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It’s all in the mind

Presented by Phillip Adcock

Unlocking Retail Potential

07960 109876

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Responsible for the appearance and overall shopper interface of 300 stores

Have worked with most leading FMCG brands & Retailers

More than 20,000 copies sold worldwide

Explaining how people shop and that retailers aren’t all evil and twisted

Who is Phillip Adcock

A b i t o f b a c k g r o u n d

Multiple Retail Knowledge 30 Years Experience Respected And a bit famousMerchandising Manager Studying Shoppers & Consumers Writer of 3 books Don’t mention DM

62%

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Challenging times

I t ’ s a l l a b i t w r o n g

164,000 retail job losses expected in 2019 as high street woes set to worsen

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Range

Price

This isn’t just the high street!

H e r e ’ s t h e t h i n g …

This is Bricks & Mortar Retail!

What used to work, is no longer effective

87 147 30,000

£179.99£139.00 £59.00

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Defensive decision making

W h y t h e s y s t e m i s b r o k e n

Idea

Off the wall

Intuition, gut feel and creativity have been

stifled

No longer about winning, now about not

losing

Provide the solution that is most proven, whether

or not it is the best

Keep job, move on, next project please?

Gut feel based intuition

Dilute 1

Risk removalWhat could go wrong?

Will I get the sack

Dilute 2

EvidenceDid this work before?

Tons of evidence needed

Result

Safety defendedBut ineffective initiative

delivered

This could be good But this could be bad Loss aversion kicks in

Optimistic excitement Fear of failure Fear

minimised

Why does business never take a sensible idea and give it to some off the wall types to see what they make of it?

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We need a new word

I t n e e d n ’ t b e l i k e t h i s

Exp

ensi

ve

Effective

StrategyConsultancy

Data ?ScienceBehavioural

(or 2)

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What is behavioural science?

T h e r e i s a s o l u t i o n

Psychology

NeuroscienceBehavioural Economics

300,000,000Years of

EvolutionEmotionally

driven,rationally restrained

Predictable:Fight, flight,find a mate

Translating Behavioural Science into Business Success

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Why is there behavioural science?

W e ’ r e c o m p l i c a t e d b e i n g s

System 1 & 2

Left brain, right brain

Emotion & Reason

Implicit & Explicit

Working memory

Actual vs. claimed

Purchase Decision

Shopper


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Buy in to it Change because of it support itAdmit it

Can you see how so much of our environment is designed by computer, for computer?

Are you willing to consider that perhaps there is a

better (more human) way?

Will you tell others that they are woefully poor at

decision making?

Do you accept that humans are not rational super

computers?

Admit Buy in Change Support

The ABCs of behavioural science

A r e y o u u p f o r c h a n g e

A B C S


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Improve 100 things each by 1%

M a r g i n a l g a i n s


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2002 - 20161926 - 2002

Small improvements mount up

S t a r t s m a l l , m i n i m a l r i s k

1% better every day for 1 year: 1.01 to the power of 365 = 37.78


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Behavioural Science

in Action

W a l k i n g t h e t a l k

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The science of immediacy

I w a n t i t n o w

Hyperbolic discountingPeople have a stronger preference for more immediate payoffs relative to later payoffs. This preference increases the closer to the present the payoffs are

Today is your birthday & you are given £100. What would you like to spend it on?

A piece of clothing you’ve had your eye onA

Tickets to a showB

Having your ironing done for the next monthC

Sales up

40%


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The science of delegation

B l a m e - s t o r m i n g

Delegating beats decision makingOutsourcing makes life easier, less risk and less responsibility. More than 50% of management consulting projects are simply to reaffirm decisions already made

Your boss wants you to book a flight for them, but budgets are tight and you can only afford Ryanair, do you:

Go ahead and book them on the 06:00am flight out of London, Exeter?

A

Contact your boss, explain the budget issue and ask them what they want you to do?

B

Ask someone in HR to book the flight for your boss?

C

Words, 7%

Tone of voice, 38%Non-verbal,

55%


In-store

100%

Online

7%

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The science of gift shopping

G e t t i n g e m o t i o n a l

Emotion beats reason every timeOur emotions react 3,000 times faster than rational thought and are 24X more persuasive too

Your friend is leaving the area. You want to buy them a gift, something meaningful, but they send you a link to an online gift list. Do you:

Buy them a gift from their listA

Get them something else, that you think is emotionally meaningful

B

Spend time making a scrapbook of your shared memories

C

Visual priming leads to 18% increase in brand share

22% increase in confectionery sales

350% increase in share of carpet sales

8-fold increase in sales after in-store tasting

18% increase in amount spent store-wide


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The science of negativity bias

B a d n e w s s t i c k s

We fear loss more than appreciate gainThere is a ratio of 2:1 when it comes to how much it hurts to lose vs. how much we like to gain

Think back to 2018, what do you think were the most significant world events of the year

?A

?B

?C


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The science of backwards shopping

A l i g n w i t h n e e d s t a t e s

Humans are poor plannersThose who plan their needs by envisioning the future consumption make better shoppers

You’re about to write a shopping list for what you need to buy to take on holiday, do you:

Think of all the things you will need to pack in your case

A

Head off to the shops and see what jumps out at you?

B

Imagine different times of your holiday and the things you’re using?

C

Effectively promote the occasion and the products sell themselves


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Let’s make it happen!

R e m e m b e r m a r g i n a l g a i n s ?

Hard Times

Fear & Uncertainty

Behavioural Science

Need to Change

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1,492 opportunities – Starting now! Just give us a name

L e t ' s m a k e t h i n g s b e t t e r

Shoppers

Consumers

Colleagues

891Shopper Insights

114Cognitive Biases

487Promotional Insights

Translating Behavioural Science into Business SuccessPhilip Adcock07960 109876

1 Unlocking Retail Potential - Home - Metrofy › wp-content › uploads › 2019 › 07 › ... ·...

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