For brands to close-in on a deal, and differentiate themselves from the competition, they need to speak their story. A story that speaks about –
A) Who they are – Name, legacy, good-guys, positioning strategy
B) Why they’re here – to change the world, to sell innovation, to cure cancer, to spread joy
C) What should we I about it? – buy my stuff, signup for my newsletter, like my FB page, or don’t buy from the competition
Ledbury Shirts for Men
On their site, they have videos that take the customer through the journey of who they are and why they’re here. See, customers have no idea who these guys are. They know Louis Phillipe and Wills are corporations that give decent quality shirts. Who is this Ledbury? Hence, a strong story line helps to create the bond with the customer. If the story resonates, people might even buy a small-ticket item just to try it out on the first-go. Reminder to all you marketers – Upload the damn video to YouTube!
They stand for anti-GM cattle and agriculture. Its message is clear. Choose us for your next fast-food purchase. Its better for everyone. That was their attempt with the scarecrow video. Theyve also got a kick-ass concept called Farmed&Dangerous where they attempt to create social change via art and comedy.
A) Who they were – A niche brand that was anti-establishment
B) Why they’re here – To ethically serve customers with anti-GM food
C) What should I do about it? – Choose us. Because, we are the good guys. Vote for us with your money.
These guys didn’t focus so much on the who were are, but they did a great job of explaining why they’re here. Its a pretty exciting concept that captures the essence of what a bank should be. Their competition tried something similar – IDBI (your friend in banking), ICICI (easy banking), but failed to produce a coherent story.
An average attempt that could have been awesome. Their whole schtick is all about meeting, interacting and having fun. But they forgot to focus on who they are. There are countless perceptions of Starbucks in the market – all the way from being snobby and pretentious to being a place of home for writers and poets. Starbucks needs to find the 1% of their fans (the core) and reach out to them. Starbucks needs to be cool again.
I’ll keep updating this list. Contact me at firstname.lastname@example.org or via Twitter at @sanchitkhera7.
Change is uniquely similar to creating consensus. In that, both are propagated via propaganda. In other words, there needs to be art, in order to create change in consumer preferences or even social change in general for NGOs to expand their wings. They need to artfully showcase change, and what change can do. In terms of actual marketing, we are artists that are dying as a breed. We are simply making photo-realistic copies of existing paintings instead of making new ones.
The Apple Mothership (I think its overpriced, but if everyone around me had an Apple, i’d probably buy one too). Apple’s always pushed the envelop and people appreciate it. Now take Google. People hate Google Glass. Imagine if Apple had launched Apple Glass. It would have been a massive hit! Just like the finger-print recognition. Finger-print recognition is extremely scary, but people are cool with it. Apple has always been about “thinking different” and “innovation”, so people will keep buying whatever Apple pushes out. Consumer behavior is stunningly changed by the advent of the letter “i”. If everywhere around me is the eco-system of iWatch, iPhone, iPad, then hell yeah – I wanna buy an Apple Glass!
Now, think about how much of an impact movies have. Movies move cultures. In India, a Hindi movie called “Taare Zameen Par” about a special-needs boy sparked debates across the country and eased off the stress associated with raising kids. It works. Art changes people. French society has evolved much faster than the rest, and it shows in their art and movies. Our ancient ancestors were more open about subjects like sex and violence then we are. Art moves things. Then why can’t art move marketing?
Think about marketing for a second. Its about expression. Ads, commercials, posts – they’re all expressions of a company and what it stands for. If a company is young (vice, snapchat, bleacher report) they would talk about things relevant to young folks. Like a salesperson but without a person. The ad pitches you a product and you buy it. That’s all marketing is – expression. But you can express something in an artful way – which beats the noise. Now that’s marketing.
You wanna change the world? Do it with artful marketing. Need to redesign the way you look at your NGO? – Design a few creatives that showcase a better world and why you wanna change the current system. Do it with art, flair and style. Every company has its own style.
If Coca Cola wants to push more liquid sugar drinks and give more children diabetes, then it would have to express itself as a brand that is concerned around happiness. But happiness is all about inclusion. Therefore, crafting an ad around changing consumer desires and community-like feelings will drive the happiness bandwagon.
Now, if Samsung wants to truly express itself, it needs to think beyond “sales” and “profit”. This 10th century mentality is corrosive and you can’t sell a product to a consumer around this proposition. The phones aren’t built for style or design, and neither do they perform better than others. They’re junky phones that have other junkie brands following suite (Micromax, Xiomi, HTC, etc). Crap producing crap. Now, what Samsung really needs to do is to find a few “unique” traits of a brand that creates consumer joy. Imagine a world where Samsung actively pushes the Design bandwagon. It would beat Apple down with a stick. Competing solely on design and imagining a world where customization and personalization is the norm, and not the extreme. Apple tried this and failed. So did Nokia. Wanna know why? Because it didn’t go with their positioning. Apple’s positioning is innovation. (NOT DESIGN). Nokia’s positioning is price (NOT DESIGN). Ask a few people in the room next to you, about what they say when they hear the word Samsung.
YouTube is, simply put, a giant in video sharing and search. There is no alternative for it at the moment. How does a Giant then continue to stay relevant, despite the attacks from miniature niche players like Vimeo, Wistia, Dailymotion, and a few others.
YouTube (Overview) – YouTube is nothing without its content producers. It is only a website that has a search, subscribe and a recommendation facility. It’s recently invested heavily in a content production-house where it invites YouTube superstars to use their equipment and facilities in the US. This will follow suite in other countries as well in the coming years.
YouTube (Unique Selling Proposition) – “Your own personal television”, where you decide what shows you want (from women in bikinis to music videos and movie trailers). You can pick your superstars and watch them until sun-down. You can binge on your favourite videos and even upload your own for sharing with friends and family
YouTube (Consumer Behaviour) – There are by-and-large two consumer segments that visit YouTube.
One of them has an account with a few subscriptions (or none), the other has a lot of subscriptions and has commented on videos during his visits. There is a third category of content providers – who are people that upload videos on their own channel. But these guys don’t make up the vast majority.
YouTube (Business Model) – YouTube makes money through ads. And these ads are targeted to individuals with certain interests. Now, YouTube needs you to subscribe to a few channels, or segment you in groups based on what you’ve liked or commented on, and even on what videos you watch from the same account. Without this data, YouTube is helpless against Facebook, and Google, in terms of advertising. Hence, YouTube needs You to subscribe to channels and to watch more videos on their portal. If you simply watch and go away, YouTube makes nothing from that deal.
YouTube (Targeting Strategy) – YouTube has to please both segments (content providers and consumers), and continue to grow rapidly in developing nations that have growing internet speeds. YouTube thus needs to focus first on the acquisition of viewers, and then quickly shift focus on providing the right tools to content producers to showcase their work better. From a marketing stand-point, YouTube can gain a lot by acquiring new viewers to create and account and subscribe to a few channels.
YouTube (Marketing Strategy) – Finally, now that we’ve arrived to the meat of the matter, I want to establish the consumer-base again. YouTube wants to make people sign-up to other channels, and then come back to visit again. Retention builds data, and that data allows YouTube to categorize you and then serve you ads.
Its marketing strategy should solely be about the value that YouTube channels can bring to you as an individual, and should provide you with key take-aways about what you stand to lose if you don’t sign-up and subscribe.
Their previous ad focused on more on sharing videos with one another, with the focus on the deaf girl with the implant. This strategy works well when the intent is to create virality via social connections. However, it fails when that loop is not closed-up. If you share a video with me, and I dont subscribe to that channel – or even see anything worth-while on that channel, I lose interest and move on.
Their parent Google’s approach was a little different. They wanted to focus on how Google is a great tool to make your desires come alive. The old Indian and Pakistani friends wanted to meet after decades, and Google made it happen. I much prefer the angle that IDEA used with their “NoUllu Banaoing” campaign focusing on the empowerment of the internet. Google could have gone that route.
A new ad needs to be developed around YouTube channels, and how valuable they are to the average consumers. A Malayali coconut vendor could know about the various techniques of cutting coconut faster and better. His daughter can learn mathematics by watching YouTube videos online. His son can perform better in sports by taking cricket lessons online, and his wife can make better recipes with coconut after watching her favourite Manjula “the Indian chef”‘s channel.
See now when you have people subscribing to these channels, products and service providers can directly market to them with relevant ads. A cricket bat company can directly advertise to his son about cheap bats, a masala company can showcase their range of offerings to his wife, etc. You get the picture.
Now, onto the storyboard of the ad –
The Pitch – We show families across India from all different states. A family from the north, the south, the east and west. And we focus on how YouTube is helping them build a better life via the content on the site.
The Elements – A hip young family’s child watches nursery rhymes on his fav channel. A poor family (coconut vendor) uses YouTube to empower themselves. A young student learns IIT-level mathematics while going home from tutions. A single mother, learns how to make the perfect baby cereal. A painter gets inspired by watching his favourite French films. A tech-entrepreneur learns more about how-to find investors for his next big idea.
The hook – We would showcase people clicking on the subscribe button on their favourite channels.
The closer – A young boy, recording a video on soil conservation. His dad comes in and asks him what he’s doing. His son shows him his channel on soil conservation proudly. Cue – dad’s pride and tears.
Tag-line – YouTube, a place for everyone. A place for home.
Call-to-Action – Go to YouTube.com, and find your favourite.
Back to humour. Humour makes content a lot more interesting. Interesting – The third corner stone.
Let me start from the beginning. The why’s of the ways of the UUI approach.
Its easy to remember. Content is all about UUI – You, You & I. Jab Jab, Right Hook.
1. Unique – The content has got to be different from what’s out there. Nobody needs another “10 ways to improve your social media”, or “23 ways of getting backlinks” – it’s done to death, and shouldn’t be pursued by any industry. And no memes either, it’s gotta be original. Doing video content when everyone’s doing infographics is being unique. Having an authentic voice and tonality, when everyone’s speaking in buzzwords in unique. Being a market leader when everyone around you is bleeding thin in a red ocean of celebrity endorsements, and product give-aways – is UNIQUE.
2. Useful – Is this content really solving a problem in the market? I.e. does this content really make a minor/major mark in people’s lives or mindsets? Are these D.I.Y. tips, or a dummies guide to the universe? Is this an infographic that shows you how you can increase revenue by 10% by changing your CTA buttons, or is it a boring video about how your organization “leverages the cloud”. Can a consumer really benefit from your content? – is the question you should be asking. Otherwise, what’s in it for them? Nothing –
Why else would a consumer share your content with her friends? How else is she going to gain social currency, according to Jonah Berger?
Consumer do realize that a brand benefits from whenever they talk about them – its no secret. And so it makes sense to give em what they need, and let em share your useful content with other people. Remember to make is Useful!
3. Interesting – Here is where you add the soft touches to your content. Emotion, humour, voice, expression, graphics, intro music, UI elements, etc. etc. until the sun goes down. This is where art meets science, where you really breathe life into an otherwise boring content. People are not going to view your content if you’ve built a boring interface. Add storytelling, add theatre, add art to the production.
There’s a reason why people visit Rome. Art makes the mundane interesting, and so piles of useful data can only be appealing and shareable if it looks like the statue of David. A useful bicycle can get you from town A to town B, but a beautiful woven basket makes it worthwhile.
I actually wanted to call it *machines should be more like people, but that wouldn’t link bait as much [#shameless]
Read the damn article. Don’t just skim it.
The Insight:- We rattle our remote controls, beg our phones to not die out, apologize to our laptops when we drop em, and feel genuine disgust looking at old Web 1.0 interfaces. Why is that?
Because, as human beings we seek human interaction. Its our survival instinct. We see Jesus on toast, see faces on moon rocks, and figures on a Rosharch ink blot. Its called Pareidolia, and it happens because its easier to interact with a human v/s an inanimate object (like a rock or a website)
We’d much rather outsource our own internal processing to a human being by simply telling our problems to him and expecting intelligent solutions in return. That’s also why we hate pressing buttons on an IVR, and we want to jump straight to talking to someone on the other line.
So, whats the significance of all this? How does it affect websites?
Here’s the ugly truth. A website, at its very core, is simply a channel that provides all the information that a consumer needs – designed in a manner that is simple and aesthetically pleasing. Mummas and Papas feel extremely happy when their children are looking their best with a bright smile and clean shoes.
When websites are only designed for this purpose (transaction and not interaction) – there’s a sense of cognitive dissonance in the minds of the visitor. Her query can not be solved effectively and she moves on. Sure the information is all out there, but it might not be the information that she’s looking for, or maybe there’s too much of it at one go.
“What we really need to focus on, is building sites that estimate all the queries that a user could have (while browsing through) – and portray them in an aesthetically pleasing manner.” [ Select this statement with your cursor and it’ll automatically tweet it out for you. How cool!]
Square space understands that on other sites, visitors need to enter their credit-card info (yuck), and has explicitly stated that there’s no need to.
Because of this untapped service in the market, there came many-a-UX patriots that claimed many things. One of them was “user journey mapping”, and the other – “copy optimization”.
All of this was integrated quite effectively with the help of the Ol Sacred Sorting Hat or more commonly referred to as “The A/B Test” “Gryiffindor !” *cough cough. I meant – “Treatment”
There’s a lot of noise out there, and it seems that everyone’s into copy and conversion optimization. What really lies underneath, is the core essence of the website. By applying the Khera Model of web communication, we have the following features-
1. The personality of the website
2. The tone of the persona
3. The type and level of interaction
4. The persona’s background and his beliefs
I just slipped you a fast one. What does all this mean?
A website is simply a salesman/lead designer/product manager/CEO/secretary represented in their virtual essence. An Odesk is more like a concierge, vs an Alibaba’s more like a middle-man bargainer. A Microsoft.com is more sales-man & customer support rep, and a Salesforce.com is the product manager that provides all the relevant information to its customers.
People coming to these sites have different objectives and different questions to ask from it – before they decide to part with their money.
1. The personality of the website
Amazon.com What kind of a personality does Amazon have?
1. The Logo – It starts with the cheeky smile. A cheeky smile that starts from A and ends at Z. Notice closely how the bottom of the Z curves inwards – similar to the lips that push into the cheeks while smiling. In most micro-expressions discussions, its considered to be a sign of contempt, however its usually a sign of playfulness. [Asymmetrical Smiles] #Smiling like the amazon logo.
It all starts from here. The cheeky smile puts people at ease, when they’re nervous about getting a good deal, finding a decent fathers day present, or buying appliances for a new apartment. The cheeky smile that reassures us that Amazon’s got us covered. I’m curious about the effects of mirror neurons on seeing a smile on a logo.
*Side note – Magazine Ella Bache was forced to remove a cover photo of their modes staring blankly directly at you, all the while totally nude. They were told to put a picture of the models smiling.
2. The UI – Amazon’s design has a really smart balance of information showcased in a some-what minimalist way. The left-hand navigation has a large list of item categories – but its not really all that intimidating. Sort of like a Lionel Messi. Amazon’s got the goods but won’t brag about it. Its like a work of art – It really is. Check out Khan Academy’s Ben Kamens demonstration of Amazon’s navigation.
The navigation is actually a customized jquery that triangulates the position of the mouse and displays the drop-down accordingly. Neat stuff. [Moving on]
What else is working for them?
– The giant ass search bar – All e-commerce sites should have a giant ass search bar!
– The top right hand corner stamp of security – “100% purchase protection”
– The overwhelming amount of stuff on the homepage – Amazon knows a thing or two about user behavior.
We’re scanners. We scan stores both on-line and off-line, to find something that suites our mood.
There’s two types of users (broadly speaking) that come to Amazon
1. Visitor that knows what she wants
2. Visitor that doesn’t
By having a lot of tabs on the homepage along with prices and products, it captures the attention of both the casual browser and the specific hunter. Why? Because, a hunter will add his favourite MP3 player and add a set of headphones that she “happened” to notice on the way, and a casual browser sees a set of headphones on sale and picks em up immediately. Amazon probably spends a lotta cash on user journey mapping and behaviour analysis. $$
3. UX – I’m not about to map the journey here. I’m just gonna mention a few points here.
a. User doesn’t have to look too far to get the information that she needs. Everything is just a click, slide, mouse-over, drop-down, away. b. Recommendations. Amazon is the guide to the marketplace of the world, and below every product description they have a recommended products section.
Amazon is in the top position right now, and is in no way in any danger of being dethroned. However, as the competition heats up, they’re gonna wanna invest in improving their persona a bit.
i. Changing terminology – The terms, phrases, copy, text, need to be more personalized to the category, demographic, and geographic. E.e. Having “This item successfully added” for an electronics product page, and having “Item successfully added. The kids are gonna love it.” for a teddy bear product page. Its the little things that count, and leave the user extremely happy with their experience.
ii. Cleaning up the interface – Amazon’s constant struggle to please everyone has left their pages filled with information. Filled to the brim in most cases. There’s a lot of content on each of the pages, and the experience feels clustered. Visitors may move on to specialized stores – like Zapoos for shoes, Istore for phones, Nike.com for shoes, etc. etc. A clear persona, is a clear brand, is a clear message. You know what else? Here’s Etsy’s unsubscribe page –
2. The tone of the persona
Speak the consumer’s language, or speak a language that consumers want to be a part of. Its all about being a part of a tribe, and understanding what terminology the tribe uses, and how the sentences flow.
Your consumers will be the best source of insights regarding tone. If you still want examples then you can check out Copyhackers here, although I think its incredibly dumb to pick a voice from a list. Although Joanna, breaks it down quite nicely here –
Quick Insight – Build a website for a single tone of voice, when you can’t target consumers one-to-one. If you’ve got the chops, then just like Google, you need to customize the information presented based on Geo, Demo, Phsyco, and Intent-o.
No Examples for this one! Because, its too easy to just find one yourself or develop one for your clients. You know what though, it might difficult to convince the bosses if your own tone is a bit simplistic and non-scientific.
Don’t worry, I got you covered. Here’s a great resource that creates a communication framework from USABilla that can put any upper management exec to sleep instantly. Its gotta lotta funky words and frameworks that sound really fancy and convincing.
3. The type and level of interaction
Zappos is known worldwide for their customer interaction stories. Here’s a few more.
They’re crazy into their consumers. Its a lot more relationship oriented. Now think about the interaction at a Walmart, or a McDonalds, where the interaction is strictly transaction based. Apart from the loyalty card or two, there isn’t much of interaction between them and the customers, which makes it extremely difficult to recommend the product to their friends.
In other words, TALK TO YOUR VISITORS! Nuff Said. [Moving on]
WebEngage is an awesome freemium tool that allows you to directly connect with the customers on your site. Appsumohas some excellent free tools as well. The absolute least that you can do is this
4. The persona’s background and his beliefs
This one’s my favourite, because this really defines your brand, your marketing efforts, and your communications in general. The background and belief.
Bank of America
Ain’t nothing more ‘Merican than Bank of ‘Merica. Their background and beliefs are pretty clear. We’re conservative but we care about our customers. We believe in technology as our tool to a safer, secure, and prosperous nation. And we hate hippies. Talk to a group of younger Americans, and they won’t forget what happened with BoA and the bailout.
There’s still some bad blood there. Add to that the fact that BoA has been voted last in terms of consumer satisfaction. But you know me, I hate reports that claim this or that, because they can be easily fudged or even badly misinterpreted. Eitherway, its clear that a company’s background and beliefs can be appealing to some [old conservative duds] and not to others [young mixed race] folks.
Establishing the background and beliefs of a company on its website is critical to communicating your message.
Congratulations cool person! You’ve done it. Much effort. Many pains. Multiple rewards await you in your future.
Alright, in conclusion. I hope you f*ckers create a kick ass site that communicates to consumers, rather than building a one-way beep boop beep machine that dumps information into your Pre-frontal cortex.
Focus on the UI (the make-up) and make it as creative as possible. Cuz pretty faces draw attention for a slightly longer time and non-pretty ones.
I like this one. The fact that the Talia created a landing page that very creatively (via a cute lil puppy and a basket of goodies) indicated the overall message of the website. Creativity in communication is an excellent sign to consumers – that the business is confident enough to be artful.
Here’s the before –
Here’s the after –
The bump in conversion ? – 65%. Although that number really doesn’t matter all that much, the cute lil doggy will basically make your neurons transmit the message smoother.
I found this old gem over at Academia.edu, from an author named Stuart Schmidt. This paper’s pretty cool. The most intersting thing I picked up from this is the fact that people use a HARD tactic when resistance is anticipated. Bosses anticipate anarchy, and order their subordinates to comply. Consumers may sometimes feel like that when dealing with sales reps. I dunno. Seemed kinda interesting.
[button link=”http://220.127.116.11/project/language-persuasion/” type=”small” color=”red” newwindow=”yes”] Download Here[/button] OR Download the E-book
Simply put, anchoring is how people live their lives… Woaah! *We gotta bad ass over here*
Anchoring is all about comparing a certain prospect to another. The base-line product, base line sale, menu option, service, vacation, relationship, , etc. etc. etc. – we all live by comparing our current life system to potential options that we see.
Bar Rafaeli will never date you, cuz Leonardo DiCaprio is a thing. She’s gonna anchor her decisions based on who she’s with right now.
[Slow clap for the ones that couldn’t make it to the rich guy boat party]
So, you know how it’s so hard for businesses to tap into clients in the B2B space? That’s cuz clients are anchoring their existing providers with you. If you can anchor yourselves with the existing provider and compete on only one or two key differentiators – then it makes the decision easier for the client.
Examples of Anchoring?
1. A $55 Filet Mignon coupled with a $60 Lobster will make the decision easier if anchored against a $25 Roast. Its a no-brainer – I’m not spending twice as much on something that fancy – although, if I order the Roast, and I like it – I’m gonna think about how incrementally more delicious the $60 Lobster is gonna be.
2. Expensive audio equipment.
So a consumer walking into the digital store will have a set budget in mind, and looking at the expensive price point of $449.95 – the decision is clear. He’s gonna go for the cheaper headphones. Anchoring works in this way. You gotta check out their product pages – their UI is quite above average – check it out
3. Digital newspaper subscriptions – I love this experiment by the economist Dan-the man-Ariely’s. *Props*. I pulled these images from Peep’s blog at ConversionXL (another interesting resource)
Here’s the setup – a group of MIT students (the top 1% of the worlds smartest) were asked to choose a subscription model for the Economist magazine. They were free to walk away from the deal as well. [Not sure about how the questions were phrased]
One of the groups saw the following options –
1. Web Edition- $59.00
2. Print Edition – $125.00
3. Print and Web – $125.00
84% went for the last option, and 16% for the first.
Option 2 was a decoy. An anchor stimulant – if you will. Consumers base their anchor point at the web edition, and imagine their lives with Options 2 and Options 3. Option 2 seems like a waste of money, and option 3 appears to be a gosh-darn bargain. I’ll pick option 3.
Now here’s where the experiment gets realllly interesting –
When they removed the second option for group II, only 32% went for the last option. A huge drop! When group II anchored themselves at $59, they were too focused on the incremental cost of a print edition – and then they considered themselves environmentalists *guppies* and went for the web edition instead. Too much of a processing load to handle.
“When people were offered to choose a trip to Paris (option A) vs a trip to Rome (option B), they had a hard time choosing. Both places were great, it was hard to compare them.
Now they were offered 3 choices instead of 2: trip to Paris with free breakfast (option A), trip to Paris without breakfast (option A-), trip to Rome with free breakfast (option B). Now overwhelming majority chose option A, trip to Paris with free breakfast. The rationale is that it is easier to compare the two options for Paris than it is to compare Paris and Rome.”
I think this sums it up.
Types of anchors
Pricing anchors –
i. First digit anchor
The magic of “9”…*spoooooky*
Why is everything on this god-damn planet priced at $49 or $499.95, or Rs. 19,900, or something of the sort?
That’s cuz we anchor the price of the product to the first digit we see.
In the case of $49 – We instantly associate the price of the product as being $40 + $9, instead of being $50. This is huge. Because now you’re looking at these numbers separately and they’ve become an acceptable amount for placing an order. $40 bucks works for me, and what-the-heck – $9 isn’t that expensive either.
This also works incredibly well for the $1 a day campaigns. A few insurance companies and cell phone providers say that their service only costs $1 a day instead of saying $30 a month. Why? Because you can ANCHOR $1 and compare it with your daily bus fare, coffee, bag of chips, energy bar, etc etc etc. Instead of comparing $30 to a pair of shoes, or a bag, or something of higher value. Consumers will automatically anchor onto the $1 and won’t budge.
We can’t help it – that’s just how people are. If we like something we see, we wanna convince ourselves to buy it. And if there’s an external influencer like a pricing anchor – then damnit we’re sold!
*To Note* This doesn’t kick in during discounts. Selling a $50 product and discounting it by $5 is too much of a load on the consumer’s mind. Now she’s gotta factor in the after-sales tax, and she thinks “When you add it all up, it comes up to the same price”
ii. Comparison anchor –
Having a dummy price-point built in to your pricing, works great.
When I look at the MacBook Air’s 64 GB hard drive – I’m like NO WAY is anyone gonna pay that much for that little. And now – I’m sucked in. The ad has got my attention, and got me thinking about the other three brands. The Macbook’s also intentionally placed on the extreme left – like its almost automatically distanced from the true mid-range selections. (:0 Genius)
iii. After Sales – Upselling ancillary items after someone has made a huge purchase has a lot to do with anchoring as well. The cost of the accessory is now compared to the price of the overall product. The product now being the anchor.
E.g. A car with a music system. A flat screen with a set of speakers. A PS3 console compared to a game that costs almost 25% of the price of the PS3. Compared to the investment that the consumer has just made, the price of a smaller commitment/product/upgrade on a flight/extra leg-room/ super-sizing / etc. etc. etc. seems inconsequential. “Go ahead n do it, but make it fast.”
Service Anchor –
a. Customer Experience -When a customer walks into a store, and they’re treated with respect & made to feel affluent, it creates an anchor. An anchor where the consumer starts believing the script, and ends up spending more during the stroll-around or atleast leaves the store with a smile. Bob would recall his experience and tell Cindy,” I didn’t buy anything from that store, but man were the staff helpful. Great bunch of people. They’ve even got a decent winter-coat.”
[Slight Caveat] Sometimes the staff is just a bit rude to their customers – especially in high end outlets. Bunch o’ bitch*s. I haven’t imagined an interaction where that would pay off – unless you want to influence an existing customer who’s browsing. The fact that the sales person didn’t bother me, made me feel like I belonged to that store, that brand, that ideology, that socio-economic class.
I remember listening to an episode of Freakonomics or maybe it was NPR, where a guest talked about a guy (a stranger) in the subway telling others (strangers) whether they’re ok to enter the subway or not. The man would simply say, “You can enter. You can’t. You sir, can enter.” Kinda made him feel like he was in a nightclub. He later gushed and said,”It felt nice.”
b. Ownership anchor – A Starbucks coffee will have your name written right on it. Starbucks is the largest chain of coffee shops in the world. Correlation? Maybe. Just the fact that someone publicly acknowledged your presence and wrote your name on your order – does have a significant impact. I think it was either Dan Pink or Ariely that mentioned this in a TED talk a few years ago, but the principle still holds true. When you have ownership of a certain product or a service – you value it much more. Starbucks made you the owner of that cup-o(insert_fake_italian)-cinno, when they wrote your name on it and called it out to ask you to claim your property. The anchor now being the fact that you now have ownership of the brand’s product, which inclines you to value it more, enjoy it more, and return for more of the same in the future.
“Drazen Prelec and Dan Ariely conducted an experiment at MIT in 2006 where they had students bid on items in a bizarre auction. Ariely explains in his book, Predictably Irrational, that the researchers would hold up a bottle of wine, or a textbook, or a cordless trackball and then describe in detail how awesome it was. Then, each student had to write down the last two digits of their social security number as if it was the price of the item. If the last two digits were 11, then the bottle of wine was priced at $11.
If the two numbers were 88, the cordless trackball was $88. After they wrote down the pretend price, they bid. Sure enough, the anchoring effect scrambled their ability to judge the value of the items. People with high social security numbers paid up to 346 percent more than those with low numbers. People with numbers from 80 to 99 paid on average $26 for the trackball, while those with 00 to 19 paid around $9.”
c. Brand Anchor – Brands perceived to be a certain way, will find it incredible difficult to convince consumers otherwise. Walmart will have a hard time selling $1000 Louis Vuitton hand-bags, customers will never forgive Enron, and Barack will always be seen as a caring father to Malia & Sasha, regardless of how many drones or the extent of the NSA program. Celebrities make constant appearances in advertisements, or the paparazzi – they want to anchor themselves in your minds as having a certain trait or certain personalities. Miley has anchored herself as a crazy wild performer, and hence can’t be pictured in a Disney production – unlike singer and actress Selena Gomez.
Communication that anchor is crucial.
Take Virgin. They’re into everything. Even space exploration.
What do you think Virgin has anchored itself onto? Being the best in the music business? The greatest network provider?
No, its the experience. Virgin anchors itself on experience.
I love love love flying virgin. I’ll pay a little extra and change flights to fly virgin -because the experience is far superior to any other airline and its not that expensive. This superior experience can be literally translated to any and all businesses, and consumers know that deep down. Want proof? Branson’s signed up 700 folks to fly in space, asking them to pay $200K upfront per seat. Why? Because he’s gonna take good care of em, and because they know they’ll enjoy the experience.
Well then, what should a brand do?
Experiment – and track the experiment closely. It’s a lil bit of work but it’ll pay off, and you’ll make millions – I promise.
I) Choosing an anchor – Pick a dummy comparison price point, pick the $9 pricing trick, select the $1 a day effect – choose whatever you want, but keep in mind about the communication strategy around it. If your competition is spewing the same numbers as you are – then its no fun to be in that game. Pick any anchor based on your current objectives, market trends, competition review, and brand profile.
II) Setting up the anchor – Next, you want your major communications channels to reflect the anchor effectively. Ads, radio jingles, 20 second spots, social media, etc. etc. – make sure you rock each one.
III) Executing the anchor – You want to make sure that the anchor is presented effectively at the point of sale. Website, shelf space, Amazon, sales staff, in-store, on mobile, in-air, in person, whatever and wherever. You need to have it reflected across platforms to maintain a consistent consumer journey. Plus it’ll be a huge headache to track multiple anchors across the country if you get feedback data with inconsistent metrics.
This is the end of the article. You did it! You’ve absorbed most of this information subconsciously, so ease up and chill if you didn’t quite remember everything that was covered. Take care!
*Disclaimer* I love Snapchat, despite having only 5 or 10 friends using it. I get to stalk em whenever they update their profiles, and they get to share their most [intimate – icwhatudidthere] thoughts and e-motions. Kinda like Facebook – but cooler – as people would think.
Motivation for new users
Observational Findings – As someone in his mid-twenties, not Snapchat’s core demo, I started using it cuz I’m a marketer. A damn good one, to say the least. And as all good marketers, I instantly rubbished it. I.e. until I heard about the $3B valuation. That’s when I started using it religiously, and chatted back n forth with a French buddy of mine who’s also a marketer. I instantly found more and more of my other mid-twenty friends joining- in and using Snapchat to tell stories of their most perfect-est starbux-acinnos, and OMGing over IMGs of their P.ETs.
The initial curiosity or draw was that it was a novelty that everyone was talking about. They wondered what they would do with $3B dollars and post their trip to fantasy-land, they thought about installing the app once – just to see what it was all about.
For tween-agers, its a whole ‘nother story. Their eco-system has snapchat ingrained in it. Their friends from high-school are bulk sending secrets to one another, and their parents are using it to ask em what they’d like for dinner. It’s new, it’s fresh, – then there’s always the element of the surprise dick pic. The issue that got a lot of bad press (good press?) last year.
Instant draw – Curiosity fuelled by mass – media, with a hint of F.O.M.O. and connection.
Research – I love the fact that mass-marketing influences downloads, purchases, and buy-ins to a large extent. The juicier the story, the more WoM, the greater the impact on your conversions. Case in point, two major media stories –
1. Snap chat Dic* Picks – This was brilliant. Tweens everywhere – attracted by the mere premise of their friends sharing inappropriate images with one another. “If there’s an outlet to defy authority, kids will gravitate towards it.” I theorize, that Omegle and Chatroullete as well – had a similar underlying usage behaviour behind it.
2. Manic valuation – Not a lot of buzz was going around companies that were valued at that price point, and the buzz spread worldwide. Media outlets across the globe were sharing the news about the application that made no money and only targeted kids. Buzz translated into downloads.
Motivation for initial usage
Research – There are a few components to this madness, and they are as follows –
1. Scarcity – You could listen to Cialdini, Ariely, or even Chris Nodder (his lynda .com course here) and they’d tell you the importance of scarcity in driving behaviour. The scarcity factor associated with the the short life-span of these snap images sparks a host of neural pathways in the brain. You tend to value these images a lot more on Snapchat (10seconds) than Facebook (forever). These images are now as valuable as a gourmet meal, made more valuable by applying filters, tags, and cute n cudely doodles.
I love this snippet about Cialidini’s remarks on Scarcity –
“Basically what the researchers said was, ‘If you insulate your home fully, you’ll save 50 cents every day.’ That was for half of the homeowners.” Cialdini says. “With the other half, homeowners were told, ‘If you fail to insulate your home fully, you’ll lose 50 cents every day. In the end, 150 percent more people insulated under loss language than gain language. It was the same 50 cents, but people are more mobilized into action by the idea of losing something.”
It kinda makes me think about Gold, and how much we value this scarce commodity. Meanwhile, we can’t cook it or drink it or even make a house out of it. It’s *intrinsic value* is supposed to make it valuable. Sounds like another DeBeer’s diamond wedding rings marketing ploy to me. [Moving on]
2. Connectivity/Intimate Bonding– I get a glimpse into the lives of my friends in a more appealing format than text. An IMG with you playing with your kitty cat, is a better response to “What’s Up” than “Not Much”. Of course, the rules of the game don’t change here. The more your friend offers to you in terms of entertainment, humour, excitement, beauty, etc. – the more you would reciprocate and the longer you spend time on social media apps.
You can quote me on this.. “Users don’t spend time on Facebook because Facebook is boring, its because their friends are boring. ” Facebook knows this and is desperately trying to get more info about you, to deliver content that is relevant to you, makes you smile, or is important to your demographic in general.
3. Defying Social Norms – I can appreciate your activity for a longer duration of time than is socially permissible in a face-to-face interaction. Our brains can process images within microseconds of seeing it, but the joy in taking your time to truly get a dopamine dump for 10 seconds is exciting enough for anyone to get addicted to.
4. Interaction Design – Snapchat has some of the best interaction design elements involved in it. Swipe right to chat, slide to switch cameras, push down to refresh, and press-n-hold to view. These elements have made it simpler to use the app v/s having buttons or complex menus to browse through. Its quick and its young.