Join Neal Boornazian and Nancy Harhut to discover proven, actionable strategies to leverage behavioral science in your direct mail today, and leave this webinar with a competitive advantage that lets you easily boost your engagement and response rates!
7. Findings
• <1% = ‘alone’ participant mistakes
• 37% = group participant errors
Driving Engagement with Science
8. Marketers’ Human Behavior Advantage
“95% of all purchase
decision-making takes
place in the subconscious
mind.”
— GERALD ZALTMAN
HARVARD BUSINESS SCHOOL
“HOW CUSTOMERS THINK”
Driving Engagement with Science
9. What is Behavioral Science
• The Science of Human
Action
• Insight into why people
make the decisions we do
• How we respond to
stimuli
Driving Engagement with Science
10. The Psychology of Mail
Response influenced by
• Cognitive biases
• Emotional triggers
• Decision context
Driving Engagement with Science
12. Barriers and Levers
What action do we want?
• Why would they do it?
• More importantly…
Why would they NOT do
it?
Driving Engagement with Science
13. Reciprocity: People feel obligated to return favors or
gestures.
Scarcity: Items become more attractive when they are
less available.
Social Proof: People are influenced by the actions and
behaviors of others.
Anchoring: People rely heavily on the first piece of
information offered.
Authority: People tend to follow the lead of credible,
knowledgeable experts.
Consistency: People like to be consistent with their past
behaviors and commitments.
Loss Aversion: People are more motivated by the fear
of losing something than gaining.
Framing: The way information is presented can
influence decision-making.
Emotional Appeal: Emotions play a significant role in
decision-making.
Choice Architecture: The way choices are presented
influences decision-making.
Defaults: People tend to stick with the default option
when faced with choices.
Anchoring-and-Adjustment: People make estimates
based on initial values, then adjust.
Bounded Rationality: People make decisions that are
rational but limited by available information.
Confirmation Bias: People tend to interpret information in
a way that confirms their preexisting beliefs.
Endowment Effect: People ascribe higher value to things
merely because they own them.
Herd Behavior: People tend to follow the actions of a
larger group.
Mere Exposure Effect: People develop a preference for
things they are familiar with.
Status Quo Bias: People prefer things to stay the same by
default.
Temporal Discounting: People tend to prefer immediate
rewards over future rewards.
Self-Serving Bias: People attribute positive events to their
own character but negative events to external factors.
Overconfidence Bias: People tend to overestimate their
own abilities and knowledge.
Anchoring Effect: People rely too heavily on the first piece
of information they receive.
Information Bias: People feel the need to gather more
information even when it doesn't affect the outcome.
Bandwagon Effect: People tend to adopt certain behaviors
or beliefs because others are doing so.
Framing Effect: The way information is presented
can influence decision-making.
Primacy Effect: People remember information
presented at the beginning better than information
at the end.
Recency Effect: People remember information
presented at the end better than information at the
beginning.
Scarcity Heuristic: People judge the value of
something based on its availability.
Representativeness Heuristic: People make
judgments about the probability of an event based
on how closely it resembles other events.
Base Rate Fallacy: People ignore statistical
information in favor of specific cases.
Hyperbolic Discounting: People's preference for
rewards decreases as the delay occurs sooner.
Ambiguity Aversion: People tend to prefer known
risks over unknown risks.
And Many More….
Leveraging the Right Principle(s)
Driving Engagement with Science
14. • Not all behavioral principles will be
equally effective
• Test: Which principles best drive the
desired action?
• Refine and optimize over time
A
B
C
D
E
Leveraging the Right Principle(s)
Driving Engagement with Science
18. 72% inc.; 39% - no contact
Make one gift and
we’ll never ask for
another donation
again
Driving Engagement with Science
19. — 4x, Tulane University
Driving Engagement with Science
20. Would you be
willing to support
WBUR and renew
your membership
for another year?
The choice is yours.
Christopher
Carpenter,
Western
Illinois Univ.
2X
BYAF
Driving Engagement with Science
24. Only $36 –
what some of
us spend on a
lunch date
Driving Engagement with Science
25. In fact, every two
seconds a child
loses their mother
or father in this
world.
Which means in the
time it’s taken you to
read this far, 14 more
frightened children
now face their first
day as orphans.
Driving Engagement with Science
39. A pastor in Zimbabwe
turned away a 3-year-
old orphan girl from
his door because he
had no food for her.
Later, he found out she
died in a ditch.
It broke his heart.
Driving Engagement with Science
40. A ten-year old girl
named Katie walks
into the Museum of
Science with her
classmates.
She’s fascinated by
an interactive exhibit
that lets her recreate
one of Galileo’s
famous experiments.
Driving Engagement with Science
41. Rosemary R. and her
husband were enjoying
their Italian vacation when
they got word that their
connecting flight home
was cancelled due to a
strike in Madrid.
Driving Engagement with Science
42. Stories activate parts of the brain so
that listeners turn the story into their
own idea and experience
Remember:
Driving Engagement with Science
43. PRO TIP:
Make your customer the hero,
not your product or service
Driving Engagement with Science
45. Have you ever heard of
someone who passed away
unexpectedly and left their
family without enough
money?
Driving Engagement with Science
46. “We even had heat
during the last
power outage
thanks to our new
gas insert”
Driving Engagement with Science
47. Certain travel problems are
just out of your control…
flight delays, lost luggage,
missed connections, last
minute emergencies.
Driving Engagement with Science
48. When I get together
with other dentists, I
hear them complain
about paying too
much for their
insurance, not getting
good service, and so
on.
Driving Engagement with Science
49. Stir people’s memories or
imaginations before you ask
them to respond
Remember:
Driving Engagement with Science
52. 1. Autonomy Bias
2. Framing
3. Labeling
4. Storytelling
5. Availability Bias
POLL: Which Principle Did You Find Most Interesting?
Driving Engagement with Science
53. Take-Aways
You…
…have seen proven, actionable strategies to leverage behavioral
science in your direct mail, today
…have learned how to increase measurable results and boost
your engagement and response rates
…leave with a competitive advantage
Driving Engagement with Science
54. Thank You!
Get Your FREE Behavioral
Science Cheat Sheet.
Scan here.
M A R K E T I N G
Driving Engagement with Science
"7 Surprising Tactics That
Motivate Buyer Behavior"
”We’re going to start with a simple poll. So, get ready!
Which line on the right (A, B, or C) Matches the Target Line on the left?
<Read results.>
Looks like everyone got the same answer. The correct answer is “C”. And I bet it came quickly, without too much thought. Almost “reflexively”.
The results we just saw here have – in fact –been proven. In this type of setting, more than 99% of people choose the correct answer.
But… what if I were to tell you that there can actually be a lot more at play here – AND, that this simple question is at the heart of a classic experiment that demonstrates the power of social influence: the Asch Experiment in Conformity?
Dr. Solomon Asch was a pioneer in social psychology… that created seminal pieces of work, including this one on the power of conformity on decision-making.
When Dr. Asch conducted this experiment, he controlled specific variables. And here’s how he did it…
Imagine…instead of being here at this webinar being asked this question…you were instead in a room with others..In real life (IRL, as the kids say)…
And let’s say that every other participant in the room is “in on it” – a “plant”.
In fact, They are told to intentionally choose the SAME, WRONG answer.
In the case illustrated here, the correct answer is Line #2, but the first first four “planted” participants are ALL told to choose Line #3, an incorrect answer. And…their answers are given out loud, prior to that of the only TRUE participant: the person to the right. He/she is the only one making his/her own, unplanned choice.
What would this do? Would this change how people decide -- or which option they choose?
The answer is a resounding YES.
The Asch Experiment revealed that people’s decision making is highly susceptible to social pressure, often conforming to the group even when they KNOW it's wrong. Why is this important for marketers? It highlights the influence of social norms and the power of conformity in shaping CONSUMER behavior….and is one of thousands of illustrations about how things like context, framing, bias and relativity influence our decision making.
Just as we noted, less than 1% of people make mistakes when they are alone.
However, a full 37% of GROUP participants chose the wrong answer, in the conformity study setting.
The study also found – that there are factors that further affect this phenomena. For example…
The Size of the Group: The bigger the majority group, the more people conformed
The Difficulty of Task: The more difficult the task, the greater the conformity
The Lack of Group Unanimity: The absence of consistency in the group lowers overall conformity. In those cases, participant feels less need for social approval of the group.
The Ashe experiment is about conformity which is related to the Behavioral Science principle called “Social Proof”, one of the hundreds of Behavioral Science principles that have been proven to prompt decision making,
Social Proof holds that…. when we’re not sure exactly what to do, we follow the lead of other people -- people like us, people we like or admire. It's why testimonials, or labels like "most popular product," and “numbers of customers served” all work so well in marketing.
Now, let’s expand the aperture -- beyond this one example…
It turns out – Human decisions are not rational.
Gerald Zaltman's quote and findings underscore this --- as well as the significance of understanding human behavior in marketing.
In his book, “How Customers Think”… he shows that the VAST majority (95%!!) of purchase decisions occur subconsciously, driven by things like emotions, biases, and social cues.
So….while we may think that we're in control….we actually aren't even aware of – the factors that play a HUGE role in our decisions: Decisions that effect everything! Including what we read, feel and ultimately....do. And definitely, WHAT DIRECT MAIL RECIPIENTS DO.
The reality is that we couldn’t possibly think of every component part of every decision. There are just too many. We just don’t have enough time. So, we make decisions the way we do – instinctively, reflexively, as a way to conserve mental energy and save time.
Beyond that…Behavioral Science has proven that these methods are PREDICTABLE and can be TRIGGERED or PROMPTED. And that things like interest, intent and action are increased by aligning with these “triggers”.
Before we delve deeper, let's clarify…. What is Behavioral Science?
<NEXT>
It's the scientific study of human behavior through the lenses of psychology, sociology, and neuroscience….And it provides insight into how and why we make the decisions we do – and how we respond to different stimuli in the decision context.
By applying these insights and triggers correctly, Marketers can design more persuasive campaigns….and, for today’s discussion, unlock the full potential of direct mail as a strategic marketing channel.
------------------
Looking more specifically at Mail…
The psychology of mail is much like every other decision context.
However, unlike digital channels, physical mail engages multiple senses and leaves a lasting impression. Research shows that people perceive physical materials as more tangible and trustworthy, making direct mail an even more effective tool for driving consumer behavior.”
With mail (as in every other decision landscape) decisions are driven mostly by biases, emotions, triggers and context.
But the great news for us – is that we can harness that understanding.
How?
By leveraging Science.
WHEN I SAY SCIENCE IN THIS CONTEXT, I’m talking about two kinds of Science.
FIRST, The science of Direct response best practices. When it comes to direct mail, several best practices can enhance effectiveness. From attention-grabbing headlines to compelling visuals, each element plays a role in capturing and retaining recipients' interest. Tried and true methods like…
Segmentation: Separating your target and let your data drive the communications
Personalization: Relevancy lifts response
Keeping copy short and scannable
Focusing on the customer, not your company/offering
Including rational and emotional arguments
Making sure the visuals support the message
Testing and learning – and retesting
AND….SECOND: Behavioral Science.
When added to Direct Marketing best practices, Behavioral science provides a framework for driving engagement and action.
The next question – as we move to execution – is…where and how do we start?
The answer is ….. With a focus is that is squarely on the audience…and their decision context.
If Barriers represent obstacles that hinder their action, and levers are factors or tactics or approaches that overcome them….understanding these elements is crucial for overcoming resistance and driving desired behaviors.
So, we not only need to start with “What Action Do They Want Our Audience to Take” and WHY they would choose to do so ---
we need to truly understand why they WOULD NOT act as we want them to.
THIS is the foundation of understanding the decision context – and for choosing which Behavioral Science principles to leverage.
And there are literally hundreds of principles to choose from…and the field continues to prove out new ones.
The most successful direct mail campaigns – and Direct Response in general -- hinge on leveraging the right behavioral science principles, for the right situation.
Whether it’s anchoring or framing, social proof, or scarcity, or any of the others -- choosing the right principle(s) can significantly impact campaign effectiveness.
Like decision making itself, Behavioral Science principles are wide-ranging. Depending on the context, landscape and application, not all principles will be equally effective.
So, here, too, it’s important to test and learn. To see which principles OR approaches maximize the desired action. So that the approach can be refined, and optimized, over time.
As we conclude this section, remember that … by understanding recipients’ behavior and their barriers to act -- and leveraging the science behind decision-making, we can maximize results – and unlock the full potential of direct mail as a strategic marketing channel.
In the next part of our presentation, Nancy will dive into specific strategies and examples of using behavioral science in your direct mail campaigns. Putting the theory into action!"
Before we take your questions…we’d like to say ”Thank you” and offer you a FREE “Cheat Sheet”, which is called "7 Surprising Tactics That Motivate Buyer Behavior” and covers some additional principles we didn’t touch on today. If you’d like to receive it, please scan this QR Code.
