What to use when offering discounts?

Using percentage (%) or real value (R$) is certainly a doubt that silently torments – or will torment – ​​the life of any professional who doesn't know what to use when offering discounts.

For example, let's say you were hired to create a campaign whose objective is to advertise a discount on a Spider-Man DVD. The normal price of this product is R$50 and the discount is 20%.

Which of the following two calls would you use in your campaign?

Buy the Spider-Man DVD before 11pm today and save R$10!

Buy the Spider-Man DVD before 11pm today and enjoy a special 20% discount!

So, what would be your choice? Write down your answer and keep reading to find out which would be the best option and never have that doubt again.

The Rule of 100

My first contact with the Rule of 100 was at the end of 2016, when I finished reading the – excellent – ​​book Why Things Catch On, by Jonah Berger. After explaining in detail how to apply the Prospect TheoryJonah suggests that the doubt between using percentage (%) or real values ​​(R$) in discount ads can be resolved using a very simple formula:

Saving Value > 100 = Real Value (R$)

Saving Value < 100 = Percentage (%)

The reason? According to Prospect Theory, each and every purchasing decision happens through a (unconscious) comparison of importance.

In the scenario presented at the beginning, for example, people will compare the amount saved with everything they could buy with it and, therefore, save R$10 because it doesn't seem very attractive.

After all, it's only ten reais, right?

But by showing that the discount is 20%, people will compare the discount on the DVD with the discount on all the other products they viewed during the week, regardless of the amount saved.

Wow! 20% off? It's not every day that you find this kind of relaxation on a DVD!

Did you understand the difference?

Of course, this may all seem insignificant, but it is worth remembering that cognitive studies related to consumer behavior never tire of proving that There is nothing “insignificant” when it comes to the human brain.

To find out more about the Prospect TheoryI highly recommend reading the book Why Things Catch On. In addition to giving several valuable tips such as the Rule of 100, he brilliantly explains how to adopt the strategy STEPPS (Social Proof – Triggers – Emotion – Public – Practical Value – Story) to make any type of product or campaign viral.

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