When a SaaS tool brags about being used by companies like Amazon or Google, you probably think, "If it's good enough for them, it's good enough for me." But here's the rarely asked question: How many other big companies tried it and then switched to something else? Keep reading to find out why your brain skips that part. 🧠
Read time: 2.9 minutes ⚡
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Imagine this… You're scrolling Goodreads, hunting for your next read, when you spot a thriller with a 3.67-star average rating out of 3,021 reviews. Not great, but not terrible either. Casually scanning the review section, you find one that stops you cold: "This book had me up until 3 a.m. I literally couldn't put it down—every page had my attention. And the twist in chapter 12? I've been thinking about it for DAYS. An absolute must-read. If you loved Gone Girl, you'll devour this."
That review hits every note you love: unpredictable twists, late-night page-turning, and comparisons to one of your all-time favorite books. So you click over to Amazon and smash the "buy now" button. Two days later, you're forcing yourself through chapter 6, wondering when it gets good. The writing feels clunky and you're convinced that rocks have more personality than the characters. And you're not staying up late to find out what happens next—you're struggling to even stay awake. Why did that one detailed review feel more convincing than 3,021 ratings averaging 3.67 stars? In today's edition of Why We Buy 🧠 we'll explore Base Rate Fallacy—why we focus on specific details more than statistical probability. Let's get into it.
🧠 The Psychology of Base Rate Fallacy
In a classic study, participants were told about a city with two cab companies: one has only blue cabs (representing 85% of all city cabs) and one has only green cabs (representing the remaining 15%). A cab caused a hit-and-run accident at night. And a witness, who identifies the right cab color 80% of the time, claimed the cab was green. So… what are the odds the cab was actually green? Most participants said around 80%, matching the witness's accuracy rate. But the correct answer was 41%. Participants ignored base rate information (only 15% of cabs are green) and instead focused on individuating information; that is, the specific details of the witness (80% accuracy rate).
We may latch onto situation-specific details because they seem more relevant than the broader statistical likelihood. The more specific the detail, the more we pay attention. We may also rely on a "looks like the type" mental shortcut, judging things by how well they seem to fit a category instead of checking actual probabilities. This means customers are more likely to make decisions based on attention-grabbing details rather than considering the full picture.
🤑 How To Apply This
Alright, so how can you apply this right now to sell more?
E-commerce Lead with your standout stat Native displays an impressive stat "150,000+ 5-star reviews" across their site instead of cherry-picking a handful of glowing but generic testimonials. That massive number becomes your reference point, so you don't wonder how many customers Native actually has in comparison.
Instead, you're confident that satisfaction is the norm with Native, not the exception. So you make a decision without having to compare 11 different deodorants (and ending up with none).
Ads Make the risk feel real to drive action Allstate runs ads showing car accidents, break-ins, and fender benders. Those vivid disaster scenarios immediately snatch your attention, so you stop thinking statistically ("that'll probably never happen to me") and start thinking emotionally ("what if it does?").
In reality, you'll probably go years without filing a claim. But those dramatic, story-based scenarios burn into your brain and do something broad statistics can't: They get you to act.
So you get necessary coverage now instead of putting it off until it's too late.
SaaS Show results from everyday users, not just pros Many people stay faaaar away from graphic design because their design skills stop at "stick figures." So Canva showcased billboard designs with credits like "Designed by Kari" on them—aka a regular user, not a pro.
You don't stop to wonder what percentage of Canva users actually create billboard-worthy work, or how much design experience Kari had before she started. You assume stellar results like hers are typical, when in reality, most users are just tweaking templates. So instead of letting fear hold you back, you sign up feeling confident you can create something equally amazing without a design degree.
💥 The Short of It
People tend to ignore base rates and focus on individuating information (specific details of a person, product, or situation) because it feels more relevant. So if you want your customers to make faster, more confident decisions? Give them compelling details to focus on. Until next time, happy selling!
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