Picture an advertisement for a cash back rewards credit card. A couple of months ago, this card was offering 5% cash back for the first 3 months and then 1% after that. Now they are offering 1% cash back and a 20% bonus on all cash back earned in the first year.
Which of these deals sounds better?
Many people will say the second one, because the percentage is higher, and the time period is longer. But take another look at what is actually being said.
20% on all cash back earned. So effectively 1.2% on purchases for the year. The first offer gave an average of 2% cash back in the first year, assuming evenly-spaced spending, and the new offer gives only 1.2%.
What lesson can you take away from this? How you present your message is almost as important as what the message says.