Brain Powered Online Interactions Online Retailer Melbourne 2016
Katharina Kuehn
Consumer Neuroscientist Director & Co-Founder RDG Insights
RDG Insights Pty Ltd | Member of NMSBA
Page. RDG 2Australian Retail Consumer Study 2012
RDG Insights Pty Ltd | Member of NMSBA
Have your ever wondered …. …why between 95%-98% of visitors don’t convert into shoppers?
…when you visit a retail experience why it just doesn’t feel its you?
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Why your ideal customers are ignoring your messages, products and online shop?
RDG Insights Pty Ltd | Member of NMSBA3
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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What have neurosciences discovered about how we make decisions? 40 bits
Environment
Working Memory
Episodic Memory
Seman/c Memory
cognitive system Self Concept
Our senses take in about 11 million bits of information every second
limbic system Mood
Emo/ons
200 times faster
Non-‐ declara/ve Memory
Behaviour
approach / avoidance engagement purchase decision
Timeline
Subconscious: 95%
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Conscious: 5%
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Emotion vs. Reason
6:1 Page. RDG 7Australian Retail Consumer Study 2012
RDG Insights Pty Ltd | Member of NMSBA
Emotional brand connection becomes critical OPINION explicit rational OPINION (SYSTEM 2 measure) Percentage of people declaring that the given statement describes the brand well. EXP
IMP
STATEMENT 1
69
999
STATEMENT 2
69
500
STATEMENT 3
69
001
DECLARED „YES”
0% to 100%
Percentage of people who AGREE with the given statement.
CERTAINTY 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
RT
Reaction Times
strength & accessibility of attitudes Page. RDG 8Australian Retail Consumer Study 2012
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.
RDG Insights Pty Ltd | Member of NMSBA
Reaction times can reveal true beliefs and motivations
“For me”
“Would recommend” “Brand is on its way up”
Implicit / emotional
Explicit / rational
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Demographic segmentation?
61 years male Income > $1 Million
61 years male Income > $1 Million
Charles, Prince of Wales
Ozzy, Prince of Darkness
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RDG Insights Pty Ltd | Member of NMSBA
The “Big 3“ Emotion Systems
e=mc2
Power, status, dominance
Discovery variety, learning
Stimulance
Dominance Balance
Security, risk avoidance, stability
Haeusel, 2000, Haeusel, Limbic Science 2001, Becker, J. B. et al., 2002; Brown, R. E. 1994; Schulkin, J. 1999; McEwen Page. RDG 11 Australian Retail Consumer Study 2012
11 RDG Insights Pty Ltd | Member of NMSBA
There are 7 LimbicÂŽ Types
Adventurer
Hedonist
Open Minded
Harmoniser
Traditionalist
Discipline Rationality Reason Diligence Precision
Performance Determination Success Efficiency Ambition
Thirst for adventure Rebellion Autonomy Impulsiveness
Curiosity Spontaneity Variety Fun Creativity
Well-Being Pleasure Fantasy Openness Sensuality
Harmony Family Home Trust Care
Tradition Safety Reliability Order Conservatism
Concentration on quality and functionality Love for justice and authenticity Classic style
Success –oriented Competitive Status conscious Opinion leader
Loves challenges Attracted to risk and adventure Unconventional thinker
Happy to try out new things Early-adopter Consumptionoriented
Life-affirming optimist Savoring and imaginative Easy-going
Socially-oriented Family minded creature of habit Lovers of nature attached to their hometown
Risk conscious and security oriented Very brand loyal and attached to local retailers
Demography
Emotional core values
Performer
Personality
Disciplined
13% High socioeconomic status RDG Insights Pty Ltd
5% Highest socioeconomic status
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5% Higher socioeconomic status
12% Medium socioeconomic status
18% Medium socioeconomic status
34% Medium socioeconomic status
14% Medium/Lower socio-economic status
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Diffusion of innovations (Rogers Bell Curve)
2.5%
34%
13.5%
34%
16%
Tipping point Mass market Page. RDG 13 Australian Retail Consumer Study 2012
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Emotional personalisation becomes critical Status, Attracted to scarcity
Followers of the herd, Searching for social proof
Source: Campaign designed by Science Rockstars Page. RDG 14 Australian Retail Consumer Study 2012
RDG Insights Pty Ltd | Member of NMSBA
Impact of the design experience Avant-‐garde, innova(ve & unique
Extravagant, bold bizarre
Experien(al, Individualis(c & crea/ve
Purist, exclusive, strong
Sensual, emo(onal & inspira/onal
Clear, simple, organised
Natural, warm & trustworthy
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Tradi(onal, straigh=orward
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Limbic experience design 194
200 190 180 170 160
150
150 140
125
130 120
105
110
107
100 90
90
80
60
70 60
Adventurer
Performer
Disciplined
Traditionalist
Harmoniser
Open-minded
Hedonist
Q: Which design appeals most to you? (Figures are Index) Page. RDG 16 Australian Retail Consumer Study 2012
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Limbic experience design 150 140
130
130
126
120 110 100
96
90 80
90
85
70
68
60 50
56 Adventurer
Performer
Disciplined
Traditionalist
Harmoniser
Open-minded
Hedonist
Q: Which design appeals most to you? (Figures are Index) Page. RDG 17 Australian Retail Consumer Study 2012
RDG Insights Pty Ltd | Member of NMSBA
Case Study Book Retailing Core customer profiles
Ideal strategic brand positioning
Connecting emotionally with customers
ONLINE SALES UP BY 28% INCREASED SALES IN ALL CHANNELS
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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? Page. RDG 22 Australian Retail Consumer Study 2012
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Scarcity
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Loss aversion “…or you can keep losing customers every day”
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“You can implement these tips to your site“
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Summary
1
2
3
Use emotions to create action …don’t rely on words, facts and features
Ozzie and Charles don’t belong into one bucket
Know which emotional drivers you need to address
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RDG Insights Pty Ltd | Member of NMSBA
Thank you very much for your attention.
RDG Insights Pty Ltd Phone | +61 (0)2 9460 3889 Katharina@rdginsights.com.au
Know your customers better than they know themselves.
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
Member of Neuromarketing Science and Business Association Member of Ebeltoft Group – International Retail Experts Page. RDG 26 Australian Retail Consumer Study 2012
www.rdginsights.com.au RDG Insights Pty Ltd | Member of NMSBA