Barbara KoopDirector Customer Experience & Expert Services

Get behind your data

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Video

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Cognitive Biases

A cognitive bias is a pattern of deviation in judgment that occurs in particular situations, leading to what is broadly called irrationality.

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Framing Effect

The framing effect describes that presenting the same option in different formats can alter people's decisions.

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Framing Effect

Source: Prof. Dan Ariely

68% 16%

32% 0%

84%

Total: $ 8012 Total: $11444

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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.

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Anchoring

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Anchoring

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Behavior = Motivation * Ability * Trigger (BJ Fogg)

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Behavior = Motivation * Ability * Trigger (BJ Fogg)

- low cost of liking- existing motivation- hot triggers

Source: Robert Neal.com

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Putting hot triggers in the path of motivated people

1. Commitment2. Scarcity3. Authority

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Persuasion: So.. What makes people tick?

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6 Principles of Persuasion (Cialdini)

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Social Proof

Asch conformity experiments (1950s)

Authority

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65% of people went up to 450 voltsCues of authority were essential

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How is that applied?

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Popularity Lists: influence of numbers

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Scarcity (in availability)

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Scarcity (in time)

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Find the persuasion arguments

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Scarcity

Social proof

Social proof

Consistency &

Commitment

Social proofFraming

Liking

Social proof

Scarcity

Scarcity

Social proof

Consistency &

Commitment

Social proof

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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.”

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The results

Clicks on multi-principle ads: .18 %

And on single principle ads: .36%

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So how can less be more?Scarcity

Social proof

Social proof

Consistency &

Commitment

Social proofFraming

Liking

Social proof

Scarcity

Scarcity

Social proof

Consistency &

Commitment

Social proof

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People are different

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Not everyone obeys the laws of social proof

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There are people that question authority

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People are consistently different

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So..Persuade individuals rather than a group

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We should differentiate & select..

But how?

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The goal of persuasion is to influence someone’s attitude or behavior.

We think we know about our customers..

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The key to persuasion is to understand and influence motivations behind the

data..

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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

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The goal of persuasion is to influence someone’s behavior

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A Persuasion Profile

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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

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Updating the profile

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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

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Over and over again…

Normal page:Social proof:Authority:Scarcity:

Effect

First page served:

Effect

Second page served:

Effect

Third page served:

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Increasing chance of conversion for each customer individually

Effect

Third page served:

Normal page:Social proof:Authority:Scarcity:

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PersuasionAPI..

How does it work for you?

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Implementations in PersuasionAPI

Variant 1 “Bestseller”

“80% of people..”

“One of our most popular”

Authority

Social proof

Scarcity

Original

Strategies Implementations

Variant 2

Variant 3

Variant 4

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The PersuasionAPI advice

We will return the best strategy given the person, and given the previous behavior

Variant 1Authority

Social proof

Scarcity

Original

Implementations

Variant 2

Variant 3

Variant 4

Strategies

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The PersuasionAPI advice

• You choose the implementations

Variant 1Authority

Social proof

Scarcity

Original

Implementations

Variant 2

Variant 3

Variant 4

Strategies

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StrategySets

Adaptive models

Baseline

PersAPI

80%

20%

Variant 5

Variant 1Authority

Social proof

Scarcity

Implementations

Variant 2

Variant 3

Variant 4

Strategies

Original

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PersuasionAPI in action

authority scarcity social proof

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PersuasionAPI in email - landingpage

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PersuasionAPI on email subjectline

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.”

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Booking.com increases conversionover 10% and scale up to 20Mpersuasion profiles worldwide

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Based on a true story

Short listed as marketing book of the year by PIM in 2013

Questions?

Barbara.Koop@Webpower.nl