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The legendary advertising guru—Ogilvy UK’s vice chairman—and star of three massively popular TED Talks, blends the science of human behavior with his vast experience in the art of persuasion in this incomparable book that decodes successful branding and marketing in the vein of Freakonomics, Thinking Fast and Slow, and The Power of Habit.
When Rory Sutherland was a trainee working on a direct mail campaign at the famed advertising firm OgilvyOne, he noticed that very small changes in design often had immense effects on the number of consumer responses. Yet no one he worked with knew why. Sutherland began taking stock of each effective yet nebulous trick—”the thing which has no name”—he discovered. As he rose in the advertising industry, he began to understand why these things had no name: no one was interested in quantifying them, cataloguing them, or really investigating them. So, he did it himself.
Like classic behavioral economists Daniel Kahneman and Richard Thaler, Sutherland peels away hidden, often irrational human behaviors that explain how the world around us functions. In How to Be an Alchemist he examines why certain ads work and the broader truths they tell us about who we are. Why do people prefer stripy toothpaste, and how might that help us design retirement plans that young people would actually buy? Why do we think orange juice is healthy, and how does the same principle guide our feelings about nuclear reactors? Why do budget airlines advertise services they don’t offer—and what might insurance companies learn from them about keeping healthcare costs low?
Filled with startling and profound conclusions, Sutherland’s journey through the world of advertising and its surprising lessons for human behavior is insightful, brilliant, eye-opening, and irresistibly fun.
387 pages, Kindle Edition
First published May 7, 2019
Being slightly bonkers can be a good negotiating strategy: being rational means you are predictable, and being predictable makes you weak. Hillary thinks like an economists, while Donald is a game theorist, and is able to achieve with one tweet what would take Clinton four years of congressional infighting. That's alchemy; you may hate it, but it works.So Alchemy is chaotic lunacy. And I don't know that "it works"...despite the rest of the book. On the surface, and the whole, so many of the successes illustrated seem like accidents. (That quote was painful to type. T as a "theorist"?! And no rational adult can ever not feel immature using that term to twit something - guess that pegs me, right? But you might be wrong...)
1. Churchgoers are more likely to be married, less likely to be divorced or single and more likely to manifest high levels of satisfaction in their marriage.Well, I did say he was British. Here's where the rational reader steps in: the Heritage Institute is a profoundly right-wing entity with an agenda and would it surprise anyone to know that the questions might be skewed to achieve the results desired? Sutherland says "Religion feels incompatible with modern life because it seems [my emphasis] to involve delusional beliefs, but if the above results [again, know the source before citing] came from a trial of a new drug, we would want to add it to tap water. Just because we don't know why it works, we should not be blind to the fact that it does." He used one of those typographical footnotes to say "Take that, Dawkins!" Mind you, I'm 22 pages into this book and thinking "what a pile of woo he's peddling!" I suspect Sutherland does not know of the 2006 STEP Project ("Study of the Therapeutic Effects of Intercessory Prayer") that found no difference between prayer and placebo in coronary artery bypass surgery patient recovery...except that there was a slight increase... in complications ... in patients who knew they were being prayed for! Okay...it did get better, if a little more than scattered in doing so.
2. Church attendance is the most important predictor of marital stability and happiness.
3. The regular practice of religion helps poor people move out of poverty. Regular church attendance, for example, is particularly instrumental in helping young people escape the poverty of inner-city life.
4. Regular religious practice generally inoculates individuals against a host of social problems, including suicide, drug abuse, out-of-wedlock births, crime and divorce.
5. The regular practice of religion also encourages such beneficial effects on mental health as less depression, higher self-esteem and greater family and marital happiness.
6. In repairing damage caused by alcoholism, drug addiction and marital breakdown, religious belief and practice are a major source of recovery.
[And...wait for it...]
7. Regular practice of religion is good for personal physical health: It increases longevity, improves one's chances of recovery from illness and lessens the incidence of many killer diseases.
The reason for this is that with one person we look for conformity, but with ten people we look for complementarity.Good stuff, and puts into words something already in my mental toolbox that was yet unnamed. He does talk about accidents being a part of discovery: "for all we obsess about scientific methodology, [Andre] Geim [discoverer of graphene] knows it is far more common for a mixture of luck, experimentation and instinctive guesswork to provide the decisive breakthrough; reason only comes into play afterwards." Isaac Asimov is credited with saying "The most exciting phrase to hear in science, the one that heralds new discoveries, is not "Eureka!" (I found it!) but "That's funny ..."" But oddly, in the same section, he talks about businesses and politics becoming more boring and sensible than they needs to be. And we "approve reasonable things too quickly, while counterintuitive ideas are frequently treated with suspicion." And on the next page, he observes "We should test counterintuitive things - because no one else will." The lesson is that the disruptive one will get attention, whether good or bad, and sometimes the disruption works.
Create a name, and you've created a norm.
One of the reasons why customer service is such a strong indicator of how we judge a company is because we are aware that it costs money and time to provide. A company which is willing to spend time after you have bought and paid for a product to make sure you are not disappointed with it is more likely to be trustworthy and decent than the one which loses all interest in you as soon as the cheque has cleared.And it's often the small touches that signal perceived cost. My wife includes little gift bags with her customers' orders. They cost her fractions, and the varying contents are often things the customer would never look twice at in a store, but those customers treasure the thought...and cost...and care that goes into including those trinkets. As Sutherland says, "costliness carries meaning".