Menu Language Testing
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Shaan Puri shares a powerful story about how A/B testing menu language dramatically improved his online sushi restaurant's performance.
The Sushi Restaurant Experiment
- Shaan and his partners started an online sushi restaurant while at Duke University
- They consulted with behavioral economist Dan Ariely (author of "Predictably Irrational")
- They implemented systematic A/B testing by alternating menu versions day by day
- They tracked daily revenue and conversion rates to measure effectiveness
Key Findings from A/B Testing
Price Testing
- Counterintuitively, raising prices increased both revenue and conversion rates
- Lower prices made customers perceive the sushi as "cheap" and therefore low quality
- People don't want "cheap sushi" as it's perceived as "the worst sushi"
Language Testing
- They tested three different models of menu language
- Original "accessible" version: simple descriptions (e.g., "Philadelphia roll: salmon and cream cheese wrapped up, tastes great")
- Enhanced version: added descriptive language highlighting quality (e.g., "fresh never frozen Atlantic hand-caught salmon")
- More descriptive language significantly improved conversion rates
- The sushi industry, like wine, benefits from creating its own specialized language
- Detailed descriptions make knowledgeable customers feel smart and like insiders
Impact of A/B Testing
- Not just a minor improvement but "a two x three x type of improvements" by stacking these techniques
- Showed that restaurants should A/B test their menus but most don't
- Demonstrated that marketing isn't just a superficial addition but can "dramatically change your business"
- The same product sold with better words can create a "multiplier on success"
Broader Lesson
- Marketing and language choice are fundamental to business success, not just add-ons
- The way you describe your product can be as important as the product itself
01:06:11 - 01:07:54
Full video: 01:11:28SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.