6. The great issue in our industry over the last 15
years is that, while there has been an explosion
in the technologies and media available to
marketers, our models and metrics describing
human behaviour and decision-making have
often been left stuck in the 70s.
Rory Sutherland, Vice Chairman, Ogilvy Group
7. Quit smoking
BEHAVIOURAL
CLASSICAL PSYCHOLOGY/ ECONOMICS
ECONOMICS ADVERTISING
Humans are
Consumers are Humans are
“predictably
rational emotional
irrational”
Induce fear or guilt Pre-commitment:
via anti-smoking Pledge to give up
Prohibitive pricing for campaigns smoking in a public
cigarettes forum like Facebook that
Deter using will help people control
grotesque images future behaviour.
8. Ease traffic congestion in Singapore
BEHAVIOURAL
CLASSICAL PSYCHOLOGY/ ECONOMICS
ECONOMICS ADVERTISING
Humans are
Consumers are Humans are
“predictably
rational emotional
irrational”
Fixed fee ($60 per It’s cool to cycle to ERP: Institute a
month) to drive in work. variable “pay for Feel the
pinch!
“restricted zones”. usage” system,
Prohibitive pricing for Make friends by where loss incurred is
car ownership carpooling. made visible every
Increased parking time the option is
charges used.
Increased vehicle
taxes
10. Behavioural economics in a nutshell:
Employing hidden forces
to shape decisions
In making decisions about life and what we buy and do, the
context, framework, interface, medium and pathways through which
we reach decisions may have a greater influence on the decisions we
take than the long-term consequences of the decision.
11. Behavioural economics in digital marketing:
Engineering the smoothest
path to conversion
High
Triggers
succeed here
Motivation
B=MAT
Triggers
fail here
Low
Hard to do Easy to do
Ability
BJ Foggs’ Behavioural Model
33. Status quo bias
People will usually follow the path of least resistance when given
options.
• I’d like to register as an organ • I do not wish to register for organ
donor donation
2
• I’d like to skip this question
1 • I’d like to register
• I’d like to defer my decision
• I’m already registered 3
Default position: Default position:
You are not a willing You are a willing
donor donor
34. 1
2
3
Setting the default position
Set the default, but ease the adoptive
process by providing pre-launch opt-ins
45. Feedback loops in digital marketing
Encourage consumers to
reveal more information about
themselves for a relevant benefit.
46. How many more
miles do I need to
achieve PPS
membership?
Loyalty
Am I on my way to
retaining or losing my
Elite status?
Feedback loops in digital marketing
Compel loyalty by providing
visual progress reports against set goals
50. data FRAMING mobile
SOCIAL PROOF purchase FEEDBACK LOOP
apps LOSS AVERSION social
PARADOX OF
STATUS QUO BIAS crm / loyalty
CHOICE
click throughs COMMITMENT website design
SCARCITY edm RECIPROCITY
Clearly understood principles for driving conversions