DMA14 Thought Leadership Series: "The Last Mile"
0 likes656 views
The document discusses how to leverage decision science to encourage customer engagement and behavior change through effective marketing strategies. It emphasizes the importance of understanding user behavior, utilizing incentives, and implementing tailored nudges to enhance customer retention and satisfaction. By adopting these approaches, companies can increase revenue and improve product adoption rates.
DMA14 Thought Leadership Series: "The Last Mile"
- 1. The Last Mile: Leveraging Decision Scienceto Get Your Most Important Audiences to Act.
- 2. We All Make Decisions…
- 3. We All Make Decisions… …in Ways We’re Not Aware of.
- 4. Decisions WeAll Make, All The Time.
- 5. Neal BoornazianChief Client Officer Cramer Anne-Marie Farrell Head of Behavioral Economics Research, Global SMB Marketing, Google On Amir Associate Professor of Marketing, UC San Diego Candace Brenner Director, Global Brand MarketingSony Online Entertainment
- 8. The power of the context Framing vs. description Invariance Incentive framing and mental accounting Transaction utility to habit formation Forms of sociality
- 9. Framing and description invariance
- 11. Transaction utility to habit formation
- 13. IRRATIONAL LAB: the art and science of Marketing
- 15. Behavioral economicsproposes that the realreason people don’tadopt our products is...
- 16. Too much friction No immediate benefitsof doing an action We don’t think about the benefitsatthe right time People don’t know it’s a good thingfor them
- 17. Desired User Behavior Benefits Barriers
- 18. Overcoming initial fear… …setting up for long term success using smart incentives Incentives
- 20. Free coupons Spend X Get Y
- 21. Free coupons Spend X Get Y •Skin in the game •Product engagement •Free vs own investment
- 22. Qtr A - Y1 Qtr B - Y1 Qtr A - Y2 Qtr B - Y2 Increase in Average Revenue per Account Free coupons Spend x Get y Decrease in Activations Free coupons Spend x Get y
- 24. Desired User Behavior Benefits Barriers
- 25. Cell 1: $20 AdWords credit Cell 2: $50 AdWords credit
- 26. Cell 3: $20 Play credit Cell 4: 2 Movies
- 27. •No incentive •$20 AdWords credit •$50 AdWords credit •$20 Play credit •2 Movies
- 28. 0% 10% 20% 30% 40% 50% 60% $20 Play $50 AdWords 2 Movies $20 AdWords Results from Intuition Study
- 29. $20 Play $50 AdWords 2 Movies $20 AdWords No Incentive 3x control 4x control 4x adoption rate for $20 Play vs no incentive (control) 2.5x control 2x control
- 30. •Pick the right user behavior •Use incentives to help users engage with product •Think about different reward types •Hedonic rewards -for our pleasure (e.g. movies) •Utilitarian rewards -more functional (e.g. AdWords credit) •Smaller amount of a hedonic rewards out performed larger amount of the utilitarian rewards •Test –our intuitions are not always right
- 31. Sony Online Entertainment Candace Brenner Director, Global Brand Marketing
- 32. Company Overview
- 33. Managing the Player Lifecycle Overview: Institute a “nudge” program in-game to present uniquely tailored offers in response to players’ likelihood to: »Extend membership (prevent lapsing) »Convert to 1sttime payer »Repeat purchase conversion How: Score and predict future behavior of players to intervene at appropriate touch points to change and/or pivot customer behavior. The “Nudge System”
- 34. Sample Nudges New Membership Return Membership Consumables ADDITIONAL RESULTS: •Better understand different player segments (1stTime, Regular, Repeat, Dedicated). •Proactive retention is easier than winning them back! •Increase overall product satisfaction. Increased monthly incremental revenue by 5-8%
- 35. Make it EASY Overview: Serve a timely message based on what THAT customer is experiencing at THAT moment CHANGE consumer behavior –Habit Formation How: Identify key moments in time that customers experience, specific to that moment, and offer them convenience with a lower barrier to entry (lower price points, more frequently). “Point of Need”
- 37. Examples: Upgrade and Revive Spell Upgrades Revive
- 38. Monthly Average Revenue Per User for Point of Need Customers Monthly ARPU Before PoN Use After PoN Use Daily purchase rate increased from 8% to 13% # of purchases increased from 3 to 4 for active purchasers
- 39. Custom Communications Most Loyal Cohort Unprompted, No-Strings- Attached Reward for Loyalty and Ongoing Engagement Personalized Communication Valuable Gift
- 40. Email Performance 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% Open Rates Top Performers SOE Benchmark IndustryBenchmark Top Performers also have 50% CTR’s!
- 41. The Last Mile: Leveraging Decision Scienceto Get Your Most Important Audiences to Act.