SlideShare a Scribd company logo
Increasing Market
Traction
Understanding Your User
• 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
I’m writing a
book!
Signup to be
notified here:
http://www.shiraabel.com/book
EIA2017Portugal - Shira Abel - Increasing Market Traction: Understanding Your User
“A true unfair advantage
is something that cannot
be easily copied or
bought.”
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
TRACTION
You might have traction now, you probably don’t. Here’s how you
understand your customer so you can build it.
STRATEGY COMES
FIRST
A Quick Point
@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)
WHY IT WORKS
THE BASICS – the chemicals in our body are biologically
programmed to react to certain things in a specific way
Endorphins
§ Runners high
§ Masks physical pain
§ The root of endurance
§ The reason laughing feels good
§ Games
@shiraabel
@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
Serotonin
§ Leadership, pride, status
§ Branding
§ Leader boards
§ Social proof
§ Raises confidence of the winner and the supporters
§ “Mefargen”ß hebrew word
§ Trust + security = confidence = innovation
§ Corporate Culture
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
Norepinephrine
§ Fight or flight response
§ Mobilize brain and body for action
§ Helps us be alert / at attention
§ Increases blood being pumped
@shiraabel
Cortisol
§ Stress hormone
§ Impairs cognitive performance
§ Toxic situations destroy our ability to create
§ Paranoid (layoffs does this)
§ High stress environments
§ Inhibits Oxytocin
@shiraabel
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
@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
@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
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
“Simplicity
changes
behavior.”
- B.J. Fogg
The Hook
Reward Status Achievement
Self
Expression
Competition Altruism
Points
• • • • •
Levels
• • •
Challenges
• • • • • •
Virtual Goods
• • • • •
Leaderboards
• • • •
Gifting &
Charity • • • •
• Points
• Badges(Achievement Symbols)
• Fixed Action Rewards
• Leaderboard
• Progress bar
• Quest Lists
• Win Prize
• High-Five
• Crowning
• Level Up Symphony
• Aura Effect
• Sep-by- Step Tutorial
• Boss Fights
• Virtual Goods
• Build from Scratch
• Collection Set
• Avatar
• Earned Lunch
• Learning Curve
• Protection
• Recruitment
• Monitoring
• Appointment Dynamics
• Fixed Intervals
• Dangling
• Prize Pacing
• Options Pacing
• Patient Feedback
• Count Down
• Throttles
• Moats
• Narrative
• Elitism
• Humanity Hero
• Higher Meaning
• Beginners Luck
• Free Lunch
• Destiny Child
• Co Creator
• Milestone Unlock
• Evergreen Mechanics
• Real-Time Control
• Chain Combos
• Instant feedback
• Boosters
• Blank Fills
• Voluntary Autonomy
• Choice Perception
• Friending
• Social Treasure/Gifting
• SeeSaw Bump
• Group Quest
• Touting
• Bragging
• Water Cooler
• Thank you Economy
• Mentorship
• Social Prod
• Glowing Choice
• MiniQuests
• Visual Storytelling
• Easter Eggs
• Random Rewards
• Obvious Wonder
• Rolling Rewards
• Mischief
• Sudden Effect
• Oracle Effect
• Sunk-Cost Tragedy
• Progress Loss
• FOMO
• Evanescence Opportunity
• Status Quo Sloth
• Scarlet Letter
• Visual Grave
• Weep Tune
MEANING
ACCOMPLISHMENT EMPOWERMENT
UNPREDICTABILITY
AVOIDANCE
SCARCITY
Octalysis
SOCIAL INFLUENCEOWNERSHIP
http://yukaichou.com/
Engagement Tools
FORM FOLLOWS
FUNCTION
Building the marketing into the product. Think about what you
want people to do, now reverse engineer it.
@shiraabel
Watch the Funnel
Acquisition – Learns About Product
Conversion – Signs Up
Buys
Retention – Uses Product
WOM (Sharing)
@shiraabel
Engineering Social Proof
Engineering Social Proof
Ask for
reviews
in
update
notes
Engineering the Path to OK
The user must
do a set of
actions,
before
permission is
requested.
Engineering the Path to OK
User-triggered
requests
showed the
highest
conversion
rates
Engineering the Path to OK
Marking
optional fields
only
encourages
‘voluntary over-
disclosure’
THESE WORK EVEN
WHEN WE KNOW
Even when we know we’re being manipulated, we’re susceptible to
certain things.
Priming
DOUBLED VIEWS & REVENUE
Before After
Reciprocity
Anchoring
@shiraabel
Framing
How you say and do things matters
Loss Aversion
Inclusion – e.g. Easter Egg
Achievement
Ask for a small sign in the
window, first
Foot in the Door
Mere Exposure
Ear worms work
@shiraabel
Social Identity
Theory
Us vs. Them
https://kiralynblue.files
.wordpress.com/
2014/02/thinking--conf-
-bias.png
@shiraabel
Confirmation Bias
Don’t make
me think
@shiraabel
Analysis Paralysis
SMALL THINGS MATTER
Get down to the details
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.”
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…
§ 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
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
EIA2017Portugal - Shira Abel - Increasing Market Traction: Understanding Your User
@shiraabel
Do.
Do not.
Try.
Your options according to Yoda
Connect!
@shiraabel
http://www.linkedin.com/in/shiraabel
http://www.facebook.com/shiraabel
https://plus.google.com/u/0/+ShiraAbel/ posts
http://www.instagram.com/shiraabel
http://www.pinterest.com/shira_abel
Thank
you!
All of the stock photos are taken fromhttps://stocksnap.io
https://www.youtube.com/watch?v=ReRcHdeUG9Y
http://stress.about.com/od/stresshealth/a/cortisol.htm
THANK YOU’S: Dan-ya Shwartz Bar-El & Ze'ev Rosenstein
https://www.psychologytoday.com/basics/dopamine
http://uxmovement.com/forms/why-users-fill-out-less-if-you-mark-
required-fields/
http://dancounsell.com/articles/prompting-for-app-reviews
http://agevik.se/post/72876032312/20-lessons-about-making-viral-
apps-i-learned-the-hard
http://contentmarketinginstitute.com/2011/09/web-content-
conversions/
http://www.slideshare.net/startuplessonslearned/eric-ries-the-lean-
startup-google-tech-talk
http://www.slideshare.net/gzicherm/nir-eyal-hookedatgsummit
http://www.businessmodelgeneration.com/canvas
http://www.briansolis.com/2008/08/socialization-of-your-personal-
brand_28/
http://www.avc.com/a_vc/2004/03/its_a_small_wor.html
http://www.quora.com/Udemy/How-did-Udemy-get-11-000-
courses-online-so-quickly
http://www.amazon.com/Mountain-Three-Wolf-Short-Sleeve/
product-reviews/B002HJ377A
http://lifehacker.com/the-psychology-of-a-fanboy-why-you-keep-
buying-the-sam-1300451596
http://www.amazon.com/BIC-Cristal-1-0mm-Black-MSLP16-Blk/
dp/B004F9QBE6
http://www.youtube.com/watch?v=7QmCUDHpNzE
http://www.youtube.com/watch?v=ZUG9qYTJMsI
http://www.macadamia-apps.com/app-launch-7-mistakes-to-
learn-from/
http://flowingdata.com/2011/09/18/yoda-pie-chart/
http://blog.bitly.com/post/9887686919/you-just-shared-a-link- how-long-will-
people-pay
http://www.briansolis.com/2011/09/whats-the-r-o-i-a-framework- for-social-
analytics/
http://www.slideshare.net/setlinger/altimeter-social-
analytics081011final
Breakthrough	Marketing	Plans		http://www.seomoz.org/blog/tracking-the-roi-
of-social-media
http://ideas.deloitte.ca/blog/2011/09/social-media-going- beyond-roi/
http://www.jeffbullas.com/2011/09/20/the-10-key-mistakes- many-bloggers-
and-writers-make/
http://www.jeffbullas.com/2011/03/01/the-10-best-facebook- campaigns/
http://www.facebook-studio.com/		http://www.seomoz.org/blog/tracking-
the-roi-of-social-media		http://marketingfortomorrow.com/tag/marketing-
tone/
http://www.theatlantic.com/business/archive/2015/01/the-
psychological-difference-between-1200-and-1167/384993/
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EIA2017Portugal - Shira Abel - Increasing Market Traction: Understanding Your User

  • 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. I’m writing a book! Signup to be notified here: http://www.shiraabel.com/book
  • 5. “A true unfair advantage is something that cannot be easily copied or bought.”
  • 6. 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
  • 7. TRACTION You might have traction now, you probably don’t. Here’s how you understand your customer so you can build it.
  • 9. @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)
  • 10. WHY IT WORKS THE BASICS – the chemicals in our body are biologically programmed to react to certain things in a specific way
  • 11. Endorphins § Runners high § Masks physical pain § The root of endurance § The reason laughing feels good § Games @shiraabel
  • 12. @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
  • 13. Serotonin § Leadership, pride, status § Branding § Leader boards § Social proof § Raises confidence of the winner and the supporters § “Mefargen”ß hebrew word § Trust + security = confidence = innovation § Corporate Culture
  • 14. 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
  • 15. Norepinephrine § Fight or flight response § Mobilize brain and body for action § Helps us be alert / at attention § Increases blood being pumped @shiraabel
  • 16. Cortisol § Stress hormone § Impairs cognitive performance § Toxic situations destroy our ability to create § Paranoid (layoffs does this) § High stress environments § Inhibits Oxytocin @shiraabel
  • 17. 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
  • 18. @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
  • 19. @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
  • 20. 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
  • 23. Reward Status Achievement Self Expression Competition Altruism Points • • • • • Levels • • • Challenges • • • • • • Virtual Goods • • • • • Leaderboards • • • • Gifting & Charity • • • •
  • 24. • Points • Badges(Achievement Symbols) • Fixed Action Rewards • Leaderboard • Progress bar • Quest Lists • Win Prize • High-Five • Crowning • Level Up Symphony • Aura Effect • Sep-by- Step Tutorial • Boss Fights • Virtual Goods • Build from Scratch • Collection Set • Avatar • Earned Lunch • Learning Curve • Protection • Recruitment • Monitoring • Appointment Dynamics • Fixed Intervals • Dangling • Prize Pacing • Options Pacing • Patient Feedback • Count Down • Throttles • Moats • Narrative • Elitism • Humanity Hero • Higher Meaning • Beginners Luck • Free Lunch • Destiny Child • Co Creator • Milestone Unlock • Evergreen Mechanics • Real-Time Control • Chain Combos • Instant feedback • Boosters • Blank Fills • Voluntary Autonomy • Choice Perception • Friending • Social Treasure/Gifting • SeeSaw Bump • Group Quest • Touting • Bragging • Water Cooler • Thank you Economy • Mentorship • Social Prod • Glowing Choice • MiniQuests • Visual Storytelling • Easter Eggs • Random Rewards • Obvious Wonder • Rolling Rewards • Mischief • Sudden Effect • Oracle Effect • Sunk-Cost Tragedy • Progress Loss • FOMO • Evanescence Opportunity • Status Quo Sloth • Scarlet Letter • Visual Grave • Weep Tune MEANING ACCOMPLISHMENT EMPOWERMENT UNPREDICTABILITY AVOIDANCE SCARCITY Octalysis SOCIAL INFLUENCEOWNERSHIP http://yukaichou.com/ Engagement Tools
  • 25. FORM FOLLOWS FUNCTION Building the marketing into the product. Think about what you want people to do, now reverse engineer it.
  • 27. Watch the Funnel Acquisition – Learns About Product Conversion – Signs Up Buys Retention – Uses Product WOM (Sharing) @shiraabel
  • 29. Engineering Social Proof Ask for reviews in update notes
  • 30. Engineering the Path to OK The user must do a set of actions, before permission is requested.
  • 31. Engineering the Path to OK User-triggered requests showed the highest conversion rates
  • 32. Engineering the Path to OK Marking optional fields only encourages ‘voluntary over- disclosure’
  • 33. THESE WORK EVEN WHEN WE KNOW Even when we know we’re being manipulated, we’re susceptible to certain things.
  • 35. DOUBLED VIEWS & REVENUE Before After Reciprocity
  • 37. @shiraabel Framing How you say and do things matters
  • 39. Inclusion – e.g. Easter Egg
  • 41. Ask for a small sign in the window, first Foot in the Door
  • 46. SMALL THINGS MATTER Get down to the details
  • 47. 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.”
  • 48. 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…
  • 49. § 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
  • 50. 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
  • 55. All of the stock photos are taken fromhttps://stocksnap.io https://www.youtube.com/watch?v=ReRcHdeUG9Y http://stress.about.com/od/stresshealth/a/cortisol.htm THANK YOU’S: Dan-ya Shwartz Bar-El & Ze'ev Rosenstein https://www.psychologytoday.com/basics/dopamine http://uxmovement.com/forms/why-users-fill-out-less-if-you-mark- required-fields/ http://dancounsell.com/articles/prompting-for-app-reviews http://agevik.se/post/72876032312/20-lessons-about-making-viral- apps-i-learned-the-hard http://contentmarketinginstitute.com/2011/09/web-content- conversions/ http://www.slideshare.net/startuplessonslearned/eric-ries-the-lean- startup-google-tech-talk http://www.slideshare.net/gzicherm/nir-eyal-hookedatgsummit http://www.businessmodelgeneration.com/canvas http://www.briansolis.com/2008/08/socialization-of-your-personal- brand_28/ http://www.avc.com/a_vc/2004/03/its_a_small_wor.html http://www.quora.com/Udemy/How-did-Udemy-get-11-000- courses-online-so-quickly http://www.amazon.com/Mountain-Three-Wolf-Short-Sleeve/ product-reviews/B002HJ377A http://lifehacker.com/the-psychology-of-a-fanboy-why-you-keep- buying-the-sam-1300451596 http://www.amazon.com/BIC-Cristal-1-0mm-Black-MSLP16-Blk/ dp/B004F9QBE6 http://www.youtube.com/watch?v=7QmCUDHpNzE http://www.youtube.com/watch?v=ZUG9qYTJMsI http://www.macadamia-apps.com/app-launch-7-mistakes-to- learn-from/ http://flowingdata.com/2011/09/18/yoda-pie-chart/ http://blog.bitly.com/post/9887686919/you-just-shared-a-link- how-long-will- people-pay http://www.briansolis.com/2011/09/whats-the-r-o-i-a-framework- for-social- analytics/ http://www.slideshare.net/setlinger/altimeter-social- analytics081011final Breakthrough Marketing Plans http://www.seomoz.org/blog/tracking-the-roi- of-social-media http://ideas.deloitte.ca/blog/2011/09/social-media-going- beyond-roi/ http://www.jeffbullas.com/2011/09/20/the-10-key-mistakes- many-bloggers- and-writers-make/ http://www.jeffbullas.com/2011/03/01/the-10-best-facebook- campaigns/ http://www.facebook-studio.com/ http://www.seomoz.org/blog/tracking- the-roi-of-social-media http://marketingfortomorrow.com/tag/marketing- tone/ http://www.theatlantic.com/business/archive/2015/01/the- psychological-difference-between-1200-and-1167/384993/ References & Reads