Design Your Customers’ Decisions

There is a vital lesson buried in the August 19, 2009 Jet Blue announcement that they were suspending sales of the $599.00 “All You Can Jet” promotion they’d debuted only seven days before. Any student of Behavioral Economics could have predicted that an “all you can eat” approach would inspire vastly different behavior than if Jet Blue had charged a lower fixed fee plus $1 per mile. Similarly, over a decade ago when AOL switched to a usage-independent flat price, connection time increased four times more than they anticipated.

“All you can eat” is an entirely different price than “very, very cheap.”

Traditional economics says that lowering the marginal price from $2 to $1 should have a similar effect to lowering it from $1 to $0 — but experience and experiments have both shown that the traditional demand curve acts in an odd manner when we reach $0 marginal cost. Jet Blue’s executives should have known better. But the Jet Blue management team is not alone.

Many executives assume their customers are more rational than they really are. For example, most leaders believe in enhancing the options given to customers, but increased choice can actually freeze decision-making by overwhelming the shopper. Excessive options is a key reason that an average of 60% of all online shoppers abandon their purchases mid-stream.

Read more at Design Your Customers’ Decisions – Harvard Business Publishing, 26 Aug 2009

Flickr photo credit: pawpaw67

By |2012-01-05T06:58:54+01:00August 27, 2009|Blog, Marketing|0 Comments

Small Business SEO: How to Launch That Web Site

It’s hard when you’re small. Everything seems bigger and more intimidating. Puppies get toppled by bigger dogs, middle schoolers are stuffed in lockers and small business owners back away in fear of this whole “Internet” thing. But like the chess player who grew up to be accepted by the Homecoming Queen, you, too, can overcome! The trick is to never let your fear stop you from your plans of World domination.

Though you may be smaller, there’s no shortage of opportunities for small and medium-sized businesses to compete in search. And that statement is made even more true when you consider that nearly 40 percent of searches include local intent and that the search engines are now using local results even when a user doesn’t implicitly ask for them. If you’re a small business, that’s an opportunity.

Okay, so say you’re a small business looking for search on a dime. You have your domain, your hosting is squared away, you have a few pages of content up and you’re finally ready to attract the world (or at least your city) to your Web site. Being small means you need to be smarter. It’s about doing all the little things that will pack the big rewards. Where do you start? …read more at Small Business SEO: How to Launch That Web Site – outspoken media, published 15 April 2009.

Flickr photo credit: Artelier Teee

By |2012-01-05T07:26:55+01:00April 20, 2009|Blog, Search Engine Optimization|0 Comments
Go to Top