1. Fresh Start Effect – New beginnings encourage people to pursue their goals
This bias is responsible for the whole “New Year, New you” movement. Whether it’s a cliche or not, people want to change at the beginning of every year.
Right NOW (at the end of the year), market your product offering the “New You” solution your product provides.
2. Default Effect – People tend to accept what we are given and stick with what we have
While offering services package, instead of asking if the customer wants the additional services, just include additional, complementary services in the offering, and ask if they want to exclude some of them from the bill.
With this one, you might double or triple your average order value.
3. Labour Illusion – People value things more when they see the work behind them
Build-in Public – constant updates on new features and upgrades to your products or services creates the perception there’s a lot of work put into your business, making it more valuable
4. Humor effect – People remember humorous information better
Humour can increase your conversion rate by 28%Using funny GIFs in your copy, newsletter, or landing page can increase the attractiveness of your product or services.
5. Framing Effect – people decide on options based on how the options are presented
Pricing – “The tool costs $720/year” or “The tool costs $2/day”
6. Decoy Effect – People change their preference between two options when presented with a third option (the decoy) that is “asymmetrically dominated”
Pricing – if you offer just 1 price, a customer has 2 choices: either to buy or not.If you offer 2 choices of pricing, a customer has 3 choices: To buy the cheaper one, the more expensive one, or not to buy.When you add the third pricing option, a much more expensive one, now the second price (the previous expensive one) looks like a bargain.
7. Goal Gradient Effect – The closer to the goal the more motivated people are
Coupon Stamps – whenever a new customer arrives, give them 2 stamps instead of 1. This will give them a little boost to return.
8. Stepping Stones – to embark on a complex journey every step needs to be attainable
When creating a referral program the most important reward is the first one. The first reward has to be both achievable and attractive to motivate people to participate.
9. Inaction Inertia Effect – When missing an offer once you are likely to miss an offer twice.
When people see that you’re giving big discounts frivolously every month or week, they tend to ignore them after a while, because the perceived value for your product is low.
10. Foot-In-The-Door Technique – Getting a person to agree to a large request by their agreeing to a small one first
Upsell whenever you can, but in a friendly, not pushy manner. Last week, I went to McDonald’s with my friend. I was in shock at how effective these self-service kiosks were with upsells! My friend took about 5 upsells and was ecstatic about it
11. Risk Compensation Theory – People tend to be more careful if they feel there is a greater risk if they take a particular action. They are less careful when they feel they’re protected by certain factors.
Outline a clear refund/return policy. By offering a 30-day money-back guarantee encourage people to make business with you.
12. Life Event Effect – people are more likely to change their habits during a major life event
Ads – target people when they move to a new house, start a new job, etc. People are 3 times more likely to switch brands during the major life event
13. Country of Origin Effect – People’s perceptions are influenced by a product’s country of origin labelling
Switzerland is associated with the best watches and swiss army knives in the world. Italy is associated with the best wine, cheese, and olives. Every country is famous for something – use it to your advantage.
14. Storytelling Effect – People prefer and better remember stories than facts alone
In 2009, Rob Walker bought 200 objects from eBay for a total sum of $129. He then asked 200 authors to create a story for each object. Rob then sold those 200 objects with included stories on eBay again. He sold them for $8000. That’s a 6202% increase in value.
15. Primacy & Recency Effect – People remember things that come first and last more clearly
Your first and last impression matters the most. E.g: Provide your best articles when someone signs up for your newsletter. End your newsletter with something witty, funny, unexpecting.
16. Pratfall Effect – If a brand admits its flaws and makes itself vulnerable, we perceive it as more authentic, thus more likeable
There’s a catch to that. Your brand needs to be well perceived in the first place. Then, admitting to your flaws make your brand more authentic. When you’re admitting to your flaws, when your brand is perceived as not reliable, it makes things worse.
17. Cashless Effect – People pay more when they can’t actually see the money
“Buy Now Pay Later” option at the checkout, in the US, increases an average order value up to 50%, decreases cart abandonment by 28%, boosts repeat purchases among first-time customers up to 23%, and reduces sales refunds by 17%.
18. Endowment Effect – Users value something more if they feel it belongs to them
Offer a freemium version of your products. The key is to offer the right features in the free version.You want to offer enough that users experience the best of what it has to offer but hold back enough to make serious users want to upgrade their package.
19. Sensory Adaptation – People ignore the things they get exposed to repeatedly
Instead of a single graphic in ads, provide an ad sequence, that releases each different ad to the user, depending on user actions or timing.
20. Pareto Principle – generally known as the 80-20 rule, states that roughly 80% of the effects come from 20% of the causes
The 80/20 rule can also be applied to the 80/20 rule, which provides an ASTOUNDING revelation:Effort: 20% of 20% of 20% = 0.8%Results: 80% of 80% of 80% = 51.2%In conclusion: over 50% of your results are produced by less than 1% of your effort!!!
50% of your revenue likely comes from 1% of your efforts.50% of happiness likely comes from 1% of your experiences.etc.source for this Pareto structure: Brian Bourque