Writing Persuasive Messages: Tips from a Nobel Laureate

It’s not everyday that you get tips on messaging and marketing from a Nobel Laureate. But that is exactly what Nobel Prize Winner in Economics Daniel Kahneman does in his recent bestseller Thinking Fast and Slow. Much of his book centres on the two Systems in our brain – The first system, simply called System 1, intuitively processes information and is quick to make decisions (think driving a car), while the second system, System 2, makes deliberate and considered choices (think taking a math test).

Kahneman tells us that if you have a well thought out message that you want others to believe, it’s not just what the message is that matters, but how you say it. In general, if you engage the intuitive and automatic part of our brain (System 1), the message is more likely to be believed quickly. And the psychology lab experiments bear this out.

We’ve distilled the three best tips that Kahneman dishes out on writing persuasive messages based on the science, and summarized them into a mnemonic. So here it is, The ReferralCandy S.M.L. Rule for Persuasive Messaging.

Tip No 1: Make it Simple

Many students believe that writing in complex language and with bombastic words will lead to better marks from Professors. Kahneman details how Princeton Professor Danny Oppenheimer refutes this myth with his brilliant paper Consequences of Erudite Vernacular Utilized Irrespective of Necessity: Problems with Using Long Words Needlessly.

Oppenheimer gave undergraduates at Stanford sample essays to read. But some of these essays had deliberately been made more complex with longer words. The result? increasing the complexity of a text made the students judge the authors to be less, not more intelligent.

So if you have something important to say during that business presentation or marketing blurb, keep it simple and concise. It’s the smart thing to do.

Tip No. 2: Make It Memorable

Besides keeping it simple, Kahneman recommends that you make your message memorable with rhymes. He cites an experiment where participants read unfamiliar but rhyming sayings such as:

Woes unite foes. 

A fault confessed is half redressed.

Other students read some of the sayings, but with non-rhyming versions:

Woes unite enemies

A fault admitted is half redressed.

You guessed it. Readers judged that the sayings which rhymed were more insightful than those which did not, though they were equally unfamiliar. No wonder Celine Dion songs always rhyme!

Tip No. 3: Make It Legible

Which of these statements is true:

Adolf Hitler was born in 1887.

Adolf Hitler was born in 1892.

If you are anything like most people, you would have chosen the second answer. But the right answer is neither (the evil dictator was born in 1889).  The idea is that the more your message stands out from the background, the more believable it is, other things being equal.

So the next time you’re designing a website or writing advertising copy, use bold fonts, and maximize the contrast between characters and their background to make the message more legible and clear. Kahneman also advises that if you use colour, use bright blue or red as they are more believable than lighter shades of say green, yellow and pale blue.

It’s All About Cognitive Ease

It’s all about what Kahneman calls cognitive ease. The human brain likes to believe what is familiar and easy to process. So the next time you need to get your point across, use our very own S.M.L Rule of Thumb. Keep it Simple, Memorable, and Legible. Hey, that rhymes!

 

Alvinl is the marketing guy at www.ReferralCandy.com, the refer-a-friend app that increases your sales through word of mouth. In his spare time he loves geeking out on technology, psychology and economics news.

Photo Credit: Osborneb

 

How Many Online Stores are there in the U.S.?

Here at ReferralCandy we got to wondering how many e-commerce retailers there are in the USA and how much they make. Asking Google brought us some possible answers, but nothing about how they were derived, or why they might be the right ones. So we decided to look for numbers we could crunch ourselves to get a good guesstimate.

So where do we begin? We found this June 2012 article about the Internet Retailer Top 500 Guide which had this nugget:

Overall, the Top 500 retailers have a 77% share of the $198 billion U.S. e-retailing market.

The Top 500 Guide also lists each retailer’s annual sales revenue. We plotted a graph of those 500 retailers and their revenues to see if there was anything useful we could find.

This is what we got:

That graph sure looked like it followed a power law. Could we figure out what the precise function was? After removing the top 10 retailers (since they were “noisy”) and asking Excel for a little help, we found a function with a pretty good fit:

That’s better. Now we’re getting close! Assuming that the power law held for retailers past the top 500, we now had a way of reasonably ascertaining the rank of any online store. Say we wanted the rank of someone running a side business making $12,000 a year. With a bit of math, we would be able to get the magic number of… 90,501. Plugging in a few more numbers would give us the following table:

Yearly sales of at least Number of retailers
$12,000 90,501
$25,000 54,686
$50,000 33,983
$100,000 21,118

Our power law formula also gives us a way of estimating the combined revenue of all the retailers making less than $1,000 a month (spoiler: around US$1 billion!).

So if we only considered online stores making more than $12,000 in sales a year, that comes up to about 90,500 retailers with a combined revenue of $197 billion in the U.S. That’s more than the population of the Seychelles!

So there we have it. Stay tuned for more number-crunching adventures! And feel free to ask any questions.

Image Credit: bfishadow

The Tao of Usain: 6 Business Lessons Learnt from the Fastest Man Ever

Usain celebrates his 100m win in fine style. 

What will he do next? I woke up this morning to find out that the fastest man of all time and recently crowned 2012 Olympic 100m champion had just declared his modest intentions to don the famous red jersey of none other than Manchester United Football Club, my boyhood team.

Said the Jamaican Lightning Bolt. ”People think I am joking, but if Sir Alex Ferguson called me up and said ‘Okay, let’s do this. Come and have a trial’, it would be impossible for me to say no.” Really? Usain, sprinting down the right flank and delivering a pin point cross for Rooney to coolly finish? Methinks that Bolt should be the face of Adidas instead of Puma, so deeply has he ingrained their tagline of “Impossible is Nothing”. Continue reading

How Local Businesses can Increase eCommerce Sales and Revenue

For most businesses, eCommerce provides the opportunity for local merchants to reach customers outside of their trading area, across the globe. However, in some cases the services offered require a local presence to fulfill, for example a hair salon, day spa, landscaper, or garden center. As one of those merchants you realistically can’t deliver on the transaction. In this article we will be looking at those situations and ways local merchants can get income from customers outside of their trading area. Continue reading