This document discusses the psychology of experimentation in conversion rate optimization (CRO). It explains that CRO is shifting from media-led optimization to experience-led optimization focused on customer engagement. Neuroeconomics principles can be integrated into the CRO process by understanding how the brain's reward, emotional, and decision-making centers influence consumer choice. Specific cognitive biases like choice architecture, distinction bias, and social proofing can then be tested to improve customer decision-making. In summary, understanding the logical and emotional drivers of customer choice through hypothesis testing and evolving customer personas allows experiences to be designed that help customers make better purchasing decisions.

1. experience
The Psychology of Experimentation
NIMA YASSINI
CEO
NEW REPUBLIQUE

2. THE PSYCHOLOGY of EXPERIMENTATION

3. AboutA little bit about me.

4. I’ve always had a love affair with selling and buying

5. WHY
WHAT

6. CONSUMER BEHAVIOUR

7. BRAND
CRO
Personalisation
UX
DESIGN
DEV

9. Uncovering the reasons
customers don’t buy,
& what to do instead.

10. The challenge & future of
O P T I M I S A T I O N

11. CRO Industry

12. Media lead optimisation
Experience led optimisation

13. • Optimise their media spend via better
conversion rates on landing pages or other
destination pages.
• Single story, single focused optimisation
journeys.
• Driven by product and larger digital
experience
• Focus on customer engagement and
interaction which may lead to conversions.
• Growth will be led by product owners
integrating CRO Into their design process.
Media lead optimisation Experience led optimisation
Behavioural science fed
by fast data & UX.

14. CONVERSION HAPPENS AT THE POINT WHERE
THE EXTERNAL INFLUENCE ALIGN TO A
CONSUMER INTERNAL MOTIVATIONS.

15. Frameworks & thinking tools
FOR COGNITIVE CHOICE PROCESS.

16. The psychology of choice
I N T H E P U R C H A S E J O U R N E Y

17. NEUROECONOMICS
Economics
Neuroscience
Psychology

18. Why focus on choice
&
THE DECISION PARADIGM?

19. Decision fatigue

20. 8 seconds

21. Environment
Upbringing
Socio economic
Education
Social influence

23. Nucleus Accumbens
Anticipation of pleasure.
Responsible for dopamine release, which promotes desire.
Insula
This is the emotional pain register of the limbic
system (the emotional hub of the brain)
Prefrontal cortex
Regulates complex cognitive,
emotional, and behavioural
functioning. This the part of the
brain that weighs up gain and
loss.

24. Design for dopamine release
C O N T R O L

25. Design for dopamine release
C O N T R O L V A R I AT I O N 1
W I N N E R
24%

26. Design for dopamine release
C O N T R O L V A R I AT I O N 1 V A R I AT I O N 2
W I N N E R
24% 12%
W I N N E R

27. Design for the Insula(Feeding on FOMO)

28. Design for the Insula(Feeding on FOMO)
W I N N E R
470%

29. Design for the Prefrontal cortex(Feeding on Gain & Loss)

30. Design for the Prefrontal cortex(Feeding on Gain & Loss)
W I N N E R
10%

32. Integrate Neuroeconomics
I N T O Y O U R C R O P R O C E S S

33. LEARNING
1
VALUATION
ACTION
SELECTION
REPRESENTATION
2 3
4
OUTCOME
EVALUATION
5
1. Identifying internal and external states as well as
potential courses of action;
2. The valuation of the different actions under
consideration (influenced by your cognitive biases);
3. The selection of one of the actions on the basis of
their valuations (influenced by your cognitive
biases);
4. After implementing the decision the brain needs to
measure the desirability of the outcomes that follow;
5. The outcome evaluation is used to update the other
processes to improve the quality of future decisions.
Decision Making Framework

35. 22cognitive biases

36. Choice architecture. Distinction bias. Social proofing.
3 Examples of cognitive biases

37. Choice architecture.

38. Choice architecture
C O N T R O L

39. Choice architecture
V A R I AT I O N

40. Choice architecture
W I N N E R
32%
V A R I AT I O N

41. Distinction bias.

42. Distinction bias
C O N T R O L

43. Distinction bias
V A R I AT I O N

44. Distinction bias
V A R I AT I O N
W I N N E R
98%

45. Social proofing.

46. Social proofing
C O N T R O L

47. Social proofing
V A R I AT I O N

48. Social proofing
V A R I AT I O N
W I N N E R
44%

49. In Summary.

50. In summary.
• By understanding the factors that influence choice we
are better equiped to deliver experience that helps
customers make better decisions.
• Make sure your test strategies take into account the
logical and emotional drivers of why customers buy.
• Understanding what factors impact choice is a matter
of hypothesis and testing. Keep testing and building
these and evolving your customer personas.

51. Win a $20,000
CRO Strategy
& Testing journal

52. Fin.

53. THANK YOU
#Modernize2018
experience