SlideShare a Scribd company logo
Barbara Koop
Director Customer Experience & Expert Services
Get behind your data
Video
3
Cognitive Biases
A cognitive bias is a pattern of deviation in judgment that
occurs in particular situations, leading to what is broadly called
irrationality.
4
Framing Effect
The framing effect describes that presenting the same option in
different formats can alter people's decisions.
5
Framing Effect
6
Source: Prof. Dan Ariely
68% 16%
32% 0%
84%
Total: $ 8012 Total: $11444
Anchoring
Anchoring is a cognitive bias that describes the common
human tendency to rely too heavily, or "anchor," on one
trait or piece of information when making decisions.
7
Anchoring
8
Anchoring
9
Behavior =
Motivation * Ability * Trigger (BJ Fogg)
10
Behavior =
Motivation * Ability * Trigger (BJ Fogg)
11
- low cost of liking
- existing motivation
- hot triggers
Source: Robert Neal.com
Putting hot triggers in the path of
motivated people
12
1. Commitment
2. Scarcity
3. Authority
12
Persuasion:
So.. What makes people tick?
13
14
6 Principles of Persuasion (Cialdini)
14
14
Social Proof
15Asch conformity experiments (1950s)
Authority
1
6
65% of people went up to 450 volts
Cues of authority were essential
How is that applied?
17
Popularity Lists: influence of numbers
18
Scarcity (in availability)
19
20
Scarcity (in time)
21
Find the persuasion arguments
22
Scarcity
Social
proof
Social proof
Consistency &
Commitment
Social proof
Framing
Liking
Social proof
Scarcity
Scarcity
Social proof
Consistency &
Commitment
Social proof
Less persuasion is more persuasion
1. “100s of others have taken this study before.”
2. “Professor Ford recommends taking this study.”
3. “There are only 18 hours left to participate in this study.”
• VS
1. “100s participated, & Professor Ford recommends it. Only 18 hours left.”
2. “Prof. Ford recommends it, 100s participated, only 18 hours left.”
3. “Only 18 hours left, & Professor Ford recommends it. 100s took it.”
23
The results
Clicks on multi-principle ads: .18 %
And on single principle ads: .36%
24
24
25
So how can less be more?
Scarcity
Social
proof
Social proof
Consistency &
Commitment
Social proof
Framing
Liking
Social proof
Scarcity
Scarcity
Social proof
Consistency &
Commitment
Social proof
People are different
26
Not everyone obeys the laws of social proof
27
There are people that question authority
28
28
29
People are consistently different
29
30
So..
Persuade individuals rather than a group
30
We should differentiate & select..
But how?
31
32
The goal of persuasion is to influence
someone’s attitude or behavior.
We think we know about our customers..
34
The key to persuasion is to understand
and influence motivations behind the
data..
35
IQ IQ, or intelligence quotient, is the score derived
from one of several standardized tests designed
to assess an individual's intelligence.
EQ, or emotional quotient is defined as an
individual's ability to identify, evaluate,
control, and express emotions.
EQ
36
The goal of persuasion is to influence someone’s behavior
A Persuasion Profile
3737
Normal Page:
Scarcity:
Authority:
Social proof:
EffectEffect
A persuasion profile is a collection of the estimates of the
effect of persuasion principles for each individual customer
Updating the profile
3838
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
Normal Page:
Scarcity:
Authority:
Social proof:
EffectEffect
Over and over again…
39
Normal page:
Social proof:
Authority:
Scarcity:
Effect
First page served:
Effect
Second page served:
Effect
Third page served:
39
Increasing chance of conversion
for each customer individually
40
Effect
Third page served:
Normal page:
Social proof:
Authority:
Scarcity:
PersuasionAPI..
How does it work for you?
41
Implementations in PersuasionAPI
42
Variant 1
“Bestseller”
“80% of people..”
“One of our most
popular”
Authority
Social
proof
Scarcity
Original
Strategies Implementations
Variant 2
Variant 3
Variant 4
The PersuasionAPI advice
We will return the best strategy
given the person, and given the
previous behavior
43
Variant 1Authority
Social
proof
Scarcity
Original
Implementations
Variant 2
Variant 3
Variant 4
Strategies
The PersuasionAPI advice
• You choose the
implementations 44
Variant 1Authority
Social
proof
Scarcity
Original
Implementations
Variant 2
Variant 3
Variant 4
Strategies
StrategySets
45
Adaptive
models
Baseline
PersAPI
80%
20%
Variant 5
Variant 1Authority
Social
proof
Scarcity
Implementations
Variant 2
Variant 3
Variant 4
Strategies
Original
PersuasionAPI in action
46
authority scarcity social proof
49
PersuasionAPI in email - landingpage
PersuasionAPI on email subjectline
50
authority
“Exclusive hotel deals hand-picked by our
experts.”
“Top deals from us- the world's #1 website for
booking hotels.”
scarcity
“Our lowest rates are here, grab them before
they're gone.”
“Last chance, these deals are going, going…
almost gone.”
social proof
“The latest deals in this week's trending cities.”
“Millions of people are choosing deals in these
cities.”
51
Booking.com increases conversion
over 10% and scale up to 20M
persuasion profiles worldwide
52
Based on a true story
Short listed as marketing
book of the year by PIM in
2013
Questions?
Barbara.Koop@Webpower.nl

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SEOshop Connect - Get behind your data door Webpower

Editor's Notes

  1. Notice (1) that the organization is putting out a message that they know their fans will like. Other times they encourage their fans to like it and they generate tens of thousands of likes and thousands of comments. However, those don’t directly translate into a ROI. But using the principle of commitment and consistency they ask the fans, one day later, to purchase a shirt that has that very message on it. This pattern has been found to be highly effective. In 1966 psychologists Jonathan Freedman and Scott Fraser published a study where they asked homeowners to put obnoxiously large and unsightly sign in their yard that said “Drive Carefully.” Understandably the conversion (or compliance) rate was rather low, 17 percent. However, the researchers were able to get the conversion rate up to 76 percent by changing one simple variable. For the group that converted at 76 percent the researchers simply added an additional call to action a couple of weeks earlier. This time the call to action has a much lower cost. They asked the homeowners to put a small sticker in their window that said “Be a safe driver.” Almost all of the homeowners asked, agreed to put the sticker in their window. Then, two weeks later when asked to put the obnoxious sign in their yard, the researchers were able to attain the 76 percent conversion rate. This commitment and consistency principle has been shown in other studies and is clearly seen in the persuasion patterns in Being Conservative’s facebook strategy. (2) “TODAY ONLY” for the t-shirt sales? Why would the organization limit t-shirt sales to one day? According to the scarcity principle it’s to trigger an action. Namely, the purchase of the shirt. And in conjunction with the commitment and consistency principle it allows the organization to leverage this principle while the fan’s previous consistent act, liking the post with the same quote, is still fresh in their minds. While the Internet seemingly makes anything you want available at any time of the day, the scarcity principle is often employed by online marketers to trigger an action. It’s a powerful and consistently fruitful persuasion pattern. Also, notice (3) that they are using an image that many conservatives hold in high regard. Here, the organization is implementing a strategy that instantiates the liking principle and the authority principle. Research shows that persons are more likely to perform a call to action when it’s requested by or associated with someone who is attractive, similar to them, and/or familiar. By leveraging authority figures, social media friends, and other conservatives (page fans), Being Conservative is able to implement this persuasion pattern in a big way.
  2. 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)
  3. Asch already in the 1950’s did this amazingly cool experiment. He showed people the two cards here on the slide and asked, which line is as long as the line on the left: A, B, or C. Well since most people are not morons, almost everyone chooses B (well, in his experiment with 35 people Asch identified one moron, the guy choose A..) However, when we set the experiment up differently so that you can see and hear the answers of nine others before you are asked to give your answer, and if all of the other say, without hesitations, line number A, things change. Suddenly Asch had lots of morons: about 75% of his participants choose A if others had chosen A before them. We just say what other people say. We are
  4. Begin at 4 minutes. In July 1961 (just three months after the start of the trial of German Nazi war criminal Adolf Eichmann in Jerusalem, Befehl is Befehl) Stanley Milgram setup an experiment in which a participant (the Teacher) allegedly had to test another participant (the Learner). The learner had had time to memorize a list of words and the teacher had to test the learner. When a faulty answer was given, the teacher could give an electroshock to the learner to “punish” him for not memorizing the list correctly. The teacher could not see the learner – he was in a different room – but could hear the learner vividly. Every time the learner made a mistake the teacher could crank up the power. Now, the Experimenter – mister Milgram himself – wearing a lab coat and looking as scientific as possible was encouraging the teacher to crank up the dials. They started with a 10 volt shock, next a 20 volt, and increasing and increasing… So, how far did people go? 450 volts was the maximum, and could actually kill someone. Do you think anyone went that far? Yes? Show off hands of people that think as much as 10% went up to the maximum, 20%? 30%? Well 65% of people went up to 450 volts (after hearing screaming and pain from the learner). As long as the experimenter looked serious and authoritive he was able to convince a large majority of people from the street to go as far as kill somebody for not memorizing a word. Without a white jacket and the other cues of scientific authority the compliance rate quickly goes down. Its authority cues that make us do pretty weird things.
  5. 2 minutes, everybody walk to the front. Write down in your own notebook Then shout what you found.
  6. Our picks
  7. Talk about the google add study
  8. Discussion on how to trim down arguments
  9. Does everyone respond in the same fashion?
  10. Does everyone respond in the same fashion?
  11. Important questions
  12. Just a few years ago, the biggest struggle for companies was that they had too little data. Now they have too much. We collect, measure, implement all kinds of tools but in the end, all we see is the result of your customer’s actions. Just the tip of the iceberg. To influence that, you have to get behind the data.