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DIRECT MAIL & THE BRAIN LESSONS FROM NEUROSCIENCE Diana Lucaci Founder, CEO @dianalucaci

Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

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Breakout speaker Diana Lucaci, Founder of True Impact Marketing talks "Direct Mail and the Brain: New Insights from Neuroscience" at Canada Post's Think Inside the Box 2014 event. Diana Lucaci is the Founder of True Impact, a neuromarketing research and strategy firm serving marketers, market researchers and advertisers. Whether online or in print, all successful marketing and advertising campaigns begin and rely on a solid customer understanding. Knowing your audience makes a big difference when you're looking to stand out from the rest. Read Diana's presentation to gain a better understanding of the brain and how it opens the door to designing new experiences, optimized for the mind, that have a much higher change of converting. To learn more key insights on direct marketing and best practices, visit our blog: http://www.canadapost.ca/directmailworks For updates on future Canada Post events, follow us on Twitter: https://twitter.com/direct_cpc

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Page 1: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

DIRECT MAIL & THE BRAIN

LESSONS FROM NEUROSCIENCE

Diana Lucaci Founder, CEO @dianalucaci

Page 2: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

Best in Class Award, 2014

Page 3: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

CONFESSION

Page 4: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

4"

Page 5: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

5"

Page 6: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

EMOTION

LOGIC

Page 7: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

7"OLD PARADIGM!

Think Do

Page 8: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

8"

Feel Do

EMOTIONS DRIVE ACTION

Page 9: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

POWERHOUSE OF EMOTION

9"

Page 10: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

CUSTOMER INSIGHTS

Page 11: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

11"

WHAT PEOPLE THINK

Page 12: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014
Page 13: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

KNOWING WHO & WHAT

UNDERSTANDING WHY

Page 14: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

BUT ACT ON HOW THEY FEEL

MAY SAY WHAT THEY THINK

Page 15: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

NEUROSCIENCE TECHNOLOGIES

Page 16: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

NEUROMARKETING Neuroscience!

EEG!fMRI!

Biometrics!Eye Tracking!Facial Coding!Heart Rate!Skin Response!

Page 17: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

Visual Awareness

What is likely to be seen or missed.

Software analyses image, and predicts areas of visual focus.

80% - 90% correlation with eye tracking studies.

PREDICTIVE EYE TRACKING

Page 18: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

PREDICTIVE EYE TRACKING (PET)

Page 19: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

Perceived value and quality!Visual awareness!

Emotional engagement !Mental attention !

Visual focus !

EEG sensors collect brain activity. !Eye-tracking measures visual focus.!

EEG & EYE TRACKING

Page 20: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

EEG & EYE TRACKING – IN ACTION

Page 21: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

21"

Page 22: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

SAMPLE RESULTS !

93!

The implicit opinion as per the EEG results show both attention and emotional activation trending downwards for the Hyatt app. When participants were asked what their most preferred phase of the user journey was, a strong majority chose the selection phase, which is in alignment with the emotional and attentional spike elicited during that phase. Both the Booking and checkout phases saw a drop in both emotion and attention, as users attempted to navigate numerous options and lengthy processes. The greatest response to repeat use was the 38% who stated that they will never use the app again, and 31% who will probably use it again in the distant future.

Overall Observations - Hyatt

EEG

Sca

le

User Journey

User Journey

Num

ber o

f Par

ticip

ants

HYATT

Emotion Attention"

Most Liked Least Liked"92!

The Hyatt app loaded quickly and the first image of father and son triggered a high emotional engagement. While it elicited the highest emotional activation point, a sharp decline followed in attention activation for the rest of the phases. Browsing for hotels significantly lowered the emotional engagement and attentional activation of the users, indicating either boredom or frustration. The downward trend continues until the checkout phase, which becomes the lowest point. According to the EEG results, both the emotional and attentional engagement decreased throughout the user journey.

EEG Results - Hyatt

HYATT

Emot

iona

l Eng

agem

ent

Atte

ntio

n Ac

tivat

ion

93!

The implicit opinion as per the EEG results show both attention and emotional activation trending downwards for the Hyatt app. When participants were asked what their most preferred phase of the user journey was, a strong majority chose the selection phase, which is in alignment with the emotional and attentional spike elicited during that phase. Both the Booking and checkout phases saw a drop in both emotion and attention, as users attempted to navigate numerous options and lengthy processes. The greatest response to repeat use was the 38% who stated that they will never use the app again, and 31% who will probably use it again in the distant future.

Overall Observations - Hyatt

EEG

Sca

le

User Journey

User Journey N

umbe

r of P

artic

ipan

ts

HYATT

Emotion Attention"

Most Liked Least Liked"

Page 23: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

23"

Page 24: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

Purchase Intent, Engagement, Salience, Familiarity, Confusion,

Jealousy!

Activation in the n. acc, MPFC, amygdala, etc. !

fMRI records blood oxygenation levels throughout the brain, in 3D. !

FUNCTIONAL MRI

Page 25: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

DIRECT MAIL STUDY

Page 26: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

Is there any difference between physical and virtual

media?

26"

Page 27: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

TANGIBLE MEDIA

27"

•  Becomes

embedded in memory

•  Promotes positive brand association

Page 28: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

•  Deeper footprint in the brain. •  More emotional processing. •  Greater internalization.

28"

Millward Brown: Case Study Understanding Direct Mail with Neuroscience

©2009 Millward Brown

2

Right retrosplenial cortex Bilateral cerebellum

Medial FPC Posterior cingulate into para cingulate

Research Insights

The work conducted on this project, to study the brain’s

reaction to different forms of media, went to a level not seen

before in market research. Some of our key findings were:

Tangible materials leave a deeper footprint in the brainNote: This is not just because the physical materials stimulate

both sight and touch; the subtraction of brain signals from

the scrambled materials accounts for this.

o� Material shown on cards generated more activity within

the area of the brain associated with the integration

of visual and spatial information (the left and right

parietal).

o� This suggests that physical material is more “real” to

the brain. It has a meaning, and a place. It is better

connected to memory because it engages with its spatial

memory networks.

Physical material involves more emotional processing, which is important for memory and brand associationso� More processing is taking place in the right retrosplenial

cortex when physical material is presented. This is

involved in the processing of emotionally powerful stimuli

and memory, which would suggest that the physical

presentation may be generating more emotionally vivid

memories.

o� Physical activity generates increased activity in the

cerebellum, which is associated with spatial and emotional

NB The red area in the images of the brain represents greater oxygenated blood flow (and

hence activation) stimulated by physical ads. The blue areas are regions activated more by

virtual ads. The “cross hairs” highlight the named brain region.

Left parietal

Right parietal

processing (as well as motor activity) and is likely to be

further evidence of enhanced emotional processing.

Physical materials produced more brain responsesconnected with internal feelings, suggesting greater “internalization” of the adso� The medial PFC and cingulate are the parts of the

brain associated with emotional engagement. They are

activated more by physical materials.

o� The brain’s “default network” appeared to remain more

active when viewing direct mail. Activity in this brain

network has been associated with a greater focus

on a person’s internal emotional response to outside

stimuli. This suggests that the individuals were relating

information to their own thoughts and feelings.

While in no way denigrating virtual media, which clearly has

specific benefits in terms of targeting and interactivity, the

study does reveal that there is something special about the

physical medium.

DETAILED NEUROSCIENCE FINDINGS

Millward Brown: Case Study Understanding Direct Mail with Neuroscience

©2009 Millward Brown

2

Right retrosplenial cortex Bilateral cerebellum

Medial FPC Posterior cingulate into para cingulate

Research Insights

The work conducted on this project, to study the brain’s

reaction to different forms of media, went to a level not seen

before in market research. Some of our key findings were:

Tangible materials leave a deeper footprint in the brainNote: This is not just because the physical materials stimulate

both sight and touch; the subtraction of brain signals from

the scrambled materials accounts for this.

o� Material shown on cards generated more activity within

the area of the brain associated with the integration

of visual and spatial information (the left and right

parietal).

o� This suggests that physical material is more “real” to

the brain. It has a meaning, and a place. It is better

connected to memory because it engages with its spatial

memory networks.

Physical material involves more emotional processing, which is important for memory and brand associationso� More processing is taking place in the right retrosplenial

cortex when physical material is presented. This is

involved in the processing of emotionally powerful stimuli

and memory, which would suggest that the physical

presentation may be generating more emotionally vivid

memories.

o� Physical activity generates increased activity in the

cerebellum, which is associated with spatial and emotional

NB The red area in the images of the brain represents greater oxygenated blood flow (and

hence activation) stimulated by physical ads. The blue areas are regions activated more by

virtual ads. The “cross hairs” highlight the named brain region.

Left parietal

Right parietal

processing (as well as motor activity) and is likely to be

further evidence of enhanced emotional processing.

Physical materials produced more brain responsesconnected with internal feelings, suggesting greater “internalization” of the adso� The medial PFC and cingulate are the parts of the

brain associated with emotional engagement. They are

activated more by physical materials.

o� The brain’s “default network” appeared to remain more

active when viewing direct mail. Activity in this brain

network has been associated with a greater focus

on a person’s internal emotional response to outside

stimuli. This suggests that the individuals were relating

information to their own thoughts and feelings.

While in no way denigrating virtual media, which clearly has

specific benefits in terms of targeting and interactivity, the

study does reveal that there is something special about the

physical medium.

Millward Brown: Case Study Understanding Direct Mail with Neuroscience

©2009 Millward Brown

2

Right retrosplenial cortex Bilateral cerebellum

Medial FPC Posterior cingulate into para cingulate

Research Insights

The work conducted on this project, to study the brain’s

reaction to different forms of media, went to a level not seen

before in market research. Some of our key findings were:

Tangible materials leave a deeper footprint in the brainNote: This is not just because the physical materials stimulate

both sight and touch; the subtraction of brain signals from

the scrambled materials accounts for this.

o� Material shown on cards generated more activity within

the area of the brain associated with the integration

of visual and spatial information (the left and right

parietal).

o� This suggests that physical material is more “real” to

the brain. It has a meaning, and a place. It is better

connected to memory because it engages with its spatial

memory networks.

Physical material involves more emotional processing, which is important for memory and brand associationso� More processing is taking place in the right retrosplenial

cortex when physical material is presented. This is

involved in the processing of emotionally powerful stimuli

and memory, which would suggest that the physical

presentation may be generating more emotionally vivid

memories.

o� Physical activity generates increased activity in the

cerebellum, which is associated with spatial and emotional

NB The red area in the images of the brain represents greater oxygenated blood flow (and

hence activation) stimulated by physical ads. The blue areas are regions activated more by

virtual ads. The “cross hairs” highlight the named brain region.

Left parietal

Right parietal

processing (as well as motor activity) and is likely to be

further evidence of enhanced emotional processing.

Physical materials produced more brain responsesconnected with internal feelings, suggesting greater “internalization” of the adso� The medial PFC and cingulate are the parts of the

brain associated with emotional engagement. They are

activated more by physical materials.

o� The brain’s “default network” appeared to remain more

active when viewing direct mail. Activity in this brain

network has been associated with a greater focus

on a person’s internal emotional response to outside

stimuli. This suggests that the individuals were relating

information to their own thoughts and feelings.

While in no way denigrating virtual media, which clearly has

specific benefits in terms of targeting and interactivity, the

study does reveal that there is something special about the

physical medium.

Page 29: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

NEXT STEPS

Page 30: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

NEXT STEPS: ADD TEXTURE

30"

Page 31: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

INTEGRATE WITH MOBILE

31"

Page 32: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

PERSONALIZE

32"

Page 33: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

33"

CONVEY AN EMOTION

Page 34: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

CONCLUSIONS

Page 35: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

TOUCHING SOMETHING •  MAKES IT YOUR OWN •  CLOSES THE DEAL •  ADDS SURPRISE

Page 36: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

•  Engage more senses to trigger more brain activity •  Personalize it to make it memorable •  Engage their emotions to convert

36"

Page 37: Diana Lucaci: Direct Mail and the Brain - New Insights from Neuroscience | Think Inside the Box 2014

Diana Lucaci [email protected] www.trueimpact.ca

THANK YOU