Can you put a price on your memories?
Dan ariely talks about 3 strangeness in his book Predictably Irrational.
- We fall in love with what we have. We value it more than it is.
- We focus on our losses, not our gains.
- We think other people will see it from our perspective.
For example, when selling our car, we want the buyer to see the same value as we do. The price we want will be in this direction. However, it is our memories that make the automobile valuable to us. It is normal that the buyer does not give the same value as us.
This is called the Endowment effect.
In the past, an eyeglass brand sent their products to their customers for free trials. They made the brand customers experience the product and feel they owned it. And this sense of ownership has led to an increased likelihood of customers selling.
Letting people feel they have something makes an impact, even if they don’t have it yet. It allows them to give more value to what is presented and to establish an emotional bond (ownership).
How is the endowment effect used in marketing and persuasion?
1- If you have a good product, you may consider offering a trial version with time or usage restrictions.
2- Let them feel the emotion and experience of owning the product on your page.
3- You can try to take advantage of the add-to-cart feature. This gives a sense of ownership. You can provide incentives to complete the payment by emphasizing the delivery date and speed.
4- Remove the question marks while highlighting your call to action.
How did we do this at Ncrementum?
1- Ncrementum allows to show ads to people with the same title on twitter. It is more important to show it than to tell it. It looks like this for us.
2- Consider offering a limited version of the product for free. This makes your customer feel that they own the product. And it can increase their appetite to buy. If you have a really good product.
- Let your customers imagine or experience that they own the product.
- Make them realize what they are going to lose.