MAKE SMALL DISCOUNTS A GAMBLE

Summary from the TLDR Marketing newsletter

People are far more likely to choose an uncertain discount when the guaranteed option is small. Research found a 92.6% lift in choice for a 10% chance at a free stay, over a 1% guaranteed discount. The effect also appeared in other tests, including a 12.3% increase in choice for an uncertain gym offer over a guaranteed 10% discount. The impact grew when the guaranteed discount was tiny or framed as a percentage, such as a 27.3% lift when the certain option was shown as 10% off instead of a fixed amount. Small guaranteed discounts often feel trivial, so people shift toward the larger but uncertain reward.