Tag Archives: sales

Apple’s Implementation of the Duration-of-Exposure Effect: Screens at 70Ëš

Hours after writing about the duration-of-exposure effect (whereby merely touching an unowned object increases our attachment to it and how much we value it), a post came into my feed reader pointing out how Apple Inc. take advantage of this effect in their “painstakingly calibrated” stores.

Carmine Gallo, providing a glimpse into his upcoming book, The Apple Experience, explains how every aspect of an Apple Store is designed to foster “multisensory ownership experiences”. This on the (very specific) tilt of laptop screens (from another great article on the topic):

The notebook computers displayed on the store’s tabletops and counters are set out, each day, to exactly the same angle. That angle being, precisely, 70 degrees: not as rigid as a table-perpendicular 90 degrees, but open enough — and, also, closed enough — for screens’ content to remain visible and inviting to would-be typers and tinkerers.

The point […] is to get people to touch the devices. “The main reason notebook computers screens are slightly angled is to encourage customers to adjust the screen to their ideal viewing angle,” [Gallo] says — “in other words, to touch the computer.”

A tactile experience with an Apple product begets loyalty to Apple products, the thinking goes — which means that the store exists to imprint a brand impression on visitors even more than it exists to extract money from them. “The ownership experience is more important than a sale,” Gallo notes. Which means that the store — and every single detail creating the experience of it — are optimized for customers’ personal indulgence. Apple wants you to touch stuff, to play with it, to make it your own. Its notebook computers are tilted at just the right angle to beckon you to their screens — and, more importantly, to their keyboards.

When Apple do it right, they do it perfectly.

via Kottke

Dark Patterns for Marketers, or: Practical Behavioural Economics

Taking a systematic approach to implementing findings from behavioural economics into a sales cycle can “unlock significant value”, according to McKinsey’s Ned Welch. To help business do exactly that, Welch–in what, at times, reads a bit like a ‘dark patterns guide for marketers’–has written an article looking at four practical techniques from behavioural economics that marketers should use to persuade purchasers. The techniques:

  1. Make a product’s cost less painful.
  2. Harness the power of a default option.
  3. Don’t overwhelm consumers with choice.
  4. Position your preferred option carefully.

There’s not much new here, but the summaries are nice and succinct. From item four, I found this bit of grocery store choice architecture interesting:

Another way to position choices relates not to the products a company offers but to the way it displays them. Our research suggests, for instance, that ice cream shoppers in grocery stores look at the brand first, flavor second, and price last. Organizing supermarket aisles according to way consumers prefer to buy specific products makes customers both happier and less likely to base their purchase decisions on price—allowing retailers to sell higher-priced, higher-margin products. (This explains why aisles are rarely organized by price.) For thermostats, by contrast, people generally start with price, then function, and finally brand. The merchandise layout should therefore be quite different.

via Nudge

(If you don’t have a McKinsey account, you can read the article here or here (PDF).)

A “Felt Need” Is What Makes Us Buy

A “felt need” is what differentiates a vitamin from an aspirin: when we crave something (relief from pain), a product that satisfies that desire becomes a must-have rather than a nice-to-have. Realising this and re-framing a product in terms of this craving is an important step in ensuring a product’s success, say Dan and Chip Heath, authors of the excellent Switch and Made to Stick.

Becoming aware of this idea is what led to the success of Netflix and NetApp… as well as the demise of countless other companies. In a brief article describing how re-framing a nice-to-have product as a must-have is all about discovering and exploiting a specific “felt need”, the Heaths look at Ray Bards failed attempt at getting his “vitamin” book published and how realizing this idea of a felt need led him to become a successful publisher.

If entrepreneurs want to succeed […] they’d better be selling aspirin rather than vitamins. Vitamins are nice; they’re healthy. But aspirin cures your pain; it’s not a nice-to-have, it’s a must-have. […]

That aspirin quality is what Bard now looks for in a book. He says that successful books address a deep “felt need” — that is, readers hunger for the answers the book provides. Classic examples would be diet books, personal-finance books, and books that promise you mega success if you’ll just radiate positive energy to the universe, indicating your receptivity to mega success. Bard has become a talented diviner of felt need. Fully half of the books that he publishes become best sellers. […]

You’ve heard the old saying “If you invent a better mousetrap, the world will beat a path to your door.” Don’t bet on it. The world’s felt need isn’t for a better mousetrap. It’s for a dead mouse. […]

When engineers or marketers or entrepreneurs get too close to their products, it’s easy to mistake a vitamin for an aspirin. If your team is flirting with delusion, a little love might point you in the right direction.

Persuasive Infomercial Sales Techniques

I don’t take infomercials very seriously, mainly due to how hilarious and absurd they are. However I’ve now been won over and can see their potential for certain product–market combinations. How did this miraculous change come about? Through a surprisingly enjoyable interview between Andrew Warner and the master of the infomercial, Tim Hawthorne.

From his many years of experience (he created the fourth ever infomercial, developing over 300 since then; has worked with some well-respected companies such as Apple, Nikon, 3M and Braun; and is responsible for about a billion dollars in client sales), Hawthorne talks extensively and insightfuly on the many infomercial sales techniques that his data show are the most persuasive. Two items that I particularly liked:

The most persuasive deal types:

Buy one get one free, or get the second one at half price. So you’re getting an immediate discount. Buy one and get a second one super size, so you’re actually doubling or tripling the order. Buy one and the second is actually going to be double the size. Drop a payment. Let’s say that your offer is three payments of $19.95, that’s your initial offer. But wait, if you call now, if you order now, we’ll actually make one payment for you. So it’s only two payments of $19.95. So that’s drop a payment. […]

I think one of the most powerful bonuses or premiums that you can offer is free shipping. A lot of people don’t understand the power of this. For some reason, if I’m going to pay $99.95 and there’s an additional $9.95 or $14.95 or $19.95 for shipping, that additional amount which is very important to many vendors, if you can sacrifice that, it has an amazing impact on people.

Words and phrases that trigger action:

“Free” is still, I think, and will always be considered the most powerful word in selling. After that we would probably think of words such as now, you or your, easy, easily, guarantee, break-through, revolutionary, fast, quick, instant, magic, new, special, exclusive, limited time, risk free, only, save, money back, money back guarantee, call now, and in terms of a classic phrase, “but wait, there’s more”.

Everybody kinds of kicks around that particular phrase and it’s used often. One of the reasons it’s used so often is that it’s so effective.

Narratives for Selling Premium Goods: The Grey Goose Story

People want to pay more in order to own luxury goods, but you need to give them a reason to do so. That excuse? A compelling story.

One man that subscribed to this idea was Sydney Frank, as is evident from the strategy he developed for Grey Goose: the ‘superpremium’ vodka that Barcardi bought for $2 billion in cash in what became the largest ever single brand sale.

In a 2005 New York article published shortly before his death, you can read all about Sydney Frank’s marketing/branding strategy and the compeling story of Grey Goose vodka. This excerpt follows Frank’s decision to have Grey Goose distilled in France:

But why France? Doesn’t vodka come from Russia, or perhaps, in a pinch, Scandinavia? “People are always looking for something new,” says Frank. It’s all about brand differentiation. If you’re going to charge twice as much for a vodka, you need to give people a reason.

“Nietzsche explains that human beings are looking for the ‘why’ in their lives, […] we refer to this ‘why’ as ‘the Great Story.’ The Great Story must be enticing, memorable, easily repeatable, and about what you want your brand to be about.”

For Grey Goose, the brand was about unrivaled quality. Grey Goose’s Great Story hinged on the following key points: It comes from France, where all the best luxury products come from. It’s not another rough-hewn Russian vodka—it’s a masterpiece crafted by French vodka artisans.

It uses water from pristine French springs, filtered through Champagne limestone.

It’s got a distinctive, carefully designed bottle, with smoked glass and a silhouette of flying geese. It looks fantastic up behind the bar, the way it catches the light […] It sure looks expensive.

It was shipped in wood crates, like a fine wine, not in cardboard boxes like Joe Schmo’s vodka. This catches the bartender’s eye and reinforces the aura of quality. Never forget the influence of the bartender. […]

And now the most important piece of the story—the twist that brings it all together: Grey Goose costs way more than other vodkas. Waaaaaaay more. So it must be the best.

This description of Grey Goose’s Great Story perfectly captures the essence of the article.