Make Them Click

RailsConf 2016

Make Them Click

by Roy Tomeij

The video "Make Them Click" by Roy Tomeij, presented at RailsConf 2016, delves into the strategies of neuro-marketing, emphasizing how businesses can influence consumer behavior by understanding the workings of the human brain. The talk outlines the three main parts of the brain: the 'lizard brain' which controls survival instincts, the midbrain managing emotions and memory, and the neocortex responsible for reasoning and decision-making. By leveraging these insights, marketers can effectively guide customer actions.

Key Points Discussed:
- Understanding Brain Functions: The lizard brain drives survival responses; the midbrain influences emotional reactions and behaviors; and the neocortex allows for reasoning.
- Cognitive Dissonance: Buyers often experience discomfort when their feelings don’t align with reality, leading to changes in reasoning to justify purchases, as illustrated by an anecdote about choosing between an iPad color.
- Buyer’s Remorse: Companies should provide constant reassurance to prevent post-purchase regret, including welcome emails and positive reinforcement.
- Commitment Tactics: Small commitments (like signing up for a trial) that lead to larger ones can effectively convert leads into customers. Apple’s strategy of 'gateway products' showcases this approach.
- Social Validation: People are influenced by the behaviors and endorsements of others. Rating systems on e-commerce websites tap into this desire for social proof.
- Scarcity Marketing: The perceived limited availability of products boosts demand, as seen with historical examples such as Coca-Cola’s marketing failures and Apple product launches.
- Simplifying Choices: Too many options can lead to decision paralysis; companies can benefit by presenting fewer choices or highlighting a mid-range option.
- Reciprocity: Providing free products or information generates a sense of obligation in consumers, prompting them to return the favor.
- Effective Communication: Using storytelling enhances retention and understanding of information, which can be applied in marketing strategies.

In conclusion, Tomeij encourages marketers to embrace these psychological principles to enhance user experience and guide consumer decisions, ultimately leading to higher engagement and conversion rates.

00:00:09.530 Right on! Thanks for being here. I hope lunch was good already. So let's talk about your brain.

00:00:18.180 I'm not talking about my friend Steve's brain; that would be a different story. Like all our other brains, we all have one, supposedly, except for Donald Trump. That's probably a political statement right there.

00:00:31.050 So, your brain—let's cut it in half and look at what's in there. Your brain consists of three main parts. Highlighted here is your old brain, your lizard brain, which is actually quite similar to a reptile's brain because it includes the brain stem and the cerebellum.

00:00:42.030 This part of the brain is tasked with your survival—your fight or flight instinct. Imagine you're walking through the woods, and you encounter a grizzly bear that stops right in front of you. You're staring at it, and this instinct kicks in. It gets your adrenaline going, ensuring your body prepares to react by raising your heart rate, increasing your blood pressure, and tensing your muscles.

00:01:07.770 It even gives you goosebumps, dilates your pupils, and enhances your hearing, making you as aware as a dog. You're then ready to either fight or flee. This is your midbrain, or limbic brain, which gives you long-term, visual, emotional, and muscle memory. So if you're like a copy-and-paste ninja, that's because of this part of the brain. All your shortcuts are stored here, and this area has a strong influence on our behavior.

00:01:31.020 Inside the midbrain, there's the amygdala, found on each side as two almond-shaped clusters that link sensory information to emotions. This function gives emotional value to danger. For example, if you encounter that grizzly bear and decide to fight it but lose, that information is stored by the amygdala. The next time you face a grizzly bear, this will take over and instinctively tell you to start running. That's quite useful!

00:02:11.970 Now, this is your new brain, your neocortex, which includes the prefrontal cortex. This is what we use to think and reason with, and it possesses infinite learning abilities. However, what has been learned cannot be unlearned. You can create stronger bonds that allow one thought to take precedence over another, but you can't simply tell your brain what not to do.

00:02:31.830 For example, I can tell you not to think of a pink elephant. I assume you're thinking of pink elephants right now. The interaction between these three parts of the brain is what makes us human; it's not just our opposable thumbs. It's how we unconsciously use all three parts of the brain for decision-making. We can leverage that to influence others and make them click.

00:03:11.099 Take Usain Bolt from Jamaica. He can run incredibly fast—covering a distance of 200 meters with an average speed of 37.5 km/h. Yes, those are metric units. This is Daniel Cohen, who can run a distance of three kilometers at an average speed of 24.5 km/h. That's pretty fast! And this is a white rhino, which weighs close to 8000 pounds. If it were to chase Usain Bolt and Daniel Cohen, they would both be in serious trouble.

00:03:29.040 This animal is actually 12% faster than Usain Bolt. If that surprises you, you might be suffering from cognitive dissonance, a mental state where discomfort arises when something happens that does not align with how you feel you should feel about what's occurring, what you're hearing, or the decisions you're making. We have a motivational drive to reduce that dissonance by changing our conditions.

00:04:07.169 Let me tell you a story: a few years ago, I wanted to buy a new iPad. I don't usually stand in line for products much, but if I do, it's likely to give more money to Apple. I had to choose between two variations—black and white. So, I stood in line, and it was long—ultimately taking two and a half hours to make the purchase. While queuing, I chatted with other people around me about preferences; I didn't want the black one because who needs a white one?

00:04:50.010 After queuing for two hours, the store manager came out and told us all that we were in luck: we still had plenty of iPads, so everyone would be taken care of. I thought, what about the black ones? In the end, I thought it over for like two minutes. I didn't want the black one; I'd be unique if I had a white one. I realized that all my greasy fingerprints would be more visible on black than on white and that I would scratch it. Those scratches would also be far more visible on black than on white.

00:05:28.440 So, it took me no more than two minutes to change my reasoning and rationalize why I actually wanted a white one. I was genuinely happy they were out of black, as it made me realize I was about to make a terrible decision; buying the white one felt like the right choice. If you hold Apple shares, you're welcome. But we do this all the time. We change the rules to decrease the likelihood of second-guessing later, which tends to happen after making a purchase.

00:06:06.600 We suffer from post-purchase dissonance or buyer's remorse, and we want to prevent that. We want people to feel good about what they've bought. If you run a web app, like software as a service, you need to constantly remind people that they made the right decision so they don't cancel their subscription. Start when they sign up. Send them a welcome email and let them know how much you appreciate them being there. That reinforces a positive feeling.

00:06:54.000 Use wording that targets both new and existing customers. Car manufacturers are particularly good at this. For example, Skoda has the slogan 'Simply Clever,' which tells potential buyers that it's really clever to buy a Skoda while also reinforcing the belief that current owners are clever for making the right choice. To prevent buyer's remorse, let's move on to another tool that's being used on you—commitment.

00:07:39.120 We all have multiple personas at home—I'm a caring husband and father, and at the office, I'm the one who signs off on expenses. We tell stories to ourselves and others about those personas and how we want to be perceived. So, when I'm walking downtown with my three-year-old daughter and someone wearing a green Peace jacket approaches me and asks, 'Do you want your daughter to grow up in a clean world in thirty years with clean oceans?' I feel like my fatherly persona is being triggered.

00:08:18.539 Of course, I want my daughter to grow up in a clean world. When they propose a ten-dollar donation, it's hard to say no because it connects to that persona I want to uphold. Most people will agree to the request. Luckily, I'm aware of these tactics, like Tom's pizza shop, which relies on that sense of obligation. We want to stay true to our personas.

00:08:52.640 We can also have brand personas. For instance, I drink Coca-Cola; some people drink Pepsi. Is anyone here a fan of Pepsi over Coca-Cola? I may be dying of thirst in a desert, and on day three, I might take a sip of Pepsi, but otherwise, I don't order it. It's not just about taste; I've been drinking Coke for a long time and identify as a Coke person. I won’t order a Pepsi. I will be ordering a Coke. That's branding.

00:09:29.780 Apple has done something very smart—probably not on purpose—with their 'gateway products.' Take the original iPod and the first iPhone, which made Apple billions in sales of MacBooks and iPads. These are relatively cheap compared to other Apple products but still more expensive than a lot of other devices. I bought an iPod, which was the best MP3 player available at that time. Years later, the iPhone was launched, and I bought one.

00:10:08.980 Then, when I needed a new laptop, I wasn't going to buy Samsung; Apple had ingrained in my brain that I'm an Apple person. I own Apple products, I like Apple, hence I'm more likely to buy Apple hardware when I need something new. So, we should ask people to commit to something small; in Apple's case, the iPod is a small commitment. If you’re running a web app, try a 30-day trial with no strings attached.

00:10:54.920 Just sign up without needing to provide a credit card and start using it. That small commitment makes it easier to transition into a paying customer. A written commitment is always stronger than any alternative. For instance, suppose there’s a positive review on the Internet about a Canon camera. That one awesome review might lead me to buy the Canon camera, but more importantly, if someone wrote down, 'I think Canon is awesome,' that activates a certain 'Canon' persona within me.

00:11:35.520 This taps into social validation. We all want to belong to a community; there's this big herd, and we all strive to be alike. Think of a short candid camera segment from the 1960s that highlights how people follow suit in social situations. As shown in that example, the gentleman in the elevator tries to maintain his individuality, but little by little, he unconsciously shifts to align with those around him.

00:12:21.680 When he looks at his watch, he’s really making an excuse to turn just a little bit more. The takeaway here is that it's easy to go along with the herd mentality. Imagine walking down the street and seeing two people stopping on the sidewalk—most will start looking up because they feel compelled to join the group in curiosity.

00:12:56.940 Our need for social validation is why we see rating stars on any website; they exist to activate our feelings of belonging. As we see these ratings, we subconsciously validate our decisions to fit in. For instance, on Amazon, there’s a frequently bought together section that's primarily there for social validation; it shows no special deal but that other people have bought the same items.

00:13:40.500 Going back to our example with hotels.com, we have various personas. When looking for my family, I’ll choose a family persona, or when looking for a trip to RailsConf, I’ll choose the business persona. They know that statistics and charts appeal to our old brain, so they present bar charts with precise numbers. 'Four out of five?' No, they say, 'Four point four out of five'—the more precise it seems, the more believable it is.

00:14:21.160 In fact, it applies to YouTube as well—the most viewed video is 'Gangnam Style,' and Justin Bieber's video comes in second. The count at the bottom shows that it has over two billion views and skyrocketed as soon as it was revealed as the most viewed video ever. This sparked curiosity and created a sense of feeling left out for those who hadn’t seen it yet.

00:15:02.200 So, when it comes to reviews, what works best? I might consider buying a new lawnmower and ask my neighbor whether his is any good. If he says, 'Best purchase ever!' that carries weight because I trust him. If I then see an internet review of the same mower claiming it ran over someone without any issues, I'm more likely to trust that review.

00:15:50.450 Now, if I merely see a star rating of four out of five, I’ll naturally lean toward buying it. We do tend to mimic what others are doing—'monkey see, monkey do,' as the saying goes. There’s another psychological aspect tied to scarcity; we especially want things we cannot have and want them immediately.

00:16:30.260 Take the Coca-Cola story from 1985, for example: Pepsi was gradually taking market share, and Coca-Cola decided to change its recipe, recognizing an opportunity to push their new drink. However, classic Coke was abundant everywhere, whereas the new coke was a rare treat. This created scarcity, leading to initial excitement, but ultimately that excitement waned, resulting in a public backlash.

00:17:10.480 That was a very expensive lesson for Coca-Cola, proving that we want the things we can’t have. Look at the Tesla Model 3—there are about 400,000 pre-orders. I'm confident that if there's an actual warehouse with half a million, they wouldn't have sold that many pre-orders. The allure is in the limited availability.

00:18:14.880 In June 2007, when the first iPhone was released, people were lined up to get their hands on it because of the scarcity they were told about. Apple is great at creating hype with new products, insinuating that there might not be enough for everyone, leading people to prioritize getting on the list.

00:19:12.820 It’s similar with Amazon and their deals of the day—if you don't buy today, that deal may not come around again. Scarcity is powerful marketing!

00:19:57.990 For example, a website might offer a back-to-school outfit but include a message that says, 'If you don’t order now, this awesome outfit won’t arrive in time for the first day of school!' That creates urgency. It straddles a thin line of ethical marketing, where creating that scarcity can help sell products.

00:20:42.480 The same principle can apply to information. For instance, a company might pop up a message promising they'll send exclusive information to your inbox if you sign up today. 'Sign up now and don’t miss out!', which serves to create a sense of urgency and prevents potential customers from waiting.

00:21:27.060 We constantly see limited-time offers and limited stock on various products, putting pressure on consumers to act. Think of options like referral codes—Google Wave's massive success relied on such tactics to generate hype about limited accounts available.

00:22:10.420 We like to believe we choose consciously, but more often than not, we get overwhelmed with options. Personally, I enjoy restaurants with just three options on the menu because otherwise, I find it hard to choose. You'll find that people gravitate towards the easy choice instead of delaying their decisions.

00:22:50.000 For instance, consider the Starbucks menu. If you go in and they refer to sizes simply as 'venti,' 'grande,' and 'tall' rather than using 'small,' 'medium,' and 'large,' it becomes much harder for someone unfamiliar with the brand to discern which is which. This tactic drives more customers to the middle option because it’s perceived as standard.

00:23:40.610 Many companies use this same tactic. Highlighting the middle option on a pricing page drives customers toward that selection, simplifying choices that might otherwise overwhelm them. Limiting options can accelerate purchasing decisions, which is essential for driving sales.

00:24:30.930 When it comes to reciprocity, we feel a sense of indebtedness when we receive a favor or a gift. Think of the examples where sending a simple gift—like stroopwafels—helps create that feeling of obligation, without any strings attached. Once people receive something free, they often feel more inclined to return the favor even if it’s subconscious.

00:25:14.810 Meanwhile, offering free information through blogs aids inbound traffic—when someone searches for a solution online and finds a helpful article, they may carry back some subconscious admiration or indebtedness towards the source.

00:26:01.690 Additionally, we have this strong aversion to losing things or missing out. When Instagram changed their terms of service in 2012 to allow selling user content, people were outraged. They felt this loss of privacy and the fear of losing their personal information.

00:27:03.760 Research shows wording matters greatly. Patients instructed about the probability of treatments—in terms of percentages—had differing responses based on the phrasing. A treatment with a 90% success rate led to immediate action, whereas the notion of a 10% failure rate resulted in hesitance.

00:27:44.490 This suggests avoiding alarming language during your product pitches. When sharing info or feedback, turn it into a story to make it relatable. We enjoy stories; they help simplify complex information into more memorable parts. Our brains react better to stories compared to plain text.

00:28:28.370 For example, if you were to revisit this presentation a year later, you might recall only a small fraction of the words but could remember many more images presented today. Therefore, effective communication should leverage stories along with visuals.

00:29:28.380 Let’s recap what we’ve discussed in a hypothetical search for a hotel. You search in Reston, Virginia, and receive results filled with all types of information—pictures, ratings, distances to local landmarks. Specific data, like the point-zero-seven miles distance to the town center, contributes positively to decision making.

00:30:10.370 It builds social validation as you see what others have done and their comments about hotels. There are also mentions of free cancellations, embedding elements of reciprocity, along with scarcity since they can state there are only four rooms left. It serves as a reminder to the decision-maker.

00:30:41.050 Make sure that when selling your product or consultancy, you establish authority. We began with brain science images and purposeful verbiage designed to harness a sense of authority as I speak to you. I aim to establish trust and credibility by explaining these interaction levels.

00:31:13.590 You don’t need to be a psychologist, but with knowledge, you can still present engaging material. I’m just a business owner looking to promote our product, AppSignal. It's the best Ruby on Rails monitoring and performance tracking tool available—and you should follow me on Twitter because I share insightful updates. Thank you very much!