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Social Media Marketing with Behavioural Economics #9 // WeWork Southbank Central, London

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My ninth presentation at WeWork London offices. You will find more details about the behavioural economics and how to implement into the social media marketing. I have added new examples and new case studies.

https://CronusConsultancy.com
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Social Media Marketing with Behavioural Economics #9 // WeWork Southbank Central, London

  1. 1. Social Media Marketing with Behavioural Economics Decode Consume Mind! by Uygar Kilic WeWork Southbank Central, London // 6th March, 2018
  2. 2. Behavioural Economics
  3. 3. behavioural economics explains why we make irrational decisions and how we rationalise them benefit for the social media? you save time, save money on ads and increase your revenue or reach your goals in a sustainable route
  4. 4. we make decision based on gain and lose {prospect theory explains this} do you really need the new iPhone or the new shoes or the new cars? we always find rational reasons for our decisions we don’t make a decision without a reason also when we focus in a gain of a product, we usually ignore the losses {iPhone 8 has ageing design, luxury cars consume too much fuel and high heels hurt} human behaviour is like weather, you can predict it but it may change all of a sudden {butterfly effect}
  5. 5. prospect theory explains how we feel for the things we loss the feeling of loss is nearly five times more than the feeling of gain ! "
  6. 6. we would prefer the 75% fat free burger {so, our goal of healthy eating is achieved!} those heels are designed for posing not walking {created a new goal to buy them and rationalised the purchase} Lipton’s 5-min TV ad on 17 Turkish TV channels
 {created a motivation to talk about the ad in real life and on social media. became viral} #LetsTalkNow
  7. 7. some other examples; Starbucks loyalty card {basically motivates you to spend more without even realising it} contactless card {same trick} showing different prices for the same service to different browsers {safari browser = #} clapping end of the concert {social norms}
  8. 8. Why Behavioural Economics & Social Media?
  9. 9. sell a solution and think about functional and emotional benefits! don’t try to sell a service, a feature or a product “people don't want to buy a quarter-inch drill, they want a quarter-inch hole” “if you wish to sell a heater, try selling the first hot air, people need hot air during winter”
  10. 10. AirBNB people look for a clean, safe, inexpensive shelter, not a particular chain or a brand of hotel that’s how AirBNB over took the hotels! solution based product and marketing approach!
  11. 11. nowadays people are connected with each other through social media and also companies are connected with the consumers through social media however, many social media campaigns and content are lacking the consumer oriented approach!
  12. 12. you might be saying; “social media ads don’t really work, we tried a lot” you are right! unfortunately, 85% of the adverts never work if the ad is not designed well and without considering the problems and the goals of the consumer it won’t work and ugly truth social media means advertisement nowadays as the social media performance is connected with the advertisement performance if the ads don’t work well, the social media performance will not achieve a success!
  13. 13. let’s talk about goals! we always have an explicit and an implicit goals explicit goals are category specific and implicit goals are at psychological level emerged before the product existed we visit to buy a latte from Starbucks because, it satisfies our implicit goals; social status, personality, enjoyment same applies to the WeWork, we don’t buy a shared office space, we buy an experience!
  14. 14. it is important to understand different personalities next section explains this!
  15. 15. Seven Kinds of People {Psychographics}
  16. 16. it is very important to understand different types of people it helps you to create social media campaigns that will work better! it is called psychographics as well thanks to Young & Rubicam, we have seven kinds of people
  17. 17. Explorer // look for challenge, aim to discover, first to try out new things, usually young, brands with new experiences Aspirer // materialistic, driven by others’ perception, self-esteem brands Succeeder // self-confident, goal orientated, luxury brands Reformer // value their own judgement, anti-materialist, they will not buy new brand because they are new, intellectual Mainstream // families, domestic and safe life, tend to copy others, largest group, prefer brands that are consumed by others Struggler // no future plan, disorganised, heavy junk food and alcohol consumer, visual impact and psychical sensation brands Resigned // older generation, constant and unchanged values, prefer brands that offer safety and economy
  18. 18. How to apply Behavioural Economics?
  19. 19. What I can do with Behavioural Economics?
  20. 20. More leads More likes More followers More clicks More visit to store Reaching your goals!
  21. 21. Nudge Framing Anchoring Effect Social Norms Scarcity Effect Priming Effect
  22. 22. Let’s start with the Decision Making Process
  23. 23. whether B2B or B2C for B2B you need to influence five different people {user, buyer, influencer, decider, gate keeper} humans make the final purchasing decision! whether an airplane or a coffee until the robots take over!
  24. 24. Kahneman’s framework {Nobel prize winning} explains how we make decisions! System 1 Autopilot / System 2 Pilot
  25. 25. strong brands benefit from the System 1 that’s why people prefer particular brands against their competitors without thinking {Apple, VW, Fenty Beauty by Rihanna} however, people don’t buy iPad like old days {System 2} the queue for the Fenty Beauty by Rihanna, they all have a problem to solved and a goal to be achieved by buying this product!
  26. 26. the goal is to shift your brand from System 2 to System 1 to understand how we can shift from System 2 to System 1 we need to know how our brain works
  27. 27. our brain stores the information in interconnected way computers store each information individually, that’s why they can find a document so quickly! our way of storing information is called associated memory
  28. 28. so, everything you say about your brand creates a neural network of information through the associated memory! always remember, consumers focus on problem solving information this problem can be social status or functional benefit or financial incentive! our decision making process is affected by the thing we don’t even notice, that’s why experience is really important! {imagine if the Uber app crashes all the time} that’s how we change our perception towards a brand
  29. 29. before we start the shifting process from System 2 to System 1, we need to identify these;
  30. 30. what is the problem you are solving and what goal your product is offering? if there is no problem, show consumers the problem explain your solution explain how you solve it better or differently {Dropbox vs. OneDrive} make the solution rational to purchase show the benefits of your solution show them what happens if they don’t use your solution
  31. 31. for start ups; if your solution or USP is very unique explain how you come with the idea {story} tell how hard it takes to create this solution consider ‘confirmation bias’ {people will say something against it with wrong information}
  32. 32. Nudge
  33. 33. nudge is a minimalist intervention by revising a design / text with minimum budget we only change the environment in a way that desired behaviour feels more natural than before
  34. 34. three great nudge examples;
  35. 35. the left photo, you may have picked up the ‘free beer’ the right photo, whether you are okay or not you need a drink
  36. 36. just look at the 60 mph or 100 km/h
  37. 37. nudge reduces the cost of your social media advertisement nudge ads will deliver the message very clearly! also motivate the consumers for the call-to- action! Facebook + Instagram prefer to show ads like these and they rank it by “Relevance Score”
  38. 38. what is the Relevance Score? Relevance score is calculated based on the positive and negative feedback we expect an ad to receive from its target audience the more positive interactions we expect an ad to receive, the higher the ad’s relevance score will be. (Positive indicators vary depending on the ad’s objective, but may include video views, conversions, etc.) the more times we expect people to hide or report an ad, the lower its score will be ads receive a relevance score between 1 and 10, with 10 being the highest. The score is updated as people interact and provide feedback on the ad ads with guaranteed delivery — like those bought through reach and frequency — are not impacted by relevance score
  39. 39. the impact of Facebook Relevance Score on the cost of ads
  40. 40. Framing
  41. 41. framing is how we make a decision based on the how the information / data is presented to us unfortunately we are not really good at analysing lots of data in a short time frame! a decision making is a harmony of both conscious and subconscious choices and nowadays, most of the products are very identical, we have frame them to change the perception! why framing works? our brains love shortcuts and framing makes things easy for us
  42. 42. here are the framing examples from the beginning!
  43. 43. Loewe just took the photo of the product with a plain white background does it look good? Prada framed the product with the essence of life
  44. 44. examples of my work…
  45. 45. which one was better? the curated or the created one?
  46. 46. a framing example! my client is the only company in UK that imports Ford F150 Raptors and converts them to right-hand drive £39 budget 25,000 reach 683 comments
 192 shares
 £0.01 Cost per Engagement
 £1.01 Cost per 1000 Impressions 10/10 Relevance Score
  47. 47. the caption capture the attention of the audience solved two problems Ford F150 Raptor in UK right-hand drive application a simple nudge changed everything
  48. 48. a framing and social norm example! Jeremy Clarkson said, you can’t buy a Raptor in UK and I created this campaign with a link to the website! £25 budget 3212 clicks
 205 comments
 46 shares
 £0.03 Cost per Click
 4.37% Click Through Rate 10/10 Relevance Score
  49. 49. the caption capture the attention of the audience solved two problems Ford F150 Raptor in UK right-hand drive application a simple nudge changed everything
  50. 50. a nudge example! a graduate recruitment firm campaign launched after the graduations! £25 budget 280 clicks 2.25% Click Through Rate £0.09 Cost per Click 2.25% Click Through Rate 10/10 Relevance Score
  51. 51. Priming Effect
  52. 52. studies show that we subconsciously influenced by the small details these details can influence our decision making process such as; bad smell, dirty shop floor low quality Instagram photos badly management social media accounts a website doesn’t work properly or extremely hard to navigate never cut corners in digital environment small details make big differences {butterfly effect} of course nothing is perfect! do your best, even Apple had the Apple Maps and iPhone 4 antenna gate!
  53. 53. Anchoring Effect
  54. 54. web subscription – £59 print subscription – £125 web and print subscription – £125 the economist magazine’s subscription rates mental accounting thinks web and print should be £184 and we will save £25 with the third option :)
  55. 55. guess which one sold the most? the third option the first option is reasonable the second option is a bit expensive {reference point} the third one is the price of print-only with the web access actually, the second option was not in the plan
  56. 56. 58
  57. 57. what is the average speed of traffic in London?
  58. 58. it is 8-mph as you see 58 as the anchoring point your brain considered this number as an anchor and you guess the average traffic speed around this value
  59. 59. cars companies, restaurants, beauty brands, coffee brands they all do anchoring effects let’s see some anchoring effects from Evernote
  60. 60. Social Norms
  61. 61. https://youtu.be/A25EUhZGBws?t=3m30s
  62. 62. we don’t like to consider that other people affect our decision making process the truth is, yes we are affected by other people we inherit this behavioural for the survival instinct millions years ago “we always ask people which direction the tube is travelling” however, the digital display shows it very clearly
  63. 63. 31,799 stylish people can’t be wrong! buy from net- a-porter
  64. 64. Scarcity Effect
  65. 65. we value things higher when they scare or in limited number or available for a limited time when the things are limited people act quicker
  66. 66. Final Touches
  67. 67. we make 80% of our decision through our emotional side of our brain this was proofed by Kahneman’s MRI scan results be emotional ❤
  68. 68. some examples of nudging from the London Tube billboards
  69. 69. how powerful is the i7? do you have any clues?
  70. 70. a proper nudge example
  71. 71. Content & Ads
  72. 72. be minimalist always analyse your competitors use nudge approach give the message clear and easy to understand always curate content {it is not perfectly matching with the brand but do your best} inspired by art / science / design / architecture / history / future / location / trends people will get bored of your nudges #curate content creation
  73. 73. ads are important! Facebook provides a great tool! Audience Insights! helps you to understand your audience
  74. 74. if you know where your audience is use postcode based targeting on Facebook
  75. 75. be careful with colouring! always use contrasts to make it easier to read ads are part of the social media experience always create ads that never look like an ad! #creativity light grey
  76. 76. Results
  77. 77. Automotive CPC decrease 2.5x Impressions increase 5.4x Clicks increase 9.8x Visitor stay on website increase 3.1x Target {Increase call-to-action} Call-to-action increase by 4.2x HR CPC decrease 1.7x Impressions increase 4.2x Clicks increase 16x Visitor stay on website increase 3.5x Target {Increase CV uploads} CV upload increase 3.7x Tech CPC decrease 6.7x Impressions increase 12.7x Clicks increase 7.2x Target {Increase website visits} Visitor stay on website increase 4.3x Growth The growth of revenue, CV upload, website clicks and other business goals. 3.5x average increase CPC Cost-per-click The industry average is £1.33 My best £0.09 {Recruitment client} My average £0.40 Relevance Score My best 10 / 10 My average 7.5 / 10 Reach The number of people see the ads or the content Average increase of 14% Followers Average increase of 11%
  78. 78. Thank You https://CronusConsultancy.com // E-mail: uygar@cronuscn.com // Copyright © 2018 All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means without the owner’s permission.
  79. 79. References
  80. 80. Aaker A. J. (1997), Dimensions of the brand personality, Journal of Marketing Research, 347-356. Barden, Phil (2013) Decoded: The Science Behind Why We Buy, John Wiley & Sons, London Kapferer J. N. (1986) Beyond positioning, retailer's identity. Esomar Seminar Proceeding, 167–76. Kapferer J. N. (1995) Strategic brand management. Kogan Page, London Kotler P., Keller, K. L. (2012) Marketing Management, Pearson Education, New Jersey, USA Wheeler, A (2012) Designing Brand Identity: An Essential Guide for the Whole Branding Team, John Wiley & Sons, Inc., Hoboken, New Jersey, USA Wilkonson, N., Matthias K. (2012) An Introduction to Behavioural Economics 2nd ed., Palgrave Macmillan, London, UK

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