Articles Tagged with: social media

Have You Heard of Nudge Marketing?

How about the term “nudge”?  

We’re going to talk all about nudges: what they are, how they work, and how brands and businesses use them to their advantage.

The term nudge was introduced in the book Nudge (2008), written by two behavioral economists: Cass Sunstein and Richard Thaler. They have defined it as:

“A nudge, as we shall use the term, is any aspect of the choice architecture that alters people’s behavior in a predictable way without forbidding any options or significantly changing their economic incentives. To count as a mere nudge, the intervention must be easy and cheap to avoid.”

Why are nudges effective?

Behavioral economics assumes that people’s choices involve a lot of guesswork. We tend to want to make decisions as quickly and efficiently as possible, but we never want to regret the decision we’ve made.  

A nudge is used to influence people’s behavior by making choice-making easier and seemingly less risky. It provides our brains with a shortcut, and the most we consciously notice is the feeling of being less stressed.

Nobody wants to feel forced or manipulated into making a decision, so subtle nudges with their best interests in mind will automatically make the decision-making process feel natural and smooth.

Let’s look at some of the companies that are making nudges work for them.

Companies selling software systems or anything that requires choosing a plan (Adobe, QuickBooks, Microsoft Office, etc.) will often have a banner highlighting the “Most Popular Plan.” If someone is looking at the options and don’t know what factors to focus on to make the best decision, this identification lets others do it for them.  

There’s a similar powerful persuasion in labeling a display of products as “Staff Picks,” “Editor’s Picks,” or more specifically, “Amazon’s Choice.” People are often put at ease when they see that a product made a good impression on someone else.

Subtly nudging confidence into consumers makes them more likely to make a purchase.

Discount popups are another type of effective nudge. Kate Spade’s website sometimes puts an extra discount on your screen as a popup when it senses that you’ve looked at a particular product multiple times without making a purchase. That extra incentive may be what pushes the shopper to commit.  

We’ve all experienced mind-numbing scrolling when trying to choose something to watch on Netflix or something to order from DoorDash. Sites and apps like these benefit from including a “Featured” list in a prominent place so that when viewers inevitably reach decision paralysis, they’ll have a section with fewer options and a higher perceived value. Making a decision that they’re not likely to regret will seem much easier.  

A strategy used by e-commerce sites is adding functional benefits and personality triggers to the product descriptions on their gallery page. This would be easy for small businesses to implement. Appealing to shoppers directly and as quickly as possible pulls them in, helps them feel seen, and makes their job much faster and easier.  

If you want to subtly change someone’s behavior, you can change the tools they use.

For example, some waste management companies have made recycling bins larger and garbage cans smaller to nudge people toward being more thoughtful about what they throw away. Also, giving people smaller plates at hotel buffets nudges them toward taking less food, ultimately reducing waste.

Not all nudges have a purchase as the end goal.

One of the most famous nudges is the piano stairs at the Odenplan station of the Stockholm Metro. A team transformed the stairs leading out of the station into a giant functioning keyboard. There’s a video showing commuters having fun on the stairs that went viral about a decade ago (Google “piano stairs Stockholm”).

The objective was simple: make more people take the stairs. Did they? Video footage showed that 66% more people than usual chose the stairs over the escalator!

Google has a free food benefit for their employees and found that it was making it harder for people to choose healthy options. To help improve their employees’ eating habits, they made the containers that held the sweets and snack items opaque, moved the salad to the beginning of the buffet line, and placed the sugar-free drinks at eye level in the cooler. Snacking and calorie intake were reduced by roughly 8%.

When strategizing nudges, it’s important to consider the order of the given options. People almost always prefer convenience over rationality, so it’s a great way to persuade them while making them content.

Have some fun with it!

People love friendly competition.

If your business is seeing a decline in tips and you’ve already addressed potential quality and service factors, make a game out of your tip jars. Play on peoples’ strong identification with popular conflicting sports teams and have each jar labeled and decorated for one. Or have a fun yet controversial question posted such as, “Does pineapple belong on pizza?” and have the tip jars labeled as “Yes” and “No”. Nobody is obligated to leave a tip, but it draws attention and gives an emotional incentive.  

There are a few things to consider when planning nudges for your small business.

Nudges must resonate deeply with your target audience, so you need to understand their motivations (values, interests, habits, psychological inclinations). 

If you make your nudge more about increasing your sales and less about benefiting the customer, it’s likely to backfire and decrease trust in you and your business.  

As previously mentioned, nudges should never be misleading or meant to trick people. They’ll know if they’re being pressured or manipulated, so it’s best to keep things transparent.  

If you focus on your audience’s true needs and plan your nudge marketing to ease their stress, this tactic could help you build the strong relationships needed to maintain a thriving business.

Do you have any nudge examples that you use for your business? Got a question? Don’t forget to COMMENT below and SHARE your thoughts!

Sources:

https://blog.crobox.com/article/behavioral-economics-marketing?_ga=2.173434656.2000106776.1555316919-124876615.1554128205

https://blog.crobox.com/article/nudge-marketing

https://www.convertize.com/what-is-nudge-marketing/

https://www.veeqo.com/us/blog/nudge-marketing

https://medium.com/swlh/the-7-most-creative-examples-of-habit-changing-nudges-7873ca1fff4a


What Do You Know About Social Proof?

Let’s talk about the power of social proof: why it’s important, how businesses are using it, and how you can start using it to your advantage too.

Business psychology professor Robert Cialdini coined the term “social proof” in his book Influence (1984). The concept of social proof is simple: When we don’t have enough information about something, we base our decisions on how others decide and act.

We follow the masses and feel most comfortable conforming to a group decision.

Psychologist Solomon Asch conducted a conformity experiment in 1951. Eight male college students (participants) were put in a group with two other people (influencers) who were secretly in on the experiment. Each group was shown an image of a line and then another image with three different lines. They were asked to choose which of those three lines matched the first line. The influencers always gave their answers before the participant. In 12 of the 18 trials, the influencers gave wrong answers, even though the correct answer was obvious. On the other hand, 75% of the participants gave the wrong answer as well. In the other six trials where the influencers gave the correct answer, the participant gave the wrong answer less than 1% of the time.

Asch determined that these participants followed the consensus because they wanted to fit in with the group. Some even believed that the group was better informed than they were.

Why is it essential for businesses to pay attention to the power of social proof?

Think about how we decide on which smartphone to buy. Most of us will do the research. Some will take a careful look at the specs. But not everyone will have the tech know-how to understand everything. So, we look to other people to fill in the gaps for us, such as family and friends.

If it’s a new product, you’ll probably join a forum or tech group to ask around, see what people know about it. You’ll also probably scour YouTube for review videos from the tech experts—AKA tech influencers. If they say that it’s a good product, you’ll be more likely to buy it when you get the chance.

This is why many brands work with influencers, who create content and review products. In doing so, they prime the mass market and influence them to buy the product when it gets released.

We tend to trust well-known people who have earned our confidence more than actual brands.

Let’s talk examples.

Ever wonder why restaurants have such small waiting areas inside the building? They want you to have to wait outside where people will see you. If you drive by a restaurant that has a large group of people waiting in front of it, you’re going to take a mental note that this restaurant must be fantastic. So, you’re more likely to come back to it. It’s hard to be impressed by an empty restaurant because our instinct is to assume that it must not be any good if nobody is there.

Another aspect of social proof is our want to be a part of a community. Canva plays on this with their sign-up landing page. It says, “Join over 10 million people designing on Canva.” This call to action is especially effective because it’s framed as an invitation rather than a statement. Sure, having 10 million customers is notable. However, people will want to sign up because they can join that large number of users and become part of their community.

Subaru has included a “Reviews and Awards” page on their website that shows potential buyers they’ve gone above and beyond the industry standard and have been recognized by institutions that matter. They also have a “Dear Subaru: Owner Stories” page set up like a collage. This personal touch lets customers see real people who have had wonderful experiences with Subaru.

There are stores and country clubs that use the idea of exclusivity as social proof. Whether they need a waitlist or not, they’ll use one to give the impression that their establishment is so popular and extraordinary that they must limit access.

Social proof is one of the most accessible marketing tools for small businesses.

You can utilize customer reviews in nearly every type of marketing collateral. Social media posts, blogs, sales pages, product descriptions, landing pages, and more can all immensely benefit from the addition of positive customer reviews.

People tend to check 2-3 review sites, like Yelp and Google, before deciding about a brand, so it’s best practice to get positive reviews on as many different sites as possible.

What’s even more powerful than reviews? Testimonials. These show the big picture, a whole experience rather than simply stating that a product worked. The key to great testimonials is value. The best ones address common objections and overcome them, giving viewers confidence in the product or service.

We trust authentic, peer recommendations far more than paid advertisements, so don’t be afraid to reach out to past customers for testimonials. You can create a short survey for them to take, ensuring that you get the exact information you need.

If you want to work with an influencer or a celebrity to promote your brand, finding the right match is crucial. The person you team up with will only help your conversions if your audience knows them, likes them, and trusts them. You’ll be out a lot of time and money if you choose the wrong fit.

Social media is ground zero for social proof. If you see a customer tagging you on Facebook or Instagram, acknowledge the post and share it on your feed or stories. Encourage your customers to tag you on their social media posts and reward them with engagement.

Remember that people are more likely to buy or do something when they know that other people are doing it, too.

How about you? How are you using social proof in your business? Got a question? Don’t forget to COMMENT below and SHARE your thoughts.

Sources:

https://sproutsocial.com/insights/social-proof/

https://optinmonster.com/11-ways-to-use-social-proof-to-increase-your-conversions/

https://www.subaru.com/index.html


Privacy Settings
We use cookies to enhance your experience while using our website. If you are using our Services via a browser you can restrict, block or remove cookies through your web browser settings. We also use content and scripts from third parties that may use tracking technologies. You can selectively provide your consent below to allow such third party embeds. For complete information about the cookies we use, data we collect and how we process them, please check our Privacy Policy
Youtube
Consent to display content from Youtube
Vimeo
Consent to display content from Vimeo
Google Maps
Consent to display content from Google