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PLAIN TALK BUSINESS


Check where the extra sales from a discount come from
A UK field experiment with 110,000 drivers found that a 40% lower price increased the electricity that drivers bought through an app by 117%. About half of that increase came from drivers who left other payment apps.
24 hours ago4 min read


Tell your AI sales chat to give reasons for each recommendation
When an AI chat recommended a book, 61.2% of people chose it. When the same book was only first in a list, 22.4% of people chose it.
2 days ago5 min read


Give each customer the right discount size to increase revenue
A test with more than 20 million customers found that a discount chosen for each customer increased revenue by 4.5%. The new method sent small or large discounts. It did not send the same medium discount to all customers.
Oct 124 min read


Be careful with late fees, because a small fine can make people late more
When day care centers in Israel added a small fine for late pick-up, late pick-ups almost doubled. They stayed high after the fine was removed.
Oct 102 min read


Show your highest-value option first, because the first number sets the scale
In an MIT test, students wrote the last two digits of their social security number before they bid on products. Students with high numbers bid 216% to 346% more.
Oct 102 min read


Give customers a head start on loyalty cards
At a car wash, a 10-stamp card with 2 free stamps was finished by 34% of customers. An 8-stamp card with no free stamps was finished by only 19%, although both needed 8 washes.
Oct 102 min read


Show fewer choices at the point of sale, and test the result
In a store test, 24 jams brought more people to the table, but only 3% bought. With 6 jams, 30% of the visitors bought.
Oct 102 min read


Give a small, personal extra, and customers give back more
In a restaurant test, one mint with the bill raised tips by about 3%. Two mints raised tips by about 14%. One mint plus a second one offered as a personal extra raised tips by 23%.
Oct 102 min read


Test small design details in your offer, because they can matter as much as price
A lender in South Africa mailed 53,000 loan offers. A photo of a woman raised loan take-up by men as much as a large rate cut. Fewer example loans also helped.
Oct 102 min read


Reply to new sales leads within one hour
An audit of 2,241 US companies found that the average reply to a web lead took 42 hours. Firms that replied within one hour were nearly seven times as likely to qualify the lead.
Oct 102 min read


Use "free" with care, because it is stronger than a low price
When a Hershey's Kiss cost 1 cent and a Lindt truffle cost 15 cents, 73% chose the truffle. When both prices went down by 1 cent, 69% chose the free Kiss.
Oct 102 min read


Add a third option, and more buyers choose your best plan
In a classroom test, a print-only offer at the same price as print plus web made 84% of students choose print plus web. Without that offer, only 32% chose it.
Oct 102 min read


Test a price that ends in 9, because it can sell more than a lower price
In a clothing catalog test, a dress priced at $39 sold more than the same dress at $34. It also sold more than the dress at $44.
Oct 102 min read


Pair each product with what customers already buy together
A field experiment at a large US online retailer tested 4 ways to choose add-on offers. Items that customers already buy together won, and a learned policy promised 35% more revenue.
Oct 103 min read


Send an apology with a small credit, not words alone
A field experiment with 1.5 million Uber riders tested apology emails after late rides. Only apologies with a $5 coupon raised later spending.
Oct 103 min read


A review reward brings more honest reviews, not more sales
An Airbnb field experiment offered guests a $25 coupon for a review. Reviews went up by 53% and ratings became more honest, but total sales did not change.
Oct 103 min read


Offer a pay-later option at checkout, but count the cost
A field experiment at a German online store showed a pay-later option at checkout to random shoppers. Sales went up by 20%, mostly from more buyers.
Oct 103 min read


Rank products for each shopper, not one bestseller list for all
A 2-year field experiment with 9 million Wayfair shoppers tested personal product rankings. Purchases went up by 2.4%, and returns went down.
Oct 103 min read


Test the AI pricing tool your marketplace already gives you
Airbnb hosts who used a free AI pricing tool cut prices by 5.7% but earned 8.6% more per day. The sellers who needed it most used it least.
Oct 103 min read


Contact customers after the sale and ask what to improve
In a 2-year field experiment, small firms that asked customers for feedback earned 62% more revenue. Customers they never asked also spent more.
Oct 103 min read
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