Nudge

Octopus Energy went from £0 in revenue to £12 billion in 10 years. 

Today, on Nudge, I chat with their first employee Pete Miller, who explains how they used nudges to grow. 

Hear why they: 

1) Encourage customers to spin a wheel to reward metre readings. 

2) Give away free electricity at 4pm. 

3) Play you the number one song from the year you turned 14. 

4) And gave away 40,000 electric blankets during an energy crisis.

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Today’s sources: 

Shampanier, K., Mazar, N., & Ariely, D. (2007). Zero as a special price: The true value of free products. Marketing Science, 26(6), 742–757.

Shen, L., Fishbach, A., & Hsee, C. K. (2015). The motivating-uncertainty effect: Uncertainty increases resource investment in the process of reward pursuit. Journal of Consumer Research, 41(5), 1301–1315

Skinner, B. F. (1938). The behavior of organisms: An experimental analysis. Appleton-Century-Crofts.

The Enhanced Games, hosted in Las Vegas last Saturday, made a bold claim.

With the use of performance-enhancing drugs, enhanced athletes would break not just personal records but world records. 

And the end goal? To sell those same drugs to the masses. 

It’s arguably the biggest marketing stunt of the year so far, and today on Nudge I reveal the psychology behind it. 

Did the Enhanced Games succeed? Listen to find out. 

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Today’s sources 

Landy, D., & Sigall, H. (1974). Beauty is talent: Task evaluation as a function of the performer's physical attractiveness. Journal of Personality and Social Psychology, 29(3), 299–304.

Miller, A. G. (1970). Role of physical attractiveness in impression formation. Psychonomic Science, 19(4), 241–242.

Mujika, I., & Burke, L. M. (2019). Swimming fast when it counts: A 7-year analysis of Olympic and World Championships performance. International Journal of Sports Physiology and Performance.

Nicolau, J. L., Mellinas, J. P., & Martín-Fuentes, E. (2020). The halo effect: A longitudinal approach. Annals of Tourism Research, 83, 102938.

Nisbett, R. E., & Wilson, T. D. (1977). The halo effect: Evidence for unconscious alteration of judgments. Journal of Personality and Social Psychology, 35(4), 250–256.

In this episode, I chat to Pete Miller, part of the co-founding team at Octopus Energy, who helped design one of the most recognisable new logos in Britain. 

Hear how Octopus used two proven psychological principles to build a logo people remember (and why those same principles are being ignored by most of the industry).

You'll learn:

- Why a distinct logo made one beer taste 5% better

- How a 1933 German study explains why Octopus stands out

- Why brands from McDonald's to KFC give their logos human faces

- And what happened when researchers asked people to turn off a robot 

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Read Aaron’s book: ⁠https://thethingswelove.com/⁠

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Today’s sources: 

Bartneck, C., Van Der Hoek, M., Mubin, O., & Al Mahmud, A. (2007). "Daisy, Daisy, give me your answer do!": Switching off a robot. Proceedings of the 2nd ACM/IEEE International Conference on Human-Robot Interaction, 217–222.

Shotton, R. (2017). The choice factory: 25 behavioural biases that influence what we buy. Harriman House.

Shotton, R. (2023). The illusion of choice: 16½ psychological biases that influence what we buy. Harriman House.

Von Restorff, H. (1933). Über die Wirkung von Bereichsbildung im Spurenfeld. Psychologische Forschung, 18, 299–342.

In Singapore, a group of runners charge 50p per kilometre to run on strangers' Strava accounts. 

That's how far people will go to look fit online. 

This episode explains the psychology behind why being watched changes everything.

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Today’s sources: 

Gerber, A. S., Green, D. P., & Larimer, C. W. (2008). Social pressure and voter turnout: Evidence from a large-scale field experiment. American Political Science Review, 102(1), 33–48.

Sallis, A., Harper, H., & Sanders, M. (2018). Effect of persuasive messages on National Health Service organ donor registrations: A pragmatic quasi-randomised controlled trial with one million UK road taxpayers. Trials, 19, 513.

Service, O., & Gallagher, R. (2017). Think small: The surprisingly simple ways to reach big goals. Michael O'Mara Books.Triplett, N. (1898). The dynamogenic factors in pacemaking and competition. American Journal of Psychology, 9, 507–533.

Professor Richard Wiseman searched for the world’s funniest joke. 

He found it. 

But it wasn’t what he expected. 

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Richard’s book Quirkology: https://amzn.to/4shYOJ6 

Richard’s book 59 Seconds: https://amzn.to/3Pf9pWI 

Richard’s SubStack: https://richardwiseman.substack.com/ 

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Today’s sources: 

Asch, S. E. (1955). Opinions and social pressure. Scientific American, 193(5), 31–35.

Crum, A. J., & Langer, E. J. (2007). Mind-set matters: Exercise and the placebo effect. Psychological Science, 18, 165–171.

Wiseman, R. (2009). 59 seconds: Think a little, change a lot. Knopf.

Wolff, H. A., Smith, C. E., & Murray, H. A. (1934). The psychology of humor: I. A study of responses to race-disparagement jokes. Journal of Abnormal and Social Psychology, 28, 345–365.