Friday, May 29, 2009

Popularity sells.

Carl Bialik's article in the Wall Street Journal on the influence of Top 10 lists questions the wisdom of crowd-sourcing, but also highlights a proven tactic that marketers should consider to help drive incremental sales.

Popularity metrics abound online: Top 10 emailed stories on wsj.com. Most downloaded songs on iTunes. Yahoo's Top 10 user searches. Studies show that people decide what to do in part by following others. We are pack animals at heart, finding comfort in the herd.

Bialik's article cites instances in which marketers were able to dramatically shift customer preference and behavior by calling out those items and choices preferred by other customers.

Amazon has employed this successfully over the years ("people who bought this book also bought..."). However, Amazon makes this recommendation after you've made your initial selection. The dynamic Bialik reports on is the influence popularity has on the initial purchase decision.

I could see ways of applying this to many different categories. Ford dealers could post a sign on the roof of a Fusion letting me know that 63% of current Fusion owners bought the new Fusion. Best Buy could let me know that 57% of people who bought this flat panel combined it with this blu-ray player. United could tell me that 68% of people booking the JFK-SFO flight I'm considering purchased a one-day Premier Travel Option.

Timely and specific suggestions of what similar customers prefer can lift sales. How do I know this? I heard other people saying so.

1 comment:

Dave Daily said...

While attending the launch of United's new Travel Options kiosks at ORD and LAX earlier this week, I saw the pack animal mentality in full effect. As I stood in the concourse observing whether or not the "Wheel of Options" had stopping power, I was amazed to see busy people veer off their course and immediately join the rapidly forming line. Keep in mind, these folks at the back of the line couldn't possibly yet know what they were waiting for. They simply saw the spinning wheel, the long line of people, and were instinctively sucked in.

(Luckily, the wait is worthwhile because everyone who spins the wheel is a winner).