• Save
Behavioural economics and digital marketing
Upcoming SlideShare
Loading in...5
×
 

Behavioural economics and digital marketing

on

  • 5,563 views

Applying the principles of behavioural economics to digital strategy

Applying the principles of behavioural economics to digital strategy

Statistics

Views

Total Views
5,563
Views on SlideShare
3,606
Embed Views
1,957

Actions

Likes
30
Downloads
0
Comments
0

19 Embeds 1,957

http://www.stateofdigital.com 914
http://www.stateofsearch.com 659
http://www.scoop.it 273
http://home.searchfree.net 45
https://twitter.com 40
http://feeds.feedburner.com 4
http://www.newsblur.com 3
https://www.google.com.sg 3
http://www.linkedin.com 3
http://evirtualsalesforce.com 2
http://newsblur.com 2
http://www.docshut.com 2
http://www.google.co.uk 1
http://www.sandiyasolutions.com 1
http://webcache.googleusercontent.com 1
http://plus.url.google.com 1
http://stateofdigital.56degrees.co.uk 1
http://desktop.onemac.net 1
http://www.google.rs 1
More...

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Behavioural economics and digital marketing Behavioural economics and digital marketing Presentation Transcript

  • Behavioural economicsin digital marketing
  • What is behaviouraleconomics?
  • Versus
  • The great issue in our industry over the last 15years is that, while there has been an explosionin the technologies and media available tomarketers, our models and metrics describinghuman behaviour and decision-making haveoften been left stuck in the 70s.Rory Sutherland, Vice Chairman, Ogilvy Group
  • Quit smoking BEHAVIOURAL CLASSICAL PSYCHOLOGY/ ECONOMICS ECONOMICS ADVERTISING Humans are Consumers are Humans are “predictably rational emotional irrational” Induce fear or guilt Pre-commitment: via anti-smoking Pledge to give up Prohibitive pricing for campaigns smoking in a public cigarettes forum like Facebook that Deter using will help people control grotesque images future behaviour.
  • Ease traffic congestion in Singapore BEHAVIOURAL CLASSICAL PSYCHOLOGY/ ECONOMICS ECONOMICS ADVERTISING Humans are Consumers are Humans are “predictably rational emotional irrational” Fixed fee ($60 per It’s cool to cycle to ERP: Institute a month) to drive in work. variable “pay for Feel the pinch! “restricted zones”. usage” system, Prohibitive pricing for Make friends by where loss incurred is car ownership carpooling. made visible every Increased parking time the option is charges used. Increased vehicle taxes
  • Behavioural economics in digital marketingChoices can bedesigned.
  • Behavioural economics in a nutshell:Employing hidden forcesto shape decisionsIn making decisions about life and what we buy and do, thecontext, framework, interface, medium and pathways through whichwe reach decisions may have a greater influence on the decisions wetake than the long-term consequences of the decision.
  • Behavioural economics in digital marketing:Engineering the smoothestpath to conversion High Triggers succeed here Motivation B=MAT Triggers fail here Low Hard to do Easy to do Ability BJ Foggs’ Behavioural Model
  • The Art of Choosing Sheena IyengarMental jam
  • Paradox ofchoiceToo much choice leads to decision paralysis.
  • Limiting choice online Increase click throughs byfocussing on one or two choices.
  • Limiting choice onlineIncrease social sharing by giving salience to the key channels.
  • The best guide to Singapore shopping and dining:Go where the queues are.
  • Social proofPeople assume the actions of others reflect correctbehaviour for a given situation.
  • Social proofing onlineInstill trust, reassurance and respect
  • Social proofing onlineDrive adoption
  • Social proofing onlineMake an idea travel
  • Social proofing onlineIncrease desirability
  • 578 Christmascards to perfectstrangers.117 responsesreceived.
  • Theory ofreciprocityAn inherent human need to return a favour that was done for us.
  • Reciprocation onlineGenerate awareness and buzz through social payment
  • Reciprocation onlineCreate advocates by starting with: “what can I give?”
  • Reciprocation onlineBuild mutually beneficial communities by enabling mutual admiration
  • Absence makes the heartgrow fonder
  • Scarcitycreates value.
  • Using the scarcity principle onlineDrive traffic to your stores
  • Using the scarcity principle onlineTarget hot prospects and lost carts to bite the bait
  • Using the scarcity principle onlineStoke the fire closerto conversion points
  • Unfamiliaritybreeds contempt.
  • Status quo bias People will usually follow the path of least resistance when given options.• I’d like to register as an organ • I do not wish to register for organ donor donation 2• I’d like to skip this question 1 • I’d like to register • I’d like to defer my decision • I’m already registered 3Default position: Default position:You are not a willing You are a willingdonor donor
  • 1 2 3 Setting the default positionSet the default, but ease the adoptiveprocess by providing pre-launch opt-ins
  • Set the context.
  • FramingPeople are strongly influenced by the way choices are framed(i.e., presented). 90% lean 10% fat
  • Framing in digital marketingCreate desirability around price by using an anchor
  • The Goldilocks Effect Framing in digital marketing Create desirability around theoption that’s right for the business.
  • The power of the (publicly) written word.
  • CommitmentPeople like to believe that their behaviour is consistent with theirbeliefs.
  • Leveraging commitment in digital marketingGuide future behaviour bygetting people to publicly commit to something
  • Leveraging commitment in digital marketingCreate advocates by activelyencouraging content sharing
  • Progress report cards for everyone
  • Feedback loopsCreate pathways of desired behaviour by making behaviour visual inthe form of personal informatics
  • Feedback loops in digital marketing Encourage consumers to reveal more information aboutthemselves for a relevant benefit.
  • How many more miles do I need to achieve PPS membership? Loyalty Am I on my way to retaining or losing my Elite status? Feedback loops in digital marketing Compel loyalty by providingvisual progress reports against set goals
  • Loss aversion /ProspectTheoryConsumers feel a bigger absolute impact Losses hurt more thangains feel good. #youprefer Income Tax VS VAT
  • Drive adoption by giving out limited free trials
  • Symbolic non-solution?
  • data FRAMING mobileSOCIAL PROOF purchase FEEDBACK LOOP apps LOSS AVERSION social PARADOX OFSTATUS QUO BIAS crm / loyalty CHOICE click throughs COMMITMENT website design SCARCITY edm RECIPROCITY Clearly understood principles for driving conversions
  • Recommended: http://www.behaviormodel.org/
  • Q&A