ANATOMY of SEDUCTION Neuromarketing successfully applied

three approaches to the brain

Paul Postma Marketing Consultancy

paul.postma@ppmc.nl

www.ppmc.nl/en

53rd ICCA Congress

Antalya, Turkey

November 3rd, 2014

“If I had asked people what they wanted,

they would have said faster horses.” Henry Ford

Marketing and Business Consultancy firms in The Netherlands:

source: Top 100 Emerce/Motivaction 2014

What is neuromarketing:

Knowledge of

how the brain works

applied to

commercial processes

1. Just a little bit about the brain

2. Three approaches to the brain and four

stages in the commercial process

3. Applications

4. Golden brain rules to take home

Customer

behaviour

Normal people buy the craziest things

1. Behaviour: you won’t believe your eyes

Rich people like bargains too

1. Behaviour: you won’t believe your eyes

People with a garden buy just as many garden

products as people without a garden

1. Behaviour: you won’t believe your eyes

Just try to drive a 100 year old car… DICHTBIJ INTERNE WERELD

… we shop with a

1.000.000 year old brain

1. Why do people act so stupidly?

Our old brain has more influence...

instinct

reflection

addiction

Functions Origin in evolution Type CLOSE TO INTERNAL WORLD

CLOSE TO EXTERNAL WORLD

hypothalamus

limbic

system

500 mln year

200 mln year

emotion

affection

action

1 mln year

cortex

language

reason

intellect

….. than the cortex likes to admit

1. Why do people act so stupidly

1. Just a little bit about the brain

Wat verleidt o What triggers seduction to buy

Seduction is part of the construction

of our brain

Predicting buying behaviour requires

knowledge of how the brain works

There are three methods to find out

1. Just a little bit about the brain

2. Three approaches to the brain and four

stages in the commercial process

3. Applications

4. Golden brain rules to take home

2. Three approaches to the brain

a. Look from the outside: external

b. Look from the inside: internal

c. Don’t look at all: black box

2a. External: body language, empathic design,

eye tracking, facial coding

2b. Internal: EEG en fMRI

2c. Black box: input predicts output -

no need to know why (accelerator/brake)

Would you mind if I stimulate your nucleus

accumbens?

2. And what do you see? Seduction is visible:

2. Four stages in the commercial process

a. Product development

b. Advertising, publicity

c. Transactions, orders

d. Customer Relationship Management

2. Three approaches and four stages Step in the

marketing process

Neuromarketing

approach

EXTERNAL

• Body language

• Empathic design

• Eye tracking

• Facial coding

Development

product/market

combination

Market approach

• Advertising

• Publicity

Market approach

• Transactions

• Orders

Customer

Relationship

Management

BLACK BOX

Input/output model

INTERNAL

• EEG

• fMRI

2. Which approach fits which stage

A Anatomy of Seduction seduction

Step in the

marketing process

Neuromarketing

approach

EXTERNAL

• Body language

• Empathic design

• Eye tracking

• Facial coding

Development

product/market

combination

Market approach

• Advertising

• Publicity

Market approach

• Transactions

• Orders

Customer

Relationship

Management

BLACK BOX

Input/output model

INTERNAL

• EEG

• fMRI

19

3735

51

31

40

33

28

68

64

60

29

26

42

23

31

9

€ -

€ 500,00

€ 1.000,00

€ 1.500,00

€ 2.000,00

€ 2.500,00

€ 3.000,00

€ 3.500,00

€ -

€ 10,00

€ 20,00

€ 30,00

€ 40,00

€ 50,00

€ 60,00

€ 70,00

€ 80,00

Verloop per dag

Budget

CPL Kind

# Coupons Kinderen

1. Just a little bit about the brain

2. Three brain approaches and four

stages of commercial processes

3. Applications

4. Golden brain rules to bring home.

3. External: human beings and animals

3. External: eye tracking to improve bill board

3. External: eye tracking to improve bill board

3. External: eye tracking for bill board: result

3. External: eye tracking for bill board (result)

=

= 104%

-21%

3. External: facial coding – advertising & publicity

centerforbodylanguage.com

3. Internal: how it works

Neurensics

3. Internal: which cover will sell best?

Neurensics

3. Internal: which cover will sell best?

Neurensics

3. Internal: results questionnaire

Neurensics

3. Input/output: eBay cuts cost lead with 50%

Input multi variables:

4 different banners

3 different texts

3 search categories

Output day 1: € 70 per lead

Output day 15: € 35 per lead

?

3. Input/output: eBay cuts cost per lead with 50%

19

3735

51

31

40

33

28

68

64

60

29

26

42

23

31

9

€ -

€ 500,00

€ 1.000,00

€ 1.500,00

€ 2.000,00

€ 2.500,00

€ 3.000,00

€ 3.500,00

€ -

€ 10,00

€ 20,00

€ 30,00

€ 40,00

€ 50,00

€ 60,00

€ 70,00

€ 80,00

Verloop per dag

Budget

CPL Kind

# Coupons Kinderen

eBay &

3. Input/output: offline effectivity for online shop

5229

102071

1398612190

22863

51222

14132

7295

1210

16307

22615

8463

€3,97

€5,22

€3,08

€0,30 €0,25 €0,25

€5,49

€12,59

€8,73

€0,68€0,25

€2,65

€-

€2,00

€4,00

€6,00

€8,00

€10,00

€12,00

€14,00

0

20000

40000

60000

80000

100000

120000

Syfy 13th SBS6 RTL8 RTL7 RTL4 E! TLCNL Veronica Net5 RTL5 24Kitchen

CPC TV adverts: Channel 13th highest # Campaign Visits at high CPC (€5,22). Channel RTL 4 has an attractive ratio between # CV’s en corresponding CPC.

3. Input/output: customer purchases at 4th visit

Customer Journey Model

Pre Buying Phase Buying Phase After Buying Phase

Vis

its

Start

Customer Journey Purchase Visit before stay Visit after stay

3. Applications: which approach per step

Anatomy of Seduction

Step in the

marketing process

Neuromarketing

approach

EXTERNAL

• Body language

• Empathic design

• Eye tracking

• Facial coding

Development

product/market

combination

Market approach

• Advertising

• Publicity

Market approach

• Transactions

• Orders

Customer

Relationship

Management

X

X

X

X

-

-

X

X

X (personal sales)

-

-

-

X (personal sales)

-

-

-

- (except: DM)

- (except: DRA)

X

X BLACK BOX

Input/output model

INTERNAL

• EEG

• fMRI

X

X

X

X

-

-

-

-

1. Just a little bit about the brain

2. Three brain approaches and four

stages of commercial processes

3. Applications

4. Golden brain rules to bring home

4. Golden brain rules to bring home

Which decisions can you make today with

a decision system from ancient times?

WARNING! Gut feeling is hazardous.

It’s your decision system of one million years

ago….

4. Golden brain rules to bring home

And which ones definitely not?

WARNING! Gut feeling is hazardous.

It’s your decision system of one million years

ago….

1. Professional marketeers:

be aware of your own preferences

2. The brain is fond of games….

Brueghel (1560)

....and has been for ages 2.

3. You buy more from people you like

4. What do Copernicus, Darwin and

neuroscientists have in common?

So who is in power? The Google/Apple/Facebook-country: 5.

The consumer has no say at all…

So who is in power? 5.

Anatomy of Seduction – conclusions:

- Old brain has more power than new brain likes to admit

- You can look at the brain from the inside, outside, and by

measuring reactions

- We measure what we could not measure before

- Applications in all steps of the commercial process

- Old and new methods in perspective, all with the same

results:

Managing commercial processes better, faster and more

reliable than ever before.

Some of our clients:

If you happen to read Dutch:

Thank you so much for your attention!

Paul Postma Marketing Consultancy

Edisonbaan 14G, 3439 MN Nieuwegein

paul.postma@ppmc.nl www.ppmc.nl