Katharina Kuehn, RDG Insights

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  • RDG Insights Pty Ltd | Member of NMSBA

    Katharina Kuehn Consumer NeuroscientistDirector & Co-Founder RDG Insights

    Brain Powered Online Interactions

    Online Retailer Melbourne 2016

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 2

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 3

    Have your ever wondered .

    3

    when you visit a retail experience why it just doesnt feel its you?

    Why your ideal customers are ignoring your

    messages, products and online shop?

    why between 95%-98% of visitors

    dont convert into shoppers?

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 4

    We are distracted

    4

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 5 5

    The pace of life is accelerating

    The limbic system likes or dislikes a

    webpage within first

    50ms of exposure

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 6

    Environment

    Our senses take in about 11 million bits of information

    every second

    What have neurosciences discovered about how we make decisions?

    Timeline

    Mood Emo/ons

    Seman/c Memory

    Behaviour

    Working Memory

    Non-declara/ve Memory

    Subconscious: 95% Conscious: 5%

    Self Concept

    Episodic Memory

    cognitive system

    limbic system

    40 bits

    200 times faster

    approach / avoidance

    engagement purchase decision

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 7

    Emotion vs. Reason

    6 : 1

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 8

    OPINION

    Emotional brand connection becomes critical

    CERTAINTY

    EXP IMP

    STATEMENT 1 69 999

    STATEMENT 2 69 500

    STATEMENT 3 69 001

    explicit rational OPINION (SYSTEM 2 measure)

    Percentage of people declaring that the given statement describes the brand well.

    0% to 100% Percentage of people who AGREE with the given statement. DECLARED

    YES

    LOW CERTAINTY - slow reaction time - respondents are uncertain of the declared attitude. MODERATE CERTAINTY average reaction time - respondents have no clear, established attitude. HIGH CERTAINTY - fast reaction time - respondents are certain of the declared attitude.

    n/a Insufficient number of observations to calculate the indicator.

    implicit emotional CERTAINTY (SYSTEM 1 measure) Unique indicator (range: 0-1000) which measures the certainty of the declarations on the basis of time needed to give an answer.

    The faster the reaction, the more solid is the attitude.

    CERTAINTY strength & accessibility of attitudes

    RT Reaction Times

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 9

    For me

    Reaction times can reveal true beliefs and motivations

    Would recommend Brand is on its way up

    Implicit / emotional

    Explicit / rational

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 10

    61 years 61 years male male

    Income > $1 Million

    Income > $1 Million

    Charles, Prince of Wales Ozzy, Prince of Darkness

    Demographic segmentation?

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 11

    The Big 3 Emotion Systems

    11

    Power, status,

    dominance

    Dominance e=mc2

    Discovery variety, learning

    Stimulance

    Haeusel, 2000, Haeusel, Limbic Science 2001, Becker, J. B. et al., 2002; Brown, R. E. 1994; Schulkin, J. 1999; McEwen

    Balance

    Security, risk avoidance,

    stability

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 12

    Dem

    ogra

    phy

    Per

    sona

    lity

    Em

    otio

    nal

    core

    val

    ues

    Disciplined Performer Adventurer Hedonist Open Minded Harmoniser Traditionalist

    There are 7 Limbic Types

    Performance Determination Success Efficiency Ambition

    Discipline Rationality Reason Diligence Precision

    Tradition Safety Reliability Order Conservatism

    Harmony Family Home Trust Care

    Well-Being Pleasure Fantasy Openness Sensuality

    Curiosity Spontaneity Variety Fun Creativity

    Thirst for adventure Rebellion Autonomy Impulsiveness

    Success oriented Competitive Status conscious Opinion leader

    Concentration on quality and functionality Love for justice and authenticity Classic style

    Risk conscious and security oriented Very brand loyal and attached to local retailers

    Socially-oriented Family minded creature of habit Lovers of nature attached to their hometown

    Life-affirming optimist Savoring and imaginative Easy-going

    Happy to try out new things Early-adopter Consumption-oriented

    Loves challenges Attracted to risk and adventure Unconventional thinker

    5% Highest socio-economic status

    13% High socio-economic status

    14% Medium/Lower socio-economic status

    34% Medium socio-economic status

    18% Medium socio-economic status

    12% Medium socio-economic status

    5% Higher socio-economic status

    RDG Insights Pty Ltd

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 13

    Diffusion of innovations (Rogers Bell Curve)

    2.5% 13.5% 34% 34% 16%

    Mass market Tipping point

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 14

    Source: Campaign designed by Science Rockstars

    Emotional personalisation becomes critical

    Followers of the herd, Searching for social proof

    Status, Attracted to scarcity

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 15

    Impact of the design experience

    Experien(al, Individualis(c &

    crea/ve

    Sensual, emo(onal & inspira/onal

    Natural, warm & trustworthy

    Tradi(onal, straigh=orward

    Clear, simple, organised

    Purist, exclusive, strong

    Avant-garde, innova(ve & unique

    Extravagant, bold bizarre

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 16

    Limbic experience design

    16

    Q: Which design appeals most to you? (Figures are Index)

    150

    194

    105 107

    60

    125

    90

    60

    70

    80

    90

    100

    110

    120

    130

    140

    150

    160

    170

    180

    190

    200

    Adventurer Performer Disciplined Traditionalist Harmoniser Open-minded Hedonist

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 17

    Limbic experience design

    17

    Q: Which design appeals most to you? (Figures are Index)

    90

    56

    85

    68

    96

    130 126

    50

    60

    70

    80

    90

    100

    110

    120

    130

    140

    150

    Adventurer Performer Disciplined Traditionalist Harmoniser Open-minded Hedonist

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 18

    Case Study Book RetailingCore customer profiles Ideal strategic brand positioning

    ONLINE SALES UP BY 28%

    INCREASED SALES IN ALL

    CHANNELS

    Connecting emotionally with customers

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 19

    5 tips for instant results

    19

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 20

    The principle of framing

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 21

    Authority

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 22

    Social proof

    Where would you rather eat?

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 23

    Scarcity

    23

  • RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 24

    Loss aversion

    or you can keep losing customers every day

    You can implement

    these tips to your site

  • RDG Australian R