Balance 25 cents and win $100 | Nudge Newsletter


Variable Rewards

Read online


This video of a smart gas station owner went viral a couple of months back.

The video shows dozens of customers failing to balance 25 cents on a lemon.

A chance to win $100 is a carrot large enough to make customers bet.

It shows something that many marketers have known for decades.

We love a gamble.

People prefer a gamble

In 2025, researchers Gaertig and Simmons offered either a gamble or a certain reward to hundreds of participants¹.

Some were offered a 10% chance to win a free hotel stay.

Others were offered a 10% guaranteed discount per night.

Turns out, participants were 92.6% more likely to choose the gamble than the certain reward.

We're drawn towards variable rewards. Rather than offering a small discount, give your customers the chance to gamble instead.


There are 550+ tips like this in the Nudge Vaults.

I'm thinking of a number between 1 and 10.

For a chance to win 20%, respond to this email and guess which number I'm thinking.

Get it right, and you'll win 20% off.


Cheers,

Phill

¹Gaertig, C., & Simmons, J. (2025). Why (and when) are uncertain price promotions more effective than equivalent sure discounts? Journal of Consumer Research.

As a behavioural science practitioner, I believe in the peak-end rule.

Tune into Nudge | Advertise with Nudge | Unsubscribe

Nudge Newsletter

I spend 18 hours each week turning marketing psychology into readable newsletters.

Read more from Nudge Newsletter

Adobe Summit London 2026 Read online Last week, I had great fun attending the Adobe Summit London 2026. Partly great hearing about the latest innovations in AI and partly great catching up with the friendliest man in marketing, Joe Glover. Two stats from the opening keynote that stuck with me. 1: Organic web search traffic is down 20% 2: Conversion rate for AI search is 42% higher then before It’s a reminder that so many of the norms of marketing have fundamentally changed. I remember my old...

Transparency Read online For his book Influence, Robert Cialdini went undercover as a waiter at a high-end restaurant. He spent his time shadowing Vincent, who consistently received the largest tips. Turns out, Vincent had a counterintuitive tactic. When it was time for the first person, normally a woman, to order, he went into his act. No matter what she picked, Vincent reacted identically: his brow furrowed, his hand hovered above his order pad, and after looking quickly over his shoulder...

Pratfall Effect Read online A few years back I received this review. It hurt me a bit and knocked my confidence. I was desperate for listeners to leave some positive reviews so others wouldn't see it. I tried to cover it up, but other brands do the opposite. Spa Diner promotes "the worst breakfast one man on Yelp ever had". Snowbird put their 1-star review in a double-page magazine ad. The Antelope pub share their negative reviews on Facebook. This sandwich shop printed out their 1-star...