Five questions for Ogilvy

1Beta Launch presentations Q2 2012

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

Persuasion Profiling


Chief Science Officer PersuasionAPI

Researcher at:University of Tilburg (Assist. Prof. Statistics)

Aalto School of Economics (Post-doc Marketing)Stanford University (Visiting Scholar Communications)

Me

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?


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.”



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

Q1: Persuasion?

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• Slide with the towell example


Q2: Does that work?

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“Please reuse your towel”

“Please reuse your towel. Most people reused their towel during their stay”

“Please reuse your towel. Most people

who stayed in this room

reused their towel during their stay”


It’s only partly what you want people to do, it’s how you ask it!

It’s how you ask…


6 Principles of Persuasion

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Persuasion Online

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Should we use all the persuasion we can think of?

Q3: How do we use this?


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.”

Putting “all at once” to the test:



No!

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Clicks on multi-principle ads: .18 %

And on single principle ads: .36%


Should we use the same principles for everyone?

Q4: Are we all the same?


2 Scenarios:

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Effect of using a strategy

Avera

ge

Individuals

+-

Individuals

Effect of using a strategy

Avera

ge

+-


We are different, but consistent…


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?

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Persuasion Profile:

•A persuasion profile is a collection of the estimates of the effect of persuasion

principles for each individual user

Normal Page:

A1 (Scarcity):

A2 (Authority):

A3 (Consensus):

Effect

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Normal Page:

A1 (Scarcity):

A2 (Authority):

A3 (Consensus):

Effect

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It’s a new dimension:

Beta Launch presentations Q2 2012


How can you use persuasion profiles on your website, in your emails, or in other channels?

Q5: How is it done?


Step 1: Review your Sales Strategy Implementations

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Marketeer


Step 2: You integrate with the PersuasionAPI Cloud Services

1) Point to PersuasionAPI Service

Your web server PersuasionAPI server

2) Dynamic adjustments on Page based on PersuasionAPI adviceid

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

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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

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Step 3: We log the success

• 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.

Normal Page:

A1 (Scarcity):

A2 (Authority):

A3 (Consensus):

Effect

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Step 4: We improve our advice

• 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

Normal Page:

A1 (Scarcity):

A2 (Authority):

A3 (Consensus):

Effect

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Normal Page:

A1 (Scarcity):

A2 (Authority):

A3 (Consensus):

Effect


Step 5: User navigates, we improve

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

• Real time analytics is most effective in predicting behavior

Normal:

A1:

A2:

A3:

Effect

First page served:

Normal:

A1:

A2:

A3:

Effect

Second page served:

Normal:

A1:

A2:

A3:

Effect

Third page served:

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What if it’s the first visit?

How much learning do you need?

Explore vs. Exploit


Competing Principles

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Optimize conversion over time.

It will beat your A/B test…


Optimize the choice of persuasion principles at the level of individual clients

And we will get better…


How can you be as successful as the others?

The Persuasion Profiling Case…



Philips Directlife:

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Philips Reminder Email

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Dear ($ firstname $),

How are you doing? We hope all is well. It is $3$ days since the last 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 DirectLifeSincerely,

The DirectLife Team



Scarcity Email

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1. We would like to remind you to connect it to your PC soon and stay in touch with . . . . Today is a great day to start so make sure you do not miss out on your participation in . . . !

2. 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.



Authority Email

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1. Experienced coaches recommend frequent uploads of your activity data. This will help you to gain more insight and be more active!

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



Social Proof Email

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1. People like you who connect their Activity Monitor frequently with their PC are more likely to benefit from the program and obtain a healthy lifestyle!

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



The Setup:

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1. Baseline: Users assigned to this condition receive the standard message. This message

does not contain any implementations of persuasion strategies.

2. Best Pre-tested: Users assigned to this condition received randomly one of the

messages implementing the best average (pre-tested) persuasive strategy.

3. Random: Users assigned to this condition receive randomly one version of the persuasive

message.

4. Adaptive: Users assigned to this condition receive messages suggested by PersuasionAPI.

Alternating

messages vs.

Adaptive persuasive

messages

No persuasion

“Best” average persuasive messages

vs. Adaptive

persuasive messages


The Result:

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The Winner:

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1. Baseline: Users assigned to this condition receive the standard message. This message

does not contain any implementations of persuasion strategies.

2. Best Pre-tested: Users assigned to this condition received randomly one of the

messages implementing the best average (pre-tested) persuasive strategy.

3. Random: Users assigned to this condition receive randomly one version of the persuasive

message.

4. Adaptive: Users assigned to this condition receive messages suggested by PersuasionAPI.

Alternating

messages vs.

Adaptive persuasive

messages

No persuasion

“Best” average persuasive messages

vs. Adaptive

persuasive messages



Summarizing the results:

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Increase in email click-through: >100%(at the 5th reminder)



Summarizing the results:

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Increase in email click-through: >100%(at the 5th reminder)Increase in e-commerce revenue:

>25%


Persuasion Profiling

Are you ready to Beta?

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Wow!

@PersuasionAPI

Technology

Five questions for Ogilvy