Drive donations by leveraging the peanuts effect

To enhance a product-led growth (PLG) model using United's purchase tactic, leverage the peanuts effect by offering small, low-cost add-ons or upgrades during the user's journey through your product.

For example, you could present users with the option to unlock premium features or additional storage for a nominal fee, framing it as a small expense compared to the overall value they're receiving. This approach can increase user engagement and monetization without creating significant friction in the user experience. Ensure that these small purchases provide immediate value to the user, reinforcing the benefits of your product and encouraging further exploration and adoption.

To improve conversion rates using United's purchase tactic, implement the peanuts effect in your pricing strategy and checkout process.

Present small, additional purchases or upgrades alongside your main product or service, framing them as insignificant expenses compared to the primary purchase. For instance, offer a low-cost warranty extension or a small donation to a related cause during checkout. This can increase average order value without significantly impacting the customer's perception of the total cost. A/B test different price points and presentation methods to find the optimal balance between conversion rate and additional revenue generated.

To optimize your website using United's purchase tactic, incorporate the peanuts effect throughout the user journey to encourage small, incremental purchases or actions.

Implement strategically placed upsell opportunities that feel insignificant compared to the user's primary goal or purchase. For example, offer low-cost digital downloads, small donations to related causes, or minor upgrades to subscriptions. Use visual cues and copy that emphasize the minimal impact of these additions. Additionally, consider applying this tactic to non-monetary actions, such as encouraging users to complete profile information or share content by framing it as a small, easy task compared to their overall interaction with your site.

To A/B test United's purchase tactic, create two versions of your checkout or upgrade process: one with the peanuts effect implemented (version A) and one without (version B).

In version A, present a small additional purchase or donation option, framing it as insignificant compared to the main purchase. In version B, maintain your standard checkout process without this option. Randomly assign users to each version and measure key metrics such as conversion rate, average order value, and the percentage of users who opt for the additional purchase. Also, track user behavior and gather feedback through post-purchase surveys to understand the impact on user experience and perception of value. Analyze the results to determine if the peanuts effect tactic leads to better outcomes for your specific product and user base.

United's purchase tactic improves the user experience by leveraging the peanuts effect to make additional contributions or purchases feel painless and even rewarding.

By framing a small donation or upgrade as insignificant compared to the larger purchase, users are more likely to perceive it as a minor addition that doesn't impact their overall spending. This can reduce decision fatigue and make users feel good about contributing to a cause or enhancing their purchase without significant financial stress. Additionally, this tactic can provide users with a sense of agency and the satisfaction of supporting sustainability initiatives or improving their product experience with minimal effort, potentially leading to increased customer satisfaction and loyalty.