Human Behavior Hacks Every Financial Services Marketer Should Know
Written by: Danielle Stitt
Email. The cornerstone of any financial services marketer’s kit bag. Not the shiny object it once was after Digital Equipment Corp marketing manager Gary Thuerk sent the first “mass” email in 1978.
However, a quick look at Google Trends and the term “email marketing” has stood the test of time, showing steady interest over the last five years while other marketing channels have ebbed and flowed.
So, if you are going to use email in your marketing mix in 2017, then let’s make sure it’s as effective as possible.
One of the presenters at Inbound16 was Nancy Harhut, who’s won over 150 awards for direct marketing effectiveness (with creds like that she got my attention!), presenting “10 Human Behavior Hacks that Will Change the Way You Create Email”.
Here’s what I learnt.
We all use decision making shortcuts as a way to conserve energy and speed through our waking day. Marketers can use this to our advantage by leveraging the following human behavior hacks to improve the chances your readers notice, open and act upon your email communications.
Tip 1: Magic words in subject lines
A boring subject line is not going to perform as well as a subject line that compels you to click through, right? However, the finance sector is not an industry that can indulge in blatant click-bait subject lines. This is where “magic” words or “eye magnet” words are your friend.
- NEW – one of the top 5 most persuasive words (synonyms also include now, introducing, discover, announcing etc.). It appeals to the human brain’s need for novelty, news and newness
- FREE – spam filters can catch this so test but Nancy posited the use of FREE can lift open rates by 10%
- RECIPENT’S NAME – apparently we all like the look of our own name and Nancy has seen open rates increase by 29% when the recipient’s name was included in the subject line
- SECRET – making your readers feel they have information that isn’t widely available saw open rates increase 11% (think “confessions of” too) but check with Compliance first!
- ALERT – humans are hard wired to look out for danger… and breaking news… and could lift your open rates by 33% according to Nancy
We also have to remember that a lot of email is read on mobile so word length is important - think 35 words or less, and front-loading your “eye magnet” words to avoid them being truncated.
Tip 2: Position your message for a fast response
Humans respond to two action-inducing principals: scarcity and exclusivity. We hate to miss out (we didn’t call our newsletter FOMO Friday for nothing!). If your reader feels time-pressed or special, they are more likely to respond. This is where Nancy saw a 17% increase in click-through rates from the inclusion of a countdown clock.
Tip 3: Ripple effect of the scarcity principal
Garnering the first “yes” is the hardest but once your reader has taken that first positive action, it’s easier to encourage them to say “yes” again. The trick to activating the first yes is to make it a small ask. Subsequent yeses are made easier if the first “yes” was public (for instance on social – see Tip 4) and if you remind them they said yes before. You can ask for larger commitments as you go.
Tip 4: The benefit of social proof
Decision makers, both personally and professionally, look to social proof prior to making a purchase decision. We trust the opinions of others, particularly if they’re like us. If you can show your reader how others like them have taken up your offer, they are more likely to make a purchase decision.
Tip 5: Negativity can deliver positive results
People are twice as motivated to avoid pain as they are to achieve gain. This is why cash investments paying almost zero interest are so popular after major economic downturns or times of uncertainty. By highlighting the potential pain, e.g. “Don’t let inflation destroy your investment returns”, they open themselves to a solution that helps them avoid a negative outcome.
Tip 6: Availability bias turns doubters into buyers
We use our past experiences and memories to decide the likelihood of an event occurring. For example, if your client had a bad experience when dealing with your customer service team, they are expecting they’ll have a similar experience next time. To use this to your advantage, stir your readers’ memories or imaginations before you ask them for a response.
Tip 7: The authority principle to make you look better than your competition
Children are taught to respect and respond to authority from the get-go ensuring by adulthood this is well ingrained, making us hard-wired to listen and follow anyone that presents authority. In business, we position brands and spokespeople as leading experts through commentary in the media, releasing research reports, securing ratings and so on. We’re all familiar with the term thought leader, I expect. And your clients respond to hearing from the leading expert.
Tip 8: The power of “because”
This is one of my favourite tips. Nancy referred to psychologist Ellen Langer’s experiment where an office worker jumped the photocopier queue. When the worker asked if they could go ahead of the person in front, the probability of the person agreeing was increased from 60% to 94% if they used the word “because”. It didn’t matter what the reason was, “… because I’m in a hurry” was about as successful as “… because I have to make some copies”. Perhaps try that in the coffee queue tomorrow!
Tip 9: The journalists’ secret that boosts readership
The information gap theory is that humans will act to close the gap between what we know and what we want to know. Journalists are taught to answer the 5 Ws + the 1 H i.e. who, what, when, why, where + how to ensure their article leaves no question unanswered. And marketers can encourage action by highlighting an information gap with subject lines like “How to boost your savings”, “Why under-insurance can leave you stranded” or “When using a fund manager makes sense”.
It’s also worth noting that numbers stand out in a sea of words because they promise ease and order. And if including numbers in your subject line, Outbrain’s study of 150,000 article headlines found that odd numbers are perceived as more credible than even numbers. The exception is 10 and its multiples which also work because they are cognitively fluent.
Tip 10: The Von Restorff Effect
In 1933 Hedwig von Restorff’s experiments on memory found that if you want people to notice, make it distinctive. For marketers, Nancy recommended piggybacking on holidays and celebrations, customer birthdays, and anniversaries. People notice and remember things that standout and special days clearly fit into that category. E-commerce and retailers have mastered this with sales around the end of financial year, Boxing Day, Black Friday, Easter etc etc.
However, the major holidays or events can be crowded from a marketing message point of view so Nancy suggested leveraging minor holidays or even inventing your own celebration/ remembrance day which works too (I’ve scheduled in World Compliment Day on 1 March, have you?!).
China's Push Toward Excellence Delivers a Global Robotics Investment Opportunity
Written by: Jeremie Capron
China is on a mission to change its reputation from a manufacturer of cheap, mass-produced goods to a world leader in high quality manufacturing. If that surprises you, you’re not the only one.
For decades, China has been synonymous with the word cheap. But times are changing, and much of that change is reliant on the adoption of robotics, automation, and artificial intelligence, or RAAI (pronounced “ray”). For investors, this shift is driving a major opportunity to capture growth and returns rooted in China’s rapidly increasing demand for RAAI technologies.
You may have heard of ‘Made in China 2025,’ the strategy announced in 2015 by the central government aimed at remaking its industrial sector into a global leader in high-technology products and advanced manufacturing techniques. Unlike some public relations announcements, this one is much more than just a marketing tagline. Heavily subsidized by the Chinese government, the program is focused on generating major investments in automated manufacturing processes, also referred to as Industry 4.0 technologies, in an effort to drive a massive transformation across every sector of manufacturing. The program aims to overhaul the infrastructure of China’s manufacturing industry by not only driving down costs, but also—and perhaps most importantly—by improving the quality of everything it manufactures, from textiles to automobiles to electronic components.
Already, China has become what is arguably the most exciting robotics market in the world. The numbers speak for themselves. In 2016 alone, more than 87,000 robots were sold in the country, representing a year-over-year increase of 27%, according to the International Federation of Robotics. Last month’s World Robot Conference 2017 in Beijing brought together nearly 300 artificial intelligence (AI) specialists and representatives of over 150 robotics enterprises, making it one of the world’s largest robotics-focused conference in the world to date. That’s quite a transition for a country that wasn’t even on the map in the area of robotics only a decade ago.
As impressive as that may be, what’s even more exciting for anyone with an eye on the robotics industry is the fact that this growth represents only a tiny fraction of the potential for robotics penetration across China’s manufacturing facilities—and for investors in the companies that are delivering or are poised to deliver on the promise of RAAI-driven manufacturing advancements.
Despite its commitment to leverage the power of robotics, automation and AI to meet its aggressive ‘Made in China 2025’ goals, at the moment China has only 1 robot in place for every 250 manufacturing workers. Compare that to countries like Germany and Japan, where manufacturers utilize an average of one robot for every 30 human workers. Even if China were simply trying to catch up to other countries’ use of robotics, those numbers would signal immense near-term growth. But China is on a mission to do much more than achieve the status quo. The result? According to a recent report by the International Federation of Robotics (IFR), in 2019 as much as 40% of the worldwide market volume of industrial robots could be sold in China alone.
To understand how the country can support such grand growth, just take a look at where and why robotics is being applied today. While the automotive sector has historically been the largest buyer of robots, China’s strategy reaches far and wide to include a wide variety of future-oriented manufacturing processes and industries.
Electronics is a key example. In fact, the electrical and electronics industry surpassed the automotive industry as the top buyer of robotics in 2016, with sales up 75% to almost 30,000 units. Assemblers such as Foxconn rely on thousands of workers to assemble today’s new iPhones. Until recently, the assembly of these highly delicate components required a level of human dexterity that robots simply could not match, as well as human vision to help ensure accuracy and quality. But recent advancements in robotics are changing all that. Industrial robots already have the ability to handle many of the miniature components in today’s smart phones. Very soon, these robots are expected to have the skills to bolster the human workforce, significantly increasing manufacturing capacity. Newer, more dexterous industrial robots are expected to significantly reduce human error during the assembly process of even the most fragile components, including the recently announced OLED (organic light-emitting diode) screens that Samsung and Apple introduced on their latest mobile devices including the iPhone X. Advancements in computer vision are transforming how critical quality checks are performed on these and many other electronic devices. All of these innovations are coming together at just the right time for a country that is striving to create the world’s most advanced manufacturing climate.
Clearly, China’s trajectory in the area of RAAI is in hyper drive. For investors who are seeking a tool to leverage this opportunity in an intelligent and perhaps unexpected way, the ROBO Global Robotics & Automation Index may help. The ROBO Index already offers a vast exposure to China’s potential growth due to the depth and breadth of the robotics and automation supply chain. As China continues to improve its manufacturing processes to meet its 2025 initiative, every supplier across China’s far-reaching supply chains will benefit. Wherever they are located, suppliers of RAAI-related components—reduction gears, sensors, linear motion systems, controllers, and so much more—are bracing for spikes in demand as China pushes to turn its dream into a reality.
Today, around 13% of the revenues generated by the ROBO Global Index members are driven by China’s investments in robotics and automation. Tomorrow? It’s hard to say. But one thing is for certain: China’s commitment to improving the quality and cost-efficiency of its manufacturing facilities is showing no signs of slowing down—and its reliance on robotics, automation, and artificial intelligence is vital to its success.
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