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Persuasion Profiling
       is changing the concept of marketing without you even knowing it!




                                                                      1
Beta Launch presentations Q2 2012
Me
                                    Chief Science Officer PersuasionAPI

                                              Researcher at:
                                    Eindhoven University of Technology
                                    Aalto School of Economics (Helsinki)
                                       Stanford University (Stanford)




                                                                           2
Beta Launch presentations Q2 2012
Q1: Persuasion?

       • The goal of persuasion is to change
         someone’s attitudes or behavior.




Beta Launch presentations Q2 2012                     3
                                                      3
Q2: Does that work?
     • Slide reuse the
    “Please   with “Please reuse                        “Please reuse
       towell example towel.
      your towel”      your                               your towel.
                                         Most people     Most people
                                         reused their   who stayed in
                                         towel during      this room
                                          their stay”    reused their
                                                        towel during
                                                          their stay”



Beta Launch presentations Q2 2012                                       4
                                                                        4
It’s how you ask…
             It’s only partly what you want people to do, it’s how you ask it!




                                                                                 5
Beta Launch presentations Q2 2012
6 Principles of Persuasion




                                                 6


Beta Launch presentations Q2 2012                6
                                                 6
Persuasion Online




Beta Launch presentations Q2 2012                       7
                                                        7
Q3: How do we use this?
                            Should we use all the persuasion we can think of?




                                                                                8
Beta Launch presentations Q2 2012
No!
      • Slide with the
      Clicks onexample
        towell multi-principle ads:       .18 %

       And on single principle ads:       .36%


Beta Launch presentations Q2 2012                 9
                                                  9
Q4: Are we all the same?
                            Should we use the same principles for everyone?




                                                                              10
Beta Launch presentations Q2 2012
2 Scenarios:

                                     Average




                                                                                  Average
                                                 Individuals                                  Individuals

         -                                                     +   -                                        +
                          Effect of using a strategy                   Effect of using a strategy




Beta Launch presentations Q2 2012                                                                               11
                                                                                                                11
We are different, but consistent…




                                    12
Beta Launch presentations Q2 2012
Persuasion Profiles
          Wouldn't you like to know how to adjust
      your (online) presence in a way that you increase
    the chance of conversion for each user individually?




                                                          13
                                                          13
Beta Launch presentations Q2 2012
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 user


                                                             14
                                                              14
Beta Launch presentations Q2 2012
It’s a new dimension:




                                                        15
Beta Launch presentations Q2 2012
Q5: How is it done?
 How can you use persuasion profiles on your website, in your emails, or
                          in other channels?




                                                                   16
Beta Launch presentations Q2 2012
Step 1: Review your Sales Strategy
                            Implementations



                                           Marketeer




                                                        17
Beta Launch presentations Q2 2012                       17
Step 2: You integrate with the PersuasionAPI
                            Cloud Services


           Your web server                                               PersuasionAPI server

                                    1) Point to PersuasionAPI Service


                                    2) Dynamic adjustments on Page
                                    based on PersuasionAPI adviceid


                                    3) Hooks for user behavior
                                    monitoring (log event, view event,
                                    success event)




                                                                                                18
Beta Launch presentations Q2 2012                                                               18
Example of adjusted page


                                           •1: Log Client ID (e.g. via
                                           dynamic image, cookie, etc)


                                           •2. Link(s) to log success of
                                           the Sales Strategy


                                           •3. Hooks to log non-
                                           responsiveness to a Sales
                                           Strategy




                                                                           19
Beta Launch presentations Q2 2012                                           19
Step 3: We log the success

            Normal Page:

            A1 (Scarcity):

            A2 (Authority):

           A3 (Consensus):
                                                 Effect



        • Based on the dynamic image and the link 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.



                                                                           20
Beta Launch presentations Q2 2012                                           20
Step 4: We improve our advice

            Normal Page:

            A1 (Scarcity):

            A2 (Authority):

           A3 (Consensus):
                                                             Effect


       • Based on the response of each client we will update our advice for that user
       • The new advice is a combination of the response of that client, as well as that of
         other clients




                                                                                              21
Beta Launch presentations Q2 2012                                                              21
Step 5: 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 client...

        • Real time analytics is most effective in predicting
          behavior




                                                                                                           22
Beta Launch presentations Q2 2012                                                                           22
Explore vs. Exploit
                                         What if it’s the first visit?
                                     How much learning do you need?




                                                                         23
Beta Launch presentations Q2 2012
Competing Principles




                                                     24
Beta Launch presentations Q2 2012                    24
It will beat your A/B test…
                                    Optimize conversion over time.




                                                                     25
Beta Launch presentations Q2 2012
And we will get better…
    Optimize the choice of persuasion principles at the level of individual
                                   clients




                                                                       26
Beta Launch presentations Q2 2012
Some Results…
                       How do you know persuasion profiles are successful?




                                                                             27
Beta Launch presentations Q2 2012
You test it!




                   • 20% of your clients will receive your original page
                   • 80% will receive pages with persuasive content that is
                     dynamically updated


                                                                              28
Beta Launch presentations Q2 2012                                              28
Results
      • Slide with the
      Increase example
        towell in email click through:
       (at the 5th reminder)
                                              >100%

       Increase in e-commerce revenue:        >25%


Beta Launch presentations Q2 2012                     29
                                                      29
Persuasion Profiling
                                      Are you ready to Beta?

                  Launch April 1st in Netherlands, from May
                      onwards rest of Europe & Russia.
                    Q3/4 2012 launch USA with version 1.
                                                               30
                                                               30
Beta Launch presentations Q2 2012
Wow!


       @persuasionAPI


                   31

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5 Questions about Persuasion Profiling

  • 1. Persuasion Profiling is changing the concept of marketing without you even knowing it! 1 Beta Launch presentations Q2 2012
  • 2. Me Chief Science Officer PersuasionAPI Researcher at: Eindhoven University of Technology Aalto School of Economics (Helsinki) Stanford University (Stanford) 2 Beta Launch presentations Q2 2012
  • 3. Q1: Persuasion? • The goal of persuasion is to change someone’s attitudes or behavior. Beta Launch presentations Q2 2012 3 3
  • 4. Q2: Does that work? • Slide reuse the “Please with “Please reuse “Please reuse towell example towel. your towel” your your towel. Most people Most people reused their who stayed in towel during this room their stay” reused their towel during their stay” Beta Launch presentations Q2 2012 4 4
  • 5. It’s how you ask… It’s only partly what you want people to do, it’s how you ask it! 5 Beta Launch presentations Q2 2012
  • 6. 6 Principles of Persuasion 6 Beta Launch presentations Q2 2012 6 6
  • 7. Persuasion Online Beta Launch presentations Q2 2012 7 7
  • 8. Q3: How do we use this? Should we use all the persuasion we can think of? 8 Beta Launch presentations Q2 2012
  • 9. No! • Slide with the Clicks onexample towell multi-principle ads: .18 % And on single principle ads: .36% Beta Launch presentations Q2 2012 9 9
  • 10. Q4: Are we all the same? Should we use the same principles for everyone? 10 Beta Launch presentations Q2 2012
  • 11. 2 Scenarios: Average Average Individuals Individuals - + - + Effect of using a strategy Effect of using a strategy Beta Launch presentations Q2 2012 11 11
  • 12. We are different, but consistent… 12 Beta Launch presentations Q2 2012
  • 13. Persuasion Profiles Wouldn't you like to know how to adjust your (online) presence in a way that you increase the chance of conversion for each user individually? 13 13 Beta Launch presentations Q2 2012
  • 14. 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 user 14 14 Beta Launch presentations Q2 2012
  • 15. It’s a new dimension: 15 Beta Launch presentations Q2 2012
  • 16. Q5: How is it done? How can you use persuasion profiles on your website, in your emails, or in other channels? 16 Beta Launch presentations Q2 2012
  • 17. Step 1: Review your Sales Strategy Implementations Marketeer 17 Beta Launch presentations Q2 2012 17
  • 18. Step 2: You integrate with the PersuasionAPI Cloud Services Your web server PersuasionAPI server 1) Point to PersuasionAPI Service 2) Dynamic adjustments on Page based on PersuasionAPI adviceid 3) Hooks for user behavior monitoring (log event, view event, success event) 18 Beta Launch presentations Q2 2012 18
  • 19. Example of adjusted page •1: Log Client ID (e.g. via dynamic image, cookie, etc) •2. Link(s) to log success of the Sales Strategy •3. Hooks to log non- responsiveness to a Sales Strategy 19 Beta Launch presentations Q2 2012 19
  • 20. Step 3: We log the success Normal Page: A1 (Scarcity): A2 (Authority): A3 (Consensus): Effect • Based on the dynamic image and the link 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. 20 Beta Launch presentations Q2 2012 20
  • 21. Step 4: We improve our advice Normal Page: A1 (Scarcity): A2 (Authority): A3 (Consensus): Effect • Based on the response of each client we will update our advice for that user • The new advice is a combination of the response of that client, as well as that of other clients 21 Beta Launch presentations Q2 2012 21
  • 22. Step 5: 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 client... • Real time analytics is most effective in predicting behavior 22 Beta Launch presentations Q2 2012 22
  • 23. Explore vs. Exploit What if it’s the first visit? How much learning do you need? 23 Beta Launch presentations Q2 2012
  • 24. Competing Principles 24 Beta Launch presentations Q2 2012 24
  • 25. It will beat your A/B test… Optimize conversion over time. 25 Beta Launch presentations Q2 2012
  • 26. And we will get better… Optimize the choice of persuasion principles at the level of individual clients 26 Beta Launch presentations Q2 2012
  • 27. Some Results… How do you know persuasion profiles are successful? 27 Beta Launch presentations Q2 2012
  • 28. You test it! • 20% of your clients will receive your original page • 80% will receive pages with persuasive content that is dynamically updated 28 Beta Launch presentations Q2 2012 28
  • 29. Results • Slide with the Increase example towell in email click through: (at the 5th reminder) >100% Increase in e-commerce revenue: >25% Beta Launch presentations Q2 2012 29 29
  • 30. Persuasion Profiling Are you ready to Beta? Launch April 1st in Netherlands, from May onwards rest of Europe & Russia. Q3/4 2012 launch USA with version 1. 30 30 Beta Launch presentations Q2 2012
  • 31. Wow! @persuasionAPI 31

Editor's Notes

  1. Little talk about myself: Maurits Kaptein
  2. I will be talking about persuasion. Means vs. Ends Distinction.
  3. An example of persuasion. 27% more likely. 33% more likely
  4. Briefly go through each of the six: Consensus (previous example) Liking (Similarity wallet example) Expertise (Milgram example) Commitment (Sign in garden example) Scarcity (Abundantly available example) Reciprocity (Free books example)
  5. They are already used online (Scarcity, Concensus, Scarcity)
  6. Important questions
  7. Talk about the google add study
  8. Does everyone respond in the same fashion?
  9. Talk through the two scenarios.
  10. What are persuasion profiles?
  11. So for each user its an estimate of what works. Which then can subsequently be used to select content.
  12. That basically is new…
  13. How do you actually use persuasion profiles?