3 Winning Tips From Behavioural Economics

Some winning tips for brands looking to benefit from behavioural economics.

1. People love winning

Windfalls, bonuses, ‘extra for nothing’ are more valuable than anything to people – and often get reinvested. Our work on gambling, as well as promotional effectiveness shows that paying for things with “free money” is less painful and less risky. This is why free trials work.

2. Too much choice loses sales

People find it harder to buy when there are too many choices. Not only is navigation difficult (and new products struggle to stand out), but more options increase the risk of bad decisions in the mind of consumers. Too much choice therefore increases the potential for pain so reduce the options wherever possible.

3. Visible value ‎wins hearts and minds

Make the deal or the price seem a bargain. People make relative price judgements but don’t always buy cheapest. It’s true that products can be reassuringly expensive, but it’s often the second most expensive one that wins – it’s as good as ‎a deal because the saving vs the best is so visible.

What we recommend…

  • Recognise that people act fast, and don’t just make rational choices.
  • Always test different options to see what works, especially when it comes to language and visuals.
  • Work out the reasons behind choice making through observation and analysis – asking consumers ‎probably won’t give you the answer.

Feel free to get in touch for more winning tips from behavioural economics.

 

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