Menu Language Testing

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: 01:11:28
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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.

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