MarketingSherpa Blog

As much as 45 percent of what customers do every day is habitual. That is just one interesting piece of research we shared in Tuesday’s MarketingSherpa blog post, which was part one of my interview with Charles Duhigg, Pulitzer Prize-winning reporter for The New York Times and author of The Power of Habit: Why We Do What We Do in Life and Business.

In today’s blog post, we share part two from the interview. You’ll learn about the reward schedule for customers, conducting research that informs effective writing and optimizing the habits in your day-to-day life, along with a question that was really nagging me — can you leverage the science of habit and still be an ethical, customer-first marketer?

If you’re interested in learning more about Charles’s research, we’re giving away a copy of his book in this week’s MarketingSherpa Book Giveaway (enter by December 13 for a chance to win) and Charles will also be a featured speaker at MarketingSherpa Summit 2016 in Las Vegas.

Understanding the reward schedule for customers

MarketingSherpa: So, in the book, and what you’re talking about, you talk about the ways that brands or marketers influence customers to create habits essentially like, hey, marketing to have milk with cookies, or what have you, or Febreze. Have you seen any examples of customer habits actually influencing the brand? So working vice-a-versa or a smart brand out there that’s doing some research and really sees what natural customer habits are and taps into them as opposed to creating them?

Charles: Oh yeah! Absolutely, all the time. I mean, one of my favorite examples of this is video games. Right? When a video game designer designs a new game, the first thing that they decide upon is what the reward schedule is. What that reward schedule is, is really looking at when people play games, when do they expect to get some type of thing that makes the playing continue to feel kind of fun, when you get a reward that you can anticipate, when you get a reward that you don’t anticipate.

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Let’s pretend for a second you are an alien from outer space studying economics. You’re presented with these two options:

• Option A: People can make a cup of coffee for 16 to 18 cents in the comfort of their home.
• Option B: They can haul themselves out of bed earlier, stop at Starbucks and pay two … three … four … five dollars for a cup of coffee.

As a rational alien studying economics, you would know that people will certainly choose Option A.

Except, as we all know, people don’t. They choose Option B. Not everybody, of course. But enough people to generate $16.447 billion in revenue for Starbucks. So many people, in fact, that you must look at this purchase decision — which we’ve become so accustomed to being a part of daily life — as an alien economist to even notice that it’s not a rational economic decision every time people make that purchase.

Why people make repeated, economically irrational decisions

So why do people act this way? Because they are no longer making rational economic decisions; rather, they are on autopilot following automated habits. Starbucks’ marketing department has helped turn a simple cup of coffee into a cheap luxury habit.

It’s not just Starbucks, of course. It’s the daily newspaper on your driveway. Movie night. And even, according to Charles Duhigg, the mundane act of brushing your teeth.

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When you think of social media marketing, you may think of the behemoth — Facebook. Sure, it has almost 1.5 billion monthly active users, but where there is a lot of sound, there is a lot of noise. It is difficult to get your message heard.

I interviewed Danny Gavin, Vice President and Director of Marketing, Brian Gavin Diamonds, about using emerging social media platforms to create brand awareness.

Here are a few lessons I learned from our conversation.

Focus on branding, not selling

Since many emerging platforms are, well, emerging, there hasn’t been a lot of commerce on them yet. Most social platforms focus first on building an audience, and only later on actually monetizing that audience.

New social platforms tend to have a loyal, niche audience that is looking for authentic, organic conversations and wary of the nefarious effects of commercialization. So whatever content you create, make sure it rings true with what the social platform is known for.

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As a marketer, sushi really fascinates me.

I do enjoy a good sushi roll, but I am by no means a “sushi connoisseur.” However, the fact that I have met so many of them really intrigues me. How can so many people be so passionate about the rolling up of raw fish and rice?

I was recently visiting a friend, and he began to pontificate about the best local sushi restaurant, apparently rated one of the best in the world. He also claimed that I technically have never had sushi until I’d had it from this restaurant. He said I would “simply die” after just one bite (see irony). And I know my friend was not alone, for it took several weeks to get reservations for this restaurant.

Again, the sushi phenomenon fascinates me. Why would anyone wait weeks for sushi when they can just go to the local grocery store? Sushi and sushi, right?

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Mike Loveridge, Digital Marketing Manager, Humana, runs the conversion rate optimization program at Humana, which is comprised of a team of 15 testers and supporting staff.

In his interview at the MarketingSherpa Email Summit 2015 Media Center, Mike explained that the team has spent the past year getting a process in place that would walk a tricky tight rope: keeping costs down, while improving the quality of the test. Locking down this process can be difficult in an enterprise-grade company, Mike said, but especially in the insurance industry with government regulations.

“This year it’s more just branching into other areas of the site and the experience that we weren’t able to touch last year,” he said, listing the member’s portal and company firewall.

Mike’s goal is to spur a company-wide transformation with testing culture, starting with his team.

“I think [with] insurance companies in general, the big push is to go from being an insurance company … to being a health partner with the consumer so that there is a level of trust that hasn’t existed before,” he said.

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Introducing a whole new customer segment to your brand can be a challenge for marketers. Especially when your brand transitions from catering solely to professional specialists to the general B2C market. That’s the challenge the team at mybody skincare faced when they were looking to expand from selling to physicians to also selling directly to consumers.

Abby Traister, Vice President of Marketing, and Mike Nelson, Marketing Director of Online, both of mybody skincare, sat down with Daniel Burstein, Director of Editorial Content, MarketingSherpa, in the MarketingSherpa Media Center at IRCE 2015 to discuss how the company used a combination of social media virality and support for a good cause to introduce this brand to its B2C audience. By supporting a charity that was personally related to mybody skincare’s founder, the company was able to do good while introducing its brand in an authentic way.

According to Abby, mybody skincare had only marketed to physicians prior to March 2015. Around that time, a B2C ecommerce site was introduced but it wasn’t seeing as much traffic as the mybody skincare team wanted. The team then saw an opportunity to combine its dedication to philanthropy to promoting its new product line.

The company’s founder, David Watson, is a chairman on the board for the charitable organization Bring Change 2 Mind, which works to end the stigma and discrimination surrounding mental illness. Because the company had a personal connection to this organization, it decided to partner with Bring Change 2 Mind and donate a percentage of mybody skincare’s new product online sales to support this organization.

“A lot of people wanted to get involved, and so it was a great way to get our products out there in the hands of the consumers who have never heard of us before, drive traffic to our site and help a good cause all at the same time,” Abby said.

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The last week of October, I had the opportunity to go  to my hometown in Ventura County, California and attend a Public Relations Society of America (PSRA) event featuring Adam Fetcher, Director of Global PR and Communications, Patagonia. I was excited because Patagonia is a brand passionate about sustainability and creating good, quality products.

Patagonia has taken a very unique PR strategy for promoting its brand, as you can see in the photo below, where the company took out a full page in The New York Times asking customers not to purchase a new jacket for the season.

The brand did this in response to the rampant, sometimes violent, consumerism on Black Friday shopping. Instead of slashing prices and trying to put customers into a purchasing frenzy, it encouraged a view more in line with its “bigger picture” brand mentality.

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Every marketer wants to help their customers discover something. Even if your product or service is not as personal as family history, that doesn’t mean that your marketing can’t be personalized.

In the case of Ancestry.com, the team uses information from users’ family trees to search its vast collection of historical content and records. While making a family tree is free, users must sign up and become a subscriber through an offer page to access any of the content.

“Our mission at Ancestry is to help everyone discover, preserve and share their family history,” Emily Titcomb, Senior Manager of Product Marketing, Ancestry.com, said.

The offer page can be accessed through a variety of paths on the Ancestry.com site. However, despite Ancestry having 2.7 million paid subscribers around the world searching 13 billion pieces of digitized content, the offer was the same for everyone.

Watch the full session replay on MarketingSherpa.com: Inbound Marketing: How Ancestry.com increased conversion by 20% with reduced choice barriers and targeted content

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“I think content is becoming the forefront for any ecommerce or digital strategy,” Andy Wang, Digital Brand Marketing Manager, World Kitchen, said.

The struggle, though, can come in creating that content. In 2014, 45% of B2C marketers reported “producing enough content” as a top challenge, according to the B2C Content Marketing 2014 Benchmarks, Budgets and Trends – North America report. And that’s just creating it. Moreover, 51% of marketers struggled with “producing the kind of content that engages.”

How can marketers meet the content amount demands while still producing quality content that resonates with customers?

At the MarketingSherpa IRCE Media Center, Andy discussed with Courtney Eckerle, Manager of Editorial Content, MarketingSherpa, how his team worked through these challenges.

“For us at World Kitchen, it was critical for us to bring in valid content that would showcase some of our passions that our consumers have for our products,” Andy said. “Giving them a voice was critical and allowing them to contribute to our website and be a part of our campaigns. That was one of the things we really enjoyed and were hopeful for.”

You can watch his full interview to learn how his team invited customers to share pictures and stories and integrated this user generated content into their digital marketing strategy.

There are so many different vendors in email marketing — how do you know that you’ve selected the right one for your technology needs?

In this blog post, we will cover how to begin justifying the investment to others, and choosing the right technology for your company.

Watch the full video to dive deep into three additional topics: shopping tips, questions to ask and problems an ESP won’t fix.

The panel covers these pain points, and features the perspectives of Preston Wily, President, Sewell, and Diana Primeau, Director of Member Services, CNET, alongside Charles Nicholls, SVP, Product Strategy for Marketing Solutions, SAP; John A. Caldwell, Principal and Founder, Red Pill Email; and Michael Kelly, Co-founder, Business Development, ClickMail.

Learn from the mistakes of others

“[At Sewell] we fail a lot, and we know that a lot of the best stuff we do really comes out of those failures,” Wily said.

He advised that marketers learn from mistakes either they or others in the sphere have made in the past. For instance,

Referrals — Get referrals from trusted third parties.

Goals — Define specific goals before talking to potential partners.

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