Hey 👋 The Crew here.
When we think of typical “millennial in a midlife crisis” activities, we think of:
- Subscribing to all available streaming services.
- Buying a NutriBullet.
- Enrolling in a dancing class.
What would you add?
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The Mere token effect
Pop quiz time! You’re offered two options:
- You get $900 in one year.
- You get $300 in one week.
Which option would you choose?
If you were like most respondents in Oleg Urminsky and Ran Kivetz’s study, you’d pick the second option. Better to have the cash sooner, right?
However…
The duo then did something interesting. They offered their respondents both options again—but now they’d get $50 immediately—and the rest in the same time frame.
Now, the respondents picked the first option more.
The two authors realized that we can significantly impact perceptions, concerns, and decisions over the long term by offering much smaller tokens or gestures in the short term.
They called this phenomenon the “mere token” effect.
Since it has a huge effect on human behavior, a lot of marketers use these tokens to boost their sales and conversions in various ways.
Here are three examples…
Three ways you can leverage the Mere token effect
1) Emphasize short-term promises
Harsh reality: It’s hard to convince people to commit to something that’s not tangible.
Otherwise, people wouldn’t need incentives to return empty plastic bottles for cash so they can be recycled and reduce waste.
And it’s the same with whatever you’re selling.
That’s why—instead of saying your skincare product helps reduce wrinkles over time—you show an image of a wrinkle-less person. Or display the end results instead of the process.
… Especially if your product takes time before it shows an effect.
This is a nice example:
The label says whiter teeth in 3 days. That’s the first thing you’ll see in the store.
But the fine print in this ad says “when brushing twice daily for 6 weeks.”
There’s a reason why you won’t see that on the label.
2) Add Buy now, pay later (BNPL) options to your store
With BNPL, your “mere token” effect is actually the first low payment you offer.
You show your audience that they can take the product home immediately while deferring payment—and that makes the purchase feel more accessible and less burdensome.
Additionally, splitting payments is often seen as a token gesture towards the consumer— allowing them to “enjoy” your product or service despite not having the lump sum necessary.
3) Incentivize actions with gifts and discounts
We saved the most obvious one for last.
Every action that requires some effort from your audience probably won’t happen unless you enter gifting mode.
For every request you ask of your audience, make sure you offer something in return.
Do you know that fintech services like Wise offer you cash if you get someone to sign up and make a transaction? Or that Uber offers free rides or discounts if you refer new users?
That’s the token they give you for helping them acquire new customers.
Those are just top-of-mind examples. Think also:
- Gifts you get when you refer new customers—like Stacked Marketer does.
- Discounts once you subscribe to a brand’s newsletter.
Giving away small gifts to your loyal audience for new customers or better lifetime value sounds like a no-brainer, right?
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SEO: Want your website to get indexed? Make it mobile-friendly until July 5th. Otherwise, bots might just skip it. That’s according to Google’s John Muller, who posted this earlier this week.
TIKTOK: …is trying to find ways not to get banned in the US. The most recent idea—a US-only clone of its powerful recommendation algorithm that could be “more palpable to American lawmakers who want to ban it.” Hmm…
PODCAST ADS: Hold your earbuds and headphones. Podcast listeners are increasing every year and—alongside them—ad revenue. Is it a good time to start testing out this marketing channel? This report looks into stats and data that might back it up.
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ICYMI, last time we looked at the Salience Effect.
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