Math is reliable. But the human mind? Not so much.
For example, most customers believe that 125% more of something equals the same as 25% more.
It’s called the “Off By 100% bias,” and it’s a phenomenon where people underestimate the magnitude of percentage changes greater than 100%.
For example, shoppers assume that “150% more than 50 = 150% of 50,” when in fact 150% of 100 is 150, while 150% more than 100 is 250%.
But it’s not entirely the shoppers’ fault.
Believe it or not, it’s the copywriter’s fault.
Example of Off by 100% Bias
Let’s say you’re selling batteries.
If your battery lasts nine hours, and you want to compare it to the customer’s existing battery which only lasts four hours…
- Don’t say: Battery power that lasts 125% longer.
- Say: More than double your battery life.
Because if you say it lasts 125% longer, your customer may think it lasts only a quarter more.
…Unless you’re a skilled media buyer and you know that a 125% ROAS increase is more than double the revenue!
Psychology Tips to Keep in Mind
So the next time you use percentages, keep these two pricing psychology tips in mind:
- Make computing easy. Use discounts with round numbers. Buyers assume there are larger gaps between round numbers, so 5% seems much larger than 4.97%.
- Stack the discounts. For example, you might offer a 20% discount and then offer 25% on top. To the customer, it will feel like a 45% discount when it’s actually a 40% discount.
Make sense? Good. Now it’s time to adjust your copy a bit so you don’t lose customers to the Off by 100% bias!
