Anniversary special: Top 5 insights

Executive summaries of the 5 best insights from Ariyh’s first 6 months.

August 24, 2021

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📝 Intro

Ariyh turns 1 year old! (Tomorrow, 25th August, to be exact).

I’d like to celebrate and thank you for these 12 months together in which we went from zero to 6,704 evidence-based marketers. So let’s shake things up today.

How? I’ve prepared executive summaries of the 5 best insights that Ariyh covered in the first 6 months of its existence (when less than 18% of you were subscribed).

I’ve selected them based on a combination of their impact, awareness in practice, and popularity (views, likes).

Here we go.

Top Insight #5 - When models in your ad should look at the viewer (or away)

  • Models in your ads should gaze at the viewer for utilitarian products (e.g. home repair) and look away for hedonic products (e.g. fashion).

  • For example, an ad for a sunhat (a hedonic product) generated 30% more sales when the model was looking away. The ad above is a missed opportunity.

  • Why? When models gaze away we more easily imagine ourselves in their place. When they stare at us we find them more credible.

Research from: University of Houston.

Top Insight #4 - Use precise prices to negotiate better

  • When selling negotiable products (e.g. B2B, real estate, used cars) don’t use rounded prices (e.g. $20,000). Use precise prices instead (e.g. $21,400).

  • You will get counteroffers closer to your price. High precision prices ($21,482.17) work well if you give a reason for them, and are essential with expert buyers.

  • Precise prices make people think in smaller units (e.g. cut $400 vs $1,000) and they assume you have a strong reason for that price.

Research from: Leuphana University, Saarland University, INSEAD, and Columbia University.

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Top Insight #3 - Regularly ask for (positive) feedback to increase customer lifetime value

  • Ask customers for their opinion to make them think better of you. Start with an open question asking them what they liked most to boost this effect.

  • In a B2C experiment, overall spending was 131% higher for those who answered feedback surveys. The effect also works in B2B.

  • We like being asked for feedback and this improves our memory of the experience. Positive questions increase this bias.

Research from: Utah State University, Boston College, Michigan State University, Brigham Young University, and Northeastern University.

Top Insight #2 - Say “I” not “We” when speaking with customers

  • Use “I” (e.g. I’m happy to help you) rather than “We” (e.g. We’re happy to help you) when interacting with customers to increase satisfaction and sales.

  • An analysis of a large online retailer found that this change would lead to 7% higher sales. Customers were 19% more satisfied when employees used “I”.

  • When an agent (e.g. customer service, sales) uses “I” it shows us that they are emotionally involved and empathize with us. We like that.

Research from: Wilfrid Laurier University, University of Alberta, and Simon Fraser University.

Top Insight #1 - People love products with rituals

  • When your product has a ritual attached to it (e.g. separate and lick Oreo biscuits) people enjoy and pay more for it, especially if there’s a delay after the ritual.

  • In one experiment, people were willing to pay 74% more for the same chocolate if they performed a ritual before tasting it. The effect even worked with carrots.

  • Rituals make us feel more involved with the product, almost as if it’s part of something we created.

Research from: University of Minnesota and Harvard University.

Remember: These studies could be disproven in the future (although this is rare). They may also not be generalizable to your situation. If it’s a risky change, always test it on a small scale before rolling it out widely.

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