Nudge Theory In Business With Examples (Explainer)
What is nudge theory?
There’s been a lot of talk recently about Nudge Theory and strategy in online marketing and customer-engagement circles. So what, exactly, are nudges?
Nudges are defined as intervention in choice-architecture that causes a person to behave in a desired way or to choose a preferred option over alternatives.
How do nudges work?
Nudges work by taking advantage of our mental shortcuts (AKA heuristics)
Here are the most successful mainstream categories of nudges designers are using in choice-architecture right now:
Strategic use of default options
Pre-commitment nudge
Social norms nudging
Loss-aversion framing
Gamification
Precision engagement nudges
Strategic use of default options
People are more likely to choose the default options than to modify.
Business Tip: If you want a customer to take one option over others, make the preferred choice a default!
Pre-commitment nudge
Getting a person to take a position or make a commitment to do something greatly increases the chances they will follow through on it.
Business Tip: Ask your customer what their top priority is, and how committed they are to finding a solution.
Social Norms
We’re more likely to do something if we believe that’s what others are doing (especially in our peer groups and personal networks)
Social Norms Business Tip
Include customer testimonials on your product pages as well as social media metrics when applicable.
Social Norms Business Tip BONUS
Use engagement pods to add social proof and establish social norms on your social media posts!
Recommended reading: The truth about engagement pods, explained
Loss-Aversion Framing
People value what they currently possess more than what they don’t yet own. . We’re more motivated by potential losses than potential gains.
Loss-Aversion Framing Business Tip
Get customers on a free trial or money-back guarantee so they can experience how well your product works. They won’t want to revert if you gave them the desired results.
Gamification
Adding game playing elements such as scoring, competitions, changing difficulty levels and random rewards lets you encourage higher engagement levels for a service, product or policy.
Gamification Business Tip
Create reward systems, run digital contests, acknowledge customers or users with high engagement, periodically throw in surprise bonuses and gifts.
Precision Engagement Strategies
Semi-customized nudges are delivered to precise, well-defined groups.
Precision Engagement Business Tip
Make your marketing automation system messages more granular with customer-types, rather than sending the same message to your different buyer persona groups.
Where can nudges be most useful in your business?
Improving customer experience Increasing conversion rates.
Gaining accurate customer feedback.
Upselling products and services.
Email marketing.
Social media marketing.
Growing sales revenues.
Why leave your customer’s choice architecture up to chance?
Visit www.ThisOneMarketing.com to learn more.
We can help you find the right nudge strategy for your business. Request a consultation with us today.
