{"id":126090,"date":"2021-08-24T15:00:44","date_gmt":"2021-08-24T14:00:44","guid":{"rendered":"https:\/\/www.smartinsights.com\/?p=126090"},"modified":"2021-08-20T15:01:14","modified_gmt":"2021-08-20T14:01:14","slug":"an-introduction-to-neuromarketing","status":"publish","type":"post","link":"https:\/\/www.smartinsights.com\/digital-marketing-strategy\/an-introduction-to-neuromarketing\/","title":{"rendered":"Neuromarketing explained [key concepts and recommendations]"},"content":{"rendered":"<h2>Neuromarketing explained: By applying neuroscience-based principles, you\u2019ll be able to create marketing messaging and visuals that better connect with your target audience<\/h2>\n<p>As the name suggests, neuromarketing means the application of brain-based research to the discipline of marketing in general and digital marketing in particular. It involves the use of functional Magnetic Resonance Imaging (fMRI), the measurement of brain electrical activity, or other technologies used to measure people\u2019s responses to marketing creative, such as copywriting, product descriptions, pricing, packaging, and advertising.<\/p>\n<p>For example, researchers may find that a particular stimulus causes a response in the brains of test subjects that\u2019s correlated with a desired behavior (e.g. the release of a \u2018feel good\u2019 hormone). Obviously, as a marketer, you\u2019d want to know these cause-effect relationships so that you can apply the principles to your creative, and thereby drive improvements to your key conversion metrics.<\/p>\n<p>While <a href=\"https:\/\/www.jneurosci.org\/\" target=\"_blank\" rel=\"noopener\">neuroscience<\/a> has been around for decades, it has only been applied to marketing since the mid-2000s. Here\u2019s how we transitioned from \u2018user-centered\u2019 to \u2018brain-centered\u2019 design.<\/p>\n<h3>From emotional design to neuromarketing explained<\/h3>\n<p>Donald Norman, director of the Design Lab at the University of California, San Diego, in his 2003 book <em>Emotional Design, <\/em>triggered the digital design community to move beyond traditional usability and towards persuasive, motivational design. He described how humans interact with interfaces on three levels: behavioral (interactions), visceral (\u2018gut\u2019 reaction), and reflective (\u2018looking back\u2019 reaction), and how these impressions affect our motivation to interact with brands in a shopping context.<\/p>\n<p>Next, Robert Cialdini shared, in his great book <em>Influence<\/em>, the several psychology-based principles of persuasion, which include things like reciprocation, social proof, liking, and scarcity. Lieberman\u2019s book <em>Social<\/em> took this discussion to the next level by demonstrating how deeply social interactions drive our behavior. Then came writings from neuro-based thought leaders including Jonah Lehrer (<em>How We Decide<\/em>), Dan Ariely (<em>Predictably Irrational<\/em>), Renvoise (<em>Neuromarketing<\/em>) and Martin Lindstrom (<em>Buyology<\/em>). They shared many studies that proved how we humans make most of our decisions based on instinct rather than rationality.<\/p>\n<p>However, it\u2019s the work of Nobel Prize-winning Princeton economist Daniel Kahneman, as documented in his book <em>Thinking Fast and Slow<\/em>, that\u2019s most interesting and actionable to marketers. By bridging psychology and economics, Kahneman\u2019s work systematically integrates these two worlds, and thereby unlocks the secrets to human decision making. Since this framework is \u2018core knowledge\u2019 for a discussion of neuromarketing, allow me to take a brief aside into brain science.<\/p>\n<h3>Our three brain parts<\/h3>\n<p><div id=\"attachment_126091\" style=\"width: 710px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-126091\" class=\"wp-image-126091 size-full\" src=\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/10\/si_neuro_article_brain_parts1.png\" alt=\"Neuromarketing explained\" width=\"700\" height=\"369\" srcset=\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/10\/si_neuro_article_brain_parts1.png 700w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/10\/si_neuro_article_brain_parts1-150x79.png 150w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/10\/si_neuro_article_brain_parts1-550x290.png 550w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/10\/si_neuro_article_brain_parts1-250x132.png 250w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><p id=\"caption-attachment-126091\" class=\"wp-caption-text\">[Image source: 'Decoded. The Science Behind Why We Buy' by Phil Barden (2013. London. Wiley)]<\/p><\/div>As shown above, our brains have three main parts, which are:<\/p>\n<ul>\n<li><strong>Our instinctive brain<\/strong>, also known as the \u2018old brain\u2019<\/li>\n<li><strong>Our feeling brain<\/strong>, also known as the \u2018mid-brain\u2019<\/li>\n<li><strong>Our evolved brain<\/strong>, also known as the \u2018new brain\u2019, or \u2018neo-cortex\u2019<\/li>\n<\/ul>\n<p>Our instinctive brain makes decisions instantly based on the four Fs: fight, flight, food or f*&amp;k; these instincts are directly tied to our pleasure and survival. This area of the brain also regulates our automatic physiological functions like breathing and heartbeats.<\/p>\n<p>Our feeling brain, mainly comprised of the amygdala and the hippocampus, serve as a \u2018traffic cop\u2019 between the old and new brain parts. Having evolved thousands of years ago, this region efficiently makes \u2018snap\u2019 decisions based on the hundreds of things we see and experience every day.<\/p>\n<p>Our evolved brain is the \u2018thinking\u2019 part \u2013 it\u2019s where our higher reasoning lives. If you\u2019re doing the math to see if you can afford that new home, or reading this article, you\u2019re using synapses and cells in this more highly evolved region.<\/p>\n<h3><span lang=\"EN\">Our two thinking systems<\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-126092 size-full\" src=\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/10\/si_neuro_article_kahneman_framework1.png\" alt=\"Neuromarketing explained\" width=\"700\" height=\"438\" srcset=\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/10\/si_neuro_article_kahneman_framework1.png 700w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/10\/si_neuro_article_kahneman_framework1-150x94.png 150w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/10\/si_neuro_article_kahneman_framework1-550x344.png 550w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/10\/si_neuro_article_kahneman_framework1-250x156.png 250w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/p>\n<p>The core of Kahneman\u2019s framework is the distinction between two systems of mental processes that drive our decisions and behavior. He calls these two systems \u2018System 1\u2019 and \u2018System 2\u2019.<\/p>\n<p>System 1 integrates perception and intuition. It\u2019s always running \u2018in the background\u2019 of our brains. It\u2019s super-fast, processes information in parallel is associative and slow learning. It was made for <em>fast, automatic, intuitive actions without thinking<\/em>. The most highly-skilled mental activities are based on System 1, such as a cardiologist interpreting an echocardiogram trace.<\/p>\n<p>In contrast, System 2 is slow, works methodically and logically, and takes a lot of energy because it requires more effort. But this system allows us to make well-thought-out, deliberate decisions. It\u2019s made for rational thinking.<\/p>\n<p>The implication for you as a digital marketer is: by communicating in a way that evokes faster and intuitive System 1 responses, your designs and messaging can bypass your prospect\u2019s slower and more judgmental System 2 thinking. This will enable you to drive more \u2018impulse\u2019 purchases which will, in turn, raise your top metrics<em> revenue per visitor (RPV), average order value (AOV) and profit margins<\/em>.<\/p>\n<h3>Looking for new marketing strategy solutions?<\/h3>\n<p><span style=\"font-weight: 400;\">If you're looking to optimize your marketing strategy, integrate your digital activities, or just need some help prioritizing next steps to grow your business, why not book a free 1-2-1 Smart Insights consultation call? During your no-obligations check-in with a member of the customer team, you'll get to grips with some useful marketing tools templates proven to generate growth, and discuss your next steps.<\/span><\/p>\n<p><a href=\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2021\/02\/E-commerce-growth-customer-lifecycle.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-158911 size-full\" src=\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2021\/02\/E-commerce-growth-customer-lifecycle.png\" alt=\"marketing lifecycle\" width=\"1224\" height=\"680\" srcset=\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2021\/02\/E-commerce-growth-customer-lifecycle.png 1224w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2021\/02\/E-commerce-growth-customer-lifecycle-550x306.png 550w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2021\/02\/E-commerce-growth-customer-lifecycle-700x389.png 700w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2021\/02\/E-commerce-growth-customer-lifecycle-150x83.png 150w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2021\/02\/E-commerce-growth-customer-lifecycle-768x427.png 768w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2021\/02\/E-commerce-growth-customer-lifecycle-250x139.png 250w\" sizes=\"(max-width: 1224px) 100vw, 1224px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Our consultation calls are designed to put you in the driver's seat and talk through your opportunities using the RACE Framework, so you can make an informed decision about the best strategy for your business. Book your call to find out more.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><div class=\"monthly_campaign_blog_cta_banner monthly_campaign_blog_cta_banner_160114\" style=\"background-image:url(https:\/\/www.smartinsights.com\/wp-content\/uploads\/2020\/07\/Build-x2.png);\"><div class=\"monthly_campaign_blog_cta_banner_main_content\"><h3>Need a winning marketing strategy?<\/h3><p>Book your free 1-2-1 consultation to develop your new strategy with the RACE Framework<\/p><a target=\"_blank\" class=\"but_2019 section_cta yellow\" href=\"https:\/\/www.smartinsights.com\/membership\/business-membership-benefits\/#enquiry-form\" onclick=\"ga('send', 'event', 'May 2021 Book enquiry blog banner', 'Clicked', 'Get Started Today', 1);\">Book consultation<\/a><\/div><img decoding=\"async\" class=\"monthly_campaign_blog_cta_banner_img\" src=\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2020\/07\/Build-x2.png\" alt=\"Grow your business and professional marketing skills\"><\/div><\/span><\/p>\n<h3>Three key hormones<\/h3>\n<p>Three hormones in your visitors\u2019 brains most determine the sales effectiveness of your e-commerce website: dopamine, cortisol, and oxytocin.<\/p>\n<p><strong>Dopamine<\/strong> is the neurotransmitter often called the \u2018reward chemical\u2019. It\u2019s tied to addiction \u2013 it makes us feel good. Researchers have recently found that instead of causing you to experience pleasure, dopamine actually causes you to <em>want, desire, seek out and search<\/em>.<\/p>\n<p>It is the <em>opioid system<\/em>, more than the dopamine system, that is involved in feelings of pleasure. The wanting (dopamine) and liking (opioid) go together: the wanting propels you to action, and the liking makes you feel satisfied (makes you pause your seeking).<\/p>\n<p>Often called the \u2018stress chemical\u2019, <strong>cortisol<\/strong> is used to regulate blood sugar, the immune system, and metabolism. As cortisol goes up, trust goes down. Therefore, your online experiences need to lower cortisol levels by lessening stress. A live chat prompt that asks, \u2018Have any questions or concerns that are preventing you from completing your order?\u2019 is an example of how to do this.<\/p>\n<p><strong>Oxytocin<\/strong> is a \u2018trust chemical\u2019 triggered when high levels of social connection, empathy, and trust exist. Research has found that using a trustworthy communication accelerates the customer\u2019s ability to understand what you\u2019re saying, and it penetrates the emotional parts of the brain (the amygdala first, then other regions). Since your prospects need to trust you before they will buy from you, your marketing creative must trigger the release of this hormone.<\/p>\n<p>Now that you\u2019re armed with the neuro fundamentals, let\u2019s have a look at an example of how you can apply neuromarketing to your marketing efforts:<\/p>\n<h3>Fewer choices sell better<\/h3>\n<p>Are more choices better? Contrary to what you might think, they most often aren\u2019t. Most us know from first-hand experience, whether we\u2019re shopping in the real world or online, how we can get overwhelmed with too many choices. We feel anxious, maybe even \u2018freeze\u2019, and we feel relieved when we see that smiling sales consultant coming over to help.<\/p>\n<p>Sheena Iyengar, in her book <em>The Art of Choosing<\/em> (2010), details research on choice in what is now known as the \u2018jam study\u2019. Researchers set up booths at a busy upscale grocery store and posed as store employees. They alternated the selection of fruit jams on the table; half the time they offered <em>six choices of jam<\/em> for people to try, and the other half of the time they offered <em>twenty-four choices of jam<\/em>.<\/p>\n<p>The finding: when there were twenty-four jams offered, 60% of the people coming would stop and taste. When there were six jars, only 40% of the people would stop and taste. But here\u2019s the most interesting result: <em>31% of the people who stopped at the six-jar table actually made a purchase<\/em>, compared to <em>only 3% of the people who stopped at the twenty-four jar table<\/em>. Thus, the fewer choices presentation had <em>10 times the conversion rate<\/em>.<\/p>\n<p>If \u2018less is more\u2019 in a shopping context, why do people seem to prefer more choices? It\u2019s part of that dopamine effect. Information is addictive, so we tend to continually seek more of it. However, just because people want to consume the information, it doesn\u2019t mean they want to act, and it\u2019s action that matters most to you as a digital marketer.<\/p>\n<h3>Marketing implications of neuromarketing explained<\/h3>\n<p>You might have a vast product catalog, which is great as you can offer more solutions to more segments of your prospective customers, but that doesn\u2019t mean you need to show all of these products.<\/p>\n<p>In order to prevent decision overload, use these tactics:<\/p>\n<ul>\n<li>Include a \u2019filter\u2019 option on your category pages so your visitors can quickly narrow down their choices. Make it visually prominent so it won\u2019t be glossed over.<\/li>\n<li>Offer recommended products and bundles. These make finding and choosing a solution \u2013 not just individual products \u2013 much faster and easier.<\/li>\n<li>Offer a \u2018product finder\u2019 tool (also known as a \u2018user experience wizard\u2019) on applicable landing and category pages when you have a large selection of products.<\/li>\n<li>Create landing pages tailored to more specific Internet search queries, which take these visitors to more specific and higher-converting sales and lead-generation pages.<\/li>\n<\/ul>\n<h3>Example:<\/h3>\n<h4>Seller of surveillance products<\/h4>\n<p>SpyTec, a seller of surveillance products, offers product finders in the main pages for each of its top product categories. Here\u2019s an example of the finder entry point for the \u2018dash cameras\u2019 category.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-126093\" src=\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/10\/si_neuro_article_dashcams_finder1.png\" alt=\"\" width=\"700\" height=\"526\" srcset=\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/10\/si_neuro_article_dashcams_finder1.png 700w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/10\/si_neuro_article_dashcams_finder1-150x113.png 150w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/10\/si_neuro_article_dashcams_finder1-550x413.png 550w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/10\/si_neuro_article_dashcams_finder1-250x188.png 250w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/p>\n<p>Clicking the \u2018Get Started Now\u2019 button takes the visitor to the first of three questions asked to clarify their needs.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-126094\" src=\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/10\/si_neuro_article_dashcams_finder2.png\" alt=\"\" width=\"700\" height=\"386\" srcset=\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/10\/si_neuro_article_dashcams_finder2.png 700w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/10\/si_neuro_article_dashcams_finder2-150x83.png 150w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/10\/si_neuro_article_dashcams_finder2-550x303.png 550w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/10\/si_neuro_article_dashcams_finder2-250x138.png 250w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/p>\n<p>Based on the answers given, the website then recommends two product bundles \u2013 one premium and one standard \u2013 and both perfectly tailored to the visitor\u2019s need.<\/p>\n<p>This is a great example of \u2018solution selling\u2019. Not only does it increase conversions, but it humanizes the experience and respects the visitor\u2019s time, both of which leave the customer with a positive brand impression (the \u2018reflective\u2019 part Donald Norman talked about).<\/p>\n<p><span style=\"font-weight: 400;\">Our RACE Framework is a popular marketing structure framework for Startups, SMEs, and international corporations, since it can scale up or down according to your short-term and long-term objectives. <\/span><\/p>\n<p><a href=\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2020\/12\/RACE-icon-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-158443 size-full\" src=\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2020\/12\/RACE-icon-1.png\" alt=\"Omnichannel Marketing funnel\" width=\"1000\" height=\"600\" srcset=\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2020\/12\/RACE-icon-1.png 1000w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2020\/12\/RACE-icon-1-550x330.png 550w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2020\/12\/RACE-icon-1-700x420.png 700w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2020\/12\/RACE-icon-1-150x90.png 150w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2020\/12\/RACE-icon-1-768x461.png 768w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2020\/12\/RACE-icon-1-250x150.png 250w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">S<\/span><span style=\"font-weight: 400;\">imply put, RACE guides marketers through a 5-step process of plan, reach, act, convert, and engage, to acquire and retain more customers, using customer insights and expert recommendations tailored to you and your marketing strategy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Book your free 1-2-1 consultation call today to discuss the challenges and opportunities in your marketing strategy using the RACE Framework. <div class=\"monthly_campaign_blog_cta_banner monthly_campaign_blog_cta_banner_160114\" style=\"background-image:url(https:\/\/www.smartinsights.com\/wp-content\/uploads\/2020\/07\/Build-x2.png);\"><div class=\"monthly_campaign_blog_cta_banner_main_content\"><h3>Need a winning marketing strategy?<\/h3><p>Book your free 1-2-1 consultation to develop your new strategy with the RACE Framework<\/p><a target=\"_blank\" class=\"but_2019 section_cta yellow\" href=\"https:\/\/www.smartinsights.com\/membership\/business-membership-benefits\/#enquiry-form\" onclick=\"ga('send', 'event', 'May 2021 Book enquiry blog banner', 'Clicked', 'Get Started Today', 1);\">Book consultation<\/a><\/div><img decoding=\"async\" class=\"monthly_campaign_blog_cta_banner_img\" src=\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2020\/07\/Build-x2.png\" alt=\"Grow your business and professional marketing skills\"><\/div><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Neuromarketing explained: By applying neuroscience-based principles, you\u2019ll be able to create marketing messaging and visuals that better connect with your target audience As the name suggests, neuromarketing means the application of brain-based research to the discipline of marketing in general &hellip;..<\/p>\n","protected":false},"author":330233,"featured_media":126091,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_glsr_average":0,"_glsr_ranking":0,"_glsr_reviews":0,"footnotes":""},"categories":[29],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.8 - 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