Katharina Kuehn, RDG Insights

RDG Insights Pty Ltd | Member of NMSBA

Katharina Kuehn Consumer Neuroscientist Director & Co-Founder RDG Insights

Brain Powered Online Interactions

Online Retailer Melbourne 2016

RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 2


Have your ever wondered ….

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…when you visit a retail experience why it just doesn’t feel its you?

Why your ideal customers are ignoring your

messages, products and online shop?

…why between 95%-98% of visitors

don’t convert into shoppers?


We are distracted

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RDG Australian Retail Consumer Study 2012 RDG Australian Retail Consumer Study 2012 RDG Insights Pty Ltd | Member of NMSBA Page. 5 5

The pace of life is accelerating

The limbic system likes or dislikes a

webpage within first

50ms of exposure


Environment

Our senses take in about 11 million bits of information

every second

What have neurosciences discovered about how we make decisions?

Timeline

Mood Emo/ons

Seman/c Memory

Behaviour

Working Memory

Non-‐declara/ve Memory

Subconscious: 95% Conscious: 5%

Self Concept

Episodic Memory

cognitive system

limbic system

40 bits

200 times faster

approach / avoidance

engagement purchase decision


Emotion vs. Reason

6 : 1


OPINION

Emotional brand connection becomes critical

CERTAINTY

EXP IMP

STATEMENT 1 69 999

STATEMENT 2 69 500

STATEMENT 3 69 001

explicit rational OPINION (SYSTEM 2 measure)

Percentage of people declaring that the given statement describes the brand well.

0% to 100% Percentage of people who AGREE with the given statement.

DECLARED „YES”

LOW CERTAINTY - slow reaction time - respondents are uncertain of the declared attitude. MODERATE CERTAINTY – average reaction time - respondents have no clear, established attitude. HIGH CERTAINTY - fast reaction time - respondents are certain of the declared attitude.

n/a Insufficient number of observations to calculate the indicator.

implicit emotional CERTAINTY (SYSTEM 1 measure) Unique indicator (range: 0-1000) which measures the certainty of the declarations on the basis of time needed to give an answer.

The faster the reaction, the more solid is the attitude.

CERTAINTY strength & accessibility of attitudes

RT Reaction Times


“For me”

Reaction times can reveal true beliefs and motivations

“Would recommend” “Brand is on its way up”

Implicit / emotional

Explicit / rational


61 years 61 years male male

Income > $1 Million

Income > $1 Million

Charles, Prince of Wales Ozzy, Prince of Darkness

Demographic segmentation?


The “Big 3“ Emotion Systems

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Power, status,

dominance

Dominance e=mc2

Discovery variety, learning

Stimulance

Haeusel, 2000, Haeusel, Limbic Science 2001, Becker, J. B. et al., 2002; Brown, R. E. 1994; Schulkin, J. 1999; McEwen

Balance

Security, risk avoidance,

stability


Dem

ogra

phy

Per

sona

lity

Em

otio

nal

core

val

ues

Disciplined Performer Adventurer Hedonist Open Minded Harmoniser Traditionalist

There are 7 Limbic® Types

Performance Determination Success Efficiency Ambition

Discipline Rationality Reason Diligence Precision

Tradition Safety Reliability Order Conservatism

Harmony Family Home Trust Care

Well-Being Pleasure Fantasy Openness Sensuality

Curiosity Spontaneity Variety Fun Creativity

Thirst for adventure Rebellion Autonomy Impulsiveness

Success –oriented Competitive Status conscious Opinion leader

Concentration on quality and functionality Love for justice and authenticity Classic style

Risk conscious and security oriented Very brand loyal and attached to local retailers

Socially-oriented Family minded creature of habit Lovers of nature attached to their hometown

Life-affirming optimist Savoring and imaginative Easy-going

Happy to try out new things Early-adopter Consumption-oriented

Loves challenges Attracted to risk and adventure Unconventional thinker

5% Highest socio-economic status

13% High socio-economic status

14% Medium/Lower socio-economic status

34% Medium socio-economic status



5% Higher socio-economic status

RDG Insights Pty Ltd


Diffusion of innovations (Rogers Bell Curve)

2.5% 13.5% 34% 34% 16%

Mass market Tipping point


Source: Campaign designed by Science Rockstars

Emotional personalisation becomes critical

Followers of the herd, Searching for social proof

Status, Attracted to scarcity


Impact of the design experience

Experien(al, Individualis(c &

crea/ve

Sensual, emo(onal & inspira/onal

Natural, warm & trustworthy

Tradi(onal, straigh=orward

Clear, simple, organised

Purist, exclusive, strong

Avant-‐garde, innova(ve & unique

Extravagant, bold bizarre


Limbic experience design

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Q: Which design appeals most to you? (Figures are Index)

150

194

105 107

60

125

90

60

70

80

90

100

110

120

130

140

150

160

170

180

190

200

Adventurer Performer Disciplined Traditionalist Harmoniser Open-minded Hedonist


Limbic experience design

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Q: Which design appeals most to you? (Figures are Index)

90

56

85

68

96

130 126

50

60

70

80

90

100

110

120

130

140

150

Adventurer Performer Disciplined Traditionalist Harmoniser Open-minded Hedonist


Case Study Book Retailing Core customer profiles Ideal strategic brand positioning

ONLINE SALES UP BY 28%

INCREASED SALES IN ALL

CHANNELS

Connecting emotionally with customers


5 tips for instant results

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The principle of framing


Authority


Social proof

Where would you rather eat?


Scarcity

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Loss aversion

“…or you can keep losing customers every day”

“You can implement

these tips to your site“


Summary

1

Use emotions to create action …don’t rely on

words, facts and features

2

Ozzie and Charles don’t

belong into one bucket

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Know which emotional drivers

you need to address


www.rdginsights.com.au Member of Neuromarketing Science and Business Association Member of Ebeltoft Group – International Retail Experts

RDG Insights Pty Ltd Phone | +61 (0)2 9460 3889 [email protected] Let’s keep in touch: Linked in http://www.linkedin.com/in/katharina-kuehn-07190a34?trk=nav_responsive_tab_profile Twitter https://twitter.com/RDG_Insights

Know your customers better than they know themselves.

Thank you very much for your attention.

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Katharina Kuehn, RDG Insights