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Change in currency: Euros for the courses

I've been looking into ways to reduce PayPal & Stripe conversion fees recently.

I opened a US PayPal account, but it seems you need an US Social Security Number for the long run, and without an SSN number there is a risk PayPal might eventually just freeze your account with all your balance in it.

PayPal is the main issue here as its conversion rates are a total rip-off -Stripe is quite good actually-.
It's not even just about the money, but about the principle as well: I don't want to accept such poor terms.

I'm looking at other solutions as well, but for now, I've decided to try a very simple one: changing the currency from USD, to EUR.

DISADVANTAGES

The US market's impact is the biggest disadvantage here, and international markets are the biggest question mark.

As a website in the English language, the US is obviously a big country for this website.

As a matter of fact, it's the biggest.
BUT... It's still not the absolute majority -it's more than 40% and less than 50% of the total-, which is the reason why I decided to give EUR a shot.

  • EUR Might discourage US users...

The large concentration of US customers means that if the EUR denomination for USD-carrying customers is a disincentive to join a course, then PU see a drop of enrollments.

  • And the EU market might not be enough to compensate...

If the currency is a major reason why people join or don't join a course, then the EU wouldn't be enough to make up for the decreased US demand.

The EU market, even as a whole, it's far smaller. So even if there were a corresponding "EUR upshot" for the EU market, the EU market wouldn't be enough to compensate for the loss in the US.

  • And I don't know what it means to international folks

Non-USD and non-EUR countries in theory should be unaffected... If everyone was purely rational.

For most people, whether it's USD or EUR, there should be no real difference. Since EUR is also a major currency, their conversion charges should be similar or the same.

But that's a question mark.
International folks might generally be more accustomed and more comfortable with USD.

ADVANTAGES

The are also several advantages though:

  • No more PayPal rip-off

Obviously, and the main reason why I'm trying this in the first place.

  • EUR is worth more than USD

For the same nominal amount -or even less- the bottom line would be bigger.

  • Marketing: the psychological effect of a smaller number

If I decide to lower the nominal amount -which I did-, that could be very effective marketing.

People don't usually compute among currencies on the fly, when first assessing a product/price. Instead, they see a number first, and whether it's EUR or USD it won't matter much because they look at the number.

So the lower EUR amount might make the course seem even more like a steal.


THE TEST

In any case, it will be an interesting experiment to try out.

I'm also curious about this: how much what should theoretically be a detail like the currency is going to turn off -or encourage- people?

Unluckily, I won't have a control group to compare results, so this won't count as a "proper", scientific test.
But it might provide somewhat valid inputs.

selffriend has reacted to this post.
selffriend
Have you read the forum guidelines for effective communication already?

Yes EUR will definitely hurt US market, and lowering the nominal amount should help.

120+tax+fee+conversion rate sounds for way better than a sum of 198.

However, you cannot reveal your trick, I think. Once nudging is revealed, it usually backfire as people will think the merchant being sneaky and untrustworthy.

 

Yeah, I think there should be an effect as well, but this is a case where what we think matters little and is not worth discussing, since it can be easily superseded by the actual data / events (in this case, the data/scientific approach is by far the biggest of the 3 pillars of knowledge).

Quote from selfriend on March 29, 2021, 3:18 am

However, you cannot reveal your trick, I think. Once nudging is revealed, it usually backfire as people will think the merchant being sneaky and untrustworthy.

I disagree here.
I think the opposite is true: when you explain what you're doing, you're honest, not sneaky.

The ones who might think you're sneaky are the ones who were totally clueless there was such a thing as marketing/persuasion/manipulation, but this website caters to a more advanced crowd.
And I still think most people would be grateful and appreciate the honesty, even when they had zero ideas.

Also, this website has a different approach.
It's more product-driven than marketing-driven, more mission-driven than bottom-line driven, and generally more open about what it does and why.

selffriend has reacted to this post.
selffriend
Have you read the forum guidelines for effective communication already?

I think the opposite is true: when you explain what you're doing, you're honest, not sneaky.

Good points! Let me restate your hypotheses:

Case 1: Consumer knows nothing about nudging; merchant tricks consumers and does not reveal the trick: no backfire usually, unless the nudging is poor designed and the consumer felt tricked (well-studied)

Case 2: Consumer knows nothing about nudging; merchant does reveal the trick: backfire because consumers think they've been tricked

Case 3: Consumer knows about nudging; merchant tricks consumers and does not reveal the trick: backfire because consumer will think the merchant is sneaky

Case 4:  Consumer knows about nudging; merchant does reveal the trick: no backfire because consumer think the merchant is honest

You are saying that, this website best falls into the Case #4 as most consumers are high-level ones, so revealing the tricks will do more good than harm.

Please correct me if I am wrong. I think these hypotheses may lead to a good topic that has not been well-studied before. It combines the recent studies on the backfire of nudging and higher-order reasoning.

This research question also shed light on "is it beneficial to reveal the power moves when we or someone else are using it?"

I think the reasoning is that, if we reveal others' power moves, then others won't think that we know nothing, and thus become more open and honest. What do you think?

 

 since it can be easily superseded by the actual data / events

Well, in this specific case, there is one variable which is hard to control: the time. As your sphere of influence is keep enlarging, more customers will trust you more, and you cannot be sure if they purchase because of the nudge or because of your growing influence. Some data analysis design might mitigate this problem, but not completely.

Yes, those hypotheses seem correct.

I agree that the data collected after this change has no major scientific validity -as also mentioned in the fist post-.

Two more points:

  • This is becoming philosophy

If we were going to test those hypotheses, or at least looking for some evidence somewhere, then it would be super interesting.

If we don't test them, then we're doing philosophy / opinions exchange on something that could be measured.
And I'm not a big fan of philosophy.

  • TPM does TPM, not necessarily what maximizes sales

As mentioned, this website explains (some) of its marketing choices because it chooses to do so, not necessarily because it's more effective.
Also, I suspect that very few people read the forum before purchasing any product, so whether I say or not say something here has little effect.

selffriend has reacted to this post.
selffriend
Have you read the forum guidelines for effective communication already?
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