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Happiness as Your Business Model

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Happiness as Your Business Model

  1. Happiness as Your incorporating the human drive for fulfillment into your core business Business Model
  2. there was this dude
  3. wrote this book
  4. It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest... The Wealth of Nations, Book I Chapter II
  5. yikes. well, thank goodness there was an
  6. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. The Wealth of Nations, Book 4 Chapter II
  7. but what is even more awesome is that this invisible hand ain’t so invisible anymore
  8. it’s a big freakin’ obvious hand and it comes in the form of...
  9. and we are using these tools to produce all sorts of content online like
  10. as we raise our voices, we are doing the stuff that is making us really freakin’
  11. we are raising our voices to our
  12. we are sharing knowledge and becoming really stinking
  13. and we get to do ALL of this while hangin
  14. this rocks. it is an ideal economic situation.
  15. okay. lemme take that back.
  16. it’s an ideal economic situation for the people who are part of
  17. i heart economics
  18. it is still trying to figure stuff out
  19. if only there weren’t those darned people in the equations, everything would go smoothly
  20. see, most traditional economics see the world as filled with
  21. Homo Economicus
  22. characteristics of homo-economicus • efficient • predictable • motivated by the best deals • influenced heavily by marketing • will always work in his/her own best interest • mostly rational in buying decisions
  23. (forgive me while I pause to roll my eyes.)
  24. you and I both know that the people in the marketplace look a great deal more like
  25. Homo Feelgoodonicus
  26. characteristics of homo-feelgoodomicus • inefficient • unpredictable • motivated by what makes him/her happy • ignores marketing messages where possible and rails against marketing messages that annoy • will sometimes cut of his/her nose to spite his/her face • buys crap that makes no sense whatsoever, like those big foam fingers for $10 at sports games
  27. you just can’t build prediction models for this stuff
  28. besides
  29. a multi-billion dollar industry
  30. [insert staggering stats here]
  31. the key is in helping homo-feelgoodomicus feel good
  32. and this is where I segue into
  33. lets talk a little about the history of positive psychology...
  34. psychology had a long history of being focused on the negative stuff, like
  35. but in 1998, Martin Seligman, proposed a focus on the study of POSITIVE PSYCHOLOGY.
  36. positive psychology is the branch of psychology that “studies the strengths and virtues that enable individuals and communities to thrive.”
  37. pretty complicated stuff
  38. ...but WHY happiness? why does this matter?
  39. 7 reasons that happiness is key to success 1. happy customers talk to more people about their positive experience 2. unhappy customers talk to the MOST people about their negative experience 3. happy customers are repeat customers 4. happy customers will pay more for an awesome experience 5. happy customers are loyal 6. happy customers will drive your marketing for you 7. happy employees are more productive, creative and loyal
  40. so, what is happiness anyway?
  41. exercise: what makes you happy?
  42. for as many people there are on the planet, there is a different answer for what makes us happy.
  43. but the American Psychological Association dug deep down into our hearts desires and found that there ARE some universals. and they are...
  44. autonomy
  45. autonomy includes: •feeling in control of one’s surroundings •understanding one’s own resilience •feeling of agency •empowerment
  46. competence
  47. competence includes: •confidence in one’s abilities/knowing one’s strength’s •feedback from others on one’s performance •learning and growing skills •self-actualization •doing meaningful work •getting into flow
  48. relatedness
  49. relatedness includes: •interacting with others •connecting with people and connecting people •giving to others/being generous •feeling loved •emotional security •acknowledgement and support (mentorship)
  50. self-esteem
  51. self-esteem includes: •your ‘set-point’ or natural (genetic) confidence level •something you can work on through cognitive behavioral therapy, meditation or medications •not influenced from the outside world, but apparent when triggered by events from the outside world
  52. the pillars of happiness • autonomy • competence • relatedness • self-esteem or set point from the Journal of Personality and Social Psychology, published by the American Psychological Association (APA) 2007.
  53. what is really important about knowing these pillars is to understand what works AGAINST happiness as much as what creates it.
  54. fear
  55. contributors to fear •ignorance •misinformation •insecurity •inexperience •fear-mongering •mistrust
  56. pew internet research noted that the majority of people ages 50+ who are not online are not online because of the scary stories they hear.
  57. confusion
  58. what leads to confusion •paradox of choice •noise ratio •lack of clear information •secretiveness •half-truths
  59. loneliness
  60. what causes loneliness •isolation •distrust of others •fear of rejection •lack of acceptance •insecurity
  61. lack of control
  62. what leads to lack of control •loss of control over the circumstances of one’s life •loss of agency •withheld information •secrecy •uncontrollable circumstances
  63. struggle for survival
  64. remember maslow’s hierarchy of needs
  65. you can’t get here without all of these being taken care of
  66. barriers to happiness • fear • confusion • loneliness • lack of control • struggle for survival
  67. the axis of misery
  68. industries that seem to be
  69. hell bent on delivering miserable experiences
  70. car rental companies
  71. airlines
  72. telcos
  73. very consistent in helping their customers feel like
  74. in order to be an agent of happiness, you need to either create the environment for it or you have to intervene in the barriers...
  75. which means where there is the axis of misery, there is the opportunity to make $$ making people happy
  76. (the bar is set amazingly low)
  77. car rental companies
  78. zipcar
  79. airlines
  80. southwest
  81. telcos
  82. skype
  83. these companies have flourished in the void where the axis of misery entirely misses the point.
  84. exercise: name an experience that made you miserable. Could you build a business that does the opposite? Discuss.
  85.’s one thing to remove the barriers to happiness, it’s a whole other thing to
  86. figure out the basic principles of
  87. and be aware of them when we are designing our websites, products or services, then we can
  88. be agents of...
  89. so for instance let’s take
  90. autonomy
  91. we need to take the stuff that leads to people feeling autonomous and build it into what we are doing...
  92. 5 ways to create feelings of autonomy 1. give people tools to personalize their experiences 2. build tools that democratize previously inaccessible industries 3. offer clear and attractive choices 4. be open and transparent 5. don’t lock people in
  93. competence
  94. 5 ways to increase feelings of competence 1. create flow...simple entry point to more complex systems 2. allow ways for mentors to interact with newbies (create rewards) 3. build consecutive levels of achievement into the experience 4. plant ‘easter eggs’ 5. don’t talk down to your customer
  95. “flow” - mihaly csikszentmihalyi (cheek-sent-me-high)
  96. The flow state is an optimal state of intrinsic motivation, where the person is fully immersed in what he or she is doing. This is a feeling everyone has at times, characterized by a feeling of great freedom, enjoyment, fulfillment, and skill—and during which temporal concerns (time, food, ego- self, etc.) are typically ignored.
  97. achieving flow • skills acquired along the way • clear goals • feedback provided along the way • user control • facilitate concentration and involvement by making the activity as distinct as possible from so-called reality
  98. relatedness
  99. 5 ways to increase relatedness 1. build in multiple ways for customers to interact 2. have many collaborative experiences 3. create simple ways for customers to share with a friend 4. design for generosity 5. create online/offline meeting experiences
  100. case studies
  102. makes customers happy by • WOW customer service (autonomy) • comments/shared feedback on shoes (competence) • twitter, blogging interactions (relatedness) • 10 core values (all of the above)
  103. 10 core values
  104. deliver WOW thru service
  105. embrace and drive change
  106. create fun and a little weirdness
  107. be adventurous, creative and open minded
  108. pursue growth and learning
  109. build open and honest relationships with communication
  110. build positive team and family spirit
  111. do more with less
  112. be passionate and determined
  113. be humble
  114. the core values of lead to an incredibly rich set of relationships - with customers, vendors and even competitors
  115. customers employees win + win + win = win vendors zappos
  116. moleskine
  117. makes customers happy by • giving choice in style of notebook - but not too much choice (autonomy) • connecting the experience with turn of the century intellectuals (competence) • moleskinerie (relatedness) • social object (relatedness)
  118. twitter
  119. makes customers happy by • creating a tool for simple spurts of self expression (autonomy) • ability to learn more advanced functions (competence) • api allows people to build and be more creative with the core (competence) • simplicity of tweeting questions and getting instant answers (competence) • following others gives stream of consciousness (relatedness) • learning about others day to day mundane to deep thoughts and emotions (relatedness)
  120. ma.gnolia
  121. makes customers happy by • holding regular PIBB chats, VIP program (autonomy) • the ability to follow others and form groups around gathering knowledge (competence) • give thanks (relatedness)
  122. ma.gnolia’s
  123. wordpress
  124. makes customers happy by • plugin architecture and templating system allows for total personalization (autonomy) • open source and transparent (autonomy) • really simple hosted solutions all the way to self-installed (competence) • lots of easter eggs (competence) • sphere plugin, promotion of popular blogs, comment systems and trackbacks (relatedness)
  125. exercise: applying the principles of happiness to YOUR company
  126. I wonder what
  127. would say if he were alive today to see his
  128. turn into the much more active
  129. of online communities
  130. whatever his reaction, I bet he’d be delighted with how the free market has been moved by the
  131. of its players
  132. because ultimately, the
  133. IS about the
  134. autonomy
  135. competence
  136. relatedness
  137. of everyone involved
  138. the
  139. of your business relies on the
  140. of your customers
  141. licensing:
  142. about those rockin’ images: • Many are from (totally cool site) except for: • kissing couple: • robots with penny: • web 2.0 montage: • wiki chalkboard: • moleskine: • twittering: (http:// • zipcar: • southwest airlines: • skype cards: • misery license plate:
  143. some references • Craig Newmark Quote: 2004/08/15/NEWMARK.TMP • Avant Game: • Cruel 2 B Kind: • Microformats: • OpenID: • Creative Commons: • BarCamp: • Coworking: • Ma.gnolia: • API (Application Programming Interface): • Friend Wheel: • Great internet stats: • Whuffie: • Porn addiction recovery:
  144. Tara Hunt 415.694.1951 skype: tarahunt747