Great presentation on NeuroMarketing with great examples.
Millennial Women “Love to Shop”
Millennial (18-35) women are 52% more likely than their male counterparts to agree that they “love to shop” (44% vs. 29%), per results [pdf] from an Urban Land Institute (ULI) survey conducted with Lachman Associates. While young men are more likely than young women to say that shopping is a necessary chore that they can deal with (15% vs. 9%), they’re also more likely to say they shop when it’s necessary, and enjoy it when they do (51% vs. 45%). Overall, the study indicates that America’s youth enjoy shopping on the whole, which might explain why they’re more likely than other generations to identify as “spenders” rather than “savers.”
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According to the ULI survey, both Hispanics (44%) and Blacks (55%) are more likely than the average Millennial (37%) to say that they “love to shop.”
“Shopping centers can rest easy,” conclude the researchers, noting that that 64% of respondents go to enclosed malls at least once a month. Asked their 3 favorite aspects of their most-visited enclosed malls, Millennials pointed to the range of options for finding things they want or need (53%), the opportunity to get out provided by a mall (42%), and stores offering styles they like (37%).
Overall, Millennials, like the average American, enjoy shopping in-store. Aside from malls, most visit discount department stores (91%), neighborhood and community shopping centers (74%), full-line department stores (64%), big-box power centers (63%) and chain apparel stores (58%) on at least a monthly basis.
About the Data: In January 2013, ULI and Lachman Associates conducted a nationally representative online survey of 1,251 Gen-Yers to gauge their retail, dining, and entertainment preferences.
The power of birthday marketing campaigns
Birthday Marketing and New Mover Marketing Campaigns
Remember your last birthday? Remember what made it special? That’s easy- it’s the fact that other people remembered, and recognized the occasion. Now your restaurant can employ this simple direct mail marketing strategy into a sophisticated campaign that will help you win new customers and forge that precious relationship with your customer!
A Proven Way to Create Huge Response Rates
Studies have conclusively shown that a direct mail marketing program tied to birthdays provides one of the highest response rates of any form of advertising. As a business owner, you already know that the biggest challenge you face is getting first time customers in the door and forging a relationship with them. Birthday marketing makes it easy and affordable to drive new business to you and keep them coming back. In fact, combined with your free offer, most of our customers enjoy add on sales that offset the entire cost of the campaign! We are frequently informed of double-digit redemption rates that exceed the expectations of nearly all of our birthday program customers.
Target New Movers with Your Direct Mail Marketing Campaign
Each year about 16% of the population in the United States Moves, which creates a slew of potential new homeowners who could be your next customers? This group of people will need a lot of services and are going to be looking into new businesses and services for the new location that they have relocated to. They will also have their eyes and ears opened to trial offers that will allow them to save money while trying new business and services.
In the first 6 months of relocating, a new resident will spend more than any other consumer spends in 3 years. New residents are also more likely to become long term customers that existing residents. During the first year of their move, new movers will spend around 52% more on home furnishings and home décor. One in five new movers will create new relationships for their home phone, internet, cable and insurance.
To help your business become for successful, this could be the perfect audience for you to target with your Direct Mail Marketing Campaign. By creating special offers that will entice the new residents to try your business, you may be giving your business the new clientele that it needs in order to become stronger and more successful.
New residents will be looking for restaurants, home security systems, and entertainment items that they can explore. They’ll also need a new dry cleaners, bakery, coffee house and the list goes on and on.
The sooner that you make contact with the new residents of your area, the sooner they will check into your products or services. When a new resident plants his roots in your area, he will be quickly developing new routines and it should be your goal to make your business or service a part of his everyday routine so that you have a customer for many years to come. It won’t take a new resident long to form his opinions about the local businesses that he and his family enjoy.
Check how we can take care of your birthday marketing campaign
Pricing mistakes and consumer behavior
A new study by researchers from Singapore and Yale revealed a pricing surprise: if two similar items were priced the same, subjects were much less likely to buy one than if their prices were slightly different!
A tiny price difference seems to make the similar products more alike, and increases the probability that a decision will be made and not deferred.
In one experiment, the researchers presented two groups of subjects with a choice. They gave all subjects a dollar with the option to buy gum or keep the money. Two similar types of gum were offered. One group saw both gum options priced at 63 cents, while the other saw one gum priced at 62 cents and the other at 64. This trivial difference caused 77% of the second group to buy vs. just 46% for the first group – a 67% boost!
In retail settings, similar products may be offered at the same price. But, rather than simplifying the choice for the consumer, doing so may actually increase the probability that the consumer will buy nothing at all.
Neuro Nudges
Neuro Nudges
Certain principles are shown to drive positive consumer responses in the brain. Here’s a healthy handful of Neuro nudges that Roger Dooley shared with the crowd of around 250 at Mima:
- Liking – Establishing affinity with your customer is a sure-fire way to get them to like you. If your customers have dogs, consider pictures of happy people at your company with dogs.
- Setting Expectations – People enjoy a product more if they’re given a realistic expectation of what their experience will contain. Set lofty, yet realistic expectations for people and they’ll likely enjoy your product more.
- Fairness – Roger asked two audience members to make a deal to split $10. He pointed out that the fairness of the deal carried a lot of weight with each participant, and that socializing before making a deal increases the fairness. Tip: if you’re negotiating business, go out to dinner first and then talk business.
- Doppelgänger Effect – One of the best ways to get someone to buy something is to help them envision themselves using the product. Roger used the example of taking an opt-in social profile picture and inserting it into a dynamic ad. Mirror neurons vicariously enjoy what they see, and nudge your brain to purchase what it sees as possible.
- Rudeness – Just like in real life, rudeness sparks revenge. As we’ve seen from countless brands, a quick and sincere apology is often all it takes to insulate a brand against social backlashes.
- Scarcity – People are more likely to act if they think a deal won’t be available in the future. Scarcity drives conversion — limited quantities, time frames or offers all induce the scarcity effect.
- Gender – Men think more short term and grow impatient when shown a picture of an attractive woman. They also show riskier behavior. These “mating triggers” can be very effective on men but not so much with women.
- Cognitive Fluency – This means that you associate difficulty of tasks with the difficulty of the instructions. Make your fonts and explanations simple of you’re asking for a simple action from your customers. Conversely, use a more complex font if you have an expensive or complex product to convey higher value and/or importance.
How to create contrast with your competition
Creating contrast is a key concept in NeuroMarketing. After all the brain pays attention to contrast. But how do you do that if what you offer is considered a commodity?
Take into consideration that the brain also likes novelty.
Here is how a coffee shop in Taiwan did:
Marketing to the brain
Look at these pictures:
They are both examples of good marketing. Why?
Because they both talk to emotions, to the brain of the consumer.
The first asks you to take a stand about your values. The other allows you to solve a problem.
Simple, effective marketing. You don’t need to be a NeurMarketer to see that this works.
Remember: People buy with the heart and justify with the brain. Not the opposite. 95% of our purchase decisions are made on a unconscious level.
The question is why homeless people can see this while entrepreneurs miss this point quite often. They get stuck in old ways of marketing an selling.
Maybe because they stay inside 4 walls or just in front of the computer and forget to really observe consumer behavior?
Credit card or cash when marketing?
How you pay – credit card vs. cash – actually affects how you think about the products you are buying, according to new research published in the Journal of Consumer Research.
That, in turn, means that marketers need to review how they are marketing to credit and cash customers.
Spending money is always painful.
NeuroMarketing suggests that Cash customers pay more attention to price while credit card customers pay more attention to benefits.
This means the if you sell to credit card customers your marketing need to make clear what will be the benefits while if you are selling to cash customers compare how cost competitive is your product and show it as a bargain.
The business of Experience
A few weeks ago I watched a film called The Game. In the film the character gets a special gift from his brother: He will participate in a game that offers real life experiences.
The film was good and I thought that I could see people buying this type of experience.
We buy experiences, much more so when we are boomers. (Actually one of the reasons restaurants are seeing less and less boomers is due to the fact that dining out many times lack any special experience).
Well, now there is a company that offers something similar:
Extreme Kidnapping is a company operated by Adam Thick, an entrepreneur and convicted counterfeiter from Oakland County, Michigan. For $500, Adam and his crew will abduct you at gunpoint and hold you hostage for four hours. A thousand bucks gets you ten hours, along with a bit of customized sadism.
Experiences are the newest, hottest luxury items.
As with any pricey upscale service, you have many choices for your Extreme Kidnapping. You can even select your kidnapper.
You can choose to have sexy kidnappers, be tortured etc.
For $500, Adam and his crew will abduct you at gunpoint and hold you hostage for four hours. A thousand bucks gets you ten hours, along with a bit of customized sadism.
After the kidnapping is over, you will get a customer satisfaction survey.
Now, I have a very hard time understanding why someone would ever want to be kidnapped but I get spending money to have a special experience.
We talked before about another company, Nexpedition selling experience in the travel industry.
There are some studies around this fact:
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Contrary to what people predict, it’s not young and impulsive people who want to pay so much for these crazy experiences. It’s actually people who plan and are obsessed with being productive,” says Anat Keinan, who now teaches marketing at Harvard Business School.
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Consumers buy into these unusual experiences because they are considered “collectible,” not because they’re pleasurable. The following five experiments confirmed that it is those who are fixated on productivity that tend to desire these collectible experiences.
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A new study suggests that those who spend money to do things are happier than those who spend their money on possessions.
We could add to that routine, loneliness, less social interactions due to technology and a lot more reasons.
The fact is that people today buy experiences and we need to provide experiences.
Customer experience is fundamental to the success of every business. For most companies, in fact, customer experience is the single greatest predictor of whether customers will return — or defect to a competitor.
Every interaction with customers can be an experience. It can also incorporate some mystery and rituals as we talk in our irresistible business.
It does not have to be as radical as the example above, but you should pay attention to these types of businesses.
Don’t let prospects multi task
I go to a lot of networking meetings. Most of the time I try to convince myself that it is not a waste of time. Unfortunately most meetings revolve around a meal and food distracts. The brain pays attention to one thing at a time and food is really interesting to us, therefore those meetings can be very ineffective when you are trying to get people’s attention. Unless you pay attention to NeuroMarketing.
Neuroscientists compare our attention focus to shining a spotlight on something: We see what is lit and we lose focus on everything else.
Marketers need to be sure they have their focused target’s attention where they want it.
Don’t let your customers multitask when you need their attention on your message.
One way to get people’s attention is to use motion. If something moves, the audience follows the movement. It is part of our survival skills. Point to your products when you present.
If your audience is distracted with food, use bigger motions to snap their attention.
