How to use herding to grow your SaaS

Humans are social animals, we’re programmed to trust the herd. This knowledge can help you improve your conversion rate. Here’s how.

If you have even been to Manhattan you know how the herding bias look like.

The first time I started suspecting something weird was going on when in 2013 I found myself in New York City for the first time. The summer was in full bloom, and there were plenty of tourists — and I as one of them. As someone who’s been building an Asian grocery stores chain I was passionate about the topic of food and visiting the well-known Hell’s Kitchen district was on my to-do list. When I go there I was deeply disturbed by the following picture: some restaurants remain empty while others were crowded and more that that — there were lines outside of people waiting for their turn to dine. I figured some of the restaurants were good while others not so much. I got curious and asked one person at the end of one exceptionally long line: “Excuse me, sir. Is this a famous restaurant or something?” I was shocked to hear:
— No idea, I’m in Manhattan for the first time. But I figured if there’s a line it should be a good place.

Have you noticed that too: when empty places remain empty, the most visited ones attract more customers. Goods on Amazon with the MOST reviews are bought more often. Profiles with more followers get new followers faster…Well, this one also because social media algorithms work this way but their work is based on the same principle that impacts our decisions — a herding instinct. We believe that “the herd” knows something we don’t and follow the opinion of the majority.

When empty places remain empty, the most visited ones attract more customers. Goods on Amazon with the most reviews are bought more often. Profiles with more followers get new followers faster

The good side of herding

Humans are social animals. And as such, we trust the herd when it comes down to being protected. This is what helped us to survive throughout millions of years of evolution…