Promote Like the Donald

(c) 2016, Jeff Gilman The Center for Business Innovation

jeffgilman.com

Behavioral economics provides science based ways to increase marketing effectiveness. Social

Proof sells.

About This Slide Deck• One of a series of case studies

• For business and non-profit organization people

• Designed to point out innovations

• And promote creative thought

• From JeffGilman.com

Who This Is For

• Owners, operators and managers of small businesses and non-profits seeking creative ways to gain a competitive advantage.

• People seeking innovations to apply to their own operations.

Who This Is NOT For

• People seeking a simple - one size fits all solution.

• People looking to get rich quick.

• People that want the ‘secret’ handed to them.

Why Listen To Jeff?• Started, bought, developed, sold several businesses. Consulted for several

non-profits.

• Big 6 consulting firm background.

• Experience in large and small business, non-profits, and government.

• MBA, BS Accounting

• In addition to the US, Jeff has worked in Pakistan, Barbados, Saudi Arabia, and other countries.

• Big picture.

• Seasoned and experienced.

• Former SCORE Mentor

DISCLAIMER There is no warranty or representation that this information will meet your requirements, that it will be of satisfactory quality, that it will be fit for a particular purpose, that it will not infringe the rights of third parties, that it will be compatible with any situations, and that any of the information provided will be accurate. We make no guarantee of any specific results from the use of this information. No part of this information or conclusions is intended to constitute advice from professionals and your own analysis and the content of this information should not be relied upon when making any decisions or taking any action of any kind. No part of this information is intended to constitute a contractual offer capable of acceptance. No goods or services are sold through this information and service details are provided for information purposes only.

Business Science vs. Business Intuition

There are many perspectives and often disagreement on business problems. Some of this discord is because of honest difference of opinion - two people can look at the same facts and come to different conclusions.

Much disagreement is because people, driven by purely pecuniary interests, offer supposedly ‘common sense solutions’ as the key to business success. They promote their tonic as the cure all, be all, end all, for all ailments. Of course, most of this is nonsense. My response is, “there ain’t no free lunch.”

Occasionally one of their acolytes enjoys a success which is offered up as proof of their wizardry. However, in science, it is important to count the hits as well as the misses and that’s what separates business science from the mere promoters.

The Center for Business Innovation is committed to the science of business - to finding scientific proof of what works and what doesn’t so that entrepreneurs and business people of all levels of experience and abilities can enjoy the greatest possible chances for success.

Introduction

The early part of a political campaign tends to attract little attention. And the attention it does attract is from the most enthusiastic followers - the political junkies and extremists - and not main stream voters.

Candidates struggle to separate themselves from the field. They wrestle with getting people interested in their ‘issues’ and the ‘reasons’ they are running.

They often fall back on tired sayings like, “I’ll cut taxes” or “I’ll create opportunity for everyone.” And the world yawns.

Trump has changed that dynamic with a new type of campaign that focuses on using just 1 promise and one reason - social proof - to support him.

Behavioral economics is the study of how people make decisions.

Idea gained prominence when Dr Daniel Kahneman won the Nobel Prize for his research in 2002.

Key concept is that people are NOT rational decision makers. That is, people are influenced by things other than rationality including personal biases, emotion and so forth.

Thus it is important to communicate with people in ways that improve the likelihood of them accepting your message.

“people have a strong tendency to go along with the status quo or default option.”

― Richard H. Thaler, Nudge: Improving Decisions About Health, Wealth, and Happiness

The ProblemGetting noticed

1. Differentiate ones’s self in a competitive world.

2. Inspiring action.

3. Get the sale before the other guy.

4. Build a brand.

Background: The need for results

The story begins with any business or organization, yours maybe.

And the need to more effectively convert people from prospects to contributors.

An important way to do this is thru the tools of influence - that is - ways information is presented that make people are most likely to accept it.

The techniques presented can be used, individually or in groups, on any web site or marketing material.

Background: The problem with communications

Many of us believe that presenting the facts or sharing information is how information is exchanged or how people are made into customers or supporters.

This is not true.

People hate to think. The brain, contrary to rumor, does not like to analyze and parse information to see how it benefits one.

The brain likes to exclude information and do as little as it can. Your brain is happiest when it is parsing information out rather than bringing data in.

Therefore, the brain has developed a set of rules - heuristics - to get thru the day.

These rules allow the brain to make fast, and generally good, decisions without wasting time or energy.

If these rules are understood, the communicator has a direct ‘feed’ into the brain and can by pass the filters designed to keep information out.

Principals of Influence6 heuristics the brain uses to make fast, effortless decisions

• Social proof - following the other guy. (Like mother said, ‘if everyone else jumped off a bridge would you too?’ Of course you would, that’s what everyone is doing.)

• Scarcity - the less there is of it the more valuable it is. (Don McClean, author of ‘Bye Bye American Pie’ sold his original manuscript for $1.2 million. But the photocopy, as an exact duplicate as anyone might need, is not worth 50 cents.)

• Reciprocity - I owe you. (Phrases such as ‘much obliged’ or ‘I’m beholden’ are part of our culture. There is a strong internal pressure to level the scales.)

• Consistency - humans strive to be consistent - to behave in a predictable fashion. (Research shows it’s easier for someone to take the second step after taking the first.)

• Authority - we obey authority figures. (Every con man knows dressing the part is half the battle. Dress like a banker and you are half way to getting an old lady to hand over her life savings.)

• Liking - we tend to do business with people we like and trust. (Politicians love to be photographed kissing babies because they know it makes them likable - and instant liking is more powerful than a 50 page position paper.)

Influence Is Based On• Research conducted by Dr. Robert Cialdini

• Regents' Professor Emeritus of Psychology and Marketing at Arizona State University

• He is best known for his 1984 book Influence: The Psychology of Persuasion. The book has sold over three million copies and has been translated into 30 languages. It was listed on the New York Times Business Best Seller List. Fortune Magazine lists the book in their "75 Smartest Business Books".

• His two other books, "Yes! 50 Scientifically Proven Ways to Be Persuasive" and "The Small BIG: Small changes that spark a big influence" were named a New York Times Bestseller and The Times Book of the year respectively.

4 Slides Comparing Trump to 2 Competitors

Examples taken from Facebook posts.

Trump: endorsements and other social proof

Not counted: two attacks in 14 posts.

Trump: endorsements and other social proof. Consistent about ‘make America great again.’

Jeb: difficult to categorize - volunteers, administrative stuff, and attacks. Not focused. All over the place.

Ted: two endorsements, one expression of support for the military, one attack, some campaign news. Not focused. No core message.

Social ProofAmazon and other leading web retailers have adopted the principal of social proof using:

• Ranking systems. • Best Seller tags • Reviews. • Counting the number of reviews. • Ordering the reviews in the sequence

others find ‘most helpful’. • The ‘verified’ purchase, seller, etc.

What they know is the buyer is not going to compare dozens or even a few other books to arrive at a buying decision. Rather, the buyer is going to take the path of least effort and silently say to herself, ‘what do other people think?’ and follow.

Trump Has Applied This To His Campaign

• Endorsements

• Polls

• Pictures in front of crowds

• Talking about record crowds

• Talking about how great everything is that he has

Lessons

• Use Endorsements

• Point out how well you do in Polls

• Use pictures of you and your products in the hands of users

• Talking about strengths

• Talking about how special you are

• Be consistent

Resources

Nudge - Dr Richard Thaler

Thinking Fast and Slow - Dr Daniel Kahneman

Influence - Dr Robert Cialdini

Conclusion: Better Selling Is Inexpensive

• Of all the things a firm can do, studying consumer behavior better delivers the most bang for the buck.

Bigger, splashier ad campaigns

Successful new products and

locations

Details of daily business

Better (i.e., higher)

conversion rates

Better Technique Delivers More Results For Less Money

Results

Investment

MoreLess

Mor

eLe

ss

Focusing on how buyers make decisions is the least expensive and highest return activity sellers can under take.

The Innovation

Applying new knowledge - the psychology of decision making - to buyer behavior.

About Jeff Gilman

jeffgilman.com

Jeff is a multidisciplinary consultant that helps small businesses with coaching and developmental services.

There are just a few things that make a big difference to small organizations: better fundamentals and a clearer vision of how they create customers. Jeff helps with both.

The innovation series is devoted to demonstrating that opportunity is just one innovation away.

"There is no one better at listening and helping small business people sort thru their ideas and choices." - Tom Peric

“I love my talks with Jeff.” – Carajoy Nash

“My relationship with Jeff is very important to me.” – Willie Davis

“Jeff is a life time friend.” – Dale Brooks

Certified mentor, retired