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11/19/2017

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NEUROMARKETING, BEHAVIORALMARKETING, AND DECISION SCIENCE

AS APPLIED TO NONPROFITS

GEOFFREY PETERS

PRESIDENT, MOORE DM GROUP

Five minutes on how we got hereand why it matters

• Started in 2009 with TV show “Lie to me”

• 2009-present: Research and reading on micro-expressions and body language and behavioral economics. Then reading published research on neuromarketing to see applicability to fundraising.

• 2013 - Attended class on commercial neuromarketing

• 2010 – present: DR testing of these ideas - initial results positive

• 2015 - Built a lab devoted to fundraising – ongoing verifying lab results with “live” testing

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Old Measurement Technology

Focus Groups & Survey Research:- What are you planning to do?- What did you do?

Direct Response Results- What happened?

Direct Response Testing- Which won?

But knowing why it won was purely speculation.

Increasin

g Confid

ence an

d Accu

racy

New Measurement Technologies

•Electro Encephalograph (EEG)

•Magnetoencephalography (MEG) (fast imaging)

•Functional Magnetic Resonance Imaging (fMRI)

•Eye scan tracking (Heat mapping)

•Reading micro expressions (“Lie to me”)

• IRT (Implicit Reaction Time)

•Behavioral Marketing Testing

Why do we care why A beats B?

• What does better understanding why one stimulus beat another stimulus do to help us?

• Allows generalizing – if A beat B because people were more engaged with A, what other engagement might work.

• Better testing – not “throw it up against the wall and see if it sticks” – more precise hypotheses to be tested

• Allows us to explain, with hard evidence, to program staff why storytelling beats programs descriptions

• Allows us to test donor centric approaches and, with hard evidence, show that donor centricity works.

• Identifies blocks to communication with donors

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The Subconscious Mind90% Choices & Decisions

made every day are made without

any conscious thought

Research Study

Subjects were asked to read out loud the last two digits of their social security number.Then they were asked what price they would pay for a wireless computer keyboard:

* Ariely, “Predictably Irrational”

Research Study

Subjects were asked to read out loud the last two digits of their social security number.

Then they were asked what price they would pay for a wireless computer keyboard:

* Ariely, “Predictably Irrational”

Last 2 SSN# Willing To Pay00-19 $16.0920-39 $26.9240-59 $29.2760-79 $34.5580-99 $55.64

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What is Oxytocin and why do we care?

• Oxytocin is a powerful dopamine-system neurotransmitter (neuropeptide) that calms the heart and was originally thought to be secreted only by women who were breastfeeding.

• Further research showed that while women tend to produce greater variances in oxytocin, it is produced in men as well.

• Increased presence of oxytocin is associated with “positive” emotions such as trust, love, generosity, compassion and empathy.

OK but how does Neuro-Fundraisingactually work with real donors?

Oxytocin and CharityIn a laboratory setting a control group was given an exercise where they were rewarded with money and then administered a placebo. The test group did the same exercise and were rewarded and then administered oxytocin.

Both groups were then asked if they wanted to give some of the money they got to charity. The test group with externally introduced oxytocin increased donations to a charity by 57%.

While naturally produced increased levels of oxytocin were significantly less in response to advertising stimuli, there was still a positive correlation with increased donating.

Paul Zak’s study of Oxytocin in relation to pets• Proximity to and interaction with a dog (i.e. playing

with a dog) increases oxytocin in pet owners but not in non-pet owners.

• Proximity to and interaction with a cat does not do the same.

• Interestingly the dog’s oxytocin levels increase sharply when they play with their owners

• Like humans when oxytocin increases in dogs it shows up as increasing trust, liking, calm, and generous behavior.

Implications:Mailing dog owners pictures of cute dogs is likely to increase oxytocin and thus generosity even if the appeal is not on behalf of animals and even more so if it is.

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“A dog owner and pet were left to interact for 30 minutes. Owners whose dogs spent the longest time looking into their eyes showed a burst of oxytocin . . . .”

Oxytocin and Charity

Oxytocin researcher Zak has found that tactile contact “touching” primes the brain to oxytocin.

Two groups were asked to exchange “lost” money. One had a 15-minute massage prior to the exchange and the other just waited 15 minutes. The brains of the massaged groups released more oxytocin than those who didn’t receive a massage. That group returned 2.5 times as much “lost” money to a stranger as the control group.

The Subconscious MindMost decisions are made in the subconscious!

TriggeringExample – Song or music

‐ Trigger memories

‐ Emotions – Good or Bad

‐ Take action

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• Research by Sarina Saturn, an assistant professor of psychology at Oregon State University, has found that oxytocin can increase not only eye contact and trust levels but charitable behavior as well.

• A rush of oxytocin can sway people toward doing generous acts, including giving to charity.


So we are clearly looking for ways to naturally increase the production of greater than normal amounts of oxytocin in donors so as to “help” them become more charitable.

We turn to Neuro-Fundraising to find out how to do this:• What images garner attention and cause empathy?

• What types of copy engage readers and trigger emotional responses?

• What do typical donors focus upon and what causes emotional and empathetic reactions?

Manipulation is when I convince you to do something that benefits me.

Motivation is when I convince you to do something that benefits you, me, and others.

Manipulation vs. Motivation

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Implications for FundraisingThink about evolutionary biology. What do the vast majority of humans share? The experience of the dyadic relationship with their mother – breastfeeding slows the heart rate in nursing mothers and is thought to help form a bond with their babies. For babies it provides warm comfort from food and skin to skin contact. Later it provides eye contact and still later as the child is beginning to explore its tactile world the child focuses on its own as well as its mother’s hands.

• What pictures provoke the most emotional response? A closeup of an infant’s face and the infants eyes.

• What does heatmapping show is the first thing looked at in a picture of another human being? The eyes. Second is the hands.

The literature reviews and preliminary testing led us to develop a lab where we could do our own real testing of

fundraising stimuli

What does the lab test:• Direct mail packages• Photos• Call outs, Johnson boxes, tease copy• Websites, home pages, landing pages, donation pages• DRTV ads, PSAs, Video clips• Donor/Prospect beliefs about the brand

What do we test?

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What do we measure?

22Icon made by FlatIcon from www.FlatIcon.com

Eye‐tracking: Where did the respondent look, where did they fixate?

Facial Analysis: Was the respondent’s emotional valence positive/negative?

GSR: What was the intensity of the respondent’s emotional engagement?

Self‐Report: Does the respondent’s evaluation match IRT evaluations?

IRT (Implicit Response Test): What does the respondent truly believe?

Neuro-Fundraising Mobile Lab

Show me some examples!!!

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Removing Visual Barriers

By removing the dollar sign on the suggested monthly donation we take away the visual that tells the viewer this is money.

In doing so we remove the trigger to the part of the brain that stops people from calculating value.

Helps keep the experience emotional.

Center for Hospitality Research Reports – May 2009 Sybil S. YangSheryl E. Kimes Ph.D., Cornell University Follow Mauro M. Sessarego

Visual Barriers

Visual Barriers Case Study

Example: Remove $ signs– Psychological effect:

removes rational from decision making

– In this test: • Response rate 4%• Average gift 3.5%

• Gross income 7%

Eye Tracking Heat Map

Used here in the analysis of a Landing Page

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Campaign Landing Page Findings

Let’s look at DRTV as an example

DRTV program

What you see is just the tip

DRTV program

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What have we learned?

Lower Third Example

Visual Attention – Heatmaps (Overall)

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Notes:Across the presentation, L3 visual attention increased significantly when Alec explicitely asked for donations.

Visual Attention – Heatmaps (Overall)

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Limiting visual distractions when showing URL

2% Attention/duration ratio 90% Attention/duration ratio


Limit Distractions – End Slate

Raise Average Gift - Priming

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Raise Average Gift - Priming

Emotional Intensity – Human Connection

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20%

30%

40%

50%

60%

70%

80%

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 110 115 120

HANDS CINDY REBA

52 – 70 Seconds 47 – 65 Seconds 71 – 86 Seconds

CindyHands Reba

19,20,21

Eye Tracking Glasses

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Mail – what do donors read?

IRT – Brand Position and Reason to GiveWhen looking at the graphs, you will see the following information:

YES/NOThe Left Side – this shows the percentage of respondents who selected“yes” (they thought the statement was true).

The Right Side – this shows the percentage of respondents who selected“no” (they thought the statement was not true).


COLORSRED shows that the respondent was NOT certain of their answer (yes/no.)For example, they may have answered yes, but were clearly not certain of their

answer.

YELLOW shows that the respondent was neither certain nor uncertain of their answer (yes/no.) For example, they may have answered yes, but were uncertain of their answer.

GREEN shows that the respondent was very certain of their answer (yes/no.)For example, they answered yes and truly believed their answer.

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LSS SCOREThis number is a ranking system from the test vendor showing the certainty of the respondent’s answer. The higher the number, the more certain the respondent is of the statement and their answer.

They may have answered yes to a question, but they were not certain their answer was true. Or they were very certain it was true.

IRT – Brand Position and Reason to Give

IRT – Brand Position and Reason to Give

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Research Study• Millward Brown used fMRI to show how our

brains process paper-based and digital marketing in different ways.

• Paper ads caused more emotional processing.

• USPS (OIG) study with Temple Univ. showed subjects processed digital ads more quickly but had stronger emotional response to physical ads and remembered them better. Physical ads stimulated the part of the brain associated with value and desire for featured products.

“Using Neuroscience to Understandthe Role of Direct Mail”

USPS, Office of Inspector General, RARC Report WP‐15‐012

Research Study

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Canadian Post Research Study• Mail is easier to understand than digital messaging.

According to the study, “direct mail requires 21 percent less cognitive effort than digital media, suggesting that it is both easier to understand and more memorable.” In follow-up surveys, messages conveyed via direct mail were recalled better (75 percent) than those conveyed digitally (44 percent).

• Mail is More persuasive. Direct mail’s ability to induce those exposed to it to act was significantly better than digital media’s. “Direct mail’s motivation score was 20 percent higher than digital’s score,” reported the study. Interestingly, adding scent and sound both had a strong impact on motivation. “Sensory stimulation is a proven tactic in retail,” reported the study, “a consumer’s likelihood to purchase is in fact correlated with the number of items they touch.”

• Mail is More visually efficient. While subjects spent more time viewing digital messages than they did direct mail messages, this wasn’t necessarily a good thing. “When considering its higher cognitive load and lower motivation response than direct mail, this suggests that the extra time spent with digital media is not evidence of enjoyment, but rather the need to better understand the message.”

“New Canadian Neuromarketing Study Validates Effectiveness of Direct Mail”

https://www.canadapost.ca/assets/pdf/blogs/CPC_Neuroscience_EN_150717.pdf

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Research StudyResearch Study

Placing the following statement at the end of an ad caused trust scores to jump as much as 33%:

“You can trust us to do the job for you.”

The statement alone caused increased scores in areas of fair pricing, caring, fair treatment, quality, and competency.

Gladwell, “Blink: The Power of Thinking Without Thinking”

Implications for FundraisingImplications for Fundraising

If one of the most important brand values for charities is trust, how often do we use tag lines on our logos or other non‐mission related

cues that emphasize that value?

Do we offer a money‐back guarantee?

Do we use tag lines like “A charity you can trust!”

Do we use third‐party endorsements that would enhance credibility?

You are all familiar with how commercial marketers use pricing like $9.97 vs. $10.00 or $499 vs. $500.

Why does that seem to work? Are we really fooling the consumer who doesn’t know that a $1 difference on a price of $500 is a mere 0.2% difference.

It turns out that it isn’t the closenessto the next incremental number; it isthe precision of the number that the consumer is keying on.


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In an auction consumers were asked to estimate wholesale price of items:

While these prices are nearly identical, Group B estimated a significantly lower wholesale price.


* Wray, “Why things cost $19.95”

Group Starting Price

A $4,988

B $5,000

C $5,012

When using “price points” in copy and in ask strings, avoid even numbers and use numbers that are in the same range but seem more precise.

They are likely to have greater credibility.


Offer to subscribe to the Economist (Choice A)

$59 – Internet only subscription (68 chose)

$125 – Internet and print subscription (32 chose)

Offer to subscribe to the Economist (Choice B)

$59 – Internet only subscription (16 chose)

$125 – Print only subscription (0 chose)

$125 – Internet and print subscription (84 chose)

Predicted Revenue:$8,012

Predicted Revenue:$11,444


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Buyers often avoid the “Cadillac” as well as the “Yugo”.

Add a lower and very much higher (especially higher) price point in copy and ask strings to cause donor to “compromise” on a higher choice.

Use circles on ask strings or other clues to help donors make choices thus reducing the complexity of their analysis.



Singapore Airlines not only uses consistent visual images in its branding, they also incorporate the same scent in the perfume of their flight attendants, in their hot towels, and elsewhere and their flight attendants wear fine silk uniforms.

Singapore Airlines is frequently identified as one of the top airlines by consumers.

Appeal to All of the Senses

Consumers were asked to evaluate pencils – some were scented with tea tree scent and others we unscented.

They remembered the brand attributes (e.g. “contains superior graphite lead”) of the scented pencils better than the unscented ones.


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Lindstrom proposes that smell bypasses conscious thought by creating associations with memories and emotions.

He estimates smell generates 75% of our emotions.

A 1935 study by Laird showed that 80% of men and 90% of women report vivid memories triggered by odor.


2 identical pairs of Nike shoes were evaluated by consumers: one in a room with no scent, and one in a room with a floral scent.

84% of subjects in floral‐scented room evaluated the shoes as superior.

Nightclub patrons danced longer and reported a better time and better music when the club was pleasantly scented.


Starbucks eliminated the breakfast sandwich whose smell overpowered that of fresh coffee until they could formulate a recipe that didn’t smell.

A professor teaching two classes of molecular biology sprayed Brut cologne on the wall in one class and not in the other.

At the final exam he sprayed Brut on the wall for all students. The Brut‐scented lecture students did better on the final.


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Would the smell of freshly laundered linen in an appeal for a “clean place to sleep” for orphans increase response?

Would the smell of fresh oven‐baked goods in a food bank appeal increase response?Would the odor of garbage make more memorable the appeal for support to get homeless out from living in a garbage dump?


How can a charity use odors toenhance their fundraising?

A wine store alternately played French and German background music. Salesof French and German wines increased significantly with the playing of the related music.

A bank added classical music in the background. It caused a 233% jump in customer perception of the bank as “inspiring.

Gershwin’s “Rhapsody in Blue” is forever associated with United Airlines (at least in the U.S.)


Have you tried musical Christmas cards?

When using streaming video or DRTV ads, does your charity brand have a recognizable sound associated with it?

Do you swap out musical cues based on the whim of whoever is producing your branding? Or do you require consistency with sound just as you do with color and typeface of your logo?

Does your website come with sound and music and not just images?


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Subjects were given job candidates resumes on a clipboard. Some received a light clipboard and others a heavy clipboard.

Those given a heavy clipboard judged the applicants to have a more serious interest in the position.

“Heavy” often is a synonym for “serious.” Think of the idea that a senior employee should have a degree of “gravitas.”

Ackerman, et. al., “Incidental Haptic Sensations Influence Social Judgments and Decisions”


You are all advanced (experienced) fundraisersYou are all advanced (experienced) fundraisers

How many of you have second guessed your art department on issues of design?

What would happen if you went into your art department and asked them the meaning of the ratio 1:1.618?

Does the fact that we refer to it as “art” cause us not to think about it scientifically?

How many of you do pure “art” tests as opposed to package testing?

Artists, architects, painters, designers, and sculptors know that using the “golden ratio” of 1:1.618 produces a more pleasing result to the human brain.

This is also true in science, math and biology. Mathematicians refer to this as phi or the ratio between number pairs in the Fibonacci sequence.

Biologists see this in the proportions in Nautilus shells and leaves.

Public Library of Science: ”Is the beauty of a sculpture in the brain of the beholder?”


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Public Library of Science: ”Is the beauty of a sculpture in the brain of the beholder?”


Neuroscientists using fMRI find evidence for this same effect.

Different areas of the brain (the insula) light up when the ratio is followed vs. when it is not. This area is also related to emotion.

Not everything must slavishly follow the height to width ratio of 1:1.618, but significant items to which you wish to draw attention and produce an emotional effect might be better off using that ratio.

This is particularly true when the image is only to be displayed momentarily (e.g. in scrolling photos)

SquarePhi ratio rectangle


Some Closing Lessons

The two visual features to which the brain pays the closest attention are faces (particularly the eyes) and hands. Use them in photographs.

Fully ¼ of the human brain is devoted to translating images.

Sadness, as an emotion, is not processed like pain. It can therefore be tremendously effective if you can help people make the journey from sadness to happiness or reward by their involvement or action.

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Empathy, as an emotion, is processed by the same part of the brain that processes consumption of food or drugs and engaging in sex.

How are you using empathy in your copy?


Because of the neuroscience principle of mirroring, one of the strongest things you can show is a visual of beneficiary success especially if you can directly or indirectly credit the charity (through its employees or volunteers) such as a scene of a happy beneficiary hugging and thanking an employee or volunteer.

To learn more about Neuro-Fundraising

http://www.thenonprofittimes.com/neuro/

A series of video lessons on Neuro‐Fundraising for both direct marketers and major donor solicitors sponsored by and brought to you by The NonProfit Times

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Geoffrey [email protected]

301-675-7741

Questions???

Thank You!

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