About : tv stands for flat screens ikea
Title : tv stands for flat screens ikea
tv stands for flat screens ikea
hi everyone, i’d like to welcome you all.thank you so much for joining us today. hopefully you can all take a few seconds to get settledand we will go ahead and get started. but of course i do want to welcome you all toour exclusive webinar with tim ash today, surprising techniques for increasing conversionswith neuromarketing. we are super pumped to have you guys and especially to have tim withus today. the webinar should be just about one hourtoday and we’re also going to have a dedicated q&a session with tim at the end of the webinar,so please hold your questions until tim finishes his presentation and then i’ll open fora q&a session with tim following that. we’re also going to make the presentation that timis using available for you guys to download,
so just sit tight, enjoy this wonderful presentationand then we’ll have a great q&a session and you’ll have the option to download thispresentation deck. as usual this webinar is being recorded andwe will make sure to send it to you guys, hopefully over the next week, so just holdtight for that as well. without further delay i want to thank youguys again and hand it off to tim. well thank you so much, good morning everyone,good afternoon, good evening depending on where in the world you are. i am very excitedto (00:01:18 distortion) and hopefully do it in an entertaining way so that you rememberit. i have 90 slides in my deck; people have told me i can’t get through that in 45-minutes.you’re about to find out that they’re
wrong. buckle your seatbelt we’re goingto go really fast, and as abigail said, we’re definitely going to make the slides and therecording available in case you can’t take notes as fast i talk, which is a very likelything. before we get started i just want to tellyou a little bit about our perspective and then i will dive right into content.i run an agency called site tuners, we’re based in san diego, although we work withcompanies in all industries and all sizes around the world, and we’re a strategicconversion optimization agency. we work of course in landing page testing, on redesigningwebsites for a high converting experience, and a lot of our focus is actually enablingcompanies to do conversion rate optimization
themselves. we have ongoing conversion managementto help you with your technology, with your culture, knowledge transfer, mentoring andso on. that’s my perspective. i also work as imentioned with a lot of different companies all over the world.enough of that, let’s just jump into what we’re going to talk about today. to setthe stage i just want to say that what we pay attention to usually in our job as onlinemarketers is the wrong stuff. what i mean by the wrong stuff is we pay attention tothe next need. we pay attention to the technology, we pay attention to twitter this and instagramthat, and snapchat, retargeting pixels, and you could do bid management by day partingin google adwords. we’re paying attention
to all of the knobs and the whistles and thethings we can control, but what we’re not paying attention, in my experience we arekind of oblivious to, are the basics of how the brain works. the brain hasn’t reallyevolved too much in the last 50,000 years so i want to help you today to understandhow the brain works, just from a basic marketing standpoint. this isn’t going to be somebiology class, and then in part-2 i want to tell you how to apply that to your day today job and give you several strategies for how you can make more money as a marketerby applying these techniques. alright, so let’s get rolling.many of you have probably heard that we have two brains, that’s the common view, theleft brain and the right brain, one is creative,
one is logical. in fact it’s not at allthat simple, they’re tied together by this massive super highway of interconnectionsand work largely in tandem. but the biggest problem literally with this picture is there’sa bias in our perspective. we’re looking at the head from the top down and that happensto be where we have our neocortex, the big part of the brain.if you look inside the brain and explode it—by the way i’m not advocating you explodingany real brains, let’s just get that out of the way.this is what the picture looks like, in a way we have three parts to our brain. we havetaken apart the cerebral cortex, the two hemispheres, we’ve looked inside and in the middle ofthe brain is what we call the limbic system,
our emotional centers. this is where sensoryinformation is processed, this is where memories are formed, this is where emotions happenand those are tied together. we tend to remember things that have emotional saliency, they’rethings that are like “wow, that was awful or that was greatâ€. we don’t rememberthings that we’re used to. we don’t remember how we tied our shoes this morning; we doremember probably our first kiss, probably not our hundredth kiss. because by then we’vegotten habituated to that as well, so strong emotions help us form memories. and belowall of that is the brain stem and this is the oldest part of our brain. brains havebeen around for over a billion years, this is the part that we share in common with everyliving sea slug and lizard on the planet and
that part of the brain is there to just keepyou alive. it’s to keep the lights on. i’m guessing most of you are not super advancedzen buddhist monk meditators so you probably weren’t aware of the fact that you weresleeping last night. you probably weren’t aware that you have a who is making your heartbeat,who is making you take breaths? that’s this reptilian part of the brain, it’s definitelybelow our conscious awareness and it’s responsible for a lot of our inter viable level stuff.let’s take a look at each of these together, the overlays of the brain. again think ofthem as this evolutionary collage, there’s this old part, another part was added to it,another part was added to it, but we tend to be as i said earlier, very, very bias towardsthis top part of the brain. we are different
than other animals because we have the reasoningpart, this is mr. spock from star trek as many of you may recognize. he says thingslike “captain, we have 98.7% probability of dying in this encounter with the klingonsâ€.thank you mr. spock, that’s the reasoning part of the brain and we tend to think ofthat of our highest achievement. this is the thing that helps us invent microwave ovensand put people on the moon and build space stations, and do all of these amazing things.reasoning is the highest achievement of humans. well, yes and no, we’ll talk about thatin a minute. let’s take a look at this intermediate brain,the one that’s down there in the middle. that’s the mammalian brain and this part’sbeen around and we share it with every shrew
and every cow and every loaf and every otherkind of primate on the planet as well. this is the part that feels, the difference forus mammals was this idea of groups. that’s how we survive, we’re not out for ourselves,we do better against predators in groups. in order to function in this kind of worldwe need to understand how other people in our group feel or other animals in our group,so this is the feeling part of the brain. this is the part that stores memories. basicallythis is the part that remembers, i really like this let’s do more of that or i reallyhate this let’s avoid this in the future. that’s how the middle part of the brainworks, and finally as i mentioned there’s this underlying part, the reptilian brain,it just reacts. it’s there to keep the lights
on, to keep us alive and i’ll talk aboutthis in a minute. but it doesn’t change its behavior, it’s something that is therejust at whatever cost keep us alive, that’s it, that’s its job. usually by avoidingdanger and getting food, and we’ll talk about that in more detail as well.instead of focusing on the philosophical brain or the reasoning brain i’m going to giveyou a few insights into how these two lower parts of the brain, the limbic system andthe brain stem work and their characteristics. when i say lower parts of the brain well let’sswitch context. what i want you to do is to think about this as your web visitors. i’mgoing to describe now your web visitors to you. are you ready? i bet this is not howyou thought about it when you were designing
your websites and your landing pages.the first characteristic is they’re lazy. your web visitors in those lower parts ofthe brain don’t like to do work, they like things to be easy and to go along with that,your web visitors like simple choices. if i asked you now which one is the big dog,i don’t think you’d have any problem figuring it out. those are actually two dogs to scale,those are actually size relevant to each other. and you go tim, that’s kind of obvious,the big one is the one on the right. i would say yes it’s obvious and you should takeadvantage of that in your marketing. i’m going to show you how to do that in a littlebit. another characteristic of a web visitor isthat we’re extremely impatient. we don’t
have time for it. when you sit down in frontof a web browser, especially, you have access to an integral world of information. why wouldyou spend any time paying attention to something that is taking too long or is frustratingin any way. this is a major source of gain you can get in online marketing is addressingthis impatience issue. finally a lot of the things we do folks areautomatic. we like to think we have free will, and we’re wrong. if i said to you, keepyour finger on that burning hot stove for an extra minute you’d probably say no, you’rejust going to pull your finger away any time you touch a hot stove. a lot of our reactionsare automatic, that’s what got us this far. we don’t need to think about a lot of thingslike that. things happen pre-consciously and
subconsciously and i’ll talk about thata little bit more later, as well. we need to make sure that we take advantage of automaticbiases that people have, they’re not going to change. there are certain things that peoplewill never learn. i know a lot of us for example join a gym every january because we have anew year’s resolution to get in better shape. well guess what, by february those gyms areempty once again and we’ll still paying our membership probably, or if we cancel nextjanuary rolls around we join the gym again. it doesn’t mean that we can change habits.how many of you have tried to change a deeply entrenched habit? a lot of things are automaticand it’s really, really hard. it’s not enough to have force of will to counteractsome of that basic programming.
if we focus specifically on the reptilianbrain for a minute we’ll notice that it’s motivated by what i call the four f’s. hereis your lizard brain it wants to survive, so how’s it going to survive? well thereare four important strategies that it uses. 1. fight. i mean that literally, every timeyou meet a person, within a half second your lizard brain has decided how you would attackthem if you had to, to survive. i’m not kidding, you meet a total stranger and youfigure out what would i do to incapacitate or kill them. it’s your brain’s plan-b,it always has to be there because you don’t know, especially with strangers or wild animals,what you’d have to do to survive, so when you meet another living thing you go how couldi kill that thing if i had to. i know that
sounds weird and you don’t think about it,you’re not even aware of it, i promise you, but you do have a plan-b.2. there’s always another alternative which is flight, or running away. if you can runfaster than your enemy you don’t have to expend that energy you have, the potentialof being damaged or even dying in a fight. so a lot of times the right answer is to runaway. 3. of course as you go through every day youneed something else, you need energy so feeding is something that we’re acutely aware of,where is my next meal coming from. we didn’t evolve for the land of big mac’s and supersized french fries, we weren’t sure where our next meal was coming from and so it’svery important that we think about that. remember
we are hunter gatherers, we are small tribes,everything we have including our children, our weapons, anything else, clothes we’recarrying on backs so we couldn’t carry or store a lot of food, we weren’t in harborsthat could have containers and stock extra food away. feeding was very much a constantsomething that was in our thoughts and was triggered by food insecurity and needing toget energy to keep alive and keep growing. 4. finally the fourth f, fornication. we haveto find a mate and we have to find a good mate hopefully to continue our genes. there’sa book by dawkins called the selfish gene, it came out i think in the 70s or 80s, butit very much changed my way of thinking about organisms and animals and people. we tendto think of someone as here’s a discrete
person or here’s an animal when in factpeople change very much, they appear, they disappear, they die, they’re all very differentseemingly on the surface but one of the amazing things is at a genetic level we don’t changevery much, 99% of our genes or 98% of genes are shared with pigmy chimps and chimpanzees,our closest biological cousins, even down to other mammals we’re sharing 90% of genes.the genes are relatively stable and it’s the genes’ job to reproduce itself and getas many copies out there into the world as it can.if you think about, people are just containers to enable reproduction. we are always looking,it’s like where is the next potential mate, what do they look like? what is the likelihoodof my gene surviving into the next generation
if i mate with them. these are all thingswe’re constantly consumed with. to kind of sum it up if you had to think aboutthese lower parts of the brain, the reptilian brain and the mammalian brain, this is thebiggest fear that these brains have—change. change ahead, they don’t like change.i’m going to give you, this is for the mr. spock part of your mind, how the brain works.this is a logical diagram mr. spock developed for you about how the brain works and here’show it works – ready? the first thing we ask is, is this dangerous,whatever it is. if the answer is yes then we deal with it, that’s the brain stem.the automatic response, the adrenaline kicking in, running away, eating it whatever, matingwith it—actually that’s not dangerous,
in most cases it isn’t dangerous but forthe fight or flight stuff, we have to deal with it now. let’s turbo-charge the brain,let’s get these chemicals flowing, let’s get ourselves out of that situation.alright let’s say it’s not dangerous, and the next question we ask is, is it novelor new or interesting, have i seen it before? your first kiss, many of you probably stillremember, your hundredth kiss not so much. memories are only formed in the mammalianpart of the brain in the presence of strong sensory inputs and strong emotional reactions.in other words, think about it, if you know how to walk on grass or how to go down a rockyslope those are things you’ve seen before but if for the first time you encounter crossinga raging river and you have to get to the
other side, wow this is a new situation, i’dbetter pay attention, i better store this in my memory as a unique and novel experience.stuff that i’ve been there and done that a thousand times i don’t need to remember,it’s already kind of engrained in me. i remembered it the first time i saw it, soit’s very important that it is new and interesting, if it’s not guess what the default positionis—ignore it. the light just turned green, i’m still on auto-pilot, i’m driving mycar, i’m thinking about my plans for dinner after work today, i don’t need to reallypay attention why did that light signal change from red to green, what does it all mean?!it’s not like that, so we ignore things that are not new to us.finally if we think about it, only then if
it’s not dangerous and if it is new thenwe’re going to consciously explore it, and what i mean by consciously, we’re kickingit up to the new part of the brain, the cerebral cortex, those two big hemispheres, the leftand the right that we talked about earlier and we’re going to consciously figure outwhat this means and we have some extra machinery for doing that. we can reason about this,we can delay gratification, we can lay plans, we can figure out the social alliances, allof this stuff is going to consciously be kicked around and this is the first place where languagegets introduced, and consciousness. what do i mean by that?most of the information that comes into our brain is handled by those lower two parts,the pre-conscious part of the brain. it’s
really important to understand that we’reon auto-pilot and the cerebral cortex gets activated only 5% of the time, the others,remember i showed you that picture of the bouncer, they’re keeping things away fromthe cerebral cortex, it’s just being handled, it’s being handled routinely. it’s beinghandled subconsciously, pre-consciously, it’s not even something that is accessible to usin our language. somebody once said that man is a rationalizinganimal not a rational animal. i think that’s true, anything that’s accessible to ourconscious mind we can talk about, we can reason about, we can pretend to understand our motivations,but you know what that’s all pretty much bullshit. it’s total bullshit, we do notknow or have access to our unconscious motivations
yet those are the parts of the brain thatreact instantly and the conscious parts get activated a second or two later after we havealready made our decisions. lastly you are probably familiar with thetraditional sales funnels, it’s been around over 100 years, it’s this notion that weall have to go through these steps in order to act. i’m going to give you the new salesfunnel – there it is, the brain stem is the most important part. that handles theautomatic stuff then we take in the limbic system or the emotional part of the brainand the memory part of the brain, and only then if it makes both of those two filtersdoes it get to be examined by the cerebral cortex.folks, this is the most important slide in
my presentation, i want you to think aboutthis, this is the sales funnel and guess what you’ve been talking to the wrong part ofthe brain. most of us are making very reasonable online marketing campaigns and carefully thinkingthrough the logic and the features and everything we’re going to talk about, and we’re talkingto mr. spock. here’s the thing—mr. spock is asleep 95%of the time. alright, let’s jump in and now i’m goingto tell you how you make money off of this stuff. i’m going to give you some tacticaladvice on strategies that work to take advantage of these brain biases, and i’ll summarizethem at the end. here they are again, i’m going to go throughthem very quickly and i’ll talk about them
at the end again.the first one i want to talk about is limiting choice, remember your brain likes very, verysimple choices, and it doesn’t like a lot of choice. here’s an example for one ofour clients while working on this landing page or selecting a package with dish whichis kind of the satellite based tv service. here it is, pick a package. are you ready?there’s five packages available, quick pick one, pick one, pick one—do you see how hardthat is. there are five choices, there’s so much information and our brain can’thandle it. you can’t quickly make that choice. here’s another example from ecommerce, theywould say you’re choosing carpets, i’m showing the larger part at the top of thepage here on the right, the whole page as
you can see scrolls down. quick, pick yourcarpet, by the way this is page-1 of 96, 96 more pages to go—pick one, hurry up.it’s very hard for us to do that, but if i gave you a number of simple choices. a coupleof years ago i was buying a new sofa sleeper, and if you came into my store as a salespersoni would probably ask you some simple questions. let’s get started, simple choice – doyou like modern furniture or do you like more traditional furniture.i could easily answer that, it’s pretty easy to answer that. alright then i wouldgo on and ask you the next question which is, do you want it in leather or do you wantit to be made out of fabric? again, most of us, all of you right now, probably had a strongreaction one way or the other. i don’t want
leather it would stick to my skin in the summertimeor i have cats and there’s no way i would get a fabric couch, they’d tear that thingup in a week. so we have for whatever reasons emotional reactions and we know which onewe want, but do you notice how simple these choices are.if i said okay it’s a sofa sleeper what configuration do you want, you would imagineit in your space, in your house, in that room and you know the kind you want. do you wantit to look like a sofa, a chaise lounge, a daybed or a futon. you could easily answerthat question of which one you prefer makes sense for you.by the way i ended up buying this ikea one on the lower right and it’s served us verywell. it’s kind of cool, a very clever design.
alright, let’s talk about what you can dowith this as another tactic here, in other words how to implement it. we can only keepfour items in non-rehearsed short-term memory that’s why phone numbers have strings ofdigits that are grouped into four or fewer digits. if you have lots of choice actuallythe best thing to do is get rid of it. guide people with wizards, ask them a few questions,and you’re probably saying “tim, my advanced search on my website is just like a wizard,all you have to do is figure out this complex interface, your pull downs and they’ll havetheir answer.†guess what if you look at your web analytics,you will see that people don’t actually use your onsite search, only 2 to 3% of yourpeople will use your advanced search in filtering.
they just don’t use it, so make it a simplewizard, an overlay where you’re asking simple questions, each one having no more than twoto four choices. this goes for catalogs, too. how many of you have a catalog with a largenumber of items and you have a huge number of top level categories? well over 15 toplevel categories, and under each of those is an equal number of sub-categories.my advice to you is stop doing that, go narrow and deep. it’s better to have more clickson narrow choices than it is to kind of go very bushy and wide in your information architecture.now we talked about limiting choice but another key is to make choice obvious. let me giveyou a perfect example, let’s say you’re buying emotional pens for your company thatyou’re going to give away and have your
company logo on them. we’re going to goto a pen ecommerce website. quick, pick a pen. yeah go ahead, pick one, what are youbasing it on? the ones here in the upper right those are one pen, is this a four pack ofpens down here? well i’m not exactly sure, is that just four different colors. maybei should pick it because it’s made in the usa and it has a little american flag.do you see how these choices are completely non-obvious and pretty useless. how do i makethe choice, all the pictures look the same, they are tiny tubular objects, they are toosmall for me to see the details, i would have to waste a lot of time clicking through tosee bigger pictures of each one. but if you ask me instead, tim what kind ofpens do you like? just by seeing the head
of the pen, you see how much more informationthere is. oh, it’s got a rubber grip, oh it’s not round it’s easier to grip, orlook it’s a fountain pen. i could tell you which ones i like, fine point, fountain pen,regular, all of that stuff, how thick it is in the hand, how easy it is to hold. that’sgiving me good information. so it’s not just about limiting the amount of choice it’salso making the decision obvious, those are very different kinds of pens in terms of whati’m looking for. my advice to you is you have to make visualchoices clear, if you’re dealing with physical objects emphasize and distort the importantdistinctions to make them obvious, remove similar pictures because thumbnails all lookthe same are not helping me at all.
let’s continue on, as i mentioned our brainshave evolved and especially the mammalian brain for processing information from oursenses and combining that with memories of similar things we’ve seen in the past. thestrongest sense we have is visual, more than half of your brain is designed for processingvisual information. i’m not going to go into the detail, i promised i wouldn’t,bore you with the biology but a lot of your brain is there just to process visual information.we experience life as this unfolding 3d movie. and if you do remember your biology you probablyremember back in school you heard about rods and cones. two types of receptors in the backof your eye, one are designed to pick out color and fine detail, the other ones arethere to detect motion so you think you see
a clear high resolution world, well that’snot how your vision actually works. this is how it actually works, it’s blurryand grey scale and you don’t see a lot of detail and then your brain moves this expensivehardware in a fine focus color detection stuff, which is only 2% of your visual field aroundand it looks for objects of interest in your visual scene.here’s something you probably didn’t suspect, 98% of your visual reality is made up. yourbrain doesn’t actually see those, these involuntary eye movements are very rapid,saccades they are called, only see 2% of the visual field and your brain kind of fillsin the rest. you know what it’s close it to get you around and it works. you thinkyour actually seeing this, high resolution,
everything perfect but if you actually thinkabout where you’re looking or trying to look through the tube made by your hands rightnow at the scene, that’s how your brain actually works and you think you’re seeingit but you’re not. you look for things that are interesting andthey can help you construct visual reality. if that’s the case and if everything istuned to this visual, let’s see how that works. here’s one of the things, pay attentionbecause i’m going to do a quick quiz after this. i’m going to show you a page and iwant you to think about what does this company sell. it’s an ecommerce, so what does thiscompany sell, best buy? you’re probably thinking televisions – oh wait, the bannerchanged, what do they sell? well i don’t
know all kinds of vacuum cleaners and cameras.nope, a second later it changes again, what do they sell? oh, you’re probably thinkingthey sell appliances. nope wait, it changed again—what do they really sell? computersand xbox game systems. nope, what do they sell? oh, it’s the shame of not having asmartphone, that’s what they’re selling. okay, but let me ask you a simple question.do you see that question mark? let me ask you a question, what was behind that questionmark in the last picture? i bet 99% of you don’t know, probably 100%of you don’t know and let me go back because guess what it was the olympus touch camerain the lower right of the picture here, and guess what that camera was there on everyone of the scenes that proceeded it. when
i hit the previous button it was there aswell, and it was there on the previous one, and it was there on the previous one and itwas there on the very first frame i showed you. it was there all along and you were blindto it, why? because emotions overrode everything, emotion is really important—i’ll comeback to that. we also pay attention to human faces, heyquick take a look at this picture. okay now when i go back to my question mark, what didyou see on that page? i bet saw a big headed guy, a bald guy looking sideways, i bet yousaw the gray haired guy smiling, i bet you saw a distinguished gray haired guy on theright hand side of that picture. you were looking at human faces, we have another partof the brain that’s there just designed
to recognize human faces and it works verydifferently than our general object recognition, it works twice as fast also and because facesare a resource of information about the environment we’ll pay extra attention to it, but didany of you read the text? no. did any of you know what this company does? not without alot of really conscious control because where you looked on the page was kind of anchoredon the face. it doesn’t even have to be faces, we usemy face for example at the top of our screen as a backup call to action as you can seehere to specifically talk about contact us or put us to work, but inside the body ofthe page you can see we have bright orange button, the rest of page is blind, we havea sports car right above it and you see how
that sports car picture anchors your attention.by the way if you want labels to get rid another great tip is put them right below a picture.that button is in a very specific spot, it’s right below the picture and you know whati just doubled, tripled or quadrupled the amount of attention and response in termsof the number of people that are going to read that because it’s anchored by the image.you have to be very careful with images as well, as i mentioned video emotion is alsosomething that’s very, very powerful. there’s various ways to represent that.on this page you actually see what i call the one two punch, we have a static videowhich is at the top of the page, the play video and we have one of these walk aroundvideo spokespeople that comes off the side
of the screen says a few things and then leaves.that automatic attention triggering that’s going to happen by the combination of themotion and the motion being of a person is very, very powerful. i’m not saying youshould go and get a video spokesperson for your page tomorrow, i’m saying if you wantto grab someone’s attention that will do it.how you represent video whether it’s an overlay, whether it’s embedded in your page,there’s lots of different ways to do that, you should think about that as well becauserepresenting video, static video on a page is often a tricky proposition.for example this is camtasia, they have software for editing videos online, or screen videosand things like that and that little gray
button that you’re seeing there is how youactivate the video on this page. it doesn’t look like much of a video at all, does it,a gray button, that’s now how we’re used to seeing videos. so if you’re messing withvideo, it’s not if it’s a video or not it’s how you represent it and whether itauto plays, the length of it, there’s a lot of factors that could be very, very powerfulso you have to fine tune the presentation of it to make sure it has maximum replay.basically to summarize about our visual system, we have a visual hierarchy. at the bottomis text, people don’t read text that much and it’s only going to be remembered bythe mr. spock conscious part of the brain, that’s the only part that can read or uselanguage in any fashion. images are not the
firecracker, they’re the hand grenade, they’remuch more powerful so unless you have a giant text headline which in effect becomes an imagebecause it’s so bold and gigantic, images get paid attention to a lot more than text,and in the presence of images text probably won’t get read at least not at first.then finally motion, motion is what i call the nuclear option, folks. in the presenceof motion even static images won’t get noticed, and forget about text in the presence of motion.i know a lot of you have banner sliders and frankly i don’t care if they fade or dissolve,how many frames you have on your page, just the fact that you have any type of motion,one of those social media tickers that have “here’s the latest tweet about our companyâ€,well that’s wonderful and it’s distracting
from everything else going on, on that pageonce you put that widget in there. so really, really be careful about this stuff.there’s lots of ways to manipulate visual attention, here’s an example of severaltactics. which of these four plans do you think they want you to use? i’ll come backto this but it’s the first in the list, it’s the brightest, it’s the one withthe special offer callout, it’s the one with the biggest price. it’s the one withthe larger box, there’s lots and lots of ways to manipulate our visual attention. i’llcome back to that towards the end as well. the thing you need to remember about visualbias is you can manipulate them by screen position, visual space background, anchoringimages, and as i said motion, the nuclear
option.one of my favorite things and this is coming up on our last two topics is to talk aboutcontext. context and order allows you to create experiences where you can bias what i payattention to. this can be very, very powerful. let me show this, this is hosting plans fromyahoo hosting one of our clients for small business and you have three plans here. youstart on the left, it’s the $2.50 plan, $4.00 and $6.00 and you see them in that orderand the rest we read from left to right so you’re seeing that $2.50 price first, that’sthe first one we anchor on. by the time you get to the $6.00 plan you’re thinking wow,that’s really expensive, it’s more than twice as expensive as the basic plan. it hadbetter really, really be good. what you’re
doing is you are in fact pushing a rock uphilland yet most of us, logically, show offers in price increasing order but that’s nothow we buy. for example if i were to buy a suit and iwalk into a men’s clothing store, they’d say mr. ash, what are you about a 42 regular?here try on this suit, oh that looks very good on you. would you like a shirt, whatabout this silk tie, or what about this belt. once i bought a thousand dollar suit, a fiftydollar simple tie doesn’t seem like such a rip off, but if you did get me to buy afifty dollar tie would you really expect to say, would you like a thousand dollar suitwith that? that’s not going to go over very well.here’s an example, a wizards offer, this
is software we created so you could uploadan image or a screen shot of a page and see where visual attention goes on the page. wehave our three plans here, gold, silver, bronze. now check out the numbers, let’s pay attentionto this, mr. spock, $197, $97, $27. by the time you get down to that bronze plan andif you see them in this order you’re probably going to go that’s a great deal, the bronzeis only $27 a month – compared to what? compared to $197 – but mr. spock if we doa deeper analysis we’ll go wait, under the gold plan you get 200 of these visual keymaps for about $200 so it’s about a dollar apiece, for the silver plan they’re abouttwo dollars apiece and for the bronze plan i’m paying almost three dollars apiece forthe key maps. the bronze plan is a really,
really bad deal says mr. spock.mr. spock is asleep and you created context in my irrational brain by anchoring me onthe $200 price point after which a $27 price point doesn’t seem nearly as bad. there’sother ways to manipulate context, even the choices you give in the offer. this is a veryfamous case study done on the economist website. this is a fantastic magazine, by the way ifyou have to just read one magazine for the rest of your life to know about what’s goingon in the world, that’s the one. subscribe to it and read it religiously, you can’tget through every issue but it’s so good i want to read pretty much every article.everything from world news to breaking events, science and technology, really fantastic.after that commercial for the economist, and
no i don’t make any money off of that.they had three offers, they had their online edition, the print edition and the combinededition. do you notice anything really weird about the pricing here? look at the two onthe right, if you have to make a decision right now about which of these offers to take,remember i said we like simple choice. you’re probably thinking, tim, you’d have to bean idiot why doesn’t everybody choose this one right here because i get the online andthe print edition and it’s only costing me the same amount, why wouldn’t i do that?let’s see what happened when people actually did when they ran this test and when theywere able to try this out on people. indeed, great news, nobody’s an idiot. when givena simple people go yeah, i’ll choose the
combined edition for the same price—nobodychose the print only. do you see that? you’re probably thinking now, yeah but that’s kindof a simple choice. why don’t we simplify the choice even more, why don’t we makethis situation. now, we’re talking about print and online versus online only, let’sget rid of that stupid print only for the same price idea.guess what happened when they tried this—it actually shifted the offer. did you noticethat in the first part here when we were talking about – we were considering only the twochoices on the right because that was the obvious choice, we didn’t really want toconsider the non-obvious choice of just the online versus online and print only becausewe didn’t know how to evaluate the relative
value that was there, they were different.given the same price point we can see, one’s got two icons, one’s got one icon. the withtwo is obviously a better deal, but when we go to this context it changes, now we’rethinking about which is the better value and a lot of other unrelated things. look whathappened, nothing good folks. the average revenue per visitor actually dropped 30%.a lot of times you don’t want to make it that obvious.here’s some ways to manipulate multiple offers. i showed you earlier that dish example,we had five packages. so here’s an original offer set, what can we do? we can minimizethe choice but still have them in high to low order. we can minimize the choice butflip them to have them in high to low order.
we can shift which of the three we’re showing,we can shift this towards the more expensive offers, for example. we’re not giving youa rational choice we’re biasing it by showing you, in the context of these three, the $39one is the cheap one. if we’re in the context of these earlier three the $39 one is themedium compromise option. do you see how just changing the context, i don’t know whatcable tv packages should be worth or what their value is, but i do know how to comparethem next to things that are right around them.what you need to know about context and framing is context really matters. we anchor on thefirst thing we see, so throw out large irrational numbers in the lobby of your experience. youdon’t expect those high options necessarily
to sell, they’re decoys. many times they’rethere just to get you to frame the choice you really want them to make. what you’llsee is the sales and a reasonable compromise in that context will increase, i promise you.one final plan i want to talk about and then we’ll get to the q&a. prices are pain, rememberwhen i told you about your brain being essentially an evolutionary collage, well guess what?prices map to the same part of the brain as physical pain. i know that sounds weird buthere’s the logic if you will again, mr. spock speaking. the logic is we’re usingthe same brain hardware and we have finite resources, again hunter gatherer running around.if i give you my weapon i don’t have a weapon, if i give you my food i don’t have the food.we’re talking about finite resources so
loss is felt. money is this interchangeablecommodity that lets us control resource. with money i can buy food, i can buy weapons, ican buy a house, i can make sure that my family’s protected, all of those things. money is aresource and if we think of it as finite, losing money or spending money is experiencedas a loss of resources or a loss and that’s the same parts of the brain that react toany other kind of loss, including pain that we feel.here’s an example of a menu from an expensive restaurant. there’s a couple things you’llnotice here, but one of the things you won’t notice or the thing you’ll notice is theyhave more expensive stuff at the top, basically, sides and smaller priced stuff at the bottom,but they also don’t have the dollar signs
in front of the menu. it’s clear in thecontext when you’re doing that something represents a price, drop the price symbolbecause the symbol itself is actually representing pain in my mind.let me ask you quick, which of these prices is bigger—quick, quick, quick! it’s theone on the left, well no mr. spock says. they’re both exactly the same. but you know what wehave these shortcuts, the brain likes simple choices. it knows what is big and what smallis. the number on the left is bigger, i mean physically bigger than the one on the right.so if you take out the common, if you take out the period, if you take out the extradecimal points that aren’t doing any good anyway, you’ll look like it’s a smallernumber.
we can do the same kind of icing with physicalposition. which is the higher price? well they’re both the same but the one on theright is literally the higher price, and by putting it in a box and making it at the topof the box versus the bottom of the box, your brain will perceive it as being bigger andconsequently more expensive, and consequently since it’s a price more painful.you can do the same thing by tucking the number on the left to the corner, even making itsmaller physically. again it seems like a smaller price. it is physically a smallerless significant price, but it’s the same dollar amount.if you think you’re immune to this manipulation, you’re not. we all react to this stuff instudy after study after study, you’re not
immune because mr. spock did not charge.how about this, which is the biggest price? well guess what, they’re all really thesame. would you care if you saw something for $2.00 versus $1.99, but our brain looksat the leading digit, says that the part i’m going to pay attention to, and we can evenhide and make smaller the non-significant digits as you see on the right there by tuckingthem into the upper right corner. a special case of this is you can actuallyhave your price to the point where it falls over a digit boundary. if you can decreasethe number of digits that can be very, very, very powerful. if you have control over itlike that, make a smaller digit. then this is for comparison sake, if you’retrying to get me to compare something that’s
really expensive. what you want to do is breakit down into the smallest possible units, so less than a dollar a day, this is how starbuck’ssells their overpriced coffee. less than pennies per caffeine delivery capsule, but you’repaying five bucks for a cup of coffee. but then of course it says in the context “whenyou prepay and you’re in for $300â€. it’s just simple math, less than a dollar day,so yes less than a dollar a day is $300 in less than a dollar a day. this is if you havesomething that’s very high priced and you’re trying to make it seem lower.what about the other side of that? what if you actually have something that’s a muchbetter deal than your competitor, then you actually want to grommet together, you wantto combine it and say over the lifetime value
of this car you would over paid by $5,000if you bought a rolls royce. why overpay, you make the pain seem bigger, so it’s asmall difference on a monthly basis or even an annual basis. you try to roll up that differenceand say the lifetime cost difference is going to be huge.alright, let’s put it all together, i told you some stuff about pricing. what if we weregoing to combine all of these. let’s go back to our dish example and what we mightdo there. this is the choices, we are in the middle of doing a test right now, here’sthe two packages, the original page and the new page that we came up with and we appliedall these strategies that i told you. we limited the offer set, we went high to low order,we skewed it towards the middle packages,
we gave them a simple choice, the two packageson the left are the same price but one you obviously get more and we visually biasedin all kinds of ways by making the box bigger, making the best value and all those, makingthe box blue, all of those. and the effect in orders for signups and installing dishwas tremendous, a very large impact. you can see that these little tiny irrationalthings really, really matter and that’s what i’m going to leave you with, so stoptalking to mr. spock. if you’ve liked what you heard today i justwant to invite you to check on our conversion conference series. we’ve been doing thissince 2010, we’ve had 26 shows worldwide. coming up very quickly here we have our londonand berlin shows, and our big u.s. show is
may in las vegas at the rio, all suites, hotel,casino. we’re just putting up our agenda, but i promise you it’s going to be an amazingshow. i will personally give you your money back if you don’t like it. right now wehave the pre-agenda rate going for another week or few days, only $797 with two fulldays, four tracks, check it out. conversionconference.com. if you’re interested in talking to us, reachout, we will be glad if you qualify to review your conversion funnel for you and take alook at some of these obvious conversion issues. this is a case sensitive url, so bit.ly/reviewmyfunnel.i wanted to go as quickly as i can, i promised i’d get through 90 slides in about 45-minutes,i have done that. i am very accessible so feel free to reach out to me in any one ofthese ways, and i think we have time for q&a,
so if you have questions. i know a lot ofyou already have, please write them in the chat window and i will try to get as manyof them as i can. indeed guys, thank you so much tim that wasincredible. so you guys, put your questions to me in the chat panel. i think we have acouple there already, and so let’s get started. speaker:alright, well let’s take a look at some of these.we’re looking at the price bundles, is it better to put the bundles by themselves ona page or to click through for details? by the way we have my presentation deck availablewhich also follow with an email to get you a link to that as well.the question is should you show offers on
summary cards like that or should have peopleclick through to a more detailed link? let’s say the more investment there or the morecomplicated your offer, your choice, the more you need a standalone product detail pagefor each of your offers. it’s okay to have a summary and then your action isn’t tobuy it, it’s to actually to get more details and you click through to a detail page.another question, for the pricing, does 99 cents and $1.99 work for goods that are brandedwith more upscale, handmade or unique stuff? i don’t think it matters; again what mattersis the price pain point. we are looking at the most significant digits in front of thedecimal point, so it absolutely works in all situations. if it’s a rolex watch and it’s$9,999 versus $10,000 that break point is
very, very important as well. it works forall prices. i’ve heard this; michael is asking whether$19.95 versus $19.97 makes a difference? again the jury on that is out, i think it’s notthe end point, it’s not the last two digits that make a difference, it could be .95, .97,.99, it’s the significant digits in front of the decimal point that make the difference.it’s the fact that it is 19 something and not 20 something, because the 20 is twiceas big as the 19, i know that sounds strange but the 20, the most significant digit isthe 2 as compared to a significant digit that’s a 1. again you can logically try to back offfrom that not be swayed by it but we can’t help it.another question is about selling seminars,
if they’re not physical products how canyou position a catalog or what images can help? i think it’s important if you haveseminars, or videos, or ebooks or other kinds of intangible products that you come up withthe best possible graphic that represents it. i showed you on our site for example forthat strategic conversion jump start service, basically a blueprint for a high convertingwebsite. we had the racecar, that’s a high end, no end dollar racecar. what we are tryingto do with that image is evoke the quality of that service compared to our kind of moreroutine, review our website quickly and give us some tips. we actually have jumper cablesto jumpstart your car battery on that because that’s do something quick, hard hitting.that’s not the same as a finely tuned racecar,
so you have to come up with images that willevoke the emotional response whether it’s quality, high performance, authority, excitement,whatever your brand stands for. there’s a great book by phil barden called decoded,it has a large bright orange cover that talks a lot about brand and position. your imagesshould support your brand and what you want it to stand for in your visitors’ minds.alright a couple more questions—what if it’s not a fixed price but a quote, howdo you optimize that? when you’re trying to do that, the quote is just to get themto act, it’s not about the price, it’s the value of the quote, so what is the valueof that. maybe it’s speed, we can get back to you with a quote within five minutes orone business day, or we can compare quotes
from several different vendors and find thebest price for you, or maybe it’s a written quote with a price guarantee. basically youhave to make the value proposition itself more appealing; it’s not about price atall you’re absolutely right about that. corrine is asking, how do you get people totake advantage for a product trial that’s already free? it’s creating the value proposition,is it scarcity, is it the financial benefit of doing this trial, is it how easy it isto get up and started. a lot of trial stuff is free, create your account and you’regetting the benefit of whatever it is right away, so it could be the ease of setup ofthe trial, it could be the length of the trial. i know a lot of you are stingy with your trials,you make it a one week trial or a one day
trial, unlimited but only for a few hours.don’t do that, if you really have something that costs nothing to deliver, it’s an onlineservice or software like that, let me have a long trial. try this and get a lot of valueout of it and get to habituate and to get into the habit of using it every day and thenthe pain of it going away will be the big problem. so don’t be stingy on your trials,make them longer than you think you should. all you’re doing is delaying the cash flowbut you’re actually increasing the take rate or someone’s tendency to act on theoffer. a couple more questions here, favorite ecommercesite. that’s a tough one, there’s no such thing as a favorite site, because one of thekeys to have a good web experience is not
the web, the part on a website is just thetip of the iceberg, the rest is below the water line, most of the experience is happeningin ways you can’t tell. the best sites frankly are personalized, and guess what? that meansthe experience you see is not the same way i see, because they’re using all of theinformation about my past visits, what i looked at, where i am at the moment by geo-targetingyou, whether i bought before, what i bought, what i looked at, what i put in my cart withoutbuying. how much time i spent on their site, how deeply i would go into the funnel fromthe homepage to the category to the product details to the cart, they’re looking atall of those things to determine what experience i should have next. it’s not okay to havethe best “on average†experience on the
surface of your website, the best sites arethe ones that do everything i said with personalization, with follow up emails, with leap scoring,with marketing automation, all of that stuff is part of the overall experience in gettingsomeone to buy at an ecommerce site. promotional offers, joining frequent buyerclubs, and notification of early sales, all of those things are what matter, so yes youshould have good usability on your basic ecommerce site but don’t forget the important stuff.alright let’s talk about the service company, a company that sells a subscription to software.what do you do to apply this to services? services start with the same needs as productsbut they’re intangible. there’s a fantastic book by beckwith, get it, this is for kindle.for anybody that sells services go get this
book, it’s by harry beckwith and it’scalled selling the invisible. one of the things he talks about is making things as tangibleas possible, so taking this intangible service, why you go to a lawyer’s office and theyoffices in the building, they have those overstuffed leather chairs. they are trying to say thequality of our work is so solid we’ve been here for a hundred years and we’ll be herefor a hundred more. it’s anything you can do in terms of your website design, in termsof the quality of your downloaded materials, how you answer the phone, all of those touchpoints, your physical presence, pictures of your offices or anything like that. it hasto be professional high end and solid, so make the intangible tangible and make it visibleand make it concrete.
alright i think we only have time for onemore question, i’m going to answer monique’s. how do you present two or three differentproducts that are all on sale? you have to decide which one you want to bias, so againordering is an important thing, which one you put first, which one you put best valueor which one you say only three of these left and then they’re going to run out. all ofthose time pressure biasing visual saliency attention things, you have to decide whichof those on sale items you want to push essentially. that’s up to you that depends on your marginsof the product cost and so on. i think we’ve used up all of our time, againwe will be following up with you with a recording and we’ll send you a copy of the deck. iwant to thank you very much for tuning in
today and throw it back over to abby. awesome, thank you so much tim. i think we’regoing to all agree there are a ton of takeaways for that. again, we will be sending all ofyou a link to the recording and also a link to the presentation in case you guys didn’tget it downloaded in time. i hope you all have a great rest of your day, morning, evening,wherever we are, i think we’re all super thankful for tim and have a lot to take awayfor today. again, thank you guys so much, enjoy the restof your day and you’ll be hearing from us soon.end