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TURBOCHARGING RESPONSE THROUGH BEHAVIOURAL SCIENCE MEREDITH NILES – HEAD OF FUNDRAISING INNOVATION @meredithniles 8 October 2014

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Topic: How Behavioural economics can turbocharge your fundraising results * What fundraisers and marketers can learn from leading behavioural economists (e.g. Daniel Kahneman, Robert Cialdini) * How insight from behavioural economics can be applied to fundraising to increase conversion and average donation levels * Examples of how charities have used principles such as social proof, reciprocity, and framing successfully in their appeals * Practical tips for applying behavioural economics in your work - achieve quick wins today!

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Page 1: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

TURBOCHARGING RESPONSE THROUGH BEHAVIOURAL SCIENCE

MEREDITH NILES – HEAD OF FUNDRAISING INNOVATION

@meredithniles

8 October 2014

Page 2: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising
Page 3: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

“It took millions of years for man’s instincts to develop. It will take millions more for them to even vary. It is fashionable to talk about changing man. A communicator must be concerned with unchanging man, with his concerned with unchanging man, with his obsessive drive to survive, to be admired, to succeed, to love, to take care of his own.”

-- Bill Bernbach

Page 4: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

“SYSTEM 1” VS “SYSTEM 2”

Page 5: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

STARTING POINT: THE “LAZY BRAIN”

Page 6: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

STARTING POINT: THE “LAZY BRAIN”

Page 7: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

STARTING POINT: THE “LAZY BRAIN”

Page 8: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

THE LAZY BRAIN

Page 9: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

WHY THIS MATTERS:LOTS OF NOISE!!!

Average Contact by Medium (seconds)

Advert in popular magazine 1.7

Advert in trade journal 3.2Advert in trade journal 3.2

Poster 1.5

Mailing (first relevance check) 2

Banner ad 1

Source: Decoded: The Science Behind Why We Buy

Page 10: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

HEURISTICS

Page 11: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

SOCIAL PROOFMACMILLAN

Page 12: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

BYSTANDER EFFECT

Page 13: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

BYSTANDER EFFECT

Page 14: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

BYSTANDER EFFECTBRITISH RED CROSS

Page 15: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

IDENTIFIABLE VICTIMSAVE THE CHILDREN

Page 16: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

COMMITMENT AND CONSISTENCYFRIENDS OF THE EARTH

Page 17: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

RECIPROCITY

Page 18: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

RECIPROCITYNSPCC LETTER FROM SANTA

Page 19: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

MONEY ILLUSION

We tend to concentrate on the face value of money more so than on what it could purchase

Page 20: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

MONEY ILLUSIONSAVE THE CHILDREN

Page 21: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

SCARCITY VALUE

Page 22: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

READING LIST

“Thinking Fast and Slow” – Daniel Kahneman

“Influence: The Psychology of Persuasion” –Robert Cialdini

“Decoded: The Science Behind Why We Buy” – Phil “Decoded: The Science Behind Why We Buy” – Phil Barden

“Brainfluence: 100 Ways to Persuade and Convince” – Roger Dooley

“Made to Stick” – Chip and Dan Heath

“Predictably Irrational” – Dan Ariely

Page 23: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

TWITTER HANDLES TO FOLLOW

@RobertCialdini

@TheScienceOfUs

@DanAriely

@RogerDooley@RogerDooley

@PhilBarden

@RorySutherland

Page 24: Charity Marketing Conference - Meredith Niles - Behavioural Economics to Turbocharge your Fundraising

TURBOCHARGING RESPONSE THROUGH BEHAVIOURAL SCIENCE

MEREDITH NILES – HEAD OF FUNDRAISING INNOVATION

@meredithniles

8 October 2014