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PSYCHOLOGY OF CONVERSION
RATE OPTIMIZATION
www.alterspark.com
Brian Cugelman, PhD
AGENDA
1. Your presenter: Brian Cugelman, PhD
2. Persuasive psychology and technology
3. Persuasive architectures
4. The persuasive communication model
5. Optimization experiments
2
YOUR PRESENTER: BRIAN CUGELMAN, PHD
 PhD and published scientist on
digital behaviour change
 Corporate and group training
 Conversion rate optimization
consulting
3
@cugelman
© Copyright 2013 | Brian Cugelman, PhD | AlterSpark Corp.
PERSUASIVE PSYCHOLOGY AND
TECHNOLOGY
4
5
BEHAVIOUR CHANGE TECHNOLOGIES
WHAT IS BEHAVIOUR CHANGE TECHNOLOGY?
6
BJ Fogg
Technology Persuasion
Persuasive
Technology
Websites
Mobile phones
Video games
Software
Virtual reality
Fitness tech
Shifting beliefs
Attitude change
Behaviour change
Motivation
Compliance
HOW DOES CHANGE WORK?
7
Belief Attitude Behaviour
Start a new good habit + + +
Remove an old bad habit -  - -
Increase existing good habits   
Decrease existing bad habits   
Prevent bad from starting
© Copyright 2013 | Brian Cugelman, PhD | AlterSpark Corp.
PERSUASIVE ARCHITECTURES
8
HOW WAITERS CAN INCREASE TIPS
• Satisfying customers’ needs
• Building trust through honest advice
• Making a personal connection
• Being liked
• Doing favours
• Target marketing
• Sex appeal
• Making tipping easy, and forcing higher tips
9
WITH A DEPENDENT VARIABLE, WE ALL FIGURE OUT THE
PSYCHOLOGY OF INFLUENCE
In person
• Service industry: tips
• Comedians: laughs or boos
• Authors: public reaction
• Sales person: Sales or door
in face
Online
• E-commerce: sales funnel
• Social media campaigns:
buzz metrics
• Software developers:
downloads, support calls
10
EVIDENCE-BASED BEHAVIOURAL MEDICINE
11
Dose
Active Ingredients
If your technology were a medicine,
would its ingredients act like vitamins or addictive drugs?
INGREDIENTS OF HEALTH BEHAVIOUR CHANGE TECH
CUGELMAN, B., THELWALL, M., & DAWES, P. (2011) Online interventions for social marketing health behavior change
campaigns: A meta-analysis of psychological architectures and adherence factors. Journal of Medical Internet Research, 13(1),
e17. http://www.jmir.org/2011/1/e17/
12
EffectSize(d)
Interventions(%)
INGREDIENTS
• Ability
• Benefits
• Costs
• Motivation
• Opportunity
• Punishments
• Rewards
• Self-efficacy
• Threats
• Triggers
13
14
Proposition
Scarcity and
environmental context
Social
learning
(norms)
CTA
Framing offers
Social diffusion
facilitation
Decision
making
Decision making
Source
Trust
Ethics,
morality,
and values
Source
15
OPTIMIZATION: THE MIX OF INGREDIENTS THAT ACHIEVES
THE MOST IMPACT FOR THE LEAST EFFORT
16
Number of Persuasive Ingredients
InfluenceCapacity
How do you know when you have too few or too many?
Too
few
Too
many
Just right
MORE PERSUASION PER SQUARE INCH
17
© Copyright 2013 | Brian Cugelman, PhD | AlterSpark Corp.
THE PERSUASIVE COMMUNICATION MODEL
18
PERSUASIVE COMMUNICATION MODEL
19
TAXONOMY OF 50 PERSUASIVE PRINCIPLES
20
© Copyright 2013 | Brian Cugelman, PhD | AlterSpark Corp.
OPTIMIZATION EXPERIMENTS
21
OPTIMIZATION WITH EYE TRACKING
22
If we want people to engage with ad copy
more, how could we modify this image?
OPTIMIZATION WITH EYE TRACKING
23
THE BENEFITS OF OPTIMIZATION
Your digital products:
 Stand a better chance of impacting what matters:
beliefs, attitudes, behaviours
 Can predictably persuade/convert a percentage of
people exposed to them
 Can be scaled with somewhat predictable outcomes
 Can be translated to other media
24
MEASURING SUCCESS
25
Independent
variables
(Cause)
Dependent
variable
(Effect)
The causal
factors that you
can manipulate
The outcome
that is changed
INDEPENDENT VARIABLES TO TEST
Structure/style
 Layout
 Colour
 Editorial tone
Psychology
 Audit
persuasive
architecture
26
http://www.my-landing-page.com
Headlines
Body copy, body copy, body
copy, body copy, body copy,
and body copy.
Photos
Calls To Action
Sub-section titles
Body copy, body copy, body copy,
body copy, body copy, body copy,
body copy, and body copy.
DEPENDENT VARIABLES
DEEPER IMPACTS FACILITATED THROUGH DIGITAL TRANSACTIONS
27
Digital Behaviours
• Reading content
• Signing-up
• Subscribing
• Downloading
• Retweeting
• Liking/ Plussing/ Hearting/
Acknowledging
• Marking content as offensive
• Posting a question/topic
• Voting
• Commenting
• Sharing
• Tagging
• Forwarding
• Inviting friends
• Buying a product
• Bookmarking
Offline Impacts
• Changing beliefs
• Changing attitudes
• Changing behaviours
• Buying a product/service
• Making referral
Everything that can be counted
does not necessarily count;
everything that counts cannot
necessarily be counted.”
OPTIMIZATION EXPERIMENTS
28
Control
(baseline)
Variation A Variation B
Conversion rate: 2% Conversion rate: 5%Conversion rate: 1.5%
TYPES OF OPTIMIZATION EXPERIMENTS
29
Split test A/B tests Multivariate
Radically different ideas Testing different variations Many elements
2 x 3 x 4 = 24
A B A B C
IMPLEMENT EXPERIMENTAL VARIATIONS
30
Run tests and assess results
31
Nothing is good or bad without a comparison
You always need a control, which shows
how your technology is performing now
THE OPTIMIZATION PROCESS
32
1. Define
page goals
and audience
2. Develop
hypotheses
3. Implement
experimental
variations
4. Run tests
and assess
results
5. Implement
the winning
ideas
WHAT’S NEXT?
33
team@alterspark.com
(416) 921-2055
Sign-up for our newsletter
Learn about my course
Speak about corporate training
Discuss conversion rate optimization
www.alterspark.com
Try our measurement tool: www.surveygraph.com

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Psychology of Conversion Rate Optimization

  • 1. PSYCHOLOGY OF CONVERSION RATE OPTIMIZATION www.alterspark.com Brian Cugelman, PhD
  • 2. AGENDA 1. Your presenter: Brian Cugelman, PhD 2. Persuasive psychology and technology 3. Persuasive architectures 4. The persuasive communication model 5. Optimization experiments 2
  • 3. YOUR PRESENTER: BRIAN CUGELMAN, PHD  PhD and published scientist on digital behaviour change  Corporate and group training  Conversion rate optimization consulting 3 @cugelman
  • 4. © Copyright 2013 | Brian Cugelman, PhD | AlterSpark Corp. PERSUASIVE PSYCHOLOGY AND TECHNOLOGY 4
  • 6. WHAT IS BEHAVIOUR CHANGE TECHNOLOGY? 6 BJ Fogg Technology Persuasion Persuasive Technology Websites Mobile phones Video games Software Virtual reality Fitness tech Shifting beliefs Attitude change Behaviour change Motivation Compliance
  • 7. HOW DOES CHANGE WORK? 7 Belief Attitude Behaviour Start a new good habit + + + Remove an old bad habit -  - - Increase existing good habits    Decrease existing bad habits    Prevent bad from starting
  • 8. © Copyright 2013 | Brian Cugelman, PhD | AlterSpark Corp. PERSUASIVE ARCHITECTURES 8
  • 9. HOW WAITERS CAN INCREASE TIPS • Satisfying customers’ needs • Building trust through honest advice • Making a personal connection • Being liked • Doing favours • Target marketing • Sex appeal • Making tipping easy, and forcing higher tips 9
  • 10. WITH A DEPENDENT VARIABLE, WE ALL FIGURE OUT THE PSYCHOLOGY OF INFLUENCE In person • Service industry: tips • Comedians: laughs or boos • Authors: public reaction • Sales person: Sales or door in face Online • E-commerce: sales funnel • Social media campaigns: buzz metrics • Software developers: downloads, support calls 10
  • 11. EVIDENCE-BASED BEHAVIOURAL MEDICINE 11 Dose Active Ingredients If your technology were a medicine, would its ingredients act like vitamins or addictive drugs?
  • 12. INGREDIENTS OF HEALTH BEHAVIOUR CHANGE TECH CUGELMAN, B., THELWALL, M., & DAWES, P. (2011) Online interventions for social marketing health behavior change campaigns: A meta-analysis of psychological architectures and adherence factors. Journal of Medical Internet Research, 13(1), e17. http://www.jmir.org/2011/1/e17/ 12 EffectSize(d) Interventions(%)
  • 13. INGREDIENTS • Ability • Benefits • Costs • Motivation • Opportunity • Punishments • Rewards • Self-efficacy • Threats • Triggers 13
  • 14. 14 Proposition Scarcity and environmental context Social learning (norms) CTA Framing offers Social diffusion facilitation Decision making Decision making Source Trust Ethics, morality, and values Source
  • 15. 15
  • 16. OPTIMIZATION: THE MIX OF INGREDIENTS THAT ACHIEVES THE MOST IMPACT FOR THE LEAST EFFORT 16 Number of Persuasive Ingredients InfluenceCapacity How do you know when you have too few or too many? Too few Too many Just right
  • 17. MORE PERSUASION PER SQUARE INCH 17
  • 18. © Copyright 2013 | Brian Cugelman, PhD | AlterSpark Corp. THE PERSUASIVE COMMUNICATION MODEL 18
  • 20. TAXONOMY OF 50 PERSUASIVE PRINCIPLES 20
  • 21. © Copyright 2013 | Brian Cugelman, PhD | AlterSpark Corp. OPTIMIZATION EXPERIMENTS 21
  • 22. OPTIMIZATION WITH EYE TRACKING 22 If we want people to engage with ad copy more, how could we modify this image?
  • 23. OPTIMIZATION WITH EYE TRACKING 23
  • 24. THE BENEFITS OF OPTIMIZATION Your digital products:  Stand a better chance of impacting what matters: beliefs, attitudes, behaviours  Can predictably persuade/convert a percentage of people exposed to them  Can be scaled with somewhat predictable outcomes  Can be translated to other media 24
  • 26. INDEPENDENT VARIABLES TO TEST Structure/style  Layout  Colour  Editorial tone Psychology  Audit persuasive architecture 26 http://www.my-landing-page.com Headlines Body copy, body copy, body copy, body copy, body copy, and body copy. Photos Calls To Action Sub-section titles Body copy, body copy, body copy, body copy, body copy, body copy, body copy, and body copy.
  • 27. DEPENDENT VARIABLES DEEPER IMPACTS FACILITATED THROUGH DIGITAL TRANSACTIONS 27 Digital Behaviours • Reading content • Signing-up • Subscribing • Downloading • Retweeting • Liking/ Plussing/ Hearting/ Acknowledging • Marking content as offensive • Posting a question/topic • Voting • Commenting • Sharing • Tagging • Forwarding • Inviting friends • Buying a product • Bookmarking Offline Impacts • Changing beliefs • Changing attitudes • Changing behaviours • Buying a product/service • Making referral Everything that can be counted does not necessarily count; everything that counts cannot necessarily be counted.”
  • 28. OPTIMIZATION EXPERIMENTS 28 Control (baseline) Variation A Variation B Conversion rate: 2% Conversion rate: 5%Conversion rate: 1.5%
  • 29. TYPES OF OPTIMIZATION EXPERIMENTS 29 Split test A/B tests Multivariate Radically different ideas Testing different variations Many elements 2 x 3 x 4 = 24 A B A B C
  • 31. Run tests and assess results 31 Nothing is good or bad without a comparison You always need a control, which shows how your technology is performing now
  • 32. THE OPTIMIZATION PROCESS 32 1. Define page goals and audience 2. Develop hypotheses 3. Implement experimental variations 4. Run tests and assess results 5. Implement the winning ideas
  • 33. WHAT’S NEXT? 33 team@alterspark.com (416) 921-2055 Sign-up for our newsletter Learn about my course Speak about corporate training Discuss conversion rate optimization www.alterspark.com Try our measurement tool: www.surveygraph.com