A Reminder About Offer Testing
Here’s a brief article from the McKinsey Quarterly on "behavioral economics" … or why people make certain spending decisions and how they approach them.
Each of the four principles/examples given relates to how a product is presented or priced in a retail context:
1. Make a product’s cost less painful.
2. Harness the power of a default option.
3. Don’t overwhelm consumers with choice.
4. Position your preferred option carefully.
Not each of these principles relates easily to fundraising. But the discussion reminded me of the importance of offer testing … and the huge importance of the order card (or donate page for you online fundraisers).
Are you doing enough offer testing?
Tom
Behavioral Science Q & A
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