Psychology of persuasion: 7 examples for digital marketing

1. 23 January 2017 Copyright © Econsultancy
Psychology: 7 examples of
persuasion
Increase conversion & loyalty
Tim Fidgeon
@timfidgeon
training@econsultancy.com
@econsultancy
#econlearn

2. Persuasive design
There are no 100% guarantees
…but you can develop & test
ideas based on these
principles….
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3. Persuasive design
• Reciprocity
• Commitment & consistency
• Social proof
• Authority
• Liking
• Scarcity
• Paradox of choice
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@timfidgeon
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4. Reciprocity
Waiter’s tip: impact of free sweets (per-person)
o No sweet = control
o 1 sweet = +3% tips
o 2 sweets = +14%
o 1 sweet + an ‘extra’ = + 23%
‘Unofficial’ sweet was unexpected and perceived as
‘just for them’.
Strohmetz, D. B. B. et al (2002) Sweetening the till: the use of candy to increase restaurant tipping. Journal of Applied Social Psychology. Vol32. pp300-309.
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5. Reciprocity
Give away the incentive, then ask for something…
Personal details
File download
Conversion rate = 80%
Completion accuracy = 40%
Conversion rate = 70%
Completion accuracy = 90%
Gamberini, L. et al (2007) Embedded persuasive strategies to obtain visitors’ data: comparing reward and reciprocity in an amateur, knowledge-based website.
Berlin/Heidelberg, Springer.
Personal details
File download
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7. Persuasive design
• Reciprocity
• Commitment & consistency
• Social proof
• Authority
• Liking
• Scarcity
• Paradox of choice
23 January 2017 7
@timfidgeon

8. Commitment & consistency
Loyalty cards…
• 8 empty = 19% redeemed
• 2 stamps, 8 empty = 34% redeemed
– Average time-to-redeem = quicker
– Purchase-frequency increases near to goal
Emphasise how much of task = already completed
(by you, or them)
Nunes, J. C. and Dreze, X. (2006) The endowed progress effect: how artificial advancement increases effort.
Journal of Consumer Research. Vol.32. pp504-12.
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9. Commitment & consistency
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10. Commitment & consistency
• Get a 10-minute ‘no strings’ appointment
– Less commitment involved than a purchase
• Start with a small order…
– …even if it makes no profit, it creates the
relationship
Green, F. (1965) The “foot-in-the-door” technique. American Salesman, Vol10. pp14-16.
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11. Commitment & consistency
Help people change their mind
• Especially important for older
1. Framing statement
– “Your previous decision was correct, given the circumstances…”
2. Persuasion statement
– “…but circumstances have changed”
o Emphasise your product/service’s consistency with their pre-
existing values/action
Brown, S. L. T. Asher and Cialdini, R. B.(2005) Evidence of a positive relationship between age and preference for consistency. Journal of Research in
Personality. Vol39. pp517-33.
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12. Persuasive design
• Reciprocity
• Commitment & consistency
• Social proof
• Authority
• Liking
• Scarcity
• Paradox of choice
23 January 2017 12
@timfidgeon

13. Social proof
People staring up at a tall building….
• 1 researcher, 20% of pedestrians join in/look up
• 5 researchers, 80% of pedestrians join in/look up
Milgram et al (1969)
http://psycnet.apa.org/index.cfm?fa=buy.optionToBuy&uid=1970-00589-001
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15. Authority
• Researcher illegally crosses road dressed as…
– Workman
– Businessman
• 3.5x people follow the business man
http://www.actionablebooks.com/summaries/influence-the-psychology-of-persuasion/
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16. Authority
TV reporter with uniform outside a bank, places a sign
on cash machine:
“Out of order – give deposits to guard on duty”
10/10 customers handed over their deposits. Only 1
showed any hesitation
– In 2 hours, reporter gained access to over
$10,000 in deposits and account balances
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17. Authority
Emphasise your…
oCredentials
oReviews
oTestimonials
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18. Persuasive design
• Reciprocity
• Commitment & consistency
• Social proof
• Authority
• Liking
• Scarcity
• Paradox of choice
23 January 2017 18
@timfidgeon

19. Liking
We’re more influenced by people like us: values, age, gender…
Survey response rates: control = 30%
• Similar name sender-to-recipient = 50%
– Robert Greer / Bob Gregar
– Cynthia Johnston / Cindy Johanson
• Emphasise similarities between brand, staff & clients and potential
customer
– Case studies, testimonials…
Garner, R. (2005) Post-It Note persuasion: a sticky influence. Journal of Consumer Psychology. Vol15. pp230-37.
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20. Liking
Survey response rates
• Cover letter = 36%
• Handwritten message on cover letter = 48%
• Handwritten sticky note = 75%
– Data quality = also higher
Personal requests get better response
Garner, R. (2005)
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21. Liking
www.nakedwines.com
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22. Persuasive design
• Reciprocity
• Commitment & consistency
• Social proof
• Authority
• Liking
• Scarcity
• Paradox of choice
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24. Paradox of choice
Customers = unhappy when differences between products are…
• Too few/many
• Unclear/confusing
Guidelines…
• Avoid too much choice (over-proliferation)
• Differentiate/recommend products for customers
– Most popular; Best value; Customer or usage-type; ‘Offer of the
month’…
http://en.wikipedia.org/wiki/The_Paradox_of_Choice:_Why_More_Is_Less
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25. Paradox of choice
Supermarket jam display
• 6 flavours = 30% conversion rate
• 24 flavours = 3% conversion rate
http://www.businessinsider.com/too-many-choices-are-bad-for-business-2012-12
http://www.columbia.edu/~ss957/articles/Choice_is_Demotivating.pdf
http://www.columbia.edu/~ss957/articles/How_Much_Choice_Is_Too_Much.pdf
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26. Paradox of choice
Differentiate/recommend products for customers…
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27. Persuasive design
• Reciprocity
• Commitment & consistency
• Social proof
• Authority
• Liking
• Scarcity
• Paradox of choice
23 January 2017 27
@timfidgeon