RDG Insights Pty Ltd | Member of NMSBA
Katharina Kuehn Consumer Neuroscientist Director & Co-Founder RDG Insights
Brain Powered Online Interactions
Online Retailer Melbourne 2016
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Have your ever wondered ….
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…when you visit a retail experience why it just doesn’t feel its you?
Why your ideal customers are ignoring your
messages, products and online shop?
…why between 95%-98% of visitors
don’t convert into shoppers?
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We are distracted
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The pace of life is accelerating
The limbic system likes or dislikes a
webpage within first
50ms of exposure
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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
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Emotion vs. Reason
6 : 1
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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
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“For me”
Reaction times can reveal true beliefs and motivations
“Would recommend” “Brand is on its way up”
Implicit / emotional
Explicit / rational
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61 years 61 years male male
Income > $1 Million
Income > $1 Million
Charles, Prince of Wales Ozzy, Prince of Darkness
Demographic segmentation?
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The “Big 3“ Emotion Systems
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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
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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
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Diffusion of innovations (Rogers Bell Curve)
2.5% 13.5% 34% 34% 16%
Mass market Tipping point
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Source: Campaign designed by Science Rockstars
Emotional personalisation becomes critical
Followers of the herd, Searching for social proof
Status, Attracted to scarcity
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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
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Limbic experience design
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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
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Limbic experience design
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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
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Case Study Book Retailing Core customer profiles Ideal strategic brand positioning
ONLINE SALES UP BY 28%
INCREASED SALES IN ALL
CHANNELS
Connecting emotionally with customers
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5 tips for instant results
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The principle of framing
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Authority
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Social proof
Where would you rather eat?
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Scarcity
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Loss aversion
“…or you can keep losing customers every day”
“You can implement
these tips to your site“
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Summary
1
Use emotions to create action …don’t rely on
words, facts and features
2
Ozzie and Charles don’t
belong into one bucket
3
Know which emotional drivers
you need to address
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www.rdginsights.com.au Member of Neuromarketing Science and Business Association Member of Ebeltoft Group – International Retail Experts
RDG Insights Pty Ltd Phone | +61 (0)2 9460 3889 [email protected] Let’s keep in touch: Linked in http://www.linkedin.com/in/katharina-kuehn-07190a34?trk=nav_responsive_tab_profile Twitter https://twitter.com/RDG_Insights
Know your customers better than they know themselves.
Thank you very much for your attention.