Category Archives: Psychology

Does The Entourage Effect Impact Loyalty Schemes?

Does Exclusivity Sometimes Backfire?

Many organisations offer their best customers exclusive rewards to acknowledge their value and to reduce churn amongst their most valuable customer segment. The entourage effect suggests this exclusivity can sometimes harm the effectiveness of a scheme where a VIP customer has a strong entourage.

For example, in online gaming  VIP players are usually managed by a dedicated team of customer services staff who monitor their behaviour and will speak to them on a regular basis. These  VIP schemes offer special promotions, free gifts (e.g. iPads), cash-back for large losses and they are  invited to exclusive VIP parties and events.

Image of Gala Bingo VIP scheme page
Image Source: Gala Bingo

The exclusivity of VIP events and promotions is supposed to enhance the customer’s personal feelings of status. This is based upon the principle of scarcity which suggests that by restricting the availability of a reward it increases its perceived value.

However, research published in the Journal of Consumer Research (2013) suggests the existence of an entourage effect which means VIPs may feel higher levels of status when they are able to share their experience with their followers.

What is the entourage effect?

The entourage effect results in a heightened sense of status when a VIP shares other-wise exclusive benefits with a wider group of connected individuals. The effect appears to be driven by an increase in feelings of connection with their guests.

What causes the entourage effect?

Humans are highly connected and “super social apes” (Herd, 2009). This means people are often heavily influenced by the behaviour and opinions of others. Further, possessing status is a strong human motivation (Fiske and Taylor 2008; Taylor and Brown 1988) and as a result people frequently undertake behaviours for the purpose of signalling information about their actual or desired status. This is partly why people buy premium brands, large houses and expensive cars.

Why do brands treat VIPs differently?

Studies have indicated that rewarding customers does increase their perceived status (Dre’ze and Nunes 2009) and results in stronger brand loyalty and customer satisfaction. As the majority of an organisation’s revenues are often generated by a small proportion of customers (see the Pareto principle), it is important to reward and retain VIP type customers.

However, many VIP schemes allow customers to share these exclusive benefits by inviting a guest along. But the danger here is that this could be perceived to reduce the exclusivity of the experience and thus the overall attractiveness of the benefits. This is based upon the scarcity principle which normally suggests that the more exclusive an experience is the greater its perceived value and the higher is its potential for signalling one’s status (Bourdieu 1986).

The entourage effect challenges this theory when it comes to VIP style reward schemes. The research suggests this is not because VIPs don’t want to feel lonely, that they desire public visibility of their status or want to make people feel indebted to them. No, the research suggests that the entourage effect is due to our desire for a heightened feeling of social connection.

Implications for reward schemes:

  1. Avoid making loyalty schemes too exclusive that it prevents VIPs from sharing experiences with their entourage.
  2. Allow VIP customers to add guests to events to elevate their perceived status. The research suggests this provides companies with an opportunity to increase loyalty and sales from their most valuable customers.
  3. The entourage effect does not apply to the notion of a “trophy wife” – a relatively scare person who increases the status of the other individual in the relationship. It’s the individual’s duty to support the trophy wife (Baumeister and Vohs, 2004) whilst it is the brand’s responsibility to develop and maintain the relationship with the entourage.
  4. See VIPs as groups rather than individuals. As people are social creatures it is important to treat VIPs as a group rather than a set of unconnected individuals. Taking this approach is more likely to generate long-term benefits in respect of improved retention and increased customer life-time value.

Conclusion:

The entourage effect demonstrates the importance and power of our social connections in potentially elevating our status within our in-group. Even when this reduces the exclusivity of an experience our social nature offsets any loss in scarcity by increasing our feeling of social connection.

However, the research does indicate that the entourage effect is significantly reduced when there is a large physical distance between the VIP and their entourage, if the treatment is not preferential or if the guest also has a legitimate right to attend the VIP event themselves.

Overall though, the entourage effect indicates that it is beneficial for VIP loyalty schemes to allow members to invite guests to events. Loyalty schemes should make allowance for the entourage effect by encouraging VIP customers to pre-register close friends or relatives for events and promotions to enable them to fully benefit from the entourage effect.

Thank you for reading my post and I hope you found it useful. Please share using the social media icons below if you like this post.

You can view my full Digital Marketing and Optimization Toolbox here.

To browse links to all my posts on one page please click here.

  • About the author:  Neal provides digital marketing optimisation consultancy services and has worked for  brands such as Deezer.comFoxybingo.com, Very.co.uk, partypoker.com and Bgo.com. He uses a variety of techniques, including web analytics, personas, customer journey analysis and customer feedback to improve a website’s conversion rate.

 

Why Are Silos Killing Your Growth Strategy?

Is a silo mentality killing CRO?

Conversion rate optimization (CRO) is on a roll. Companies are falling over themselves to recruit CRO specialists and managers as part of their growth strategy. They may not all have the same responsibilities but they are usually expected  to deliver sustainable growth through optimisation of user journeys. This often includes developing and coordinating  a roadmap for A/B and multivariate testing.

Often though CRO is implemented too narrowly without an effective plan. For example when I was employed in a CRO role I was asked to create a testing roadmap within a couple of weeks without any budget for research or usability testing. It was as if I was the oracle for CRO. However, CRO is a business strategy and not the sole responsibility of an individual department or business unit.

This misguided view of CRO  does not lead to sustainable business growth as it  soon runs out of steam once the obvious things to fix are exhausted. Further, cro requires collaboration across departments to draw in a diverse range of skills and expertise.

Unfortunately in many  organisations CRO suffers from the same silo mentality which results in slow, bureaucratic business decision making and a culture which encourages waste and strangles innovation.  Despite a desire to improve business efficiency the basic building blocks of most organisational structures are still the traditional functional silo.

Why does this matter for CRO?

For CRO to deliver business growth it needs to be embedded in the culture and requires a collaborative approach to business change. For example testing needs to integrate with the product roadmap, reflect business goals and inform marketing strategy. Companies which operate within rigid silos find CRO fails to deliver sustainable growth because the silo mentality discourages collaboration and cultural change.

“The great defect of scale, of course, which makes the game interesting—so that the big people don’t always win—is that as you get big, you get the bureaucracy. And with the bureaucracy comes the territoriality—which is again grounded in human nature.” – Charlie Munger – Berkshire Hathaway

Silos also prevent organisations fully exploiting the collective knowledge of the customer that is held across the organisation. Silos make it more difficult for customer data and knowledge to be effectively shared to inform decision making that creates the most value for the customer and organisation.

Image of Kodak logo

Kodak was organised into product silos and in the 1970s it controlled around 90% of the film market and 75% of the camera market. They invented the digital camera in 1975 but believed they were in the business of making film because their largest operational silo reinforced this perception to defend its own self-interests.

Kodak went bankrupt in 2012 after selling its digital camera business to save the film business.

Why do silos form?

Silos are a natural reaction to organisational growth and greater complexity. Companies create specialist functions in response to business expansion and increased work load. Silos facilitate the building of expertise and knowledge for specific business purposes.

Our herd instinct encourages people to become strongly attached to those within our immediate group. We form emotional bonds with people we have shared experiences with. This can result in people putting the needs or goals of their business unit ahead of the objectives of the organisation as a whole.

Sheep on the road image
Source: FreeImages.com

As projects are often resourced and financed from within a function means that outcomes and insights are not always shared outside of the business unit concerned. This can lead to both physical and emotional obstacles to collaboration between business units. In the worse-case scenario this can result in conflict between departments as they aim to protect their own interests rather than those of the organisation as a whole.

Why do silos harm growth and innovation?

Silos create competing subcultures within a business. This limits ways of working and communication between business units, but it also reduces social interaction and trust between people working for the same business. Digital silos disrupt information and knowledge sharing which is essential for CRO.

This is why large organisations can be bureaucratic and slow to adapt to both internal and external demands for change. This often damages the customer experience because it becomes difficult to respond swiftly to changes in customer needs or preferences.

What problems do silos cause for CRO?

Fragmented vision:

Unless CRO is part of the culture of the organisation functional business units will continue to create their own goals and strategy for optimising the user experience or conversion rates. Apart from duplicating effort and resources, this results in the vision of the organisation becoming fragmented. This creates conflict and dilutes the effectiveness of customer focused strategies.

Inefficiency – silos create friction and mistrust

The conflict created by business units having their own vision for optimisation damages trust between functions and often causes inefficiencies as departments fail to share knowledge and duplicate tasks. I’ve seen this result in brands replicating successful A/B tests conducted by another business unit rather than acknowledging and learning from the test. In addition priorities are set according the business unit’s goals rather than what is important for the business as a whole.

With CRO this often results in experiments being delayed due to a lack of design or development resource. Unfortunately such delays can make tests less relevant or obsolete in some cases as product releases change the default experience.

Image of Sony HQ in Japan

Sony case study:

In 1994 Sony reorganised into eight stand-alone business units. Initially this led to cost savings and an improvement in profitability. But managers also began trying to protect their units, not just from competitors but also from other departments. Sony’s business units became less willing to share experimental ideas or rotate the brightest staff between departments.

Collaboration stopped and nobody wanted to take risks. In the late 1990s when the Internet began to disrupt the distribution of music each Sony department tried independently to experiment with new solutions. However, none collaborated with the Sony Music Entertainment Group (previously CBS records) because SME refused to cooperate with any department as its officials were terrified that digital music would undermine revenues from records and CDs.

Image of Sony Walkman

Apple on the other hand worked as one cohesive company with one profit and loss. Engineers at Apple developed a two-step solution to allow users to download music from the internet and then listen to them on a portable device.

Apple  also developed the iStore to provide music groups with some royalties and designed the platform so that it could be accessed by anybody using any platform. Sony’s digital music system on the other hand relied on proprietary technology that had to use their own platform. This limited Sony’s ability to compete with Apple in both the music download market and the portable music player market which Sony had practically created with the Walkman.

In 2001 Apple launched the iPod and has since dominated the portable music player market. Sony failed to take a significant share of a market it once led with the Sony Walkman.

False assumptions:

Silos are very good at perpetuating myths based upon inaccurate perceptions that circulate without being challenged in an individual business unit. This is because a silo mentality encourages people to become over-reliant on information circulated from within their own department.

I experienced this one time when I challenged why the term “CAPTCHA” was being used in content aimed at customers. The response that came back was they had checked with their team (all web developers) and they all felt their friends and families would understand the term. There was zero awareness that perhaps their team and even their close friends and family were not representative of a typical customer.

This level of overconfidence in the knowledge held within the silo can reduce willingness to interact with other business units and limit opportunities to share knowledge and expertise.  Employees may therefore become isolated and feel dissatisfied which can have serious consequences for staff morale and retention. This can damage efforts to improve the customer experience and often leads to complacency which can be disastrous for CRO.

Limited customer insight:

Image of online surveys

To understand user expectations and experiences it is critical that data and insights are combined and processed from sources throughout the organisational structure. If data is not freely shared and combined with insights from other units the opportunity cost can be huge. It significantly limits the value of customer data to the organisation and individual departments as connections and insights are not fully uncovered.

With CRO this is often characterised by one piece of market research or insight being used to push through an update based upon subjective opinions. This can create conflict between teams as one piece of information should never be used in isolation to support a change in the customer experience. Such a culture can seriously damage the customer experience and reduce conversion rates.

Blame culture:

A fragmented approach to organisational change programs such as CRO caused by the dominance of individual silos creates a blame culture and can result in complacency. When CRO related targets are not met the temptation for some departments is to blame other areas of the business rather than take responsibility for their own failings.

A blame culture discourages collaboration because such initiatives can threaten a person’s career or credibility within their own department. In CRO it is important to encourage people to prove themselves wrong by creating online experiments to challenge existing best practice.

This is often how innovation happens as if we don’t take risks we are unlikely to create anything new and transformational. However, to identify improvements in the customer experience it is essential that people from different areas of expertise work together in a collaborative and trusting environment.

Groupthink:

When all think alike, then no one is thinking - Walter Lippman - The danger of groupthink

Small teams drawn from a single business unit have been found to be prone to make poor decisions due to their tendency to suffer from what psychologists call groupthink. Companies often believe that by recruiting the most talented and smartest people they can prevent poor decision making. The opposite is often true as small homogeneous groups suffer from a lack of diversity, insufficient independent thinking and a desire for conformity.

 “Diversity and independence are important because the best collective decisions are the product of disagreement and contest, not consensus or compromise.”  – James Surowiecki, The Wisdom of Crowds

People in such teams are also often over-respectful of senior people and so don’t sufficiently challenge ideas from these team members. Diversity is important because homogeneous groups become more cohesive than diverse teams and as a consequence they become more reliant on the group for ideas and support.

This insulates the group from external sources of information and makes group members more assured that the group consensus is the best solution to the problem.

 “Suggesting that the organization with the smartest people may not be the best organization is heretical, particularly in a business world caught up in a ceaseless “war for talent” and governed by the assumption that a few superstars can make the difference between an excellent and a mediocre company. Heretical or not, it’s the truth, the value of expertise is, in many contexts, overrated.” – James Surowiecki, The Wisdom of Crowds

Of course many large organisations insist on recruiting the brightest minds from the top universities. However, this restricts both racial and cognitive diversity which enables homogeneous groups to form.

How do you break down silos?

CRO needs to be an agile process to allow teams to respond to new customer knowledge and insights from the multitude of sources available to a customer focused organisation.

Collaboration is essential to enable knowledge and data to be delivered to where it is needed. It is vital to any organisation that seeks to improve profitability by improving the customer experience and conversion as no single team can optimise the user experience on their own.

To break down organisational silos to develop a strong CRO culture it is necessary to begin at the top of the business and change old working practices. The key strategies to create a more collaborative approach to CRO are:

CRO needs board level buy-in:

If you look at the companies that have most successfully implemented a CRO strategy such as Amazon, Booking.com and Skyscanner.com, they have people right at the top of the organisation who are passionate about CRO and take ownership of developing a supportive culture. Skyscanner for instance recently promoted their chief experimenter to become Director of Experimentation.

Having a board level manager in charge of CRO gives the strategy the profile and support needed to build a culture of customer focus and experimentation. A junior manager would never have the clout to try and optimise the product as well as web content.

Agree a unified vision for CRO:

 

Image of Amazon signIt is important to have a single unified vision for the company to retain focus and ensure consistency of objectives within the leadership team. Amazon has a very strong and clear  vision as follows:

“Our vision is to be earth’s most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online.” – Source: The Balance.com

The focus on customer centricity gives clear direction to all employees so that everyone can relate the vision to their own job. This helps CRO because people can see the relevance of optimisation to the company’s vision and their own individual and departmental goals.

Set a common goal:

Silos often cause conflict because individual business units set tactical goals and objectives that can discourage collaborative working. To avoid this problem the leadership team need to set out a single goal for the company that they can all agree on and is their number one priority. For example Amazon’s Jeff Bezos said;

“It is the company’s goal to make it irresponsible to not be a Prime member.” – Jeff Bezos

This should be clearly communicated to all employees so they can understand how they can contribute individually to achieving the goal. This assists CRO because having a clear goal makes it easier to identify a relevant success metric for experiments to be evaluated by.

Agile product management:

To facilitate collaboration across individual business units it is necessary to form product management teams that draw expertise from a diverse range of areas of expertise. For CRO this means having teams which include developers, UX designers, marketing specialists, experimenters and product managers to develop hypothesis, build tests and implement successful ideas.

Identify why trust has broken down:

It’s important to understand the reasons for a lack of trust and get people to recognize the problems that silos create before implementing solutions.  Changing a culture of working within silos has to be planned to reduce resistance and obtain co-operation. For CRO this means frequent communication and workshops to engage people throughout the business.

Flexible communication solutions:

The growth of global teams can prevent knowledge sharing and timely decision-making. Further, the use of email, phone and real-time messaging services has created a virtual workplace that fragments communications and reduces face-to-face interaction.  Business process management and resource planning software can help break down silos walls and allow people to work together on shared goals and encourages the exchange of information and ideas.

Let go of CRO:

One way of killing collaboration in CRO is not being willing to let go and allow others in the organisation to have some autonomy. Sure, there is a need for oversight and co-ordination, but beyond that it is necessary to trust people to follow the agreed framework for CRO.

It is important to get people across the business trained up to add their input and expertise to the CRO program. Your UX designers should provide wireframes for your ideas, copywriters content, and your own developers should be best suited to building experiments. Sometimes it can help by bringing in a CRO agency to co-ordinate this process, but in the long-run it is perfectly possible to create all the necessary expertise within most organisations.

Conclusion:

Finally, to understand how well CRO is being implemented ensure you build in feedback and monitoring systems to evaluate how well your strategy is working. CRO is a change management process and so adoption will take time and is rarely universally successful. However, as gaps or problems are identified you have the opportunity to review your approach and try new ideas.

Beware of vanity metrics, such as number of tests per month, which often don’t closely fit the desired outcome. This can result in  the cobra effect which can lead to unexpected and unwanted behaviour. Look out for these behaviours and adjust targets accordingly as some people do try to play the system.

Thank you for reading my post and I hope you found it useful. Please share using the social media icons below if you like this post.

You can view my full Digital Marketing and Optimization Toolbox here.

To browse links to all my posts on one page please click here.

  • About the author:  Neal provides digital marketing optimisation consultancy services and has worked for  brands such as Deezer.comFoxybingo.com, Very.co.ukpartypoker.com and Bgo.com. He uses a variety of techniques, including web analytics, personas, customer journey analysis and customer feedback to improve a website’s conversion rate.
  • Neal has had articles published on website optimisation on Usabilla.com  and as an ex-research and insight manager on the GreenBook Blog research website.  If you wish to contact Neal please send an email to neal.cole@conversion-uplift.co.uk. You can follow Neal on Twitter @northresearch, see his LinkedIn profile or connect on Facebook.

Why Do Most Attempts At Behavioural Change Fail?

Most Behaviour Change Fails!

Have you ever tried to change a long-standing habit or create a new habit? Perhaps you tried to give up smoking, eat fewer sugary foods, start taking regular exercise, or just spend less time on social media. It’s often difficult isn’t it and the same is the case when we try to change the behaviour of website visitors. Indeed, studies suggest that most attempts to change behaviour fail.

Why do most attempts at change fail?

BJ Fogg’s Stanford Persuasion Lab conducts research on how to change behaviour using technology. The BJ Fogg Behaviour Model explains how three elements must converge simultaneously for a behaviour to occur. The model highlights that for people to complete a task they need the necessary motivation, the ability and a trigger to prompt the behaviour. When an action does not occur, at least one of these three elements must be missing.

Image of BJ Fogg's behavioural change model
Image source: BJ Fogg

How can we use the model?

The Fogg Behaviour Model has been created to help designers understand what stops people from completing a behaviour. For example, if users are not completing a target behaviour, such as a quotation request form on a price comparison site, the

Three core motivators – Psychological drivers:

Fogg highlights three key motivators; Sensation, Anticipation and Belonging. Each motivator has two sides; pleasure/pain, hope/fear and acceptance/rejection. Although this is a simplistic model of motivation, these core motivations can be applied to all uses and they get us to consider psychological drivers of behaviour.

Ability – Making things simpler:

If you want someone to do something they must have the ability to do so. It might seem obvious, but we sometimes wrongly assume everyone knows what we know and that they have the same skills as we do. We have two options here. We can either train people to improve their skills or we can reduce friction by making the target behaviour easier to complete.

Training or on-boarding is the more difficult route as people are generally impatient and lazy. As a result users will often avoid having to learn new skills. Designing an intuitive interface is normally a much better option as this fits much more closely with human nature.

Simplifying an action to make it easier to complete should be your preferred option in most cases. Ease of completion is a function of our scarcest resource. This is often either our time or money. Users are very impatient and so a behaviour that requires more than a few seconds may fail because the user is not prepared to sacrifice the time needed to complete it. This is why it is sometimes a good idea to inform users how long an action will take to manage expectations and encourage them to allow the necessary time for the task.

Money is another scarce resource and so if a behaviour needs £25 to complete and you don’t have £25 to spend, then it’s not easy is it. This is why a free trial can be an effective way of reducing friction to undertaking a behaviour.

Triggers to prompt behaviour:

Congruence bias can result in us testing just the things we decide are a problem rather than looking at other things

Triggers prompt or remind us to begin a task and without a trigger the target behaviour will not occur. There are lots of different names for triggers; prompts, call to action, request and cue to name but a few.

Triggers can be an external prompt, such as a mobile phone push notification or a pop-up message on a website. On other occasions our daily routine or habits may trigger a behaviour. For many people in large cities going to work triggers buying a coffee or checking Facebook may prompt us to upload our latest photos. Some of the most powerful triggers though are major life events such as starting work, marriage, moving home, birth of a child and children leaving home.

Trigger in action:

I sometimes play poker on Facebook with Zynga the online gaming company. I haven’t played for a week or two and so Zynga sent me an email offering me the chance to win some free chips. The trigger is a simple call to action of Open Now. The motivation involves scarcity as the offer expires within 24 hours of receiving the email.

Image of email from Zynga.com to trigger user to sign in
Image Source:

Although the target behaviour is to get me to sign in and claim my prize, Zynga’s larger objective is to get me playing a game of poker.  The use of loss aversion is an effective way to motivate me to click on the call to action and as Facebook remembers my login details the behaviour is very easy to complete.

How to apply the Fogg model to digital marketing:

The Fogg model is a powerful resource for evaluating how to encourage behavioural change in digital marketing as it has been specifically constructed for use with technology.

What is motivating visitors?

People buy benefits rather than features and so it is important understand your customer’s needs and what they want from your product or service. Marketers need to communicate a compelling proposition that includes psychological motivations as well as more rational benefits to motivate users. This needs to be sufficiently appealing to justify changing their behaviour and perhaps switching to a new supplier.

So before designing a page or website first consider what need your product or service is solving and how important is it to your prospects. Make sure you identify the most important needs so that you don’t make the mistake of promoting something that is not salient to your customers. Use the implicit association test to identify psychological motivations as people don’t have full access to our deeper, emotional drivers.

Evidence of social proof can further enhance the perceived value to prospects because of our natural herd instincts. However, perhaps most crucially is that your value proposition is communicated with engaging imagery and compelling copy to persuade visitors that it will deliver on your brand promise.

Rewards can be used to provide a further motivation to complete a task. However, make sure the reward is something people want and be careful to adjust the frequency of the reward to optimise its effectiveness. Read my post on the psychology of rewards for more details.

Evaluating ability:

If your target behaviour is not easy and simple for visitors to undertake it will create friction which can prevent even the most motivated user from completing a task.  Apart from being lazy, people have limited attention spans and are often interrupted when browsing. This is what it is important that the user experience is intuitive and there is a clear visual hierarchy.

To get an accurate assessment of how easy your site is to navigate usability testing is essential for any organisation that is serious about addressing ability issues. Observing visitors trying to navigate and complete tasks on your site is much more insightful than asking them direct questions. Your analytics can tell you where there may be a bottleneck, but usability testing tells you why there is a problem.

Browser replay tools, such as Hotjar or Sessioncam, can also help identify where problems may occur. Session replay recordings are like undirected usability tests as you don’t know for sure what visitors are trying to achieve. However, by encouraging people in your organisation to spend time watching session recordings it is surprising how frequently usability problems are identified.

Image of Widerfunnel.com lift model
Source: Widerfunnel.com

I find a heuristic analysis with the help of WiderFunnel’s Lift Model is also very useful at highlighting potential shortcomings with a screen or user journey. This begins with the value proposition and how compelling it is to your prospects. Use the model as a check list of what to look out for and you will soon come up with a long list of items to consider.

Frequent sources of friction:

There are some elements of web design that consistently cause friction and result in a poor user experience. Friction can reduce both our ability to complete a task, but the anxiety it creates can also harm motivation. So, if you have any of the following friction generators on your site I would recommend that you remove them if it all possible.

Using registration as a landing page:

Let me say this once. A registration page is not a landing page! Sending off-site visitors directly to your registration form is lazy marketing. Use a dedicated landing page that is designed to inform and persuade.

Registration pages should not be designed to inform visitors about your value proposition and should be focused on getting visitors through the sign-up process and not to persuade them that your offer is right for them. It’s also a poor user experience as it doesn’t conform to visitor’s expectations.

Sign up forms with a pop-up before the first page:

When a user clicks on a button to launch a form to input information for a quotation or open an account the expectation is very clear. The visitor anticipates being taken directly to the form. Given this strong expectation it is not advisable to interrupt the user journey with a pop-up or interstitial to offer users another choice.

Image of pop-up immediately before a form on https://www.theidol.com/
Image Source:

Theidol.com launch a pop-up to promote their comparison service immediately after the user clicks on “Get a Quote” CTA. This is a poor user experience as it is confusing for the visitor. The risk with interrupting the user journey in this way is that it’s not meeting customer expectations and can be perceived as too aggressive. It would have been better to offer the price comparison service as the primary CTA on the home page and made the existing option of getting a single quote a secondary CTA.

Dont’s use CAPTCHA:

Forms are a common source of friction and so it is important to take care when designing them. However, CAPTCHA fields are notorious for annoying and frustrating users. They are often implemented by IT security teams to protect a site against bots, but there many other better ways of achieving the same aim without causing friction.

Image of CAPTCHA on wrexhamfc.co.uk
Image Source

 

Allow users to decide when they are ready:

When a user lands on your site many will not be ready to convert. If they have never been to your site before they need to establish your credibility and may want to browse to find out more about what you offer. However, many sites wrongly assume that visitors are ready to convert on their first visit and offer no secondary call to action.

Image of https://www.theidol.com/ homepage with secondary CTA
Image Source:

To build visitor motivation it is necessary to design user journeys that allow for establishing credentials (e.g. customer testimonials and awards), information gathering (e.g. white papers or blogs) and lead capture (e.g. newsletter sign up form).

Always include a secondary CTA as people like to have a choice and you need to allow for those users who are not yet ready to commit. The above homepage from theidol.com prominently displays a primary and secondary CTA to give users the choice.

Homepage Sliders/Carousels:

So many websites have auto-sliders or carousels on homepages that you would be forgiven for assuming that they must be an effective means of communicating multiple products or value propositions. Management love them because they can allow them to avoid making difficult decisions about what should be on their homepage.

Here is the carousel on Very.co.uk which changes every few seconds as the user is reading the text. This can also be annoying to visitors if they are not fast readers.

Image of Very.co.uk with homepage carousel
Image Source:

However, the vast majority of A/B tests and usability studies have shown that few users interact with them and they can often harm conversion rates. Because carousels often look like adverts they are frequently ignored and have few clicks on calls to actions. In addition, even fewer visitors click on second, third and other panels that are included in a carousel. This means that prime real estate on your homepage is not performing effectively and so should be removed.

Welcome screen:

When a visitor successfully completes your registration process, don’t dump them into a blank page and expect them to work out where to go next. Make sure you provide a suitable welcome message and provide on-boarding information or cues. It’s an important stage in the user journey, and so make sure you take advantage of it with suitable content.

Image of on-boarding user journey for Deezer.com
Image Source:

Deezer, the music streaming app, has a simple and easy on-boarding process. When a user completes a short sign-up form they are first asked to select music genres they like. Users are then asked to indicate their preference for a series of artists. Once this is complete the user is presented with a unique play list called “Flow” which reflects their music tastes.

Conclusion:

BJ Fogg’s behavioural change model is a powerful framework for considering how we can nudge visitors towards their goals. Most attempts at behavioural change fail, not because people can’t change, but rather because at least one element is missing. People need a trigger, but also the ability and motivation to change. Use this framework to identify which elements are missing in your user journey and address these deficiencies to improve your chance of success.

Thank you for reading my post and I hope you found it useful. Please share using the social media icons below if you like this post.

You can view my full Digital Marketing and Optimization Toolbox here.

To browse links to all my posts on one page please click here.

  • About the author:  Neal provides digital marketing optimisation consultancy services and has worked for  brands such as Deezer.comFoxybingo.com, Very.co.ukpartypoker.com and Bgo.com. He uses a variety of techniques, including web analytics, personas, customer journey analysis and customer feedback to improve a website’s conversion rate.
  • Neal has had articles published on website optimisation on Usabilla.com  and as an ex-research and insight manager on the GreenBook Blog research website.  If you wish to contact Neal please send an email to neal.cole@conversion-uplift.co.uk. You can follow Neal on Twitter @northresearch, see his LinkedIn profile or connect on Facebook.

 

 

How To Use Behavioural Science To Boost Conversions

Why Is Behavioural Science The Key To Effective Marketing?

In the book, The Growth Strategy That’s Being Ignored, by Paul Rouke, a number of the contributors argue that for conversion rate optimisation (CRO) to be a significant driver of growth a customer centric approach needs to be embedded into the company’s culture from the C-suite downwards. There was also a consensus that it is essential to understand users and align the customer experience with their desires and motivations.

“We need to re-align optimisation to the user experience. Understanding our users, listening to their feedback and empathising with their needs is the only way to truly understand what needs to be optimised.” Dr David Darmanin, Founder & CEO of Hotjar  – (from The Growth Strategy That’s Being Ignored).

However, whilst this sounds all well and good, CRO can only be a driver of genuine business growth if it first persuades more visitors to achieve their goals. The business’s goals should of course be aligned to customer goals. Think about it, improving awareness, engagement, intent or the overall customer experience doesn’t matter two hoots unless you persuade more users to convert in  a profitable and sustainable way.

“Conversion rates area a measure of your ability to persuade visitors to take the action you want them to take. They’re a reflection of your effectiveness at satisfiying customers. For you to achieve your goals, visitors must first achieve theirs.” Bryan Eisenberg, Founder & CMO at IdealSpot – – (from The Growth Strategy That’s Being Ignored).

To persuade users we need to understand the nature of human decision making. This means identifying how the mind operates and what mechanisms are involved in human decision making? But also what are the main forces that shape behaviour? To what extent do factors such as emotions, context, past experience and social influence drive behaviour?

Why behavioural Science?

Behavioural science examines both of these aspects of human decision-making. Behavioural economics for instance covers the analysis of our cognitive function, but also social, contextual and emotional factors that shape human behaviour. Neuroscience is making great advances in understanding how our brains respond to different types of stimulus. Most of these factors are largely ignored by the field of economics and yet much of marketing theory has been influenced by economic thinking.

For example are people really rational, independent thinkers? In the book Herd, Mark Earls points out that humans are “super social apes” and we constantly monitor and copy the behaviour of others. We align with groups we wish to associate with (herd theory) or copy others to learn new ideas and behaviour (social learning). This means we are automatically drawn towards brands that people in our social networks buy. In this respect we are almost the exact opposite of the agents that economists assume we are.

Behavioural science therefore allows us to gain a deeper understanding of the decision making process and the factors that influence user behaviour. So what are the practical implications and how can we use them to improve the persuasiveness of our digital marketing activity? Below are six key insights and implications for CRO.

1. What About The Subconscious Brain?

Marketing is often ineffective because it fails to target both the conscious and non-conscious parts of the brain to get an emotional response. A purely rational argument may not communicate to the part of the mind that makes most of our decisions.

At the same time behavioural science cannot save a poorly designed product or weak value proposition. Indeed, sometimes a good rational message can also result in strong emotional response.  For example, Ronseal’s quick drying woodstain’s strapline; “Does exactly what is say on the tin.” This is a rational message that gives the buyer reassurance that they won’t regret their decision. Avoiding regret is a powerful motivator as people hate to feel such an emotion.

The psychologists Daniel Kahneman and Amos Tversky have shown that the mind works at two levels. System 1 is our fast, intuitive, emotional and largely automatic brain which is continuously running in the background. It also largely steers our other level of thinking, System 2. This is a slow, analytical, and deliberative brain.

We use System 2 for self-control and cognitive effort, such as resolving complex problems and mental maths. However, because System 2 quickly depletes a shared pool of cognitive energy we use it sparingly and so we rely on System 1 for most simple decisions.

Image of difference between System 1 and System 2

This concept of the mind has been further supported by Professor Gerald Zaltman whose research suggests that up to 95% of our purchase decisions are made by our non-conscious brain. Roger Dooley also makes the point in the book The Growth Strategy That’s Being Ignored.

“Today, there are many poorly optimised websites that even elementary CRO approaches can help. Once the basics are fixed, though, more sophisticated approaches will be needed to keep improving conversion rates. A key part of these better tactics will be to focus on the customer’s non-conscious decision-making using brain and behavioural science.” Roger Dooley, Founder at Dooley Direct LLC – (from The Growth Strategy That’s Being Ignored).

Implications for CRO:

  • The explosion of literature about the non-conscious part of the brain has led some marketers to focus purely on emotional messages. This is misguided as a strong explicit goal forms the foundation of relevance and motivation to purchase. Ensure you establish a strong connection between rational and implicit (psychological) goals to avoid conflict between the System 1 and 2.
  • Targeting the non-conscious brain requires thinking about our underlying motivations that we often don’t express but are important drivers of behaviour. This means considering how people want to feel about their actions and the brands they buy. Even if people are not consciously aware of a message that targets an implicit goal research (Ruud Custers & Henk Aarts, 2010) indicates that it can still become more accessible in a person’s memory and so the brand has more chance of being top of mind.

“Implicitly activated goals not only make products or brands more accessible, they also result in a more positive attitude.” – Phil Barden, Decoded.

 

  • Lean Cuisine for example used underlying motivations to create an ad “#WeighThis” which went viral. The ad creators realised that eating healthy, low fat food is often not about your weight. People make an effort to take care of what they eat for a purpose.
  • Psychologically they want to feel good about themselves. As a consequence the ad focused on getting people to talk about what really matters in their lives. Rather than using scales to measure their weight they were asked to weigh what they are most proud about their life. 
Image of Lean Cuisine ad "#Weigh this"
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  • Asking people direct questions about why they purchased a product or made a decision is fundamentally flawed. Customers don’t have full access to their underlying motivations and post-rationalise when asked to explain why they made a certain decision.
  • Focus groups are the biggest failure here as you also have group dynamics involved which makes feedback almost impossible to interpret. They are often the default method of research and appear to be popular because people enjoy watching a group of strangers rationalise about their product or creative.
  • But in reality we don’t sit in a bubble with a bunch of strangers trying to say clever things about something we don’t really care that much about. Neither is it normal to talk about digital content when we know the person who thought up the idea may be watching us behind a one-way mirror. This is as about as far from reality as anything we could think up in our wildest dreams.
  • Observing users (e.g. usability research), listening (e.g. social media monitoring) and using implicit research methods (e.g. Implicit Association Test) are more reliable methods of research as they don’t rely on self-reporting. Direct questioning at the time of a user visit can be useful to obtain feedback on the user experience, but be aware of the limitations of such research.
  • For understanding how people react to new content or new products the most reliable method is a controlled experiment. The scientific method used for A/B testing for instance allows us to measure real changes in behaviour rather than rely on biased and flawed research techniques.

2. Psychological Rewards Drive Attention:

Brands are objects in our minds and relatively few brands connect at an emotional level. We respond emotionally to brands because they help us meet psychological goals not because we are particularly loyal to them. Brands, however, can use these psychological territories to differentiate themselves from competitors and to improve their appeal to customers.

Neuroscience research (Berns & Moore, 2012) indicates that products and services activate the reward system of our brain. Indeed, this is more predictive of future sales than subjective likeability and the intensity of the brain’s response is related to the value we expect the product to deliver.

A neuroscientific study (Carolyn Yoon, 2006) indicated that brands are simply objects to the brain and brands are not perceived to be people with personality traits. People buy products to achieve explicit (rational) goals which relate to the product category.

Brands on the other hand help us meet implicit or psychological goals. People respond emotionally to a brand when it helps them achieve a goal and not necessarily because we feel deeply attached to it. However, the more important a goal is the stronger we relate to brands that are relevant to that goal.

Marketing consultancy Beyond Reason combined findings from both neuroscience and psychological research to create a comprehensive model of implicit motivations. Research shows that implicit goals focus our attention so that even subconsciously we notice brands that may help us achieve an active psychological goal. Brands that we think are most likely to help us achieve a goal get the largest share of our attention. This may explain the attraction of guarantees and compelling value propositions that promise a desired outcome.

Image of Beyond Reason's implicit motivation model
This motivation model is the intellectual property of BEYOND REASON.

 

Our brains respond to the difference between reward (i.e. achieving goals) and the pain (i.e. the price) we feel when considering a purchase. When the difference is sufficiently large we will be open to purchasing a product. The net value can be changed by increasing the expected reward (i.e. improve the benefits or performance of the product) and or reducing the pain (i.e. lower the price). Another way to improve the perceived value of a product is to use social proof to demonstrate how popular the brand is.

Implications for CRO:

  • Use the Beyond Reason implicit goal map to review your value proposition and messages on key pages. Beyond Reason’s implicit research methodology identifies and provides a weight to each implicit purchase motivation so that you can align your value proposition and communications to your customers’ psychological goals. You can then use A/B testing to evaluate how communicating these psychological goals influence conversions on your site or app.
  • People like what they buy, not buy what they like. Providing reasons, both rational and emotional can help to persuade visitors that what you offer is what they are looking for. However, the serial position effect suggests that you should position your most important points at the beginning and end of a list. Don’t list your benefits in descending order of importance because people have a tendency to remember the first and last items in a list.
  • Focus on habit formation or disrupting existing habits. Research by the late Andrew Ehrenberg suggested that most brand loyalty is driven by habits and availability, not by a strong emotional attachment to the product. Marketing strategy should be designed around people’s habits. It is easier to piggy back onto an existing habit rather than create a new one and so look to see how your product or service relates to everyday behaviour.

 3. The sales funnel is a myth!

Decision making is not a linear process as suggested by many models of consumer behaviour. It’s complicated and is not conducted in isolation from what else is happening around us. This means that people are easily distracted because they have multiple goals battling for attention at any one time.

  • The traditional sales funnel suggests we act rationally and go through a mythical sequence of steps before purchasing. In reality our brains are constantly bombarded by stimuli and as a coping mechanism our brain creates a cognitive illusion that makes us feel in control and rational. However, this process filters out information that our brains deem to be unimportant and distorts other inputs to protect and enhance our self-esteem.
  • In these circumstances a more appropriate analogy would be a leaking bucket that is standing on a ship’s deck. The water in the bucket is anything but tranquil as it is constantly being churned up by emotions, incomplete and inaccurate memories, social interactions and many other factors that can instantly cause us to change course. In figure 1 below I have summarised all the key elements that behavioural economics identifies as influencing behaviour.

Figure 1

Image of behavioural economics decision bucket
Source: Conversion-Uplift.co.uk 2017

 

Implications for CRO:

  • Cognitive biases such as confirmation bias, backfire effect and bias blind spot shape our view of the world and make it very difficult for brands to change strongly held beliefs. What this suggests is that brands may be wasting their time and money by targeting existing customers of large competitors as they are unlikely to alter their opinions and habits unless something seriously goes wrong. Don’t use rational arguments to change people’s beliefs because often this will just result in those ideas becoming even more entrenched.
Image of cognitive bias codex graphic
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  • Brands can grow faster if they focus on increasing overall penetration by targeting visitors who are not strongly affiliated to any particular brand and use CRM activity to engage existing customers. This is supported by research published in the Journal of Advertising Research  which points out that your next customer is likely to be your most profitable visitor because average basket values increases as a brand franchise grows in size.
  • The insight here is to be less concerned about what your competitors are doing and put more effort into communicating a compelling proposition to new users and visitors to your site.

“Brands need to target inclusively and stand for a vivid, clear but broadly appealing benefit. A narrow, exclusive focus on the ‘most profitable’ households is a recipe for stagnation and decline, not for brand health.” Journal of Advertising Research, 2002.

  • Repeat key messages at key stages of the user journey to improve the likelihood that visitors will notice them. Repetition also plays to the availability heuristic which means we are more likely to believe something that is familiar to us.

“When you hear the same story everywhere you look and listen, you assume it must be true.” Barry Schwartz, The Paradox of Choice: Why More Is Less, Revised Edition

4. Brands are framed by people not brands:

Because people are extremely social beings we have highly developed and complex social networks. We are constantly thinking about or observing the behaviour of others. Much of our behaviour is made and shaped by interactions with other people.

Whether it is the brands our parents purchased when we were young, what our colleagues talk about at work or the latest game that our Facebook friends are playing. These interactions are key to many of the choices we make and often we are not even consciously aware of how others influence us.

Indeed, to influence mass behaviour Mark Earls argues that we need to stop thinking about customers in the “I” perspective and begin considering them part of social networks and tribes of “Us”. He uses the analogy of trying to predict how a fire spreads through a forest. We wouldn’t concern ourselves with the characteristics of an individual tree and focus on a tree in isolation. Instead we consider how trees are connected to each other and how the landscape might influence the spread of the fire.

Implications for CRO:

  • People often conform to trends or fads, and may even ignore their own beliefs because they don’t want to miss out (i.e. loss aversion) on what everyone else is doing (see bandwagon effect). Use social proof (e.g. Facebook followers, customer numbers and testimonials) to communicate how popular your brand is to benefit from this phenomena.
  • Ratings and reviews are especially important when people are faced with a large number of similar options as they often don’t have the time or expertise to evaluate each item. Here social proof acts a short-cut for determining which providers they can trust.  com effectively uses the Trustpilot rating platform with a prominent site rating in the header and clear customer rating and review information just above the price on the product page.
Image of AO.com product page with prominent ratings and reviews
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  • When you faced with a number of similar options, such as pricing plans, people find it difficult to decide between them. One way behavioural economics suggests you can make it easier for users is to indicate which plan is your customers’ most popular choice. Many visitors will select the most popular plan because it is seen as a ‘safe option’ when faced with uncertainty.

Spotify extensively utilise the bandwagon effect in their music app by displaying how many people are following a song, album, artist or playlist. This encourages users to explore new music and build their own playlists. Such behaviour improves user engagement and increases the potential value of customers.

Example of social proof from Spotify.com
Source: Spotify.com

 

  • People also consciously copy the behaviour of others when they want to be associated with like-minded people and participate in similar experiences. Use customer research to understand what beliefs and attitudes are most important to your visitors and align your behaviour and business ethics accordingly.

For example, Innocent drinks sell a range of premium smoothies to a health conscious audience. However, to communicate its high ethical standards it has a brand promise to be socially responsible in how it sources its ingredients and it guarantees to give 10% of its profits to charities which fund projects that alleviate hunger around the world. This socially responsible stance fits well with many of its customers and probably helps it to maintain a premium price.

Innocent smoothies promise
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  • Be careful about social norms and traditions when entering a new market or launching a new product. When Apple launched the original iPhone in Japan in 2008 it struggled to sell because it didn’t conform to market norms. By 2008 Japanese consumers were already accustomed taking videos and watching TV shows on their smartphones. The iPhone did not even have a video camera or the ability to include chips for debit card transactions or train passes. In Japan many people use trains to get about and credit cards are rarely accepted.
  • Pepsi broke a social norm with the Kendall Jenner ad as they tried to use political protest for commercial gain. By attempting to co-opt a movement of political resistance and mimic anti-Trump and Black Lives Matter protests, Pepsi over stepped what was perceived to be acceptable by many people.
Image of Kendall Jenner in Pepsi ad giving a can to policeman
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5. People do not seek a perfect solution:

Most of the time people are satisfiers rather than wanting to maximise economic utility. We don’t have the time or resources to look for “ideal” solutions. We use our gut instinct and heuristics to identify who we can trust and aim to avoid disasters rather than seeking perfection. We are probably happy most of the time if our decision results in something that is in the third quartile.

Implications for CRO:

Avoid using words to describe your offer as “ideal” or “perfect” as this is not aligned with real user behaviour. People want to know who can be trusted rather than if your product will change their lives.

Everything is relative. People automatically want to compare offers because they don’t necessarily know what above average looks like. Including comparative information on your site which includes some benefits where you are inferior to your competitors can help build confidence in your brand. People understand it is rare to find something that is better in every aspect and value honesty in the people they deal with.  An independent source for comparative information can carry further weight.

Offer money back guarantees or free returns to demonstrates confidence in your product. This also reduces the perceived risk of the customer making a mistake and feeling regret.

6. Ease the pain of payment:

Neuroscience research has indicated that an excessive price activates a part of the brain called the insula. This is normally a part of the brain associated with experiencing pain which suggest the people can suffer from a form of mental pain when considering the cost of an item.

Implications for CRO:

Free trial offers and buy one, get one free offers are good strategies for reducing pain felt due to the price of an item. This also plays to our human tendency to be loss averse. People fear loss greater than a gain and are also attracted to free or discounted offers because they hate the feeling of regret when they miss out on something appealing.

Image of chart showing hyperbolic discounting curve
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Delaying payment can also significantly improve a user’s likelihood to convert because a payment in the future is perceived to be worth less than a cost immediately incurred. (see hyperbolic discounting). Ecommerce stores routinely benefit from this phenomena by using buy now, pay later promotions and by allowing customers to pay in monthly instalments.  Littlewoods.com is very effective at using  the buy now pay later proposition to reduce the pain of a purchase and this allows the e-commerce retailer to charge a significant premium for products on its site.

Image of spread the cost banner on Littlewoods.com
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Brands can also reduce the pain from a payment by using the concept of mental accounting to associate the purchase with an existing household budget. People have a tendency to allocate money into separate subjective pots, such as house, weekly shop, holiday, savings, windfall gains and housekeeping money. They tend to be more willing to dip into some accounts, such as housekeeping and windfalls, than others, such as savings or house (i.e. rent or mortgage).

Image demonstrating mental accounting
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To benefit from mental accounting brands can seek to position their product or service as naturally coming from an appropriate and easily accessible mental account (e.g. air freshener from weekly shopping). In addition brands could allow customers hold a surplus balance or to allocate items to different accounts (e.g. banking apps that allow budget setting). This can help people manage expenditure according to their mental accounts.

Image of Amazon sign

Amazon uses mental accounting with Amazon Prime Reload, a rewards program which encourages people to sign up to Prime and hold a surplus balance on their account. Prime members get 2% back on purchases when they first pre-fund their Amazon Balance using a debit card.

This may encourage people to load large amounts into their Amazon Balance to avoid ever having to pay directly for an item through their debit or credit card.  By creating an ‘Amazon account’  this may encourage more frequent and impulse purchasing if the customer maintains a surplus balance. It makes it much easier for people to justify a purchase when the money has already been allocated to an existing account.

MYJAR.com  uses its brand name to associate itself with the mental accounting concept because in the UK it is still common practice to keep spare change or money for a specific purpose  in jars. Traditionally it was common to use jam jars to store cash for different needs (e.g. beer money and milk money).

Image of email from Myjar.com which uses mental accounting concept with the use of the term jar
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Conclusion:

Behavioural economics in particular provides us with a framework and language to create strategies for behavioural change. As shown above, behavioural science creates many opportunities for us to be more persuasive online. Roger Dooley is correct in suggesting that we need to be better at targeting the non-conscious brain because this makes most decisions. However, neither should we forget to link the emotional with rational reasons why we buy as without System 2 thinking we may lack substance.

Beyond Reason’s implicit motivations model provides valuable insight into how we should discuss brand positioning. Many brands have similar features and benefits, but we can use implicit motivators to have informed discussions about how to best differentiate our brand using deep psychological and emotional goals.

The importance of social interaction cannot be overstated. Brands are nothing without human interaction, whether between customers or with staff via digital channels or offline conversations. People use the popularity of your site as a short-cut to deciding whether they can trust you. Social influence should, therefore, be one of your strongest strategies for influencing visitors to engage and convert.

As well as seeking to increase the value of your brand (e.g. through product enhancements) behavioural economics suggests we also look at the pain of price. It is important not to look at these factors in isolation because it is the net difference between the perceived value and the cost of an item that determines likelihood to purchase.

Thank you for reading my post and I hope it has given you some ideas on how to improve your site and generate hypothesis for A/B and multivariate testing. If you found it useful please share using the social media icons below.

You can view my full Digital Marketing and Optimization Toolbox here.

To browse links to all my posts on one page please click here.

  • About the author:  Neal provides digital marketing optimisation consultancy services and has worked for  brands such as Deezer.comFoxybingo.com, Very.co.ukpartypoker.com and Bgo.com. He uses a variety of techniques, including web analytics, personas, customer journey analysis and customer feedback to improve a website’s conversion rate.
  • Neal has had articles published on website optimisation on Usabilla.com  and as an ex-research and insight manager on the GreenBook Blog research website.  If you wish to contact Neal please send an email to neal.cole@conversion-uplift.co.uk. You can follow Neal on Twitter @northresearch, see his LinkedIn profile or connect on Facebook.

 

What Does Hick’s Law Tell Us About User Experience Design?

Choosing Takes Time:

In 1951 the British psychologist William Hick conducted experiments with a series of lights and Morse code keys to measure choice reaction times. Hick discovered that the relationship between the time it took to make a decision and the number of choices was logarithmic. Together with work by the US psychologist Ray Hyman their studies formed the basis of Hick’s Law which states that the more choices you offer people the more time they require to make a decision.

As a result when people are given lots to choose from have to spend a considerable amount of time to interpret and process information to make a suitable decision. This also corresponds with the Paradox of Choice by Barry Schwartz who argues more choice leads to more stress and reduced levels of customer satisfaction.

What does Hick’s Law tell us?

The research Hick and Hyman conducted resulted in a formula to define Hick’s Law:

RT = a + b log2 (n)

“RT” is the reaction time, “(n)” is the number of stimuli offered, and “a” and “b” are arbitrary measurable constants that depend on the task to be completed and the conditions under which it will be conducted. “A” could be getting an appropriate gift for your sister’s birthday and “B” could be a phone call with your mum to find out what other members of the family might be buying her as a present.

Image showing Hick's Law relationship between amount of choice and time to make a decision

 

The implication of Hick’s Law for UX and optimisers appears simple  – minimise the number of options you display to speed up the decision-making process. There are exceptions to the rule though as if a visitor has already made up their mind before arriving on your site they will take less time to make a decision than someone who has not decided what they want.

From a conversion perspective this means less is more and give more prominence to the option that is most likely to meet customer goals. But what else does Hick’s Law tell us about digital marketing?

Implications of Hick’s Law for UX:

Hick’s Law can be applied across many aspects of life and business, not just design and conversion rate optimisation. Here are 9 implications from Hick’s Law for UX:

  1. The design principle known as K.I.S.S (Keep it Short and Simple) originated from the application of Hick’s Law and this has been applied across many fields.
  2. In terms of systems design, Gall’s Law appears to apply a similar principle to the field of complex systems. This is a rule of thumb that suggests that complex systems have usually evolved from a simple system that worked. This is consistent with agile working which encourages project managers to keep website and apps simple at first. Avoid adding too many features and complex functionality at the beginning of the design process.
  3. Massive menus and lots of categories need to be avoided.
  4. Minimise call to actions (CTAs) and links on a page to reduce cognitive load.
  5. The vast majority of users who land on your site have some kind of preconception or intent about what they are looking for. Tailoring landing pages according to the source of traffic and what they are looking for can help us to remove choices that lack relevance to that particular customer segment. By eliminating distractions and focusing on the most relevant choices we can make the user experience less cognitively demanding and more enjoyable.
  6. For large data sets such as blog posts, thumbnails or product recommendations,  provide structure using white space and other directional cues.  By applying consistency to design this facilitates the user’s decision-making without over-powering them with choice.
  7. For content heavy sites designers should use patterns and consistency to allow users to easily scan the page and quickly find what they are looking for. A good design uses a combination of visual cues, colour, spacing and consistency to visually emphasize important conversion elements on a page.
  8. People don’t read content, they scan it. Use suitable images, graphics, spacing, headings , short paragraphs and bullet points to assist users in this process.
  9. Following established web conventions such as using blue for text links to indicate that it is clickable speeds up the user’s decision-making process. Users don’t have to think about such choices as these are globally recognised patterns in web design.

In an A/B test on partypoker.com we increased clicks on the vertical navigation by 17% by moving the navigation from the right to the left to conform to the web convention. Using standard web conventions throughout a design helps users make decisions based upon previous experience.

Image of partypoker.com vertical navigation test

 

Conclusion:

Hick’s Law reminds us that optimisation is about focusing on core customer needs and behaviour to minimise cognitive load and make the user experience enjoyable. By delivering a consistent set of design patterns that reflect behaviour and web conventions we can minimise the number of conscious decisions users need to make and improve conversions.

Design is not about making a website look beautiful or to win awards, but rather we should aim to make the user experience effortless. By applying the principles of Hick’s Law throughout the user journey we should improve the chances of prospects and customers converting.

You can view my full Digital Marketing and Optimization Toolbox here.

To browse links to all my posts on one page please click here.

  • About the author:  Neal provides digital marketing optimisation consultancy services and has worked for  brands such as Deezer.comFoxybingo.com, Very.co.ukpartypoker.com and Bgo.com. He uses a variety of techniques, including web analytics, personas, customer journey analysis and customer feedback to improve a website’s conversion rate.
  • Neal has had articles published on website optimisation on Usabilla.com  and as an ex-research and insight manager on the GreenBook Blog research website.  If you wish to contact Neal please send an email to neal.cole@conversion-uplift.co.uk. You can follow Neal on Twitter @northresearch, see his LinkedIn profile or connect on Facebook.

How Do You Measure Customers’ Sub-Conscious Motivations?

Most Decisions Are Made By Our Sub-Conscious Brain:

Neuroscience suggests that up to 95% of our decisions are made by our emotional sub-conscious brain and yet most research targets the conscious mind. To understand implicit (psychological) motivations it is therefore necessary to access the unconscious brain as this is known to direct attention towards brands and is more predictive of purchasing behaviour than subjective likeability.

What are implicit research techniques?

Implicit research seeks to access the automatic and sub-conscious mind (see System 1) using techniques that do not rely on direct, deliberate, controlled or intentional self-reporting. As a result relatively few research techniques qualify as implicit because many methods of research rely on conscious (intentional) thought.

Image of table showing different types of research and whether they are implicit techniques

One implicit research technique that is becoming increasingly popular with marketers because it is scalable and can measure sub-conscious feelings towards a brand or product is the Implicit Association Test (IAT).

 What is the Implicit Association Test?

The Implicit Association Test (IAT) allows you to measure the strength of a person’s automatic association between mental concepts (e.g. Muslims and Christians) and evaluations (e.g. positive or negative) or stereotypes (e.g. extremists, don’t integrate). It does this by measuring how quickly people can sort words or images into categories each time they are exposed or “primed” to a stimulus (e.g. a brand logo or product).

Why does it work?

It works on the basis that when you are primed with an image, sound or a word, the associations your brain has with that concept are much more accessible to you as it improves your cognitive processing. This means it can uncover the strength of your feelings as it monitors how each prime affects your mental processing speed and accuracy.

IAT achieves this by asking respondents to quickly sort words into one of two categories shown on the left and right hand-side of the computer screen. Participants use the “e” key to indicate if the word is most strongly associated with the category on the left and the “i” key if it belongs more to the category on the right.

How is the data used?

By understanding users’ implicit motivations marketers can design content and messages that are much more emotionally engaging and psychologically persuasive. By combining the findings with data from traditional methods of research we can create a decision-making model that includes both emotion and reason. Such models can generate very accurate predictions of user behaviour which can be used to inform campaign planning and value proposition development.

This allows us to measure the impact of the non-conscious on new product concept adoption, advertising response, brand image, packaging evaluations and more. IAT’s also allow you to understand the needs, interests and expectations of different customer segments, enabling you to better target marketing communications for different target audiences to generate a truly emotional response.

Agencies offering IAT’s:

Due to the increasing awareness of the limitations of traditional research more companies are now offering IAT’s to probe the non-conscious mind of the consumer. This includes companies such as Sentient Decision Science, who have a very informative blog,  The Implicit Testing Company, marketing consultancy Beyond Reason and market research company  COG Research.

Conclusion:

The IAT offers a scalable and affordable way for organisations to measure non-conscious motivations and expectations. Implicit methods of research provide a more reliable and accurate measure of the real influences on a user’s behaviour than more traditional explicit research techniques, such as surveys and focus groups.

Indeed, studies have indicated that IAT results show good correlation with preference and purchase intent. So, if you want to understand true user motivations it is time to ditch traditional questionnaires and focus groups as they are probably doing more harm than good.

Thank you for reading this post. If you found it useful please share using the social media icons below.

You can view my full Digital Marketing and Optimization Toolbox here.

To browse links to all my posts on one page please click here.

  • About the author:  Neal provides digital marketing optimisation consultancy services and has worked for  brands such as Deezer.comFoxybingo.com, Very.co.ukpartypoker.com and Bgo.com. He uses a variety of techniques, including web analytics, personas, customer journey analysis and customer feedback to improve a website’s conversion rate.
  • Neal has had articles published on website optimisation on Usabilla.com  and as an ex-research and insight manager on the GreenBook Blog research website.  If you wish to contact Neal please send an email to neal.cole@conversion-uplift.co.uk. You can follow Neal on Twitter @northresearch, see his LinkedIn profile or connect on Facebook.

What is the most powerful weapon of persuasion?

The Power of Commitment & Consistency!

We have all heard stories of how people are often unwilling to intervene when they see a crime committed in broad daylight. Why would people put themselves at risk to assist a complete stranger? Well, in 1972 the psychologist Thomas Moriarty conducted a study to  see if he could use a simple psychological weapon to persuade people  to put themselves at risk of personal harm for a person they had never met before. The research involved the staging of a number of thefts on a New York City beach.

For the experiment a researcher would place a beach blanket within 5 feet of a randomly selected individual. After about two minutes on the blanket relaxing and listening to a portable radio the person would stand up and leave the blanket to walk down the beach.  Within a few minutes a second researcher would walk by and grab the portable radio before trying to make a get-away.

In the control (i.e. no intervention was made) only four people out of twenty tried to prevent the theft. However, the number of people who were prepared to challenge the thief increased dramatically when the researcher asked the individual next to them to please “watch my things” before walking away. In this scenario nineteen out of twenty people challenged the thief.

The experiment confirms that people have a strong desire to appear consistent with commitments they have previously made. Indeed, in his book Influence, the psychologist Robert Cialdini argues that commitment and consistency is one of the most powerful weapons of social influence available to people wanting to change our behaviour.

Why is consistency so important to people?

Consistency is generally regarded as a highly desirable personality trait in our culture. When people don’t appear consistent they are often seen as indecisive and two-faced. The negative perception of inconsistency reinforces the belief that consistency is a valuable characteristic to portray.

However, Cialdini also noted that such is our desire to be consistent that people sometimes act without thinking and abandon strongly held beliefs in order to stubbornly follow a consistent path. He argues that a commitment can change our self-image and force us to act contrary to our own best interests.

“When it occurs unthinkingly, consistency can be disastrous. Nonetheless, even blind consistency has its attractions” – Robert Cialdini, Influence.

Why does consistency become a habit?

Due to our motivation to be consistent we will often automatically make decisions based purely upon achieving this consistency. This of course saves mental energy as it avoids complex decisions. But it can also shield us from the negative and unpleasant consequences of our actions.

“Sealed within the fortress walls of rigid consistency, we can be impervious to the sieges of reason.” – Robert Cialdini, Influence.

Why is commitment so important?

Psychologists believe that stubborn and ill-considered consistency is often the result of people making a public stand or commitment to something.   Once such a commitment has been made people have a tendency to try to ensure consistency at almost all cost even though  it may go against their inner beliefs.

Just look at how UK MPs have supported Brexit since the EU referendum. According to a poll by the Press Association over two thirds of MPs voted to remain in the EU in the referendum. But as the Prime Minister and many MPs made a public declaration to abide by the result the vast majority of MPs voted to support the Bill to trigger Article 50 to take Britain out of the EU.  This is despite the fact that only 52% of voters supported Brexit and many MPs still believe Brexit will seriously harm the economy and the UK’s standing in the world. That is quite extraordinary behaviour.

What kind of commitment?

The psychologist Steven J Sherman arranged for a sample of residents in Bloomington, Indiana, to be telephoned for a survey. Participants were asked to predict what they would say if they were asked to give up 3 hours of their time to collect money for the American Cancer Society.

Not wishing to appear selfish many of the people called indicated they would volunteer. This resulted in a 700% increase in the proportion of people volunteering when they were contacted a few days later by an operator from the American Cancer Society.

Another strategy used by charity call centres involves asking people about their current well-being. The operator asks something like “How are you feeling this evening?” Once a person confirms publicly they are in good health it is much harder for the individual to refuse to help people where all is not well. The theory here is that people who have just indicated that they are doing well find it awkward to appear uncaring by not donating money to the needy in this context.

Start small to aim big!

There is also the foot-in-the-door technique which means that by starting with a small request we can often get compliance later on for a much larger request. This can work in two ways.

Firstly it establishes a commitment to a cause which means we are more willing comply with much larger additional requests. Secondly it can change our self-image from a prospect to a customer or a citizen to a supporter of a cause. This latter effect can result in people agreeing to requests that are only remotely connected to the original small favour they complied with.

Deeds are more influential than words!

To understand a person’s attitudes and beliefs we tend to observe their behaviour. Psychologists have discovered that we also look at our own behaviour to guide our feelings and attitudes. Our deeds are much more influential than words when it comes to our inner beliefs.  And writing our thoughts on paper is one way of showing our commitment to a cause.

Writing our ideas on paper is more effective than a verbal commitment because research indicates that the greater the effort we put into a commitment, the more effective it is at influencing our attitudes and behaviour.

Further, a written commitment also acts as physical evidence of our support for a cause and it reduces the likelihood that we might forget or deny the act. In may also be used to persuade other people because we have a natural tendency to believe that written statements accurately reflect the beliefs of the person who made them.

Strategies for conversion:

This is one reason why salespeople will often ask prospects to complete sales agreements as it is one way of getting them to make a small commitment to the purchase. Many organisations also get staff to set their own sales targets and commit to them by writing them down on paper.

Image of testimonials from winkbingo.com and Google Analytics

Testimonial competitions are another commonly used approach to benefit from the commitment phenomena as to have a chance of winning people know they have to be complementary about the product or service in some way. What they don’t realise is that such glowing statements help change their own attitudes towards the product as they begin to believe what they have written.

“We are truest to our decisions if we have bound ourselves to them publically” – Robert Cialdini, Influence

People can be extremely stubborn with their commitment even in situations where accuracy rather than consistency should be the priority. Indeed, research involving the criminal justice system found that hung juries were significantly more common if jurors had to initially indicate their position with a physical show of hands rather than a secret ballot. The act of publicly sharing their initial opinion appeared to make them more reluctant to change their decision later on.

This can be used to good use where we are trying to encourage people to give up a harmful habit such as smoking, over-eating or gambling.  Many weight reduction programs understand that a person’s private commitment is not strong enough to withstand the many temptations that we come across every day. For this reason such programs ask clients to write down their weight targets and share them publicly with other members and family/friends.

Can a commitment change self-mage?

Studies suggest that commitments have most impact upon a person’s self-image and behaviour when they are active, public and effortful acts. In addition the change is most likely to be long lasting if the person own what they have done.

Psychologists found that people are most likely to take ownership of behaviour if they feel they decided to undertake the action without any strong outside pressure. This means that using a large incentive, such as a cash prize, can be counter-productive as the individual may not accept inner responsibility for the act. Thus for people to take ownership of an act it is best to keep any incentives as small as possible.

Here is a summary of the main approaches to obtaining commitment and consistency:

Commitment and consistency is one of the most powerful methods of social influence

 

Implications for conversion rate optimisation:

As Cialdini points out commitment is key. Get visitors to commit to something small, such as giving their email address for access to a white paper or your website and this increases the likelihood that they will perceive themselves as customers. Once they see themselves as customers this increases the chance they may purchase products or services from you.

Ask a simple question:

Lifehack.org is a leading wellbeing and lifestyle blog that publishes tips on how to improve many aspects of your life. When I was researching one of my posts I landed on the site and came across a great example of how to use a small commitment to improve sign-ups.

After about 10 seconds on the site a pop-up is displayed which asks a seemingly innocuous question about self-improvement; “try something different today. Don’t stay stuck. Do better.” If you click on the  “I agree” CTA you are then immediately served an email capture form with the heading “We think so, too!”

Example of how to ask a question to get commitment for improving blog sign-ups

Because you have just agreed that you would like to try something different you feel almost compelled to sign-up to act consistently with how you replied to the first pop-up.  This is a really clever way of using the psychology of commitment to improve sign-up rates.

Become a customer for free!

Whilst working for an insurance company we offered prospects the opportunity to sign-up for a year’s free accidental death cover in return for providing their email address and name and address. Due to the low level of cover and the fact that the probability of an accident causing death are quite small this cost the company relatively little money.

However, we managed to sign up many thousands of new customers from the campaign. We could then  target them with other products that they were now more likely to buy as they were no longer prospects, but customers.

Ask for a review!

For apps get a high rating and a positive review of the user experience by targeting loyal customers. Make sure you then email these users to thank them for their efforts and confirm that their review will be publicly available for all users to see.

Run competitions for slogans, strap lines and testimonials with a promise to display the best ones on your website. Once people have written a positive statement about your brand they are more likely to become a brand advocate and will be a positive influence on other potential customers.

Offer a dream!

JohnChow.com offers advice on how to monetise your blog site. On the homepage there is a great heading in the form of a question – “Do You Dare to Dream?” The very prominent single call to action offers you the chance to download John Chow’s free eBook and “achieve your freedom”. This is a form of commitment as the heading is asking visitors a question and the eBook is a possible solution.

Once you click on the CTA you are served a very simple form asking you to enter your name and email address. As visitors have clicked on the CTA which promises “achieve your freedom” they are likely to feel compelled to complete the form to be consistent with their previous commitment.

In addition, as they will now perceive themselves as customers this should increase the likelihood that they will be prepared to buy one of JohnChow’s  services at some point in the future.

Image of JohnChow.com's email capture form
Image Source:

Consistency for consistency’s sake!

Digital marketers can also fall into the trap of commitment and consistency. Brand guidelines create a strong commitment that most people feel obliged to adhere to. However, applying consistency without thought can harm the user experience and reduce conversion.

I often come across copy that is low contrast and unreadable or the CTA is not prominent because designers have blindly followed brand guidelines. Brand guidelines should not be used as a reason not to think about the design and how it appears to the user. Because brand guidelines cover the whole site there are often instances where they just don’t make sense because guidelines are just that. They should guide, but not be applied automatically without thought.

Below is an example from partycasino.com which uses a  grey font on a black background. The contrast is really poor and the use of pink for hyperlinks is especially distracting.

Image of partycasino.com homepage where the colour pink is used for links

Displaying identical navigation elements in the header across the whole site can result in redundant and distracting navigation tabs on certain pages (e.g. Join Now link shown on a sign-up form). This can also lead to situations where certain navigation elements (e.g. an Options tab) only have one menu item on some pages because of the site structure.

Consistency in design is seen as beneficial because the user becomes accustomed to what to expect from a site. However, this begs the question should we never surprise visitors? The answer to this depends on the context, purpose and quality of the surprise. What is the cost of not surprising visitors compared to the benefits of delivering something unexpected?

Consistency is only one of a number of design principles and sometimes they conflict with one another. If we want to optimise conversion this may sometimes mean making compromises with consistency to give priority to more important elements of the user experience.

Conclusion:

Consistency is a powerful force in social influence that can be employed to nudge users towards desired actions. Remember commitment is the main driver of consistency and it is one of the few persuasive weapons that can also change a person’s self-image. Consistency is such a strong motivator that it can even create habits that will sustain long-term behavioural change. Use it with care and also avoid falling into the trap of consistency for consistency’s sake when making design decisions.

Thank you for reading this post. If you found it useful please share using the social media icons below.

You can view my full Digital Marketing and Optimization Toolbox here.

To browse links to all my posts on one page please click here.

  • About the author:  Neal provides digital marketing optimisation consultancy services and has worked for  brands such as Deezer.comFoxybingo.com, Very.co.ukpartypoker.com and Bgo.com. He uses a variety of techniques, including web analytics, personas, customer journey analysis and customer feedback to improve a website’s conversion rate.
  • Neal has had articles published on website optimisation on Usabilla.com  and as an ex-research and insight manager on the GreenBook Blog research website.  If you wish to contact Neal please send an email to neal.cole@conversion-uplift.co.uk. You can follow Neal on Twitter @northresearch, see his LinkedIn profile or connect on Facebook.

Why are the habits of successful people a myth?

What is a narrative fallacy?

Have you noticed social media’s obsession with the habits of successful people, how politicians suggest simple solutions to complex problems and the appeal of magical ‘silver bullet’ fixes? People like to simplify things as we have a natural desire to understand what causes events and we hate uncertainty. In the book The Black Swan, Nassim Taleb describes how people can’t help but create narratives that do not exist, particularly when those stories confirm our existing beliefs.

Nassim Taleb coined the term narrative fallacy to describe; “our limited ability to look at sequences of facts without weaving an explanation into them, or equivalently, forcing a logical link, an arrow of relationship upon them.” We can see this all the time as people create stories to explain random and unpredictable events as this makes us feel smarter and more in control of our destiny.

“Once your mind is inhabited with a certain view of the world, you will tend to only consider instances proving you to be right. Paradoxically, the more information you have, the more justified you will feel in your views,” – Nassim Taleb, The Black Swan.

Posts describing the habits of highly successful people are a classic example of the narrative fallacy because writers mistake random attributes as causal relationships. There is no one-size fits all answer for how to become successful,  it’s a myth created by bad science.

Image of traits of successful and unsuccessful people
Image Source:

Take this post I saw on LinkedIn which shows the characteristics of successful and unsuccessful people. For each of the attributes shown for successful people I can think of many examples of people at the top of their profession who do not demonstrate these characteristics.

Zappos vs Amazon!

Image of Tony Hsieh and Jeff Bezos

If we look at major e-commerce retailers in the US, Tony Hsieh of Zappos published a best-selling book on the “happy place” culture he created at Zappos. He managed to build a billion dollar company, but so did Jeff Bezos at Amazon and yet he has a completely different approach to corporate culture. Bezos runs a very tight ship in terms of costs and has a “take it or leave it” attitude towards employees. It is not uncommon to hear complaints about the working environment at Amazon from ex-employees.  So, for every Hsieh you are likely to get a Bezos with a successful company doing the very opposite.

Another great example is Donald Trump. He managed to sell a convincing narrative to become the US President, but he doesn’t accept responsibility for his failures. He argues that anything negative is likely to be fake news made up by the media. Further, within the first month after becoming president Trump tried to take credit for immigration and job-creation initiatives that started before he took office. He’s not alone in his approach either as there are lots of successful business people who have succeeded partly because of their arrogant, overconfident attitude as people often mistake confidence with competence.

Trump’s use of fake news is also clearly a strategy to create a narrative fallacy in the minds of his supporters. He wants them to believe that the media are spreading lies about him to convince them that he is the one telling the truth. When it all goes wrong, which I think is inevitable, he will blame everyone but himself for his failure.

Businesses change and so do people!

A further reason why habits of successful people are a narrative fallacy relates to the fact they are usually based upon the characteristics of the individual after they have become successful. For these habits to be indicative of why they became successful they would have had to remained constant throughout their rise from office junior or  start-up founder to being CEO of a billion dollar corporation.

We all know this is complete rubbish as one can’t manage a small start-up in the same way you do a billion dollar business. For a start the complexity of a large corporation requires a very different approach than you would take with a tiny start-up, both in terms of management style and cultural values.

Hard work and luck matter!

Successful people can teach us lessons, but rather than looking at their behaviours, often it is how they approach challenges and define a problem that is more enlightening. Their experience often gives them great insights into how to deal with challenges, but don’t link an ability to be a good business person with how they live their life. What people often forget is that luck and hard work play a significant role in how successful we become in our professional lives.

Implications for Digital Marketing:

Storytelling can be especially dangerous for optimisers as it encourages us to rely on our existing mental models to generate new solutions. This is because we automatically restrict our testing and learning to those ideas consistent with those same mental models and may fail to consider alternatives that don’t fit with our narrative fallacy. As a result you can damage the efficiency of your program by limiting its scope.

When A/B testing it’s also easy to fall into the trap of trying to explain the psychological reasons why the challenger variant beat the default. We can never really be certain why users behave differently when faced with one design compared to another as we don’t have access to the non-conscious brain which makes most decisions. Further, confirmation bias means that our minds automatically focus on reasons that fit in with our existing beliefs and so we are prone to jumping to conclusions that align with our belief system.

Similar to this is the Causation Bias which is our tendency to see a cause and effect relationship in a situation where none exists. This is especially the case where we find a correlation and assume a causation even though there is no known reason or there to be causation.

How to counter the narrative fallacy?

Establishing a strong hypothesis for an experiment based upon scientific evidence before you proceed is an important strategy as this helps us avoid hypothesizing after the results are known (HARKing). Further, be disciplined with data collection and the length of your experiment to avoid cherry picking data points. When deciding how long to run your test ensure you factor in the length of the business cycle and avoid stopping the experiment before you have both a  high level of statistical confidence and a low error rate (usually below 5%).

Avoid communicating changes in conversion rates for tests that don’t reach full statistical confidence. This just encourages people to create narratives that are not based upon reliable data. Unfortunately some marketers who do not understand statistics will put optimisers under pressure to this, but it should be refused on the basis that it will result in narrative fallacies.

Finally, focus on what action you are going to take as a result of the experiment, rather than thinking about why the result happened.

Thank you for reading this post. If you found it useful please share using the social media icons below.

You can view my full Digital Marketing and Optimization Toolbox here.

To browse links to all my posts on one page please click here.

  • About the author:  Neal provides digital marketing optimisation consultancy services and has worked for  brands such as Deezer.comFoxybingo.com, Very.co.ukpartypoker.com and Bgo.com. He uses a variety of techniques, including web analytics, personas, customer journey analysis and customer feedback to improve a website’s conversion rate.
  • Neal has had articles published on website optimisation on Usabilla.com  and as an ex-research and insight manager on the GreenBook Blog research website.  If you wish to contact Neal please send an email to neal.cole@conversion-uplift.co.uk. You can follow Neal on Twitter @northresearch, see his LinkedIn profile or connect on Facebook.

Top Posts of 2016

What happened in 2016?

2016 has been a great year for Conversion-Uplift as I now offer conversion rate consultancy services to a range of organisations. I also migrated from Tumblr to a WordPress and published a Glossary of Conversion Marketing. This has over 250 pages of definitions and examples from the commercial world..

But what caught your imagination most in 2016? Here are my most popular posts of 2016:

1.  How to use card sorting – Card sorting tools to improve website navigation. This post made it to the first page of Google and attracts a lots of visitors to the site.

2. Customer ratings – 6 top E-commerce rating and review platforms to build trust and credibility. This post also got to the first page of Google and is currently the most popular article on the site.

3. Optimisation solutions – Digital marketing toolbox – with over 300 solutions. A regular favourite with anyone wanting to optimise their site or app.

4. Competitor analysis – 10 website audience comparison tools for competitor benchmarking. A popular post since it was published in August.

5. Testing solutions – Which A/B & MVT testing solution should you choose? Now includes AI solution from Sentient Ascend.

6. The EU referendum result – They psychology of Brexit – Why emotions won over logic? A topical subject and a psychological perspective of why the UK voted to leave the EU.

7. Cultural dimensions of optimisation – Cross-cultural website optimization. Cultural differences in visitor preferences can seriously upset the standard template approach to website design.

8. Address look-up solutions – 11 free and paid for address look-up solutions. A must for any sign-up form or check-out process.

9. Referendum & democracy – Referendum a device for demagogues and dictators? Another Brexit post, this time about using referendum to make such important decisions.

10. Psychology of incentives – The psychology of reward and how to motivate your customers. What psychology tells us about creating automatic responses for marketing purposes. 

Many thanks for visiting my website during 2016 and I hope you will continue to return in 2017 and beyond.

To browse links to all my posts on one page please click here.

  • Neal has had articles published on website optimisation on Usabilla.com  and as an ex-research and insight manager on the GreenBook Blog research website.  If you wish to contact Neal please send an email to neal.cole@outlook.com. You can follow Neal on Twitter @northresearch, see his LinkedIn profile or connect on Facebook.

 

The Psychology of Pokemon Go

Learn the psychological secrets of Pokémon Go’s success!

In just two weeks Pokemon Go, the augmented reality smartphone game designed by Niantic, achieved over 21 million active users in the US, more than Candy Crush did at its peak. The game’s popularity has quickly spread in other countries  and it is now becoming a global phenomenon. So, why did Pokemon Go become a such an instant success and what are the psychological buttons that it pressed to create so many engaged users?

1. Nostalgia from a childhood brand:

Pokemon is a brand that has been established and has grown across multiple entertainment categories for over 20 years. This provided Pokemon with the opportunity to target an existing and passionate audience of players who grew up in the 1990’s and wanted to indulge in an old obsession. This instantly helped Pokemon Go establish itself on a new platform (smartphones and tablets) and created the conditions for the game to spread through social networks to a more diverse and younger audiences.

Image of implicit goals
Source: Decode Marketing

The desire for adventure and escapism is just one of a number of implicit psychological goals that motivate brand choice. Using the latest research from psychology and neuroscience marketing consultant Phil Barden has identified 6 key psychological goals that brands can be perceived to meet. The extent to which people perceive that a brand will fully meet certain psychological goals that they find compelling will help determine which one they choose.

Image of Pokemon Go in App store
Source: Pokemon Go, Niantic Inc, iOS App Store

Learning: Leverage brand equity by targeting existing engaged customers to give you a head start to building your app store presence.  Ensure brand communications target appropriate psychological goals that can help generate a strong emotional response to your game or product.

2. Herd mentality:

As social beings our decisions are heavily influenced by what we think other people around us are doing. When in a new or uncertain situation we naturally look to see what other people are doing as a guide to desired behaviour.  Pokemon Go benefited from copy-cat behaviour as our herd instincts assisted the spread of the awareness and adoption of the game through our social networks. Once the number of downloads gave Pokemon Go entry into the download charts this would have further boosted its desirability among trend seekers or gamers unsure about the nature of the game.

 

Top iOS apps in USA for 23rd July 2016
Source: App Annie top iOS apps in USA for 23rd July 2016

 

Learning: Using social proof and encouraging people to interact with your brand across offline and online social networks is a powerful influence on success or failure. How people interact with each other and what they do with your product or idea will determine the nature of your brand, not what you set out in your brand guidelines.

3. Novelty gets attention:

Our brains are hard-wired to be wary of change and so the blending of the real world with the digital world of augmented reality brings fantasy into the game experience in a seamless and engaging manner. This creates a novel user experience that attracts attention. Novelty is a powerful psychological trigger for stimulating our brain. Although augmented reality has been around for a number years, Pokémon Go cleverly integrates it with a real-world game that also activates user’s curiosity.

Image of Pokemon Go Drowzee

Learning: Use novelty to grab attention and create curiosity about your brand.

4. We desire control:

The design of Pokémon Go means that players have a good chance of intercepting a monster where ever they travel. There is no necessity to head for a Pokestop or Gym if it doesn’t fit in with the user’s plans. Monsters often pop-up randomly as players go on their daily business.

Pokémon Go allows players to remain in control and it is up to the user to decide how much effort they want to put into the game. This is important from a psychological perspective as autonomy is one of three basic drivers of human behaviour identified by psychologist Daniel Pink that make people happy and engaged in activities.

Image of Pokemon Go with Venonat showing

 

Learning: Autonomy and our desire to act with choice is something people naturally seek and psychologists believe that it improves our lives. Where possible always offer people choice as we dislike doors being closed or being forced down a particular path.

5. Mastery :

Pokemon Go uses achievements to reward players for progressing through the levels of the game. People love to obtain a high degree of competency in activities they undertake, but can easily get frustrated and abandon a game if a task is not realistically achievable. On the other hand if it is too easy to complete players can lose interest in the game. Pokemon Go achieves a balance by setting a low degree of initial difficulty for new players and using a distance/time barrier to ensure it takes some physical effort to discover more creatures.

Learning: Ensure challenges and tasks are realistically achievable, but not so easy that players lose interest. Mastery is one of our most powerful and intrinsic motivators which drives our passion for achievement.

Pokemon medal for 10 normal Pokemon
Source: Pokemon Go, Niantic Inc

6. Variable ratio schedule reward model:

In the 1950’s the American psychologist B.F. Skinner conducted experiments to understand how people respond to different reward schedules. He discovered that a variable ratio schedule, where the reward is based upon the number of times the task is undertaken, but the timing is randomised to make it unpredictable, is the best method for encouraging repetitive behaviour. This type of schedule encourages people to complete the behaviour over and over again as they are uncertain when the next reward will be received. It is also resistant to extinction by its very nature and can make some behaviour addictive.

Learning: Link rewards to the frequency of the behaviour, but use a variable ratio schedule to make the timing of the reward unpredictable.

Pokemon Go level up 4
Source: Pokemon Go, Niantic Inc

7. Use classical conditioning to obtain an automatic response:

When a user walks near a Pokemon, gym or Pokestop, their smartphone gives an audible buzz. As the players is then rewarded with a new Pokemon or other creature this sound becomes associated with the forthcoming reward in the same way that Pavlov’s dog would salivate at the sound of a bell. Classical conditioning creates automatic behaviours by paring a stimulus (a sound) with a response (search for monster nearby).

Learning: Use audible sounds, smells or movement to create automatic behaviours through classical conditioning by pairing a stimulus with a response. Once users have become conditioned to react in a certain way, you may pair another stimulus to the desired behaviour and create a new automatic response.

Image of Pokemon Zubat before capture
Source: Pokemon iOS app

 

8. We are all social beings at heart:

Unlike most apps, Pokemon Go provides the opportunity to meet new people because it requires you to visit local landmarks and walk to places nearby to find Pokémon’s. As human beings we are hard wired to connect and interact with other people. Indeed, social isolation and loneliness are harmful to our long term health and can trigger depression. Playing Pokemon Go therefore benefits are psychological health by creating opportunities for gamer’s to meet and interact with other people.

 

Image of Pokemon Go gym

Learning: Allow people to share or interact with other people as this is an important human characteristic with many benefits for the individuals concerned.

 

9. We benefit psychologically from walking:

There is increasing evidence to suggest a sedentary lifestyle is harmful to our health and that walking is beneficial from both a psychological and physical perspective. We have an innate desire to get outside and research suggests that walking can reduce depression and our risk of diseases such as diabetes.

 

Learning: Creating a game or product that requires or encourages physical exercise has health benefits for the customer and can create natural breaks in product usage which improves attention and engagement.

Image of Pokemon Go map
Source: Pokemon Go, Niantic Inc

10. Good timing:

Launching the game in the summer and just at the start of the holiday season meant that people are already primed and ready to go outside and explore. We are naturally drawn to sunlight because it increases the amount of vitamin D in our bodies which can help prevent cancer and improves our alertness and mental performance.

Learning: Always consider timing and how it may influence usage to give your product or campaign the best chance of success. Research your audience to identify key factors influencing adoption or likelihood to view your content.

Image of Pokemon Rattata outside Pets at Home store
Source: Pokemon Go, Niantic Inc

 

11. Easy equals true:

The app is so simple and intuitive to use that it does not require any detailed instructions or much practice to become competent. This means there is little friction associated with getting started and this minimises cognitive load which encourages continued engagement with the app.  Many apps are so poorly designed that they require extensive onboarding instructions and navigation aids. Such complexity can cause cognitive strain and frustration which often leads to apps being abandoned.

Learning: If your user interface requires detailed instructions or navigation aids to allow users to learn how to use it you have failed. Keep user interface designs simple and intuitive.

 

Image of Pokemon Gym description
Source: Pokemon Go, Niantic Inc

12. Piggy back on existing habits:

People are creatures of habit and so adoption is much easier if you can piggy back off an existing habit rather than having to create a new habit. Most smartphone users take their devices with them as they go for a walk or travel to the office or the shops. Pokemon Go was therefore able to benefit from habitual behaviour which assisted take-up of the game.

 

Learning: Where possible identify existing habits that your product or campaign can benefit from rather than trying to create a new behaviour.

Image of Pokemon Horsea creature
Source: Pokemon Go, Niantic Inc

13. The power of free:

We are attracted by free apps because people are inherently afraid of loss and free is a powerful motivator because we don’t like to miss out on a bargain. Further, allowing users to play for free minimises the perceived risk of signing up to Pokemon Go because there is no monetary cost to the player if they subsequently find they don’t enjoy the game.

In addition, even partial ownership (e.g. a free trial) tends to make people more attached to what they have and make them focus on what they could lose rather what they may gain. This is why free trials offered by the likes of Spotify and Netflix are so successful.

Pokemon Go generates revenues by players purchasing  virtual coins to exchange for items such as Pokeballs to capture monsters. Once players have moved up a number of levels they may also want to pay to store, hatch, train (in the gym) and battle opponents. Companies also have the ability to sponsor locations to attract players to a real location.

 

Learning: Ownership changes are our perception of things and our aversion to loss makes it more difficult to give up things that we have. For non-fremium apps, offer a free trial to give users ownership and allow them to check out the user experience. To monetise a free app allow players to buy in-app currency to spend on digital goods or enter competitions.

Image of loading screen for Pokemon Go
Source: Pokemon Go, Niantic Inc

 

What should we take out from Pokémon Go’s success?

Good marketing planning and having the right partners for a venture certainly help. Although we may not be lucky enough to have a global brand that has 20 years of heritage behind it, we can still be careful to create a compelling proposition and ensure that implementation is not rushed. What Pokémon Go does show is that if you can align your marketing with human psychology you will benefit from important drivers of consumer behaviour.

Thank you reading my post. If you found this useful please share with the social media icons on the page.

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  • About the author:  Neal provides digital optimisation consultancy services and has worked for  brands such as Deezer.comFoxybingo.com, Very.co.uk and partypoker.com.  He identifies areas for improvement using a combination of approaches including web analytics, heuristic analysis, customer journey mapping, usability testing, and Voice of Customer feedback.
  • Neal has had articles published on website optimisation on Usabilla.com  and as an ex-research and insight manager on the GreenBook Blog research website.  If you wish to contact Neal please send an email to neal.cole@outlook.com. You can follow Neal on Twitter @northresearch and view his LinkedIn profile.