additions like a numbering system can turn a mere range of products into a collection.
Self-identity is a primary motive for collecting (Smith et al., 2008), so creating distinction through scarcity (“I have this but you don’t”) is key to increasing consumer status. Hold back or stop supply of certain items to create a secondary market.
Create a community to foster social value of your collection. This provides social acceptance - one of the core reasons people collect (McIntosh and Schmeichel, 2004). Social also heightens resell value.
Release collectibles in waves over time (Bianchi, 1998). This will increase the overall enjoyment of the experience and increase the desire to collect. Never saturate the market with too many sets, variations within sets or too many limited editions (Hood, 2006). Overproduction will kill the magic and therefore consumers’ ongoing desire to collect. Don't make the pursuit too easy to achieve (Csikszentmihalyi, 1990), but also not so large a task as to be out of the reach of your audience (McIntosh and Schmeichel, 2004).
Branding
Halo Effect
We incorrectly transfer judgements of known attributes onto other unrelated or unknown ones
165 people were told of a printer maker and split into four 'halo' groups (environment, community, customers or employees) and a control. Each group were then told of its extra efforts in these areas and then quizzed about its Corporate Social Responsibility in general.
People assumed the halo groups to be more socially-responsible in unrelated areas, despite no evidence!
Invest in reputation.
Since we take shortcuts when judging brand character, first impressions matter. Where in society, the environment, with customers or with employees can you foster initiatives that will trigger the Halo Effect?
Spend wisely
i.e. investing in employee and community relations has been found to more persuasively impact the judgements of corruption prosecutors than promoting diversity or being environmentally friendly (Hong & Liskovich, 2015).
Consider co-branding.
Evaluations of new products are heightened by the presence of at least one high-equity brand (Besharat, 2010). Instead of launching a sub-brand, consider partnering with other brands that complement your values or already make CSR efforts that you aspire to.
Branding
Fluency Shortcut
Statements that are easier to understand are more believable
205 people were shown a description of a digital camera printed in a font that was either easy to read (high fluency) or hard (low fluency).
Results found that when easy to read, only 56% delayed choosing the camera, next to 71% when hard. Why? Fluency breeds familiarity, which we value greatly, because it’s unlikely to be harmful (Zajonc, 1968).
Keep it short. Whether for marketing, nudges or political persuading, low syllable, easy-to-conceptualize slogans will feel dramatically more intuitive for consumers. Next to a competing message, they’ll believe the one that’s easier to understand (Schooler & Hertwig, 2005).
Repeat. Repeat. Repeat. The mere act of repeating your message will increase its familiarity, which itself increases the extent to which it’s seen as true (Reber & Schwarz, 1999). Keep it consistent across your team and put it everywhere.
Keep product benefits concise. Consumers actually like a product less the more positive traits they bring to mind (Menon & Raghubir, 2003). This is because they start to associate your product with greater complexity and lower fluency.
Experience
Fast & Slow Thinking
We make knee-jerk spontaneous decisions that can cause regretful damage
Whilst we all like to think we make rational, optimal decisions, sometimes, our impulses get the better of us.
In an attempt to preserve our cognitive capacity, we make what’s called fast, reactionary “System 1” judgements.
These might not be very good at all for us.
Let me explain.
Consider you’re stressed out after a long day, and launch your favourite social media app to unwind. You see someone sharing a wild conspiracy theory that you know to be untrue.
You’re angry, and quickly write out a frustrated comment that criticises this person, using strong language that would offend.
At this point, hitting “send” would cause a lot of damage you can’t come back from.
This is where our slower “System 2” thinking becomes vital.
Here, reflective thought is the order of the day. It’s more cognitively-expensive to think about what the deeper implications of hitting “send” would be. However, now would be a good time to do so.
Social media apps are increasingly providing us opportunities to do just this. Banks could do the same. “Are you sure you want to withdraw all your savings?”
Providing users a “cooling off period” for impactful moments now can allow for better decisions that help us more in our future.
Whilst we all like to think we make rational, optimal decisions, sometimes, our impulses get the better of us.
In an attempt to preserve our cognitive capacity, we make what’s called fast, reactionary “System 1” judgements.
These might not be very good at all for us.
Let me explain.
Consider you’re stressed out after a long day, and launch your favourite social media app to unwind. You see someone sharing a wild conspiracy theory that you know to be untrue.
You’re angry, and quickly write out a frustrated comment that criticises this person, using strong language that would offend.
At this point, hitting “send” would cause a lot of damage you can’t come back from.
This is where our slower “System 2” thinking becomes vital.
Here, reflective thought is the order of the day. It’s more cognitively-expensive to think about what the deeper implications of hitting “send” would be. However, now would be a good time to do so.
Social media apps are increasingly providing us opportunities to do just this. Banks could do the same. “Are you sure you want to withdraw all your savings?”
Providing users a “cooling off period” for impactful moments now can allow for better decisions that help us more in our future.
2,064 male students from 9 schools in Chicago were enrolled in a two-year-long program that encouraged system-two slow thinking on how to manage situations of conflict.
Participation in the program reduced total arrests by 35% and violent crime arrests by 50%.
Add a little friction.
We constantly weigh up effort vs rewards, so seeing one long sign-up form can lead us to make a fast system-one decision not to do so.
A process that’s Chunked, features reflective Goal Primes and clearly shows the product benefits will work better.
Provide warnings for damaging decisions.
Instagram have launched "comment warning", live-analysing a comment and notifying of potential offense, without removing the Autonomy to post. This allows for reflection and avoids Reactance.
Build in reflective periods for big decisions.
Knee-jerk, short-term decisions can harm our longer-term goals. E.g., financial firms can help us make smarter decisions about withdrawing all our savings by building in a reflective delay, especially when such decisions conflict with our prior Commitments and goals.
Experience
Feedback Loops
We look for information that provides clarity on our actions
City Planners of Garden Grove, California installed Active Radar Speed Signs at 5 locations to provide real-time feedback on the speed of 58,000 drivers. LEDs would also flash if drivers exceeded speed limits by more than 5MPH.
After installation of the feedback systems, average speed dropped 22% from 44 to 34mph.
First, determine the behavior to change. Measure, capture and store the relevant data.
Communicate it back to the individual in a relevant, context-sensitive way that ultimately provokes an emotional reaction.
Provide clear consequences for action or inaction. It’s critical to get the right balance between not being too subtle and not being too intrusive or authoritarian (which we filter out).
Lastly, allow for opportunities to immediately rectify the behavior - which should also be tracked - completing the loop and eventually changing the behavior pattern. Remember to reward compliance as much as you penalize inaction to increase effectiveness.
Experience
Hedonic Adaptation
We feel less joy for a gain and discomfort for a loss as time goes by
2230 people were tracked over a 19-year period and were asked to record their life satisfaction. All at some point during the study got married.
Results showed that despite average happiness peaking in the years surrounding their marriage, it eventually returned to the baseline.
Create unexpected secrets (Lyubomirsky, 2010).
As soon as your once-new product or service ceases to draw attention, it'll fail to be appreciated. What bundles, new variety or joyful hidden details can you build in and communicate to offset this?
Highlight new possibilities.
What ways can your product change customers' lives to set them on a new positive hedonic path? For example, a healthy snackbox subscription could add in recipe cards, unlocking a second-order effect of healthy food-pairing.
Reduce pain with certainty.
We revert to the mean faster for negative experiences when they're short and predictable. Banks offering loans shouldn’t just draw on the habitual pain of repayment but also seek to build a positive sense of closure around the joyous certainty of the final repayment.
Branding
Nostalgia Effect
Thinking about the past makes us want to spend more now
129 people were split into 2 groups, with half asked to either write about a time when they felt nostalgic or a neutral event. After writing, everyone was given $5 to distribute between themselves and a random other.
The results showed that on average, neutrals only gave away $1.43, whereas nostalgics gave $2.
Understand what nostalgia means for your target audience. Brands, products and campaign messaging can all gain from referring to the past to loosen our wallets. Nintendo are now rereleasing their 1985 NES console, for example.
Use to promote social behaviour. Since nostalgia causes a reduction in one’s desire for money, it can instead be used to increase charitable donations or promote participation in a charitable event.
Digital nostalgia is growing, as our online history of archived experiences deepens. The opportunity to capitalize upon this powerful effect will only increase. e.g. Facebook is now reminding us of our past experiences, using nostalgia to keep us emotionally bound to their network.
Experience
Certainty Effect
We crave clarity over chance and make costly sacrifices to get it
77 people were asked to choose between an entirely certain win of $30 and an uncertain 80% chance of winning $45.
78% of people opted for the significantly smaller, certain reward, despite the risk-adjusted payout being higher for the uncertain reward (0.8 * $45 = $36).
Certainty is valued highly.
What ways can your business create reassurance or guarantees that make consumers feel safe? How can you use exclusive certainty to reward and foster a sense of status with your brand?
Stick to your promises!
Letting consumers down, even once, will trigger uncertainty in the quality perceptions of your brand. If making claims about being the best at something, don’t ever give consumers reason to question that and turn a selling point into an unsustainable headache.
Reframe uncertain offers to appear certain.
The uncertain frame here requires consumers to calculate proportional savings, but the certain frame removes this by showing certainty of a zero-priced third lemon.
Experience
Surprise Effect
We respond well to positive, unexpected, personal gestures
435 people were asked to go to a restaurant and split into four groups. They were then either given a surprise free dessert or not, and then finally either given an explanation of the reason for the surprise or not. All were then asked to rate their level of delight.
Those given the explanation rated the surprise as more delightful than those who weren’t.
Surprise sparingly. The more frequent the surprise, the less positive it will make customers feel. Give your staff creative autonomy to make small, personal & unexpected gestures that strike deep.
Provide an explanation for the surprise to suppress future unrealistic customer expectations, avoid mistake misconceptions and heighten the sense of personalization.
Reframe problems into surprises. During a busy Christmas, Lush (a UK soap store) had a long queue, which an elderly lady holding one item had joined. A shop assistant noticed, pointing out the queue length and that she didn’t need to pay. After he insisted she accept, she hugged him and left the shop with the free item. Another customer then told him that witnessing his kindness had made her day. Both will recall compassion, positive surprise and stress relief in future perceptions of the Lush brand.
Loyalty
Reciprocity Decay
Our desire to give back wanes rapidly with time
18,515 patients who had been admitted to a university hospital were subsequently mailed a request to donate to the hospital charity.
The researchers found that requests delayed by about 30 days after each patient’s visit reduced the donation rate by 30%, falling ever further as the delay increased.
Timing is everything.
There is a ‘goldilocks’ window of time within which kind acts will most likely be reciprocated:
• Not too quick: diners asked to review their experience when paying the bill should instead be prompted the next day and not at the table.
• And not too slow: try recalling a meal you had 3 months ago…
A small delay? Ask for less.
If you've waited too long for a reciprocal favor in return, make it easier. Provide a subtle reference to your past act of kindness, but instead of asking for a donation, ask for a share, perhaps combining with a Reward.
A large delay? Start afresh.
Life goes on and we quickly forget others' kindness, so for extreme delays, expect no response.
Instead, create a Fresh Start with an easy re-entry to reciprocity: a new seasonal menu tasting invite for a restaurant, for instance. After the event, follow up with your request. It will likely be granted, such is our internal desire to rebalance things.
Conversion
Priming
Our decisions are shaped by memories recalled from things just seen or heard
34 people were split into 3 groups and each told to unscramble a list of either rude, polite or neutral words. After, they were told to see the researcher, who was engaged in a fake discussion with a peer. They were then timed with how long it took before they interrupted.
63% of those primed with rude words interrupted within 10 minutes, compared to only 18% of the polite group.
Prime with words that highlight the positive emotional effect of using your goods or services. For example, Spotify could prime users of its Discover Weekly playlist by using words that highlight its uniqueness or repeat gift-giving benefits.
Combine with images Coca Cola created an advert in Italy called ‘Open the happy can’ that primed potential buyers with a simple smile that was revealed upon opening. This was done in order to create an associative link between happiness and drink consumption, as well as providing a means of positive feedback for the consumer.
Keep it subtle. Prime too aggressively and the effect will weaken, or even lead to an unwanted Contrast Effect, where we’ll subconsciously reject and seek out opposites to the prime.
Pricing
Anchoring
What we see first affects our judgement of everything thereafter
During decision making, anchoring occurs when individuals use an initial piece of information to make subsequent judgments.
Once an anchor is set, other judgements are made by adjusting away from that anchor, and there is a bias toward interpreting other information around the anchor.
For example, the initial price offered for a used car sets the standard for the rest of the negotiations, so that prices lower than the initial price seem more reasonable, even if they're still higher than what the car is really worth.
Studies have shown that anchoring is very difficult to avoid.
For example, in one study students were given anchors that were obviously wrong. They were asked whether Mahatma Gandhi died before or after age 9, or before or after age 140.
Clearly neither of these anchors are correct, but the two groups still guessed significantly differently (choosing an average age of 50 vs. an average age of 67).
During decision making, anchoring occurs when individuals use an initial piece of information to make subsequent judgments.
Once an anchor is set, other judgements are made by adjusting away from that anchor, and there is a bias toward interpreting other information around the anchor.
For example, the initial price offered for a used car sets the standard for the rest of the negotiations, so that prices lower than the initial price seem more reasonable, even if they're still higher than what the car is really worth.
Studies have shown that anchoring is very difficult to avoid.
For example, in one study students were given anchors that were obviously wrong. They were asked whether Mahatma Gandhi died before or after age 9, or before or after age 140.
Clearly neither of these anchors are correct, but the two groups still guessed significantly differently (choosing an average age of 50 vs. an average age of 67).
Participants were asked to quickly estimate - within 5 seconds - the answer to one of two same calculations, anchored either low or high.
Those with the low anchor guessed 512 on average, whereas the high guessed a much higher 2,250. The correct answer was 40,320.
Put the highest price first
This will make subsequent prices appear cheaper in comparison and increase sales.
For instance, on the wine list shown, instead of putting the expensive items at the foot of the list, rearrange them in descending price.
Alternatively, if higher, show your competitors' prices first before revealing your comparative value.
Don’t set your anchor price too high
If you do, the natural inclination to anchor other options against this price will diminish.
Be realistic. Keep it within an appropriate region of your other prices in order for your anchors to be effective.
Audience matters.
Anchoring effects weaken for those with higher cognitive ability (Bergman et al., 2010) and those with prior product-buying experience (Alevy et al., 2011).
Product Development
Goal Priming
When we’re reminded of our aims, we're more motivated to reach them
The food choices of 89 people both dieting and not dieting were analyzed in a cafe. Diners were given a menu with either information highlighting low-calorie options or not (the control).
Results showed that dieters primed with the reminder of their future goal consistently made healthier food choices than unprimed dieters.
Who is the target group?
They could be people who are motivated to protect the environment, improve productivity at work or improve the quality of their lives. Note: they must have already stated a desire for this goal. Your prime will merely aim to nudge their existing Commitment to meeting their own aspirations.
Where can you trigger these long-term motivations?
As well as environment, timing also matters, so make sure that you do so very close to the actual decision point, i.e. at the start of a meeting, at the ordering counter or on the inside of a restroom door.
Boost with the Spacing Effect.
What's the specific behaviour that you're allowing them to perform to help move them towards their long term goal?
It has to be obvious and easy to do, such as clearly identifying an eco-friendly substitute, bolting on a salad or opting for an equally-priced, dairy-free option.
Pricing
Round Pricing Preference
We prefer and trust whole numbers over those ending in a 9
306 people visited one of three coffee shops and were asked to buy a coffee at either: €0.99, €1, €1.01 or an orange juice that was €0.15 cheaper than the respective coffee price.
Results showed that, contrary to conventional research on pricing (shown by the dashed line), the round-priced coffee saw the highest % of sales.
Use round prices to reduce fatigue.
There’s a growing trend for cognitive convenience in the face of Time Scarcity and Analysis Paralysis.
A banana costing £1 is easier and faster to process mentally than one costing £0.95. UK retailer Tesco now adopts this specifically for promotions.
If your brand places a value on saving time and energy, consider doing the same.
Use for premium, green or pleasurable products.
Marks & Spencer (UK), Saks (US) and Levi’s now adopt round pricing, showing the zeros. Doing so signals brand quality, warmth and trust.
Use to nudge secondary behaviors.
For transactions, add a Foot In The Door to give the rounded difference to charity (supermarket), savings (banks) or tips (fast food), for example.
Conversion
Reactance
We’ll do the opposite from what we’re asked if we’re pushed too hard
84 people were shown an ad for a known clothing brand that they either had an existing loyalty to or not, written either assertively or not. Based upon the ad, they were then asked how much from a $25 gift card they'd spend.
People spent less money after viewing an assertive ad next to a non-assertive ad, especially when loyal.
Don’t misuse behavioural principles.
We've seen a rising use of faux-scarcity to create an uneasy sense of urgency as well as an aggressive use of Defaults that aren't in customers' best interests. Such applications turn positive activities, like booking a holiday into ones riddled with stress.
Give some control (Miller et al., 2007).
Having a feeling of choice can reduce feelings that our freedoms are being taken away. Mix Autonomy with Certainty by reminding of the inevitability ahead while granting other areas where you can give back control in meaningful ways.
Give lots of warning up-front
If you're planning a big change that will clearly trigger reactance (Richards and Banas, 2015), giving time for the news to sink in, let people familiarise themselves with the new, uncomfortable normal will then reduce reactance when the change does come about.
Branding
Devil Effect
Our perception of a single negative attribute unfairly bleeds into other unrelated areas
247 people were told of an NFL player endorsing a shoe brand and shown a news item of the player being guilty of a drug deal, of the brand faking employee insurance, or a no-news control. They were then asked to rate feelings towards both celebrity and product.
Products were found to suffer from worse perception after a bad celebrity act, but the celebrity was relatively untainted following a company failure.
The Devil is everywhere...
...and not particular to just humans, but also found within places, opinions, brands or symbols. In being Fast and Slow Thinkers, we look for shortcuts as to how the world is, and who to trust.
Be careful of your associations.
Think carefully about the connections you make and the potential risk of doing so. Consider the campaign by watch maker Swatch, themed around the Brexit referendum to design your own watch. Nobody wants to be reminded of painful division, especially when reduced to a quick sales opportunity.
Don't let the Devil get in your way.
We’re biased against a great idea from someone we don't like or a delicious recipe recommendation from someone with differing political views. If you discredit x just because of y, try to recognize the source of the devil and accept that we can hold many conflicting views and also be of great value to one other.
Experience
Spacing Effect
We remember things better when repeated over time and across environments
40 students were taught a topic and either given the respective homework once instantly or 3 times over the next 3 weeks. They then had an exam a month later.
Those who had the homework spaced out over time performed much better in the exam than those who were asked to do it immediately after learning.
Spread out the learning.
Research shows that spaced repetition is the most robust means of learning but is rarely used by companies. Most knowledge is delivered once and forgotten, wasting money and time. Develop shorter learnings spread over time, using different tools, both digital and physical.
Use it or lose it.
Knowledge only sticks when we use it. After reading a book chapter, summarize learnings into bullet points, a list of actions, or even better, become the teacher. Blinkist could send some simple interactive questions after readers have finished a book. Use Slack app QuickQuiz to follow up Lunch & Learns with a Tiny Habit of bite-size questions.
Make progress trackable.
Learnings apps like Duolingo and Memrise create powerful Feedback Loops through points systems, daily goals and leaderboards to create positive reinforcement. Tracking progress gives us a sense of growth and improvement.
Conversion
Door In The Face
We're more likely to agree to a small request after first rejecting a larger one
375 mountain hikers were approached as they passed a cheese sales counter and asked to buy a large piece, with all rejecting it. They were then offered a piece half in size and cost and split into 4 groups: 1 - Simple DITF; 2 - a verbal concession that large was too big; 3 - credibility by wearing a traditional uniform; and 4 - 2+3 combined.
Purchases were much higher with DITF, especially carried out by a credible salesperson conceding verbally.
Verbally emphasize the concession of the target request over the initial one. This is vital - hearing the salesperson empathize and adjust their request is required for the consumer to reciprocate and accept.
Only use in physical sales situations. It’s unlikely to work where there is no direct contact between buyer and seller (e.g. online auctions), due to the lack of verbal concession and face-to-face interaction. It’s best used in an in-person context where negotiation is key (car showrooms, charitable giving, B2B contracts etc).
Sizes matter. Don’t make your initial request too high, as consumers will use it to justify their rejection of the target request (Wang et al, 1989). Also ensure that the reduction of the target feels significant enough for the consumer to justify a decision change.
Loyalty
Status
We constantly look for ways to improve how others see us
150 students completed a simple task and were split into two groups and given either positive or negative feedback on their performance. They were then shown either a one-off print or a mass-produced one and asked how much they’d pay for it.
Those given negative feedback were willing to pay almost 4x more on average for the unique print than those with positive feedback, showing how we use consumption to heal our sense of status.
There are multiple ways to elevate brand status:
Form strategic alliances with successful others with whom you share compatible goals (Thorndike, 1920), e.g. Go-Pro and Red Bull.
Develop your core purpose to raise your products’ perceived value (Chernev & Blair, 2015), e.g. Patagonia who “use business to inspire and implement solutions to the environmental crisis.”
Create and control new ways of promoting industry excellence. Dribbble, a platform for design teams to show off their work provides paid-for "Pro Business" status badges to distinguish the best from the rest.
Invest in a tiered loyalty scheme to elevate consumers’ status & brand attachment (Nunes & Dréze, 2006), e.g. British Airways Executive Club.
Experience
Aggregation Effect
Negative experiences feel less painful overall when they’re bundled together
425,744 sales of US shares were analyzed by determining which had gained value and which had lost value. Both groups were further analyzed to determine whether the shares were sold in groups or on their own.
The research found that investors were more likely to sell off losing trades in groups over those which were doing well, so as to ease the pain of loss.
Package the pain.
Releasing a whole bunch of bad news in one go is better than drip-feeding it across successive days.
Similarly, having four fillings in one go is preferable to spreading them out one a week for a month. It's less painful overall with fewer periods of worry.
How you Frame pain matters too.
Emphasize the short, one-off nature of the discomfort, the Fresh Start and comforting Certainty it will provide.
Consolidate smaller losses into bigger gains.
Even small bits of bad news can trigger overweighted negativity.
Consider bundling them as part of larger, positive announcements to reduce the pain felt.
Split off small gains from bigger losses.
What small victories can you hold back and share separately after a big bit of bad news?
What small feature can you release separately from a significant security update?
Experience
Segregation Effect
Positive experiences feel better overall when we spread them out
87 students were told that two men won in lotteries: Mr A won $50 in one lottery and $25 in another. Mr B only entered one lottery and won $75. The students were then asked who they believed to be happier.
Results showed that students believed the segregated Mr A to be happier with his winnings.
Segregate the good.
Two small gains trump one large one. Be it team victories, feature announcements, product packaging or loyalty benefits, where can you break up the good into smaller, bite-size pieces?
Highlight silver linings.
Separate a small gain from a larger perceived ‘loss’ to reduce consumer pain. For example, instead of offering a temporary price reduction, offer a special rebate equal to the proposed discount.
Don't separate too small. We have a low-end threshold below which we experience no joy (Morewedge et al., 2007). Breaking a cookie into crumbs results in almost zero joy. Banks offering current account holders low monthly 'loyalty rewards' would do well to reframe them into larger, more meaningful chunks, or not do it at all. After all, no one wants to be reminded of the meaninglessness of their loyalty.
Conversion
Metaphorical Shortcut
New or complex ideas are easier understood through existing ones
408 people were shown one of three versions of a shampoo advert. The control just had the words “Say bye-bye to your dandruff” with an image of a couple. The two metaphor versions both had “You may erase anything unwanted” with either an eraser (implicit) or the bottle of shampoo (explicit) rubbing out words on a blackboard.
Results showed greater purchase intentions for the product with either metaphorical ad.
Leverage our existing understanding of the world for new ideas or concepts. Complicated ideas are best understood through existing ones. What analogies can you draw that your customers can relate to?
Easy metaphors aren’t always best. Research has found that metaphors with a little complexity are fun and act as a mild problem to solve. Use with Curiosity and Humor.
Reserve this for known brands or products; for new or abstract technology, keep metaphor complexity low.
Metaphors come in different flavors:
Juxtapositions: two images next to one another;
Fusions: mixing two concepts into a single one; or
Replacements: switching one thing for another.
Just make sure that you harness real world understanding to help ground your new idea.
Conversion
Fresh Start Effect
We're more likely to stick to habits made at the start of new time periods
11,912 members of a gym were surveyed over 442 days for their attendance.
Results showed that, next to the baseline, the probability of people going to the gym increased at the beginning of the week, month and semester, showing our higher in-built level of motivation at the start of new time periods.
Motivate around fresh start moments.
How can you help people achieve their dreams by communicating around multiple time chunks, such as the start of the week, month or year, or even personal events like birthdays, graduations or job changes?
Target one-shots.
Fresh starts are particularly good at helping people make one-off decisions that perhaps they'd been delaying, such as getting that flu jab. What single task can you help people do around new time periods?
Use to overcome failures.
There are countless fresh start opportunities to help people who have let good habits slip. Frame it as a "new you", which gives an opportunity to separate themselves from past failures. Get them started by being empathic and having them Commit to a Tiny Habit.
Loyalty
Limited Access
We place greater value in things when there are barriers placed around them
310 US Amazon Prime customers were split into 2 groups, either on a free trial or on a paid membership. They were then queried about attitudes towards and value perceptions of Prime and its benefits.
Those on the paid subscription reported greater loyalty, perceived value and exhibited a higher monthly spend than those who were on the free trial.
This is driven by two core effects:
1) Sunk Cost Bias where we seek to justify past, non-recoverable costs (of membership access) with our current actions (more spending), even when it’s not in our best interests.
2) A desire to remain consistent with our past commitments - “I’m a Prime customer now.”
Create a members club. Putting a price on entry heightens our analysis of the benefits of joining in a way that we wouldn’t if it were free. Limiting access to certain products or benefits can signal higher perceived quality (Zeithaml, 1998) and an increased willingness to buy.
Amazon entice with convenience (‘free’ one-day shipping), priority (30-min Early Access Lightning Deals) and exclusive choice (a vast music, video and book library). What benefits would your own customers pay for? What feelings can gaining access promote?
Loyalty
Entourage Effect
Our status is elevated when we share our VIP treatment
54 American football fans were offered the chance to watch their team from a luxury suite for the game and, if present, could bring along a friend (i.e. an entourage) for the experience. 17 had a friend to bring, but 37 didn’t. After, all fans were asked about their feelings of status.
Results showed those sharing the experience with friends rated their status much higher than those who were alone.
Permit guests to enhance status.
If you wish to make a VIP feel truly special, grant them the ability to share some, if not all, of their benefits with their friends. Doing so will create a powerful sense of social prestige for the VIP that far exceeds the joy felt from the scarcity of their benefits.
See the VIP as a group, not a person.
What group-specific social benefits can you provide in your programme?
Also make sure that the VIP understands that they are the gatekeeper to such benefits and the entourage is clearly subordinate with Access contingent on the VIP’s presence.
Communicate the rules up front.
When granting special group benefits to a VIP, there may be times when this special social contract is broken. Therefore, it's key to respectfully state your rules with justification beforehand (Habel et al., 2017). This will highlight the two-way, trust-based nature of the relationship and remind the VIP (and group) how to behave to keep their elevated Status.
Branding
Self-Expression
We constantly seek out ways to communicate our identity to others
274 people were shown 10 t-shirts, split into 4 groups and then asked to rate the shirts on either likeability, casualness, colorfulness or how much it matched with a cap. They were then asked how fun the task was.
Those given the ability to express their like or dislike rated the task as much more fun than the other groups. Simply, we value ways to express how we feel.
Personalization pays.
Bold, scaleable self-expressive features increase loyalty and sales.
Coca-Cola’s #ShareaCoke campaign - switching out the product name for a person’s name - led to a 10% rise in 2014 sales and a 7% spike in Facebook growth.
An Australian store sold 400,000 customized jars of Nutella for $10 each, becoming their top seller.
Tie it back to emotions.
Though there are successes like Kraft Heinz personalized soup “Get Well Soon ___”, with consumers happy to spend five times more, know that personalization has upper bounds on price and has less impact as it becomes more common.
Like Heinz, the smartest brands will tie personalization to underlying product emotions - care and sympathy in this case.
What emotions do you want end consumers to feel? Use personalization to help express these publicly.
Conversion
Ownership Bias
We value things more when we feel we own them
218 people were split into 3 groups, given either a coffee mug or a chocolate bar and told they could swap their item for the other; or given neither and told they could choose either.
Those who’d been endowed with either item were far more likely to stick with it than those who were given neither.
Perceived ownership is powerful, allowing consumers to attribute increased value and emotional connection on what you’re offering, creating a strong desire to buy that increases over time.
It’s driven by a price gap between how much we’re willing to pay for an item and the price we’re willing to sell it for. This is due to a mix of Loss Aversion, Framing (i.e. buyer or seller) and the evolutionary advantage of overvaluing our tradable possessions. Doing so increases our resources and chances of survival.
Allow people to feel ownership of a product prior to purchase. Examples include: making it effortless to add that product to their basket, visually personalizing a product early in the ordering process, highlighting how soon it could be at your door or allowing free week-long test drives of that car you’ve always wanted.
Product Development
Product-Person Bias
We look for and value human connections in our products
146 people were asked to view one of four cell phones that had buttons made to look like a smile or a frown with either upturned or downturned eyes. They were then asked to rate how much they liked that particular phone.
Those who saw a friendly face liked their phone far more than those who saw a sad, negative face.
Make it human.
Doing so will speed up familiarity with abstract or complex products (Hart, 2013), or for new or lonely customers (Hart & Royne, 2017).
Where can you add warm humanness to your product?
Go all in.
In 2009, price comparison site Comparethemarket changed its fortunes overnight by introducing Aleksandr, a talking Russian meerkat. With his own language, highly active social media presence, soap opera, merchandise and even a pseudo-autobiography, he’s one of the most talked about ad campaigns in recent UK history.
Unboxing as ‘birth’.
Consider Flymo's Robotic Lawnmower. Many owner reviews on Amazon gave their 'new family member' a name, but Flymo could build this smoothly into the unboxing experience. How can you design for a subtle human bond at first sight? Doing so may create a stronger Ownership Bias and may lead consumers to take greater care of their product, along with being more tolerant of any of its characterful 'shortcomings'.