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Jas P

Usability Testing for Startups: A History and How To - 0 views

  • Modern Techniques A decade later, things have changed since those early days of guerilla user testing. Now there are a few different ways to highlight usability issues and some of them are even easier, quicker, and cheaper to implement that the in-person tests that Nielsen popularized. Here are 4 test types that I’ve used: In person, moderated and lightly scripted: This is the traditional format of a usability test and of the in-person techniques, it’s the easiest one to get started with. A quick definition of terms: in person means that you’re sitting down with the user, moderated means that there’s someone talking to the user and acting as a sort of referee to keep things on track, and scripted means that there’s a fixed set of tasks written down in advance and that the moderator wants the user to accomplish. In person, moderated and unscripted: This is the Listening Lab technique popularized by Mark Hurst. It requires a bit more experience and finesse to pull off in order to gather valid usability insights without turning into a completely unstructured focus group. In it, the moderator asks the user what tasks he or she wants to accomplish before diving into the app, based on their demographic, a loose conversation about their interests, or their impressions of external marketing pages. Remote and moderated (scripted or unscripted): This can be roughly the same as the two techniques above, except the moderator and user aren’t physically present in the same room and use a video app like Skype to connect instead. This is especially a help to early stage projects, when initial early users can come from any part of the world. Remote, asynchronous and heavily scripted: This is the absolute easiest and most newbie-friendly way to try user testing. It’s enabled by relatively new tools like Usertesting.com, where the moderator and user don’t chat in real time and instead, the user is left on their own to follow step-by-step instructions on how to use the site or app in question, while their mouse movement and audio feedback is recorded.
  • The basic framework of an in-person tests is: Think about what goals you’d like the user to accomplish (yes, even for the unscripted tests because you still want to see if they can complete certain tasks, although in a looser, unguided format). Record everything – at least the audio and screen, if not also their face and body, so you can review later as well as share with the team. It’s a newbie mistake to try to moderate a test at the same time that you’re analyzing it for lessons, and even newbier to ask stakeholders to just listen to a summary when audio/visual feedback can have such a punch. Use about 5 or 6 people – any less has too much noise while any more has diminishing returns. Note that a qualitative research method like this is different from a quantitative one like A/B testing, where the cutoff is much higher and more users is always better. Let people explore and make mistakes on their own while also keeping them on task. Don’t talk so much that you’re explaining everything on the screen like a car salesman, but also don’t morosely sit back and let them feel judged. Try to strike a balance between friendly and observant.
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    Nice overview of testing your mobile and web application including different approaches and techniques
Jas P

7 Tips That Will Actually Improve Your Customer Acquisition Efforts | Grow Everything. - 0 views

  • 1. 80/20 rule from Noah Kagan Appsumo’s founder, Noah Kagan, notes that one rule of thumb that they follow is to use 80% of their marketing budget for things that are working and 20% on newer marketing initiatives. One more thing: they go all in when they find marketing channels that work. You can watch one of his presentations where he shares his experiences of growing Mint, Facebook, and AppSumo here.
  • 2. Communicate, communicate, communicate At Treehouse, we work remotely and as you might imagine. There are some that think there is no replacement to working in person while others support it. For us, we’re half and half – we have an office in Orlando and we also have a team up in Portland. The rest of us are distributed. But hey, it works because we communicate a lot. If you don’t feel like you are running enough A/B tests, speak up about it. If you feel like the team needs more developers, speak up. If you feel like an executive decision is going to cost the company money in the long run, talk. People might not always agree with you but it’s your job to communicate. You’re doing the company a disservice if you aren’t being honest. To get you started, here are some tools we use to communicate: Campfire Skype Google Chat Google Hangout GoToMeeting – we use GoToMeeting for our leadership meetings. It’s very simple to use and the video quality is pretty good.
  • 3. Be a voracious reader Although there’s a lot of crappy content circulating the internet, there’s always going to be someone you can learn from. The key is being able to discern signal from noise. For example, if I’m looking to learn more on conversion rate optimization, there are great blogs such as Unbounce, ConversionXL, KISSmetrics, SEOmoz, and more. Just look at the detailed blog posts that they write: 10 Useful Findings About How People Use Websites – ConversionXL 5 Landing Page Conversion Killers – Unbounce The Ultimate Guide to Conversion Rate Optimization – SEOmoz If your goal is to squeeze every penny out of your website, you should be reading conversion rate optimization articles like the ones above. They cost no money to read and stand to help create original ideas that will eventually create more profit for you. This applies to any topic you’re interested in. Using the right tools can go a long way in helping you save time. If you’re on the go and don’t have time to read, you can use Pocket. To help you find relevant topics/articles via Twitter, you can grab curated lists using Listorious. Finally, I like picking off interesting topics from Inbound.org or Hacker News. Key takeaway: don’t read every single blog out there. Find the ones that actually add value and follow them.
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  • 4. Never assume you know everything They say two years in the tech world is like ten regular years. Things move very quickly so it’s important to stay grounded, even if you’re doing well. What worked two years ago might not be effective today. For example, if you wanted to rank well in Google for certain keywords in 2008, all you had to do was spam forum links with exact match anchor text. Doing that today would get you torched by Google. Be willing to adapt and be humble. It’ll take you a long way.
  • 5. Be willing to listen to other people People will often have opinions or ideas on how to help drive growth for the company. Listen to them. Sure, they might not have the hands on experience that you have it comes to marketing but it doesn’t mean they don’t have good ideas. Marketing/growth is a company wide initiative and everyone should be participating. I’m not saying that you have to take action on everything others tell you, but listen closely and try to discern the signal from the noise.
  • 6. Test everything We live in a world today where you no longer have to be afraid of challenging executives when you think something is wrong. If you feel strongly that something should be a certain way, all you need to do is fire up an A/B test and have the two variations duke it out. The data decides the winner. And if you are the executive and someone comes up to you with a seemingly stupid idea that you think will never work? Test it. And if their test goes to shit, then they’ll know to come back to you next time better prepared. That’s what makes data great. Don’t know what to test? Look for case studies such as this one to get ideas. Then gather feedback/data from your customers and decide on which elements you should be testing and do it. Don’t waste your time trying to outsmart your peers on why your idea is superior. Just shut up and test.
  • 7. Talk to others Talk to others. A lot. I make it a habit to talk with other Chief Marketing Officers/VP of Marketing/Growth Hackers because they share valuable experiences that might help my company grow. In return, I do the same so the relationship is mutually beneficial. If you’re starting from scratch and need a way to talk to these people, Clarity is a great way to do so. You can connect with some of the world’s brightest minds not only in just marketing, but in other areas such as angel investing. Another method is to read a lot and reach out to authors who have written articles that are truly remarkable. These are the articles that make you go ‘wow, this guy really knows what he’s talking about and I could probably learn a lot from him’. If you get that reaction, then it’s worth it to shoot them a tweet or even e-mail them. I used this method to find my present day mentor, who has helped accelerate my growth considerably. The key is to keep reaching out to people – you never know which relationship might sprout into something very powerful so you just need to keep at it.
Jas P

Defining A Growth Hacker: Growth Is Not A Marketing Strategy | TechCrunch - 0 views

  • “Growth teams are constantly iterating and developing new concepts,” said Dan Martell, founder of Clarity.
  • This process can be an unnecessary distraction to core product development. This is why it is best for an autonomous team to test and focus on growth.” Growth teams and growth hackers are in a perpetual state of “work-in-progress,” which can slow core product momentum with its mindset of iteration and testing.
  • “Ideally, a growth hacker can single-handedly put in a bunch of changes, such as A/B tests for copy and buttons,” said Mike Greenfield, 500 Startups Growth Hacker-In-Residence and co-founder of Circle of Moms. “One person with both technical and marketing skills can reduce friction and facilitate rapid iteration. Growth success comes from a lot of this background work.”
Jas P

Ramit Sethi and Patrick McKenzie on Getting Your First Consulting Client | Kalzumeus So... - 0 views

  • Ramit:  I want to emphasize a couple of things you mentioned. One, if you’re charging 5, 10, 20 bucks an hour, it’s very, very difficult to go from that to charging 200, 300 an hour or 10,000 a week.  It’s very difficult to make that transition. If you do it when you come in, that can happen. But going from one level to another is extremely difficult.
  • Thumbnail sketch: You can get from $20 to $100 by getting serious as a professional, and you get from $100 to $200 by getting really good as a professional (or working in a high-demand speciality), and then somewhere between say $150 and a weekly rate in the tens of thousands you probably repositioned your offering such that it is no longer directly comparable to what you were doing before.
  • Can you sell Rails at $50k a week?  I'm going to go with "almost certainly yes."  I think there are probably people who do that, and if you listened to them pitch clients, they would speak a language that holds very little in common with what you hear from a $100 an hour Rails developer.  Want to speak that language?  Keep reading for some thoughts.  (It will also help to get pretty darn good at Rails... though I think most people in my audience probably overestimate how skilled you have to be to move up that ladder.)]
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  • Ramit: The other thing you mentioned is how many people go in saying, “I’ll just do this first, and I need to make my bones.” And you know what? There is a time and a place to do free work. I do believe in free work occasionally. But I always tell people if you’re going to do free work, make sure you are clear about your messaging.
  • Now, I’m generally not a fan of free work, but I can be strategically. This is what I would say to the client. I would say look, my normal consulting rate is $85 an hour, or whatever format of pricing you’re using.
  • However, I really like what you’re doing, and frankly, I want to build up my portfolio. I would be willing to do this for three weeks for free if, in exchange, you agree that if I do an extraordinary job, then we can discuss working at my normal rate. Well, who’s going to say no to that? If you do an extraordinary job, everyone’s going to want to pay you.
  • But in this case, yes, you are working for free. But you are explaining why. That is so important. It separates you from, frankly, the people who are new. They’re new, and you can tell that they’re asking to be taken advantage, because they’re like OK, I’ll work for free. It’ll be fine. Somehow, I’ll go from free to $500 an hour. Doesn’t work. Explain your messaging. Explain your positioning, and people will respect you way more for it.
  • You will then aggressively leverage this portfolio when attempting to get work at your current billing rates.  I have projects which I did at $X per week which I will use to justify new $5X per week projects at new clients.  If clients ever picked up on the discrepancy – which would require me being stupid like mentioning that somewhere publicly… wait… d’oh – I would say something like “My previous client took a chance on me earlier in my career, when I didn’t have a track record of delivering results to people just like them. 
  • Ramit:  That’s right. I want to talk about one of the secret sauces of my business, and it’s something that actually nobody really cares about. People think they care about it, but they don’t care about it. It is the research that I do going into building a product or getting a client. And I know you’ve done this as well. It’s funny. The other day, I was asking people, “Hey, if I speak at South by Southwest, what would be a good talk?” Somebody wrote back on Twitter saying, “You should talk about your research methodology.” I said that would be great… for the three people who would attend.
  • Research is what allows me to charge 100 times what my competition charges… but nobody cares. Nobody wants to see [the hard work which goes into] how the sausage is made.  They just want to see the shiny tactic – the A/B test where you tested the color of this button.
  • I have a course called Earn 1K, and it’s about how to take your skills and turn them into freelancing income by getting multiple clients and earning 1K. Many of my successful students earn 5K or 10K in a month on the side. So, very relevant to the people listening here. When I started off doing this research, I actually didn’t even think of doing an “earn money” product
  • You can negotiate your salary. You can get passive income, which for most people, never works. You can get freelance income. You can blah, blah, blah, blah, blah.  [Patrick notes: Ramit would probably round out this list with 1) buy real estate and rent it to people, 2) invest in the public capital markets, and 3) start an honest-to-goodness business.]
  • Now, you can get good survey data with as few as 20 responses.  For all the engineers listening, listen closely: Statistical significance is irrelevant when you’re doing customer research. I don’t give a damn about P values and anything like that. It’s almost all qualitative.
  • Now, you don’t have to do 50,000.  Honestly, 100 gets you farther than most people do. [Patrick notes: I think talking to ten individual people who could actually buy your product prior to writing a line of code puts you ahead of the curve, judging from my inbox.  You’ll learn a million times more from 10 people than you’ll learn from your IDE when coding a product built for nobody.]
  • No SEO wakes up in the morning and thinks, “Damn, I have a WordPress problem.” They wake up in the morning and say, “Damn, I have a business problem.”
  • I pay them pretty well. I have passed on hiring engineers who may be more technically proficient, but they didn’t understand what I wanted. Honestly, guys, as a business owner, do you think I care if you’re using this technology or that? I just don’t give a damn [about technology]. I really don’t.
  • What I care about is, is my business going to generate revenue? Am I serving my customers? Is my website going to go down, and I have to be the one who tells you? Or can I go out on a Friday night and not worry about my business?
  • The guy was doing very well. I believe he was making either 40k or 400k a month. He was doing very well. This guy got pretty interested, and he said, “Hey, I’ve got to take a look at this market.” He spent about four or five months really doing deep research. Lots of stuff, including ad words, including customer research, including buying all the other products.
  • Once we got those right, sales skyrocketed.  [Patrick notes: cough read writeup in Fortune Magazine cough] I’ll just say that it’s very, very important to understand the words that your client or your customer is using and be able to explain how and why you can help them.
  • I think we don’t pay nearly enough attention to the exact words people use. Maybe we would if we came from a communications background. Nothing motivates people like having their own words repeated right back to them, which is something that you should try to do more often. It’s just an easy conversational hack to sound more persuasive.
  • But you have to make your prospective clients feel like you understand where they’re coming from. And that starts with both understanding where they’re coming from, and then communicating like you understand where they’re coming from. Even if you’re building a website for someone, it’s not just a website, right?
Jas P

Sean Ellis on creating a sustainable growth program via Sandi MacPherson - QUIBB - 0 views

  • Behind the term 'growth hacking'The concept for growth hacking grew out of the fact that most startups fail, and needing to not fail. When you think about games, the market is filled with large companies with lots of money to throw into marketing. Sean summed this need up well, with: When you're competing against Sony, you can't go dollar for dollar
  • 2. A Must-Have Experience Sean focused on the importance of a Must-Have Experience (MHX) - you must have a hook that clearly identifies what this is.
  • 3. Uncovering your MHXTo get a clear understanding of what your MHX is, Sean suggested reaching out to your Must Have Users (MHUs)… but what is a MHU?
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  • Sean likes using a pop-up or other survey tool to ask people 'How disappointed would you be if [your product] wasn't available anymore?' on a scale ranging from 'not at all disappointed' to 'extremely disappointed' to identify your MHUs (they'll answer very or extremely disappointed).
  • You can ask these identified MHUs 'What is the primary benefit you receive from [your product]' (as an open-ended question to start, then after getting ~30 responses, you should be able to narrow it down to 3 multiple choice answers).
  • 4. Getting people to your MHXOnce you understand your MHX, you can then maximize the percentage of people that reach this point. This means identifying points of friction and reducing that friction (Sean suggested watching people use your product, and then A/B testing based on insights gained), focus on what a real conversion looks like, building channels to increase user habits/increase revenues/drive sales/etc., and understand intent by A/B testing your messaging and hooks. You need to obsessively optimize everything that is part of this newly formed growth engine.
  • You need to engage with your users, and take those insights to come up with new, breakthrough ideas.
Jas P

How to Handle Price Objections - 0 views

  • Create case studies If you really want to show the value in what you offer, you have to create case studies. The simple ones won’t cut it, you have to give detailed ones… ideally with the exact things you provided and the results. To legitimize the case studies, make sure you put in testimonials from customers. This can be done in the form of video or text and if you happen to go the text route, make sure you include: Their full name Company name Their picture Title at the company If you want to see an example of a good case study, check this one out from Conversion Rate Experts.
  • Offer a free trial One of the easiest ways to handle price objections is to offer a free trial. Remember, just because you are offering a free trial doesn’t mean you can’t take a credit card up front. With Crazy Egg, one of our biggest objections from people is that our prices are too high. We created a “free trial” offering in which people had to put in their credit card up front. That offer converted at 59% higher than our 30 day money back guarantee offer. Keep in mind that you will get a lot of people who will cancel your service before their free trial is up, so when you a/b test this you have to also include cancelations into your calculations.
  • Explain the value The easiest way to demand a high price point is to explain how much money you are going to either make a company, or how much money you will save them. If you can explain this in an easy to understand fashion and provide case studies to back it up, it shouldn’t be hard to demand a premium price. A great way to do this is through sales copy. And don’t worry, your copy doesn’t have to be sleazy. I do this with Crazy Egg, NeilPatel.com and I also used to do it for my Quick Sprout Traffic System. You could even spice up your sales copy by including a video incase people don’t want to read your copy.
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  • Offer payment plans When I used to sell the Quick Sprout Traffic System, some people felt it was a bit too expensive. They didn’t like the fact that I was charging $197 for an eBook, and video/audio training. Instead of reducing the price I tested out a few payment plan options: 3 payments of $97. 4 payments of $67. Although both pricing plans in total were more expensive than the original price of $197, the 3 payments plan option converted at 34% more than the original offering and the 4 payment plan option converted at 52% better than the original. With the 3 payment plan option I still got complaints about my prices being too high, but with the 4 payment plan option, I got almost no complaints. Plus I was able to charge more than the original price of $197.
  • Explain what you don’t charge for Just like any good business, you want to go above and beyond for your customers. Which is why you probably provide a few little extra things for your customers at no charge. When people start to complain about your price points, you should explain how you go the extra mile for your customers and all of the little things you do for free. You can even express this on your website by bundling all of that extra stuff you provide into a “free bonus” for anyone that purchases your product or service.
  • Explain why your price points are high If people understand why your prices are what they are, they’ll be more likely to pay them. Tell them your fix costs, explain what their money is being spent on, and even tell them your profit margins. People know you are in business to make money, but no one wants to feel like they are being screwed over. If your margins are reasonable and you explain your costs to potential customers, they shouldn’t have an issue. For example, Single Grain had an issue in which potential customers felt their prices were too expensive. Instead of reducing their prices they explained to the companies why they charge so much, then they broke down their costs and even shared their margins. By doing this they were able to sign on 33% more new customers.
  • Offer lower price points for less and then upsell Now this won’t work for all businesses, but you could lower your price by offering a limited version of your product or service. Plus if people are happy and looking for more, it creates upsell opportunities. I actually had this happen to me when I tried hiring a copywriter by the name of Michael Williams. I didn’t want to pay his fee of $12,000 so he sold me on a smaller package that only cost me $3000. Funny enough, after 2 months, I went back to him and paid an additional $9000 to receive the rest of his services as I had a huge ROI on my initial investment. At KISSmetrics, upsells make up almost 10% of our new monthly revenue. We’ve found that a lot of companies at first don’t want to pay for our higher plans, but within 3 months of using our product, they’ll upgrade to a higher end plan after seeing a positive ROI.
  • Focus on how you are better than the competition If people didn’t see the value in cars like BMW or Mercedes Benz, they would just buy something affordable like a KIA. The fact is a car like a BMW or Mercedes Benz not only has more features than a KIA, but also is better built. Consider creating a comparison chart that shows how you differ from the competition. This is done on the homepage of Crazy Egg. It provided a single digit increase in conversions, so not a huge boost but better than nothing at all. It also reduced support questions by almost half in regards to our prices versus our competitors’ prices.
  • Stress the drawbacks of a lower price point In many cases, lower prices will come with a drawback. If you can explain the drawbacks of the lower price you can persuade people to pay your premium prices. A good example of this is RackSpace. They are one of the largest hosting companies and possibly one of the most expensive. They charge a lot, but their uptime rate is phenomenal. If you ever speak with one of their sales representatives they’ll quickly explain they are expensive, but they rarely if ever go down. They’ll also explain that their competitors may be cheaper but tend to go down more often. Then finally they’ll close hard at the end by asking what it would cost you every minute your website is down. For this reason they have done extremely well with their high price points. The company is worth almost 9 billion dollars as of today.
  • Leverage perceptual price points There are a lot of little tricks you can do to make your price points seem like they are lower than they actually are. Walmart has actually mastered this. Instead of charging you $50 for something, they’ll charge you $49.97. That way you emotionally feel like you are getting a good deal. If you want to learn more about physiological pricing, you should check out this blog post on KISSmetrics. It has some great tactics with examples you can use and learn from. Even the smallest thing can have a huge impact on your sales. Such as removing the “$” sign from your price points, which can cause a boost in sales and reduce price objections.
Jas P

5 Landing Page Mistakes that Crush Conversion Rates | Copyblogger - 0 views

  • 1. Blowing the headline Landing pages live or die by the quality of the headline. It’s your two-second chance to overcome the swift and brutal attention filters we’ve developed due to information overload and poorly-matched promises. Often, a better headline alone will boost the effectiveness of your landing page, and even overcome some of the other mistakes below. Split-testing different headlines is relatively painless, and can bring you much higher conversions compared with multiple other tweaks.
Jas P

What does a growth team work on day-to-day? | @andrewchen - 0 views

  • But first, you need a great product Let me note that if people aren’t using your product, then you’re wasting your time spending too much time optimizing growth. You need a base of users who are happy and then your job is to scale it.
  • Planning and model building The planning/modeling side of things is really about understanding, “Why does growth happen?” Every product is different. You might find that people find you via SEO and then turn into users that are retained via emails You might find that people come to your site via web and then cross-pollinate to mobile, and that’s the key to your growth. You might find you need to get them to follow a certain # of people. You might realize they need to clip a certain # of links to get started.
  • Summary To summarize the above: Have a solid product where your users are happy Coming up with a model for how your site grows Trying out ideas and deploying them as A/B tests If the site grows, then try out more ideas. If it doesn’t, rethink the model in step 1 because it might be broken
Jas P

10 Studies That Reveal What Customers WANT You To Know About Them - 0 views

  • 1. Customers Care More about Service Quality and Attitude than about Service Speed
  • A recent Gallup study reveals that when it comes to memorable service people tell their friends about, it’s more important that the service provided feels “thorough” and friendly, rather than quick. This was especially true for service in premium or prestigious markets, such as customer support at a bank.
  • Not only that, in a Customer Experience Report by RightNow, researchers found that the #1 reason customers would abandon a brand was due to poor quality and rude customer service, which were cited 18% more often than “slow or untimely service.”
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  • 2. Customers Know What They (and Other Customers) Want; They’re also Willing to Help
  • In a study of 1,193 commercially successful innovations across nine industries, 737 (60%) came from customers (i.e., customers can have very innovative ideas). User-created innovations have been successfully utilized to turn around “innovative slump periods.” While #1 is certainly a shocking revelation, there is a unique case study for #2 that really paints a believable picture for just how valuable customer input is.
  • 3. Customers like Loyalty Programs… as Long as You Make Them Seem Easy
  • In their research on the Endowed Progress Effect, Nunes and Dreze tested two versions of a car-wash loyalty program, which consisted of a card that got stamped after every wash. The first card needed 8 stamps to get a free wash. The second card needed 10 stamps to get a free wash, but 2 stamps were automatically added when the customer joined. That means both cards took 8 stamps total to get a free wash; they were just framed differently. Which one do you think performed better? Their findings: Despite the similar process, the second card performed almost twice as well as the first card, having 34 percent of participants complete it versus 19 percent for the other card. Why is this important? It shows that customers are more likely to stick with loyalty programs if the task at hand is framed as already being started.
  • 4. Creating Goodwill with Customers Doesn’t Take a Lot of Money
  • An employee on the phone with a customer during a marathon troubleshooting session heard the customer tell someone in the background that they were getting hungry. As she tells it, “So I put them on hold, and I ordered them a pizza. About 30 minutes later, we were still on the phone, and there was a knock on their door. I told them to go answer it because it was pizza! They were so excited.”
  • What’s actually happening: While the cost of the gifts/actions is quite small, the human mind simply cannot refuse the psychological construct of reciprocity. Reciprocity can be summed up as our natural inclination to feel grateful for favors and our desire to “pay them back,” no matter how small they are (covered quite well by Cialdini in his famous book Influence). The other thing that you must understand about reciprocity is that research has shown us that the intentions of the “giver” can affect the perceived value of the gift. This is why “Frugal WOWs” work so well: Customers perceive the service as a genuine act of kindness rather than as you trying to buy their affection with costly gifts. So remember, it doesn’t take huge expenses to win customers over!
  • 5. Customers Absolutely Adore Personalization; They Will Gladly Pay More for It
  • Would you believe that waiters were able to increase their tips by 23% over a control group by utilizing something as inexpensive as mints? It’s true, and this research is not only important in helping you understand how to create repeat customers, but also how to keep your customers incredibly satisfied and supportive of your business offering.
  • The results were surprising to say the least: The first group studied had waiters giving mints along with the check, making no mention of the mints themselves. This increased tips by around 3% against the control group. The second group had waiters bring out two mints by hand (separate from the check), and they mentioned them to the table (i.e., “Would anyone like some mints before they leave?”). This saw tips increase by about 14% against the control group. The last group had waiters bring out the check first along with a few mints. A short time afterward, the waiters came back with another set of mints and let customers know they had brought out more mints, in case they wanted another. That last group is where waiters saw a 21% increase in tips… yet they still were bringing out only two mints. The researchers found that it was the perceived personalization of bringing out the second set of mints and mentioning it to customers (“Hey, I thought I might see if all of you are satisfied or if someone could use an extra mint.”) that made the difference.
  • Point being: It wasn’t really the mints; it was the personalized experience that they created. It made it perfectly clear to customers that the waiter was thinking of them. Be sure to incorporate this into your own offering: How can you follow up with customers in a personalized manner with free support, training, or reward for trying out your product or service?
  • Research lead by Melanie Green and Timothy Brock reveals that trying to persuade people by telling them stories works extremely well. The reason that stories (when told well) are so appealing to customers is that you can transport them inside the story and get your point across without directly selling.
  • Once inside the story, we are less likely to notice things which don’t match up with our everyday experience. For example, an inspirational Hollywood movie with a “can-do” spirit might convince us that we can tackle any problem, despite what we know about how the real world works. Also, when concentrating on a story, people are less aware that they are subject to a persuasion attempt: The message gets in under the radar. Our brains have a tendency to be mostly concerned with enjoying the story and absorbing the message.
  • For instance, over at Help Scout, I conducted an interview with Leo Wildrich of the BufferApp that discussed how a small team like Buffer’s could possibly handle email support with tens of thousands of customers. The tale of a small team dealing with mountains of support emails was definitely one that resonated with a lot of small business owners, and the post was quite popular and performed well, all without the “hard-sell.”
  • Everyone loves hearing their own name! The implications of this have been seen across a variety of situations in dealing with customers: People tend to like you more if you use their name a few times during conversations. (But there is a limit; saying their name too much becomes unnatural and insincere.) People open emails with more consistency if their name is included. (That’s a big reason to ask for a name if you want increased conversions via email.) People often assume you are more competent if you know their name; it’s a big part of their identity, and if you recall it and use it, you are instantly viewed in a better light in their eyes. Utilizing customer names when interacting with them directly is an important part of making people feel like individuals rather than a “support ticket.” It’s difficult to scale, but if you care about your customers, it’s an essential part of winning them over. There’s quite a difference between receiving an automated email from “DO-NOT-REPLY” versus receiving one from “Scott” saying, “Hey Greg, thank you for your purchase! :)”
  • 9. Selling “Time” over Savings Can put Your Customers in a Better Buying Mood Have you ever wondered why commercials for “cheap beer” never, ever focus on the money that you can save by buying them? Instead, they create ads and slogans that focus on having a great time (i.e., “It’s Miller Time!”) This isn’t an accident. As it turns out, new research from Stanford reveals that selling “time” over money can make customers more receptive to buying. From Aaker’s research: “Ultimately, time is a more scarce resource—once it’s gone, it’s gone—and therefore more meaningful to us,” says Mogilner. “How we spend our time says so much more about who we are than how we spend our money.” Getting people to think about a period of time they enjoyed (associated with a product) can be much more effective than reminding them that they could be saving money.
  • 10. Bringing up Savings Makes Customers Feel Self-Centered and Greedy
  • Psychologist Kathleen Vohs has done numerous studies on priming, specifically in terms of how it affects our perception of money. She found through her research that just thinking about money makes us more self-serving and less willing to help others: Two sets of subjects were “primed” with either cues related to money (money related images, essays about making money) or cues that were unrelated to money. Later, subjects were asked to solve a difficult “brain-buster” and to help others do the same (those others being people “in” on the study).
  • Getting people to think about money and having them enter this “selfish” state can be beneficial or disastrous in advertising benefits to customers. If you’re selling an item associated with luxury or prosperity, this mindset may be a good thing (advertising your mutual fund, financial/retirement services, etc.).
  • Roger Dooley, author of Brainfluence, had this to say: [Marketers] who should be particularly cautious about money cues are those who want to appeal to the viewer’s feelings about others. Filling viewers with feelings of warmth and a desire to please someone else… and then reminding them about money, could be self-defeating.
  • Vohs agrees, citing research that shows how money often creates conflict and stress when paired with family issues, due to conflicting interests (Burroughs and Rindfleisch, 2002). The lesson: Be wary of reminding your customers about money if your product isn’t related to serving self-interests.
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