THEORY TO ACTION
Transcript of THEORY TO ACTION
THEORY TO ACTION:
USING PRINCIPLES OF PSYCHOLOGY TO HELP POWER YOUR MARKETING MACHINE
S I X D E G R E E S
This guide is for those marketers, advertisers, communicators and researchers out there who seek
a stronger understanding of why people think and act the way they do. This guide is for content
creators of any experience level interested in understanding a bit of behavioral psychology to help
create content that will motivate your target to action. This is for those searching for ways to get
customers engaged with your brand’s products or services but don’t know how or which marketing
communications will connect and resonate.
Understanding a bit of behavioral psychology and how specific psychological principles can be
applied to marketing can help you truly maximize your marketing dollars. At Six Degrees, we’ve seen
brands realize a cost savings that exceeded as much as 50% of their total marketing budget.
In the following guide, you will learn that specific behavioral tendencies can have huge marketing
implications that can:
• Improve marketing efficiency and effectiveness
• Create more sales-ready leads in a shorter time and with better results
• Boost customer experience and lifetime value
• Dramatically increase ROI and company revenue
The psycho-sensory facts contained in this guide are our first installment of how thinking differently
about brand-building can change the way you do business. Sometimes it’s in the smallest
of changes that companies can win or lose. We try to give companies every advantage and
opportunity – sometimes in areas they never thought possible.
Hopefully you can leverage the principles of psychology and the facts within this guide to help
power your marketing machine.
Stay tuned for more psycho-sensory principles to come!
Regards,
Frank Schab, Ph.D., Psychology
CEO, Six Degrees
Picture Superiority Effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Restraint Bias . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Anchoring Effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Rhyme as Reason Effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
The Endowment Effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
The Halo Effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Post-Purchase Rationalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
The Ambiguity Effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Goal-Gradient Effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Framing Effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
About the Author . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Connect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
THEORY TO ACTION TABLE OF CONTENTS
MARKETING INSIGHTS
Behavioral TendencyPeople tend to notice, process and remember visual
information over verbal information.
Marketing ImplicationInstance: Infographics and ads that use a combination of imagery and words are far more impactful and memorable than words alone.
Picture Superiority Effect
With people’s attention spans dwindling faster and faster, it’s critical that brands present their communications quickly and in a way that’s impactful and memorable. Our brains can process visual content 60,000 times faster than text. And 83% of all human learning occurs visually. Emotional meaning is largely communicated nonverbally as well. So, using images and words together increases your chances for marketing success.
EXAMPLE 1:
InfographicsThe combination of words and images results in a 65%
likelihood that a customer will remember the information
presented. That compares to only 10% recall for words
alone. A good infographic is easy to digest, simple to
understand and interesting to look at.
EXAMPLE 2 :
AdsReally great ads paint a picture with images AND words.
A great example of this is Verizon Wireless and their
coverage area map campaign. The words “America’s
Largest 3G Network” mean very little on their own. But
when the following image was added to compare
competitor AT&T’s network coverage to Verizon’s, the recall
was strong and the campaign was a huge success.
PSYCHO-SENSORY FACT 01:
How long it takes us to make a judgment about someone we just met…
What it takes to change our opinion once formed…
7seconds
Facts for communicators
Psycho-Sensory
Multiple factual data points
Emotional rationale
Social proof Time
Repetition
for communicatorsFACTPsycho-Sensory
How we experience the world…
How long it takes us to make a judgment about someone we just met…
What we focus on…
We remember what we…
What it takes to change our opinion once formed…
multiple factual data points
emotional rationale
Social proof
repetition
time
Sound Only
Sight Only
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Sound & Sight
Sight
All other senses
Sound
7seconds
82%
11%7%
80%
20%
10%
Body Language Tone of Voice Actual Words Used
7%38%55%
Behavioral TendencyPeople are far less resistant to temptation
than they believe they are.
Marketing ImplicationInstance: Click-bait, checkout counter items
and retargeting work extremely well.
Restraint Bias
Online marketing techniques that once provided results have begun to take a back seat to many new trends. Now more than ever, it is critical for brands to rethink their online marketing efforts and consider the new strategies that are proving to generate quality customer engagement and increased online presence.
Such is the case with retargeting. If you’re looking to improve conversion rates, this is a strategy that can help. And click-bait, when used appropriately and in a balanced manner, can help boost your content exposure and increase sharing through social media channels. Search engines that seek to offer valuable content to users will ensure that social shares are given importance and its position within page results will increase.
EXAMPLE 1:
Click-BaitPiquing your curiosity. This is done
by using a compelling question, a
self-referential comment or both to
lure someone into clicking through.
EXAMPLE 2 :
Checkout Counter ItemsPersuading someone to engage in a
quick impulse purchase can be as
simple as placing the temptation in
their way. Such is the case in many
grocery store checkout counters
where quite often “seeing is buying”
in the form of candy, gum and
magazines.
EXAMPLE 3 :
RetargetingInitially, someone may show restraint
when deciding whether or not to
purchase a product or service.
However, there is a tendency with
consumers to eventually click on it
and convert if they see something
enough times.
PSYCHO-SENSORY FACT 02:
MARKETING INSIGHTS
MARKETING INSIGHTS
Behavioral TendencyThe first data point (e.g., price) a person sees influences or
“anchors” how they interpret subsequent information.
Marketing ImplicationInstance: Discounts on inflated prices set comparisons in a customer’s mind and anchor the decision-making process to that comparison.
Anchoring Effect
If you have a special pricing option, it’s important to add context. Thus, if you offer a discount, whether it is compared to the competition or a short-term sale, be sure first to note the “full price” amount for comparison.
If you are a service company and offer tiered pricing, lead with your most expensive option. This higher-priced option will become the anchor that “colors” other options.
Think your customer base might be too savvy to fall for the anchoring effect? Think again. Most behavioral psychologists are in consensus on this fact. We’re simply wired the way we’re wired.
EXAMPLE 1:
BundlingBrands that present services or
products as stand-alone options
against a bundled option. Although a
consumer may only want or need a
couple of options that cost less than
a bundled option, they may actually
choose the bundle due to the
reduced cost of single items within
the bundle with “extras” included.
EXAMPLE 2 :
Subscription ServicesBrands that provide subscription
services may offer either monthly
or yearly commitment price options.
Seeking to push the yearly subscription,
brands will show the monthly price
against the yearly price with one or
more elements missing or slightly
altered. By anchoring their decision-
making process using this information,
consumers begin to see the loss of
value for only committing to a monthly
subscription and choose the yearly
option.
EXAMPLE 3 :
GrouponThe mother of all perceived deep
discount sites. Item after item is
presented accompanied by a large
price tag slashed through with a
much smaller price tag just below it.
PSYCHO-SENSORY FACT 03:
MARKETING INSIGHTS
Behavioral TendencyPeople perceive a statement that rhymes, flows or has cadence as more accurate and truthful.
Marketing ImplicationInstance: Advertising jingles and catchy slogans are highly memorable and “stick.”
Rhyme as Reason Effect
Consider reformulating your value proposition or a key take-away about your product or service into a memorable rhyme. It can also help to apply this tactic to an aspect of your offering that is dubious or unclear.
Clearly it is not advised to incorporate rhyme into a majority of marketing communications, but one can take advantage of this bias by spicing up the brand narrative with sayings and adages that reinforce key ideas and build your targets’ confidence in your brand and its products/services.
EXAMPLE 1:
JinglesSimple and repetitive. They are
designed to infiltrate your memory and
stay there for years, sometimes
popping up from out of nowhere –
whether you like it or not!
EXAMPLE 2 :
Rhyming PhrasesThe phrase “What sobriety conceals,
alcohol reveals” was seen by
volunteers participating in an
experiment. The volunteers viewed the
rhyming option as more true and
trustworthy than the alternative phrase
presented to them: “What sobriety
conceals, alcohol unmasks.”
EXAMPLE 3 :
Rhyming PhrasesThe now infamous phrase used in the
O.J. Simpson trial: “If the gloves don’t
fit, you must acquit.” A simple couplet,
but with it Johnnie Cochran cemented
his defense to the jury and created
one of the more memorable quotes of
all time.
PSYCHO-SENSORY FACT 04:
MARKETING INSIGHTS
Behavioral TendencyPeople will ascribe more value to things
they actually own or “feel” they own.
Marketing ImplicationInstance: Trial promotions and money-back guarantees get consumers to imagine themselves owning a product – thereby ascribing more value to it and experiencing more difficulty giving it up.
The Endowment Effect
When possible, look to add personalization to a product during any phase of the customer ordering process. This begins the connection or sense of pre-ownership of a product and thus assigning it a higher value in a customer’s mind. If a customer does not complete a purchase or a product sits in their online “basket,” it’s advised to set up automated messages reminding them that the product is “almost theirs” with a simple click.
For trial periods of goods and services, brands should look to content marketing and the use of social media to help deepen their connection with consumers. Brands should generate opportunities for consumers to share experiences and provide feedback across social media platforms. They should also generate blogs, guides and other content that helps customers get the most out of a product or service in hopes of strengthening positive feelings about the brand.
EXAMPLE 1:
Auction SitesLike eBay, the longer a person remains the top bidder for an
item (they have envisioned themselves as the rightful owner
for longer), the more aggressively that person will be when
someone seeks to outbid them.
EXAMPLE 2 :
Trial Offers and Return GuaranteesThese both allow consumers to “own” a product without
any friction – or upfront cost in the case of the trial offer.
Building up a stronger connection and placing a higher
perceived value on a product once in their possession,
a consumer is often highly reluctant to return it once the
trial is over.
PSYCHO-SENSORY FACT 05:
SAT
ISFA
CTION GUARANTEEDebay
MARKETING INSIGHTS
Behavioral TendencyPeople tend to extend the characteristics and attributes of
a leading product or an authority figure to associated but
unrelated products and brands.
Marketing ImplicationInstance: Product endorsements and
sponsorships as well as high-reputation
products can be very valuable.
The Halo Effect
Consider leveraging the halo effect by developing a high-reputation product (e.g., Viper for Dodge) for the “rub-off” on your other products.
Also, if budget allows, consider getting a celebrity to endorse your product or brand. Just be aware that celebrity endorsements can quickly turn negative if a celebrity misbehaves (e.g., Tiger Woods).
EXAMPLE 1:
Famous PeopleA famous and desirable person can bring a lot of credibility
and desirability to a brand. Consider the impact of Michael
Jordan on brands like Nike, Gatorade, Hanes and more.
EXAMPLE 2 :
iPod
iPod was THE halo product that put Apple on everyone’s
mind. The iPod lifted perceptions of all Apple products
offered at the time.
PSYCHO-SENSORY FACT 06:
MARKETING INSIGHTS
Behavioral TendencyPeople naturally feel post-purchase remorse. During this time they
are more likely to return or otherwise reverse their purchase.
Marketing ImplicationInstance: Emails, texts, direct mail, helpful guides or
other post-purchase marketing reinforcements are
smart tactics to fortify a sale.
Post-Purchase Rationalization
If not already in place, consider developing post-purchase reinforcement tactics such as encouraging social media sharing of a customer purchase and direct follow-up and decision support to foster post-purchase rationalization and prevent or minimize buyer’s remorse.
EXAMPLE 1:
Social ShareWhen customers are encouraged to share their purchase
with friends on social media, this helps them reinforce the
“validity” of their decision right after purchase.
EXAMPLE 2 :
Follow UpBrands that follow up with customers by phone, email or
otherwise strengthen the impression in the mind of the
customer about what a good decision they made in
purchasing the product/service and why.
PSYCHO-SENSORY FACT 07:
MARKETING INSIGHTS
Behavioral TendencyPeople naturally seek to avoid something
they don’t fully comprehend.
Marketing ImplicationInstance: Simplifying, organizing and visualizing
brand information creates a stronger recall and
general understanding of a product/service.
Ambiguity Effect
Assembling good data and strong arguments about why your product or brand is superior is just half the battle. You then need to focus on communicating that information in a way that is simple and easy to digest by your target audience. This is especially true for more complex products and brands. Also, avoid overcomplicating the product or brand itself.
EXAMPLE 1:
Single Feature FocusWhen Volkswagen introduced the original Beetle to the U.S.
market in the early 1950s, they chose to emphasize one
feature of this novel car rather than overload customers with
lots of information about the car’s other unique features. By
1973, the production of Beetles had passed 16.5 million and
officially became the world’s most popular car.
EXAMPLE 2 :
Loyalty FearSometimes a customer may become dissatisfied with,
say, their cable provider. However, even when deeply
dissatisfied, the perceived risks of switching to another
cable provider company are often greater than the
potential gains of making the switch.
PSYCHO-SENSORY FACT 08:
MARKETING INSIGHTS
Behavioral TendencyThe closer people are to a goal, the more
effort they will exert to get there.
Marketing ImplicationInstance: Rewards and loyalty programs boost
customer visits and spend while simultaneously
strengthening brand awareness and trust.
Goal-Gradient Effect
When considering how to create greater customer engagement or purchase likelihood through loyalty or rewards programs, consider structuring offers in such a way that customers feel they are getting a jump-start. Specifically, reward the customer upfront so they feel like they’re already well on their way to achieving their goal with you.
Also, be sure to promote this out-of-the-gate jump-start so your customer can begin envisioning the goal before the process has even begun.
EXAMPLE 1:
Loyalty ProgramPeople who are offered the 12th sandwich for free but are
given credit for two sandwich purchases from the start are
more likely to buy the first nine sandwiches than if they
were offered a free 10th sandwich without any starting
credits.
In both cases, customers have to buy nine sandwiches
before getting a free one.
EXAMPLE 2 :
Rewards ProgramInternet users who rate songs and receive reward
certificates for their efforts tend to visit the rating website
more often, rate more songs per visit and persist longer in
the rating effort as they approach the reward goal.
PSYCHO-SENSORY FACT 09:
E A R Nr e w a r d s
MARKETING INSIGHTS
Behavioral TendencyPeople prefer positively framed information over negatively framed
information, even when the end result is exactly the same.
Marketing ImplicationInstance: Use specific language in advertising
that taps into a person’s desire to avoid loss or
a possible negative outcome.
Framing Effect
The words you use and the way you frame your communications will have a direct impact on how your customer will react. Consider framing things in a positive light so that your customers will always see a clear gain.
How you frame your sensory and verbal messages has a direct impact on how your customers will react. Always seek to frame your data, messages and communications in the most positive manner possible.
EXAMPLE 1:
Negative WordsPeople overwhelmingly prefer the package of ground
beef on the left (75% lean) over the same package on the
right (25% fat) because “fat” is a negative word.
EXAMPLE 2 :
Low-Risk AlternativeAn otherwise identical medical procedure will see its
appeal vary dramatically depending on how the statistical
outcomes are framed. Positive wins by a wide margin.
PSYCHO-SENSORY FACT 10:
91% survivability rate vs. 9% mortality rate
75% LEAN
25% FAT
Frank Schab is CEO of Six Degrees – a unique brand-building agency that combines psychology-
based tools and techniques with sensory branding methods to achieve better results for companies.
Prior to co-founding Six Degrees in 1999 along with its signature approach to brand-building
called “psycho-sensory,” Frank held positions at General Motors and Pfizer, served as a Managing
Partner at Interbrand New York and VP of Global Brand Research at Opinion Research Corporation.
His distinctive brand-building work in various sectors including hospitality, medical device,
pharmaceutical, automotive and technology has taken him to 17 countries on four continents.
Frank holds a doctorate in psychology from Yale University.
ABOUT THE AUTHOR
SIX DEGREES
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