Whatwe

have learned?

• “More work” for customers

• Look outside to other people in uncertainty

• Imagination: people crazily calling

• Social proof

Your heritage is vandalized everyday by theft losses of

petrified wood of 14 tons a year, mostly, a small piece at a time.

Persuasion Can Backfire

300 California households Their weekly energy use recorded

End of each week Average of the neighborhood is hung on the front door of each one

Houses that use more energy than average Reduced their usage by 5.7%

More interesting…

Houses that use less energy than average Increased their consumption by 8.6%

This is called “magnetic middle” effect Regardless of their socially desirable or undesirable ways

Houses tend to stay in line with the norm

Avoiding the “Magnetic Middle”

How to avoid the magnetic middle and tell “already below usage average” houses that they are ok?

Along with the average, now they put also a or along with the neighborhood average.

If they are using more than average, it is , else

And the results…

Houses with still reduced their energy usage.

Houses with stayed in the same level Didn’t increase their usage

To avoid the magnetic middle, we should convey approval for desirable actions.

“Magnetic Middle” Examples

In a company, if we say: “Average employee arrives late for work 5.3% of the time.”

The late-comers will try to adapt themselves.

But the early-comers will also try to adapt themselves.

We should praise early-comers to avoid this.

In conclusion… To prevent a good apple from getting spoiled by a bunch of bad

ones, remember to show your appreciation for it.

Offering more will make them want less

Company offered retirement programs to their 800.000 workers.

For every 10 additional funds offered as an option

Participation rate of the employees dropped by 2%

Specific number: 2 funds

Participation: 75%

59 funds

Participation: 60%

Offering more will make them want less 2

Jam kiosk in a supermarket

Customers are offered with 6 flavors

30% bought jam

24 flavors

3% bought jam

There may be exceptions Ice cream stores etc.

Where people specifically go for a large number of variety.

Bonus to Onus

What do you think of gifts given with purchasing a product? The gift is obsolete or out-of-style

The gift is junk

The gift is not valuable, otherwise they wouldn’t give it for free

A bonus gift is given with a featured liquor A pearl bracelet

Two groups of people are asked to evaluate the pearl bracelet’s cost

1) as a standalone product

2) as the gift with the featured liquor

People are willing to pay 35% less in second condition.

If you sell a service independently, and give it for free along with another service

Think again about its value in customers’ eyes

Bonus to Onus Examples

Instead of saying “Receive free break inspection”

Say “Receive 200$ break inspection at no cost to you”

Instead of saying “Send your children to this free after-school club”

Say “This after-school club would cost you 2000$ if your children are in a

private school.”

Increasing Sales of an Old Product

People “compromise choices” What they need at minimum vs. what they could spend at maximum

If offered two products (A=$1000, B=1500$) Often go for the less-expensive one: A

However, if a third one is offered, more expensive then these two (C=$2000)

This time, they go for the second one: B

Which is not the highest product any more

Increasing Sales of an Old Product -Example

Williams-Sonoma sells bread-making machines

There was a best selling one (Model A)

They introduced a far-more-superior new product (Model B) Which has more functionality,

And more expensive

Model A sales nearly doubled.

Increasing Sales of an Old Product -Practical

If you are going to an educational conference in a cruise ship And want to stay in a room with a window

Don’t just go to your supervisor and ask for a room with a window

Go with a set of alternatives, where windowed room is the second best one

A room without a window ($500)

A room with a window ($800)

A room with balcony ($1300)

You will most likely get the room with the window among these choices

The choice is usually Not the highest, but the one before.

Effect of Fear

Students are given a pamphlet detailing a tetanus infection. With/without frightening details

With/without specific plans of how to arrange to get a tetanus injection

High fear motivated the students to get tetanus injection only if There is a specific plan attached to it.

Just “fear” paralyzes students not to take any action

Always present a solution along with a fear

The Renowned Post-it Note

A survey sent out to people

These are the options A) One with handwritten sticky note on the cover, requesting the

completing of the survey

B) One with similar handwritten message, but this time on cover page

C) One only with the cover and survey alone

The results (completion ratio): A: 75%

B: 48%

C: 36%

Is it because these post-it notes are so attention-grabbing with their colors?

The Renowned Post-it Note –cont’d

A new survey

With these options: A) One with a handwritten request on a Post-it note

B) One with an empty Post-it note

C) One with no Post-it note

And the results: A: 69%

B: 43%

C: 34%

So the Post-it itself is not the main factor.

It is the personal touch and extra effort that does the trick.

This is called “reciprocity” “You did something special for me, I didn’t forget it”

Reciprocity

The more personal your requests are, The more detailed, effortful, attentive replies you will get.

If you are sending a survey out, Don’t be too lazy and put your recipient name in the request.

Even ask some personal questions to him first.

Your response rates will be higher.

An ounce of personalized extra effort Is worth a pound of persuasion.

Mints in a Basket

Restaurants are giving mint or chocolate on a silver platter along with the bill

How do you think this effects the tip they give?

An experiment in a restaurant. 1) No candy with the bill

2) A single piece of candy with the bill

Modest increase in tips: 3.3%

3) Add two piece of candies with the bill Increase tips 14.1%

Reciprocity: The more we are given, the more we give.

Mints in a Basket – cont’d

Another option: Gave the customer one piece of candy

And after slightly leaving the table, the server just turns back

Reach into his pocket

Place a second candy on the table

The meaning: “….oh, for you nice people, here is an extra candy each.”

The result: 23% increase in tips

Three Factors to Make Something More Persuasive

1. Significance 1 candy is normal, but 2 candies are significant

2. Personalized The handwritten post it notes are specific to each person

3. Unexpected The last candy from the pocket wasn’t something the customer

expects

No Strings Attached

Back to our towel reuse example

Let’s apply reciprocity principle to our environment giving example

So instead of saying “If you reuse towels, we will donate some amount to this fund”

We can say “We had already donated some amount to this fund for you. By reusing towels, you be a part of this donation.”

Something is given first, with no strings attached.

Then, we can ask the customer to cooperate in this effort by reusing towels.

By just changing the strategy and our signs like this, Towel reuse increased 45%.

One Small Step to A Giant Leap

Imagine: Someone from local Road Safety Committee

Wants to put a large, unsightly sign to your lawn

Stating “DRIVE CAREFULLY”

Their workmen will do all the job.

How would you react?

17% agreed to that in a posh neighborhood.

But at the end, we will see a 76% agreement after a couple tweaks.

One Small Step to A Giant Leap – cont’d

Two weeks before, residents are asked to Display a very small sign in their window

Saying: “BE A SAFE DRIVER”

Almost all residents agreed to that.

Two weeks later, they were asked the same question with the same large billboard.

Now 76% agreed to put the billboard.

What happened?

Foot-in-the-door Technique

After agreeing with the small request, They see themselves as a part of the cause now.

They think they are concerned citizens about this safe driving issue.

When we ask them about bigger billboards, They feel acting consistently with their previous behavior

As concerned citizens.

General idea is: “Pave the way for full-line by starting small…”

Foot-in-the-door Technique Example

In sales business, one person is a prospect if they have never bought anything yet.

But when they buy a small stuff, they are now customers.

If you are sending out surveys, You can start with a smaller survey first.

Then they will do the bigger survey with pleasure.

Foot-in-the-door Technique Survey

A survey in the house of someone. 5 or 6 man will arrive.

In 2 hours, they will enumerate all households you have.

They will have full freedom to move in your house.

Then, this info is used in the writings of the reports for our public service publication.

A bizarre request, isn’t it?

But 22% of households agreed.

Let’s increase this number.

Foot-in-the-door Technique Survey – cont’d

Three days before the request: A call is placed to households, and said:

If they want to answer a few questions about which household products they use.

For their guide to have report about this.

Would you be willing to participate?

Most agreed.

Then three days later, 53% agreed with the previous bizarre request.

A small but realistic goal finally can lead to bigger and bizarre goals.

Confucius: “A journey of a thousand miles begins with a single step”

Labeling Technique

When a customer buys a plane ticket from company A: A representative from company A tell this to customer:

“We know you have many airlines to choose from, so we thank you for choosing ours.”

Reminding the customer that he selected company A for a reason, even though there may not be.

Similar lines: “I know there is good in you”

“You can do this, like as you did many times before”