First of all, thankyou Basforthisopportunity. It’s myfirst talk forfundraisers and I wouldlove to do it more often.Topic of today is somethingnew in online marketing. It’s persuasionprofiling, somethingwhat we thinkwillchange the way online marketing is done. Yoube the judge and give me feedback afterthis talk.
Little talk about myself: Arjan Haring my role within the company is setting up consultancy/client services and marketing/pr. At the moment I like to call myself a spindoctor, because of my large network and the free pr and uncommon leads I generate. But colleagues have recent called me the hustler.Last year april I startedthiscompanywith a goodfriendwhodid part of hisPhD at Stanford (that’salsowhen we werefeaturedby WIRED). Hisscientificwork is the basis forourtechnology. Itfittedperfectly in a vision of marketing I alreadydevelopedmyselfthat’s a mix of datamining, psychology and design.Weird, but I can’tseem to remember the name of mycofounder right now…
We want to be a safe haven forscientiststhatpioneerworkthat impacts the way we do business. And also to business peoplethatsee the hugepotential of science to change the rules of the game.
I want to share a short storywithyou. When I was 12 I played in the nationalcompetition league of table tennis in Holland. I wasn’t the best player, but I won a lot of games. My biggestweapon was my service. It was verydifficult to return, mostlybecause I wouldgivesome special kind of spin to it, without my opponent seeing it.Can I invite someonefrom the audience to return my service? It’s been a while, but I think I never lot the magic touch. See, unstoppable.In june of thisyear we had a bbq in ournewlyopened office. There was a table tennis tablethereso I thoughtitwouldbenice to hustlesome of the otherpeoplethatworked at the office. But at the moment I wanted to serve, my opponent said: New Rule is thatI have to beable to see the ball the whole time whenyou serve.My service went fromunstoppable to worthless in a matter of seconds. I went from winning a lot of games, to a mediocre player, trying to hang on.
Assaid I don’t want you to feel as bad as I didwhenI’dheardsomeonechanged the rules. Here are the newrules
I will be talking about persuasion. Means vs. Ends Distinction.
An example of persuasion. 27% more likely. 33% more likely
Instead of tailoring WHAT you offer to each consumer, the PersuasionAPI allows you to dynamically alter HOW you communicate in real time. It's a new dimension of personalization. It can figure out the best way to persuade individual customers.
First, notice the low cost of liking. Unlike a brand, the person isn’t committing to liking much other than something consistent with their personality. This is a great way of building a community on facebook. Don’t ask users to like Keebler, ask them to like fudge stripe cookies, or just cookies. Still, have a page for your brand, but similar to a mobile app, don’t be afraid to have multiple pages for more focused engagement. In the case of Being Conservative, persons are liking the fact that they are conservative and consequently are being marketed to quite successfully.The motivation for showing their support for conservative views already exists. This page offers a trigger to like being conservative with a very low cost. That is, it’s very easy to do. Once the user likes the page, the organization continues to produces content that is consistent with their users’ motivations and with a low cost. They consistently ask the users to like that content thus putting a trigger in the user’s path. Combined with some of the influence patterns found below, they have developed a strong persuasive architecture.
Notice (1) that the organization is putting out a message that they know their fans will like. Other times they encourage their fans to like it and they generate tens of thousands of likes and thousands of comments. However, those don’t directly translate into a ROI. But using the principle of commitment and consistency they ask the fans, one day later, to purchase a shirt that has that very message on it.(2) “TODAY ONLY” for the t-shirt sales? Why would the organization limit t-shirt sales to one day? According to the scarcity principle it’s to trigger an action. Namely, the purchase of the shirt. And in conjunction with the commitment and consistency principle it allows the organization to leverage this principle while the fan’s previous consistent act, liking the post with the same quote, is still fresh in their minds. While the Internet seemingly makes anything you want available at any time of the day, the scarcity principle is often employed by online marketers to trigger an action. It’s a powerful and consistently fruitful persuasion pattern.Also, notice (3) that they are using an image that many conservatives hold in high regard. Here, the organization is implementing a strategy that instantiates the liking principle and the authority principle. Research shows that persons are more likely to perform a call to action when it’s requested by or associated with someone who is attractive, similar to them, and/or familiar. By leveraging authority figures, social media friends, and other conservatives (page fans), Being Conservative is able to implement this persuasion pattern in a big way.
Our picks`Interesting to see the meansvsends. Thehow versus the what.
Does everyone respond in the same fashion?
Does everyone respond in the same fashion?
So for each user its an estimate of what works. Which then can subsequently be used to select content.
We can monitor the success of each page served to a user.We will keep updates of the average performance of your served page variations, and of the performance for each client.
Based on the response of each visitor we will update our advice for that userThe new advice is a combination of the response of that visitor, as well as that of other clients
And so on, for each individual customer...Real time analytics is most effective in predicting behavior
Apersuasionprofile is alwayslearning in the background.
In probability theory, the multi-armed bandit problem is the problem a gambler faces at a row of slot machines when deciding which machines to play, how many times to play each machine and in which order to play them. When played, each machine provides a random reward from a distribution specific to that machine. The objective of the gambler is to maximize the sum of rewards earned through a sequence of lever pulls
Does everyone respond in the same fashion?
Does everyone respond in the same fashion?
Changing the game of fundraising.ppt
Persuasion Profiling Changing the Game of Fundraising 1PersuasionAPI is a product created by Science Rockstars™
Me Co Founder ScienceRockstars creators of PersuasionAPI Initiator of Design for Conversion I am pretty sure his name started with a D. 2PersuasionAPI is a product created by Science Rockstars™ 2
Science Rockstars Science Rockstars was founded on the belief that good science leads to great business. 3PersuasionAPI is a product created by Science Rockstars™ 3
Changing the Rules???PersuasionAPI is a product created by Science Rockstars™ 44
New Rules of Online Marketing Less is More (Persuasion) Persuade individuals rather than a group Learning beats testingPersuasionAPI is a product created by Science Rockstars™ 55
Persuasion The goal of persuasion is to change someone’s attitudes or behavior.PersuasionAPI is a product created by Science Rockstars™ 66
Does Persuasion work? • Slide with the “Please reuse the towell “Please reuse the example towels. Most towels. Most people reused people who their towel during stayed in this their stay” room reused their towel during their stay”PersuasionAPI is a product created by Science Rockstars™ 77
It’s how you ask… It’s only partly what you want people to do, it’s how you ask it! 8Beta Launch presentations Q2 2012 8
Meet Bob: 6 Weapons of Influence • Authority • Commitment & Consistency • Liking • Reciprocity • Scarcity • Social Proof Bob Cialdini 9PersuasionAPI is a product created by Science Rockstars™ 9
Respect my Authoritah! 10PersuasionAPI is a product created by Science Rockstars™ 10
Commiting to a wish list, motivates commiting to a buy 11PersuasionAPI is a product created by Science Rockstars™ 11
Being sweet persuades 12PersuasionAPI is a product created by Science Rockstars™ 12
Giving stuff away for free persuades 13PersuasionAPI is a product created by Science Rockstars™ 13
Scarcity Persuades 14PersuasionAPI is a product created by Science Rockstars™ 14
Reviews are a form of Social Proof 15PersuasionAPI is a product created by Science Rockstars™ 15
Meet Bob: 6 Weapons of Influence • Authority • Commitment & Consistency • Liking • Reciprocity • Scarcity • Social Proof Bob Cialdini 16PersuasionAPI is a product created by Science Rockstars™ 16
If Amazon does it… 17PersuasionAPI is a product created by Science Rockstars™ 17
The Art of Persuasion 18PersuasionAPI is a product created by Science Rockstars™ 18
Side step: Advanced Persuasion via Facebook - low cost of liking - existing motivation - hot triggers Source: Robert Neal.com 19PersuasionAPI is a product created by Science Rockstars™ 19
Putting Persuasive Triggers in the Path of visitors 1.Commitment 2.Scarcity 3.Authority 20PersuasionAPI is a product created by Science Rockstars™ 20
What you already should be doing Social proof Scarcity Social proof Liking Consistency & Commitment Social proof Consistency & Social proof Commitment Framing Scarcity Social proof Scarcity Social proof 21 21PersuasionAPI is a product created by Science Rockstars™
Less persuasion is more persuasion 1. “100s of others have taken this study before.” 2. “Professor Ford recommends taking this study.” 3. “There are only 18 hours left to participate in this study.” VS 1. “100s participated, & Professor Ford recommends it. Only 18 hours left.” 2. “Prof. Ford recommends it, 100s participated, only 18 hours left.” 3. “Only 18 hours left, & Professor Ford recommends it. 100s took it.”PersuasionAPI is a product created by Science Rockstars™ 22
People are different (duh!)PersuasionAPI is a product created by Science Rockstars™ 23
Not everyone obeys the laws of social proof Slide with the towell example 24PersuasionAPI is a product created by Science Rockstars™ 24
There are people that question authority Slide with the towell example 25PersuasionAPI is a product created by Science Rockstars™ 25
People are consistently different 26PersuasionAPI is a product created by Science Rockstars™ 26
Persuade individuals rather than a group 27PersuasionAPI is a product created by Science Rockstars™ 27
Persuasion Profile: Normal Page: A1 (Scarcity): A2 (Authority): A3 (Consensus): Effect A persuasion profile is a collection of the estimates of the effect of persuasion principles for each individual customer 28 28Beta Launch presentations Q2 2012
We log the success Normal Page: A1 (Scarcity): A2 (Authority): A3 (Consensus): Effect • We can monitor the success of each page served to a user. • We will keep updates of the average performance of your served page variations, and of the performance for each client. 29Beta Launch presentations Q2 2012 29
We improve our advice Normal Page: A1 (Scarcity): A2 (Authority): A3 (Consensus): Effect • Based on the response of each visitor we will update our advice for that user • The new advice is a combination of the response of that visitor, as well as that of other clients 30Beta Launch presentations Q2 2012 30
User navigates, we improve First page served: Second page served: Third page served: Normal: Normal: Normal: A1: A1: A1: A2: A2: A2: A3: A3: A3: Effect Effect Effect • And so on, for each individual customer... • Real time analytics is most effective in predicting behavior 31Beta Launch presentations Q2 2012 31
Increasing chance of conversion for each customer individualy Third page served: Normal: A1: A2: A3: Effect 32Beta Launch presentations Q2 2012 32
Paving the way for Multi-channel Persuasion Third contact: Normal: A1: A2: A3: Effect 34Beta Launch presentations Q2 2012 34
Learning beats testing (any day) Exploit vs. Explore What if it’s the first visit? How much learning do you need? 35Beta Launch presentations Q2 2012 35
Make out like a Bandit 36Beta Launch presentations Q2 2012 36
It will beat your A/B test… Optimize conversion over time. 37Beta Launch presentations Q2 2012 37
And we will get better… Optimize the choice of persuasion principles at the level of individual clients 38Beta Launch presentations Q2 2012 38
Paradigm Shift in Online Marketing VS Content Test Decide Content & Continuous Optimization 39Beta Launch presentations Q2 2012 39
It really works… 40PersuasionAPI is a product created by Science Rockstars™ 40
It works on different levels 41PersuasionAPI is a product created by Science Rockstars™ 41
A Persuasion Profiling Case… How can you be as successful as the others? 42Beta Launch presentations Q2 2012 42
Casestudy Philips Directlife: • Slide with the towell exampleBeta Launch presentations Q2 2012 43
Philips Reminder Email • Slide with the towell Dear ($ firstname $), example We hope all is well. It is $#$ days since the last time you How are you doing? connected your Activity Monitor. [ $ Message $ ] We would like to remind you to connect it to your PC soon and stay in touch with Philips DirectLife Sincerely, The DirectLife TeamBeta Launch presentations Q2 2012 44
Scarcity Email • Slide with the towell to connect it to your PC soon and 1. We would like to remind you example with . . . . Today is a great day to start so make sure stay in touch you do not miss out on your participation in . . . ! 2. Any chance to connect your Activity Monitor is a chance to learn about your own activities. Take the opportunity to learn about your activities right now.PersuasionAPI is a product created by Science Rockstars™ 45
Authority Email • Slide withcoaches recommend frequent uploads of your activity 1. Experienced the towell examplewill help you to gain more insight and be more active! data. This 2. Activity experts recommend moderate to high activity on a daily basis and connecting to the . . . platform will help you to reach this target!PersuasionAPI is a product created by Science Rockstars™ 46
Social Proof Email • Slide with the towelltheir Activity Monitor frequently 1. People like you who connect example are more likely to benefit from the program and with their PC obtain a healthy lifestyle! 2. 6. Thousands of people are participating actively in the program and they stay connected at least once a week. Join the group!PersuasionAPI is a product created by Science Rockstars™ 47
Summarizing the results: • Slide with the towell example Increase in email click-through: (at the 5th reminder) >100% Increase in e-commerce revenue: >25%PersuasionAPI is a product created by Science Rockstars™ 48
Persuasion Profiling Are you ready to Beta? 49PersuasionAPI is a product created by Science Rockstars™ 49
Persuasion Profiling Now the game has changed, what’s going to be your play? @arjanharing @persuasionapi 50PersuasionAPI is a product created by Science Rockstars™ 50