Marketing

Steve Jobs Masterclass in Persuasion

Bought an existing business and looking to up your marketing game? Adopt some of these techniques from the legendary Steve Jobs.

Steve Jobs was a master of persuasion. He convinced billions to buy MP3 players, laptops, and phones, and at higher prices. Sure, technical innovation was at play, but a substantial part of his success came from his marketing and persuasion skills — skills anyone can learn and use.

Let’s rewind to Jobs’ first keynote after being rehired as Apple’s interim CEO. The company was struggling. Jobs needed to rebuild confidence in the company to move forward. Here’s what he said:

“It’s been 10 months since a new management team took over at Apple. People have been working really hard. You can see a lot of cars in the parking lots at nights and on weekends. Because of their hard work, I’m really pleased to report to you today that Apple’s back on track.”

Jobs’ is using the “labor illusion” to build confidence. He emphasizes the effort and dedication behind the scenes, making people value Apple more. And this technique is not a one-off; he used it multiple times and in multiple forums.

The Labor Illusion

What exactly is the Labor Illusion? It is a simple psychological principle: when people see the a lot of effort put into a task, they value the end product more. For instance, diners appreciate food more when they see chefs cooking it.

A study published in the Journal of Consumer Research highlighted this effect at a brewery. Visitors who saw the brewing process were 32% more likely to buy the beer. Jobs harnessed this power by repeatedly highlighting the hard work behind Apple products. Whether launching a new iPod Nano or introducing the iPhone, he placed an emphasis on the labor and dedication involved in bringing the product to market.

The Halo Effect

Jobs also leveraged another behavioral insight, The Halo Effect. This is a bias where our positive associations with a person bleed over into the things they’re associated with.

Jobs used the halo effect in Apple’s “Think Different” campaign. The iconic ad featured visionaries like Gandhi, Einstein, and John Lennon, linking their greatness with Apple. The positive associations with these luminaries boosted perceptions of Apple, contributing to its resurgence.

Anchoring

Anchoring is a cognitive bias where an initial reference point influences subsequent decisions. Jobs used this when launching the iPod. He didn’t compare its $399 price to other MP3 players. Instead, he introduced the price per song metric. This made the iPod appear 60% cheaper per song than its competitors. This clever anchor helped the iPod capture over 50% market share despite the significantly higher price.

The Power of Recency Bias

Jobs also understood the recency bias, which is our tendency to favor and remember recent events over earlier ones. He ended many of his keynotes with a “one more thing” moment, and then unveiled an exciting feature or product right at the end. This tactic ensured that the audience left with a strong, positive impression of the product.

These are just a few examples of Jobs’ apparent deep understanding of psychological principles and behavioral science . Jobs’ true genius lay not in creating groundbreaking products, but in knowing how to persuade the world to embrace them. (Source: Nudge Podcast)

If someone as successful as Steve Jobs relied on these behavioral science techniques, there’s a valuable lesson for all of us no matter how small or big our business is: mastering the art of persuasion is crucial for success.