TOGETHER WITH DOVETAIL

Dovetail’s biggest launch is coming in October - and you’re invited!

Get ready for the next generation of customer insights. Dovetail is launching tons of new features and THREE new products that each leverage AI to its cutting-edge capacity. To celebrate this momentous milestone, you’re invited to:

• Exclusive in-person and online launch events

• Sneak peeks and early access to the new products

• Q&As with our product team and founder

Plus special promotions and premium content. If you want to know what the future of AI-powered customer insights looks like - sign up to our waitlist and we’ll keep you in the loop for our events and more!

Please support our sponsors!

Enjoying this content? Subscribe to get every post direct to your inbox!

📅 GEEKS OF THE WEEK

5 bookmark-worthy links:

• Guide to Atomic Emails

• 79+ SaaS Retention Techniques

• Lessons Learned From Launching a Self-Serve Plan as a Sales-Led Company

• Index of 100 SaaS companies with AI pricing

• The Ultra-Ride: Inside the Minds of CMOs Who Drove Sustained Hypergrowth

🧠 GEEK OUT

How to Build Products That People Crave: 6 Psychology Principles (Part 1)

In the 1970s, two behavioural scientists (Daniel Kahneman and Amos Tversky) began a research journey that would revolutionise our understanding of decision-making.

Their insights, originally aimed at explaining economic behaviour, are now powering growth strategies in the world's most successful B2B software companies.

If you’ve ever felt like you're pouring your heart into growth work, but you’re not getting results, this post is for you.

We’ll take a step back from metrics and experiments and instead think about the fundamental goal of growth - driving changes in behaviour.

I’m going to share six crucial behavioural psychology principles that you can use to supercharge your product-led growth (PLG) strategy.

But before we jump in, I’m going to add a big ol’ disclaimer: these principles are NOT about manipulating users. They're about creating experiences that resonate with how people naturally think and make decisions. Used ethically, they can help you build products that users love and want to keep using.

This turned out to be a long post, so I’ve split it into two.

Today in Part 1 I’ll cover:

• Priming

• Loss Aversion

• Social Proof

And in Part 2 next week I’ll continue with

• Scarcity and Urgency

• Defaults

• Cognitive Biases

These 6 principles are ones I've consistently seen drive results across B2B companies I've worked with. While there are many psychological concepts at play in decision-making, I've found these to be actionable and impactful in PLG contexts.

They also cover a range of psychological factors influencing user decisions - from how information is initially processed (Priming), to how choices are made (Loss Aversion), to how social dynamics affect decisions (Social Proof), and more. This diverse set provides a comprehensive toolkit for influencing various aspects of the B2B customer journey.

In Part 2 I’ll also cover ethics, and the responsibility of product and growth teams in that regard.

Ready to unlock the secrets to the nuances of the human mind for your PLG efforts?

Let's dive in!

1. The Power of Priming: Setting the Stage for Success

This one is commonly overlooked in growth, but very important.

To understand and leverage Priming, you need to adopt the mindset that your user’s journey starts much earlier than whatever you’re currently trying to optimise - and all the stuff that happens prior influences their behaviour now.

Priming is akin to setting the mood lighting for your product experience. It subtly influences user behaviour by exposing them to specific stimuli that affect their subsequent actions. In the PLG world, effective priming can significantly boost activation and engagement.

There are 3 core thing to consider when you think about applying Priming to your own products:

1. Visual Cues: Visual priming subconsciously influences visitors to view the products more positively. Imagine you’re walking down the street on your way to pick up some lunch and you see a billboard advertising a new drink.

   
   

   

   
   If you see that can in the shop you might consider trying it. But imagine if the billboard looked like this instead:

   

   
   

   Would you be more or less likely to pick up that can from the shelf?
   
   In the product / growth context, think about how you want users to feel along your product journey. Do you want them to feel inspired? Excited? Motivated?

   Look at this hero animation on the GitHub Co-Pilot landing page. It’s a viscerally effective way to get potential new users excited about the product.

   
   

   

   
   

2. Language Choice: Intentional use of words that emphasise product benefits and key characteristics can prime users to expect (and look for) these benefits as they explore the product. The choice of words can significantly impact user perception and behaviour.
   Take Snyk’s tagline - Develop Fast, Stay Secure, and the homepage emphasis on this:
   
   

   

   
   

3. Contextual Setup: You can show contextually relevant information to prime users to make progress. In the same way that a security tool like Snyk highlights the volume of unresolved vulnerabilities, a fitness app would show progress metrics at the start of each session, priming users for success and motivating them to push harder. This approach taps into the user's desire for achievement and progress.

None of this is underhand trickery if it aligns with your users' goals and enhances their experience.

Remember, the key to effective priming is subtlety. You're not trying to hit users over the head with a message; you're creating an environment that naturally guides them towards desired actions. It's about nudging, not shoving.

When implementing priming in your PLG strategy:

1. Identify key touch points where priming can be most effective (e.g., landing pages, onboarding flows, email communications)

2. Ensure your priming aligns with your product's core value proposition

3. Test different priming approaches to see what resonates with your audience

4. Monitor user behaviour to gauge the effectiveness of your priming tactics

2. Loss Aversion: The Fear Factor

Being the strange humans that we are, we feel the pain of losing something about twice as strongly as the pleasure of gaining something of equal value.

This cognitive quirk is called loss aversion, and it's a powerful tool in your PLG toolkit.

In digital products, framing messages in terms of potential losses rather than gains can be incredibly effective. For example:

• "Don't miss out on 20% savings!" often packs more punch than "Get 20% off!"

• "Your trial ends in 24 hours - upgrade now to keep your progress" is more motivating than "Upgrade now for continued access"

It’s useful from high level messaging (see CyberArk’s ‘Breaches are inevitable. Damage is not.’)…

…all the way to specific emails in trial nurtures:

But here's the catch: while loss aversion is powerful, it needs to be used responsibly. Overusing it can lead to anxiety and negative user experiences. The goal is to create a sense of urgency, not stress. Balance is key.

When applying loss aversion in your PLG strategy:

1. Identify areas where users might experience loss (e.g., ending trials, expiring offers, potential risks)

2. Frame your messaging to highlight what users might lose, but always provide a clear solution

3. Use loss aversion in conjunction with positive messaging to maintain a balanced approach

4. A/B test your loss aversion messaging to find the right tone and frequency for your audience

Want to read more on this? Check out my deep dive linked below on how to use the principle of Loss Aversion to drive higher trial conversions.

3. Social Proof: The Herd Mentality (But in a Good Way)

Humans are social creatures.

We often look to others to guide our decisions, especially when we're uncertain. This is the principle of social proof, and it's a PLG powerhouse.

Here's how you can leverage social proof:

• Client Logos: For B2B products, showcasing logos of well-known clients is table stakes practice because of its impact in establishing trust and boosting credibility.

• User Testimonials: Showcase authentic, specific testimonials from satisfied users. Something like…

  

  …is far more impactful than vague praise. Ensure your testimonials address common pain points and highlight concrete benefits.
  

• Usage Statistics: Display user counts or activity metrics. "Join 100,000+ satisfied customers" can be a powerful motivator. At Snyk, we regularly updated our user count on our signup page, which created a sense of community and credibility.

  
  One of the companies I advise, TryHackMe does this well in multiple places:
  

  

• Reviews and Ratings: Encourage and prominently display user reviews. Interestingly, products with more reviews are often perceived as more trustworthy, even if the average rating is slightly lower. A study by Nielsen found that 92% of consumers trust recommendations from people they know, and 70% trust consumer opinions posted online.

  
  In B2B, the further you go upmarket, the more important sites like G2 become.
  
  As an example, it’s evident from their G2 page just how much importance CloudBees places on this, featuring user submitted reviews as well as curated case studies and video testimonials.

  

• Real-time Activity: Showing real-time user activity (like recent sign-ups or purchases) can create a sense of FOMO and encourage action.

When implementing social proof:

1. Gather diverse testimonials that represent different segments of your target audience

2. Regularly update your usage statistics to show growth

3. Implement a system to collect and display user reviews

4. If you're B2B, prioritise getting permission to use client logos, especially from well-known companies

5. Consider adding real-time activity notifications to create a sense of active usage

Authenticity is key.

Users can spot fake testimonials a mile away, and nothing erodes trust faster than inauthentic social proof.

Wrapping Up Part 1

I've explored three powerful behavioural psychology principles that can significantly impact your product-led growth strategy:

1. Priming: Setting the stage for user actions through subtle cues

2. Loss Aversion: Leveraging the human tendency to avoid losses

3. Social Proof: Harnessing the power of collective behaviour

Each of these principles, when applied ethically and strategically, can help you create more engaging, user-centric products that naturally encourage adoption and retention.

But we're only halfway through, and in Part 2, I'll dive into three more crucial principles:

• Scarcity and Urgency: Creating motivation through limited availability

• Defaults: Guiding user choices through smart preset options

• Cognitive Biases: Understanding and working with common mental shortcuts

I'll also tackle the critical topic of ethics in applying these principles. After all, with great power comes great responsibility!

Look out for next week's newsletter, so you can complete your toolkit for psychologically-informed product-led growth. In the meantime, consider how you might apply the principles we've covered today in your own products. What areas of your user journey could benefit from priming, loss aversion, or social proof?

Remember, the goal isn't manipulation, but creating experiences that resonate with how people naturally think and make decisions. Used wisely, these principles can help you build products that users genuinely love and want to keep using.

See you next week for Part 2!

😂 GEEK GIGGLE

SHARE THE LOVE → PROFIT

The PLGeek Growth Process

Get the PLGeek Growth Process

Do you know someone that would enjoy this newsletter?

Share it with them and get access to The PLGeek Growth Process. This is a refined version of the growth process I ran that fuelled growth at Snyk and countless companies I’ve advised.

You currently have 0 referrals, only 1 away from receiving The PLGeek Growth Process (PDF).

Or just share this link with them: https://www.plg.news/subscribe?ref=PLACEHOLDER

💪 POWER UP

If you enjoyed this post, consider upgrading to a VIG Membership to get the full Product-Led Geek experience and access to every post in the archive including all guides. 🧠

THAT’S A WRAP

Before you go, here are 2 ways I can help:

Book a free 1:1 consultation call with me - I keep a handful of slots open each week for founders and product growth leaders to explore working together and get some free advice along the way. Book a call.

Sponsor this newsletter - Reach over 7700 founders, leaders and operators working in product and growth at some of the world’s best tech companies including Paypal, Adobe, Canva, Miro, Amplitude, Google, Meta, Tailscale, Twilio and Salesforce.

That’s all for today,

If there are any product, growth or leadership topics that you’d like me to write about, just hit reply to this email or leave a comment and let me know!

Until next time!

— Ben

PS: Thanks again to our sponsor: Dovetail