boost email marketing revenue with the power of consumer psychology
TRANSCRIPT
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by nemoa
Marketing to the Mindsof Catalog and Etail ShoppersSeptember 14-16, 2016
Boost Your Email Marketing Revenue with the Power of Consumer Behavior Holly WrightEmail Marketing ManagerPhoenix Direct
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BackgroundAbout Me
• Email Marketing Manager at Phoenix Direct• 8 Years of Digital Marketing Experience• MBA, Entrepreneurship & Consumer Marketing• BS in Industrial Design, Georgia Tech
About Phoenix Direct• 3rd Party Logistics Provider• Creative, Marketing & Ecommerce Agency
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Agenda3 Psychologists10 Principles of Consumer BehaviorReal-life ExamplesInfluence Checklist
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Actionable TakeawaysBackground and definitionsHow and when to use eachPrinciples of Influence Checklist
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About the ResearchersRobert CialdiniKit YarrowDan Ariely
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Robert CialdiniSocial PsychologyTheory of InfluencePh.D. from UNC and post-graduate training from Columbia University both in Social Psychology.Spent 3 years undercover working at used car dealerships, fund-raising organizations, and telemarketing firms
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Kit YarrowConsumer PsychologyFocus on MillennialsPh.D. in PsychologyHas conducted hundreds of interviews and “shop-alongs” to study the trends that transform shopping behavior
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Dan ArielyBehavioral EconomicsDecision MakingPh.D. in Cognitive PsychologyA second Ph.D. in Business AdministrationInspired by his experiences in the burn unit after a serious explosion burned 70% of his body
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10 Principles of Influence
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#1 - ReciprocityWhen we receive a gift or a favor, we are obligated to try and repay the favor in kind
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#1 - ReciprocityWhen we receive a gift or a favor, we are obligated to try and repay the favor in kindNuances of the rule:
• It’s overpowering• It applies to uninvited debts• It can trigger unequal responses
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#2 – Commitment & Consistency
We’re likely to make future decisions that match our past behavior
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#2 – Commitment & Consistency
We’re likely to make future decisions that match our past behaviorNuances of the rule:
• It can escalate from small to much larger commitments quickly
• Commitments “grow their own legs” when people find new reasons to support previous decisions
• It can compel people to put themselves in harm’s way
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#3 – Social ProofWe look to others to determine how to behave, especially in uncertain situations
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#3 – Social ProofWe look to others to determine how to behave, especially when we’re uncertainNuances of the rule:
• It is applicable under a range of activities• Uncertainty is a big factor• Similarity is a strong factor
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#4 - LikingWe prefer to say yes to requests from people we know and like
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#4 - LikingWe prefer to say yes to requests from people we know and likeNuances of the rule:
• Attractiveness is a factor• Similarity increases likeability• Compliments make people like you—if they’re true• People form associations easily• Exposure increases familiarity
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#5 - AuthorityWe have a deep-seated sense of duty to follow and react to authority symbols
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#5 - AuthorityWe have a deep-seated sense of duty to follow and react to authority symbolsNuances of the rule:
• We respond more to symbols than actual authority(e.g. a white coat vs. a doctor)
• We associate honesty with authority• Authority can be assumed with positioning
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#6 - ScarcityWhen something is less available to us, we want it more
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#6 - ScarcityWhen something is less available to us, we want it moreNuances of the rule:
• Time can be scarce• Quantities can be scarce• Value can be scarce• Information can be scarce• Exclusive access is scarce• Newness can be scarce
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#7 - RelativityWe compare things with one another to make decisions, and we tend to focus on comparing things that are easily compared
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#7 - RelativityWe compare things with one another to help us make decisionsNuances of the rule:
• We tend to focus on comparing things that are easily compared
• A decoy can help us rationalize buying something we didn’t previously want
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#8 - The Power of PriceConsumers’ willingness to pay for something can be easily manipulated
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#8 - The Power of PriceConsumers’ willingness to pay for something can be easily manipulatedNuances of the rule:
• Without context, we do not know how much to pay for a particular item, especially a luxury item
• When we have bought or committed to buying something in the past, that price anchors us for future purchases that are similar
• We get what we pay for, and discounting can diminish perceived value
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#9 - Emotional AppealsWe are wired to seek an emotional connection to the brands and products we buy
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#9 - Emotional AppealsWe are wired to seek an emotional connection to the brands and products we buyNuances of the rule:
• Find tribes that align with your products• Excite people with innovation• Build trust with honesty• Use humor to make a connection• Have a mission
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#10 - SimplicityWhen we are overwhelmed with choices, we often avoid making any decision at all
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#10 - SimplicityWhen we are overwhelmed with choices, we often avoid making any decision at allNuances of the rule:
• Simplify your offerings where it makes sense• Turn complex programs into simple transactions• Put your differentiators front and center• Cut down on the work of comparison shopping
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RecapChoose your tactics strategicallyThink about your goal and your brand firstDon’t try to use all of them at once!
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Reciprocation: We feel obligated to repay someone when they have given us something.
Offer free information Offer free service/product Offer free gift Write in your own: _______________
Commitment and consistency: Once we make a decision or take a stand, we are likely to make future decisions that match past behavior.
Ask users to take an action Click a button to agree or confirm Download content Visit the website
Use previous commitment to your benefit Remind users of products they have viewed Position newsletter subscription as a previous
commitment Write in your own: _______________
Social proof: When we’re unsure of something, we validate our decisions based on what other people think is correct.
Suggest services or products based on what others like Utilize testimonials or reviews Integrate social media Show photos of others using your product or service Write in your own: _______________
Liking: We say “yes” to individuals we know and like. Use photos of smiling, happy people Utilize celebrity endorsements Show user’s friends or peers who use your product
or service Associate your company with positive things Use imagery of people in your users’ demographics Write in your own: _______________
Authority: We follow and react to authority symbols.
Show people in uniforms Show (or create your own) certification logos Show logos of well-known companies who
use your product or service Use copy that positions you as the expert Write in your own: _______________
Scarcity: If something is less available to us, we want it more. Include limited time offers Position timely content as going away soon Add expiration date to your current offerings Use deadlines to your advantage Write in your own: _______________
Consumer Behavior Principles ChecklistBy Holly Wright, Phoenix Direct (@hollygowrightly)
Relativity: We tend to compare things that are easily compared in order to make decisions.
Provide a decoy Carry a higher priced item for comparison,
even if it is in very limited quantities Make the comparison as easy as possible Write in your own: _______________
Pricing: We tend to get what we pay for, but we’re also bargain hunters.
Target sale buyer differently than full price buyers Use coupons judiciously Price luxury items to convey the value that you want
your shoppers to perceive Have a theme for ongoing or recurring deals When discounting isn’t an option, offer a free gift or
exclusive access instead Write in your own: _______________
Emotional Appeal: We are wired to seek emotional connections from the brands we buy
Demonstrate empathy and humanity Build trust with consistency and a
customer service approach Use humor Have a secondary mission or purpose Align your business with a charity or cause Write in your own: _______________
Simplicity: When we’re overwhelmed with choices, we make no choice at all.
Simplify your offerings, where it makes sense Turn complex program into simple transactions Put your differentiators front and center Cut down on the work of comparison shopping Write in your own: _______________
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Recommended Reading
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by nemoa
Marketing to the Mindsof Catalog and Etail ShoppersSeptember 14-16, 2016
Thank you!Holly WrightEmail Marketing ManagerPhoenix Direct
@[email protected](770) 667-8833 x 125