Category: Conversion

💎 On the unintended consequence of banning things making them more desirable (changing our perception of them)

The second reaction to the the law was more subtle and more general than the deliberate defiance of the smugglers and hoarders. Spurred by the tendency to want what they could no longer have, the majority of Miami consumers came to see phosphate cleaners as better products than before. Compared to Tampa residents, who were not affected by the Dade County ordinance, the citizens of Miami rated phosphates detergents as gentler, more effective in cold water, better whiteners and fresheners, more powerful on stains. Affect passage of the law, they had even come to believe that phosphate detergents poured more easily than did the Tampa consumers.

Excerpt from: Consumer Reaction to Restriction of Choice Alternatives by Michael Mazis and Robert Settle

💎 On how little shoppers notice when in store (sleep shopping)

One successful example was Sainsbury’s in 2004 who realised much supermarket shopping was done in a daze. “Sleep shopping” as they termed it. Shoppers were buying the same items week in, week out — restricting themselves to the same 150 items despite there being 30,000 on offer.

AMV BBDO, Sainsbury’s creative agency, went to great lengths to dramatise the extent of sleep shopping. They hired a man dressed in a gorilla suit and sent him to a Sainsbury’s to do his week’s shopping. They questioned shoppes as they were leaving the store and a surprisingly low percentage had noticed him. When shoppers are on autopilot it’s hard to grab their attention.

Excerpt from: The Choice Factory by Richard Shotton

💎 On second-order social intelligence (and the dangers of discounting)

The following is a perfect illustration of the tendency of modern business to pretend that economics is true, even when it isn’t. London’s West End theatres often send out emails to people who have attended their productions in the past, to encourage them to book tickets, and it was the job of an acquaintance of mine who worked as a marketing executive for a theatre company to send out these emails. Over time, she learned something that defied conventional economic rules; it seemed that if you send out an email promoting a play or musical, you sold fewer tickets with the email. Conversely, offering tickets at full price seemed to increase demand.

According to economic theory, this makes no sense at all, but in the real world it is perfectly plausible. After all, any theatre selling tickets t a discount clearly has plenty to spare, and from this it might be reasonable to infer that the entertainment on offer isn’t all that good. No one wants to spend £100-£200 on tickets, a mean, car-parking and babysitting, only to find that you would have had more fun watching television at home; in avoiding discounted theatre tickets, people are not being silly – they are showing a high degree of second-order social intelligence.

Excerpt from: Alchemy: The Surprising Power of Ideas That Don’t Make Sense by Rory Sutherland

💎 On how scarcity of goods and exclusivity of information significantly increases sales (a double whammy)

After we talked in my office one day about scarcity and exclusivity of information, he decided to do a study using his sales staff. The company’s customers—buyers for supermarkets or other retail food outlets—were phoned as usual by a salesperson and asked for a purchase in one of three ways. One set of customers heard a standard sales presentation before being asked for their orders. Another set of customers heard the standard sales presentation plus information that the supply of imported beef was likely to be scarce in the upcoming months. A third group received the standard sales presentation and the information about a scarce supply of beef, too; however, they also learned that the scarce-supply news was not generally available information—it had come, they were told, from certain exclusive contacts that the company had. Thus the customers who received this last sales presentation learned that not only was the availability of the product limited, so also was the news concerning it—the scarcity double whammy.

The results of the experiment quickly become apparent when the company salespeople began to urge the owner to buy more beef because there wasn’t enough in the inventory to keep up with all the orders they were receiving. Compared to the customers who got only the standard sales appeal, those who were also told about the future scarcity of beef bought more than twice as much.

Excerpt from: Influence: The Psychology of Persuasion by Robert Cialdini

💎 On prioritising tried and trusted findings (over the new and surprising)

But the problem is not just with journalists. The physician John Ioannidis scandalized his colleagues and anticipated the replicability crisis with his 2005 article “Why Most Published Research Findings Are False.” A big problem is that many of the phenomena that bio. medical researchers hunt for are interesting and a priori unlikely to be true, requiring highly sensitive methods to avoid false positives, while many true findings, including successful replication attempts and null results, are considered too boring to publish.

This does not, of course, mean that scientific research is a waste of time. Superstition and folk belief have an even worse track record than less-than-perfect science, and in the long run an understanding emerges from the rough-and-tumble of scientific disputation. As the physicist John Ziman noted in 1978, “The physics of undergraduate text-books is 90% true; the contents of the primary research journals of physics is 90% false.” It’s a reminder that Bayesian reasoning recommends against the common practice of using “textbook” as an insult and “scientific revolution” as a compliment.

A healthy respect for the boring would also improve the quality of political commentary.

Excerpt from: Rationality: What It Is, Why It Seems Scarce, Why It Matters by Steven Pinker

💎 On quality over quantity (in copywriting)

After all, isn’t brevity important? Nobody sits down and reads a great big press ad or an eight-page sales letter. do they? Do they?

Er, turns out they do. And more orders come from the long letter than the short version. More enquiries from the long ad than the short one.

Perhaps the most famous example in press advertising is an ad for Merrill Lynch written by a partner, Louis Engel. Engel was the managing editor at Business Week until he was hired by Charles Merrill, the firm’s founder.

The ad occupied a full page in the New York Times. Seven columns. Tiny type. NO PICTURES. In total, 6,540 words.

It drew 10,000 requests for a booklet mentioned towards the end of the ad (which, incidentally, had no coupon or any other recognizable “response device”).

Excerpt from: Write to Sell: The Ultimate Guide to Great Copywriting by Andy Maslen

💎 On the danger of poorly set targets

Metrics have even shaped literature. When Alexandre Dumas first wrote The Three Musketeers in serialised form, his publisher paid him by the line. Dumas therefore added the servant character Grimaud, who spoke in short sentences, to stretch out the text (then killed him off when the publisher said that short lines didn’t count).

Relying on measurements like clicks or likes can give a misleading impression of how people are truly behaving. During 2007–8, over 1.1 million people joined the “Save Darfur’ cause on Facebook, which aimed to raise money and attention in response to the conflict in Sudan. A few of the new members donated and recruited others, but most did nothing. Of the people who joined, only 28 per cent recruited someone else, and a mere 0.2 per cent donated.

Excerpt from: The Rules of Contagion: Why Things Spread — And Why They Stop by Adam Kucharski

💎 Statisticians, like artists, have the bad habit of falling in love with their models

The second kind of response is at the other extreme. Rather than ignore results, people may have too much faith in them. Opaque and difficult is seen as a good thing. I’ve often heard people suggest that a piece of maths is brilliant because nobody can understand it. In their view, complicated means clever. According to statistician George Box, it’s not just observers who can be seduced by mathematical analysis. “Statisticians, like artists, have the bad habit of falling in love with their models,’ he supposedly once said.

Excerpt from: The Rules of Contagion: Why Things Spread — And Why They Stop by Adam Kucharski

💎 How Smirnoff created the appearance of popularity at launch

PYOTR SMIRNOV came into this world on the eve of the birth of Russian capitalism and, in 1864, employed that capitalist spirit to make what would eventually be the world’s number one selling vodka brand, now known as Smirnoff. Pyotr was the first to use the charcoal filtering process that removes impurities from the grain-neutral spirit. He was also the first to “advertise.”

While organized publicity was still a vague concept, Smirnov shrewdly gathered a group of beggars, offered them a warm meal and plenty to drink at his home, then paid them to pop into Moscow’s major bars demanding Smirnoff. The man was a PR genius far ahead of his time. No wonder he became the official vodka supplier to the tsar in 1886.

Excerpt from: The 12 Bottle Bar: Make Hundreds of Cocktails with Just Twelve Bottles by David Solmonson and Lesley Jacobs Solmonson

💎 On safety measures causing people to take more risks

Economists call this excessive risk-taking when you know you’ll be bailed out ‘moral hazard’. To reduce moral hazard on the road, the economist Gordon Tullock once argued that instead of mandating seat belts, the government should require large spikes to be installed in the centre of steering wheels – known as Tullock spikes. These spikes would make drivers more aware of the danger of driving too fast. The Bank of England doesn’t quite do that.

Excerpt from: Can’t We Just Print More Money?: Economics in Ten Simple Questions by Rupal Patel and Jack Meaning

💎 On the benefit of willing yourself into a state of relative indifference when it comes to negotiations

This is connected with the art of negotiation. The game theorist John Nash demonstrated that protagonists bargain more effectively when they are less needy. The less you fear not getting what you want, the more likely you are to get what you want. The logical conclusion follows: in any negotiation, your best strategy is an internal as well as external question. Can you ‘will’ yourself into a state of relative indifference, and thereby negate anxiety-induced neediness?

Excerpt from: Making Decisions: Putting the human back in the machine by Ed Smith

💎 On the problem with teaser headline (we don’t care)

Which headlines work best?

When a big US advertising agency tested headlines for print ads, they ran the same ad with three different headlines. One delivering news, one promising a benefit and one arousing curiosity, Which do you think out-pulled the others? (The answer’s in the following text box.)

The benefits headline performed best.

When I ask delegates on a writing workshop to vote, they usually go for the teaser headline—the one arousing curiosity. I guess the thinking is, people are naturally curious so if you set them a puzzle, they’ll want to find out the answer. Here’s why that reasoning doesn’t stack up in the real world.

If you write a headline like this one:

Why are freelance copywriters like dried apricots?

Most people’s reaction is, “I don’t know and I don’t care.”

You have to remember that for print advertising, your ad will be nestling among editorial, ie all that stuff your reader paid for and wants to mad. Why should they stop doing what they want to do—reading about cars or hi-fi, for example–just so they can solve your little puzzle? If people want puzzles, they do Sudoku.

If, on the other hand, you write a headline like this one:

How this freelance copywriter can help you double your sales

I think they’ll want to know more.

Excerpt from: Write to Sell: The Ultimate Guide to Great Copywriting by Andy Maslen

💎 On how adding a little bit of effort into learning increases probability of remembering

In one study published in 2014, researchers from Princeton and UCLA examined the relationship between learning and disfluency by looking at the difference between students who took notes by hand while watching a lecture and those who used laptops. Recording a speaker’s comments via longhand is both harder and less efficient than typing on a keyboard. Fingers cramp. Writing is slower than typing, and so you can’t record as many words. Students who use laptops, in contrast, spend less time actively working during a lecture, and yet they still collect about twice as many notes as their handwriting peers. Put differently, writing is more disfluent than typing, because it requires more labor and captures fewer verbatim phrases. tale When the researchers looked at the test scores of those two groups, however, they found that the hand writers scored twice as well as the typists in remembering what a lecturer said.

Excerpt from: Smarter Faster Better: The Transformative Power of Real Productivity by Charles Duhigg

💎 On how, once we decide upon a way of thinking, we struggle to see the other side

One important study of the power of such decision-frames was published in 1984, after a researcher from Northwestern asked a group of participants to list reasons why they should buy a VCR based on their own experiences. Volunteers generated dozens of justifications for such a purchase. Some said they felt a VCR would provide entertainment. Others saw it as an investment in their education or a way for their families to spend time together. Then those same volunteers were asked to generate reasons not to buy a VCR. They struggled to come up with arguments against the expenditure. The vast majority said they were likely to buy one sometime soon.

Next, the researcher asked a new group of volunteers to come up with a list of reasons against purchasing a VCR. No problem, they replied. Some said watching television distracted them from their families. Others said that movies were mindless, and they didn’t need the temptation. When those same people were then asked to list reasons for buying a VCR, they had trouble coming up with convincing reasons to make the purchase and said they were unlikely to ever buy one.

What interested the researcher was how much each group struggled to adopt an opposing viewpoint once they had an initial frame for making a decision. The two groups were demographically similar. They should have been equally interested in buying a VCR. At to very least, they should have generated equal numbers of reasons to buy or spurn the machines. But once a participant grabbed on to a decision-making frame—This is an investment in my education verses this is a distraction from my family

Excerpt from: Smarter Faster Better: The Transformative Power of Real Productivity by Charles Duhigg

💎 On the power of loss aversion in healthcare (increased awareness)

For this reason, if you want to convince someone about something, don’t focus on the advantages; instead highlight how it helps them dodge the disadvantages. Here is an example from a campaign promotion breast self-examination (BSE): two different leaflets were handed out to women. Pamphlet A urged: “Research shows that women who do BSE have an increased change of finding a tumour in the early, non treatable stage of the disease”. Pamphlet B said: “Research shows that women who do not do BSE have a decreased chance of finding a tumour in the early, more treatable stage of the disease.: The study revealed that pamphlet B (written in a “loss-frame”) generated significantly more awareness and BSE behaviour than pamphlet A (written in “gain-frame”).

Excerpt from: The Art of Thinking Clearly by Rolf Dobelli

💎 On giving the story a face (statistics don’t stir us, people do)

In another experiment, psychologist Paul Slovic asked people for donations. One group was shown a photo of Rokia from Malawi, an emaciated child with pleading eyes. Afterward, people donated an average of $2.83 to the charity (out of $5 they were given to fill out a short survey). The second group was shown statistics about the famine in Malawi, including the fact that more than three million malnourished children were affected, The average donation dropped by 50%. This is illogical: you would think that people’s generosity would grow if they know the extent of the disaster. But we do not function like that. Statistics don’t stir us; people do.

The media have long known that factual reports and bar charts do not entice readers. Hence the guideline: give the story a face.

Excerpt from: The Art of Thinking Clearly by Rolf Dobelli

💎 On the more we see a statement, the more likely we are to believe it’s true (illusion-of-truth effect)

Another real-world manifestation of implicit memory is known as the illusion-of-truth effect: you are more likely to believe that a statement is true if you have heard it before – whether or not it is actually true. In one study, subjects rated the validity of plausible sentences every two weeks. Without letting on, the experimenters snuck in some repeat sentences (both true and false ones) across the testing sessions. And they found a clear result: if subjects had heard a sentence in precious weeks, they were more likely to now rate it as trie, even if they swore they has never heard it before.

Excerpt from; Incognito: The Secret Lives of the Brain by David Eagleman

💎 On the power of accountability (to reduce littering)

A writer at out agency, Rob DeCleyn, found another great example of choice architecture in his local paper.

A village in Kent had a problem with litter.

Sweet wrappers, crisp packers, soft drink cans and bottles were strewn all over the streets.

But the local shopkeeper didn’t complain or nag the children.

He just wrote their name on the crisp and sweet packets when they bought them.

That’s all, just the child’s name.

And the litter problem cleared up almost immediately.

That’s choice architecture.

The children could still choose to throw their wrappers in the street.

They didn’t have to put them in the litter bin.

The only difference was that now everyone would know whose litter it was.

Excerpt from: One Plus One Equals Three: A Masterclass in Creative Thinking by Dave Trott

💎 On reducing anti-social behaviour (by making the alternatives more fun)

[…] in 2004, Preston council in Lancashire started to use boards with a peelable plastic film that could be cleaned every day and announced that the board helped reduce gum litter in the town by nearly 80 per cent. In the first year of their use Luton, Bedfordshire, the boards collected in excess of 75,000 pieces of used gum would otherwise have probably ended up on the pavement.

Excerpt from: One Step Ahead: Notes from the Problem Solving Unit by Stevyn Colgan

💎 On how poorly set targets lead to unintended consequences (Dead Sea scrolls to company boards)

In 1947, when the Dead Sea scrolls were discovered, archaeologists set a finder’s fee for each new parchment. Instead of lots of extra scrolls being found, they were simply torn apart to increase the reward. Similarly, in China in the nineteenth century, an incentive was offered for finding dinosaur bones. Farmers located a few on their land, broke them into pieces and cashed in. Modern incentives are no better: company boards promise bonuses for achieved targets. And what happens? Managers invest more energy in trying to lower the targets than in growing the business.

Excerpt from: The Art of Thinking Clearly by Rolf Dobelli

💎 On communicating risks to others to change behaviour (are anti-drugs ads too formulaic?)

Public-education films in the rich world have historically focused on the risks to health caused by taking drugs. Several decades later, those campaigns don’t seem to have made much of an impact—and that is not surprising, given that the chances of dying of an overdose are fairly slim. The truth is that buying and taking illegal drugs probably won’t kill you. But it may very well kill someone else. Cocaine, for instance, is manufactured and exported exclusively by cartels that use murder and torture as part of their business model.

Excerpt from: Narconomics: How to Run a Drug Cartel by Tom Wainwright

💎 On the balance between too much and too little choice (the inverted U-curve)

Take a simple study on pens led by Avni Shah and George Wolford, psychologist at Duke University and Dartmouth College, respectively. The scientists found twenty different pen options, all of which cost between $1.89 and $2.39 and contained black ink. The subjects were told that the pens cost about $2, but that they could purchase any of them for a special discounted rate of $1.

Here’s where things get interesting. At first glance, offering people more pens might seem like a good thing, since they can find the pen that best suits their needs. Some people like ballpoint pens, others prefer roller-balls, or just care about the texture of the grip. Sure enough, offering people more pens led to a higher percentage of people buying pens, at least at first. When only two pens were offered, 40 percent of students bought one. However, when there were ten pens to consider, 90 percent of people found one they liked enough to buy.

But now comes the inverted U-curve—when more than ten pens were offered, people became much less willing to choose any pen at all. The drop-off was steep: when there were sixteen different pens to choose from, only 30 percent of subjects bought one.

Excerpt from: The Smarter Screen: Surprising Ways to Influence and Improve Online Behavior by Shlomo Benartzi and Jonah Lehrer

💎 On consumers become less price sensitive when spending with credit card (we treat physical and digital differently)

Want proof? Consider an experiment conducted several years ago by Drazen Prelec and Duncan Simester, marketing professors at the Massachusetts Institute of Technology in Cambridge, Massachusetts. The pair organized a real-life, sealed-bid auction for tickets to a Boston Celtics game (this was during the Larry Bird, Kevin McHale, Robert Parish era, so the tickets were especially valuable). Half the participants in the auction were informed that whoever won the bidding would have to pay for the tickets in cash (although they had a day to come up with the funds). The other half were told that the winning bidder would have to pay by credit card. Prelec and Simester then averaged the bids of those who thought they would have to pay in cash and those who thought they could pay with a credit card. Incredibly, the average credit card bid was roughly twice as large as the average cash bid.

Excerpt from: Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the New Science of Behavioural Economics by Gary Belsky and Thomas Gilovich

💎 On consumers being price sensitive in some areas but price blind in others (printer ink versus champagne)

Just setting the printer default to “draft” quality would save consumers hundreds of dollars a year. Yet few consumers do. Though many companies still sell cheaper ink refills, refills account for only 10 to 15 percent of the market. That means that 90 percent of printing is still done using ink that, according to the PC World analysis, costs $4,731 per gallon. You might as well fill your ink cartridges with 1985 vintage Krug champagne.

Excerpt from: The Price of Everything: The True Cost of Living by Eduardo Porter

💎 On our tendency to make decisions or judgements based on what we can remember easily (availability bias)

By behavioural psychologists Daniel Kahneman and Amos Tversky in 1973. In their classic experiment, they asked people to listen to a list of names and then recall whether there were more men or women on the list. Some people in the experiment were read a list of famous men and less famous women, while others were read the opposite. Afterwards, when quizzed by the researchers, individuals were more likely to say that there were more of the gender from the group with more famous names. Later researchers have linked this effect to how easily people could retrieve information: we tend to over-rely on what we can remember easily when coming to decisions or judgements.

Excerpt from: The Perils of Perception Why We’re Wrong About Nearly Everything by Bobby Duffy

💎 On thoughts and feelings following behaviour rather than the other way round (Benjamin Franklin effect)

Eighteenth-century American polymath and politician Benjamin Franklin was once eager to gain the cooperation of a difficult and apathetic member of the Pennsylvania state legislature. Rather than spend his time bowing and scraping to the man, Franklin decided on a completely different course of action. He knew this person had a copy of a rare and unusual book in his private library, and so Franklin asked whether he might borrow it for a couple of days. The man agreed and, according to Franklin, ‘When we next met in the House, he spoke to me (which he had never done before), and with great civility; and he ever after manifested a readiness to serve me on all occasions.’ Franklin attributed the success of his book-borrowing technique to a simple principle: ‘He that has once done you a kindness will be more ready to do you another than he whom you yourself have obliged.’ In other words, to increase the likelihood of someone liking you, get them to do you a favour. A century later, Russian novelist Leo Tolstoy appeared to agree: ‘We do not love people so much for the good they have done us, as for the good we do them.’

Excerpt from: 59 Seconds: Think a little, change a lot by Richard Wiseman

💎 On removing anxieties about buying a product (Dr Pepper)

But weirdly, I’ve never asked for Dr Pepper in a bar because you know they’re not going to have it and there’s that mild embarrassment about asking for something they haven’t got, and feeling like a bit of a twat. However, if you ask for Coke and they don’t have it, it’s their fault not yours, the whole dynamic’s completely different. The only place that it’s socially acceptable not to sell Coke is a total health farm weirdo place full of organic produce, and even then it’s a bit irritating. They’ll have loads of those Fentimans Victorian-style lemonades, and even then it’s a bit irritating—come on, just sell Coke for crying out loud! Everywhere else has to sell Coke and it’s their fault if they haven’t got it. An aversion to little things like minor forms of embarrassment stop me from being a maximiser and asking for Dr Pepper, and I’ll always ask for Diet coke if I’m in a pub or a bar unless they have some massive sign saying ‘We Sell Dr Pepper’, in which case I would obviously ask for Dr Pepper.

Excerpt from: Rory Sutherland: The Wiki Man by Rory Sutherland

💎 On how our emotions lead us to become less sensitive to differences in the magnitude of numbers (buyer beware)

Research scientists Christopher Hsee and Yuval Rottenstreich have asserted that people’s judgement and decision-making abilities can be impaired by an event such as the SARS outbreak, not because it induces negative feelings, but rather because it is an emotionally charged issue, regardless of the nature of the feelings it produces. Specifically, they argue that emotions lead people to become less sensitive to differences in the magnitude of numbers; they’re more likely to pay attention to the simple presence or absence of an event. In business terms, what this means is that people are more likely to pay attention to the simple presence or absence of an emotion-laden offer than to the specific numbers involved.

To test this idea, the researchers asked participants to spend a brief period of time thinking about some issues either emotionally or non-emotionally. Shortly afterwards, these research subjects were told to imagine that someone they knew was selling a set of Madonna CDs. Half of them were told that there were five CDs in the bundle, whereas the other half were told that there were ten. Participants were then asked to report the maximum amount they’d be willing to pay for the bundle.

The researchers found that those who had earlier practised thinking in an unemotional manner were willing to pay more for the set of ten CDs than for the set of five, which is quite rational. More interestingly, however, those who had earlier practised thinking in an emotional manner were less sensitive to the difference in the number of CDs, reporting that they would pay roughly the same for each set.

The results of this research suggest that emotional experience can have a detrimental impact on decision-making, perhaps allowing you to be persuaded by an offer when you shouldn’t be.

Excerpt from: Yes! 50 Secrets from the Science of Persuasion by Noah Goldstein, Steve Martin and Robert Cialdini

💎 On the power of the internet to remove our inhibitions (it doesn’t judge)

The researchers were able to conduct a field experiment into how the introduction of technology changed the content of customer orders. According to the data, online customers chose pizzas that were more complicated and expensive, containing 33 percent more toppings and 6 percent more calories. Instead of just ordering a pepperoni pizza, they chose pies that featured highly unusual toppings, such as “quadruple bacon” or ham, pineapple, and mushroom. (When orders were placed online, bacon sales increased by 20 percent.)

Excerpt from: The Smarter Screen: Surprising Ways to Influence and Improve Online Behavior by Shlomo Benartzi and Jonah Lehrer