Increasing Market Traction

Understanding Your User

• CEO & Lead Strategist, Hunter & Bard• Award Winning Marketing & Branding

Agency• Previously Professor of Marketing

for Startups at Tel Aviv/ Jaffa Academic College

• Mentor at: 500 Startups,• Founding Mentor at: Google Campus

TLV, Microsoft Ventures Accelerator TLV

• MBA, Kellogg School of Management

Shira Abel

I’m writing a book!Signup to be notified here:http://www.shiraabel.com/book

https://hunterandbard.com/saas-insider/

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SAAS INSIDER https://hunterandbard.com/saas-insider/

“A true unfair advantage is something that cannot

be easily copied or bought.”

Agenda

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Traction - Why I'm Focusing on Behavior

Why It Works

Action Triggers

It Works Even When We Know

Form Follows Function

Small Things Matter

Real Life Examples

TRACTION

You might have traction now, you probably don’t. Here’s how you understand your customer so you can build it.

STRATEGY COMES FIRST

A Quick Point

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Numbers – in General§Right now you probably don’t have enough traffic on

your site to test much§Product Market Fit = 40% of your customers would be

devastated if your product disappeared tomorrow §Watch your churn rate (keep it below 2% if you’re

SaaS – preferably negative churn)§ 10% MoM growth is what’s expected in most

accelerators in Silicon Valley (depending on product)

WHY IT WORKS

THE BASICS – the chemicals in our body are biologically programmed to react to certain things in a specific way

Endorphins§ Runners high§ Masks physical pain§ The root of endurance§ The reason laughing feels good§ Games

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Dopamine§ The good feeling of progress and

accomplishment § Crossing things off lists§ Need to be able to see your goal

(e.g. Corporate Vision)§ The reason why we become “hooked” on notifications from

our phone§ Triggered through variable unexpected rewards§ Highly addictive

Serotonin§Leadership, pride, status§Branding§Leader boards§Social proof§Raises confidence of the winner and the supporters§ “Mefargen”ß hebrew word§Trust + security = confidence = innovation §Corporate Culture

Oxytocin§Love, friendship, mommy-hood§Hugging, shaking hands – the touch matters§Giving time & energy to help for free (money doesn’t

count – more on that later)§Witnessing acts of human generosity releases

oxytocin §Brand – Corporate Social Responsibility

Norepinephrine §Fight or flight response§Mobilize brain and body for action§Helps us be alert / at attention§ Increases blood being pumped

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Cortisol§Stress hormone§ Impairs cognitive performance§Toxic situations destroy our ability to create§Paranoid (layoffs does this)§High stress environments§ Inhibits Oxytocin

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ACTION TRIGGERS

You can’t force anyone to do something they don’t want to, but if they do want to – this will help you get them there

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T-Shirt Economy

§ Reputation based§ Incentives are about doing something for the love of it NOT

financial reward§ Easier to get someone to do something for free than for less

money (e.g. lawyers would rather do pro bono than get paid less per hour for the same work)

§ Changes the way we perceive the work we do§ When we already have our basic needs met, we’re more likely to

do something for our own joy§ This is where the evangelists should be – that’s why not paying

them is a good thing

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Financial Economy

§ People judge if something is “worth” their time§ Become less enthusiastic if the work is not paid

according to expectations§ Make sure incentives are aligned with goals§ Proven to be a bad way to build incentives to get

people to work harder§ Studies have shown that for cognitive work, a larger

reward results in worse results§ Loss aversion, however, brings better results

§ This will affect the affiliates the most

First Choice Brand Effect“…when the favorite brand

was included… the choice was made instantly… this…

occurs only for the respondent’s number one

brand…”*Decoded, by Phil Barden

“Simplicity changes behavior.”- B.J. Fogg

The Hook

Reward Status Achievement Self Expression Competition Altruism

Points • • • • •Levels • • •

Challenges • • • • • •Virtual Goods • • • • •Leaderboards • • • •

Gifting & Charity • • • •

• Points• Badges(Achievement Symbols)• Fixed Action Rewards• Leader\board• Progress bar• Quest Lists• Win Prize• High-Five• Crowning• Level Up Symphony• Aura Effect• Sep-by- Step Tutorial• Boss Fights

• Virtual Goods• Build from Scratch• Collection Set• Avatar• Earned Lunch• Learning Curve• Protection• Recruitment• Monitoring

• Appointment Dynamics• Fixed Intervals• Dangling• Prize Pacing• Options Pacing• Patient Feedback• Count Down• Throttles• Moats

• Narrative• Elitism• Humanity Hero• Higher Meaning

• Beginners Luck• Free Lunch• Destiny Child• Co Creator

• Milestone Unlock• Evergreen Mechanics• Real-Time Control• Chain Combos• Instant feedback• Boosters• Blank Fills• Voluntary Autonomy• Choice Perception

• Friending• Social Treasure/Gifting• SeeSaw Bump• Group Quest• Touting• Bragging• Water Cooler• Thank you Economy• Mentorship• Social Prod

• Glowing Choice• MiniQuests• Visual Storytelling• Easter Eggs• Random Rewards• Obvious Wonder• Rolling Rewards• Mischief• Sudden Effect• Oracle Effect

• Sunk-Cost Tragedy• Progress Loss• FOMO• Evanescence Opportunity

• Status Quo Sloth• Scarlet Letter• Visual Grave• Weep Tune

MEANING

ACCOMPLISHMENT EMPOWERMENT

UNPREDICTABILITY

AVOIDANCE

SCARCITY

OctalysisSOCIAL INFLUENCEOWNERSHIP

http://yukaichou.com/

Engagement Tools

FORM FOLLOWS FUNCTION

Building the marketing into the product. Think about what you want people to do, now reverse engineer it.

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Watch the Funnel

Acquisition – Learns About Product

Conversion – Signs Up

Buys

Retention – Uses Product

WOM (Sharing)

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Engineering Social Proof

Engineering Social ProofAsk for reviews inupdate notes

Engineering the Path to OKThe user must do a set of actions, before permission is requested.

Engineering the Path to OKUser-triggered requests showed the highest conversion rates

Engineering the Path to OKMarking optional fields only encourages ‘voluntary over-disclosure’

THESE WORK EVEN WHEN WE KNOW

Even when we know we’re being manipulated, we’re susceptible to certain things.

Priming

DOUBLED VIEWS & REVENUE

Before After

Reciprocity

Anchoring

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FramingHow you say and do things matters

Loss Aversion

Inclusion – e.g. Easter Egg

Achievement

Ask for a small sign in the window, first

Foot in the Door

Mere ExposureEar worms work

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Social Identity TheoryUs vs. Them

https://kiralynblue.files.wordpress.com/ 2014/02/thinking--conf--bias.png

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Confirmation Bias

Don’t make me think

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Analysis Paralysis

SMALL THINGS MATTER

Get down to the details

How You Say Things MattersResearchers found that placing the following statement at the end of an ad… caused their trust scores to jump as much as 33 percent!’“You can trust us to do the job for you.”

Emotions Vs. Logic§When numbers are even, e.g. $100 –

we rely on our feelings§When numbers are exact, e.g. $17.86

we rely on our logic§ It affects negotiation as well…

§Fear – Insurance§Guilt – Mother’s Day§Trust – Financial

institutions§Value – Matching prices§Belonging – Part of our

community

§Competition – Doing better than the Jones’s

§ Instant Gratification – I want it now

§Leadership – Early adopter & evangelist

§Trendsetting – What are the leaders doing?

§Time – Save time

Get Emotional@shiraabel

Point being – When is your customer using your product? What’s their cognitive level?

Cognitive Resources§ Behavior depends on time of day – we’re more likely to have no patience

at the end of the day, when we’re hungry or tired§ Place – if we’re being interrupted every 30 seconds, our cognitive

resources will be spent – decision making goes down§ How much we’ve had to concentrate – again, using up cognitive

resources

We can’t decipher truth from fiction when we’re cognitively spentOur mood can change simply by putting a pencil between our teeth and forcing ourselves to smile

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Do.

Do not.Try.

Your options according to Yoda

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Thank you!

All of the stock photos are taken fromhttps://stocksnap.iohttps://www.youtube.com/watch?v=ReRcHdeUG9Y http://stress.about.com/od/stresshealth/a/cortisol.htm THANK YOU’S: Dan-ya Shwartz Bar-El & Ze'ev Rosenstein https://www.psychologytoday.com/basics/dopaminehttp://uxmovement.com/forms/why-users-fill-out-less-if-you-mark-required-fields/http://dancounsell.com/articles/prompting-for-app-reviewshttp://agevik.se/post/72876032312/20-lessons-about-making-viral-apps-i-learned-the-hardhttp://contentmarketinginstitute.com/2011/09/web-content-conversions/http://www.slideshare.net/startuplessonslearned/eric-ries-the-lean-startup-google-tech-talkhttp://www.slideshare.net/gzicherm/nir-eyal-hookedatgsummit http://www.businessmodelgeneration.com/canvashttp://www.briansolis.com/2008/08/socialization-of-your-personal-brand_28/http://www.avc.com/a_vc/2004/03/its_a_small_wor.htmlhttp://www.quora.com/Udemy/How-did-Udemy-get-11-000-courses-online-so-quicklyhttp://www.amazon.com/Mountain-Three-Wolf-Short-Sleeve/ product-reviews/B002HJ377Ahttp://lifehacker.com/the-psychology-of-a-fanboy-why-you-keep-buying-the-sam-1300451596

http://www.amazon.com/BIC-Cristal-1-0mm-Black-MSLP16-Blk/ dp/B004F9QBE6http://www.youtube.com/watch?v=7QmCUDHpNzE http://www.youtube.com/watch?v=ZUG9qYTJMsIhttp://www.macadamia-apps.com/app-launch-7-mistakes-to-learn-from/http://flowingdata.com/2011/09/18/yoda-pie-chart/http://blog.bitly.com/post/9887686919/you-just-shared-a-link- how-long-will-people-payhttp://www.briansolis.com/2011/09/whats-the-r-o-i-a-framework- for-social-analytics/http://www.slideshare.net/setlinger/altimeter-social-analytics081011finalBreakthroughMarketingPlanshttp://www.seomoz.org/blog/tracking-the-roi-of-social-mediahttp://ideas.deloitte.ca/blog/2011/09/social-media-going- beyond-roi/http://www.jeffbullas.com/2011/09/20/the-10-key-mistakes- many-bloggers-and-writers-make/http://www.jeffbullas.com/2011/03/01/the-10-best-facebook- campaigns/http://www.facebook-studio.com/http://www.seomoz.org/blog/tracking-the-roi-of-social-mediahttp://marketingfortomorrow.com/tag/marketing-tone/http://www.theatlantic.com/business/archive/2015/01/the-psychological-difference-between-1200-and-1167/384993/

References & Reads