Channeling Cialdini - Using Persuasive Messaging to Increase Add to Cart (Conversion Conference Chicago 06/12)

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Behavioral psychology and stimulating the "lizard brain" is emerging as one of the hottest topics in conversion optimization. This deck presents the case study of an über-optimized web site with over $200 million in sales, and how it used persuasive messaging to drive a statistically significant increase on their click-to-cart KPI.

Using Robert Cialdini's six weapons of influence as the foundation of their strategy, this consumer goods e-commerce powerhouse (that had already maxed-out the traditional conversion rate optimization strategies) moved the needle by tapping into the subconscious mind of its visitors. Learn how these principles work, and what you can do to leverage them in your messaging for dramatic results.

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  • Hi – I’m Phillip and I am here today to share our case on how we used Cialdini’s persuasive weapons to drive statistically valid lift in click-2-cart KPI on one of the biggest ecommerce sites in BrazilBefore I get started, like to thank Tim, Casey and the Sitetuners team for inviting us. As I mentioned – I am from Brazil.Just before Xmas last year, I got a call from the analytics head of the Brazilian “Dafiti” asking me what type of magic I was doing to increase his add-2-cart metric by over 40%. He had a reasonably big team, intelligent people that were constantly optimizing – I mean, this site is UBER-OPTIMIZED.10-month project – with super fresh data, which we believe is pioneering workWe’re not selling anything here --- what we’re trying to do here, is contribute to the science of CRO with our abilities and limitationsOur driver was excellence in the process and data – and we recognize the project’s limitations and working on ever-evolving --- and we’re open for criticism, suggestions and improvements. We’re really TRYING here.
  • What I’ll be talking about todayBut before we get started …[=======]
  • Before we get started, I’d like you to take a second and think about the best salesperson you know.Is it that person who sold you your latest car? Is it someone at your local Gap? Or maybe your brother-in-lawWhat makes that person so special – why are they fundamental to the process?[=======]To-do:Use image (or images)Clinton ??? Tim Ash
  • Let’s see the pros in action.This is a campaign from Ogilvy – and David Ogilvy is considered one of the best ever.[=======]
  • How can we translate this experience to the online world?Came here to talk about the opportunity ofpersuasive messaging applied to CRO and how you can use persuasion – more importantly, emotional psychology to help leverage CRO in your web strategy.[=======]
  • Here are some credentials that allow this Brazilian to speak to you (yes, I am talking in the 3rd person)
  • Take money from pocket….. Dramatize it.How does this work. A person has $20 dollars that he/she can share any way they want with another one. The receiver can either accept that offer, and keep the share designated to them, or reject the offer and both get nothing.In industrialized cultures – more than half of the people simply reject offers of less than 20% of the total.
  • Talk about Cialdini as the Yoda of Persuasion … BTW – who doesn’t know Cialdini (give person book) – then ask for TweetTo Persuade someone is to try to convince that person to undertake a course of action or embrace a point of view through arguments, reasoning and appeals.Deliberate attempt to influence
  • Companies leverage emotions – but not that much online.
  • Besides the most important difference of actually touching and trying on the product – we mapped some differences of the off vs online experience. So – is the answer just to put an online “salesperson” on your site ?
  • Here’s what we DON’T want to do … Anyone remember the Microsoft Office “clip” ?You open a Word document, and then this thing comes over the screen and asks “how can I annoy you today”[=======]
  • here’s what most stores consider a “persuasive agent” not that much better than the Recommendation engines – focused on PRODUCT and not on personWell … let’s get back to CialdiniMost importantly, selling is not != explaining
  • Prove that persuasion worksCreate a true and valid experiment: Isolate element being tested and prove it statisticallyDefine 1 KPI and enhance that --- also, limitations of access to certain informationDon’t screw up the regular site – specially during Christmas season
  • How to we online-nize the salesperson “agent”?Our secret sauce – the technology --- to represent what would happen offline
  • Contextualize DafitiThe Zappos from BrazilPass impression that its really hard to optimize this – contextualize for analytcs present “you couldn’t optimize it”Dafiti, the largest fashion e-commerce in BrazilDafiti is the leading fashion e-commerce in Brazil. The company initiated its activities in the country in January 2011 and just over a year of operations has expanded to other Latin American countries, such as Chile, Colombia, Mexico and Venezuela. The company's concept is to offer to online consumers the latest trends in fashion and lifestyle, aligned to free of charge delivery, exchange at no additional cost and payment easiness. Aiming to provide the largest fashion portfolio in Brazilian internet, Dafiti showcases leading and world-renowned brands. The online store offers over 50,000 products, including clothing, footwear, accessories and beauty products from 500 national and international brands. Dafiti’s consumers are interested in fashion and the Internet, but it is possible to also consider people seeking to purchase products easily and securely, in a reliable and certified quality platform. As a complementary service, the portal produces editorials with fashion tips and trends. Dafiti has presented the highest growth among Brazil’s fashion online retailers. Last year, the store registered 74 million visitors – for the first quarter of 2012, there were 43 million visitors. The company is an investment of Rocket Internet, a leading business incubator in Europe that shareholders large companies such as Groupon and Glossy Box. Dafiti is managed by four partners, Germans MalteHoreyseck and MalteHuffmann, French ThibaudLecuyer and Brazilian Phillip Povel.
  • The visual element – on product pageSelected messages according to persuasion – also neutral messages
  • The visual element – on product pageSelected messages according to persuasion – also neutral messages
  • The visual element – on product pageSelected messages according to persuasion – also neutral messages
  • Adaptative and individualizing algorithmAn algorithm that will avoid pitfalls that don’t happen offline – such as showing the same message on different products, or simply showing a message on every single product.Intelligent math that understands and matches the reaction of users based on their behavior.
  • Improved the information we were capturing and processing – very much more precise.Even though the lift numbers weren’t so impressive
  • We proved our hypothesis … and I’d like to stress on a site that is already very, very optimized But, there were some other curious findings “Eureka” vs “Isn’t that interesting”
  • Talk about how scarcity didn’t work, and ponder why? Is the web already aware of scarcity?
  • This is a Google translated page
  • What we are implementing now: better + more persuasive messages (making sure they are relevant to the triggers) – also improve neutral messagesimrpoving the algortithm, and matching with other test
  • What’s the twist on showing not everyone can apply this – what’s our secret sauce ---- use car salesperson (“reads you”)Different approach to A/B testingTalk about challenges: …….
  • *Fechamento ---- eutrouxenovidades, um case, ate dei um livro e dinheiro
  • Channeling Cialdini - Using Persuasive Messaging to Increase Add to Cart (Conversion Conference Chicago 06/12)

    1. 1. Channeling Cialdini Phillip Klien @pklien Chicago - June 25th, 2012 ;)© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    2. 2. Agenda • About BTBuckets, Predicta and me • What online can learn from offline persuasive techniques • The Case: applying persuasion to e-commerce CRO  Mission (challenges and limitations)  Our approach  Results - WOW, IT REALLY WORKS  Lessons learned • How you can use persuasive agents in your online communication • Q&A© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    3. 3. Imagine interacting with the best salesperson you know© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    4. 4. © Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    5. 5. Where is this guy online ???© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    6. 6. About BTBuckets About Predicta1st free personalization + on-site BT platform Pioneer marketing service company in Brazil10,000 ’s of sites and 2.2 Billion visitors segmented 150 FTE and 12 years on the road • One of the 10 most innovative companies in Brazil (Fast Company 2012) • 25th most innovative company in Brazil (Época Negócios / FGV in 2009) • Most innovative company in the world in Web Analytics (Web Analytics Association 2009) • Second place in the Web Analytics Championship (Web Analytics Association 2008) • 18th best company to work for in Brazil (Great Places To Work Institute 2009)© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    7. 7. Humans are irrational emotional creatures.© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    8. 8. The “Ultimatum Game” 10;10 0;0 15;5 0;0 Image Credit: Wikipedia Image Credit: http://www.alltop10list.com/top-10-list-of-hit-movie/© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    9. 9. Persuasion.© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    10. 10. Online strategies are not focused on emotions.© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    11. 11. B&M Store Online Store Product Offering Decoration/Design Price Security Product Information Persuasive Agent© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    12. 12. Image Credit: http://www.akronoticias.com/2011/04/9930-54986.htm© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    13. 13. © Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    14. 14. © Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    15. 15. Robert B. Cialdini’s Six Weapons of Influence • Scarcity When we think an item is scarce, we will want it more. • Reciprocity Image Credit: Wikipedia We should try to repay, in kind, what another person has provided us. • Authority We tend to obey authority figures – even if the acts are objectionable.© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    16. 16. Robert B. Cialdini’s Six Weapons of Influence • Social Proof We determine what is correct by finding out what other people think is correct. • Commitment/Consistency Image Credit: Wikipedia Each time we comply with a request, even a trivial request, it modifies our attitudes and self-concept such that we will tend to act more consistently with that type of action. • Liking We most prefer to say yes to the requests of people we know and like.© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    17. 17. The Case.© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    18. 18. Project Mission Hypothesis: Adding a persuasive element to the product page based on user behavior may increase products being added to cart. Success Metric: Add to cart clicks on product page.© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    19. 19. Our Approach. 1 2 3 4 Huge + optimized Isolated Persuasive Adaptive + ecommerce creative messages from individualizing web site element proven framework algorithm© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    20. 20. About Dafiti 1 Leading fashion e-commerce in Brazil • Over US$220 million in sales (2011) • 43 million visitors (Q1 2012) • 50,000 products • 500 brands • Largest display advertiser in Brazil (03/2012 comScore) Owned by Rocket Internet, Groupon Shareholder© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    21. 21. 2© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    22. 22. 2© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    23. 23. 2© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    24. 24. 3 Commitment / Authority Liking Reciprocity Scarcity Social Proof Neutral Consistency Stylists Tip: This Inventory One of the most Fast delivery item is a must almost searched in your closet finishing products this week Stylists tip: hot Few items More than 10 Don’t miss this item for 2012 remaining units sold today item Recommend One of the most Best offers ed by Dafiti voted items of stylists the week Clients agree: Top product© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    25. 25. 4 Image Credit: Wikipedia© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    26. 26. Project Timeline© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    27. 27. The Results.© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    28. 28. “Predicta introduced us to Cialdini and some techniques in emotional persuasive technology that brought effective lifts in our click to cart metric – and ultimately to our bottom line.” Malte Huffman Dafiti Co-founder© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    29. 29. “Add to cart” KPI Lift of Persuasive Element 105 104 103 102 4.4% 101 100 99 98 97 Add to Cart (control) Add to Cart (Persuaction) Z-score: 3.93 Source: Persuaction Predicta Date Range: 2012/03/24 to 2012/05/10© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    30. 30. “Add to cart” KPI Lift of Persuasive Messages vs Neutral Messages 105 104 103 102 101 100 4.1% 99 98 97 Add to Cart (neutral) Add to Cart (persuasive) Z-score: 2.93 Source: Persuaction Predicta Date Range: 2012/03/24 to 2012/05/10© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    31. 31. Project Mission Hypothesis: Adding a persuasive element to the product page based on user behavior may increase products being added to cart. Success Metrics: Add to cart clicks on product page.© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    32. 32. Different persuasion levers had different reaction 12% cart click KPI Lift in add to 10% 8% 6% 4% 2% 0% -2% -4% Source: Persuaction Predicta© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    33. 33. © Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    34. 34. What we learned.© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    35. 35. How you can apply a persuasive agent to your CRO strategies: • Learn the science about persuasion; • Remeber the offline experience (context and frequency); • Tag A/B tests with persuasive information; • Don’t forget that other CRO rules are still valid. … but most importantly, it’s not only on WHAT you sell (or recommend), but HOW© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    36. 36. Recommended reading© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    37. 37. Who wants to help build on this legacy? pk@btbuckets.com Thank you© Predicta 2012 Conversion Conference – Chicago @pklien #convcon
    38. 38. © Predicta 2012 Conversion Conference – Chicago @pklien #convcon

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