Two children & the Psychology behind growing your Business & Customer Value SUBTITLE BELOW
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1 Two children & the Psychology behind growing your Business & Customer Value SUBTITLE BELOW
2 Illusion of intelligence: 33%Jumping to conclusions
3 We are a dual processing brain Unconsciousness + Consciousness
4 Unconsciousness
5 1) Your unconsciousness is always on
6 1) Your unconsciousness is always on
7 2) System 1 is associative A B For every goal an extra savings account For every goal a separate piggy bank Winner
8 3) System 1 is WYSIATI A B Winner
9 Your Customer / Citizen System 1 (always on) 1. is always on 2. is associative 3. is WYSIATI System 1
10 Consciousness
11 1) System 2 has very limited capacity Je sais! Les calculs À larapide! fin de sont ceun test, travail difficile. Mais Je pose Pensez c'estune presque àquestion. un fini. Ne COULEUR réfléchis-y Répondez-y Allez, ET UN encore immédiatement! OUTIL! un... Combien est: 2
12 1) System 2 has very limited capacity
13 2) System 2 requires attention A B Winner
14 3) System 2 Post-Decision Rationalizes A B Winner
15 Your Customer / Citizen System 1 (always on) 1. is always on 2. is associative 3. is WYSIATI System 1 System 2 (lazy controller) 1. Limited capacity 2. Requires attention 3. Rationalizes
16
17 You & your Customer You & your customers are not aware of all unconscious decision processes
18 That is why you have to experiment & validate
19 Validation in every (part of your) Organization
20 The Validation Equation
21 The Validation Equation Quantity x Value x Quality Growth rate = Investment (# of validations) ( per winner) (% of winers)
22 The Validation Equation Quantity x Value x Quality Growth rate = Investment (# of validations) ( per winner) (% of winers)
23 What s the goal of your company? A B 1) OEC Over CRO
24 ion t a u l a v E Overall ) C E O ( n o Criteri Growth rate = Quantity x Value x Quality (# of validations) ( per winner) Investment (% of winers)
25 ion t a u l a v E Overall ) C E O ( n o Criteri Growth rate = Quantity x Value x Quality (# of validations) ( per winner) Investment (% of winers)
26 Velocity to the max! s t n s e e n m i i er rm s p t e t x n e e e d y 00 rim t i 0 e. c p 2 o l x ay > e e h d t V 0 r w 0 e o p gr > 2.0 ive now l
27 But there s a statistical maximum What s your potential velocity? Rough estimate:
28 Validation is about Velocity! test velocity Minimize regret: Miss as few experiments as possible
29 ion t a u l a v E Overall ) C E O ( n o Criteri Regret preventio n Quantity x Value x Quality Growth rate = Investment (# of validations) ( per winner) (% of winers)
30 ion t a u l a v E Overall ) C E O ( n o Criteri Regret preventio n Quantity x Value x Quality Growth rate = Investment (# of validations) ( per winner) (% of winers)
31 Prioritize the next most valuable test Prioritize on business value: Conversions x uro x average % uplift x Power
32 ion t a u l a v E Overall ) C E O ( n o Criteri Loss preventio n Prioritiz ation Quantity x Value x Quality Growth rate = Investment (# of validations) ( per winner) (% of winers)
33 ion t a u l a v E Overall ) C E O ( n o Criteri Loss preventio n Prioritiz ation Quantity x Value x Quality Growth rate = Investment (# of validations) ( per winner) (% of winers)
34 Validations are revealing an inconvenient truth A B
35 Validations are revealing an inconvenient truth A B A B
36 Part of your organization is ineffective
37 Part of your organization is ineffective Validate & prioritize planned investments first
38 Optimization is about minimizing investments! test velocity
39 Optimization is about minimizing investments! Valu e pe r ho es ur s pen d valid of s t s atin rc u o s re Co g Value per validation Resources per validation Think less, talk less, Validate more!
40 ion t a u l a v E Overall ) C E O ( n o Criteri Loss preventio n Prioritiz ation Quantity x Value x Quality Growth rate = Investment (# of validations) ( per winner) Minim ize hours/ experi men t (% of winers)
41 ion t a u l a v E Overall ) C E O ( n o Criteri Loss preventio n Prioritiz ation Quantity x Value x Quality Growth rate = Investment (# of validations) ( per winner) Minim ize hours/ experi men t (% of winers)
42 System 1 (always on) System 1 System 2 (lazy controller)
43 The Matrix of PersuasionTM System 2 System 1 (lazy controller) (always on)
44 The Matrix of PersuasionTM Active System 2 System 1 Desired System 2 Ability & Motivation System 1
45 System 2 A System 2 B Winner
46 System 2 A System 2 B Winner
47 The Matrix of PersuasionTM Active System 2 System 1 Desired System 2 System 1 Ability & Motivation Heuristics & Habits
48 System 2 A System 2 B System 1 A System 1 B Loser Winner
49 System 2 A System 2 B Winner System 1 A System 1 B Loser
50 The Matrix of PersuasionTM Active System 2 Ability & Motivation System 1 Desired System 2 Distraction & Overload System 1 Heuristics & Habits
51 Consciousness > Unconsciousness A B Winner
52 Consciousness > Unconsciousness
53 The Matrix of PersuasionTM Active System 2 System 1 Ability & Motivation Trigger & Forced Choices System 1 Desired System 2 Distraction & Overload Heuristics & Habits
54 Unconsciousness -> Consciousness Be aware! Borrowing money, costs money
55 The Matrix of PersuasionTM Active System 2 Ability, Motivation System 1 Desired System 2 Distraction, Overload System 1 Alerts, Triggers, Forced Choices Heuristics, Habits Emotional experience
56 ion t a u l a v E Overall ) C E O ( n o Criteri Loss preventio n PRI O Quantity x Value x Quality Growth rate = Investment (# of validations) ( per winner) (% of winers) Apply Psycholo gy
57 System 1 System 2 Earn & Learn
58 Is Customer Interest incorporated in your OEC? A B You have big data, and a big responsibility! Uplift sexual harrassments?
59 Is Customer Interest incorporated in your OEC?
60 Is Customer Interest incorporated in your OEC? Health: Time less ill, feel more fit Wealth: Engagement / #visits Both count! assure pension, education Happiness: Quality time, adventures Money Conversions/AOV Opinions # votes / shares
61 VALIDATION THANK YOU! Biggest Psychological Experiment ever Alsoinin every the Customers ORGANIZATION Interest Experimentation & Validation to the next level? CONTACT US: or SUBTITLE BELOW
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