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đ§ How this tiny perfume brand used psychology to conquer the world
Hi there - Jen here :)
Jo Malone, a popular British perfume brand (also the name of its founder), wanted to crack the lucrative U.S. market.
These days, Jo Malone is a part of the $52B beauty conglomerate Estée Lauder.
But when it first tried to expand into the U.S. it was⊠a cult brand to put it politely. And they had the marketing budget to match:
Zero.
But Jo Malone managed to turn that true $0 marketing budget into an asset that catapulted the brand into the worldâs most exclusive department stores - like Bergdorfâs in New York and Harrodâs in London.
And that growth didnât happen by accident.
It was down to deeply understanding customers andâ using behavioral science and psychology - consciously or not - to get people buying.
Today youâll learn:
The brilliant way Jo Malone used behavioral residue to crack NYCâs richest neighborhoods
How Apple, Louboutin, and Starbucks used that same psychological principle to make billions of dollars
And how you can harness Jo Maloneâs approach to grow your business, too
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đ§ The brilliant way Jo Malone used behavioral residue to crack NYCâs richest neighborhoods
Malone had a tiny perfume company in England but persuaded luxury retailer Bergdorf Goodman to host a pop-up shop for her brand in New York City.
But Jo had no way to get people in the store:
She was an unknown brand in a new, notoriously tough market, trying to get people to take time out of their busy day to spend a decent chunk of change on a luxury item.
But she knew if Bergdofâs didnât see sales, Jo and her brand would never be invited back⊠and sheâd have to give up on her dream of selling in America.
All sheâd brought with her across the Atlantic was 1,000 bags to hold customer purchases, a bit of product to sell in the pop-up, and some hope.
Malone told the Guardian:
"I sat there in a hotel room thinking: âI am going to fail, what am I going to do?â
But then Jo had a brilliant idea...
After breaking down in her hotel room, Jo Malone pulled herself together and created a clever plan.
She found 50 people in New York (mostly friends of friends in London who she had called and desperately begged for a favor) and she asked them to walk around the most fashionable parts of NYC carrying the distinctive Jo Malone bag.
Jo explained:
âThese bags started to be recognised in really savvy parts of New York City, so when we opened the store people thought there was already a store somewhere.
There wasn't."
Malone had a successful New York launch and only a few years later sold the business to beauty giant Estée Lauder.
All because of the power of Behavioral Residue.
 đ§ What is Behavioral Residue?
Behavioral Residue describes the physical traces an action, product, or behavior leaves in its wake.
The easier it is to spot and notice something, the more likely it is to catch on.
In other words, if you want to make a product more popular - make it visible.
Hereâs how Apple, Louboutin, and Starbucks used Behavioral Residue to drive sales:
â Apple iPod
When Apple launched the iPod in 2001, the most popular portable headphones came with the Sony Walkman.
So most people were wearing black foam and metal headphones that went around the top of their head.
But Steve Jobs insisted that the iPod ship with white ear buds, so itâd be easy to spot who was using one in public.
Pretty soon the iPod caught fire, all because of the power of behavioral residue.
â Louboutinâs Famous Red Soles
When shoe designer Christian Louboutin was building his brand, he knew he needed to find a way for his products to stand out (and catch on).
After spotting an assistantâs red Chanel nail polish, he grabbed it and began painting the sole of a prototype heel.
Suddenly the shoe stood out, red soles eventually becoming an iconic symbol of passion, sex, love, and the Louboutin brand.
â Starbucks Red Holiday Cups
Iï»żn 1999, Starbucksâ first red cup launched as a seasonal marketing campaign.
Red cups quickly became a cultural signal that the holiday season had officially started.
It also gives people a bit of FOMO until theyâve gotten their first red cup, and makes them proud to show it off to their friends on social when they do get theirs.
By 2014, an image of a Starbucks red cup was shared every 14 seconds on social media.
â BONUS Digital Case Studies: Hotmail and iPhone
Creating behavioral residue for digital products can be challenging, but not impossible. Here are a few classic examples:
Hotmail: One of the OG free email services - Hotmail - used to include the line âGet your free email at Hotmailâ at the end of every email. That simple line helped them attract 12 million users in less than 2 years with a total marketing spend of only $500k.
iPhone: When the iPhone first launched it was a major status symbol. Thatâs why the line âSent from my iPhoneâ - added automatically to the end of every email - was so genius. You started to see who in your social or work circle had an iPhone, and you started to want one too.
đ Reply to this email and share some more (recent) digital examples of behavioral residue and Iâll include your responses in next weekâs newsletter.
đ§ How to Market Your Product Like Jo Malone
To use behavioral science and marketing psychology like Jo Malone did, start by asking yourself a few questions:
How can we create physical evidence that people are using our product?
How can an element of our product (like the red sole of Louboutins) stand out?
Is there a way to encourage that customers share our brand or product? Consider how Apple includes a sticker of its logo with every sale, or the âI votedâ stickers given out at election time.
Read, Watch, Listen
đ Coming up in the Thursday Edition
The Thursday Edition is a weekly post shared with Choice Hacking Premium subscribers - upgrade today to get access.
This weekâs Thursday Edition will cover:
How to move your brand upmarket using the psychology and behavioral science of luxury branding
The secret to using data to inspire, engage, and resonate with your presentation audiences
Why I stopped reading Seth Godin (and you probably should, too)
Until next time,
Jen
Jen Clinehens, MS/MBA |
Want to use behavioral science, psychology, and AI to grow your business?
đ When youâre ready, Choice Hacking can help:
Coaching: Looking for clarity, focus, and confidence in your marketing and/or career? Behavioral Science-powered 1-on-1 Coaching could be a good match for you.
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