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Five words that increased sales by 300% | Nudge Newsletter

"I'm A Student Here Too" Read online In 1994¹, researchers asked 100s of college students for charitable donations. All were told to interrupt the students and solicit a donation. But there was a twist. Half were told to make a straightforward request, with no extra commentary. Half were told to emphasise a shared identity, saying "I'm a student here too". The results were astonishing. Only 9.8% of students in the control group made a donation. While 47.1% donated in the variant group, a 3x...

Placebos And Marketing Read online From December 2007 to January 2012, 146 men participated in an eye-opening study¹. All men had persistent knee pain. All had visited public hospitals in Finland and asked for help. Here's where the study started. Half underwent arthroscopic partial meniscectomy (removal of damaged meniscus tissue). That's the appropriate treatment. The other half underwent sham surgery (anaesthesia and incisions but no tissue removed). It was a placebo surgery. The sham...

The Veblen Effect Read online In 2008¹, researchers in California conducted brain scans on wine drinkers. They measured the area of the brain responsible for encoding pleasure. All participants were given an identical glass of wine. However, some were told the wine cost $10. Others were told the wine costs $90. When the participants believed they were drinking an expensive wine, they experienced more pleasure. Taken from the 2008 paper¹ But no one actually drinks wine in a brain scanner. So,...

Effort Boosts Value Read online Last Wednesday, I walked 60.7km to talk at Creator Day 25. I only had one pair of shoes. It took me 12 hours. 3,818 calories. 2 Greggs sausage rolls. And 6 nasty blisters. My day started at sunrise and didn't finish until 6:49 pm. I got through four pairs of socks, got lost twice, and almost gave up. So, why? Why did I do it Effort boosts your enjoyment. I knew the more effort I put in, the more I'd value the talk. That's the IKEA Effect¹. So, I decided, rather...

The Decoy Effect Read online Adding a worthless option could increase your sales. Take this study¹ from the University of Liechtenstein. The researchers showed a representative sample of readers these two book choices: The vast majority of people decided to buy the $10 e-book rather than both the e-book and the hardcover. However, the researchers then tested adding a third decoy option. This option was pointless, offering just the hardcover for $20, yet it altered behaviour. Now, the least...

The Contrast Effect Read online Rosser Reeves, an American ad executive from the 1950s, was eating lunch in Central Park. He and his colleague saw a man begging for money. It was late afternoon, but the beggar hadn't made much money. Reeves told his colleague: “I bet I can dramatically increase the amount of money that guy is raising simply by adding four words to his sign." The colleague agreed, and Reeves introduced himself to the homeless man. He explained that he knew something about...

Titles That Sell Read online Emanuel Haldeman-Julius was an incredibly wealthy book salesman. He didn't write. He resold famous literature to an American audience. Goethe and Shakespeare were printed on cheap paper and sold in big quantities. He sold more than 200 million¹ booklets, each for five cents. Emanuel Haldeman-Julius in the 1930s. Emanuel noticed that some books sold better than others. He hypothesised that buyers judge a book by its title. So, he rewrote the titles of his least...

Expense Boosts Value Read online This quote summarises one of the most overlooked marketing lessons. Rory Sutherland in Alchemy¹ This idea (that expense boosts value) is known as costly signalling. I did a silly, and simple, experiment² to prove it. I showed 200 random Brits an ad for my podcast. 50% saw only the ad. 50% saw the ad superimposed onto a billboard. The billboard signaled expense, and it made Brits 61% more likely to listen. But advertisers can push this further. Rather than just...

Don't Change The Name Read online I shared a (semi) viral post about the WHSmith rebrand a few weeks back. WHSmith, a two-century-old British retailer, was sold. As part of the sale, the name had to change. WHSmith would become TGJones. For non-Brits, this name change is a big deal. WHSmith has been on British high streets for over two centuries. And there are 3 behavioural science reasons why I think this rebrand will fail. 1. Habits In Jan 2009, Tropicana rebranded. Their new sleek design...

Only One Ingredient Read online Popular British supermarket, M&S, launched an eye-catching new product range. Breakfast cereal, with one to six ingredients, listed plainly on the package. It's created to compete against the high UPF alternatives¹. Yet, I think this cereal range will succeed for entirely different reasons. Show your costs In 2020, Harvard researchers² tested the effects of showing a product's costs. Rather than just listing the price, they showed ingredient cost (and profit...