Learn tried and true influence techniques studied by the best minds in consumer psychology to boost email marketing revenue. Learn the definitions and nuances of my top 10 principles, and see example email campaigns that I've personally implemented for clients as well as examples from the greater email marketing world.
Boost Email Marketing Revenue with the Power of Consumer Psychology
1. by nemoa
Marketing tothe Minds
of Catalog and Etail Shoppers
September 14-16, 2016
Boost Your Email
Marketing Revenue
with the Power of
Consumer Behavior
Holly Wright
Email Marketing Manager
Phoenix Direct
2. Background
About Me
• Email Marketing Manager at Phoenix Direct
• 8 Years of Digital Marketing Experience
• MBA, Entrepreneurship & Consumer Marketing
• BS in Industrial Design, Georgia Tech
About Phoenix Direct
• 3rd Party Logistics Provider
• Creative, Marketing & Ecommerce Agency
7. Robert Cialdini
Social Psychology
Theory of Influence
Ph.D. from UNC and post-graduate training
from Columbia University both in Social
Psychology.
Spent 3 years undercover working at used car
dealerships, fund-raising organizations, and
telemarketing firms
8. Kit Yarrow
Consumer Psychology
Focus on Millennials
Ph.D. in Psychology
Has conducted hundreds of interviews and
“shop-alongs” to study the trends that
transform shopping behavior
9. Dan Ariely
Behavioral Economics
Decision Making
Ph.D. in Cognitive Psychology
A second Ph.D. in Business Administration
Inspired by his experiences in the burn unit
after a serious explosion burned 70% of his
body
12. #1 - Reciprocity
When we receive a gift or a favor, we are
obligated to try and repay the favor in kind
13. #1 - Reciprocity
When we receive a gift or a favor, we are
obligated to try and repay the favor in kind
Nuances of the rule:
• It’s overpowering
• It applies to uninvited debts
• It can trigger unequal responses
18. #2 – Commitment & Consistency
We’re likely to make future decisions that
match our past behavior
20. #2 – Commitment & Consistency
We’re likely to make future decisions that match
our past behavior
Nuances of the rule:
• It can escalate from small to much larger
commitments quickly
• Commitments “grow their own legs” when people
find new reasons to support previous decisions
• It can compel people to put themselves
in harm’s way
25. #3 – Social Proof
We look to others to determine how to behave,
especially in uncertain situations
26. #3 – Social Proof
We look to others to determine how to behave,
especially when we’re uncertain
Nuances of the rule:
• It is applicable under a range of activities
• Uncertainty is a big factor
• Similarity is a strong factor
33. #4 - Liking
We prefer to say yes to requests from people
we know and like
34. #4 - Liking
We prefer to say yes to requests from people
we know and like
Nuances of the rule:
• Attractiveness is a factor
• Similarity increases likeability
• Compliments make people like you—if they’re true
• People form associations easily
• Exposure increases familiarity
40. #5 - Authority
We have a deep-seated sense of duty to follow
and react to authority symbols
41. #5 - Authority
We have a deep-seated sense of duty to follow
and react to authority symbols
Nuances of the rule:
• We respond more to symbols than actual authority
(e.g. a white coat vs. a doctor)
• We associate honesty with authority
• Authority can be assumed with positioning
48. #6 - Scarcity
When something is less available to us, we
want it more
Nuances of the rule:
• Time can be scarce
• Quantities can be scarce
• Value can be scarce
• Information can be scarce
• Exclusive access is scarce
• Newness can be scarce
56. #7 - Relativity
We compare things with one another to make
decisions, and we tend to focus on comparing
things that are easily compared
57. #7 - Relativity
We compare things with one another to help us
make decisions
Nuances of the rule:
• We tend to focus on comparing things that are
easily compared
• A decoy can help us rationalize buying something
we didn’t previously want
63. #8 - The Power of Price
Consumers’ willingness to pay for something
can be easily manipulated
64. #8 - The Power of Price
Consumers’ willingness to pay for something
can be easily manipulated
Nuances of the rule:
• Without context, we do not know how much to pay
for a particular item, especially a luxury item
• When we have bought or committed to buying
something in the past, that price anchors us for
future purchases that are similar
• We get what we pay for, and discounting
can diminish perceived value
66. new arrivals
a fa ll s t a p le
We use a special dye and wash method to create a deep and
dusky hues with a remarkably soft, lived-in feel for an irresistible shirt.
Add a few of our brand new plaid shirts to your fall wardrobe today.
today is monday funday!
FULL PRICE: $190
MONDAY DEAL: $114
SHOP THIS DEAL
34-heritage light hawaii
5-pocket jeans
The monday funday deal is a deep discount taken on a single item for a limited time.
Click through this email to redeem the offer before the price goes back up or it sells out!
70. #9 - Emotional Appeals
We are wired to seek an emotional connection
to the brands and products we buy
71. #9 - Emotional Appeals
We are wired to seek an emotional connection
to the brands and products we buy
Nuances of the rule:
• Find tribes that align with your products
• Excite people with innovation
• Build trust with honesty
• Use humor to make a connection
• Have a mission
79. #10 - Simplicity
When we are overwhelmed with choices, we
often avoid making any decision at all
80. #10 - Simplicity
When we are overwhelmed with choices, we
often avoid making any decision at all
Nuances of the rule:
• Simplify your offerings where it makes sense
• Turn complex programs into simple transactions
• Put your differentiators front and center
• Cut down on the work of comparison shopping
86. Recap
Choose your tactics strategically
Think about your goal and your brand first
Don’t try to use all of them at once!
87. Reciprocation: We feel obligated to repay
someone when they have given us something.
Offer free information
Offer free service/product
Offer free gift
Write in your own: _______________
Commitment and consistency: Once we make a
decision or take a stand, we are likely to make
future decisions that match past behavior.
Ask users to take an action
Click a button to agree or confirm
Download content
Visit the website
Use previous commitment to your benefit
Remind users of products they have viewed
Position newsletter subscription as a
previous commitment
Write in your own: _______________
Social proof: When we’re unsure of something,
we validate our decisions based on what other
people think is correct.
Suggest services or products based on what others like
Utilize testimonials or reviews
Integrate social media
Show photos of others using your product or service
Write in your own: _______________
Liking: We say “yes” to individuals we
know and like.
Use photos of smiling, happy people
Utilize celebrity endorsements
Show user’s friends or peers who use your product
or service
Associate your company with positive things
Use imagery of people in your users’ demographics
Write in your own: _______________
Authority: We follow and react to
authority symbols.
Show people in uniforms
Show (or create your own) certification logos
Show logos of well-known companies who
use your product or service
Use copy that positions you as the expert
Write in your own: _______________
Scarcity: If something is less available to us,
we want it more.
Include limited time offers
Position timely content as going away soon
Add expiration date to your current offerings
Use deadlines to your advantage
Write in your own: _______________
Consumer Behavior Principles Checklist
By Holly Wright, Phoenix Direct (@hollygowrightly)
Relativity: We tend to compare things that are
easily compared in order to make decisions.
Provide a decoy
Carry a higher priced item for comparison,
even if it is in very limited quantities
Make the comparison as easy as possible
Write in your own: _______________
Pricing: We tend to get what we pay for,
but we’re also bargain hunters.
Target sale buyer differently than full price buyers
Use coupons judiciously
Price luxury items to convey the value that you want
your shoppers to perceive
Have a theme for ongoing or recurring deals
When discounting isn’t an option, offer a free gift or
exclusive access instead
Write in your own: _______________
Emotional Appeal: We are wired to seek
emotional connections from the brands we buy
Demonstrate empathy and humanity
Build trust with consistency and a
customer service approach
Use humor
Have a secondary mission or purpose
Align your business with a charity or cause
Write in your own: _______________
Simplicity: When we’re overwhelmed
with choices, we make no choice at all.
Simplify your offerings, where it makes sense
Turn complex program into simple transactions
Put your differentiators front and center
Cut down on the work of comparison shopping
Write in your own: _______________
89. by nemoa
Marketing tothe Minds
of Catalog and Etail Shoppers
September 14-16, 2016
Thank you!
Holly Wright
Email Marketing Manager
Phoenix Direct
@hollygowrightly
hwright@phoenixdirect.com
(770) 667-8833 x 125
Notes de l'éditeur
Thank you for the introduction. I’m going to kick off my session with a little more about my background and experience
I work for a company outside Atlanta, GA called Phoenix Direct, which is half 3PL, half agency.
We work with a number of companies, mostly in mens apparel but in a few other areas as well, spearheading their direct-to-consumer businesses. For our full service clients, we handle everything from receiving inventory, photographing and designing their catalogs, planning their customer acquisition efforts, taking orders via mail, phone and web, designing and managing their websites, and heading up digital marketing efforts.
Many of you have asked me about Robby Yarbrough. He is the president of Phoenix Direct, and has been coming to these NEMOA events for years or dare I say decades? He had another commitment this year, but he asked me to say hello to all of you!
Add a little background and the books for each author
Robert Cialdini …
In 1984, he wrote Influence: The Psychology of Persuasion, a book that has sold 3 million copies and been translated into 30 different languages. He also wrote Influence Science and Practice in 2001, and they were still teaching this book in MBA programs when I was studying conflict and negotiation in 2011, granted it was the 5th edition.
Kit Yarrow has written a couple great books – Gen Buy, How Tweens, Teens, and Twenty-Somethings are Revolutionizing Retail – and more recently, Decoding the New Consumer Mind: How and Why we Shop and Buy. I became interested in her work after hearing a keynote by her at a conference earlier this year.
During his treatment, he noticed that the nurses would rip off his bandages very quickly instead of slowly, which he felt was less painful. He questioned their motives and what drove them to do what they did.
Ariely wrote a fantastic book called Predictably Irrational. As humans, we often make irrational decisions, but they’re not random. In fact, he proves in his studies that much of our irrational behavior follows a pattern, making it highly predictable if you know what patterns to look for.
Many years ago, a university professor did a little experiment. He picked a whole bunch of names and addresses at random and sent Christmas cards to complete strangers, complete with a return address. What he found was that within days, Christmas cards from those strangers started pouring. Now you might be wondering, what would cause someone to send a Christmas card to a complete stranger, and the answer is reciprocity. Without even inquiring into who the professor was or how they might know him, they automatically returned the favor.
A group of sociologists wanted to find out how widespread this rule was, so they did extensive study, and couldn’t find a single human society that didn’t subscribe to it.
Top 2000 customers – people don’t abuse it. They feel compelled to spend well beyond the value of the gift certificate
We experimented with different gift certificate values and found that we can trigger an almost equal response rate with a much smaller amount. It’s the principle of the gift that generates the response, not value of the gift itself.
You can also trigger the effect by positioning something as a gift, even if it is something they’ll need to earn.
Moving on to our next example, Cialdini studied spectators at the racetrack. They surveyed people before and after they had placed bets on particular horses. Before placing a bet, people had moderate confidence in their favored horse, but once they had betted on that horse, they felt considerably more confidence in their pick. Nothing had changed; they hadn’t learned anything new, the horse was the same, the jockey was the same, and the track was the same, but by placing a bet, they made a small commitment and subconsciously, they became much more committed to that choice.
The desire to think, speak and behave consistently is hardwired into us. If we say one thing, we’re more likely to do something that is consistent with that in the future, even if it is to our detriment, because the desire to act consistently is so strong.
Talk about beach blanket example, betting example
“growing legs to stand on”
Talk about the magic of a small commitment that activates bigger ones due to constency
Trophy Nut survey example
Here’s another example. Researchers in NYC staged a theft on the beach to see if onlookers would intervene on behalf of a stranger. A beachgoer would lay on the beach for several minutes listening to the radio, then get up and walk away, after which a researcher pretending to be a thief would pick up the radio and hurry away with it. In 20 instances, only 4 onlooking strangers challenged the thief. However, when they tried it again with a twist, they got drastically different results. The beachgoer would ask the unsuspecting subject “please watch my things” which everyone agreed to. Now propelled by the rule for consistency, 19 out of 20 subjects intervened by chasing the thief, demanding an explanation, grabbing the radio back or in some cases physically restraining the thief.
The desire to think, speak and behave consistently is hardwired into us. If we say one thing, we’re more likely to do something that is consistent with that in the future, even if it is to our detriment, because the desire to act consistently is so strong.
Talk about beach blanket example, betting example
“growing legs to stand on”
Talk about the magic of a small commitment that activates bigger ones due to constency
Trophy Nut survey example
Talk about the affiliate and social media offer, the popup, and the reminder emails
More likely to engage after re-committing to your email program. Use a win-back series before the holidays, and if you run a triggered program throughout the year, send a great personalized offer to subscribers right after they recommit to get an order.
For the next example, I want to talk about laugh tracks. We can usually tell the difference between a live studio audience and canned laughter that has been added to a show after filming. And people agree that canned laughter is phony and fake and a distasteful practice, yet studio executives use it over and over again. Why? The fact is, even though people know they’re being fooled, they still laugh more often and longer when a laugh track is presented with humorous material, and they are more likely to rate the material is funnier than without it.
Canned laughter example
Uncertainty as a big factor
Similarity as a strong factor
Testimonials, demographic representative models, “best sellers”, case studies, reviews
It can apply to purchase decisions, choosing vacations, charity donations, volunteering, and drug use. In many cases peer pressure is nothing more than the presence of someone else doing something even if they don’t actively try to exert influence over you.
Uncertainty as a big factor -
Similarity as a strong factor -
Testimonials, demographic representative models, “best sellers”, case studies, reviews
Woven on the front, knit on the back.
Throughout a 2-year period, we sent several different emails about the W&K shirt for this client. On a dollars per email basis, this one outperformed them all significantly
We usually do a best sellers email once per season and these are some of our best full-price emails every time.
It doesn’t take much to suggest that others have already approved these styles. In this email, use of the word “should” adds to the pressure to conform to others.
Side note: I love when people offer 40% off their “best sellers” – why would they put them on sale if they’re selling that well?
Last example. This item sold out in Fall 2014. In Fall 2015, we brought it back. We ran this email with the subject line “get it before it sells out again”
Arguably the copy could be a little stronger here, but by letting people know that something sold out before and they have another chance to get it now, you can provide not only social proof but also scarcity, a principle we’ll get to shortly.
Popular picks near you – boosting the similarity factor
Raise your hand if you’ve ever been to a tupperware party? How about Mary Kay or Pampered Chef, or more recently, Jamberry?
There’s a reason this home party concept persists long after different brands come and go in popularity.
You’re more likely to want to buy something from someone if you like them?
That’s why sales reps are usually friendly often attractive people.
Tupperware party
Kindergarteners
Familiarity/exposure as a factor
Similarity, attractiveness, compliments, positive assiciations
Cart abandonment email with “you have good taste!”
Attractive models, showing the same items multiple times, similar looking models
Tupperware party
Kindergarteners
Familiarity/exposure as a factor
Similarity, attractiveness, compliments, positive assiciations
Cart abandonment email with “you have good taste!”
Attractive models, showing the same items multiple times, similar looking models
Let me give you one more example. In a study done several years ago, a stranger walked into a kindergarten class and sat in the back for about 15 minutes, three times over the course of a few weeks. When two different groups of kindergarteners were shown a photo of the stranger, the ones in the class who had been exposed to her said they liked her, while the others said they did not like her. What this illustrates is that repeated exposure makes us like people.
Linksoul’s customer is a free-spirited surfer slash golfer slash artist. They frequently promote the work of SoCal artists and photographers on their homepage and they use professional golfers and surfer as their models – here we’re showing Ryan Moore, a pro golfer, modeling last Fall’s collection.
Associating your brand with events works just as well as celebrities, especially when it comes to the
flattery
If you’d heard of the Milgram study, then you’re familiar with the principle of authority. I’m going to give a simpler illustration to save a little time today, but if you’re not familiar with that study look up “authory and obedience and Stanley Milgram”
Some researchers did a study to test how people reacted to the authority symbol of the police uniform with faced with a request to help a stranger. In one case, a man dressed in street clothes was seen noticing an expired meter when an unknowing subject parked nearby. The man suggested to the subject that they put some money in the meter to help out a stranger who was about to get a ticket. Most subjects shrugged and walked away. However, when the man was dressed as a police officer instead, most subjects stopped and added a few coins to the meter.
What this study illustrates is the principle of authority.
We often defer to symbols of authority – titles, clothing, automobiles because of what they represent, even if the substance is lacking.
Doctors, Ph.D.s, authors, politicians, religious leaders, bosses and experts in your field serve as symbols of authority.
professional associations and stamps of approval can also work.
You can also assume a position of authority.
What this study illustrates is the principle of authority.
We often defer to symbols of authority – titles, clothing, automobiles because of what they represent, even if the substance is lacking.
Doctors, Ph.D.s, authors, politicians, religious leaders, bosses and experts in your field serve as symbols of authority.
professional associations and stamps of approval can also work.
You can also assume a position of authority.
In this example and the next, we try to position the brand as a voice of authority in how to dress. The art of pattern mixing…
How to wear windowpane…
Pro-Covers associates with the professional organization QSC - Quality Service Contractors, the authority on training and education for professionals in plumbing, electrical and HVAC.
Everyone is vulnerable to this next principle in some form. Take the Florida State University students, for example. In a survey, undergraduate students on average rated the quality of the food at their campus dining hall as unsatisfactory. However, 9 days later, according to a second survey, they had changed their minds. Something had happened to make them like their cafeteria food significantly more than before… so what was it? Well, it had nothing to do with the quality of the food! On the day of the second survey, students had learned that because of a fire, they could not eat at the cafeteria for the next two weeks.
This example illustrates the principle of scarcity. When something is less available to us, we want it more.
Real world examples are all around - Flawed stamps and coins are more valuable than correct ones, due in part to their limited availability.
The most recent example I can think of are the Olympic collectors cups from Rio. The company that made them randomly produced different quantities of each design and distributed them throughout the different venues. To collect all of them, a spectator needed to order multiple drinks at dozens of Olympic events, spanning every venue. They also needed to be very lucky. What’s so valuable about these cups? They’re unpredictable, tough to get and some cups are likely very scarce – like the boardwalk pieces in the McDonald’s monopoly game.
Information is scarce, offers expire, products sell out, seats are limited, early bird specials on conference tickets, even newness can be scarce (it’s new right not, but it won’t be later)
This example illustrates the principle of scarcity. When something is less available to us, we want it more.
Real world examples are all around - Flawed stamps and coins are more valuable than correct ones, due in part to their limited availability.
The most recent example I can think of are the Olympic collectors cups from Rio. The company that made them randomly produced different quantities of each design and distributed them throughout the different venues. To collect all of them, a spectator needed to order multiple drinks at dozens of Olympic events, spanning every venue. They also needed to be very lucky. What’s so valuable about these cups? They’re unpredictable, tough to get and some cups are likely very scarce – like the boardwalk pieces in the McDonald’s monopoly game.
Information is scarce, offers expire, products sell out, seats are limited, early bird specials on conference tickets, even newness can be scarce (it’s new right not, but it won’t be later)
Sizes are limited, deep discount, makes it a game but also emphasizes scarcity.
Limited edition means it’s scarce, hand-numbered means each one is unique which adds even more scarcity.
Interactive php countdown. Time to redeem this deal is scarce. When time runs out, the deal is over.
When Williams-Sonoma debuted their first bread maker for $275 customers didn’t know what to make of it; in a vacuum, they couldn’t determine the validity of that price, and lukewarm sales reflected consumer reticence. When Williams-Sonoma brought in a marketing firm to help move the flagging machine, the firm didn’t suggest a price reduction or increased advertising. Instead, they urged the company to release a larger, more expensive bread maker as well. Now that customers were armed with a basis for bread maker value comparison, sales of the original machine doubled. The new machine acted as a decoy to push customers toward the original appliance.
There are more examples on restaurant menus. A $65 cut of steak makes you feel better about ordering the $45 ribeye. And not wanting to feel like a cheapskate, the diner orders the $11 malbec over the $9 merlot, even though they may be of equal quality.
The mere presence of the decoy option helps people rationalize buying something they didn’t know they wanted before
Try to have two options that are easily comparable, and for further impact, add a third option that is totally different. It gives the consumer more context and permission to count out the different option and choose between the two comps.
To apply Ariely’s relativity principle to this email, we can show two options that are similar to make the comparison easy.
However, if we really want to make some money from this email, we should add a third option.
One of these things doesn’t belong… could it be the $3,000 jacket? The shearling coat acts as a decoy, making people much more likely to rationalize the expense of a $1300 or $1400 leather jacket. Without the decoy, $1300 seems like a LOT if money. However, in comparison to the $3000 jacket, it doesn’t seem like nearly as much. So now that the consumer knows it’s safe to spend $1300 or $1400 on a leather jacket, all he has to do is decide which of the two less expensive jackets suits his style more.
In this case, Bloc doesn’t use a decoy per se, but they do make the comparison between a bootcamp and a CS degree. Both theoretically can equip someone for a career as a software programmer, but one is a fraction of the time and cost.
In this email, we see two toaster ovens—one with significantly more functionality, at a higher cost, though it is on sale. Though a countertop oven may not be a necessity, it is reasonable affordable for basic functionality.
The next example also comes from Dan Ariely. In 1973, a man known as the pearl king became aware of the Tahitian black pearl. He and his partner harvested a bunch to sell to the world—only no one was interested. He could have dropped the price and sold them to discount stores, but instead he waited. He convinced his friend Harry Winston to put some in the window of his store with an outrageously high price tag. At the same time, he ran a full page ad in several glossy magazines. Pretty soon, his black pearls were being worn by the richest Manhattan socialites
Here’s another example, this time about perceived value.
Test subjects were going to test the effectiveness of a new painkiller. The first set was left in a room with a brochure showing that Veladome was an exciting new drug that cost $2.50 per dose. They were then hooked up to a machine to receive electric shocks to test their pain tolerance. Then they were given the drug and tested again. Almost all participants reported less pain after taking the drug—which was really just a vitamin C capsule. The interesting thing is that when this was repeated with a similar set of subjects, but the price was reduced to $0.10 per dose, only half of the participants reported less pain from the Veladone. The reduction in cost resulted in patients receiving reduced benefits from the drug. They found similar results from brand name full price aspirin versus generic lower priced aspirin.
We perceive discounted products to be worse than the same products at full-price, and we actually experience the benefits less if we’ve gotten it at a discount
Items that can easily be compared need to be priced differently than items that are unique or luxury goods.
Adding free gifts rather than discounting is a great strategy to entice buyers without diminishing perceived value –
We should be careful how much we discount. People worry about training consumers to expect discounts, rightly so.
Offering too large of a discount can reduce the perceived value of the items they buy and anchor them for future purchases from your brand.
When possible stick with a free shipping offer or a smaller sale like 10% off during full price seasons.
If you are going to discount something deeply, make sure it is clear that it is for a limited time only as a special deal for subscribers. The shorter the sale and the more exclusivity there is, the more shielded you are from discounting the perceived value of the item.
Bundling is a strategy that can help maintain the value of individual items. No single items has been discounted here, so it’s hard to tell what about this set has reduced value.
If you want to incentivize a particular type of purchase, offer a free gift instead of discounting.
As Kit Yarrow writes in “Decoding the New Consumer Mind:” “For example, car studies have found that consumers tend to purchase cars they emotionally relate to—ones that represent their lifestyle and personality. They then look for data to justify their decisions. Car specs are important, but not to inspire someone to purchase a particular car; it’s vice versa: they’re used to validate a car that’s already been chosen. … The unconscious mind may be hidden from us, but that doesn’t diminish its power. The fact that people generally—and mistakenly— believe that they make decisions logically and consciously only increases its influence.”
How can we do that?
Show that your brand is made of humans that have compassion, humanity and personality.
Honesty and to build trust. From the founder, not the company name.
Fab’rik has a related nonprofit that helps women in need dress beautifully to build their confidence.
This email plays up patriotic vibes around the 4th of July.
Chubbies uses humor and a well known celeb to entertain and endear themselves to their subscribers.
Kit Yarrow also emphasizes that shoppers today, especially millennials, are constantly trying to multitask, feel overstimulated, and experience more stress and anxiety than ever before. We’re looking for mental shortcuts but we also want to be thrilled along the way.
The key is to make the decisions simple while delighted customers senses. Especially with online shopping, If you can’t touch, smell or taste a product, then the photography, graphics and messaging need to be highly compelling and simple.
Beyond pricing considerations, simplicity makes another case for bundling, curating, and getting creative with what you’re actually selling (convenience, an outfit versus a shirt, a matching set of styles)