Tiny Habits can lead to big Pricing Impact

Book Recommendation Large

As part of our continuous learning of behavioural economy, behaviour design, and decision making, we recently discussed this amazing book by BJ Fogg.


This book showcases behavioural design based on research, and it’s power in helping people better their lives by creating and changing habits. We recommend this book to anyone, regardless of Pricing Optimisation.

But certain insights from this book can help businesses improve their price presentation, customer engagement, and more…

Just a reminder from our previous post

Pricing is NOT about tricking your customers or using mind tricks to fool people.

Pricing IS about the healthy balance between the value you provide, and the price you charge for it. 

It is about understanding value, as it is perceived by your customers, delivering that value, and charging for it.

Pricing Is a Thing
Back to Tiny Habits by BJ Fogg

Any desired action requires:
Motivation, Ability, and Prompt (trigger).
Looking at the action-line chart, anything above the action line is achievable.

Hard tasks require high motivation.
Easy tasks require less motivation.

Most marketing and sales tactics revolve around increasing your customer’s motivation so they complete the desired action.

The action-line chart teaches us that as we reduce the difficulty level (reduce friction), tasks can be completed even with low levels of motivation.

This can be optimised by shrinking the action, so lower levels of motivation are needed.

Next step is having the right prompt (trigger).
Prompts can be external, internal, or action based.
While the first two create more friction, action-based prompts are almost frictionless.

Attaching an action to the completion of another action is a great way of riding the momentum of motivation.

Having tiny, micro-sized actions triggered, can be leveraged to create high frequency / volume of desired behaviour. Caution is required in order to avoid creating more friction.

Reward is the next crucial step in our journey.
To encourage your new tiny habit, reward yourself
(and thus hack into your future-motivation).
BJ Fogg calls it Shine which he defines as;
Authentic pride.
Momentum is important for habit development as it creates confidence and motivation when completing a tiny task and being rewarded for it. Based on Fogg’s research, this is due to frequency of action, not size!

The usage of these insights in setting and presenting your prices is fascinating. It also supports other known research around behaviour design and customer decision drivers that shows great results across time.

Keen to learn more?

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Published by That Pricing Guy

Pricing Professional. Specialist in Pricing and Monetisation of small to medium businesses.

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