BULA!

1. BULA! Get Inside Your Customer’s Mind Pamela HollowayAbout People Dallas BMAMay 22, 2003

2. Eliciting Knowledge From Experts 1. How they came to conclusions and made decisions 2. The triggers that led them from one piece of the puzzle to another 3. How they filtered, sorted and stored information in their brain.

3. Both KM and MarketingConnect to Conscious & Subconscious Knowledge Management • conscious - step-by-step process, logic, rationalization, the specific “how to” • subconscious - “gut feel,” instinct, unconscious competence Marketing • conscious - facts, figures, and features • subconscious - pictures, metaphors and psychological language patterns

4. All About the Brain • More was learned about the brain and mind in the 90s than during the entire previous history of psychology and neuroscience. • The 2002 Nobel Prize for Economics went to a Princeton Psychology Professor. • Detroit’s big 3 auto makers use psychologists and hypnotherapists to run their marketing focus groups.

5. Marketing Lags Behind “ Everything else has been reinvented – distribution, new product development, the supply chain. But marketing is stuck in the past. What we need is a deeper and better understanding of customers” - Eliot Ettenberg, The Economist, May 2001

6. Marketing Lags Behind • We continue to rely on ineffective research techniques and consequently misread customer’s actions and thoughts. (Zaltman) • We communicate in a language that doesn’t engage the hearts and minds of our target audience. Our messages are deleted or worse - pigeon-holed into a less than favorable slot in memory.

7. 6 Key Psychological Learnings 1. 95% of customer’s thinking occurs in their unconscious.

8. Appealing to the Subconscious 1. Using pictures, metaphors and psychological language patterns to: - connect (subconsciously) to your target audience - get through their mental filtering system - ensure your message is stored in memory and automatically accessible.

9. Appealing to the Subconscious 2. Structuring focus groups and customer surveys to get at unconscious values, beliefs and preferences.

10. Focus Groups & Surveys Problem: We use fixed-response questions that address at a surface level what customers want. Solution: 1. Ask questions that get to the subconscious. 2. Use methods such as relaxation therapy to help tap into the subconscious. 3. Use response latency to trap immediate, automatic responses.

11. Focus Groups & Surveys Problem: We use fixed-response questions that address at a surface level what customers want. Solution: 1. Ask questions that get to the subconscious. 2. Use methods such as relaxation therapy to help tap into the subconscious. 3. Use response latency to trap immediate, automatic responses.

12. 6 Key Psychological Learnings 1. 95% of customer’s thinking occurs in their unconscious. 2. It’s not rational versus emotional, it’s rational and emotional.

13. Connecting Emotionally • Connecting with the customer’s values and beliefs – his or her view of themselves and the world around them. • People pay attention to the things that reinforce and enhance their views of the world and they filter out things which don’t enhance or fit their view.

16. 6 Key Psychological Learnings (From Robert Cialdini) 3. Consistency - Once we have made a choice or taken a stand, we will do whatever it takes to remain consistent with that commitment.

17. Capitalizing on Consistency • Since you’ve already shown you’re interested in xyz ……. you’ll want to…… • The obvious next step is……. • Now that you’ve taken this important step...

18. 6 Key Psychological Learnings (From Robert Cialdini) 3. Consistency - Once we have made a choice or taken a stand, we will do whatever it takes to remain consistent with that commitment. 4. Reciprocity - Our near obsessive desire to return a favor with one of equal value.

19. 6 Key Psychological Learnings (From Robert Cialdini) 3. Consistency - Once we have made a choice or taken a stand, we will do whatever it takes to remain consistent with that commitment. 4. Reciprocity - Our near obsessive desire to return a favor with one of equal value. 5. Social Proof - We decide what to do by looking at what other people do.

20. Capitalizing on Social Proof • Other people like you purchased XYZ. • XYZ is the fastest growing, largest selling... • Switch and save. 1.2 million Texans can’t be wrong. You don’t have to convince people the product is good, you need only show them that other people think so.

21. 6 Key Psychological Learnings (From Robert Cialdini) 3. Consistency - Once we have made a choice or taken a stand, we will do whatever it takes to remain consistent with that commitment. 4. Reciprocity - Our near obsessive desire to return a favor with one of equal value. 5. Social Proof - We decide what to do by looking at what other people do. 6. Authority - A deep-seated sense of duty to do what an authority tells us to do.

23. Thank You! pam@aboutpeople.com

24. Right Brain, Left Brain "The two-brain myth was founded on an erroneous premise: that since each hemisphere was specialized, each must function as an independent brain. In fact, just the opposite is true. It is the integration of these regions that gives rise to behavior and mental processes greater than and different from each region's contribution. Thus, since the central premise is wrong, so are all the inferences derived from it" - Right Brain, Left Brain: Fact and Fiction, Psychology Today, May 1985

25. 6 Key Psychological Learnings 1. 95% of customer’s thinking occurs in their unconscious. 2. It’s not rational versus emotional, it’s rational and emotional. 3. Advertising and marketing are a lot like alcohol. The more you have the less you remember.

26. We remember things that... 1. Have personal significance. 2. Are consistent with our map of the world (our beliefs and criteria). 3. Are tagged with an emotion. 4. Have important consequences. 5. Trigger other important associations in memory.