The IKEA Effect

Consumer Bias: The IKEA Effect

In a 2011 study, researchers observed consumers as they assembled IKEA boxes, folded origami, and built Lego pieces. They found that participants saw their “amateurish creations” as similar in value to the creations of experts. More interestingly, the participants expected others to share this view of their work.

Based on these results, the researchers concluded that people tend to value a product more if they were involved in its creation – even if they were originally uninterested in being involved. They termed this the “IKEA effect.”

The IKEA effect has a clear application in your marketing strategy: when you involve users in the process of creating your product or services, they are more likely to convert when you sell it to them.


How to Use the IKEA Effect to Boost Your Sales

  1. Involve consumers in the process of building your products.

Consumers can be involved by committing time to product development, by giving input in the process of its creation or improvement, or by investing money. An example of this in action is crowdfunding campaigns: when people contribute financially to the development of a product even before it is made, they are more likely to do everything to ensure it succeeds. While crowdfunded projects were massively successful, researchers have attributed its success not to the funds raised but to the community and sense of ownership the crowdfunding fostered.


  1. Give users the option of having your products customized for them.

Whether it’s the packaging or certain parts of the product itself, offering a customizable option involves your customers and potential customers more personally. A notable example of this is Coca-Cola’s Share a Coke campaign. When Coca-Cola launched this initiative and allowed users to have their own customized version of the Coke, sales exploded. And the results were almost instant. Just within the first year, Coca-Cola saw significant, measurable success:

  • The Share a Coke campaign was one of the most successful marketing campaigns ever in Coca-Cola’s history.
  • Over 500,000 photos were posted online using the #ShareaCoke hashtag.
  • Coca-Cola users created over six million virtual Coke bottles.
  • Coca-Cola gained 25 million Facebook followers.

Credit: WordStream

The Power Of Good Customer Service

The Power Of Good Customer Service

The Power Of Good Customer Service

Good customer service is essential for every business to attain its customers. Offering customers a positive welcome, helping them resolve their questions, and responding quickly will satisfy them and keep them happy. When you can keep up a good relationship with your customers, you will likely gain their loyalty, which will translate into regular sales and profit. For more on the power of good customer service and how to achieve it, here’s more.


The Benefits Of Good Customer Service

Many benefits come with offering good customer service. Not only does it do wonders for your brand reputation, but it also:


1.    You can build relationships with your customers

Good customer service will help you create more personal relationships with your customers. You will be able to build relationships through good customer service as you can keep up a conversation, ask them for feedback to improve your business, and ensure that they feel respected.

For instance, whether you offer quick responses or handwritten thank you cards, good customer service will go a long way and help you build more connections with your customers.


2.    Increase sales

Happy customers will likely lead to an increase in sales. If you satisfy them, then they will be happy to make a purchase.

An increase in sales is common in businesses that offer great customer service. When you offer good customer service as a business you will boost your brand reputation, which will attract new customers. New customers and happy current customers will guarantee to turn into more sales.


3.    More profit

If you can offer good customer service and make your customers feel happy, then they may be more willing to pay more money for the product.

Let’s say you have a business that is looking to increase its prices due to demand, production, and competition, then your loyal customers will be happy to pay more money if you ensure to maintain good customer service. Increasing your prices does not need to be a worry for your business. Instead, you will attain more profit.

Credit: New to HR