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.
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.
Conversion
Salience
Our choices are determined by the information we're shown
What info we decide to surface visually has a powerful effect on peoples’ decisions. The same is also true for what we choose to hide.
For instance, if I wanted to design a work environment where people ate more fruit, I could buy bananas and apples but store them in the fridge, out of view.
But this would have what we call “low salience”, or a low likelihood of being seen.
Instead, to boost fruit consumption further, we’d want to increase Salience.
So now, instead of hiding the fruit in the fridge, we put it in large colourful bowls in central, highly visible areas of the office in eye line and within arm’s reach.
Now the fruit have “high salience” and are much more likely to be eaten.
Note that this also has second order effects; more salience from the fruit bowls means more people eating fruit, creating a powerful salience cycle.
What do you want people to do more or be more aware of? How can you increase its salience next to other things?
Another strategy is to remove other things around it to increase salience in relative terms. So in the fruit example, we might want to remove the coffee machine to give the bowls greater salience.
What info we decide to surface visually has a powerful effect on peoples’ decisions. The same is also true for what we choose to hide.
For instance, if I wanted to design a work environment where people ate more fruit, I could buy bananas and apples but store them in the fridge, out of view.
But this would have what we call “low salience”, or a low likelihood of being seen.
Instead, to boost fruit consumption further, we’d want to increase Salience.
So now, instead of hiding the fruit in the fridge, we put it in large colourful bowls in central, highly visible areas of the office in eye line and within arm’s reach.
Now the fruit have “high salience” and are much more likely to be eaten.
Note that this also has second order effects; more salience from the fruit bowls means more people eating fruit, creating a powerful salience cycle.
What do you want people to do more or be more aware of? How can you increase its salience next to other things?
Another strategy is to remove other things around it to increase salience in relative terms. So in the fruit example, we might want to remove the coffee machine to give the bowls greater salience.
Over 10 days, millions of people using online ticket marketplace Stubhub were put into two groups, where 15% ticket fees were either made salient up front during ticket browsing, or hidden until checkout.
Results found that for those with delayed salience of the fee, revenue increased by 21%, with a quarter of this due to higher priced tickets being bought.
What is seen is what is done
Surfacing key information in a timely fashion can prompt us to do more of what we aspire to. For instance, Amazon have redesigned their Kindle so that when it's not in use, the screensaver becomes the cover of the book you're currently reading. This acts as a salient reminder to read as one notices the Kindle throughout the day. We can use the same approach to boost healthy eating, having a bowl of fruit on the kitchen table over one filled with salty cashews. What do you want users to do more of? How do you want them to feel? What unique or delightful features can you surface that will help inspire action and make Tiny Habits that much more likely to form?
More knowledge isn't necessarily better
There's a trade-off between what's presented to us now and making good decisions for our future. For instance, cryptocurrency exchange Coinbase choose to omit the % gained or lost from one's investments. Research shows that if they instead showed this, people may incorrectly sell coins that have increased in value, while keeping coins that have dropped in value, known as the Disposition Effect.
Differentiate by removing information
Whereas knowledge can be power, it can also demotivate. For example, weight loss scales Shapa does away with the number telling you how much you weigh, instead providing 5 colour bands denoting averaged performance. Omitting the number shifts us away from short term fluctuations in weight that can lead to feelings of failure causing us to give up. What information or options could you hide that could otherwise lead users to short term or harmful outcomes? What can you remove that could confuse or overwhelm?
Delayed salience can trigger shock
Also consider the ethical implications of hiding key information, as in the study above. In this case, any reactance felt will be relative to the proportion of the extra fees incurred, customer expectations, industry norms and how frequent the transaction is. Hidden fees on more regular transactions like grocery shopping will be subject to higher levels of reactance than one-offs like a car purchase. There is an art to surfacing such painful information at the correct time in order to generate a sale. Try adding an explanation of why the fee exists to reduce drop-off, like Airbnb do.