Author: David Greenwood

💎 On using the rejection-retreat principle to boost sales (start high)

I was walking down the street when I was approached by an eleven- or twelve-year-old boy. He introduced himself and said that he was selling tickets to the annual Boy Scouts circus to be held on the upcoming Saturday night. He asked if I wished to buy any at five dollars apiece. Since one of the last places I wanted to send Saturday evening was with the Boy Scouts, I declined. “Well,” he said, “if you don’t want to buy any tickets, how about buying some of our big chocolate bars? They’re only a dollar each.” I bought a couple and, right away, realised that something noteworthy had happened. I know that to be the case because: (a) I do not like chocolate bars; (b) I do like dollars; (c) I was standing there with two of his chocolate bars; and (d) he was walking away with two of my dollars.

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

💎 On the disease of thinking that having a great idea is 90pc of work (as Steve Jobs notes)

You know, one of the things that really hurt Apple was after I left, John Sculley got a very serious disease. It’s the disease of thinking that a really great idea is 90 per cent of the work. And if you tell all these other people “Here’s this great idea”, then of course they can go off and make it happen. And the problem with that is that there’s just a tremendous amount of craftsmanship in between a great idea and a great product… Designing a product is keeping five thousand things in your brain and fitting them all together.

Excerpt from: Curious: The Desire to Know and Why Your Future Depends on It by Ian Leslie

💎 On wanting what we can’t have (the power of scarcity)

During a famine in 1774, Frederik ordered a national cultivation programme. In a response typical of many towns, the people of Kolberg declared: “The things have neither small nor taste, not even the dogs will eat them, so what use are they to us?”

Frederick’s initial response was more a violent “shove” than a nudge – he threatened to cut the noses and ears off any peasant who did not plant potatoes. However, he soon changed tack. In modern parlance we’d say that he used a bit of “psychology”.

Legend has it that instead of issuing further threats, Frederik ordered his soldiers to establish a heavy and visible guard around the local royal potato fields, yet also instructed them to be deliberately lax in protecting them. At the same time, the local peasants noticed their king’s conspicuous admiration of potato flowers as well as the tubers themselves, and sneaked in to steal and plant the “royal crop”. Within a short time, many potatoes were stolen and soon being widely grown and eaten.

Excerpt from: Inside the Nudge Unit: How small changes can make a big difference by David Halpern

💎 On the importance of providing a backstory to price cuts (plausibility of the deal)

But when Meghan Busse, Duncan Simester and Florian Zettelmayer, academics from MIT and the Kellogg School of Management, investigated they discovered a curious anomaly. In the previous weeks the car companies had been cutting prices so much that the employee discount was generally no better and occasionally more expensive, than existing deals.

The academics hypothesised that it was the price cue, not the price, which mattered. Consumers reacted to the plausibility of the deal rather than the actual discount. When consumers don’t trust brands they treat deals sceptically, but when they’re accompanied by a back story they have more heft.

When you are contemplating promotions don’t rely on an eye-watering discount. Numbers leave customers cold. We’re not natural statisticians – stories move us to action far better.

Excerpt from: The Choice Factory: 25 behavioural biases that influence what we buy by Richard Shotton

💎 On communicating two strong propositions in one ad (is like welding a JCB to a Ferrari)

Whereas with a complicated proposition you dilute and fragment your message.

Less important points don’t add to the communication.

They detract from the most important point.

That’s what the single-minded proposition is all about.

That’s why we need people to make the effort to decide what is absolutely essential.

Not just people who think of what else they can include.

Welding a JCB to a Ferrari doesn’t make a machine that can dig roads at 200 mph.

It makes something that can’t do either job properly.

Excerpt from: Predatory Thinking: A Masterclass in Out-Thinking the Competition by Dave Trott

💎 On the magnetic middle (to reduce energy consumption)

We found that over the next several weeks, those who had been consuming more energy than their neighbours reduced their energy consumption, by 5.7 per cent. Not much of a surprise there. More interesting, however, was the finding that those who had been consuming less energy than their neighbours actually increased their energy consumption by 88.6 per cent. These results show that what most others are doing acts as something of a “magnetic middle”, meaning that people who deviate from the average tend to be drawn towards it – they change their actions to be more in line with the norm regardless of whether they were previously behaving in a socially desirable or undesirable way.

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

💎 On the danger of generalising too far (the dangers of the recovery position)

During the Second World War and the Korean War, doctors and nurses discovered that unconscious soldiers stretchered off the battlefields survived more often if they were laid on their fronts rather than on their backs. On their back, they often suffocated on their own vomit. On their fronts, the vomit could exit and their airways remained open. This observation saved many millions of lives, not just of soldiers. The “recovery position” has since become a global best practice, taught in every first-aid course on the planet. (The rescue workers saving lives after the 2015 earthquake in Nepal had all learned it.)

But a new discovery can easily be generalised too far. In the 1960s, the success of the recovery position inspired new public health advice, against most traditional practices, to put babies to sleep on their tummies. As if any helpless person on their back need just the same help.

The mental clumsiness of a generalisation like this is often difficult to spot. The chain of logic seems correct. When seemingly impregnable logic is combined with good intentions, it becomes nearly impossible to spot the generalisation error. Even thought the data showed that sudden infant deaths went up, not down, it wasn’t’ until 1985 that a group of paediatricians in Hong Kong actually suggested that the prone position might be the cause.

Excerpt from: Factfulness: Ten Reasons We’re Wrong About The World – And Why Things Are Better Than You Think by Hans Rosling, Ola Rosling and Anna Rosling Rönnlund

💎 On changing the name to change support (estate tax or inheritance tax?)

A clear but somewhat narrow majority of Americans today support eliminating the so-called “estate tax,” and a slightly higher percentage would back the elimination of the “inheritance tax,” but more than 70 percent would abolish the “death tax”. Sure, some object that the term “death tax” is inflammatory, but think about it. What was the event that triggered its collection?

Excerpt from: Words That Work: It’s Not What You Say, It’s What People Hear by Frank Luntz

💎 On why the mind is a lot like the human egg (confirmation bias)

The experiments prove that it’s hard to overturn negative opinions. Rejecters of your brand are difficult to convince because they interpret your message through a lens of negativity.

As the legendary stock market investor, Charlie Munger, said:

“The human mind is a lot like the human egg, in that the human egg has a shut-off device. One sperm gets in, and it shuts down so that the next one can’t get in. The human mind has a big tendency of the same sort.”

Excerpt from: The Choice Factory: 25 behavioural biases that influence what we buy by Richard Shotton

💎 On the power of framing your request (how Danny Boyle got 60,000 people to keep a secret)

In a social media-driven and 24-hour news world, how on earth do you give 60,000 people a preview of what millions can’t wait to see… yet manage to persuade them to keep schtum about it for five days? The answer: you choose your words smartly. Danny Boyle, London 2012 Olympics Artistic Director, displayed a genius understanding of both human nature and the power of the right word when he asked the lucky attendees of his Opening Ceremony dress rehearsal to “#SaveTheSurprise”. Because amazingly, everyone did. How different would it have been, though, if instead had Danny asked them to “Keep It Secret”? The words seem so similar. But the canny choice of the word “surprise” rather than “secret” made all the difference. Everyone wants to know and tell a secret. We can’t help ourselves. It’s human nature. But no-one wants to spoil a surprise, or have a surprise spoiled. The persuasive power of the words we choose… Choose them carefully.

Excerpt from: How not to Plan: 66 ways to screw it up by Les Binet and Sarah Carter

💎 On how the act of labelling or branding changes the elements we notice (and don’t) about an experience

Psychologist Franz Epting explained: “We use diagnostic labels to organise and simplify. But any classification that you come up with,” cautioned Epting, “has got to work by ignoring a lot of other things — with the hope that the things you are ignoring don’t make a difference. And that’s where the rub is. Once you get a label in mind, you don’t notice things that don’t fit within the categories that do make a difference.”

Except from: Sway: The Irresistible Pull of Irrational Behaviour by Ori Brafman and Rom Brafman

💎 On reframing the irritating noise of planes flying overhead (get people involved)

When the US Air Force faced opposition to its flying over residential neighbourhoods someone had the bright idea of circulating much more information about the different aircraft being flown. Though that didn’t reduce the noise level, it certainly change the reactions to it – and as any cognitive psychologist will tell you, most perception is interpretive. “Look – it’s the new F15!” feels very different from, “it’s another bloody plane flying overhead”.

As an aside, as battles continue over airport expansion in the UK and elsewhere, I’m inclined to think that a similar techniques might be used to persuade potentially affected residents as to the benefits of a new runway or airport by offering them generous annual vouchers for flights and holidays around the world from the airport. Rather like the US Air Force’s approach, it might dramatically change how you feel about the noise and be more effective than cash alone. “That’s my holiday to Barbados this year!” you’d think as a plane roars over, giving you a personal and positive interest in the outcome of expansion rather than simply seeing it as an irritation.

Excerpt from: Inside the Nudge Unit: How small changes can make a big difference by David Halpern

💎 On why using claimed data in general to understand your audience can be misleading (Facebook likes vs. Spotify streams)

An example from Seth Stephens-Davidowitz illustates the problem. He looked at the gender of Katy Perry Facebook fans and found that they were overwhelmingly female. However, Spotify listening data revealed the gender split was much more balanced: Perry was in the top ten artists for both genders. If the music label used the Facebook data to target their advertising they’d be way out.

Does that mean the new data streams are junk and best ignored?

Not at all. Observed data is an improvement on claimed data, but it’s still flawed. To understand customers we need a balanced approach, using multiple techniques. If each technique tells us the same story then we can give it greater credence. If they jar then we need to generate a hypothesis to explain the contradiction.

Let’s go back to the Katy Perry example. A simple explanation would be that while both genders enjoy listening to her, far more women are comfortable expressing that publicly. If a record label wants to sell Katy Perry songs or encourage streaming, then Spotify data would be ideal. However, if they want to promote her concerts, it would be better to use the Facebook numbers. Neither data set is right in any absolutist sense – they are right in certain circumstances.

Excerpt from: The Choice Factory: 25 behavioural biases that influence what we buy by Richard Shotton

💎 On reaching people early before their habits harden (if you want to change behaviour)

In the policy world, a good example comes from a programme known as the Nurse Family Partnership (NFP), originally developed and tested by David Olds in the USA. The programme involves a nursing practitioner befriending and supporting a young at-risk mother from the pre-natal stage through the child’s second birthday. It is a well-validated programme that has been shown to reduce violence and abuse of the child, improve educational attainment and even reduce the child’s rate of offending at the age of 15 compared with children from a similar background who did not participate in the programme (at least in the USA).

A less well known but fascinating detail of the NFP is that Olds noted when we introduced it into the UK was that the programme worked much better with mothers having their first child. This isn’t a marginal detail. It is an expensive programme, and so it is incredibly important to make sure that is focuses on the right people, and at the right time, to whom it will make a difference – young, first time mothers.

In general, we might take as an opening mantra something like “learn it first, learn it right”

Excerpt from: Inside the Nudge Unit: How small changes can make a big difference by David Halpern

💎 On why TED talks are 18 minutes long (long enough to be serious and short enough to hold people’s attention)

It is long enough to be serious and short enough to hold people’s attention. It turns out that this length also works incredibly well online. It’s the length of a coffee break. So, you watch a great talk, and forward the link to two or three people. It can go viral, very easily. The 18-minute length also works much like the way Twitter forces people to be disciplined in what they write. By forcing speakers who are used to going on for 45 minutes to bring it down to 18, you get them to really thing about what they want to say. What is the key point they want to communicate? It has a clarifying effect. It brings discipline.

Excerpt from: TED Talks: The official TED guide to public speaking by Chris Anderson

💎 On the power of aligning incentives (jumping out of a plane)

Here’s another example: in World War 2, US paratroopers had a problem with the fact that, allegedly, one in twenty chutes failed in some way. The soliton was to require the packers and inspectors to regularly jump out of airplanes using parachutes chosen at random from the store. The quality of packing then rose to 100 per cent and stayed there. “The packers are all jumpers,” explained on NCO to Stars and Stripes magazine: ” We try to have each man jump once a month. That’s a pretty food way to keep them honest on the tables.”

Excerpt from: One Step Ahead: Notes from the Problem Solving Unit

💎 On the Power of Diversity to Solve Problems

What is more, the effect was large: groups that has to accommodate an outsider were substantially more likely to reach the correct conclusion — they did so 75 per cent of the time, versus 54 per cent for a homogeneous group and 44 per cent for an individual.

Excerpt from: Messy: How to Be Creative and Resilient in a Tidy-Minded World by Tim Harford

💎 On the power of brevity (Hemingway 6 word novel)

No one knows wether the story’s true, but it is a good one anyway. Ernest Hemingway was sitting having a drink with some writer friends at Luchow’s restaurant in New York. They were taking about this and that, and eventually moved on to what the ideal length of a good novel might be. Hemingway claimed that he could write a novel in six words: the others each bet ten dollars that he couldn’t. Whereupon Hemingway wrote: “For sale: baby shoes, never worn” on a napkin. Six words, behind which lies a tragedy. Those who don’t gulp when they read this must have hearts of stone.

Excerpt from: The Communication Book: 44 Ideas for Better Conversations Every Day: 50 Ideas for Better Conversation Every Day by Mikael Krogerus and Roman Tschäppeler

💎 On breaking sales records using the anchoring bias (selling Girl Scout cookies)

Years ago, when The Tonight Show rules late-night TV and when the all the guests weren’t celebrities promoting their latest book, movie, or TV show, host Johnny Carson interviewed the Girl Scout who sold the most cookies that year. This young lady, Markita Andrews, set a cookie sales record that was never broken. What was her technique? In addition to hard work, she used a framing strategy to make her customers view the purchase as a trivial expense.

Markita’s strategy was simple When she knocked on a door, she would firs ask for a $30,000 donation to the Girl Scouts. Naturally, she had no takers on that request. But then she’d ask if they would at least buy a box of Girl Scout cookies. and just about everyone would.

Excerpt from: Brainfluence: 100 Ways to Persuade and Convince Consumers with Neuromarketing by Roger Dooley

💎 On why we often continue with failing projects for far too long (sunk costs)

“To withdraw now is to accept a sure loss,” he writes about digging oneself deeper into a political hole, “and that option is deeply unattractive.” When you combine this with the force of commitment, “the option of hanging on will therefore be relatively attractive, even if the chances of success are small and the cost of delaying failure is high.”

Excerpt from: Sway: The Irresistible Pull of Irrational Behaviour by Ori Brafman and Rom Brafman

💎 On how labour leads to love (baking cakes)

When instant cake mixes were introduced in the 1950s as part of a broader trend to simplify the life of the American housewife by minimising manual labour, housewives were initially resistant. The mixes made cooking too easy, making their labour and skill seem undervalued.

Learning this, Betty Crocker, one of the leading manufacturers of mixes, changed their recipe to require adding an egg. This simple change caused sales to skyrocket. Infusing the task with labour appeared to be a crucial ingredient in the product’s success.

When people create products with their own labour, their effort increases their perception of the end product’s valuation. And while some labour is enjoyable and allows for product customisation—both of which might increase valuation—research suggests that labour alone can be sufficient to induce greater liking and value associated with the results.

Excerpt from: Product Gems 2: 109 Science Experiments That Demonstrate How to Build Products People Love by David Greenwood

💎 On the power of uncertainty to increase savings participation (Premium Bonds)

More than 22 million UK citizens, about one-third of the population, have invested over £68 billion in premium bonds despite the interest rate they offer is well below that offered by other savings products. The reality is, unless you win one of the very large prizes, you will be worse off holding premium bonds than investing elsewhere.

So why are they so popular? It’s down to uncertainty. Uncertainty creates more positive, exciting experiences. We get excited by the unknown. Uncertainty increases one’s investment of effort, time, and money in pursuing rewards—even when the outcome is likely to be worse than more certain alternatives.

Excerpt from: Product Gems 2: 109 Science Experiments That Demonstrate How to Build Products People Love by David Greenwood

💎 On the power of doing good to boost sales (organic cotton and Patagonia)

In the mid-1990s, there was a shortage of organic cotton—cotton that Patagonia relied on to make its products. While other companies might source non-organic alternatives in the interim, Chouinard’s’ response was “if we have to be in business using an evil product like traditionally grown cotton, we don’t deserve to be in business”.

The big ‘a-ha’ for Chouinard was that you could do something good for the environment that was also good for your business. Patagonia became California’s first B Corporation in January 2012. At the time, the company was turning over $600m in annual revenues and employed around 2000 people.

Patagonia continues to donate 10% of its profits to small-scale environmental campaigns where $10,000-$15,000 can make a real difference. Their Worn Wear initiative encourages the repair, recycling and resale of garments. The company once took a full-page advert in the New York Times with the tagline: “don’t buy this jacket, unless you really need it”.

Excerpt from: Product Gems 1: 101 Science Experiments That Demonstrate How to Build Products People Love by David Greenwood

💎 On creativity being about connecting things (as noted by Steve Jobs)

“Creativity is just connecting things,” Jobs told Wired Magazine. “When you ask creative people how they did something, they feel a little guilty because they didn’t really do it, they just saw something. It seemed obvious to them after a while. That’s because they were able to connect experiences they’ve had a synthesise new things. And the reason they were able to do that was that they’ve had more experiences or they have thought more about their experiences than other people… Unfortunately, that’s too rare a commodity. A lot of people in our industry haven’t had very diverse experiences. So they don’t have enough dots to connect, and the end up with very linear solutions without a broad perspective on the problem.”

Excerpt from: Little Bets: How breakthrough ideas emerge from small discoveries by Peter Sims

💎 On obsessing over easily quantified data often having damaging results (the invention of the Tesco “Free From” range)

The obsession with easily quantified date crowds out the need for discretion and judgement.

Two examples illustrate the resulting issues. First is the experience of Terry Leahy who, when he was head of marketing at Tesco, analysed the performance of their gluten-free products. The sales data hinted it was an under-performing section – those that bought gluten-free goods only spent a few pounds on these items each shopping trip. A naive interpretation suggested de-listing them to free up valuable shelf space.

However, sceptical of the number, Leahy interviewed gluten-free shoppers and discovered that their choice of supermarket was determined by the availability of those products. They didn’t want to make multiple shopping trips, so the visited whoever had the specialist goods. After all, every shop had milk and eggs but only sone stocked gluten-free goods. Leahy used this insight to launch Tesco’s hugely successful “Free From” range long before the competition.

Excerpt from: The Choice Factory: 25 behavioural biases that influence what we buy by Richard Shotton

💎 On the power of asking a question rather than just stating a fact (during political campaigns)

If unemployment and inflation are up and confidence in the future is down, telling voters that life has gotten worse, while clearly factual, is less effective than asking voters “Are you better off today than you were four years ago?” Ronald Reagan asked Jimmy Carter and the tens of millions of debate listeners this devastating political question in their only face-to-face campaign encounter in 1980. No litany of economic data or political accusation could carry the power of a simple rhetorical question that for most Americans has an equally simple answer. “Are you better off” framed not just the debate, held only five days before the election, but the entire campaign, and it propelled Reagan from a dead even to ta nine-point victory over the incumbent Carter.

Excerpt from: Words That Work: It’s Not What You Say, It’s What People Hear by Frank Luntz

💎 On the danger of falling for the idea of brand love (it’s not because of some strong emotional bond)

“Most of a brand’s customers think and care little about the brand, but the brand manager should care about these people because they represent most of the brand’s sales.” Professor Byron Sharp, How Brands Grow (Oxford University Press).

Even this customers who repeatedly buy from your brand most likely do so out of simple habit and the product delivering on their needs. Contrary to the moonshine widely peddled by many branding and advertising “experts”, it’s not because of some strong emotional bond.

When we exaggerated the role that the brand plays in people’s lives, it leads to self-important and phoney advertising. People are smart enough to realise this and know when they’re being patronised.

Excerpt from: How To Make Better Advertising And Advertising Better by Vic Polinghorne and Andy Palmer