Understand This Human Behavior To Boost Sales

human behavior

What’s up ? This is THE stephane ANDRE !!! I watched an Olivier Roland’s video  and I learned some good stuff.

There is human bias that needs to get around to get your company up to the next level. What’s interesting with marketing is that it exposes human behavior. Marketing allows us to understand good and bad human behavior

Lazy

This one of the most common human misbehavior. Take the example of a registration page for online training. There are 200 prospects interested in this training who gave you their emails to know the start date.

You divide the prospects into 2 groups, group A and B. For group A (100 prospects), you ask them to write their first names and emails and click on the OK button in the form to register. For group B (100 prospects), their first names and emails are already pre-filled in the form, just check the information and click on the OK button. In group B, there will be about 10% more registration compared to group A.

Which means that in group A, there are about 10% of prospects who don’t have enough energy or motivaton to write their first names and emails in the form.

Honest

honesty

This is one of the most common good human behaviors. Take the example of a guarantee of 30 days without conditions satisfied or refunded. Technically, there are plenty of people who could benefit from this guarantee by saying : « I’ll use this product for 29 days and I’ll ask for a refund ». Of course, there are people who do that, but it’s always surprising to see that it’s a small minority. It’s something nice to see.

Psychology

Unfortunately, there are limits in honesty and it’s necessary to understand some human bias to have a good company. Otherwise your company is in jeopardy.

In a detective tv show, there is a perone who is looking for the best detective for his problem. The hero of this tv show is a detective.

The person sees the hero and says : « I did some research and you’re the best in your field ».

The tell him : « You did some research, but what exactly did you do ? ».

The person answers : « It’s simple, I went to see all your competitors, I asked them who was the best detective and they all said it was them. Then I asked them who was the best second detective after them and they said it was you, that’s why I realized you were the best ».

Did you see the human bias in this example ? When you ask a pro who is the best, he’ll answer you : « Me ! ». The pro does this because he wants to sell, he has his personal pride and maybe he really believes he’s the number 1 compared to others.

Which shows that it’s difficult to have the most objective answer possible with this question. By understanding this human bias, you can use a question that gets around that. This question is : « Okay, it’s obvious you’re the best but who’s second best after you ? ». In the majority of cases, the answer is objective.

Price

price

Let’s take another example. An entrepreneur conducts a survey with his prospects to determine the selling price of a product. The question is : « What is the price you would pay to buy this product ? ». If you ask your prospects how they want to help them, they’ll be honest but when you talk about the selling price, it become complicated. When you ask the question about the selling price, they will always tell you a lower price compared to the price they could pay.

There are 2 reasons :

  1. When a person ansers this question, she thinks : « If I tell him I’m willing to pay 100 dollars, he’ll sell it to me at $100. So, I’ll tell him $50 like that it will be cheaper ». It’s a behavior that all human beings do (me and you included).

  2. There are people who don’t know how much they would be willing to pay because they can’t see the product. When they see the product and see what it can improve in their life, they’ll decide whether to buy it or not.

To solve the problem of the 1st reason, ask the question this way : « As you’re one of the people who helped me to create this product, you’ll have a special price, but what do you think the price is that the rest of the world should pay ? ». With this question, the prospect knows that he is going to have a special price so he can give a more objective answer.

To solve the problem of the 2nd reason, there is only one way. It’s showing the product to prospects.

When you do a survey to prospects for the sale price, it’s very important that prospects understand that they’re going to have a special price. Ask the questions : « What price would you pay to buy this product ? » and «  As you’re one of the people who helped me to create this product, you’ll have a special price. But what do you think the price is that the rest of the world should pay ». You will be surprised by the different answers you will have. Test it !

Obviously, it’s not only with this question that you will determine your selling price, it will be just a clue. It’s very useful to understand human psychology otherwise you risk choosing a selling price really too low that should be and earn really less money.

Subscribe to my newsletter and share this article if you think it can help someone you know. Thank you.

-Steph

P.S. If you’re in Miami and you like Caribbean food, go to my cousin’s bistro to eat Haitian food, click here.

Data Science Domains

matrix

I have just enrolled in a Data Science course on Udemy and I learned good stuff.

In Science, there are several domains. In Data Science, it’s the same.

data science domain

Data Science is composed of 3 fields : computer science, math and statistics and domain knowledge. But for some years, this changed a bit. Data Scientists need to have other skills than programming and statistics.

Look at this new diagram :

data science domain

Let’s look at these skills in detail.

Statistics

Data is the basis of the Data Scientists so they must be able to filter the data to have relevant data that will provide them with insights. This allow Data Scientist to build models to classify the population and make reliable forecasts of future events.

Visualization

Do you know the computers langage ? Do you know bytecode like « 00100010100101010110 » ? No and it’s the same for me. It’s for this reason that Data Scientists must have the ability to see through the data and especially show them to others. This is why visualization is an important skill to show the data.

Data Mining

This is the part of the work where the Data Scientist has to make the detective like Sherlock Holmes. It’s in this phase that we must look in the data for insights and abnormalities.

Database and Data process

It’s simple, the Data Scientist cleans the data, stores and processes the data in the database.

Pattern recognition, Machine learning et Neurocomputing

These 3 disciplines help explain to computers how to learn do to a specific task on its own. There are not things I’ll learn but these are interesting disciplines for some business problems.

In our world where competition is increasingly aggressive, technical skills are no longer enough. Here are other skills that Data Scientist need to have.

Communication

communication

Data Scientists need to interact with people everyday. They have to do that because the insights are not just in the data. There are insights that we can only find by talking to people. That’s why it’s important to not afraid to talk to people to ask them questions on a daily basis.

Presentation

This is another type of communication . In this case the Data Scientist doesn’t try to extract information but to explain what he/she found to the people. This is a very important skill because the Data Scientist is the intermediary between insights and people. It’s a bit the data translator, it’s simply explain the content of data.

Domain knowledge

Data Science can be used in any industry. One day you can do research to find fraudulent transactions and another day you can build a compensation model for employees of a medical establishment.

That is why, in what industry you work, you must do research and know quickly the necessary part of the industry. The rest will come naturally. Quickly learn the basics of the industry where you work.

Practice in real situations

Proverb : « It’s by forging that one you become a blacksmith » says everything. This concept is extremely applicable in Data Science.

Programmation

The 2nd basic domain of Data Scientists. The better you talk to your computer and the more efficient you are, the more successful you will be. If you don’t know how to program, learn this from today. Programming has to become a hobby, something you like to do.

Creativity

This is what make the difference between Data Scientist and Data Analysts. To become an excellent Data Scientist, you need to work your creativity. Be curious and you will find insights that nobody would never have found.

Now you know the skills needed to become an excellent Data Scientist. As you see I have a lot to do.

Share this article if you think it can help someone you know. Thank you.

-Steph