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This pointless change boosted sales by 10% | Nudge Newsletter

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...

Six 1-Min Tips Read online I've just spent two days traveling from London to Valencia by train. Over the 48 hours, I saw a lot of crap messaging. The worst offender = Valencia tram ticket machine. Look at the image and ask yourself, how do I activate my ticket? A day later, I discovered it's the big red circle to the left. I believe that almost every message could be improved by behavioural science. I've collected six successful messages with BS principles behind them to prove my point....

Give Bonuses Upfront? Read online What would happen if bonuses were paid upfront? Almost every company pays out bonuses AFTER targets are hit. But why don’t companies pay bonuses BEFORE and withdraw the money if targets are missed? I accept that it could be a logistical challenge, but the potential benefits are huge. On page 71 of The Influential Mind, Tali Sharot¹ shares an eye-opening study. One group of teachers were given $4,000 and told that the money would be taken away if their...

Never Lead With Negativity Read online Last week, a student enrolled in the Nudge Unit asked me: Should I show my negative reviews? The answer is yes but with a heavy caveat. Studies show that consumers prefer a 4.8-star rating to a 5-star rating¹. The 4.8 rating feels more believable and trustworthy. So, you'll need to include a few negative reviews. In fact, an analysis of New York Times book reviews found that negative reviews increased sales by 45%² for unknown authors. A poorly reviewed...

Me talking at iMark conference.

Distinct But Not Different Read online Last week, I gave a keynote speech in Reykjavík for the ÍMARK conference. Want me to speak at your event? Email me (I'll give you mates' rates) I spoke about standing out and why marketers are obsessed with differentiation. It all starts with the Von Restorff effect. Distinct images stick in our minds 👇 Distinct items stand out in our minds. Not only are distinct things 30x¹ more memorable, they bend our perception. That's why the heavy metal band Party...