#Advertising 3.0

I recently came across an interesting article on #DigitalPsychology. Here's an excerpt from the article that conveys the crux of it.

Quote

"So when it comes to advertising — if advertisements are based on psychographics it is hard to argue that the decision to purchase something is a free choice — in effect we are being controlled and manipulated through the exploitation of our psychology which is why I used the term Digital Psychology in the title of this article."

Unquote

Advancement in technology, #NeuroScience and availability of customer level data, has changed the game for #DirectMarketing. 

Today successful companies are applying these 3 things for their cross sell Campaigns

1. What to Sell: #AnalyticsPropensity models help identify potential customer base who have high likelihood to buy the product that the company offer.

2. How to Pitch: Intelligence about a customer's likelihood to buy, doesn't mean he/she will buy your Brand. So  #Psychographic #Segmentation on analytical propensity base.

3. How to convey your story in 6 Seconds: Customer has reducing attention span. So by applying #BehaviouralEconomics to craft communication for the psychographic Segments that is

- Energy Efficient (easy & quick to comprehend)

- Motivation for a positive responce by exploiting #Behavioural #Biases

Using above approach, helps deliver high ROI for cross sell campaigns

https://blog.usejournal.com/digital-psychology-why-privacy-is-so-important-for-self-determination-5221908b94ea

Tell #stories. Do not #advertise

Ever wondered why we are able to recall and narrate the story of Mahabharat and Ramayana written ages ago but not the actionable from a meeting that happened a week ago?

Just imagine, if you have to teach your toddler the value of being honest and never lie, which option will you choose?

#Argument - One should be honest and always speak the truth (never lie) because it's good value.

#StoryTelling - The story of a sheaperd boy who cried wolf and when actually the wolf came, the villagers didn't come to save him.

Here are 3 reasons why storytelling works

1. Stories are more persuasive than arguments

2. Stories that match the belief n values of an individual gets registered in brain and is used as input for action

3. When we communicate using stories, we harness the three power of stories -

a) Stories makes complex emotions and messages easy to understand

b) Stories are easy to remember

c) Stories are easy to recall and share

Here's an interesting article that shows how it's being used by advertisers

https://lnkd.in/fWDkg6S

#behaviouraleconomics #decisions #marketing

3 Secrets of Human Mind

Discovery of new frontiers in #Neuroscience has opened up newer dimensions to understand our #mind and it's decision making process.

Here are 3 interesting findings that you can use to achieve success.

1. Conscious thought & emotion (feelings) are a two way street. Happy thought triggers emotion of being happy. Emotion of fear trigger thoughts related to fear. We act basis our emotions.

A communication that triggers a desired thought in the consumer's mind, generates predictable outcomes.....it's the secret recepie for any successful advertisement.

2. According to Harvard Psychologist Amy Cuddy,  when we meet someone for the first time, in our subconscious mind we quickly  try to answer these two questions

- Can I trust this person?

- Can I respect this person? (judging competence)

It's linked to evolution and survival instinct ingrained in our subconscious mind. During stone age, man would first try to guage "Can I trust this person" and then seek an answer to "Is he competent enough to hunt/protect the clan?"

Hence it's important to understand that while competence is valued but only after trust is established. Focussing only on competence backfires.

Trust is established through non verbal cues (body language & behaviour) because sub conscious mind doesn't understand logic and language (because our Sub Conscious Mind is a Pre Language Brain)

3. According to Cissi Williams, a Neuro Liguistic Programing expert, 

Breathing (affects) ---> Posture ---> Inner State/Feelings --->  Behaviour

                    and vice versa

Behaviour (affects) ---> Inner State/Feelings ---> Posture ---> Breathing 

So they are all linked.

Since behaviour and inner feelings generate nonverbal cues that convey message of "Trust", we can influce it by two ways

- Generate a genuine conscious thought/visualise in our mind about trusting the other person, it will trigger corresponding emotions and feelings

- By changing our body posture (& putting a genuine smile) we can change our inner feelings and behaviour.

Say you hate a person, but when you come across him, if you consciously adopt a body posture of expressing warmth and a smile on your face, it will automatically change the inner feeling and consecutively the thought in your mind. You will end up conveying warmth.

Going for an important business deal or trying to sell your product, remember the above insights and it will help you achieve success.

Behavioural Economics (BE) and Poverty

One big insight that Behavioural Economics has provided us is that we have 2 minds

1. Sub Conscious Mind (Auto Pilot) Pre Language Era Mind - Energy efficient. Quick to take decision basis past info/experience, beliefs & emotions
2. Conscious Mind (Pilot) Post Language Era Mind - Energy Guzzler. Slow to take decision basis logic.

Read here to understand the above referred concept.

So all innovations, strategy, new discoveries, critical decisions about career or investment choices requires application of Conscious Mind (Pilot). But remember, it's energy guzzler and limited bandwidth.

Let's get a better perspective how smart people and organisations use this knowledge.

1. I read an article about #SteveJobs. It is said he had limited set of clothings in his wardrobe because he didn't wanted to consume his energy on deciding what to wear to work.
2. Best employees like #Google & #Facebook provides such good office infrastructure and facilities to their employees that takes care of their mental bandwidth consumed for daily personal life decisions like Child's daycare, preparing lunch box to office, commute etc.

Similarly in the life of a poor person, his/her conscious mind (Cognitive ability) bandwidth gets exhausted in daily life decisions like should I buy bus ticket for Rs.10 to reach the local train station 1.5 km away or walk down and save it to eat a Vada Pao?

Hence they are constrained to take decisions that will help them move up the ladder in life because their daily life decisions consume up their Cognitive Ability.

So by application of BE we can make critical decision making easier (energy efficient) for them that will help them make better choices easily. Like simpler & easy to access career councelling / Investment products/Health initiatives etc. Simple and easy to access Govt Social Programs.

Making MEE 5 🌟 Energy Efficient Marketing Communication for Human Mind

#UI/#UX is the science and art of offering an energy efficient experience to our #consumers. Like gadgets, our human brains also runs on energy.

So UI/UX which are #Energy #Efficient (Easy) will be preferred just as we prefer a BEE 5 star device over a BEE 1 star device.

Our #subconscious mind or system 1 or auto pilot is our energy efficient brain (understand feeling/ emotions, beliefs).

Information Processing Capacity - 1,20,000,00 Bits / Sec

Our #conscious mind or pilot or system 2 is an energy guzzler (understands logic/rational).

Information Processing Capacity - Only 40 Bits / Sec

Note: During a day we use 95% SubConscious Mind and only 5% Conscious Mind.

So UI/UX and Communication that gets easily comprehended by our sub conscious mind/auto pilot brain/system 1 (energy efficient one) and have lest involvement of conscious mind/pilot/system 2 is naturally preferred by consumers. Because nature has ingrained in us to be energy efficient.

Let's understand it from this example

5 Super Deals vs 5 ka Dum as headline for communicating about 5 offers.

Which one do you find it easy to comprehend or energy efficient?

Yes you understood the difference.

#BehaviouralEconomics guides us how create UI/UX and Marketing Communication that is energy efficient for your consumers.

Here's a 5 steps framework to create MEE-5🌟 Marketing Communication

Step 1: Identify your Consumer's  beliefs/emotional Triggers

Step 2: Apply Motivation (BE Principles/ human sub conscious mind's biases that you can use)

Step 3: Identify words, images, things, concepts that Consumer's sub conscious mind understands and doesnt have to rely on conscious mind

Step 4: Try how much of it can be said visually (sub Conscious mind comprehends visuals easily and for text it requires conscious mind's involvement)

Step 5: Reduce Psychological Pain

Reduce Behavioural (percieved effort) Cost - if one feels the pain of effort i.e. realisation of standing in a queue vs keeping Consumer engaged while in queue so he doesn't realise the pain

Reduce Money Cost - Our brain feels the pain when spending money. Rs. ,999 doesn't give same amount of pain as Rs.1000

By applying these 5 steps, the output you get is MEE 5🌟 

Modi 2.0 Embracing Behavioural Economics for Growth

#EconomicSurvey draws on #BehaviouralEconomics to lay the roadmap for #growth.

I was happy to read this news:

https://lnkd.in/eBwc6cW

Behavioral Economics is an emerging science embraced & institutionalized by #Governments and #Corporates across the globe since #Richard H Thaler won the #Noble for Behavioral Economics in 2017.

The power of Behavioral Economics:
Once you understand how our brain works (its inherent biases), you can successfully (and ethically) move people towards taking an action you want them to take.

Here are 2 #global examples to help you appreciate the emerging trend

1. UK Govt Cabinet has a Behavioral Insights Team (BIT) to improve government policy and service as well as to save the UK Govt Money.

2. #DanAriely (author of NYT Best seller "Predictably Irrational - The hidden forces that shape our decisions)as its chief behavioral officer, Lemonade is the first peer-to-peer insurance company rapidly gaining “crazy market share” by building on fundamental principles of behavioral science -

https://lnkd.in/eFaXMKx

Why these things hurt us more?

It's that time of the year when we eagerly wait to recieved our bonus and increment letter.

A couple of years ago, my #team #member having recieved the best rating with a double digit increment was still unhappy because her colleague got an increment 0.3% higher than her.

Let's decode this from the lens of #BehaviouralEconomics.

1. We humans percieve #conspicuous and #inconspicuous consumptions differently.
2. Conspicuous consumption are such things that are visible to others and a consumer treat it as a symbol of their stature or success. i.e.  Salary Increment, the Car you drive, Credit Card you takeout to pay when your friends are around, mobile phone you carry, the Brand of clothes you wear etc
3. Inconspicuous consumption are such things that are consumed more privately. Hence Consumer believe in the absolute value, irrespective of someone having better than them. i.e. Grocery,, Parenting efforts etc.
4. Diminishing value of conspicuous consumption. In early 2000 when I started my career, owing a Credit Card was a big achievement, even though it was silver one. Over time I kept climbing the tiers to Gold, Titanium, Platinum, Signature & flet better. What consumers didn't realise was that Credit Card companies kept debasing their platforms. So today's Platinum platform is early 2000 entry level platform Silver/Gold. Credit Card companies like #Visa #MasterCard kept adding new levels to meet the consumers Conspicuous Consumption needs.

This topic reminds me of the famous Onida Ad

"Onida, neighbour's envy owners Pride"