The document provides guidance on building market traction and understanding users to increase engagement. It discusses how biological factors like dopamine, serotonin and oxytocin can be leveraged through techniques like gamification, social proof, and building trust. Specific tactics are recommended like engineering the path to permission, priming users, leveraging loss aversion, and focusing on small meaningful details. The document emphasizes testing assumptions and adjusting based on user behavior and cognitive factors like emotions, resources and mood.
2. • CEO & Lead Strategist, Hunter & Bard
• Award Winning Marketing & Branding
Agency
• Previously Professor of Marketing for
Startups at Tel Aviv/ Jaffa Academic
College
• Mentor at: 500 Startups,
• Founding Mentor at: Google Campus
TLV, Microsoft Ventures Accelerator
TLV
• MBA, Kellogg School of Management
Shira Abel
3.
4. “A true unfair advantage is
something that cannot be
easily copied or bought.”
5. Agenda
@shiraabel
Traction - Why I'm Focusing on Behavior
Why It Works
Action Triggers
It Works Even When We Know
Form Follows Function
Small Things Matter
Real Life Examples
6. TRACTION
You might have traction now, you probably don’t. Here’s how you
understand your customer so you can build it.
8. @shiraabel
Numbers – in General
Right now you probably don’t have enough traffic on your
site to test much
Product Market Fit = 40% of your customers would be
devastated if your product disappeared tomorrow
Watch your churn rate (keep it below 2% if you’re SaaS –
preferably negative churn)
10% MoM growth is what’s expected in most accelerators
in Silicon Valley (depending on product)
9. WHY IT WORKS
THE BASICS – the chemicals in our body are biologically
programmed to react to certain things in a specific way
10. Endorphins
Runners high
Masks physical pain
The root of endurance
The reason laughing feels good
Games
@shiraabel
11. @shiraabel
Dopamine
The good feeling of progress and
accomplishment
Crossing things off lists
Need to be able to see your goal
(e.g. Corporate Vision)
The reason why we become “hooked” on notifications from our
phone
Triggered through variable unexpected rewards
Highly addictive
12. Serotonin
Leadership, pride, status
Branding
Leader boards
Social proof
Raises confidence of the winner and the supporters
“Mefargen” hebrew word
Trust + security = confidence = innovation
Corporate Culture
13. Oxytocin
Love, friendship, mommy-hood
Hugging, shaking hands – the touch matters
Giving time & energy to help for free (money doesn’t
count – more on that later)
Witnessing acts of human generosity releases oxytocin
Brand – Corporate Social Responsibility
14. Norepinephrine
Fight or flight response
Mobilize brain and body for action
Helps us be alert / at attention
Increases blood being pumped
@shiraabel
15. Cortisol
Stress hormone
Impairs cognitive performance
Toxic situations destroy our ability to create
Paranoid (layoffs does this)
High stress environments
Inhibits Oxytocin
@shiraabel
16. ACTION TRIGGERS
You can’t force anyone to do something they don’t want to, but if they
do want to – this will help you get them there
17. @shiraabel
T-Shirt Economy
Reputation based
Incentives are about doing something for the love of it NOT
financial reward
Easier to get someone to do something for free than for less money
(e.g. lawyers would rather do pro bono than get paid less per hour
for the same work)
Changes the way we perceive the work we do
When we already have our basic needs met, we’re more likely to do
something for our own joy
This is where the evangelists should be – that’s why not paying
them is a good thing
18. @shiraabel
Financial Economy
People judge if something is “worth” their time
Become less enthusiastic if the work is not paid
according to expectations
Make sure incentives are aligned with goals
Proven to be a bad way to build incentives to get
people to work harder
Studies have shown that for cognitive work, a larger reward
results in worse results
Loss aversion, however, brings better results
This will affect the affiliates the most
19. First Choice Brand Effect
“…when the favorite brand
was included… the choice
was made instantly… this…
occurs only for the
respondent’s number one
brand…”
*Decoded, by Phil Barden
46. How You Say Things Matters
Researchers found that placing the following statement at
the end of an ad… caused their trust scores to jump as
much as 33 percent!’
“You can trust us to do the job for you.”
47. Emotions Vs. Logic
When numbers are even, e.g. $100 –
we rely on our feelings
When numbers are exact, e.g. $17.86
we rely on our logic
It affects negotiation as well…
48. Fear – Insurance
Guilt – Mother’s Day
Trust – Financial
institutions
Value – Matching prices
Belonging – Part of our
community
Competition – Doing better
than the Jones’s
Instant Gratification – I
want it now
Leadership – Early adopter
& evangelist
Trendsetting – What are
the leaders doing?
Time – Save time
Get Emotional
@shiraabel
49. Point being – When is your customer using your product?
What’s their cognitive level?
Cognitive Resources
Behavior depends on time of day – we’re more likely to have no patience at
the end of the day, when we’re hungry or tired
Place – if we’re being interrupted every 30 seconds, our cognitive resources
will be spent – decision making goes down
How much we’ve had to concentrate – again, using up cognitive resources
We can’t decipher truth from fiction when we’re cognitively spent
Our mood can change simply by putting a pencil between our teeth and forcing
ourselves to smile
I like to talk with people instead of at them
Feel free to interrupt with questions
Ask how many of you consider themselves early adopters?
Do they read Techmeme? Techcrunch? TNW?
STRATEGY IS WHAT YOU SAY NO TO
EXPLAIN WHAT THAT MEANS
E.G. Awful company that used all the right action triggers but had a crap product
You see someone do something good – and it makes you feel good. It’s why we love H
Viral Loop by Adam Pendenberg – an experiment was done where an investor was given a dose of oxytocin, they were more likely to give a stranger power over their money no questions asked
This is really cool and very interesting. Especially considering the mantra in the company is to work for reward, and most salaries are incentive based. Realy think it creates a nice balance, although I wonder how people will react ☺
http://www.youtube.com/watch?v=u6XAPnuFjJc
Remember Serotonin? THIS.
The in your face asking when someone first downloads the app got Cluster a 30 – 40% acceptance rate (which sucks)
Onboarding with benefit explanation got 40 – 66%
The wait until you need it request with the double ask raised the OK rate to over 90%
The in your face asking when someone first downloads the app got Cluster a 30 – 40% acceptance rate (which sucks)
Onboarding with benefit explanation got 40 – 66%
The wait until you need it request with the double ask raised the OK rate to over 90%
The in your face asking when someone first downloads the app got Cluster a 30 – 40% acceptance rate (which sucks)
Onboarding with benefit explanation got 40 – 66%
The wait until you need it request with the double ask raised the OK rate to over 90%
This is where the strength in community comes from
Company in Bulgaria doing analytics for SM enterprises had the wrong pitch – couldn’t get through to investors
Tell how traffic points go down in Italy instead of up bc they found that was a stronger action trigger than building points.
Inclusion – think of the Mac vs Microsoft ads
Real estate signs
Ask for a small sign in the window
Those who say yes will be more likely to say yes later
Repeat information sinks in – think how we buy
Us vs. Them
Self concept is derived from the group you’re a part of
Goth vs Preppy vs Geek vs Gamer Vs Glam
Menu bar – max 5 choices
Even babies ask.
Researchers found that shoppers deal with pricing information differently when prices feature round numbers ("5"), as opposed to non-round ones ("4.99"). When something costs $100, consumers tend to rely on their feelings, whereas when something has an irregular price—such as $98.67—consumers have to use reason to compute whether it's a good price.
Open to discussion – what can they think of that hits each one?
If you have a complicated product then hopefully it’s something your customer is using in the morning