increasing market traction - understanding your customer
TRANSCRIPT
• CEO & Lead Strategist, Hunter & Bard• Award Winning Marketing & Branding
Agency• Previously Professor of Marketing
for Startups at Tel Aviv/ Jaffa Academic College
• Mentor at: 500 Startups,• Founding Mentor at: Google Campus
TLV, Microsoft Ventures Accelerator TLV
• MBA, Kellogg School of Management
Shira Abel
I’m writing a book!Signup to be notified here:http://www.shiraabel.com/book
https://hunterandbard.com/saas-insider/
Agenda
@shiraabel
Traction - Why I'm Focusing on Behavior
Why It Works
Action Triggers
It Works Even When We Know
Form Follows Function
Small Things Matter
Real Life Examples
TRACTION
You might have traction now, you probably don’t. Here’s how you understand your customer so you can build it.
@shiraabel
Numbers – in General§Right now you probably don’t have enough traffic on
your site to test much§Product Market Fit = 40% of your customers would be
devastated if your product disappeared tomorrow §Watch your churn rate (keep it below 2% if you’re
SaaS – preferably negative churn)§ 10% MoM growth is what’s expected in most
accelerators in Silicon Valley (depending on product)
WHY IT WORKS
THE BASICS – the chemicals in our body are biologically programmed to react to certain things in a specific way
Endorphins§ Runners high§ Masks physical pain§ The root of endurance§ The reason laughing feels good§ Games
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Dopamine§ The good feeling of progress and
accomplishment § Crossing things off lists§ Need to be able to see your goal
(e.g. Corporate Vision)§ The reason why we become “hooked” on notifications from
our phone§ Triggered through variable unexpected rewards§ Highly addictive
Serotonin§Leadership, pride, status§Branding§Leader boards§Social proof§Raises confidence of the winner and the supporters§ “Mefargen”ß hebrew word§Trust + security = confidence = innovation §Corporate Culture
Oxytocin§Love, friendship, mommy-hood§Hugging, shaking hands – the touch matters§Giving time & energy to help for free (money doesn’t
count – more on that later)§Witnessing acts of human generosity releases
oxytocin §Brand – Corporate Social Responsibility
Norepinephrine §Fight or flight response§Mobilize brain and body for action§Helps us be alert / at attention§ Increases blood being pumped
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Cortisol§Stress hormone§ Impairs cognitive performance§Toxic situations destroy our ability to create§Paranoid (layoffs does this)§High stress environments§ Inhibits Oxytocin
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ACTION TRIGGERS
You can’t force anyone to do something they don’t want to, but if they do want to – this will help you get them there
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T-Shirt Economy
§ Reputation based§ Incentives are about doing something for the love of it NOT
financial reward§ Easier to get someone to do something for free than for less
money (e.g. lawyers would rather do pro bono than get paid less per hour for the same work)
§ Changes the way we perceive the work we do§ When we already have our basic needs met, we’re more likely to
do something for our own joy§ This is where the evangelists should be – that’s why not paying
them is a good thing
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Financial Economy
§ People judge if something is “worth” their time§ Become less enthusiastic if the work is not paid
according to expectations§ Make sure incentives are aligned with goals§ Proven to be a bad way to build incentives to get
people to work harder§ Studies have shown that for cognitive work, a larger
reward results in worse results§ Loss aversion, however, brings better results
§ This will affect the affiliates the most
First Choice Brand Effect“…when the favorite brand
was included… the choice was made instantly… this…
occurs only for the respondent’s number one
brand…”*Decoded, by Phil Barden
Reward Status Achievement Self Expression Competition Altruism
Points • • • • •Levels • • •
Challenges • • • • • •Virtual Goods • • • • •Leaderboards • • • •
Gifting & Charity • • • •
• Points• Badges(Achievement Symbols)• Fixed Action Rewards• Leader\board• Progress bar• Quest Lists• Win Prize• High-Five• Crowning• Level Up Symphony• Aura Effect• Sep-by- Step Tutorial• Boss Fights
• Virtual Goods• Build from Scratch• Collection Set• Avatar• Earned Lunch• Learning Curve• Protection• Recruitment• Monitoring
• Appointment Dynamics• Fixed Intervals• Dangling• Prize Pacing• Options Pacing• Patient Feedback• Count Down• Throttles• Moats
• Narrative• Elitism• Humanity Hero• Higher Meaning
• Beginners Luck• Free Lunch• Destiny Child• Co Creator
• Milestone Unlock• Evergreen Mechanics• Real-Time Control• Chain Combos• Instant feedback• Boosters• Blank Fills• Voluntary Autonomy• Choice Perception
• Friending• Social Treasure/Gifting• SeeSaw Bump• Group Quest• Touting• Bragging• Water Cooler• Thank you Economy• Mentorship• Social Prod
• Glowing Choice• MiniQuests• Visual Storytelling• Easter Eggs• Random Rewards• Obvious Wonder• Rolling Rewards• Mischief• Sudden Effect• Oracle Effect
• Sunk-Cost Tragedy• Progress Loss• FOMO• Evanescence Opportunity
• Status Quo Sloth• Scarlet Letter• Visual Grave• Weep Tune
MEANING
ACCOMPLISHMENT EMPOWERMENT
UNPREDICTABILITY
AVOIDANCE
SCARCITY
OctalysisSOCIAL INFLUENCEOWNERSHIP
http://yukaichou.com/
Engagement Tools
FORM FOLLOWS FUNCTION
Building the marketing into the product. Think about what you want people to do, now reverse engineer it.
Watch the Funnel
Acquisition – Learns About Product
Conversion – Signs Up
Buys
Retention – Uses Product
WOM (Sharing)
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THESE WORK EVEN WHEN WE KNOW
Even when we know we’re being manipulated, we’re susceptible to certain things.
https://kiralynblue.files.wordpress.com/ 2014/02/thinking--conf--bias.png
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Confirmation Bias
How You Say Things MattersResearchers found that placing the following statement at the end of an ad… caused their trust scores to jump as much as 33 percent!’“You can trust us to do the job for you.”
Emotions Vs. Logic§When numbers are even, e.g. $100 –
we rely on our feelings§When numbers are exact, e.g. $17.86
we rely on our logic§ It affects negotiation as well…
§Fear – Insurance§Guilt – Mother’s Day§Trust – Financial
institutions§Value – Matching prices§Belonging – Part of our
community
§Competition – Doing better than the Jones’s
§ Instant Gratification – I want it now
§Leadership – Early adopter & evangelist
§Trendsetting – What are the leaders doing?
§Time – Save time
Get Emotional@shiraabel
Point being – When is your customer using your product? What’s their cognitive level?
Cognitive Resources§ Behavior depends on time of day – we’re more likely to have no patience
at the end of the day, when we’re hungry or tired§ Place – if we’re being interrupted every 30 seconds, our cognitive
resources will be spent – decision making goes down§ How much we’ve had to concentrate – again, using up cognitive
resources
We can’t decipher truth from fiction when we’re cognitively spentOur mood can change simply by putting a pencil between our teeth and forcing ourselves to smile
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All of the stock photos are taken fromhttps://stocksnap.iohttps://www.youtube.com/watch?v=ReRcHdeUG9Y http://stress.about.com/od/stresshealth/a/cortisol.htm THANK YOU’S: Dan-ya Shwartz Bar-El & Ze'ev Rosenstein https://www.psychologytoday.com/basics/dopaminehttp://uxmovement.com/forms/why-users-fill-out-less-if-you-mark-required-fields/http://dancounsell.com/articles/prompting-for-app-reviewshttp://agevik.se/post/72876032312/20-lessons-about-making-viral-apps-i-learned-the-hardhttp://contentmarketinginstitute.com/2011/09/web-content-conversions/http://www.slideshare.net/startuplessonslearned/eric-ries-the-lean-startup-google-tech-talkhttp://www.slideshare.net/gzicherm/nir-eyal-hookedatgsummit http://www.businessmodelgeneration.com/canvashttp://www.briansolis.com/2008/08/socialization-of-your-personal-brand_28/http://www.avc.com/a_vc/2004/03/its_a_small_wor.htmlhttp://www.quora.com/Udemy/How-did-Udemy-get-11-000-courses-online-so-quicklyhttp://www.amazon.com/Mountain-Three-Wolf-Short-Sleeve/ product-reviews/B002HJ377Ahttp://lifehacker.com/the-psychology-of-a-fanboy-why-you-keep-buying-the-sam-1300451596
http://www.amazon.com/BIC-Cristal-1-0mm-Black-MSLP16-Blk/ dp/B004F9QBE6http://www.youtube.com/watch?v=7QmCUDHpNzE http://www.youtube.com/watch?v=ZUG9qYTJMsIhttp://www.macadamia-apps.com/app-launch-7-mistakes-to-learn-from/http://flowingdata.com/2011/09/18/yoda-pie-chart/http://blog.bitly.com/post/9887686919/you-just-shared-a-link- how-long-will-people-payhttp://www.briansolis.com/2011/09/whats-the-r-o-i-a-framework- for-social-analytics/http://www.slideshare.net/setlinger/altimeter-social-analytics081011finalBreakthroughMarketingPlanshttp://www.seomoz.org/blog/tracking-the-roi-of-social-mediahttp://ideas.deloitte.ca/blog/2011/09/social-media-going- beyond-roi/http://www.jeffbullas.com/2011/09/20/the-10-key-mistakes- many-bloggers-and-writers-make/http://www.jeffbullas.com/2011/03/01/the-10-best-facebook- campaigns/http://www.facebook-studio.com/http://www.seomoz.org/blog/tracking-the-roi-of-social-mediahttp://marketingfortomorrow.com/tag/marketing-tone/http://www.theatlantic.com/business/archive/2015/01/the-psychological-difference-between-1200-and-1167/384993/
References & Reads