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© 2014. All Rights Reserved. Emotions Matter! Part 1

Keynote: "Cracking the Code of Human Behavior"

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Page 1: Keynote: "Cracking the Code of Human Behavior"

© 2014. All Rights Reserved.

Emotions Matter!

Part 1

Page 2: Keynote: "Cracking the Code of Human Behavior"

© 2014. All Rights Reserved.

Fear = Freezing

Page 3: Keynote: "Cracking the Code of Human Behavior"

© 2013. All Rights Reserved.

Moving Beyond Won’t or Can’t Say

3

95% of mental activity is

subconscious.

What % of mental activity is

subconscious?

Thoughts &

Self-reported

Feelings

Intuitive

Emotions

Page 4: Keynote: "Cracking the Code of Human Behavior"

© 2013. All Rights Reserved.

SENSE – FEEL – think- DO

4 ©Sensory Logic 2012

Page 5: Keynote: "Cracking the Code of Human Behavior"

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Brain Exchange: 10x Ratio

5

Emotional

Rational (10%)

Page 6: Keynote: "Cracking the Code of Human Behavior"

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Testing Issues

71% 44% 0

10

20

30

40

50

60

70

80

Not Pre-tested Pre-tested

Effectiveness Success Rate %

“Cases with favorable pre-testing results

did significantly worse in market than those that were not tested.”

Binet and Field,

Marketing in the Era of Accountability, 2007

Page 7: Keynote: "Cracking the Code of Human Behavior"

© 2013. All Rights Reserved.

The Future of Marketing

7

Information

Talking Points

On-Message On-Emotion

Feeling Points

Satisfaction

20th

Century

21st Century

Page 8: Keynote: "Cracking the Code of Human Behavior"

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Step Closer… Step Ahead.

sensory emotive

non-verbal

conscious

verbal

rational

subconscious

rational

verbal

conscious

Traditional Economics Behavioral Economics vs.

Page 9: Keynote: "Cracking the Code of Human Behavior"

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QUANTIFYING EMOTIONS:

FACIAL CODING

Part 2

Page 10: Keynote: "Cracking the Code of Human Behavior"

© 2014. All Rights Reserved.

Mona Lisa

10

Page 11: Keynote: "Cracking the Code of Human Behavior"

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Mona Lisa

11

Page 12: Keynote: "Cracking the Code of Human Behavior"

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“Lie to Me”

Page 13: Keynote: "Cracking the Code of Human Behavior"

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History of Facial Coding

1872

• Scientific Theory: Charles Darwin

– Universal

– Spontaneous

– Abundant

• Theory Refined: Paul Ekman, Ph.D.

– 43 facial muscles,

express universal core

emotions

• Business Inventor:

Dan Hill, Ph.D.

– Pioneer in using facial

coding to create

emotional metrics

– U.S. Patent Portfolio Science Psychology Business

1965 1998

Page 14: Keynote: "Cracking the Code of Human Behavior"

© 2013. All Rights Reserved.

History of Facial Coding

2005

2009-2011

Which tool will have the most transformative

impact on MR?

“The reviewers felt that neuroscience suggests

that neurological methods (fMRI)and facial

coding are best suited to assess the emotional

valence of viewer reactions”

- The ARF NeuroStandards

Collaboration Project

2011

2010

Page 15: Keynote: "Cracking the Code of Human Behavior"

© 2013. All Rights Reserved.

Sales Correlation to Super Bowl TV Spots

Electroencephalography (EEG)

Facial Coding

USA Today .0003

EEG .232

Facial Coding .6112

Seventeen automotive TV spots were

analyzed over the past 3 years.

Rating

Page 16: Keynote: "Cracking the Code of Human Behavior"

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FROM FLEETING TO ENDURING:

PERSONALITY

Part 3

Page 17: Keynote: "Cracking the Code of Human Behavior"

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The Problem

In general, “evidence indicates

that demographic measures,

outside of education, are not an

accurate predictor of consumer

behavior.”

Sales/Marketing Management (11/09)

Only 15% of major companies surveyed derive real value from

creating segmentation typology.

(Marakon 2006)

Only 6% of marketers have

excellent knowledge of customers, 51% have fair to little

knowledge.

(CMO Council 2008)

Page 18: Keynote: "Cracking the Code of Human Behavior"

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Solution: Big 5 Traits Model

“Surprisingly, most marketers have

no idea how well the Big 5 can

predict consumer behavior. The Big 5 predict attitudes, values, self-

concepts, and motivations.”

Page 19: Keynote: "Cracking the Code of Human Behavior"

© 2014. All Rights Reserved.

Myers-Briggs Inadequate

19

Page 20: Keynote: "Cracking the Code of Human Behavior"

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The Elements

20

“The fifth element is mud.”

-Napoleon Bonaparte

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Male Version: Big 5 Examples

Openness Conscientiousness Extraversion

Agreeableness Neuroticism

Page 22: Keynote: "Cracking the Code of Human Behavior"

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Female Version: Big 5 Examples

Openness Conscientiousness Extraversion

Agreeableness Neuroticism

Page 23: Keynote: "Cracking the Code of Human Behavior"

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Traits by State

• States that vote Democratic tend to be higher on openness and extraversion, vs. conscientiousness for Republicans

Neuroticism Openness

Extraversion

Source: Gosling, Snoop: What Your Stuff Says About You

Page 24: Keynote: "Cracking the Code of Human Behavior"

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White vs. Wheat Bread

Page 25: Keynote: "Cracking the Code of Human Behavior"

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White Bread Supporters

0%

0%

13%

0%

0%

7%

23%

21%

29%

7%

0% 50% 100%

True Smile

Robust Smile

Weak Smile

Micro Smile

Surprise

Skeptical

Dislike

Sadness

Frustration

Anxiety

Emotional Profile

13%

87%

1 – White Bread Traditionalists 2 – White Bread Neutralists 0%

4%

15%

0%

1%

4%

39%

5%

27%

6%

0% 50% 100%

True Smile

Robust Smile

Weak Smile

Micro Smile

Surprise

Skeptical

Dislike

Sadness

Frustration

Anxiety

Emotional Profile

20%

80%

Traditionalists exhibit 2x more sadness than any of the other three segments. Meanwhile, the Neutralists are notable for showing 1/3rd more dislike than any other segment.

Page 26: Keynote: "Cracking the Code of Human Behavior"

© 2014. All Rights Reserved.

Whole Wheat Supporters

0%

6%

0%

0%

6%

12%

10%

0%

55%

12%

0% 50% 100%

True Smile

Robust Smile

Weak Smile

Micro Smile

Surprise

Skeptical

Dislike

Sadness

Frustration

Anxiety

Emotional Profile3 – Healthy Whole Wheaters 4 – Sophisticated Whole Wheaters

12%

88%

0%

36%

9%

0%

0%

0%

21%

9%

18%

6%

0% 50% 100%

True Smile

Robust Smile

Weak Smile

Micro Smile

Surprise

Skeptical

Dislike

Sadness

Frustration

Anxiety

Emotional Profile

45%

55%

The Healthy Whole Wheaters are most notable for having 2x more frustration than any other segment. Sophisticated Whole Wheaters, in contrast, are all about enjoyment.

Page 27: Keynote: "Cracking the Code of Human Behavior"

© 2014. All Rights Reserved.

SUMMARY

Part 4

Page 28: Keynote: "Cracking the Code of Human Behavior"

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Facial Coding: Big Micro Data

• Walmart’s transaction

databases – 2.5

petrabytes

• 40 billion Facebook

photos

• Amount of digital

information increases 10x

every 5 years

28

• Walmart’s transaction

databases – 2.5

petrabytes

• 40 billion Facebook

photos

• Amount of digital

information increases 10x

every 5 years

Page 29: Keynote: "Cracking the Code of Human Behavior"

© 2014. All Rights Reserved.

And Then You and the Client Can Be (Really) Smiling

True Fake Fake Fake True

Fake True Fake True Fake

Fake Fake True True True

Page 30: Keynote: "Cracking the Code of Human Behavior"

© 2013. All Rights Reserved.

Go Deeper Than Online Behavior or Social Media Chatter

30

Emotions

Personality

Traits Values

Immediate

Lifetime

Page 31: Keynote: "Cracking the Code of Human Behavior"

© 2014. All Rights Reserved.