Author: wemarg

The Power of Perceived Value: Discover how a well-marketed banana & roll of tape produced a windfall

(This article was originally published in the MarketingExperiments email newsletter.)

“If you have something unique — even a single dimension of exclusivity — that’s meaningful and significant to the customer, you help them conclude they can’t get this anywhere else.”

— Flint McGlaughlin, Managing Director, MECLABS Institute

If you are experienced in business, you have heard of using marketing tactics like scarcity, story and influence to increase your sales.

But there is a right way and a wrong way to apply these psychological drivers. Negative manipulation used by marketers to achieve a business objective not only hurts their own brand but also negatively impacts those who are making honest efforts to sell their goods or services.

In today’s video replay, Flint McGlaughlin explains ways to identify and avoid dark patterns some businesses employ to increase sales. He also gives examples of real case studies where people are using the power of scarcity, story and influence in a positive way — and increasing conversion.

Watch the video to learn how to tap into these three motivators in the most effective way.

Here are some key points in the video:

  • 8:01 Three factors can impact a customer’s perceived value of your offer.
  • 11:02 PVD is the difference between the customer’s perceived value and the actual value.
  • 16:40 Scarcity – Examples of using this internal motivator inappropriately.
  • 22:37 Dark patterns – Negative manipulation used by marketers to achieve an objective in their business.
  • 25:19 Examples of using Scarcity appropriately.
  • 29:10 Influence (celebrity, social proof, authority, etc…) – Examples of using it appropriately.
  • 32:05 Examples of using Story appropriately.
  • 35:33 Value Proposition – Four conclusions to evoke in the mind

Related Resources

Negatives examples…

Dark Patterns at Scale: Findings
from a Crawl of 11K Shopping Websites
– Research from Arunesh Mathur, Gunes Acar, Michael J. Friedman,
Elena Lucherini, Jonathan Mayer, and Arvind Narayanan of Princeton University
and Marshini Chetty the University of Chicago

The Endless, Invisible
Persuasion Tactics of the Internet
– by Sidney Fussell in The Atlantic, discusses negative examples
of leveraging dark patterns to tap into the power of influence and the power of
scarcity

Positive examples…

Landing Page tests: A/B Testing:
How a landing page test yielded a 6% increase in leads
– Example of
leveraging the power of scarcity

Web Clinic tests: Email Copy
Tested: How adding urgency increased clickthrough by 15%
– Example of the
power of scarcity

Social Media: Social Media
Optimization: Engineering contagious ideas
– Example of the power of scarcity

Ecommerce: It’s Not All About
Price

– Scarcity (“limited
time/limited inventory promotions”) was the most effective sales tactic for
consumer products.

Marketing Chart: Which
advertising channels consumers trust most and least when making purchases
– We discovered
that print ads (newspaper, magazines) were the most trusted advertising
channels when customers were making a purchase decision. One reason for this
may be the comparative scarcity of print, as opposed to omnipresent digital
ads.

Interactive Email: 6 tactics to
leverage the influence of social reinforcement
– Good example of a
winery using influence-based social reinforcement tactics in an email campaign

Marketing Psychology: The
behavioral triggers behind success at Amazon, Groupon and FarmVille
– GroupOn, in its
early days, used both the scarcity and influence behavioral triggers

How to Use Social Media to
Increase Your Marketing Conversion
– Includes an example of HiSmile leveraging the power of
influence in social media

Data Analysis 101: How a nonprofit
used data to secure a critical business decision and help find 125 missing
children
– Using the power of story with analytics for a nonprofit

Ecommerce Marketing: 150%
increase in sales from product storytelling and site redesign
– Case study
showing how the power of story helped increase sales

Content Marketing: How a farm
justifies premium pricing
– Example of in-package newsletter that leveraged the power of
story

Copywriting on Tight Deadlines: How ordinary marketers are achieving 103% gains with a step-by-step framework – (instant PDF download) Slide deck from a presentation showing how the power of story helped lead to a ticket sellout for a summit

5 Steps to Telling Your Team’s Story Internally – Leveraging the power of story for an internal audience

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