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Heuristic Hacks

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Mere Token Effect

When we are making decisions involving payouts, we tend to prefer the quick short-term payout option over the long-term larger option. Under these circumstances, the addition of a small but immediate additional increase in payout makes us favor the larger-longer payout option. The addition of this small token amount makes us choose the longer-term option. The likelihood of choosing the longer-term option becomes higher if there are huge differences in the payout option.

How to hack Mere Token Effect?

This heuristic can be used by companies to motivate people to make more purchases or invest in a longer commitment. In some circumstances, Mere Token Effect can lead us to invest in longer-term, more rewarding payouts. For example, a bank that offers you a bonus for opening a checking account that requires you to make a certain amount in deposits and maintain a certain daily balance minimum may encourage you to save and become more aware of your finances.

However, if we allow Mere Token Effect to subconsciously influence our decision, we may make choices that are irrational and influenced by those that do not have our best interest in mind. Think of the coffee shop punch card with the buy 9 drinks, get the 10th drink FREE.

We can hack this heuristic by stopping and asking ourselves 3 important questions:

  1. Why is a token is being offered?
  2. What might be the offerer’s motive?
  3. What does the alternative option look like?

Hacking Mere Token Effect to increase charitable donations

A charitable organization that needs donations can hack Mere Token Effect by offering tokens for larger donations. The addition of a small token can sway donors to donate larger amounts that can make a big difference in the success of your organization.

For example, if someone donates $50 or more to the fund, the charity can ship them a free tee-shirt, button, mug, etc. Major donors can be incentivized by offering recognition, access to a VIP donors group, and in the case of larger donations, putting their name on the result.

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Hacking Mere Token Effect for improved animal welfare

Similarly, we can hack Mere Token Effect to increase the number of animals in need that are protected and given good homes. It is a big commitment to adopt a pet and requires sufficient financial resources for food, supplies, vet visits, and pet sitters if you work or go away. According to the ASPCA, there are over 6.3 million animals entering U.S. shelters every year.

Shelters can hack this heuristic by reallocating monies to incentivize adoption. Perhaps they can offer free vet care for 1 year or collect donations for supply kits to send home with the animals. These small tokens may lead more people to make a larger investment in having a pet and providing more animals with safe homes.

Hacking Mere Token Effect when using the punch card

Now sometimes we need to hack Mere Token Effect because companies are leading us to make additional purchases we don’t need. In this case, companies are offering tokens, like ‘buy 10, get 1 free’ punch cards for coffee drinks, appetizers, waxing services, etc. You can find Mere Token Effect being leveraged in virtually any consumer goods sector.

This is when we need to stop ourselves and reflect on our motivation for purchase. Will we buy that coffee drink anyway? Is there a cheaper coffee shop with equally good coffee? If we were going to go for the 10th eyebrow wax at that location anyway, it could be a good saving, but if we were going to use an at-home kit, we could save money in the long run.

Hack Mere Token Effect NOW!

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