Growth Hacking using behavioral economics
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This document discusses how behavioral economics principles can be used for growth hacking and increasing conversion rates. It outlines seven behavioral principles: reciprocity, choice overload, anchoring, loss aversion, decoy effect, social proof, and scarcity heuristic. For each principle, it provides a brief explanation and examples of how it can be applied. It then presents an exercise where participants work in groups to integrate at least three of the principles into templates for a subscription plan, email, or e-commerce page. Suggested changes and additions are reviewed along with which approaches may be most effective.
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Growth Hacking using behavioral economics
- 1. Growth hacking using behavioral economics Justin Saddlemyer
- 2. How can behavioral economics be used to increase conversion?
- 3. 1. Reciprocity. 2. Choice overload. 3. Anchoring. 4. Loss aversion. 5. Decoy effect. 6. Social proof. 7. Scarcity heuristic. Topics
- 5. Including chocolates with bill can increase tip percentage. Strohmetz, Rind, Fisher, & Lynn, 2002.
- 9. People were more likely to buy jam when they had sampled from a smaller set. Iyengar & Lepper, 2000.
- 10. Cutting down the number of options.
- 13. 3. Anchoring.
- 14. Furnham & Boo, 2011.
- 15. Quantity limits.
- 19. Free trials.
- 20. Expiring offers.
- 21. ‘Return what you don’t want’ services.
- 22. 5. Decoy effect.
- 23. Web Subscription: $59 Web and Print Subscription: $125 68% 32% http://www.economist.com/blogs/democracyinamerica/2009/05/the_independence_of_irrelevant
- 24. Web Subscription: $59 Web and Print Subscription: $125 Print Subscription: $125
- 25. Web Subscription: $59 Web and Print Subscription: $125 16% 0% 84% Print Subscription: $125
- 26. Multiple decoys.
- 27. 6. Social proof.
- 28. Social versus environmental pleas increase towel reuse. Goldstein, Cialdini, & Griskevicius, 2008.
- 31. Testimonials.
- 33. Rutte, Wilke, & Messick, 1987.
- 34. Invite-only.
- 35. Competition.
- 36. 1. Break up into three groups. 2. Work on one of three exercises. a) A subscription plan. b) An email encouraging upgrades. c) An e-commerce page. 3. Try to integrate at least 3 behavioral principles into the template. Exercise.
- 37. $50 1 month membership. $100 2 month membership. $150 3 month membership. $200 4 month membership. $250 5 month membership. $300 6 month membership. Launder-4-U Subscription Plans.
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- 39. Launder-4-U Services Your Cart (Pay Now) • Our new line of collared shirts. • 1 day delivery. • Available in 3 sizes. Additional Products Add to basket. Sale! $25
- 40. Review 1. What did you change/add? 2. What behavioral insights did you integrate? 3. Which do you think would be most effective?
- 41. $50 1 month membership. $250 3 month membership. $300 6 month membership. Launder-4-U Subscription Plans. How are you washing your clothes for the next 12 months? Most popular choice! Act soon, as we have limited capacity for laundry services! Anchoring. Scarcity. Decoy effect.Choice overload. Social proof.
- 42. Happy Holidays! We hope you enjoyed your free trial of laundry services from us at Launder-4- U. As this free trial is coming to an end in one week, we would like to encourage you to upgrade to 12 months of our paid premium service. The holidays can be extra busy, and we find that many of our users choose to upgrade in this hectic season. But if you’re still not convinced, we’d like to offer you another extra month free as a holiday gift. What’s more, we are giving you a discount. Use the code: LNDR-NOW at checkout and receive a 15% discount on your first month of use. But act soon, as only the first 100 users to sign up are eligible for this discount. Kind regards, Your friends at Launder-4-U Reciprocity. Scarcity. Anchoring. Social proof.
- 43. Launder-4-U Services Your Cart (Pay now) • Our new line of collared shirts. • 1 day delivery. • Available in 3 sizes. Products popular with other users! Add to basket. $25 (with your discount) Only 5 left in stock! Limit 5 per customer! Your 50% discount will expire in 2 days! Choice overload. Social proof. Scarcity. Anchoring. Loss aversion. Launder-4-U Laundry Tips: Start by preparing the dress shirt. Unbutton all of the buttons, including cuff buttons and any collar buttons. Remove any collar stays if it has them and put them in a safe place. Pre-treat any stains by carefully working a little detergent into them, or better yet spot-cleaning them with a stain remover pen. Set up your washing machine: To minimize wear on a fine or lightweight dress shirt, use the Delicate cycle. If the shirt is made from a heavier duty fabric, or is particularly dirty you may opt for the Normal cycle. Whites and light colors can use hot water. Dark colored shirts that you don’t want to fade should be washed with cold water. Take care not to include other laundry items with bold colors that may bleed into your shirts. Reciprocity.