The Power of Compound Interesting

“Compound interest* is the most powerful force in the universe.”

Did Einstein really say that? Quote Investigator says no*. But it got me thinking about something else.

In this attention economy, we don’t just follow anyone. We follow influencers, thought leaders, curators or even movie studios (if I see A24, I assume the film will be, at the very least, interesting). We trust them because they consistently deliver content that captivates us - their batting average is high.

This trust builds over time. Every interesting interaction reinforces the expectation that the next one will be worthwhile. The more consistently interesting they are, the more willing people are to engage with their content - even when it doesn’t click at first.

They’re earning interest on their interesting. This is interesting, compounded.

So staying interesting is crucial. Creators reinvest the interest they earn from each piece of engaging content  -  the trust  -  back into their “interesting principal.”

Brands are no different. Each interesting interaction builds on the last. Call it The Law of Compound Interesting: the more consistently interesting a brand is, the more likely its future messages are to be welcomed.

These interactions can be everywhere: packaging, call centers, receipts, notifications, advertising, the background music at the store.

In the end, what is a brand if not a promise of future experiences that are consistently interesting and satisfying?

This promise is an emotional shortcut. It makes people more predisposed to pay extra attention or like what we’re seeing. That’s our System 1 thinking in action (Kahneman strikes again*). Staying interesting carves out a cozy space in people’s minds through positive reinforcement.

You can wreck all that sweet compound interesting with small missteps  -  even a thoughtless notification. It’s a breach of trust. Once a brand is linked to something dull, it risks tarnishing the equity value built over years.

Is compound interest the most powerful force in the universe? Hardly - in Physics, there’s literally something called “strong force”, for starters. But it takes no Einstein to see how compound interesting is quite the force in marketing.

Brands that are consistently interesting aren’t just noticed -  they’re increasingly welcomed. That is true power.

References:

Compound Interest
https://www.investopedia.com/terms/c/compoundinterest.asp

Did Einstein say that?
https://quoteinvestigator.com/2011/10/31/compound-interest/#more-2923

Daniel Kahneman & System 1 and 2
https://fs.blog/daniel-kahneman-the-two-systems/