Did you know, that if you want someone to do you a favor often the best way to get it is by doing something for them first? Once they’ve seen you give them a gift or perform an act of kindness toward them, they’re more likely to do you one in return.

Having ulterior motives for doing favors isn’t exactly ethical, but it does work. Why is that? It’s down to a psychological persuasion principle known as reciprocity.

What is Reciprocity?

Reciprocity is the social norm of responding to a positive action with another positive action. …

No matter your field of expertise, every day you’re presented with seemingly impossible challenges. Issues that you or your company can’t seem to crack, even after weeks, months, or years of trying.

How do you approach these impossible challenges? Do you have a strategy that you follow, or do you just hold a brainstorming session and hope for the best? Do you tell yourself, “Think harder!” and pray inspiration will strike?

There’s a better way to solve problems like these — improve the quality of your thinking. Better thinking, problem-solving, and reasoning are skills. …

Have you ever visited a Costco Warehouse? If so, you’re probably familiar with their free samples. And if you’re not, and there’s a Costco nearby, I recommend you check them out. Customers love Costco’s free samples, so much so that the brand is inseparably linked to their samples policy.

These sample booths are dotted all over Costco. But why do these stores give up so many square feet to free sample booths when that space could be used to sell products instead?

It’s because companies know that sampling can drive a host of benefits — from creating new…

Have you ever heard of the Envelope Budgeting Method? It’s a financial management system built on putting cash into separate envelopes for different parts of their budget. For example, I might put $200 in an envelope marked “groceries” or $50 into an envelope marked “water bill.” This budgeting method can be useful for those who feel their money seems to “slip away” on small purchases.

There are a few reasons why using cash might make it easier for people to stick to a budget. One is a behavioral science principle called the Cashless Effect.

What is the Cashless Effect?

The Cashless Effect states that the…

“People spend money where and when they feel good.”

— Walt Disney

Whether you’re designing a single touchpoint or trying to shape an entire customer journey, you want to create an experience that persuades, influences, and inspires action.

But there’s something else, an “X factor,” that the best customer experiences share. What is it? Emotion.

Emotion is the X factor of great customer experiences.

Have you ever walked into a mall or a big-box store — like a Walmart, Target, or IKEA — and found yourself shopping for hours instead of minutes?

For example, if you’ve visited an IKEA warehouse, you might’ve noticed that there are no (working) clocks or windows once you’re inside the store. Most malls have limited skylights and few windows. This exclusion of daylight is an old trick borrowed from casino design. Many casinos don’t have clocks or windows, in the hope that gamblers will lose track of how long they’ve been at the table.

Why? It’s because casinos, malls…

If there’s a company synonymous with a seamless customer experience, it’s Netflix. Over the past two decades, the platform has become the default entertainment source for many. Fifteen percent of the world’s web traffic goes to Netflix, and during the first few months of the pandemic, streaming traffic increased another 12%.

Netflix has grown from a plucky startup to a company with a market value of $247 billion. And that growth mainly came from subscriber acquisition. As of 2020, the platform had more than 200 million total customers. …

Founded in 1943 by Ingvar Kamprad, IKEA sells ready-to-assemble furniture and home accessories. What started as a vision to bring interior design to the masses has grown to 433 IKEA stores operating in 52 countries. It’s been the world’s largest furniture retailer since 2008. To put those numbers into perspective, the brand sells a set of its Billy bookcases every ten seconds. It’s said that one in ten Europeans were conceived on an IKEA bed.

You might be familiar with the numbers, but did you know that IKEA uses psychology to help drive its success?

1. Scarcity Effect and the Thrill of Novelty in Bulla Bulla

IKEA uses a merchandising technique…