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Apr
18

Don't ignore this, better to embrace it...

 Marketing


I’m talking about Human Nature.

Dr Robert Cialdini has written some excellent books on the subject and they open a whole new window to marketing to your database.
 
I know, I know... I’m using the ‘d’ word again but it still amazes me how many SMEs don’t have or work their database.

Anyway... Cialdini believes that influence is a science so imagine this situation 

A car wash company does a promotion... it’s pay for eight washes and get one free.

They print two batches of coupons...

Coupon 1 is eight washes represented by eight panels and a ninth panel marked ‘free’. Each panel will be ticked or scratched when used.

Coupon 2 is eight washes represented by ten panels and an eleventh panel marked ‘free’ to be ticked or scratched when used. However, with this coupon the first two panels are already ticked or scratched so there’s only eight to buy just like Coupon 1.

Which coupon performed better?

You’re smart enough to know that it was of course Coupon 2 or I wouldn’t be telling you this story.

Now if you think about this, you’ll realise that you can take this research and use it in any continuity programme... for books, coffee, software, clothing... whatever.

The people who received the coupon with the first two crossed off were significantly more likely to complete the remaining eight. In fact the performance of Coupon 2 was almost double Couple 1 and it was also filled out a lot quicker.

Why? Well... there’s two reasons. 

First, is our human need for closure. By starting them with two panels crossed off they were started ‘down the line’ and to get closure they needed to complete the other eight.

In contrast, if they had just been given Coupon 1 then they were not already involved and therefore there was no need to close the loop.
 
Now the other reason is that they were given a gift... in fact two gifts because two panels were pre-scratched. Human nature comes into play again because it dictates that we should give back to those who give to us. Hence, there was an immediate obligation.

In a nutshell, there was no risk that the people needed to start the process themselves because they were immediately involved already ‘down the line’ with a commitment to continue because they had received two things already for free. 

The extra twist is that typically we don’t want to lose an advantage that we already have... like the two panel head start.

As always, you are welcome to post your questions and comments below


Keep your powder dry,

Warren Cottis

PS. Are you receiving my weekly marketing ezine?
 
Comments
Thanks Milan

It's great to have your feedback

cheers

Warren
Posted by : warren - Wednesday, April 20, 2011
What an excellent article, well done, Warren!
Posted by : Milan - Tuesday, April 19, 2011
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