psychology of persuasion - 7 tactics - 2017 02 23

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23 January 2017 Copyright © Econsultancy Psychology: 7 examples of persuasion Increase conversion & loyalty Tim Fidgeon @timfidgeon [email protected] @econsultancy #econlearn

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Page 1: Psychology of persuasion - 7 tactics - 2017 02 23

23 January 2017 Copyright © Econsultancy

Psychology: 7 examples of

persuasion

Increase conversion & loyalty

Tim Fidgeon

@timfidgeon

[email protected]@econsultancy#econlearn

Page 2: Psychology of persuasion - 7 tactics - 2017 02 23

Persuasive design

There are no 100% guarantees

…but you can develop & test

ideas based on these

principles….

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Persuasive design

• Reciprocity

• Commitment & consistency

• Social proof

• Authority

• Liking

• Scarcity

• Paradox of choice

23 January 2017 3

@timfidgeon

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Reciprocity

Waiter’s tip: impact of free sweets (per-person) o No sweet = controlo 1 sweet = +3% tipso 2 sweets = +14%o 1 sweet + an ‘extra’ = + 23%

‘Unofficial’ sweet was unexpected and perceived as ‘just for them’.

Strohmetz, D. B. B. et al (2002) Sweetening the till: the use of candy to increase restaurant tipping. Journal of Applied Social Psychology. Vol32. pp300-309.

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ReciprocityGive away the incentive, then ask for something…

Personal details

File download

Conversion rate = 80%

Completion accuracy = 40%

Conversion rate = 70%

Completion accuracy = 90%

Gamberini, L. et al (2007) Embedded persuasive strategies to obtain visitors’ data: comparing reward and reciprocity in an amateur, knowledge-based website.

Berlin/Heidelberg, Springer.

Personal details

File download

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Persuasive design

• Reciprocity

• Commitment & consistency

• Social proof

• Authority

• Liking

• Scarcity

• Paradox of choice

23 January 2017 7

@timfidgeon

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Commitment & consistency

Loyalty cards…• 8 empty = 19% redeemed• 2 stamps, 8 empty = 34% redeemed

– Average time-to-redeem = quicker– Purchase-frequency increases near to goal

Emphasise how much of task = already completed (by you, or them)

Nunes, J. C. and Dreze, X. (2006) The endowed progress effect: how artificial advancement increases effort. Journal of Consumer Research. Vol.32. pp504-12.

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Commitment & consistency

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Commitment & consistency

• Get a 10-minute ‘no strings’ appointment

– Less commitment involved than a purchase

• Start with a small order…

– …even if it makes no profit, it creates the relationship

Green, F. (1965) The “foot-in-the-door” technique. American Salesman, Vol10. pp14-16.

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Commitment & consistency

Help people change their mind

• Especially important for older

1. Framing statement– “Your previous decision was correct, given the circumstances…”

2. Persuasion statement– “…but circumstances have changed”

o Emphasise your product/service’s consistency with their pre-existing values/action

Brown, S. L. T. Asher and Cialdini, R. B.(2005) Evidence of a positive relationship between age and preference for consistency. Journal of Research in Personality. Vol39. pp517-33.

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Persuasive design

• Reciprocity

• Commitment & consistency

• Social proof

• Authority

• Liking

• Scarcity

• Paradox of choice

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@timfidgeon

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Social proof

People staring up at a tall building….

• 1 researcher, 20% of pedestrians join in/look up

• 5 researchers, 80% of pedestrians join in/look up

Milgram et al (1969)

http://psycnet.apa.org/index.cfm?fa=buy.optionToBuy&uid=1970-00589-001

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Authority

• Researcher illegally crosses road dressed as…

– Workman

– Businessman

• 3.5x people follow the business man

http://www.actionablebooks.com/summaries/influence-the-psychology-of-persuasion/

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Authority

TV reporter with uniform outside a bank, places a sign on cash machine:

“Out of order – give deposits to guard on duty”

10/10 customers handed over their deposits. Only 1

showed any hesitation

– In 2 hours, reporter gained access to over

$10,000 in deposits and account balances

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Authority

Emphasise your…

oCredentials

oReviews

oTestimonials

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Persuasive design

• Reciprocity

• Commitment & consistency

• Social proof

• Authority

• Liking

• Scarcity

• Paradox of choice

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@timfidgeon

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Liking

We’re more influenced by people like us: values, age, gender…

Survey response rates: control = 30%

• Similar name sender-to-recipient = 50%

– Robert Greer / Bob Gregar

– Cynthia Johnston / Cindy Johanson

• Emphasise similarities between brand, staff & clients and potential customer

– Case studies, testimonials…

Garner, R. (2005) Post-It Note persuasion: a sticky influence. Journal of Consumer Psychology. Vol15. pp230-37.

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Liking

Survey response rates

• Cover letter = 36%

• Handwritten message on cover letter = 48%

• Handwritten sticky note = 75%

– Data quality = also higher

Personal requests get better response

Garner, R. (2005)

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Liking

www.nakedwines.com

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Persuasive design

• Reciprocity

• Commitment & consistency

• Social proof

• Authority

• Liking

• Scarcity

• Paradox of choice

23 January 2017 22

@timfidgeon

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Paradox of choice

Customers = unhappy when differences between products are…

• Too few/many

• Unclear/confusing

Guidelines…

• Avoid too much choice (over-proliferation)

• Differentiate/recommend products for customers

– Most popular; Best value; Customer or usage-type; ‘Offer of the

month’…http://en.wikipedia.org/wiki/The_Paradox_of_Choice:_Why_More_Is_Less

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Paradox of choice

Supermarket jam display

• 6 flavours = 30% conversion rate

• 24 flavours = 3% conversion rate

http://www.businessinsider.com/too-many-choices-are-bad-for-business-2012-12

http://www.columbia.edu/~ss957/articles/Choice_is_Demotivating.pdf

http://www.columbia.edu/~ss957/articles/How_Much_Choice_Is_Too_Much.pdf

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Paradox of choice

Differentiate/recommend products for customers…

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Persuasive design

• Reciprocity

• Commitment & consistency

• Social proof

• Authority

• Liking

• Scarcity

• Paradox of choice

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@timfidgeon