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SUPERCHARGE YOUR GROWTH
WITH PSYCHOLOGY
Alex Chahin | alex.chahin@gmail.com
Fmr. Head of Core Rider Product Marketing, Lyft
Lessons from behavioral economics and what goes viral
We are
rational.
What’s the
best way to
get to work?
What’s the
best school for
our kids?
Which rideshare
app should I use
right now?
QUICK POLL
Who would agree that
they’re pretty rational?
Imagine it’s
date night...
Supercharge Your Growth With Psychology by Alex Chahin (Lyft)
Supercharge Your Growth With Psychology by Alex Chahin (Lyft)
Wait time is about
1-2 hours. What else
could we do?
Shake
Shack
Quick
search for
burgers
nearby
What would
you do?
QUEENS, NY SEOUL, KOREA PALO ALTO, CA
TOKYO, JAPAN PHILADELPHIA, PA AUSTIN, TX
And no, this isn’t
a special case.
Saru Sushi
4.7 stars on Google (429 ratings)
Usually ~2 hour wait on weekends
Hamano Sushi
4.3 stars on Google (165 ratings)
Rarely a long wait on weekends
71%
of Americans
are not saving
enough money for
retirement
Source: Rodney Brooks; Sinan Ozel, “71 percent of Americans aren’t
saving enough for retirement” (September 2016)
46%
have less savings
than they expected
they would five
years ago
Similar
time
Similar
time
Okay,
let’s keep
looking
OH NO!
ALMOST
GONE!
“
We find that scarcity messages
are valuable. The average Expedia
message increases the expected
utility of an unsophisticated
traveler [...] by 4.34 percent.
Source: Pascal Courty; Sinan Ozel, “The Value of Online Scarcity Signals” (October
2016)
So...are we
rational?
Supercharge Your Growth With Psychology by Alex Chahin (Lyft)
We can use this to
shape behavior
2X
TOPICS
The problem
3 steps to supercharge
Case studies
Applying it
95%
Source: Marc Emmer, “95 Percent of New Products Fail. Here Are 6
Steps to Make Sure Yours Don't” (July 2018)
of new products fail
Market research
UX research
Competitive analysis
1
2
3
But people forget to
start with people
Imagine a
world where...
your growth
tactics were more
effective
you didn’t dilute
the brand with over-
discounting
you didn’t need
incremental
budget to scale
THE 3 STEPS
TO SUPERCHARGE
WITH PSYCHOLOGY
1
2
3
Nudge them
Design the behavioral environment deliberately
Persuade them
Increase the chance they get to “yes”
Get them talking
Get people to authentically advertise for you
STEP 1
Nudge
them
Consider a
cafeteria trying
to get students
to eat more
healthy food
Restrictions
Product unavailability, bans, regulation
Money
Discounts, taxes, subsidies
Information
Advertising, PSAs, disclosures
Restrictions
Remove all junk food from cafeteria
Money
Healthy food discount or junk food tax
Information
Posters in the cafeteria
Restrictions
Remove all junk food from cafeteria
Money
Healthy food discount or junk food tax
Information
Posters in the cafeteria
Anger over
removal
Anger over
higher prices
Likely to be missed
Or we could nudge
them in the right
direction
Put on higher shelves and
behind the counter
Put right next to the
cash register
QUICK POLL
How much do you think
this could increase
healthy items sold?
78%more healthy items
sold in a similar
experiment
Source: Floor Kroese; David Marchiori; Denise de
Ridder, “Nudging healthy food choices: a field
experiment at the train station” (July 2015)
KEY IDEA
Choice
architecture
Shape behavior
by considering
what the default
action is
Imagine you’re
shopping on two
electronics sites
$150 on product page $145 on product page
$5 at checkout for shipping
Psychological
Value
Loss Gain
Losses are
felt more
than gains
Diminishing
effect
Source: Daniel Kahneman; Amos Tversky, “Prospect Theory: An Analysis of Decision under Risk” (March 1979)
Psychological
Value
Loss Gain
-$150 -$5-$145
Psychological
Value
Loss Gain
-$150 -$145
-$5
Supercharge Your Growth With Psychology by Alex Chahin (Lyft)
Psychological
Value
Loss Gain+$5
+$10
+$5
KEY IDEA
Prospect
theory
Make sure to
group pain and
separate gain
Imagine two
groups, one
given mugs
and the other
nothing
Sellers
How much would you
sell the mug for?
Buyers
How much would you
buy the mug for?
$7.12
$2.87
Source: Daniel Kahneman; Jack Knetsch; Richard Thaler, “Experimental Tests of the Endowment Effect and the Coase Theorem” (December 1990)
KEY IDEA
Endowment
effect
People value what
they already own
Imagine a
carwash with
a rewards
program
8-punch card
No free progress
10-punch card
2 punches free
✔ ✔
QUICK POLL
What was the percentage
increase in punchcard
completion?
79%more people
completed the card
with free progress
Source: Joseph Nunes; Xavier Drèze, “The Endowed
Progress Effect: How Artificial Advancement Increases
Effort” (March 2006)
KEY IDEA
Endowed
progress
Use free progress
to motivate
people more
Imagine a cafe
that sells 3
sizes of coffee
16 oz
8 oz
12 oz
Best seller
Source: Itamar Simonson, “Choice Based on Reasons: The Case of Attraction and Compromise Effects” (September 1989)
Source: Itamar Simonson, “Choice Based on Reasons: The Case of Attraction and Compromise Effects” (September 1989)
16 oz 20 oz
12 oz
Best seller
Best seller
KEY IDEA
Compromise
effect
With limited info,
people pick the
middle option
RECAP: KEY BEHAVIORAL
PHENOMENA
1
Choice
architecture
2 Prospect
theory
3 Endowment
effect
4
Endowed
Progress
5 Compromise
effect
6 Anchoring
STEP 2
Persuade
them
CIALDINI’S 6 PRINCIPLES
FOR PERSUASION
1 Reciprocation
2
Commitment
& Consistency
3 Social Proof
4 Liking
5 Authority
6 Scarcity
Source: Robert Cialdini, “Influence: Science and Practice” (August 2008)
CIALDINI’S 6 PRINCIPLES
FOR PERSUASION
1 Reciprocation
2
Commitment
& Consistency
3 Social Proof
4 Liking
5 Authority
6 Scarcity
Source: Robert Cialdini, “Influence: Science and Practice” (August 2008)
For years, J. Crew
exclusively sold
the Nike Killshot 2
in limited batches
Supercharge Your Growth With Psychology by Alex Chahin (Lyft)
Supercharge Your Growth With Psychology by Alex Chahin (Lyft)
Similar
time
Similar
time
Okay,
let’s keep
looking
OH NO!
ALMOST
GONE!
“
The Killshot 2 is white-hot: Since early 2016, it’s
sold out every time it’s hit jcrew.com [....] But
the influx of eyeballs on J.Crew's site every
time it restocks the Killshot 2 has likely led
guys to stick around and pick up some of the
brand's bread-and-butter products like
chinos and oxford-cloth shirts.
Source: Jake Woolf, “The Sneaker That Turns J.Crew Fans into Hypebeasts” (August 2017)
KEY IDEA
Scarcity
Limited supply
makes us want
to buy
Supercharge Your Growth With Psychology by Alex Chahin (Lyft)
Supercharge Your Growth With Psychology by Alex Chahin (Lyft)
Supercharge Your Growth With Psychology by Alex Chahin (Lyft)
KEY IDEA
Social
proof
We look to others’
behavior to
inform our own
Consider
crossing the
street when it’s
not your light
3.5Xmore people went into
the red-light road
when the confederate
wore a suit
Source: Robert Cialdini, “Influence: Science and
Practice” (August 2008)
Supercharge Your Growth With Psychology by Alex Chahin (Lyft)
KEY IDEA
Authority
People are more
likely to act when
an authority figure
adds credibility
Imagine you just
finished eating at
a restaurant
Control 1 mint with
the bill
2 mints
with the bill
1 mint + waiter
gives more
Source: Robert Cialdini, “Influence: Science and Practice” (August 2008)
Control 1 mint with
the bill
2 mints
with the bill
1 mint + waiter
gives more
+3%
tips
+14%
tips
+23%
tips
Source: Robert Cialdini, “Influence: Science and Practice” (August 2008)
KEY IDEA
Reciprocity
Give something to
get something
RECAP: CIALDINI’S 6 PRINCIPLES
FOR PERSUASION
1 Reciprocation
2
Commitment
& Consistency
3 Social Proof
4 Liking
5 Authority
6 Scarcity
Source: Robert Cialdini, “Influence: Science and Practice” (August 2008)
STEP 3
Get them
talking
BERGER’S 6 PRINCIPLES
FOR WORD OF MOUTH
1 Social Currency
2
3 Emotion
4 Public
5 Practical Value
6 Stories
Source: Jonah Berger, “Contagious: Why Things Catch On” (March 2013)
Triggers
BERGER’S 6 PRINCIPLES
FOR WORD OF MOUTH
1 Social Currency
2
3 Emotion
4 Public
5 Practical Value
6 Stories
Source: Jonah Berger, “Contagious: Why Things Catch On” (March 2013)
Triggers
#fashion
744.4M posts
#travel
453.8M posts
VOLUME OF INSTAGRAM HASHTAGS
#workout
149.3M posts
#foodie
137.0M posts
#lazy
11.3M posts
#late
6.2M posts
#errands
388.9K posts
#binging
67.2K posts
But we spend 8+
hours a week
watching Netflix
KEY IDEA
Social
currency
People talk about
what makes them
look good
?peanut
butter & jelly
KITKAT + COFFEE
After 12 months, the
campaign caused sales to
increase 30%+ and
eventually brought the
brand from doing $300M
annually to $500M.
Source: Jonah Berger, “Contagious: Why Things Catch On” (March 2013)
Sales increased when they changed the trigger
HOLIDAYS WEEKENDS
Source: Jonah Berger, “Contagious: Why Things Catch On” (March 2013)
Interest over time (Google Trends)
Source: Jonah Berger, “Contagious: Why Things Catch On” (March 2013)
What are those repeated spikes?
Supercharge Your Growth With Psychology by Alex Chahin (Lyft)
KEY IDEA
Triggers
People talk
about what’s
top of mind
Source: Jonah Berger, “Contagious: Why Things Catch On” (March 2013)
High
Arousal
Low
Arousal
Positive
Awe
Excitement
Amusement (Humor)
Contentment
Negative
Anger
Anxiety
Disgust
Sadness
Source: Jonah Berger, “Contagious: Why Things Catch On” (March 2013)
High
Arousal
Low
Arousal
Positive
Awe
Excitement
Amusement (Humor)
Contentment
Negative
Anger
Anxiety
Disgust
Sadness
KEY IDEA
Emotion
People talk
about what
fires them up
RECAP: BERGER’S 6 PRINCIPLES
FOR WORD OF MOUTH
1 Social Currency
2
3 Emotion
4 Public
5 Practical Value
6 Stories
Source: Jonah Berger, “Contagious: Why Things Catch On” (March 2013)
Triggers
CASE STUDY
Shared
rides
savings
Endowed
progress
Active
choice
Goal
gradient
theory
Supercharge Your Growth With Psychology by Alex Chahin (Lyft)
Shared rides↑
Monthly active riders↑
CAMPAIGN
RESULTS
INSIGHT
Use psychology
to change
behavior for free
CASE STUDY
Selling
ride
passes
Subject: 93% of passes sold!
Last chance to score $5 rides.
INSIGHT
Short supply
makes people
want to buy
Subject: 93% of passes sold!
Last chance to score $5 rides.
SUPERCHARGE
WITH PSYCHOLOGY
SCORECARD
Factors to evaluate
(each cell is worth ½ pt)
Max
Score
Your
Score
Nudge
them
Choice
Architecture
Prospect
Theory
Endowment
Effect
Endowed
Progress
Compromise
Effect
Anchoring 3 pts X pts
Persuade
them
Reciprocation
Commitment
& consistency
Social Proof Liking Authority Scarcity 3 pts X pts
Get them
talking
Social
Currency
Triggers Emotion Public
Practical
Value
Stories 3 pts X pts
Completion Have you evaluated each cell in the 3 rows above? ½ pt X pt
Execution Have you identified one tactic per row you can implement? ½ pt X pt
10 pts X pts
Factors to evaluate
(each cell is worth ½ pt)
Max
Score
Your
Score
Nudge
them
Choice
Architecture
Prospect
Theory
Endowment
Effect
Endowed
Progress
Compromise
Effect
Anchoring 3 pts X pts
Persuade
them
Reciprocation
Commitment
& consistency
Social Proof Liking Authority Scarcity 3 pts X pts
Get them
talking
Social
Currency
Triggers Emotion Public
Practical
Value
Stories 3 pts X pts
Completion Have you evaluated each cell in the 3 rows above? ½ pt X pt
Execution Have you identified one tactic per row you can implement? ½ pt X pt
10 pts X pts
Factors to evaluate
(each cell is worth ½ pt)
Max
Score
Your
Score
Nudge
them
Choice
Architecture
Prospect
Theory
Endowment
Effect
Endowed
Progress
Compromise
Effect
Anchoring 3 pts X pts
Persuade
them
Reciprocation
Commitment
& consistency
Social Proof Liking Authority Scarcity 3 pts X pts
Get them
talking
Social
Currency
Triggers Emotion Public
Practical
Value
Stories 3 pts X pts
Completion Have you evaluated each cell in the 3 rows above? ½ pt X pt
Execution Have you identified one tactic per row you can implement? ½ pt X pt
10 pts X pts
Factors to evaluate
(each cell is worth ½ pt)
Max
Score
Your
Score
Nudge
them
Choice
Architecture
Prospect
Theory
Endowment
Effect
Endowed
Progress
Compromise
Effect
Anchoring 3 pts X pts
Persuade
them
Reciprocation
Commitment
& consistency
Social Proof Liking Authority Scarcity 3 pts X pts
Get them
talking
Social
Currency
Triggers Emotion Public
Practical
Value
Stories 3 pts X pts
Completion Have you evaluated each cell in the 3 rows above? ½ pt X pt
Execution Have you identified one tactic per row you can implement? ½ pt X pt
10 pts X pts
Factors to evaluate
(each cell is worth ½ pt)
Max
Score
Your
Score
Nudge
them
Choice
Architecture
Prospect
Theory
Endowment
Effect
Endowed
Progress
Compromise
Effect
Anchoring 3 pts X pts
Persuade
them
Reciprocation
Commitment
& consistency
Social Proof Liking Authority Scarcity 3 pts X pts
Get them
talking
Social
Currency
Triggers Emotion Public
Practical
Value
Stories 3 pts X pts
Completion Have you evaluated each cell in the 3 rows above? ½ pt X pt
Execution Have you identified one tactic per row you can implement? ½ pt X pt
10 pts X pts
Supercharge Your Growth With Psychology by Alex Chahin (Lyft)
LAST POLL
Did you learn something
you can use on a current
or future project?
You now have
the tools to...
make your
growth tactics
more effective
grow while protecting
your brand from
discount dilution
grow without
always needing
more budget
And the next time you...
IF YOU ONLY
REMEMBER 1 THING
When you start
with the mind,
growth won’t be
far behind.
THANK YOU
alexchahin.com
alex.chahin@gmail.com
linkedin.com/in/alexchahin/

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Supercharge Your Growth With Psychology by Alex Chahin (Lyft)

Notas do Editor

  1. Picture of school
  2. Picture of holding phone
  3. Picture of long restaurant line
  4. Queens, NY Seoul, Korea Palo Alto, CA Tokyo, Japan Philadelphia, PA Austin, Texas
  5. Picture of long restaurant line
  6. Source link: https://www.washingtonpost.com/news/get-there/wp/2016/09/26/71-percent-of-americans-arent-saving-enough-for-retirement/ 46% have less savings today than they expected they would five years ago
  7. Scarcity Also: betty crocker, headphones for 145+5 vs 150
  8. Source link: https://www.uvic.ca/socialsciences/economics/assets/docs/seminars/Online%20Scarcity%20Informational%20Value1015.pdf Full quote: We find that scarcity messages are valuable. The average Expedia message increases the expected utility of an unsophisticated traveler, who does not condition her decision on any publicly observable information, by 4.34 percent. For a consumer who conditions her decision on the number of days remaining till departure, the maximum increase in expected utility is 4.12 percent.
  9. Where do you start?
  10. Scarcity
  11. Tax, discount, etc
  12. Tax, discount, etc
  13. Tax, discount, etc
  14. Or...choice architecture
  15. Source link: https://watermark.silverchair.com/fdv096.pdf?token=AQECAHi208BE49Ooan9kkhW_Ercy7Dm3ZL_9Cf3qfKAc485ysgAAAmgwggJkBgkqhkiG9w0BBwagggJVMIICUQIBADCCAkoGCSqGSIb3DQEHATAeBglghkgBZQMEAS4wEQQMebTk2Qph0meMzZ0cAgEQgIICG-YTu736-VEisZIj10VUYWLQGNP8SbvcMzxgxHxRoejsQ5HklNIhawNpa1nVx6n3I50iMIL_UseN5nRwPUpqzOSC56HXBoCCIoasGOESluOLeB2GYEl5TwvrAZ_echqD0LiGifPCefqU_6nuOOJfrDRogqLOkBnPjVoEj65N-DbvZC9Y6baNWT51KD_oG59sCp2MupBYN0k8zprRcXh0YmK0fhNjjWQdj1V2cpcaCPDz-U3oTIZdhP-YtJM6FlkjEz0cq6ASc2EDwg0Ao9SXxHh8ttVIK2rSFDVmfCNptVu5_NsrQPKcjpr3azE3GHNdexhyZfozXY1EKqwjUw8q7XkalXdH2mm9faXnTsLC0cX5nXFJvzQWPBiAeIyD2um0E7zI8t1EfL1a3t8Wk85jQuUr-EZk4JfSw75jc5bRF9cI9b2xDKT74BEu25wVg1MECdvC_dl-VTsUBHjIWC6yDuNBjFHKFfh95k8DxDpA-l_NmLzI1TTqncnsl7drFVf0PZ6fm9H7NkV4wHk1Or798QmLIqOmMysb63Gavcr8T5FSAXzoC8oezN-u4jaC8cQ26Q3C7W_kDWjzPfDGcf4nMmmaHmMtG7vO2fnTiPmnZGPK6QUcmYDtt866kzsU_tGWIMo_Qb74Nm8WTIi2HTn5KddRzXbn4FftI0XZ_4DwKvyRfg16QWkBWDEzuY9vAhm3Ox0SxHo_C27r6lRb
  16. Scarcity
  17. Source link: http://www.its.caltech.edu/~camerer/Ec101/ProspectTheory.pdf
  18. Scarcity
  19. Source link: https://www.jstor.org/stable/2937761?seq=1#page_scan_tab_contents
  20. Scarcity
  21. Scarcity
  22. Source link: https://www.jstor.org/stable/10.1086/500480?seq=1#page_scan_tab_contents
  23. Scarcity
  24. Source link: http://www.cognition.aau.at/bg/BA/Simonson%20(1989).pdf
  25. Where do you start?
  26. Where do you start?
  27. Where do you start?
  28. Where do you start?
  29. Scarcity Also: betty crocker, headphones for 145+5 vs 150
  30. Source link: https://www.gq.com/story/jcrew-nike-killshot-2 Full quote: We find that scarcity messages are valuable. The average Expedia message increases the expected utility of an unsophisticated traveler, who does not condition her decision on any publicly observable information, by 4.34 percent. For a consumer who conditions her decision on the number of days remaining till departure, the maximum increase in expected utility is 4.12 percent.
  31. Where do you start?
  32. Where do you start?
  33. Where do you start?
  34. Where do you start?
  35. In 2007, Colleen Chorak was tasked with reviving the Kit Kat brand...
  36. Where do you start?
  37. Descriptive to branded, but err descriptive Telling people about the process is as valuable as the outcome Make it feel real