Podcast Summary: Nudge – Episode "Six Eco-Brands Using Psychology to Sell"

Release Date: May 12, 2025
Host: Phil Agnew
Guest: Chris Baker – Award-Winning Advertiser, Social Change Strategist, and Serial Founder

Introduction

In this compelling episode of Nudge, host Phil Agnew welcomes Chris Baker, an illustrious figure in advertising and social change strategy. Chris shares his journey of founding impactful brands and delves into how behavioral science has been pivotal in transforming eco-friendly businesses into market successes. The episode meticulously explores six eco-brands that ingeniously leverage psychological principles to drive sales and foster social impact.

Change Please: Transforming Homelessness Through Coffee

[00:00 – 01:12]
Chris Baker recounts the inception of Change Please, a coffee brand designed to tackle homelessness not by providing shelters, but by offering employment opportunities. Inspired by observing a homeless individual repeatedly attempting to receive change while he purchased a latte, Chris conceptualized a solution that channels the money spent on coffee towards training homeless individuals as baristas.

Key Quote:
"We find people from local homeless shelters and partner with charities and councils. We train them as baristas, they get paid the London living wage and then they work on our carts." – Chris Baker [01:19]

Behavioral Strategy:
Change Please implemented a cost transparency infographic comparing their coffee's cost breakdown with that of a typical high street coffee. This visual demonstration revealed that 54% of their sales directly support homeless individuals, contrasting sharply with the traditional café where only 21% goes to staff. This transparency not only built trust but also persuaded both customers and businesses to support the brand.

Impact:
The transparency infographic was a game-changer, enabling Change Please to expand to 23 countries with revenues nearing £40 million and partnerships with prominent entities like Delta Airlines and WeWork.

Oatly: Rebranding to Expand Market Appeal

[07:32 – 11:54]
Chris Baker discusses Oatly, the well-known oat milk brand. Initially perceived as a niche health product with packaging emphasizing its nutritional benefits, Oatly faced limited market traction. The brand underwent a significant rebranding effort, shifting away from highlighting health aspects to creating a distinctive and playful visual identity.

Key Quote:
"The moment it got on shelf, people got it in their hands and they saw that within 18 months, sales had doubled." – Chris Baker [09:32]

Behavioral Strategy:
Oatly employed reframing by removing health-centric messaging, which unintentionally limited their audience to health enthusiasts. By adopting a more visually appealing and iconic packaging that didn't overtly emphasize health benefits, Oatly broadened its appeal, making it a trendy choice among a wider demographic.

Supporting Study:
Chris references the "Unhealthy Tasty Intuition" study, which found that consumers often perceive healthier options as less tasty. By removing health labels, Oatly circumvented this bias, enhancing consumer delight and sales.

Outcome:
Post-rebranding, Oatly's sales surged, and terms like "oat flat white" became mainstream, solidifying Oatly's position in the market.

Nude and Grubclub: The Power of Concrete Language

[12:00 – 14:55]
The discussion shifts to Nude, a chewing gum brand striving to eliminate plastic in its products, and Grubclub, a pet food company utilizing insect protein.

Key Quotes:

• "Chew plants, not plastic." – Nude [12:38]
• "Dogtopia is the fifth biggest meat eater on the planet." – Chris Baker [14:03]

Behavioral Strategy:
Both brands excel in using concrete language to make their messages memorable and impactful. Nude’s slogan "Chew plants, not plastic" replaces abstract terminology with tangible, easy-to-visualize statements, enhancing recall and consumer engagement. Similarly, Grubclub leverages concrete statistics to highlight the environmental benefits of insect-based pet food.

Supporting Study:
A study by Richard Shotten, Mike Trehearn, and Leo Burnett demonstrated that consumers remember concrete phrases ten times better than abstract ones (6.7% vs. 0.7%). This evidences the effectiveness of Nude and Grubclub's messaging strategies.

Impact:
These strategies have enabled Nude and Grubclub to differentiate themselves in crowded markets, fostering brand loyalty and expanding their customer base.

Tony's Chocolone: Harnessing Variable Rewards

[16:00 – 20:00]
Tony's Chocolone is spotlighted for its innovative and controversial marketing tactics aimed at combating slavery in the chocolate supply chain.

Key Quotes:
"Kids will vividly remember missing the chocolate for one day and then getting a variable reward of 2 on the following day." – Phil Agnew [17:32]

Behavioral Strategy:
Tony's Chocolone employs the variable rewards principle, rooted in B.F. Skinner’s research on reinforcement. By intermittently removing chocolate from their Advent calendars and then compensating with additional pieces the next day, they create a memorable and engaging consumer experience. This unpredictability enhances consumer attachment and encourages repeat purchases.

Outcome:
Despite mixed reactions, the stunt effectively raised awareness about child slavery and reinforced the brand’s commitment to social responsibility, making the campaign both talked-about and impactful.

Ecosia: Leveraging the IKEA Effect for Sustainable Search

[18:34 – 20:00]
Ecosia, an alternative search engine, integrates behavioral principles to retain users and promote tree planting.

Key Quotes:
"Knowing that I had contributed to planting dozens of trees kept me using that platform." – Phil Agnew [19:02]

Behavioral Strategy:
Ecosia taps into the IKEA effect, where individuals value products more when they feel a sense of ownership or contribution. By displaying a live tracker of trees planted and providing regular reports on personal contributions, Ecosia fosters a connection between user actions and environmental impact, enhancing user loyalty despite a less robust search engine compared to giants like Google.

Impact:
This strategy not only retains users but also aligns their daily habits with environmental sustainability, driving substantial tree-planting initiatives globally.

Conclusion

Throughout the episode, Chris Baker elucidates how behavioral science is intricately woven into the strategies of these six eco-brands, enabling them to resonate deeply with consumers and achieve remarkable success. From cost transparency and reframing to concrete language, variable rewards, and the IKEA effect, these psychological principles have been instrumental in transforming brands into agents of positive social and environmental change.

Final Thoughts:
Chris emphasizes that while behavioral science provides a powerful toolkit, the core of these brands lies in their commitment to creating meaningful solutions. The combination of innovative strategies and genuine social impact sets these change brands apart in today's competitive marketplace.

Additional Resources:
Listeners are encouraged to explore Chris Baker's book, Obsolete: How Change Brands Are Changing the World, for a more comprehensive understanding of these strategies and additional case studies.

Notable Quotes with Timestamps:

• "We find people from local homeless shelters and partner with charities and councils. We train them as baristas, they get paid the London living wage and then they work on our carts." – Chris Baker [01:19]

• "The side by side comparison was a game changer." – Phil Agnew [03:24]

• "Consumers remember 6.7% of concrete phrases but just 0.7% of the abstract ones." – Phil Agnew [13:32]

• "Knowing that I had contributed to planting dozens of trees kept me using that platform." – Phil Agnew [19:02]

This episode of Nudge offers invaluable insights into the intersection of behavioral science and sustainable business practices, providing listeners with actionable strategies to implement in their own ventures.