15 Behavioural Economics Principles to increase Conversions


Published on

This presentation demonstrates the value of understanding and using a variety of behavioural economics principles to achieve results in your digital marketing campaign.

15 Behavioural Economics Principles to increase Conversions

  1. 1. 15 Behavioural Economics Principles toincrease ConversionsA4U Expo 2012http://twitter.com/kelvinnewmankelvin.newman@SiteVisibility.co.uk
  2. 2. Strategy Director SiteVisibility A digital agency specialising inretail, travel and financial services
  3. 3. Organiser BrightonSEOThe Free SEO Conference
  4. 4. Co-Founder Clockwork TalentDecent Digital Recruitment
  5. 5. Text Social Proof roblawton
  6. 6. tendency of peopleassume the actions ofothers reflect correctbehaviour for a givensituation
  7. 7. Text Loss Aversion Images_of_Money
  8. 8. the disutility of giving upan object is greater thanthe utility associated withacquiring it
  9. 9. Anchoring Text Alex Bellink
  10. 10. the tendency to rely tooheavily, or "anchor," on apast reference or on onetrait or piece ofinformation when makingdecisions
  11. 11. Text Choice Supportive Bias shawncampbell
  12. 12. the tendency to rememberones choices as betterthan they actually were.
  13. 13. Decoy EffectText ymorimo
  14. 14. preferences change whenthere is a third option thatis asymmetricallydominated
  15. 15. Text Distinction Bias cliff1066â„¢
  16. 16. the tendency to view twooptions as more dissimilarwhen evaluating themsimultaneously than whenevaluating themseparately
  17. 17. Experimenters Bias Text [F]oxymoron
  18. 18. the tendency to believedata that agrees with theirexpectations and todisbelieve, discard, ordowngrade data thatappear to conflict withthose expectations
  19. 19. FunctionalFixedness Text jamingray
  20. 20. limits a person to using anobject only in the way it istraditionally used
  21. 21. Hyperbolic DiscountingText Identity Photogr@phy
  22. 22. the tendency for people tohave a strongerpreference for moreimmediate payoffsrelative to later payoffs,where the tendencyincreases the closer to thepresent both payoffs are
  23. 23. KnowledgeBias Text Vox Efx
  24. 24. the tendency of people tochoose the option theyknow best rather than thebest option
  25. 25. Post PurchaseRationalisation Text preetamrai
  26. 26. the tendency to persuadeoneself through rationalargument that a purchasewas a good value
  27. 27. PsuedocertainityEffect Text matsuyuki
  28. 28. the tendency to make risk-averse choices if theexpected outcome ispositive, but make risk-seeking choices to avoidnegative outcomes
  29. 29. Zero RiskBias JD Hancock
  30. 30. preference for reducing asmall risk to zero over agreater reduction in alarger risk
  31. 31. Dunning-Kruger TextEffect
  32. 32. tendency of unskilledindividuals suffer fromillusory superioritymistakenly rating theirability much higher thanaverage.
  33. 33. FalseConsensus Text JD Hancock
  34. 34. the tendency tooverestimate how muchother people agree withhim or her
  35. 35. The slides will be onslideshare.net/kelvinnewmanYou can also follow me onTwittertwitter.com/kelvinnewman
  36. 36. fin.