Great products are worth thousands
But great pricing will make you millions
Here's how Apple and The Economist do it (with a free giveaway at the end):
But great pricing will make you millions
Here's how Apple and The Economist do it (with a free giveaway at the end):
1/ Decoy Effect
When choosing between 2 options, adding a 3rd, irrelevant one can boost your sales by 10% or more.
Examples:
β’ Starbucks increased sales by 263%
β’ The Economist increased it by 30%
When choosing between 2 options, adding a 3rd, irrelevant one can boost your sales by 10% or more.
Examples:
β’ Starbucks increased sales by 263%
β’ The Economist increased it by 30%
2/ Loss Aversion
Humans generally value losses 2.3X more than gains of the same amount.
Example: Ernest Jones experienced a 28% increase in clicks by emphasizing a discount and building urgency.
Humans generally value losses 2.3X more than gains of the same amount.
Example: Ernest Jones experienced a 28% increase in clicks by emphasizing a discount and building urgency.
3/ Anchoring Effect
When initial info biases our decisions.
Example: During the iPad unraveling, Jobs displayed $999 on the screen, hinting at that as the price.
But due to overpredicted costs, the price was now down to $499!
Making the offer a "steal", selling 40M+ iPads.
When initial info biases our decisions.
Example: During the iPad unraveling, Jobs displayed $999 on the screen, hinting at that as the price.
But due to overpredicted costs, the price was now down to $499!
Making the offer a "steal", selling 40M+ iPads.
4/ Zero-Price Effect
One word, "Free," can increase:
Sales by 10%
Conversions by 50%
Customer acquisition by 48%
An obvious insight, but it's not as easy to apply...
One word, "Free," can increase:
Sales by 10%
Conversions by 50%
Customer acquisition by 48%
An obvious insight, but it's not as easy to apply...
Want to apply each of these principles and more to your work?
Simply retweet the tweet below, and I'll send you 3 free guides with 10+ actionable tactics:
Simply retweet the tweet below, and I'll send you 3 free guides with 10+ actionable tactics:
That's all for today!
For more visuals like the above, follow my friend @drex_jpg.
Heβs the best visual designer out there, bar none!
For more visuals like the above, follow my friend @drex_jpg.
Heβs the best visual designer out there, bar none!
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