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Growth Hacking using behavioral economics, handouts

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Extra handouts to the workshop of Justin Saddlemyer at the Growth Hacking Summit, December 19th 2016, Antwerp.

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Growth Hacking using behavioral economics, handouts

  1. 1. Growth Hacking Using Behavioral Economics 1. Reciprocity People experience normative pressures to reciprocate gestures and favors. Examples: free content, inter-consumer offers, etc. 2. Choice overload Despite being attracted to large choice sets, consumers actually dislike the difficulty experienced when choosing. Examples: restricted number of options, ‘smart’ systems for choice. 3. Anchoring Consumer estimates and decisions often biased by an initial number/quantity, even if it is irrelevant for the context. Examples: limited quantities, multiple-unit pricing. 4. Loss aversion People experience more pain when sacrificing than pleasure when gaining. Examples: limited free trials, expiring offers. 5. Decoy effect Plans or products that are clearly inferior to one option (but not another) can shift preferences towards the superior option. Examples: asymmetrical subscription plans. 6. Social proof People often look to the behavior of others to understand normal behavior. Examples: info about others’ consumption behavior, testimonials. 7. Scarcity heuristic Limited quantities of items can drive preferences for that option. Examples: information about product quantities, exclusive services, competition.
  2. 2. Case Study  Reciprocity:  Choice overload:  Anchoring:  Loss aversion:  Decoy effect:  Social proof:  Scarcity heuristic: Of the topics you applied, which do you think will be most successful at increasing conversion, and why? Using the list below, please indicate the techniques you used, and how you incorporated them.