Labelling affects customer decisions. Here’s how to get it right
The label we give something has more impact than we might imagine, and has dramatic implications for whether we successfully influence our customers. Not only does it provide information about what the product or service is, a label comes with pre-existing psychological associations that can work for or against a customer’s desire to engage with us.
Take using a brand label, for instance. People told their cocktail contained Red Bull were more likely to believe themselves to be — and act — intoxicated, than those who were given the same cocktail without the brand association.
Labels in letters work, too. The NSW government was able to increase payment of overdue fines by $1 million by using a prominent “Pay now” stamp together with “You owe”, rather than “Act Now” accompanied by “Amount owed”.
Let’s not forget the use of evocative labels, either.