Post on 16-Apr-2017
Behavioral engineering
Matskevich Dmitry Co-founder: Flocktory.com, Relap.io Advisory board: Chatfuel.com, Finalprice.com
Behavioral engineering
Brain science behind
Overview
1. Why understanding human decision making mechanics is so important? 2. Brain science for 15 minutes 3. Cases to the point
Bad news
An hour later you will completely forget 80% of this content
Good news to everyone
This will change add new
cognitive toolkit to your pattern
recognition system!
1. Why understanding human decision making mechanics is important? 2. Brain science for 15 minutes 3. Cases to the point
First-Wave View of the Value Proposition
B1 (Vb) + B2 (Vp)
Value from Benefits (tangible/intangible)
Value from Prices
How sensitive is to the benefits and to the price
Second-Wave View of the Value Proposition
B1(C) + B2 (Vb) + B3 (Vp)
• Cognitive value (Emotional) can be shaped by aspects completely unrelated to Vb and to Vp
• One can ignore E and still hope to create a sustainable superior Customer Value Proposition
Third emerging-Wave View of the Value Proposition
B1(C)*{B2 (Vb) + B3 (Vp)}
Interactively shapes Vb, Vp: Not only a superior value proposition, but also Confident decisions, greater commitment, positive word of mouth, and experience utility.
Emotion not reason drive most of our decisions
Where great ideas come from?
Lean startup?
You can’t just test hundreds of hypos and wait if you are was so
lucky to pick the winning one
“There are two kinds of secrets: secrets of nature
and secrets about people”
Peter Thiel
Secrets people don’t know about themselves
Secrets people hide
because they don’t want
others to know
Secrets about people
Your job is to reveal these secrets
Can we just directly ask people about those secrets?
Humans are terrible at predicting the future
By economist Andrew Clark 2007 Life satisfaction
By neuroscientist David Eagleman
Humans are terrible at recalling the past
1. Why understanding human decision making mechanics is important? 2. Brain science for 15 minutes 3. Cases to the point
Getting into others mind 101
Brain is lazy and trying hard to minimize energy consumption
1
Lazy brain => cognitive biases
You can’t just say no to biases
You can’t just say no to biases
Energy for decision making could be more limited resource than money
Kahneman
Opt-in organ Donation
Opt-out organ Donation
4% and 12% in two European countries
86% and nearly 100% in two European countries
People always make snap judgements. What do you fear more?
More than 1 million deaths a year
Several deaths a year
2 You are not alone in your head
People are not rational by design
Prefrontal cortex rationalizes
Amygdala and Limbic system decide
Confabulation
Neurons that fire together wired together
3
People make harsher moral judgments in foul-smelling rooms
(discussed as moral emotion)
Schnall, 2008 in Personality and social psychology
People will judge a stranger to be more generous and carrying than they hold hot coffee vc iced coffee
Williams Senbarg 2008 science
An affect of context and accessibility
The very labels intended to frighten smokers were, in fact, a cue to smoke
Martin Lindstrom in Buyology notes that tobacco warning labels were found to stimulate craving for tobacco.
Our brain is changing itself
Our brain is constantly changing is response to our experience and behavior, reprograming itself on the fly
This means: Technology influences behavior and shapes our habits
Texting – is the fastest-growing behavior within the social over the past five years
Traffic tickets pay rate increased by 50% leveraging the right pattern
Our emotions are programmed with chemicals by evolution
4
Get free dopamine for every check of your fridge
Any flow of events with high variability and low predictability generate stable supply of dopamine
Newsfeeds porn Political porn Apocalyptic porn Sport porn Startup porn
The key factor affecting % of prisoners granted parole - the time that the judge spent after a meal
0%
40%
20%
60%
% o
f p
riso
ne
rs g
ran
ted
par
ole
Time of the day Start of work day End of a day
Morning snack. Lunch
It depends on serotonins level that is influences by age, time of the day, stress
Love formula
1.Stage Oxytocin • Build
relationship • Unlearn
previous habits
2. Stage Dopamine • Craving • Excitement Serotonin • Comfort/Habit • Cognitive ease • Trust
Most of the time you are in zombie mode
Perceived self Real self
5
Habit forming => long-term product success
BJ Fogg framework
The Hook by Nir Eyal
Action Trigger
Investment Variable reward
External Internal External Internal
Are there any free will left?
Most of recent studies our actions and experiences are
shaped at the instinctual level
Stop making vitamin or painkiller products
Make drugs instead
1. Why understanding human decision making mechanics is important? 2. Brain science for 15 minutes 3. Cases to the point
Instagram addiction
Instagram Amplify your personal
experience through social validation
Houzz porn
Houzz Every day something new
to desire
Never ending dopamine – oxytocin cycle
Tinder social validation
Tinder Reduce the cognitive load
of social acceptance
Cognitive toolkit: “Approved by Brain Science”
1. Cognitive ease
Causes and Consequences of Cognitive Ease by Daniel Kahneman
2. Emotions / Emotional design
Lövheim cube of emotion
3. Habits
Nir Eyal Bj Fogg
Good reading
Have you read all these books already?
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