Nudge

Octopus Energy went from £0 in revenue to £12 billion in 10 years. Today, on Nudge, I chat with their first employee Pete Miller, who explains how they used nudges to grow. Hear why they: 1) Encourage customers to spin a wheel to reward metre readings. 2) Give away free electricity at 4pm. 3) Play you the number one song from the year you turned 14. 4) And gave away 40,000 electric blankets during an energy crisis. --- Become an FSB member: https://get.fsb.org.uk/nudge/ Unlock the Nudge Vaults: https://www.nudgepodcast.com/vaults Subscribe to my newsletter: https://www.nudgepodcast.com/mailing-list Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew/ --- Today’s sources: Shampanier, K., Mazar, N., & Ariely, D. (2007). Zero as a special price: The true value of free products. Marketing Science, 26(6), 742–757. Shen, L., Fishbach, A., & Hsee, C. K. (2015). The motivating-uncertainty effect: Uncertainty increases resource investment in the process of reward pursuit. Journal of Consumer Research, 41(5), 1301–1315 Skinner, B. F. (1938). The behavior of organisms: An experimental analysis. Appleton-Century-Crofts.

In this episode, I chat to Pete Miller, part of the co-founding team at Octopus Energy, who helped design one of the most recognisable new logos in Britain. Hear how Octopus used two proven psychological principles to build a logo people remember (and why those same principles are being ignored by most of the industry). You'll learn: - Why a distinct logo made one beer taste 5% better - How a 1933 German study explains why Octopus stands out - Why brands from McDonald's to KFC give their logos human faces - And what happened when researchers asked people to turn off a robot --- Subscribe to my newsletter: https://www.nudgepodcast.com/mailing-list Unlock the Nudge Vaults: https://www.nudgepodcast.com/vaults Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew/ Read Aaron’s book: ⁠https://thethingswelove.com/⁠ --- Today’s sources: Bartneck, C., Van Der Hoek, M., Mubin, O., & Al Mahmud, A. (2007). "Daisy, Daisy, give me your answer do!": Switching off a robot. Proceedings of the 2nd ACM/IEEE International Conference on Human-Robot Interaction, 217–222. Shotton, R. (2017). The choice factory: 25 behavioural biases that influence what we buy. Harriman House. Shotton, R. (2023). The illusion of choice: 16½ psychological biases that influence what we buy. Harriman House. Von Restorff, H. (1933). Über die Wirkung von Bereichsbildung im Spurenfeld. Psychologische Forschung, 18, 299–342.

Professor Richard Wiseman searched for the world’s funniest joke. He found it. But it wasn’t what he expected. --- Richard’s book Quirkology: https://amzn.to/4shYOJ6 Richard’s book 59 Seconds: https://amzn.to/3Pf9pWI Richard’s SubStack: https://richardwiseman.substack.com/ Join 11,934 readers of the Nudge Newsletter: https://www.nudgepodcast.com/mailing-list Unlock the Nudge Vaults: https://www.nudgepodcast.com/vaults Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew/ --- Today’s sources: Asch, S. E. (1955). Opinions and social pressure. Scientific American, 193(5), 31–35. Crum, A. J., & Langer, E. J. (2007). Mind-set matters: Exercise and the placebo effect. Psychological Science, 18, 165–171. Wiseman, R. (2009). 59 seconds: Think a little, change a lot. Knopf. Wolff, H. A., Smith, C. E., & Murray, H. A. (1934). The psychology of humor: I. A study of responses to race-disparagement jokes. Journal of Abnormal and Social Psychology, 28, 345–365.

I watched Home Alone and suddenly started hearing the theme tune everywhere. I thought I was going insane. But Tom Bowden-Green and Luan Wise explained that I actually fell for a fairly well-known bias. A bias you’ve almost certainly experienced as well. --- Come to Uplift Live: https://uplift-live.com/ (Use code NUDGE to get £50 off) Tom and Luan’s book: https://amzn.to/49aZnh3 Unlock the Nudge Vaults: https://www.nudgepodcast.com/vaults Join 10,428 readers of my newsletter: https://www.nudgepodcast.com/mailing-list Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew/ --- Today’s sources: Costello, J. P., Garvey, A. M., Germann, F., & Wilkie, J. E. B. (2024). The Uptrend Effect: Encouraging healthy behaviors through greater inferred normativity. Journal of Marketing Research, 61(1), 110–127. Cruz, R. E., Leonhardt, J. M., & Pezzuti, T. (2017). Second person pronouns enhance consumer involvement and brand attitude. Journal of Interactive Marketing, 39(1), 104–116. Khan, U., & Dhar, R. (2006). Licensing effect in consumer choice. Journal of Marketing Research, 43(2), 259–266. Lim, S., van Osselaer, S. M., Goodman, J. K., Fuchs, C., & Schreier, M. (2024). The Starbucks effect: When name-based order identification increases customers’ store preference and service satisfaction. Journal of Retailing, 100(2), 316–329. Sahni, N. S., Wheeler, S. C., & Chintagunta, P. (2018). Personalization in email marketing: The role of noninformative advertising content. Marketing Science, 37(2), 236–258. Van Boven, L., Dunning, D., & Loewenstein, G. (2000). Egocentric empathy gaps between owners and buyers: Misperceptions of the endowment effect. Journal of Personality and Social Psychology, 79(1), 66–76. van der Meulen, M. (2022). Are we indeed so illuded? Recency and frequency illusions in Dutch prescriptivism. Languages, 7(1), 42. Zwicky, A. (2006). Why are we so illuded. Retrieved from https://web.stanford.edu/~zwicky/LSA07illude.abst.pdf

Most of us are completely oblivious to the cognitive biases that dictate how we live our lives. Today, with Tom Bowden-Green and Luan Wise, we cover seven cognitive biases that all of us fall for. --- Tom and Luan’s book: https://amzn.to/49aZnh3 Unlock the Nudge Vaults: https://www.nudgepodcast.com/vaults See Agent Spark in action at ⁠gwi.com/spark⁠ Join 10,428 readers of my newsletter: https://www.nudgepodcast.com/mailing-list Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew/ --- Today’s sources: Chambers, J. R. (2008). Explaining false uniqueness: Why we are both better and worse than others. Social and Personality Psychology Compass, 2(2), 878–894. Dunning, D. (2011). The Dunning–Kruger effect: On being ignorant of one’s own ignorance. In Advances in experimental social psychology (Vol. 44, pp. 247–296). Academic Press. Einhorn, H. J., & Hogarth, R. M. (1978). Confidence in judgment: Persistence of the illusion of validity. Psychological Review, 85(5), 395–416. Helmreich, R., Aronson, E., & LeFan, J. (1970). To err is humanizing sometimes: Effects of self-esteem, competence, and a pratfall on interpersonal attraction. Journal of Personality and Social Psychology, 16(2), 259–264. Koskie, M. M., & Locander, W. B. (2023). Cool brands and hot attachments: Their effect on consumers’ willingness to pay more. European Journal of Marketing, 57(4), 905–929. Pronin, E., Lin, D. Y., & Ross, L. (2002). The bias blind spot: Perceptions of bias in self versus others. Personality and Social Psychology Bulletin, 28(3), 369–381. Van Hoorens, V. (1993). Self-enhancement and superiority biases in social comparison. European Review of Social Psychology, 4, 113–139. White, G. L., Fishbein, M., & Rutstein, R. C. (1981). Passionate love and the misattribution of arousal. Journal of Personality and Social Psychology, 41(1), 56–62.

This study analysed 6,700 websites in an unprecedented A/B test. The results proved something that Dr Robert Cialdini had been preaching for years. Today, on Nudge, Robert Cialdini joins me again, covering another of his seven principles of persuasion. And I share a marketing lesson that (I think) every business needs to know. --- Unlock the Nudge Vaults: https://www.nudgepodcast.com/vaults See Agent Spark in action at gwi.com/spark Read Cialdini’s bestseller Influence: https://amzn.to/4prHb7Y Read the new and expanded Influence: https://amzn.to/43TY0jI Read Pre-Suasion: https://amzn.to/48hA6Qr Read Yes! (Containing 60 Psyc-Marketing Tips): https://amzn.to/48ddNNf Join 10,189 readers of my newsletter: https://www.nudgepodcast.com/mailing-list Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew/ --- Today’s sources: Bell, T. [Taylor Bell]. (2025, February 13). Inside Trader Joe’s: The genius strategy behind its cult following (and low prices) [Video]. YouTube. Bornstein, R. F., Leone, D. R., & Galley, D. J. (1987). The generalizability of subliminal mere exposure effects: Influence of stimuli perceived without awareness on social behavior. Journal of Personality and Social Psychology, 53(6), 1070–1079. Browne, D., & Swarbrick-Jones, A. (2017). The science of persuasion in e-commerce: An analysis of 6,700 online A/B tests. Conversion Rate Experts. Danziger, S., Levav, J., & Avnaim-Pesso, L. (2011). Extraneous factors in judicial decisions. Proceedings of the National Academy of Sciences of the United States of America, 108(17), 6889–6892. Drachman, D., deCarufel, A., & Insko, C. A. (1978). The extra credit effect in interpersonal attraction. Journal of Experimental Social Psychology, 14(5), 458–465. Fang, X., Singh, S. N., & Ahluwalia, R. (2007). An examination of different explanations for the mere exposure effect. Journal of Consumer Research, 34(1), 97–103. Gladka, A., & Żemła, M. (2016). Effectiveness of reciprocal rule in tourism: Evidence from a city tourist restaurant. European Journal of Service Management, 17(1), 57–63. Mita, T. H., Dermer, M., & Knight, J. (1977). Reversed facial images and the mere-exposure hypothesis. Journal of Personality and Social Psychology, 35(8), 597–601. Nicholson, C. Y., Compeau, L. D., & Sethi, R. (2001). The role of interpersonal liking in building trust in long-term channel relationships. Journal of the Academy of Marketing Science, 29(1), 3–15. Razran, G. (1940). Conditioned response changes in rating and appraisal. Psychological Bulletin, 37(6), 481–493. Shotton, R. (2023). The illusion of choice: 16½ psychological biases that influence what we buy. Harriman House. Strohmetz, D. B., Rind, B., Fisher, R., & Lynn, M. (2002). Sweetening the till: The use of candy to increase restaurant tipping. Journal of Applied Social Psychology, 32(2), 300–309. Zajonc, R. B., & Rajecki, D. W. (1969). Exposure and affect: A field experiment. Psychonomic Science, 17(4), 216–217.

In 1963, the Milgram experiments revealed something unsettling. Most people kept administering what they believed were painful electric shocks, not because they wanted to, but because they couldn’t bring themselves to say no. In this episode, my guest shares why we agree to extra projects, unpaid favours and unreasonable requests even when we know we shouldn’t. I’m joined by behavioural scientist and physician Dr Sunita Sah of Cornell University. She studies how social pressure and conflict-of-interest disclosures can quietly steer us toward yes. --- Read Sunita’s book Defy: https://amzn.to/48LsreG Unlock the Nudge Vaults: https://www.nudgepodcast.com/vaults Join 10,428 readers of my newsletter: https://www.nudgepodcast.com/mailing-list Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew/ --- Today’s sources: Milgram, S. (1963). Behavioral study of obedience. Journal of Abnormal and Social Psychology, 67(4), 371–378. Sah, S. (2025). Defy: The power of no in a world that demands yes. One World. Sah, S., Loewenstein, G. F., & Cain, D. M. (2013). The burden of disclosure: Increased compliance with distrusted advice. Journal of Personality and Social Psychology, 104(2), 289–304. Sah, S., Loewenstein, G. F., & Cain, D. M. (2019). Insinuation anxiety: Concern that advice rejection will signal distrust after conflict of interest disclosures. Personality and Social Psychology Bulletin, 45(7), 1099–1112. Woodzicka, J. A., & LaFrance, M. (2001). Real versus imagined gender harassment. Journal of Social Issues, 57(1), 15–30.

How would you encourage Australians to drive slower? That’s what today’s guest on Nudge, Adam Ferrier, had to do. Being an applied behavioural scientist, he tackled this challenge in a novel way. Listen to hear about his interesting campaign, how Jaws killed surfing and the secret behind Derren Brown’s “hypnosis” trick. --- Watch the bonus episode: https://nudge.kit.com/66dcb18641 Adam’s agency: https://thinkerbell.com/ Adam’s books: https://amzn.to/431eYfD Sign up for my newsletter: https://www.nudgepodcast.com/mailing-list Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew-22213187/ Watch Nudge on YouTube: https://www.youtube.com/@nudgepodcast/ --- Today’s sources: Cialdini, R. B. (1984). Influence: The psychology of persuasion. William Morrow. Shotton, R. (2023). The illusion of choice: 16½ psychological biases that influence what we buy. Harriman House. Sutherland, S. (1992). Irrationality: The enemy within. Constable.