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Persuasion Profiling
       is changing the concept of marketing without you even knowing it!




                                                                      1
Beta Launch presentations Q2 2012
Me
                                    Chief Science Officer PersuasionAPI

                                          Researcher at:
                           University of Tilburg (Assist. Prof. Statistics)
                         Aalto School of Economics (Post-doc Marketing)
                      Stanford University (Visiting Scholar Communications)




                                                                              2
Beta Launch presentations Q2 2012
Q1: What is Persuasion?

      Q2: Does that work?

      Q3: How can we use it?

      Q4: Are all customers the same?

      Q5: How can you use Persuasion Profiles?


Beta Launch presentations Q2 2012                3
Q1: What is Persuasion?
               “...a symbolic process in which
        communicators try to convince other people
           to change their attitudes or behaviors
        regarding an issue through the transmission
           of a message in an atmosphere of free
                          choice.”




Beta Launch presentations Q2 2012                    4
Q1: Persuasion?

       • The goal of persuasion is to change
         someone’s attitudes or behavior.




Beta Launch presentations Q2 2012                     5
                                                      5
Q2: Does that work?
     • Slide reuse the
    “Please   with “Please reuse                        “Please reuse
       towell example towel.
      your towel”      your                               your towel.
                                         Most people     Most people
                                         reused their   who stayed in
                                         towel during      this room
                                          their stay”    reused their
                                                        towel during
                                                          their stay”



Beta Launch presentations Q2 2012                                       6
                                                                        6
It’s how you ask…
             It’s only partly what you want people to do, it’s how you ask it!




                                                                                 7
Beta Launch presentations Q2 2012
6 Principles of Persuasion




                                                 8


Beta Launch presentations Q2 2012                8
                                                 8
Persuasion Online




Beta Launch presentations Q2 2012                       9
                                                        9
Q3: How do we use this?
                            Should we use all the persuasion we can think of?




                                                                                10
Beta Launch presentations Q2 2012
Putting “all at once” to the test:
       1. “100s of others have taken this study before.”
       2. “Professor Ford recommends taking this study.”
       3. “There are only 18 hours left to participate in this study.”


       1. “100s participated, & Professor Ford recommends it. Only 18 hours left.”
       2. “Prof. Ford recommends it, 100s participated, only 18 hours left.”
       3. “Only 18 hours left, & Professor Ford recommends it. 100s took it.”




                                                                                11
Beta Launch presentations Q2 2012
No!
      • Slide with the
      Clicks onexample
        towell multi-principle ads:       .18 %

       And on single principle ads:       .36%


Beta Launch presentations Q2 2012                 12
                                                  12
Q4: Are we all the same?
                            Should we use the same principles for everyone?




                                                                              13
Beta Launch presentations Q2 2012
2 Scenarios:

                                     Average




                                                                                  Average
                                                 Individuals                                  Individuals

         -                                                     +   -                                        +
                          Effect of using a strategy                   Effect of using a strategy




Beta Launch presentations Q2 2012                                                                               14
                                                                                                                14
We are different, but consistent…




                                    15
Beta Launch presentations Q2 2012
Persuasion Profiles
          Wouldn't you like to know how to adjust
      your (online) presence in a way that you increase
    the chance of conversion for each user individually?




                                                          16
                                                          16
Beta Launch presentations Q2 2012
Persuasion Profile:

            Normal Page:

            A1 (Scarcity):

            A2 (Authority):

           A3 (Consensus):
                                                  Effect



            •A persuasion profile is a collection of the
          estimates of the effect of persuasion principles
                     for each individual user


                                                             17
                                                              17
Beta Launch presentations Q2 2012
It’s a new dimension:




                                                        18
Beta Launch presentations Q2 2012
Q5: How is it done?
 How can you use persuasion profiles on your website, in your emails, or
                          in other channels?




                                                                   19
Beta Launch presentations Q2 2012
Step 1: Review your Sales Strategy
                            Implementations



                                           Marketeer




                                                        20
Beta Launch presentations Q2 2012                       20
Step 2: You integrate with the PersuasionAPI
                            Cloud Services


           Your web server                                               PersuasionAPI server

                                    1) Point to PersuasionAPI Service


                                    2) Dynamic adjustments on Page
                                    based on PersuasionAPI adviceid


                                    3) Hooks for user behavior
                                    monitoring (log event, view event,
                                    success event)




                                                                                                21
Beta Launch presentations Q2 2012                                                               21
Example of adjusted page


                                           •1: Log Client ID (e.g. via
                                           dynamic image, cookie, etc)


                                           •2. Link(s) to log success of
                                           the Sales Strategy


                                           •3. Hooks to log non-
                                           responsiveness to a Sales
                                           Strategy




                                                                           22
Beta Launch presentations Q2 2012                                           22
Step 3: We log the success

            Normal Page:

            A1 (Scarcity):

            A2 (Authority):

           A3 (Consensus):
                                                 Effect



        • Based on the dynamic image and the link we can monitor the
          success of each page served to a user.
        • We will keep updates of the average performance of your served
          page variations, and of the performance for each client.



                                                                           23
Beta Launch presentations Q2 2012                                           23
Step 4: We improve our advice

            Normal Page:

            A1 (Scarcity):

            A2 (Authority):

           A3 (Consensus):
                                                             Effect


       • Based on the response of each client we will update our advice for that user
       • The new advice is a combination of the response of that client, as well as that of
         other clients




                                                                                              24
Beta Launch presentations Q2 2012                                                              24
Step 5: User navigates, we improve
                  First page served:                  Second page served:            Third page served:

            Normal:                             Normal:                        Normal:

            A1:                                 A1:                            A1:

            A2:                                 A2:                            A2:

           A3:                                  A3:                            A3:
                                       Effect                         Effect                          Effect



        • And so on, for each individual client...

        • Real time analytics is most effective in predicting
          behavior




                                                                                                           25
Beta Launch presentations Q2 2012                                                                           25
Explore vs. Exploit
                                         What if it’s the first visit?
                                     How much learning do you need?




                                                                         26
Beta Launch presentations Q2 2012
Competing Principles




                                                     27
Beta Launch presentations Q2 2012                    27
It will beat your A/B test…
                                    Optimize conversion over time.




                                                                     28
Beta Launch presentations Q2 2012
And we will get better…
    Optimize the choice of persuasion principles at the level of individual
                                   clients




                                                                       29
Beta Launch presentations Q2 2012
The Persuasion Profiling Case…
                                    How can you be as successful as the others?




                                                                                  30
Beta Launch presentations Q2 2012
Philips Directlife:
      • Slide with the
        towell example




Beta Launch presentations Q2 2012                         31
                                                          31
Philips Reminder Email
      • Slide with$),
      Dear ($ firstname the
        towell example all is well.  It is $3$ days since the last
      How are you doing? We hope
       time you connected your Activity Monitor.

       [ $ Message $ ]

       We would like to remind you to connect it to your PC soon and stay in
       touch with Philips DirectLife
       Sincerely,

       The DirectLife Team 




Beta Launch presentations Q2 2012                                          32
                                                                           32
Scarcity Email
      • Slide with the
      1. We would like to remind you to connect it to your PC soon
        towell example . . . . Today is a great day to start so
         and stay in touch with
              make sure you do not miss out on your participation in . . .
              !

       3. Any chance to connect your Activity Monitor is a chance
          to learn about your own activities. Take the opportunity to
          learn about your activities right now.




Beta Launch presentations Q2 2012                                        33
                                                                         33
Authority Email
      • Slide with coaches recommend frequent uploads of
      1. Experienced the
        towell example will help you to gain more insight
         your activity data. This
              and be more active!

       3. Activity experts recommend moderate to high activity on
          a daily basis and connecting to the . . . platform will help
          you to reach this target!




Beta Launch presentations Q2 2012                                        34
                                                                         34
Social Proof Email
      • Slide with the connect their Activity Monitor
      1. People like you who
        towell examplePC are more likely to benefit from
         frequently with their
              the program and obtain a healthy lifestyle!

       3. 6. Thousands of people are participating actively in the
          program and they stay connected at least once a week.
          Join the group!




Beta Launch presentations Q2 2012                                    35
                                                                     35
The Setup:
      • Slide with the
        towell example          1 . B a s e l in e : U sers assigned to this condition receive the
                                 standard message. This message does not contain any                     No persuasion
                                       implementations of persuasion strategies.

                                  2 . B e s t P r e - t e s t e d : U sers assigned to this
                               condition received randomly one of the messages implementing the
                                         best average (pre-tested) persuasive strategy.                               “Best” average
                                                                                                                         persuasive
                                                                                                     Alternating          messages
                                                                                                                              vs.
                                     3 . R a n d o m: U sers assigned to this condition receive                           Adaptive
                                                                                                           messages
                                         randomly one version of the persuasive message.                       vs.       persuasive
                                                                                                            Adaptive     messages
                                                                                                           persuasive
                                                                                                          messages
                                    4 . A d a p t iv e : U sers assigned to this condition receive
                                             messages suggested by P ersuasionA P I .




Beta Launch presentations Q2 2012                                                                                                      36
                                                                                                                                       36
The Result:
                                          1.0
                                          0.8
                 Probability of Success




                                                                                     Adaptive message
                                          0.6




                                                                                     Original message
                                                                                     Pre−tested message
                                                                                     Random message
                                          0.4
                                          0.2
                                          0.0




                                                0   5    10     15              20          25            30

                                                              Reminder Number




Beta Launch presentations Q2 2012                                                                              37
                                                                                                               37
The Winner:
      • Slide with the
        towell example          1 . B a s e l in e : U sers assigned to this condition receive the
                                 standard message. This message does not contain any                     No persuasion
                                       implementations of persuasion strategies.

                                  2 . B e s t P r e - t e s t e d : U sers assigned to this
                               condition received randomly one of the messages implementing the
                                         best average (pre-tested) persuasive strategy.                               “Best” average
                                                                                                                         persuasive
                                                                                                     Alternating          messages
                                                                                                                              vs.
                                     3 . R a n d o m: U sers assigned to this condition receive                           Adaptive
                                                                                                           messages
                                         randomly one version of the persuasive message.                       vs.       persuasive
                                                                                                            Adaptive     messages
                                                                                                           persuasive
                                                                                                          messages
                                    4 . A d a p t iv e : U sers assigned to this condition receive
                                             messages suggested by P ersuasionA P I .




Beta Launch presentations Q2 2012                                                                                                      38
                                                                                                                                       38
Summarizing the results:
      • Slide with the
      Increase example
        towell in email click-through:
       (at the 5th reminder)
                                         >100%




Beta Launch presentations Q2 2012                 39
                                                  39
Summarizing the results:
      • Slide with the
      Increase example
        towell in email click-through:
       (at the 5th reminder)
                                         >100%

       Increase in e-commerce revenue:   >25%


Beta Launch presentations Q2 2012                 40
                                                  40
Persuasion Profiling
                                      Are you ready to Beta?




                                                               41
                                                               41
Beta Launch presentations Q2 2012
Wow!


       @PersuasionAPI


                    42

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Five questions for Ogilvy

  • 1. Persuasion Profiling is changing the concept of marketing without you even knowing it! 1 Beta Launch presentations Q2 2012
  • 2. Me Chief Science Officer PersuasionAPI Researcher at: University of Tilburg (Assist. Prof. Statistics) Aalto School of Economics (Post-doc Marketing) Stanford University (Visiting Scholar Communications) 2 Beta Launch presentations Q2 2012
  • 3. Q1: What is Persuasion? Q2: Does that work? Q3: How can we use it? Q4: Are all customers the same? Q5: How can you use Persuasion Profiles? Beta Launch presentations Q2 2012 3
  • 4. Q1: What is Persuasion? “...a symbolic process in which communicators try to convince other people to change their attitudes or behaviors regarding an issue through the transmission of a message in an atmosphere of free choice.” Beta Launch presentations Q2 2012 4
  • 5. Q1: Persuasion? • The goal of persuasion is to change someone’s attitudes or behavior. Beta Launch presentations Q2 2012 5 5
  • 6. Q2: Does that work? • Slide reuse the “Please with “Please reuse “Please reuse towell example towel. your towel” your your towel. Most people Most people reused their who stayed in towel during this room their stay” reused their towel during their stay” Beta Launch presentations Q2 2012 6 6
  • 7. It’s how you ask… It’s only partly what you want people to do, it’s how you ask it! 7 Beta Launch presentations Q2 2012
  • 8. 6 Principles of Persuasion 8 Beta Launch presentations Q2 2012 8 8
  • 9. Persuasion Online Beta Launch presentations Q2 2012 9 9
  • 10. Q3: How do we use this? Should we use all the persuasion we can think of? 10 Beta Launch presentations Q2 2012
  • 11. Putting “all at once” to the test: 1. “100s of others have taken this study before.” 2. “Professor Ford recommends taking this study.” 3. “There are only 18 hours left to participate in this study.” 1. “100s participated, & Professor Ford recommends it. Only 18 hours left.” 2. “Prof. Ford recommends it, 100s participated, only 18 hours left.” 3. “Only 18 hours left, & Professor Ford recommends it. 100s took it.” 11 Beta Launch presentations Q2 2012
  • 12. No! • Slide with the Clicks onexample towell multi-principle ads: .18 % And on single principle ads: .36% Beta Launch presentations Q2 2012 12 12
  • 13. Q4: Are we all the same? Should we use the same principles for everyone? 13 Beta Launch presentations Q2 2012
  • 14. 2 Scenarios: Average Average Individuals Individuals - + - + Effect of using a strategy Effect of using a strategy Beta Launch presentations Q2 2012 14 14
  • 15. We are different, but consistent… 15 Beta Launch presentations Q2 2012
  • 16. Persuasion Profiles Wouldn't you like to know how to adjust your (online) presence in a way that you increase the chance of conversion for each user individually? 16 16 Beta Launch presentations Q2 2012
  • 17. Persuasion Profile: Normal Page: A1 (Scarcity): A2 (Authority): A3 (Consensus): Effect •A persuasion profile is a collection of the estimates of the effect of persuasion principles for each individual user 17 17 Beta Launch presentations Q2 2012
  • 18. It’s a new dimension: 18 Beta Launch presentations Q2 2012
  • 19. Q5: How is it done? How can you use persuasion profiles on your website, in your emails, or in other channels? 19 Beta Launch presentations Q2 2012
  • 20. Step 1: Review your Sales Strategy Implementations Marketeer 20 Beta Launch presentations Q2 2012 20
  • 21. Step 2: You integrate with the PersuasionAPI Cloud Services Your web server PersuasionAPI server 1) Point to PersuasionAPI Service 2) Dynamic adjustments on Page based on PersuasionAPI adviceid 3) Hooks for user behavior monitoring (log event, view event, success event) 21 Beta Launch presentations Q2 2012 21
  • 22. Example of adjusted page •1: Log Client ID (e.g. via dynamic image, cookie, etc) •2. Link(s) to log success of the Sales Strategy •3. Hooks to log non- responsiveness to a Sales Strategy 22 Beta Launch presentations Q2 2012 22
  • 23. Step 3: We log the success Normal Page: A1 (Scarcity): A2 (Authority): A3 (Consensus): Effect • Based on the dynamic image and the link we can monitor the success of each page served to a user. • We will keep updates of the average performance of your served page variations, and of the performance for each client. 23 Beta Launch presentations Q2 2012 23
  • 24. Step 4: We improve our advice Normal Page: A1 (Scarcity): A2 (Authority): A3 (Consensus): Effect • Based on the response of each client we will update our advice for that user • The new advice is a combination of the response of that client, as well as that of other clients 24 Beta Launch presentations Q2 2012 24
  • 25. Step 5: User navigates, we improve First page served: Second page served: Third page served: Normal: Normal: Normal: A1: A1: A1: A2: A2: A2: A3: A3: A3: Effect Effect Effect • And so on, for each individual client... • Real time analytics is most effective in predicting behavior 25 Beta Launch presentations Q2 2012 25
  • 26. Explore vs. Exploit What if it’s the first visit? How much learning do you need? 26 Beta Launch presentations Q2 2012
  • 27. Competing Principles 27 Beta Launch presentations Q2 2012 27
  • 28. It will beat your A/B test… Optimize conversion over time. 28 Beta Launch presentations Q2 2012
  • 29. And we will get better… Optimize the choice of persuasion principles at the level of individual clients 29 Beta Launch presentations Q2 2012
  • 30. The Persuasion Profiling Case… How can you be as successful as the others? 30 Beta Launch presentations Q2 2012
  • 31. Philips Directlife: • Slide with the towell example Beta Launch presentations Q2 2012 31 31
  • 32. Philips Reminder Email • Slide with$), Dear ($ firstname the towell example all is well.  It is $3$ days since the last How are you doing? We hope time you connected your Activity Monitor. [ $ Message $ ] We would like to remind you to connect it to your PC soon and stay in touch with Philips DirectLife Sincerely, The DirectLife Team  Beta Launch presentations Q2 2012 32 32
  • 33. Scarcity Email • Slide with the 1. We would like to remind you to connect it to your PC soon towell example . . . . Today is a great day to start so and stay in touch with make sure you do not miss out on your participation in . . . ! 3. Any chance to connect your Activity Monitor is a chance to learn about your own activities. Take the opportunity to learn about your activities right now. Beta Launch presentations Q2 2012 33 33
  • 34. Authority Email • Slide with coaches recommend frequent uploads of 1. Experienced the towell example will help you to gain more insight your activity data. This and be more active! 3. Activity experts recommend moderate to high activity on a daily basis and connecting to the . . . platform will help you to reach this target! Beta Launch presentations Q2 2012 34 34
  • 35. Social Proof Email • Slide with the connect their Activity Monitor 1. People like you who towell examplePC are more likely to benefit from frequently with their the program and obtain a healthy lifestyle! 3. 6. Thousands of people are participating actively in the program and they stay connected at least once a week. Join the group! Beta Launch presentations Q2 2012 35 35
  • 36. The Setup: • Slide with the towell example 1 . B a s e l in e : U sers assigned to this condition receive the standard message. This message does not contain any No persuasion implementations of persuasion strategies. 2 . B e s t P r e - t e s t e d : U sers assigned to this condition received randomly one of the messages implementing the best average (pre-tested) persuasive strategy. “Best” average persuasive Alternating messages vs. 3 . R a n d o m: U sers assigned to this condition receive Adaptive messages randomly one version of the persuasive message. vs. persuasive Adaptive messages persuasive messages 4 . A d a p t iv e : U sers assigned to this condition receive messages suggested by P ersuasionA P I . Beta Launch presentations Q2 2012 36 36
  • 37. The Result: 1.0 0.8 Probability of Success Adaptive message 0.6 Original message Pre−tested message Random message 0.4 0.2 0.0 0 5 10 15 20 25 30 Reminder Number Beta Launch presentations Q2 2012 37 37
  • 38. The Winner: • Slide with the towell example 1 . B a s e l in e : U sers assigned to this condition receive the standard message. This message does not contain any No persuasion implementations of persuasion strategies. 2 . B e s t P r e - t e s t e d : U sers assigned to this condition received randomly one of the messages implementing the best average (pre-tested) persuasive strategy. “Best” average persuasive Alternating messages vs. 3 . R a n d o m: U sers assigned to this condition receive Adaptive messages randomly one version of the persuasive message. vs. persuasive Adaptive messages persuasive messages 4 . A d a p t iv e : U sers assigned to this condition receive messages suggested by P ersuasionA P I . Beta Launch presentations Q2 2012 38 38
  • 39. Summarizing the results: • Slide with the Increase example towell in email click-through: (at the 5th reminder) >100% Beta Launch presentations Q2 2012 39 39
  • 40. Summarizing the results: • Slide with the Increase example towell in email click-through: (at the 5th reminder) >100% Increase in e-commerce revenue: >25% Beta Launch presentations Q2 2012 40 40
  • 41. Persuasion Profiling Are you ready to Beta? 41 41 Beta Launch presentations Q2 2012
  • 42. Wow! @PersuasionAPI 42

Hinweis der Redaktion

  1. Little talk about myself: Maurits Kaptein
  2. I will be talking about persuasion. Means vs. Ends Distinction.
  3. An example of persuasion. 27% more likely. 33% more likely
  4. Briefly go through each of the six: Consensus (previous example) Liking (Similarity wallet example) Expertise (Milgram example) Commitment (Sign in garden example) Scarcity (Abundantly available example) Reciprocity (Free books example)
  5. They are already used online (Scarcity, Concensus, Scarcity)
  6. Important questions
  7. Important questions
  8. Talk about the google add study
  9. Does everyone respond in the same fashion?
  10. Talk through the two scenarios.
  11. What are persuasion profiles?
  12. So for each user its an estimate of what works. Which then can subsequently be used to select content.
  13. That basically is new…
  14. How do you actually use persuasion profiles?