Revolutionary Measures

Psychology and marketing – appealing to consumer needs

How do you persuade people to buy your product or service, particularly when there is an increasing number of demands on their time and wallets?

English: Maslow's hierarchy of needs. Resized,...

I’ve always been fascinated about how an understanding of human psychology can help marketers to change people’s behaviour. Whether it is nudging people to choose the ‘right’ option or appealing to the herd mind, there is a lot that marketers can learn from the social sciences.

One theorem that can help improve marketing is Maslow’s hierarchy of needs. Originally proposed by Abraham Maslow in 1943 it essentially ranks the varying needs of humans, from the basic to the most complex. The key point is that it is only when one level of requirements are met will humans then move onto the next one.

So at the bottom are physiological needs – breathing, food, water, sleep, excretion. Without these humans simply cannot function. So, if you are selling basic products, appeal to this need, but if what you offer is more complex or higher value, look further up the hierarchy.

Next is safety (security of body, employment, family, resources, health, property). We’ve all seen marketing/advertising campaigns that play to these needs, normally by warning of the dangers that a particular product or service guards against. Insurance is the perfect example.

The third layer of the hierarchy is love and belonging, covering friendship, family and sexual intimacy. This is where sex sells, and also products that deliver a sense of being part of a group. Remember the scene every week in Cheers, where Norm comes in and everyone greets him by name? That’s key to this layer. However too many brands attempt to generate a sense of belonging, but make it too corporate and intrusive, such as Starbucks’ attempt to call customers by their first name when they were buying their latte.

Above belonging is the esteem level (confidence, self-esteem, respect of others, achievement). All humans have a need to feel respected, and clever marketers exploit this by offering products that (they claim) will increase your confidence and earn the esteem of others. Buy our car/mobile phone/bank account and your world will be transformed.

So, what’s at the top of the pyramid? All the previous levels were seen by Maslow as deficiency needs and have to be not just met, but mastered, before humans can move onto self-actualisation. This is much more complex and varies from person to person, but is essentially about achieving your full potential. To do this they need accept themselves, happy in their judgement and have an efficient perception of reality.

On the face of it self-actualisers should be immune to marketing, as they can see through attempts to manipulate their thoughts or feelings. However those on the path to self-actualisation can be targeted with images that show successful people and intimate that they can only be achieved by buying particular products. Think American Express Black credit cards or most celebrity adverts – drink Nespresso and you can be George Clooney!

I’m not saying that the hierarchy of needs is the sole way of planning marketing campaigns or boosting sales. But understanding which level your product best appeals to is a good way of focusing your efforts and going beyond features to look at what the customer is looking for. And that can only lead to better targeted products that consumers actually want, after all.

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March 26, 2014 Posted by | Creative, Marketing | , , , , , , , , , | Leave a comment

Lego – the marketing

English: A 2x4 red plastic brick like a Lego b...

Everyone loves Lego – except of course when you tread on a brick with your bare feet or cannot see the living room floor for brightly coloured ‘creations’. So it is a bit of a surprise that we’re only just seeing the first full-length Lego movie (imaginatively titled The Lego Movie) hitting UK cinemas now. We’ve already had short Lego films, pastiches of other films (my personal favourite is the Camelot song from Monty Python’s Quest for the Holy Grail) and innumerable video games.

As a parent of Lego-age children I’m sure I’ll be visiting the cinema to see it this half term, but what has really impressed me is the marketing around the film. As well as the traditional online, cinema and print ads, Warner Brothers have looked further afield. For example, the whole of one ad break in Dancing on Ice was made up of traditional adverts, re-shot entirely using Lego characters and bricks. From BT to Travelodge, it didn’t really matter how good the original ads were – the Lego ones were a whole lot better.

It didn’t end there – the Culture Show ran a special programme on the impact of Lego on architecture and even David Beckham got in on the act, claiming that building with the stuff calms him down and that he’d just finished a 1,000 brick model of Tower Bridge. VIP tickets for David and his kids must be in the post. At one point I even expected a Lego character to turn up as Top Gear’s Star in a Reasonably Priced Car (or the Stig to remove his helmet to reveal a yellow, brick-like face.)

And this has been backed up by a very active social media strategy, dating back a number of months. This sends you to a website where you can create your own mini figure which you can turn into a poster, icon or wallpaper.

Of course, Lego the Movie (and indeed the overall brand) has a big advantage over a lot of its competitors. It is intrinsically linked to pretty much everyone’s childhoods, and the urge to create is something that most of us don’t grow out of. However the company has used its strengths and extended itself very naturally to the film and online spaces (witness its CUUSOO site where the community votes on potential new models). Consequently people have flocked to the movie and a sequel is already in the works.

We can’t all have the brand power of Lego, but brand marketers and startups alike can learn a lot from how the company operates. It is open, friendly and inclusive, great at customer service and most importantly, doesn’t rest on its laurels. There is always new stuff coming out – from electronics-based Mindstorms to more traditional models. Children and adults love the Lego experience and have an emotional connection with the brand that grows over time. You don’t really grow out of it. Look at your own company – how can you build your own little bit of Lego into the DNA? Minus the painful standing on a brick, obviously.

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February 12, 2014 Posted by | Creative, Marketing, Social Media | , , , , , , , , , , | Leave a comment

Pick up the phone!

Telephone

Everyone in business today has a plethora of communication channels to choose from, split between analogue (face to face, phone) and digital (email, social media, text, web). But is it a good thing?

As a member of Generation X (roughly defined as born between the mid 1960s and early 1980s) when I started work in public relations the only ‘digital’ communication was the letter (and extreme cases of urgency the fax). So analogue channels were pretty much the sole way of interacting with colleagues, talking to clients and pitching to the press. That meant that you had to develop verbal communication strengths such as being able to respond quickly to questions, give succinct answers and carry a conversation.

And PR was typical of all professions at the time – we were forced to speak to people (even if it was scary) and consequently got reasonably good at it.

But this has changed with the entry into the workplace of Generation Y. Weaned on new technology, these digital natives never had to learn to use email, social media or text as new channels – as far as they are concerned they’ve always been there. Lots of people I know comment on how much quieter today’s offices are as people are simply not on the telephone.

Which brings me to my issue. At the risk of sounding old, Generation Y need to start picking up the phone rather than hiding behind email and social media. It is very easy to craft a wonderful email, hit send and believe the job is done. Research quoted in Fresh Business Thinking found that 1 in 20 18-24 year olds is terrified of using the phone in work – and I reckon that’s a gross underestimate. The survey also found that 40% of 18-24 year olds were made nervous by telephone communication, against 28% of the total workforce.

We’ve all ducked making that call and sent an email instead (whatever generation we are), but here’s three reasons I think it doesn’t always get results:

1              Lost in transit
Most people get hundreds of emails every day and with the best will in the world it is easy to overlook one out of the many, whether deliberately or not. So the end result is that you don’t get a response and either have to re-send the email or try another channel.

2              Lost in translation
Even if everyone in the email conversation speaks the same language the chance of misinterpretation is high. Something that you can explain verbally can appear rude or just unclear, giving the wrong impression or leading to being ignored.

3              Lost in the gaps
With a phone call, or face to face, you need to think on your feet and try and build a rapport. You can change your tone, explain things and actually persuade someone by listening to what they are saying and responding accordingly. You simply can’t do that on email. While someone might come back with a question they are more likely to just hit delete and move to the next email.

I’m not Luddite enough to suggest going back to the days of telephone only communication, but people need to understand that there are advantages and drawbacks to every channel and pick the right one for each particular task. That might be email, social media or text – but it is vital that today’s workforce doesn’t neglect the telephone or we’ll end up as a nation of business mutes rather than engaging communicators.

October 30, 2013 Posted by | Creative, Marketing, PR, Social Media | , , , , , , , , , , , | Leave a comment

Moving marketing into the future

Marketing is at a crossroads. The rise of digital and mobile is providing the ability to get even closer to customers and deliver experiences that meet their needs. But like every change, it can be daunting. The discipline of marketing is moving fast and that means learning new skills and techniques to reach customers. Today’s marketer has to combine being a (big) data scientist and a technologist that can create and run web, mobile and social media campaigns with the more traditional skills of understanding customers and creating compelling propositions to reach them.

Luckily of course, being marketing, there are no shortage of gurus and conferences available to advise on how marketers can make the move to embrace digital. Unfortunately many of them may be well-marketed but are short on actionable content for the majority of businesses. After all it is no point seeing what someone achieved with a multi-million pound budget when you are scrabbling around down the back of the marketing sofa for loose change to pay for your new Facebook campaign.

That’s where the forthcoming Another Marketing Conference (25 June 2013 at the Junction in Cambridge) comes in. Designed to help marketers innovate, it features inspiring speakers and a chance to network with peers in great surroundings. I attended last year’s and found it a refreshing mix of interesting presentations and discussion of the pressing issues affecting marketers at all levels. Most importantly, I’ve used lots of what I learnt last year since then – and not just as content for blog posts. I’m not alone – according to the organisers 91% of last year’s delegates would recommend it to a colleague.

This year’s speakers include:

  • Rory Sutherland, Ogilvy, on multiple models of human behaviour
  • Richard Murphy, Nokia, talking about reinventing the company in the digital era
  • Paul Berney, Mobile Marketing Association, on reaching mobile consumers through content and context
  • Peter Waggett, IBM, discussing big data
  • Julie Roberts, TMW, on making marketing effective
  • Dave Trott, The Gate, talking about unleashing the creative spark
  • Jon Dodd, Bunnyfoot, discussing tapping into human behaviour
  • Julie Strawson, Monotype, on delivering a seamless consumer experience across multiple touchpoints

There are a lot of marketing conferences looking to advise people on what to do next. From my experience last year, Another Marketing Conference is well worth checking out, whatever sector or size of business you are in.

June 12, 2013 Posted by | Cambridge, Creative, Marketing, PR | , , , , , , , , | Leave a comment

Psychology, marketing and Twitter

Image representing Twitter as depicted in Crun...

Everyone is bombarded with marketing messages – from the moment you switch on the TV or radio in the morning to emails with the latest offers, posters by the side of the road and adverts on the internet.

The trouble is, as every marketer knows, even the most targeted consumer campaign has a lot of waste. Only 3% of unsolicited postal marketing leads to a sale and online conversion rates hover well under fractions of per cent. Not only is this expensive from a company point of view, but it also risks alienating consumers who object to being spammed with things that simply don’t interest them at that point in time.

And all of this is despite the fact that companies now hold massive amounts of data on our buying habits and can easily access our demographic profiles that we’ve provided to loyalty schemes or just posted up on the likes of Facebook.

According to researchers from IBM, the problem is that studying demographics and buying habits is a deeply flawed method. Just because you live in the same area as another 40-something bloke and earn around the same doesn’t mean you have the same interests. What is needed, according to the IBM team at the Almaden Research Centre, is to discover the deep psychological profiles of customers, including their personalities, values and needs.

There are five dimensions of personality recognised by modern psychology:

  • Extroversion
  • Agreeableness
  • Conscientiousness
  • Neuroticism
  • Openness to experience

Research has already shown that these traits link to buying behaviour. Agreeable people prefer Pepsi to Coke and if you link your product messages to excitement and adventure, it will appeal to the extroverts.

All well and good, but how can brands find out the psychological profiles of their potential customers? After all, no-one is going to go through a long personality test to give marketers the information they need to harass them.

The answer is via social media, specifically Twitter. IBM’s research has used software to analyse three months data from 90m Twitter users, matching the words people use against their values and needs. It took just 50 tweets to get a reasonable match for their personality and a very good fit from 200.

The moral of this story? As I’ve said many times, you are what you tweet. And as Sally Bercow’s court case has shown, it isn’t just words, but how they are interpreted, that define you. So be careful what you say, and if you want to put advertisers off the scent throw in a few random comments to confuse the targeting software…………..

 

June 5, 2013 Posted by | Creative, Marketing, Social Media | , , , , , , , , , , , | Leave a comment

Mapping the world

Since time immemorial accurate maps have been crucial to attaining and keeping power. Navigational maps helped first the Portuguese and Spanish, then the English to reach (and annex) new territories across the globe. Later colonialism literally redrew the map of Africa, creating countries where there were none before. Maps are critical in battle and to take stock of your resources and population.

Old military map, in German

So control of maps brings control over your subjects. As we move into a mobile device dominated future this explains the enormous battle to command mapping in your pocket, using the power of GPS and network connections to find out where you are. Nokia spent $7.7 billion on NAVTEQ, while Google StreetView has seen the search giant survey the world at a granular level. It explains why Apple ditched Google and launched its own ill-fated Maps app on the latest iPhone – the company simply didn’t want to give up control of such vital data to a third party.

Essentially knowing where you are enables companies to better understand your behaviour and target offers that fit your location and background. And that’s the positive news – it now only takes four location data points to identify a mobile user according to new research. Something that law enforcement agencies (and criminals) are no doubt very interested in.

But for all its benefits GPS isn’t as accurate as mapping companies (and advertisers) would like. Particularly in large buildings, such as shopping centres, it doesn’t give pinpoint positioning. Which is why Apple has just paid a reputed $20m for indoor mapping specialist Wifislam, which uses ambient wifi signals to offer maps accurate to 2.5m. With this level of data clever marketers could target you with an offer for Costa as you walk into Starbucks while the police could place you (or at least your phone) at the scene of a crime in a crowded city.

Apple isn’t alone in looking at indoor mapping – Google now features 10,000 floor plans submitted by businesses while Nokia’s Destination Maps product has more than 4,000 locations in 38 countries.

I often bang on about privacy and how marketers need to tread a fine line between providing targeted offers and respecting personal space. And the move to indoor mapping, combined with ways of interacting such as QR codes, augmented reality apps such as Aurasma and Near Field Communications (NFC) mean that the possibilities of tracking, understanding user behaviour and tailoring marketing could become ubiquitous. Except in the countryside, where poor mobile coverage means that if you are lucky it tells you what village you’re actually in.

The future is hyperlocal and mobile – marketers need to embrace this, but make sure that they’re getting buy-in from customers or they risk a privacy backlash from both individuals and regulators.

 

 

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March 27, 2013 Posted by | Marketing | , , , , , , , , , , , | 2 Comments

Do you really Like that?

Facebook Like stamp

Be careful what you like on Facebook – that’s the warning to take from research carried out by the University of Cambridge. The project used algorithms to predict religion, politics, race and sexual orientation based solely on what people chose to Like on the social network.

By correlating personality tests and the demographic information of 58,000 volunteers, the researchers were able to compare Likes with an astonishing level of accuracy. The algorithm used was 88% accurate in predicting whether someone male was gay or straight and between 65-73% accurate in guessing marital status and substance abuse for example. And it wasn’t based on simple linking – fewer than 5% of gay users clicked obvious likes such as gay marriage. Instead it used information such as likes on TV shows, films and music.

This is music to the ears of marketers (and social networks desperate to sell advertising to them). It could even help Facebook’s depressed share price perk up a little. And if you can accurately predict detailed demographic information from just one part of a person’s online footprint, imagine what you can do if you add in web browsing, search and other social network data. No wonder Google wants you to sign into its multiple services so it can collect the maximum amount of data, whatever device you are using.

From a consumer point of view there’s two ways of looking at this – most people will see it as an intrusion into their privacy and change their settings, but brands may well rationalise it as offering people exactly what they want. And as Mark Earls has pointed out in his book I’ll have what she’s having a large number of people’s decisions are herd led. So offer them an easy option that means they don’t have to think and they’ll jump at it. In many cases consumers may not even realise they are being sold to – which could be very worrying when people start being segmented on sexuality, religion or political affiliation.

So marketers need to treat this data with caution. Yes, it gives unprecedented insight but be too aggressive when using it and you’ll cause a public outcry which could damage your brand – and trigger governmental action to tighten privacy settings on the likes of Facebook.

However my own view is that we’ve been here before. Remember when store loyalty cards came in everyone predicted that we’d be laser targeted with relevant offers that drove us to up our spend? But if I get a mailing from a well-known chemists the vouchers are pretty much identical to my wife’s, with obvious male/female differences. It seems that marketers haven’t got to grips with shopping data in enough granular detail to deliver the killer offers that will drive me to automatically purchase without thinking. We may have the data, and even the technology to analyse it, but until marketers move to a digital mindset we’re unlikely to be brainwashed into buying things we don’t even know we wanted.

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March 13, 2013 Posted by | Cambridge, Marketing, Social Media | , , , , , , , , , | Leave a comment

Standing out from the Crowd (funding)

Turning your brilliant idea into a world-beating product requires a lot of things – drive, commitment, flexibility and often a large slice of luck. But one element it can’t really do without is money – whether to develop prototypes, employ staff or simply pay your own bills.

Finding funding has never been easy, but the range of potential sources does seem to be growing. As well as traditional sources such as VCs, banks, angels and friends and family, there are a range of government grants and multiple competitions that can potentially help startups take a step forward. I’m not saying this necessarily makes gaining investment easy, but it does give more options.The Pebble iOS Smartwatch

And another option that is expanding rapidly is crowdfundingsharing your idea with the world and getting them to back it before you start the expensive business of actually producing anything. If you don’t attract the pre-orders then it should probably act as a wake-up call – are you producing the right product that people actually want?

There’s been a run of successful, over-subscribed launches on sites like KickStarter. The company behind the Pebble smart watch raised over $10m and will start shipping real products this month. On a smaller scale, projects like photography book I Drink Lead Paint hit its target of £10,000, unleashing the thoughts and images of Mr Flibble onto the world. And B2B versions like Funding Circle have attracted government backing, making £20m available to British businesses over the next 12-24 months.

With growth like this, it is no wonder that Deloitte predicts that crowdfunding will double in 2013, raising £1.9 billion globally this year. Not huge in the scheme of overall investment, but potentially opening up funding options to smaller scale projects in a simple way.

But, with more and more projects out there looking for crowdfunding, how do entrepreneurs get people to view what they are doing – and potentially part with their cash? Kickstarter’s own stats show that just over 40% of projects hit their funding targets, showing it isn’t as simple as launching and waiting for the money to roll in.

This is where an enormous opportunity arises for the marketing and PR industries to get involved. Crowdfunding projects need marketing in the same way as any other product, identifying target audiences and demonstrating the benefits your new wonder widget brings to them. And then you’ve got to reach them, using both social and traditional media to identify the influencers that are likely to help you spread the word and convincing them and the world at large. Obviously the downside is that projects don’t tend to have any ready cash, but for anyone brave enough to go for payment by results the business is out there. At a time when the PR industry is suffering financially, creating smart, all-in-one services that help you get crowdfunding or launch your new iPhone app are just what it needs to be developing to recapture growth and build relationships with the next generation of smart businesses.

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January 23, 2013 Posted by | Cambridge, Marketing, PR, Startup | , , , , , , , , , , , | Leave a comment

Tapping into the herd mind

Yesterday’s Another Marketing Conferencesaw a number of illuminating and involving presentations, designed to provide ideas and guidance for marketers of all types. Held in Cambridge, it had some great speakers, slick (but not too slick) organisation and a wide range of delegates.

English: Deep in thought.......... Separate fr...

English: Deep in thought………. Separate from the remainder of the herd but with a wonderful view. (Photo credit: Wikipedia)

One presentation that stood out for me was Mark Earls (aka @herdmeister) talking about how marketers are essentially failing to understand their customers. We treat consumers as rational, thinking beings, when essentially we’re dominated by a desire to avoid thought and follow the herd. As Nobel prize winner Daniel Kahnemann put it: “We are to thinking as cats are to swimming. We can do it if we have to, but we don’t particularly like it.”

Mark outlined four handy principles:

  1. People do first and think later – they might post-rationalise their decisions and believe they acted logically, but that’s after the fact.
  2. We’re far more like Captain Kirk rather than Dr Spock, so you need to make it easy for people to make decisions, rather than thinking.
  3. People aren’t looking for the best, they are looking for ‘good enough’. We’re living in a universe of too much stuff, the vast majority of which doesn’t involve life or death choices. So we’ll generally go with what satisfies the need rather than spend days searching for the best possible option.
  4. People harmonise with other people automatically. In an uncertain decision landscape we’re most likely to choose what our peers are choosing rather than listen to marketing around us. We learn by copying others.

What I think is really interesting is how this plays out in social media and online. We tend to Like what our friends Like, we want to follow people that our friends follow and watch the videos that they do. So once something gets momentum behind it (think Psy’s Gangnam Style) it just grows and grows.

You can see this as depressing, as essentially it explains mob behaviour, but as marketers we need to understand how customers operate if we’re going to successfully engage with them. What decisions are independent and what are herd led? Structure campaigns accordingly and you can change behaviour and ensure your message gets across.

There’s more on this in the new book Mark has co-written “I’ll have what she’s having” which was handily included in the goodie bag from the conference and has moved to the top of my reading list. Watch this space for a fuller review.

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October 19, 2012 Posted by | Cambridge, Creative, Marketing, Social Media | , , , , , , , , , | 6 Comments

Social media and the sales funnel

Due to its massive growth companies are flocking to social media. In today’s world you can’t be a self-respecting marketer without a Facebook page, Twitter handle, YouTube channel, LinkedIn profile, blog, Pinterestboard etc.

facebook

facebook (Photo credit: sitmonkeysupreme)

This is all very well – social media provide a completely new channel that lets your brand interact with consumers in a genuine conversation. However there’s not a lot of thought (or rigour) going into the social media presence of a lot of companies. Some are simply chasing follower numbers, despite the fact that these can be easily bought and others are launching campaigns (like the Waitrose Twitter hashtag project) which seem doomed to attract only ridicule.

Companies need to take a step back and work out where social media is going to help them. If you’re selling a toilet cleaner is it worth having a Facebook page – will people really think it is cool to Like a bottle of bleach? It is time for marketers to put their puppyish enthusiasm to one side and look at some basic marketing and sales concepts.

When it comes to generating sales there’s a well recognised marketing acronym called AIDA, standing for:

  • Attention/Awareness – i.e. attracting the consumer
  • Interest – piquing their interest by focusing on benefits
  • Desire – making them want what you’ve got
  • Action – getting them to take a positive step such as purchase

Essentially lots of social media marketing is focusing on the first point, but doesn’t have a strategy to move people through the rest of the process. I think marketers are getting confused by the speed and accessibility of social media to think that you can skip the middle sections and go straight to Action. In some cases consumers do work like that – a tweet with a special offer on a new film/book/CD is a straightforward transaction, but these are the exception rather than the rule and merely replicate what you are doing through other channels.

Building interest and engagement with your brand takes time – you need to create a community, listen to your consumers and deliver sustained benefits to them. A money off voucher may be good for short term sales, but isn’t building long term loyalty (and who’s to say they wouldn’t have bought your product anyway?)

So marketers need to take a step back and ask themselves an honest question. Do consumers want to have a conversation either with or about your brand? Would they talk about it positively down the pub or is it just something that they buy because the toilet needs disinfecting? It could be that you don’t need that all singing, all dancing Facebook page and you should focus on other offline channels. Less sexy (and not as exciting on your CV) but there could well be better ways of connecting with consumers and driving sales.

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