But Wait, There's More
Presenting bonuses separately can make an offer seem more attractive than presenting the whole package at once. The sales technique draws on the mental-accounting principle of segregating gains.
THE IDEA
Late-night infomercials often reveal a product first and hold back extras for a later announcement. The mental-accounting principle is to “segregate gains,” presenting each benefit separately. The bonus may come with the condition “if you call right now.” Thaler and Sunstein use this sales convention to introduce two additional tools of choice architecture: curation and “make it fun.”
When to use it
In sales, present the core product first, then announce additional bonuses as separate benefits to enhance perceived value.
In subscription pricing, offer a basic plan and then reveal additional features as 'limited-time' bonuses for early sign-ups.
In negotiations, concede additional items one at a time to make each seem like a special gain.
In software product demos, show basic features first and then unlock 'premium' features as a surprise to encourage upgrade.
FROM THEORY TO EVERYDAY LIFE
In practice
Infomercial for Kitchen Knives
An infomercial shows a set of kitchen knives for $19.99. Then, the announcer says, 'But wait! If you call right now, we'll also include a free vegetable peeler and a recipe book!' This segregates the gains, making the offer seem like a bigger bargain than if all items were presented together.
A MOMENT TO REFLECT
Put it to work.
How can you apply the 'segregate gains' technique to make your own proposals or offers more compelling?
Can you recall a time when you were influenced by a 'but wait, there's more' type of offer? How did it affect your decision-making process?
What are the ethical boundaries of using this heuristic in marketing? When does it become manipulative?
CONTINUE THE CONVERSATION
Source texts
- Nudge The Final Edition (Richard H. Thaler Cass R. Sunstein)