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What do you think of this?

It’s the product order page for a pet supplies website.

More specifically, what do you think about the auto delivery being defaulted?

Well, from personal experience I can tell you it is difficult to recognise you are committing yourself to auto-delivery and this inadvertent decision only occurs to you when boxes of Chicken Breast keep appearing on your doorstep.

So, is this business manipulating its customers?

Is nudging manipulative?

It’s an important...

It costs less to retain than acquire a customer.

But you know that already.

The Australian Communications and Media Authority cited research that:

• Increasing retention by only 2% has the same effect on profits as having to cut costs by 10%;
• Reducing defection by 5% can increase profits by as much as 125%; and
• It costs 5-7x as much to acquire as retain customer.

Added to that, a customer leaving is unnatural. Why? We're built to leave things as they are. It's our status quo bias.

So if...