New Research: Why a Provocative Approach Falls Short in Two out of Three Critical Conversations conversation.com
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Tim Riesterer Chief Strategy and Research Officer Corporate Visions @TRiesterer Co-Author: Customer Message Management Conversations That Win the Complex Sale The Three Value Conversations
Customer lifecycle messaging Why Change? Why Stay? Customer Acquisition Customer Renewal
Seller Opinion Survey Approach Buyer Simulation Approach Winner Neuroscience Losers Best Practices Imitation Decision-Making Science
Decision Science-Based Simulations Develop Recruit Identify statistically Marketing/Sales hundreds of significant differences Messaging participants to Determine Most based on simulation Conditions simulation Likely Principles responses to determine Identify Core to Test winning condition. Science Review 40 Condition 1 Concept years of Related to Task Persuasion Research Uncertainty Findings Winning Status Condition 2 Condition Quo Loss Bias Aversion/ Condition 3 Risk • Neuroscience • Preference Seeking • Behavioral Stability • Perceived Cost Economics Develop a messaging • Social Condition 4 of Change framework based on • Selection Psychology Contrast winning condition. Difficulty Validate against Effect • Anticipated proven decision Condition 5 Regret science principles
Decision Science-Based Simulations w/ third-party researcher Develop Recruit Identify statistically Marketing/Sales hundreds of significant differences Messaging participants to Determine Most based on simulation Conditions simulation Likely Principles responses to determine Identify Core to Test winning condition. Science Review 40 Condition 1 Concept years of Related to Task Persuasion Research Uncertainty Findings Winning Status Condition 2 Condition Quo Loss Bias Aversion/ Condition 3 Risk • Neuroscience • Preference Seeking • Behavioral Stability • Perceived Cost Economics Develop a messaging • Social Condition 4 of Change framework based on • Selection Psychology Contrast winning condition. Difficulty Validate against Effect • Anticipated proven decision Condition 5 Regret science principles
Seller Opinion Survey Approach Buyer Simulation Approach Winner Neuroscience Losers Best Practices Imitation Decision-Making Science
Customer lifecycle messaging Why Change? Customer Acquisition
Defeating the Status Quo Bias Your Solution
Defeating the Status Quo Bias Your Solution Preference Stability
Defeating the Status Quo Bias Your Solution Preference Stability Cost of Action/ Change
Defeating the Status Quo Bias Your Solution Preference Stability Selection Cost of Difficulty Action/ Change
Defeating the Status Quo Bias Your Solution Preference Anticipated Stability Regret /Blame Cost of Selection Action/ Difficulty Change
Defeating the Status Quo Bias Your Solution Before and after Preference Anticipated Stability hero Story Regret /Blame Cost of Selection Action/ Difficulty Create enough Change Contrast De-stabilize Cost of their preferences Staying same
Professor Zak Tormala Stanford Business School
Why Change Story Messaging Test
Four Test Conditions • Standard Problem/Solution/Credential Pitch • Problem/Solution w/Value Adds Pitch • Problem/Solution w/Unconsidered Needs Pitch • Lead with Unconsidered Needs Pitch
Uniqueness 6 5 Statistically Significant Uniqueness Improvement 50% 4 3 2 Standard Value Added Unconsidered Unconsidered Solution Solution Needs Last Needs First
Quality 9 8 7 Statistically Significant Quality Improvement 10+% 6 5 Standard Value Added Unconsidered Unconsidered Solution Solution Needs Last Needs First
Persuasiveness 8 7 Statistically Significant Persuasion Improvement (10+%) 6 5 4 Standard Value Added Unconsidered Unconsidered Solution Solution Needs Last Needs First
Highlighting unconsidered needs is unexpected, which can boost persuasion, but this only helps when it happens at the beginning of the message. When it happens at the end, it’s too late . Dr. Zakary Tormala Stanford
Why Change Story Model Improved Unconsidered New Way Need Flawed Story with Current Contrast Approach
Customer lifecycle messaging Why Change? Customer Acquisition
Customer lifecycle messaging Why Change? Why Stay? Customer Acquisition Customer Renewal
Defeating the Status Quo Bias Your Solution Preference Before and after Anticipated Stability Regret hero Story /Blame Cost of Selection Action/ Difficulty Create enough Change De-stabilize Contrast Cost of their preferences Staying same
Defeating the Status Quo Bias REINFORCING Your Solution Reinforce Preference Before and after Reinforce Anticipated Stability Regret hero Story /Blame Cost of Selection Reinforce Action/ Reinforce Difficulty Create enough Change De-stabilize Contrast Cost of their preferences Staying same
Professor Zak Tormala Stanford Business School
Why Stay Story Messaging Test
Three Test Conditions • Reinforce Status Quo Bias Message • Provocative/Challenging/Insight Message • Provocative Message with Upsell/Price Increase
Attitudes 7 Statistically Significant Improvement 9.63% 6 5 4 Status Quo Reinforce Point of View Provocative Point of View + Upsell Provocative Status Quo Message Message w/Upsell
Intention to Renew 8 7 Statistically Significant Improvement 13.27% 6 5 4 Provocative Status Quo Reinforce Point of View Provocative Point of View + Upsell Message w/Upsell Status Quo Message
Switching Likelihood 7 6 Statistically Significant Decrease 10.61% 5 4 Status Quo Point of View Point of View + Upsell Provocative Reinforce Provocative Message w/Upsell Status Quo Message
Across multiple dimensions, the status quo reinforcement messages were more persuasive and effective than the provocative messages in the ‘why stay’ context . Dr. Zakary Tormala Stanford
Why Stay Story Model Detail Mention Risk Document Competitive of Change Results Advances Review Prior Highlight Decision Cost of Process Change
Customer lifecycle Why Change? Why Stay? Customer Acquisition Customer Renewal
Customer lifecycle Why Change? Why Stay? Customer Acquisition Customer Renewal
Professor Nick Lee Warwick Business School
Why Pay Messaging Test
Situation Background Small business owner, hired firm to provide and promote health and wellness benefit program. Your contract is up for renewal Started at 20% participation, goal was 80%, achieved 50%. Turnover down, but not sure if attributable to program In addition to the renewal, your vendor is asking for a 4% price increase in the new two-year contract. Tested six different price increase messaging approaches to determine most effective.
Six Test Conditions Same Opening Documents Business Results to Date Introduce Improved Improved Improved External Reinforce Unconsidered Capabilities Capabilities Capabilities Factors Status Quo Need w/ Anchor No Anchor Timed Discount No Control Bias New features New features New features Must pass Deliberately New opt-out that increase that increase that increase along outside reinforce and approach and performance performance performance cost increase highlight new new services features Will cost 4% Adds 8% but Adds 4% to Adds 8% to Adds 8% but more, but cost but you we will share the cost of will split the Will be adding should see get 4% timing cost - net 4% the contract difference to 4% to cost of payback 1 yr discount increase make it 4% contract Same 4% Price Increase Rate In Every Case
Most Favorable Attitude 18.8% Least Favorable Attitude
Most Likely to Renew 15.5% Least Likely to Renew
Most Likely to Stick With 14.4% Least Likely to Stick With
Most Likely to Switch 16.3% Least Likely to Switch
Most Likely to Consider Competitive Offers 7.6% Least Likely to Consider Competitors Offers
Put your customers at risk by challenging them Lowest favorable attitude • Least likely to renew • Least likely to stick • Most likely to switch • Most likely to look at competitive offers • Lowest performer in 5 other areas: • (least credible, lowest confidence, least innovative, least trustworthy, least compelling) • Most unique and unexpected
The picture is compelling. If you introduce an unconsidered need, you actually start making them think more carefully about what they want, and how to get it, so they might be more likely to consider others. That was pretty amazing to me, how it was so clear! Dr. Nick Lee Warwick
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