Author: David Greenwood

💎 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

💎 On the power of reframing to define the debate (encouraging support for new policies)

In effect, positioning an idea doesn’t merely “frame” it so that it carries a certain meaning; it actually defines the terms of the debate itself.

For example, by almost two-to-one, Americans say we are spending too much on “welfare” (42 percent) rather than too little (23 percent). Yet an overwhelming 68 percent of American think we are spending too little on “assistance to the poor,” versus a mere 8 percent who think we’re spending too much. Think about it: What is assistance to the poor? Welfare! So while the underlying policy in question may be the same, the definition — welfare versus assistance to the poor — and positioning make all the difference in public reaction. If the context is a government program itself, the process and the public hostility is significant. But if the context is the result of that government program, the support is significant.

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

💎 On investing in companies that have flaws (often the big winners)

… the venture capital business is 100 percent a game of outliers, it is extreme outliers… We have this concept, invest in strength versus lack of weakness. And at first that is obvious, but it’s actually fairly subtle. Which is sort of the default way to do venture capital, is to check boxes. So “really good founder, really good idea, really good products, really good initial customers. Check, check, check. Okay this is reasonable, I’ll put money in it.” What you find with those sort of checkbox deals, and they get done all the time, but what you find is that they often don’t have something that really makes them really remarkable and special. They don’t have an extreme strength that makes them an outlier. On the other side of that, the companies that have the really extreme strengths often have serious flaws. So one of the cautionary lessons of venture capital is, if you don’t invest on the basis of serious flaws, you don’t invest in most of the big winners.

Excerpt from: Barking up the Wrong Tree: The Surprising Science Behind Why Everything You Know About Success Is (Mostly) Wrong by Eric Barker

💎 On the danger of forgetting who the end user is (journalists write for other journalists)

There’s another risk factor among the outlets that consider themselves to be “quality” journalism – that writers become more concerned with the opinion of other journalists than with the audience. This is a concern that dates back at least to the 1970s. “Journalists write for other journalists, the people they have lunch with rather than the reader,” an unnamed journalist said at the time, leading one academic to conclude: “Their image of the audience is hazy and unimportant… they care primarily about the reaction of the editor and their fellow-reporters.”

This tendency is exacerbated in US award culture, where the most prestigious prizes favour journalism written in great length – often 10,000 words or more and presented in a dense, discursive fashion. These pieces are often, for a journalist like me, a joy to read and are often produced over the course of months. They are often the very best articles their outlets produce – but it’s not hard to argue that they’re not as accessible or impactful as they could be.

Excerpt from: Post-Truth: How Bullshit Conquered the World by James Ball

💎 On the power of getting a commitment (watch my things)

Take, as proof, what happened when psychologist Thomas Moriarty staged thefts on a New York City beach to see if onlookers would risk personal harm to halt the crime. In the study, a research accomplice would put a beach blanket down five feet from the blanket of a randomly chosen individual – the experimental subject. After a couple of minutes on the blanked spent relaxing and listening to music from a portable radio, the accomplice would stand up and leave the blanket to stroll down the beach, A few minutes later, a second researcher, pretending to be a thief, would approach, grab the radio, and try to hurry away with it. As you might guess, under normal conditions, subjects were very reluctant to put themselves in harms way by challenging the thief – only four people did so in the twenty times that the theft was staged. But when the same procedure was tried another twenty times, with a slight twist, the results were drastically different. In these incidents before taking his stroll, the accomplice would simple ask the subject to please “watch my things,” which each of them agreed to do. Now, propelled by the rule for consistency, nineteen of the twenty subjects became virtual vigilantes, running after and stopping the thief.

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

💎 On the downside of spreadsheets and the illusions they create (intangible factors aren’t so easily quantified)

The spreadsheet is a tool, but it is also a worldview — reality by the numbers… Because spreadsheets can do so many important things, those who use them tend to lose sight of the crucial fact that the imaginary businesses that they can create on their computers are just that — imaginary. You can’t really duplicate a business inside a computer, just aspects of a business. And since numbers are the strength of spreadsheets, the aspects that get emphasised are the one easily embodied in numbers. Intangible factors aren’t so easily quantified.

Excerpt from: The Tyranny of Metrics by Jerry Muller

💎 On why clothing stores instruct their sales personnel to sell the costly item first (the contrast principle)

Those who employ it can cash in on its influence without any appearance of having structured the situation in their favor. Retail clothiers are a good example. Suppose a man enters a fashionable men’s store and says that he wants to buy a three-piece suit and a sweater. If you were the salesperson, which would you show him first to make him likely to spend the most money?

Clothing stores instruct their sales personnel to sell the costly item first. Common sense might suggest the reverse: If a man has just spent a lot of money to purchase a suit, he may be reluctant to spend very much more on the purchase of a sweater. But clothiers know better. They behave in accordance with what the contrast principle would suggest: Sell the suit first, because when it comes time to look at sweaters, even expensive ones, their prices will not seem as high in comparison. A man might bulk at the idea of spending $95 for a sweater, but if he has just bought a $495 suit, a $95 sweater does not seem excessive. The same principle applies to a man who wishes to buy the accessories (shirts, shoes, belt) to go along with his new suit.

Contrary to the commonsense view, the evidence supports the contrast-principle prediction. As sales motivation analysts Whitney, Hubin, and Murphy state, “The interesting thing is that even when a man enters a clothing stores with the express purpose of purchasing a suit, he will almost always pay more for whatever accessories he buys if he buys them after the suit purchase than before.”

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

💎 On the mismatch between employers and employees (leaders need to drastically over-communicate priorities)

A while back Inc. magazine asked executives at six hundred companies to estimate the percentage of their workforce who could name the company’s top priorities. The executives predicted that 64 percent would be able to name them. When Inc. then asked employees to name the priorities, only 2 percent could do so. This is not the exception but the rule. Leaders are inherently biased to presume that everyone in the group sees things as they do, when in fact they don’t. This is why it’s necessary to drastically over-communicate priorities. The leaders I visited with were not shy about this.

Excerpt from: The Culture Code: The Secrets of Highly Successful Groups by Daniel Coyle

💎 On the importance of judging a presentation by its effect (not its technical excellence)

In here delightful book, On Speaking Well, Peggy Noonan (who wrote speeches for former Presidents Bush and Reagan) tells a story about Coco Chanel that illustrates this important distinction. Chanel believed that the hallmark of a great dress was that it didn’t call too much attention to itself. Thus if a woman walked into a room wearing one of her dresses and everyone said, “What a fabulous dress!” she had failed. Success came when the woman walked into the room and people said, “You look fabulous!”

In the same way, a presenter fails if people say “What a great presentation!”.

Excerpt from: Perfect Pitch: The Art of Selling Ideas and Winning New Business by Jon Steel

💎 On our tendency to underestimate how much social proof affects our behaviour (increasing busking donations)

At a busy New York City subway station we hired researchers to count the number of commuters who donated to a street musician as they walked past.

After a short time a small change was made to the situation that had an immediate and impressive impact. Just before an approaching (and unsuspecting) commuter reached the musician, another person (who was in on the act) would drip a few coins into the musician’s hat in view of the approaching commuter. The result? An eight-fold increase in the number of commuters who chose to make a donations.

In a series of post-study interviews with commuters who did donate, every one of them failed to attribute their action to the fact that they had just seen someone else give money first. Instead they provided alliterative justifications: “I liked the song he was playing”; “I’m a generous person”; and “I felt sorry for the guy.”

Excerpt from: The Small BIG: Small Changes that Spark Big Influence by Robert Cialdini, Noah Goldstein, and Steve Martin

 

💎 On the power of asking obvious questions (it’s never foolish)

The barrier created by thinking “I may make a fool of myself if I ask this” can mean that starting points and new directions for thinking remain undiscovered. Always ask the questions that seem too obvious, or those you think you’re supposed to know the answers to. When industrial designer Kenneth Grange was briefed to develop new express trains for British Rail in the 1970s, a seeming naive question popped into his head; “What exactly are the buffers on the locomotive for?” Expecting to be told “They’re to stop the trains crashing into stations, stupid!”, instead he learnt that they were for shunting carriages  — a redundant activity from a bygone era.

Excerpt from: The A-Z of Visual Ideas: How to Solve any Creative Brief by John Ingledew

💎 On overconfidence being a bigger problem than incompetence (usually mistake of experts who have power and authority)

We all spend a lot of time complaining about incompetence, but as Malcolm Gladwell pointed out in a talk he gave at High Point University, overconfidence is the far bigger problem. Why? Incompetence is a problem that inexperienced people have, and all things being equal, we don’t entrust inexperienced people with all that much power or authority. Overconfidence is usually the mistake of experts, and we do give them a lot of power and authority. Plain and simple, incompetence is frustrating, but the people guilty of it usually can’t screw things up that bad. The people guilty of overconfidence can do more damage.

Excerpt from: Barking Up the Wrong Tree by Eric Barker

💎 The power of making it personal (think about how someone else might feel)

Emotions get people to change their behavior. In his show Crowd Control, Dan Pink tried to get people to stop illegally using handicapped parking spots. When Dan’s team changed the handicapped signs so they has a picture of a person in a wheelchair on them, illegal parking in the spots didn’t go down — it topped altogether. Seeing a person’s face, thinking about how someone else might feel, made all the difference.

Excerpt from: Barking Up the Wrong Tree by Eric Barker

💎 On the unintended consequence of banning things making them more desirable (changing our perception of them)

The second reaction to the the law was more subtle and more general than the deliberate defiance of the smugglers and hoarders. Spurred by the tendency to want what they could no longer have, the majority of Miami consumers came to see phosphate cleaners as better products than before. Compared to Tampa residents, who were not affected by the Dade County ordinance, the citizens of Miami rated phosphates detergents as gentler, more effective in cold water, better whiteners and fresheners, more powerful on stains. Affect passage of the law, they had even come to believe that phosphate detergents poured more easily than did the Tampa consumers.

Excerpt from: Consumer Reaction to Restriction of Choice Alternatives by Michael Mazis and Robert Settle

💎 On why we should seek out disconfirming evidence when formulating a theory (confirmation bias)

No professionals suffer more from the confirmation bias than business journalists. Often, they formulate an easy theory, pad it out with two or three pieces of ‘evidence’ and call it a day. For example: “Google is so successful because the company nurtures a culture of creativity.” Once the idea is on paper, the journalist corroborates it by mentioning a few other prosperous companies that foster ingenuity. Rarely does the writer seek out disconfirming evidence, which in this instance would be struggling businesses that live and breathe creativity or, conversely, flourishing firms that are utterly uncreative. Both groups have plenty of members, but the journalist simply ignores them. If he or she were to mention just one, the storyline would be ruined.

Excerpt from: The Art of Thinking Clearly by Rolf Dobelli

💎 On how little shoppers notice when in store (sleep shopping)

One successful example was Sainsbury’s in 2004 who realised much supermarket shopping was done in a daze. “Sleep shopping” as they termed it. Shoppers were buying the same items week in, week out — restricting themselves to the same 150 items despite there being 30,000 on offer.

AMV BBDO, Sainsbury’s creative agency, went to great lengths to dramatise the extent of sleep shopping. They hired a man dressed in a gorilla suit and sent him to a Sainsbury’s to do his week’s shopping. They questioned shoppes as they were leaving the store and a surprisingly low percentage had noticed him. When shoppers are on autopilot it’s hard to grab their attention.

Excerpt from: The Choice Factory by Richard Shotton

💎 On second-order social intelligence (and the dangers of discounting)

The following is a perfect illustration of the tendency of modern business to pretend that economics is true, even when it isn’t. London’s West End theatres often send out emails to people who have attended their productions in the past, to encourage them to book tickets, and it was the job of an acquaintance of mine who worked as a marketing executive for a theatre company to send out these emails. Over time, she learned something that defied conventional economic rules; it seemed that if you send out an email promoting a play or musical, you sold fewer tickets with the email. Conversely, offering tickets at full price seemed to increase demand.

According to economic theory, this makes no sense at all, but in the real world it is perfectly plausible. After all, any theatre selling tickets t a discount clearly has plenty to spare, and from this it might be reasonable to infer that the entertainment on offer isn’t all that good. No one wants to spend £100-£200 on tickets, a mean, car-parking and babysitting, only to find that you would have had more fun watching television at home; in avoiding discounted theatre tickets, people are not being silly – they are showing a high degree of second-order social intelligence.

Excerpt from: Alchemy: The Surprising Power of Ideas That Don’t Make Sense by Rory Sutherland

💎 On how scarcity of goods and exclusivity of information significantly increases sales (a double whammy)

After we talked in my office one day about scarcity and exclusivity of information, he decided to do a study using his sales staff. The company’s customers—buyers for supermarkets or other retail food outlets—were phoned as usual by a salesperson and asked for a purchase in one of three ways. One set of customers heard a standard sales presentation before being asked for their orders. Another set of customers heard the standard sales presentation plus information that the supply of imported beef was likely to be scarce in the upcoming months. A third group received the standard sales presentation and the information about a scarce supply of beef, too; however, they also learned that the scarce-supply news was not generally available information—it had come, they were told, from certain exclusive contacts that the company had. Thus the customers who received this last sales presentation learned that not only was the availability of the product limited, so also was the news concerning it—the scarcity double whammy.

The results of the experiment quickly become apparent when the company salespeople began to urge the owner to buy more beef because there wasn’t enough in the inventory to keep up with all the orders they were receiving. Compared to the customers who got only the standard sales appeal, those who were also told about the future scarcity of beef bought more than twice as much.

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

💎 On prioritising tried and trusted findings (over the new and surprising)

But the problem is not just with journalists. The physician John Ioannidis scandalized his colleagues and anticipated the replicability crisis with his 2005 article “Why Most Published Research Findings Are False.” A big problem is that many of the phenomena that bio. medical researchers hunt for are interesting and a priori unlikely to be true, requiring highly sensitive methods to avoid false positives, while many true findings, including successful replication attempts and null results, are considered too boring to publish.

This does not, of course, mean that scientific research is a waste of time. Superstition and folk belief have an even worse track record than less-than-perfect science, and in the long run an understanding emerges from the rough-and-tumble of scientific disputation. As the physicist John Ziman noted in 1978, “The physics of undergraduate text-books is 90% true; the contents of the primary research journals of physics is 90% false.” It’s a reminder that Bayesian reasoning recommends against the common practice of using “textbook” as an insult and “scientific revolution” as a compliment.

A healthy respect for the boring would also improve the quality of political commentary.

Excerpt from: Rationality: What It Is, Why It Seems Scarce, Why It Matters by Steven Pinker

💎 On why collective behaviour is so hard to predict

Pitts put it. ‘A one-man riot is a tantrum.’ So how does a riot grow from a single person? In 1978, Mark Granovetter published a now classic study looking at how trouble might take off. He suggested that people might have different thresholds for rioting: a radical person might riot regardless of what others were doing, whereas a conservative individual might only riot if many others were. As an example, Granovetter suggested we imagine 100 people hanging around in a square. One person has a threshold of 0, meaning they’ll riot (or tantrum) even if nobody else does; the next person has a threshold of 1, so they will only riot if at least one other person does; the next person has a threshold of 2, and so on, increasing by one each time. Granovetter pointed out that this situation would lead to an inevitable domino effect: the person with a 0 threshold would start rioting, triggering the person with a threshold of 1, which would trigger the person with a threshold of 2. This would continue until the entire crowd was rioting.

But what if the situation were slightly different? Say the person with a threshold of I had a threshold of 2. This time, the first person would start rioting, but there would be nobody else with a low enough threshold to be triggered. Although the crowds in each situation are near identical, the behaviour of one person could be the difference between a riot and a tantrum. Granovetter suggested personal thresholds could apply to other forms of collective behaviour too, from going on Strike leaving a social event.

Excerpt from: The Rules of Contagion: Why Things Spread — And Why They Stop by Adam Kucharski

💎 On quality over quantity (in copywriting)

After all, isn’t brevity important? Nobody sits down and reads a great big press ad or an eight-page sales letter. do they? Do they?

Er, turns out they do. And more orders come from the long letter than the short version. More enquiries from the long ad than the short one.

Perhaps the most famous example in press advertising is an ad for Merrill Lynch written by a partner, Louis Engel. Engel was the managing editor at Business Week until he was hired by Charles Merrill, the firm’s founder.

The ad occupied a full page in the New York Times. Seven columns. Tiny type. NO PICTURES. In total, 6,540 words.

It drew 10,000 requests for a booklet mentioned towards the end of the ad (which, incidentally, had no coupon or any other recognizable “response device”).

Excerpt from: Write to Sell: The Ultimate Guide to Great Copywriting by Andy Maslen

💎 On the danger of poorly set targets

Metrics have even shaped literature. When Alexandre Dumas first wrote The Three Musketeers in serialised form, his publisher paid him by the line. Dumas therefore added the servant character Grimaud, who spoke in short sentences, to stretch out the text (then killed him off when the publisher said that short lines didn’t count).

Relying on measurements like clicks or likes can give a misleading impression of how people are truly behaving. During 2007–8, over 1.1 million people joined the “Save Darfur’ cause on Facebook, which aimed to raise money and attention in response to the conflict in Sudan. A few of the new members donated and recruited others, but most did nothing. Of the people who joined, only 28 per cent recruited someone else, and a mere 0.2 per cent donated.

Excerpt from: The Rules of Contagion: Why Things Spread — And Why They Stop by Adam Kucharski

💎 Statisticians, like artists, have the bad habit of falling in love with their models

The second kind of response is at the other extreme. Rather than ignore results, people may have too much faith in them. Opaque and difficult is seen as a good thing. I’ve often heard people suggest that a piece of maths is brilliant because nobody can understand it. In their view, complicated means clever. According to statistician George Box, it’s not just observers who can be seduced by mathematical analysis. “Statisticians, like artists, have the bad habit of falling in love with their models,’ he supposedly once said.

Excerpt from: The Rules of Contagion: Why Things Spread — And Why They Stop by Adam Kucharski

💎 How Smirnoff created the appearance of popularity at launch

PYOTR SMIRNOV came into this world on the eve of the birth of Russian capitalism and, in 1864, employed that capitalist spirit to make what would eventually be the world’s number one selling vodka brand, now known as Smirnoff. Pyotr was the first to use the charcoal filtering process that removes impurities from the grain-neutral spirit. He was also the first to “advertise.”

While organized publicity was still a vague concept, Smirnov shrewdly gathered a group of beggars, offered them a warm meal and plenty to drink at his home, then paid them to pop into Moscow’s major bars demanding Smirnoff. The man was a PR genius far ahead of his time. No wonder he became the official vodka supplier to the tsar in 1886.

Excerpt from: The 12 Bottle Bar: Make Hundreds of Cocktails with Just Twelve Bottles by David Solmonson and Lesley Jacobs Solmonson

💎 On progress being made when you’re prepared to accept a decline in a metric others aren’t

The shift towards 3-point shots had broad consequences for overall basketball tactics. But without the original and founding insight – that the game had been too cautious in accepting the increased risk of missing the shot altogether – there would have been no great leap forward. Whenever someone innovates in business or in life,’ argues the poker player Caspar Berry, ‘they almost inevitably do so by accepting a negative metric that other people are unwilling to accept.’ (My emphasis.)

Excerpt from: Making Decisions: Putting the human back in the machine by Ed Smith

💎 On safety measures causing people to take more risks

Economists call this excessive risk-taking when you know you’ll be bailed out ‘moral hazard’. To reduce moral hazard on the road, the economist Gordon Tullock once argued that instead of mandating seat belts, the government should require large spikes to be installed in the centre of steering wheels – known as Tullock spikes. These spikes would make drivers more aware of the danger of driving too fast. The Bank of England doesn’t quite do that.

Excerpt from: Can’t We Just Print More Money?: Economics in Ten Simple Questions by Rupal Patel and Jack Meaning

💎 On the importance of avoiding black and white thinking

The physicist Richard Feynman put it like this: ‘Statements of science are not of what is true and what is untrue, but statements of what is known to different degrees of certainty … Every one of the concepts of science is on a scale graduated somewhere between, but at neither end of, absolute truth and absolute falsity.’

Excerpt from: Making Decisions: Putting the human back in the machine by Ed Smith