Hey there 👋 – Abhi here!
Happy Thursday to the 17,945 marketers reading this newsletter.
It’s 7 am out here in Mumbai, India, and I’m finally wrapping up this piece! Sorry it’s reaching you all a bit late. I’m exhausted with all this traveling and jetlagged as hell…
Regardless, I think this piece today is my best so far! We’re going to break down the Robinhood Effect and look at how they’ve made investing money the easiest game you’ve ever played.
Estimated Reading Time = 6 minutes
My Pick Of The Week
As a marketer, you’ve got to keep learning.
And this podcast will help you do exactly that…
I used to love Airbnb.
But after hearing a recent episode of Marketing Against The Grain, where Kieran and Kipp break down Airbnb’s Brand Marketing Strategy, I love Airbnb even more.
The CMO and SVP of Marketing at Hubspot, take some of the most confusing aspects of Airbnb’s marketing tactics and make them look so simple. So tactical. It’s absurd.
And they do this with each and every episode. They never miss the mark.
Take my word for it, and give this podcast a shot. You won’t regret it 🙂
The Robinhood Effect
Spending money is supposed to hurt.
But with the Cashless Effect I covered last week and the gamification of money we see today, spending has never been easier.
Look at Robinhood – a trading and investing app known for its user-friendly UX.
They gamified the app so much (and so strongly) that the Massachusetts Securities Division even launched legal action.
I don’t know about you, but that was my cue to start studying the app…
Hours into it, staring at my friends using the app, I noticed 7 simple yet powerful elements of gamification and design. Here’s what they are (and how you should – or should not – use them for your business):
1/ Celebrate The Small Wins
Robinhood gets rid of confetti feature amid scrutiny over gamification of investing
Whether it’s their first trade or their first purchase from you, celebrate it.
This sets the tone that you’re with them, rooting for them, and compels your users to keep going. It’s the most basic form of positive reinforcement, and the ROI is high.
2/ Highlight The Bigger Trends
The Top Movers List
By showcasing its Top Movers list under the search bar, Robinhood is doing 2 things:
• Selling the dream outcome
By showing its users the largest upward swings, Robinhood shows its users the potential of investing and reduces the perceived risk of doing so.
Take a look at the screenshots above. You’ll immediately notice that the stocks are predominantly in the green – making the users feel more confident in the markets.
Now that may be a coincidence, but assuming it’s not, it got me thinking…
As a fellow marketing psychologist, I wonder if a couple of stocks in the red may increase confidence in these recommendations. Takes me back to the blemishing effect.
• Simplifying the decision-making process
First-time investors usually lack the information and confidence to make their investments. Robinhood solves both these problems with its recommendations.
Imagine you’re a first-time investor. You have the money you’re eager to invest but don’t know where to start. Suddenly you see a list of stocks that are rapidly growing.
What do you do?
I know what I would do, and it’s a lot easier than actually studying the market.
3/ Pay Attention To The Colors
UX Teardown: Robinhood
Looking at that chart above, you’ll immediately notice a stark difference.
Robinhood, Yahoo Finance, and Google Finance don’t use Pure Red in their interfaces.
It’s all a variation. And that variation goes way beyond simple design.
Now, Red is a color that is generally associated with failure. And we can see why Robinhood would not want users to make that association.
So what do they do? Make that Red a bit more Orange.
Orange is associated with optimism and energy – the ideal association for the brand.
But Robinhood’s color psychology doesn’t stop here. Think about their logo for a second.
What Is Robinhood?
If you ask the people over at Robinhood on why they picked this bright jungle green, the answer is pretty straightforward:
Rather than just your typical primary green, we wanted ours to be a little bit more vibrant. I think that it speaks to a younger generation.
But beyond its eye-damaging brightness, I think this green plays a bigger role…
The color can be interpreted in one of two ways:
- A subconscious feeling of wealth as its associated with the green dollar bill
- A subconscious feeling of calm cause of its association with nature
Either way, that’s right where Robinhood wants its users to be. Wealthy and calm.
A couple click-worthy resources before we move on…
🚨 Looking at how you all enjoy the marketing psychology guides of specific companies, I want to work with brands and break down their psychological triggers in public.
If you’re a brand, I’ll look into the psychological elements that are working in your favor and triggers you can add. All while giving you exclusive access to my audience.
If you’re interested in being featured, apply for a partnership opportunity here 🤝
🗞 Picture the Harvard Business Review, but for growth marketing:
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4/ Eliminate The Clutter
Fidelity vs Robinhood’s Gamified Interface
When you keep the design minimalistic:
- on-screen elements carry more weight (the colors will make a bigger impact)
- lesser information means lesser time spent making the decision
Think about it in terms of Hick’s Law – the lesser the choices, the lesser the cognitive load, and the lower the level of future disappointment for the users.
The holy trinity for Robinhood that leads to nothing but quicker decisions.
5/ Constant Movement
Whether it’s the theatric change in prices or the throbbing indicator on the graph, the constant movement keeps the users gripped and on their toes.
Natasha Dow Schüll, an expert on the intersection between gambling addictions and design, mentions that the constant movement builds a sense of urgency. It acts on our fear of missing out and compels us to take immediate action.
Every time the price changes, we ask ourselves, “Is this the best time to buy?”
6/ Power of Personalization
Kick off the New Year with First Trade Recommendations
Targeting new investors, who lack the guidance and confidence to start investing their money, Robinhood launched First Trade Recommendations earlier this year.
Depending on the user’s investing experience level and risk appetite, Robinhood recommends a certain portfolio. This eliminates the friction associated with starting your investing journey and makes it as easy as clicking a few buttons.
No research needed, am I right?
7/ Immediate Execution
Put in the price. Swipe up. And your order is complete.
This seamless, 3-step process takes me back to the Apple Store.
It’s The Cashless Effect – and the power of speed – in action, all over again.
No time to think. Digital money. Put those together, and you’re bound to spend more.
For businesses like Robinhood, that’s great news!
But it might not be the same for their users…
It’s Only Acceptable If It Benefits Everyone
Regardless of how impressive Robinhood’s design strategy may be, I think it’s essential that we look for those win-wins. Those healthy nudges in design that benefit both your business and your users. Please don’t harm your users for the money.
Play the long-term game. Win their trust first (and their money will keep coming).
That’s all for this Thursday. 1 marketing breakdown & 3 tactics to get you started.
If you’re not finding it valuable, please consider unsubscribing – no hard feelings!
But if you’re enjoying this newsletter, the best compliment you could pay me would be to share it with one person.
See you again next week,
Abhishek “Call Me The Robinhood Of Marketing” Shah
