Behavioral engineering

Matskevich Dmitry Co-founder: Flocktory.com, Relap.io Advisory board: Chatfuel.com, Finalprice.com

Behavioral engineering

Brain science behind

Overview

1. Why understanding human decision making mechanics is so important? 2. Brain science for 15 minutes 3. Cases to the point

Bad news

An hour later you will completely forget 80% of this content

Good news to everyone

This will change add new

cognitive toolkit to your pattern

recognition system!

1. Why understanding human decision making mechanics is important? 2. Brain science for 15 minutes 3. Cases to the point

First-Wave View of the Value Proposition

B1 (Vb) + B2 (Vp)

Value from Benefits (tangible/intangible)

Value from Prices

How sensitive is to the benefits and to the price

Second-Wave View of the Value Proposition

B1(C) + B2 (Vb) + B3 (Vp)

• Cognitive value (Emotional) can be shaped by aspects completely unrelated to Vb and to Vp

• One can ignore E and still hope to create a sustainable superior Customer Value Proposition

Third emerging-Wave View of the Value Proposition

B1(C)*{B2 (Vb) + B3 (Vp)}

Interactively shapes Vb, Vp: Not only a superior value proposition, but also Confident decisions, greater commitment, positive word of mouth, and experience utility.

Emotion not reason drive most of our decisions

Where great ideas come from?

Lean startup?

You can’t just test hundreds of hypos and wait if you are was so

lucky to pick the winning one

“There are two kinds of secrets: secrets of nature

and secrets about people”

Peter Thiel

Secrets people don’t know about themselves

Secrets people hide

because they don’t want

others to know

Secrets about people

Your job is to reveal these secrets

Can we just directly ask people about those secrets?

Humans are terrible at predicting the future

By economist Andrew Clark 2007 Life satisfaction

By neuroscientist David Eagleman

Humans are terrible at recalling the past

1. Why understanding human decision making mechanics is important? 2. Brain science for 15 minutes 3. Cases to the point

Getting into others mind 101

Brain is lazy and trying hard to minimize energy consumption

1

Lazy brain => cognitive biases

You can’t just say no to biases

You can’t just say no to biases

Energy for decision making could be more limited resource than money

Kahneman

Opt-in organ Donation

Opt-out organ Donation

4% and 12% in two European countries

86% and nearly 100% in two European countries

People always make snap judgements. What do you fear more?

More than 1 million deaths a year

Several deaths a year

2 You are not alone in your head

People are not rational by design

Prefrontal cortex rationalizes

Amygdala and Limbic system decide

Confabulation

Neurons that fire together wired together

3

People make harsher moral judgments in foul-smelling rooms

(discussed as moral emotion)

Schnall, 2008 in Personality and social psychology

People will judge a stranger to be more generous and carrying than they hold hot coffee vc iced coffee

Williams Senbarg 2008 science

An affect of context and accessibility

The very labels intended to frighten smokers were, in fact, a cue to smoke

Martin Lindstrom in Buyology notes that tobacco warning labels were found to stimulate craving for tobacco.

Our brain is changing itself

Our brain is constantly changing is response to our experience and behavior, reprograming itself on the fly

This means: Technology influences behavior and shapes our habits

Texting – is the fastest-growing behavior within the social over the past five years

Traffic tickets pay rate increased by 50% leveraging the right pattern

Our emotions are programmed with chemicals by evolution

4

Get free dopamine for every check of your fridge

Any flow of events with high variability and low predictability generate stable supply of dopamine

Newsfeeds porn Political porn Apocalyptic porn Sport porn Startup porn

The key factor affecting % of prisoners granted parole - the time that the judge spent after a meal

0%

40%

20%

60%

% o

f p

riso

ne

rs g

ran

ted

par

ole

Time of the day Start of work day End of a day

Morning snack. Lunch

It depends on serotonins level that is influences by age, time of the day, stress

Love formula

1.Stage Oxytocin • Build

relationship • Unlearn

previous habits

2. Stage Dopamine • Craving • Excitement Serotonin • Comfort/Habit • Cognitive ease • Trust

Most of the time you are in zombie mode

Perceived self Real self

5

Habit forming => long-term product success

BJ Fogg framework

The Hook by Nir Eyal

Action Trigger

Investment Variable reward

External Internal External Internal

Are there any free will left?

Most of recent studies our actions and experiences are

shaped at the instinctual level

Stop making vitamin or painkiller products

Make drugs instead

1. Why understanding human decision making mechanics is important? 2. Brain science for 15 minutes 3. Cases to the point

Instagram addiction

Instagram Amplify your personal

experience through social validation

Houzz porn

Houzz Every day something new

to desire

Never ending dopamine – oxytocin cycle

Tinder social validation

Tinder Reduce the cognitive load

of social acceptance

Cognitive toolkit: “Approved by Brain Science”

1. Cognitive ease

Causes and Consequences of Cognitive Ease by Daniel Kahneman

2. Emotions / Emotional design

Lövheim cube of emotion

3. Habits

Nir Eyal Bj Fogg

Good reading

Have you read all these books already?

m.me/dmitry.matskevich telegram.me/dmatskevich

Write me and I will send you more