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.

A Pratical Tip To Validate Your Approach

data science tableau check

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

How was the A/B test « Number Of Product » ? Easy or difficult ?

Here is the result I found.

data science tableau check bar chart

I think you noticed there was something bizarre. There is an anomaly. We imagine that the more the client has products, the more the client is satisfied with the bank so this type of clients should stay in the bank.

In the first 2 bars we can see that a client who has 1 product is more likely to leave the bank than a client who has 2 products. But when a client has 3 or 4 products, we see a huge rate of clients leaving the bank.

Look, there is a little bizarre detail. In the 2nd bar, we can’t see the « Exited » label. This is because there is no place in the orange part to put the text. To make it simpler, we’ll remove the label « Exited ». Drag and drop on the « Exited » text label to the outside.

data science tableau check bar chart

data science tableau check bar chart

Perfect, we can read the percentages. On the 1st bar, we can see that among the client that have 1 products, 28% left the bank. On the 2nd bar, we can see that among clients who have 2 products, 8% left the bank. This show us that clients who have 1 products are more likely to leave the bank than clients with 2 products.

And for the next bars, we observe an anomaly. On the 3rd bar, we can see that among the clients who have 3 products, 83% left the bank. On the 4th bar, we can see that among clients who have 4 products, 100% left the bank. We clearly see that there is a problem and we need to do a deeper analysis to understand what is going on .

As a Data Scientist, we need to explain what happens in bars 3 and 4. Usually when a client has 3 or 4 banking products, that means he/she is satisfied and is loyal to the bank. But in our case, it’s the opposite because there is a high rate of client who left the bank. This is the time to do deeper analysis.

The first thing to analyze is the quality of the data. There is a very big anomaly and it may be because there is something insignificant in our data that disturbs the statistics. For example, it’s possible that when the bank selected these clients in this sample, there were very few clients with 4 products and all those clients with 4 products left the bank. Sometimes chance can create anomalies and you have to play attention to these effects of chance because they don’t seem important but they can create false interpretations.

To start, we will check the number of clients with 4 products.

In « Measure », move « Number Of Records » (which gives the number of observations) on « Label ».

data science tableau check bar chart

data science tableau check bar chart

We observe on the first 2 bars than many clients with 1 or 2 products selected for our sample. For clients with 3 or 4 products, we can see that there were fewer clients selected for our sample.

There are 220 clients with 3 products and 60 clients with 4 products. These small number of clients probably explain why we observe these anomalies.

In this sample of randomly selected clients, there are very few clients with 4 products and they all left the bank. In this situation, we can confirm that it’s a chance. When thing like that happen, you have to be very careful not to make conclusion too fast and make misinterpretations.

The conclusion is that a lot of clients have been selected for category 1 and 2. For category 3 and 4, there have been few clients selected so we can’t do accurate statistics. We need to do deeper analyze for these categories of clients with 3 and 4 products.

Now, let’s put the percentage back on the bar chart. Click on the « Back » button.

.

data science tableau check bar chart

Or do a click and drag of « SUM(Number of Record) » to outside.

data science tableau check bar chart

data science tableau check bar chart

We saw that there is an anomaly and what is interesting to do is to have a comment to remember to do a more in-depth analysis of columns 3 and 4.

Right-click between the bar chart’s title and the bars. Select « Annotate » then « Areas… ».

data science tableau check bar chart

A window appears. In this window, you write « Low observation in last 2 categories » and click on the « OK » button.

data science tableau check bar chart

data science tableau check bar chart

Click on the comment and move it on bars 3 and 4.

data science tableau check bar chart

data science tableau check bar chart

The next time you work on this bar chart, you will see this comment that will remind you to seriously analyze client who have 3 and 4 products.

Validate our approach

It’s time to show you how to validate an approach and how to validate the data. For this we will create a new A/B test.

Duplicate this worksheet with a right-click on the « NumberOfProducts » tab and select « Duplicate ».

data science tableau check bar chart

And rename the tab « Validation ».

data science tableau check bar chart

For this tab, we will erase the comment. Select the comment and press the « Delete » button on your keyboard.

data science tableau check bar chart

data science tableau check bar chart

Everything is ready, the idea is to find a variable that doesn’t affect our results. That is a variable that has no impact on a client’s decision to leave or stay in the bank.

Take for example, the variable « Customer Id ». Client’s identification number has no influence on the client’s decision to stay or leave the bank.

We’ll do an A/B test with the last digit of the « Customer Id » and we’ill check that there is the same clients proportion who leave the bank in the 10 categories of the last digit of the « Customer Id ». The 10 categories are the numbers 0,1,2,3,4,5,6,7,8,9.

Let’s g.To start, we will create the variable that contains the last digit of the « Customer Id ». To have this variable, we will create a « Calculated Field ».

Right-click on « Customer Id », select « Create » and click on « Calculated Field ».

data science tableau check bar chart

data science tableau check bar chart

Name the calculated field « LastDigitOfCustID ». In the text field, we use the « RIGHT » function with « Customer Id » in parenthesis to select the last character of the « Customer Id ». In our case, the last character of the « Customer Id » is the last digit.

Here is the code to write in the text field : Right ({Customer Id},1)

data science tableau check bar chart

data science tableau check bar chart

Oooops, you see there is a small mistake => The calculation contains errors.

There is an error in the formula because « Customer Id » is a number variable and the « RIGHT » function applies to a variable of type « STRING ».

To use the « RIGHT » function, we will convert « Customer Id » into a string. We will use the « STR » function with « Customer Id » in parenthesis.

Here is the code to write in the text field

And click on the « OK » button : Right (STR({Customer Id}),1).

data science tableau check bar chart

Now, you can see that our calculated field « LastDigitOfCustID » is in « Dimensions ».

Click on « LastDigitOfCustID » and move it on top of « NumOfProducts » in « Columns ».

data science tableau check bar chart

data science tableau check bar chart

Now we have a new bar chart and we see that for every last digit of the « Customer Id » there is about the same proportion of clients leaving the bank. All these proportions don’t correspond exactly to the average of 20% but these slight variations aren’t important.

Seeing this uniform distribution allows us to validate our data because these data are homogenous.

Conculsion

Here’s how you can check the homogeneity of your data. You take a variable that has no impact on the fact that a client leaves or stays in the bank. The example we did with the last digit of the « Customer Id » is excellent. We were able to verify that in each of the categories taken by this variable, if there was the same proportion of clients leaving the bank. As is the case, we can validate our data.

Imagine another result. When we do the test with the last digit of the « Customer Id », we observe that for one of the numbers, the rate of clients who left is really higher than the average. This shows us that there is a problem in our data because it indicates an anomaly.

You can find other ways to verify your data by using other « insignificant variables » to see if the distribution is homogeneous. But be careful when you select an « insignificant variable » because there may be traps.

Here is an example. If you create a variable that takes the first letter of the first name, the distribution will not be homogeneous. The reason is simple, there are many more people who have a name that starts with the letter « M » than with the letter « Y ».

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

-Steph

Know How Much Weight To Lift (Part 1)

how much

I read a Nerd Fitness article  and I learned good stuff.

When we’re beginners and we have studied the theory well, the first time we train in a gym, we have this kind of questions :

  • What weight should lift to begin with ?

  • If my program tells me to do 5 sets of 5 reps at 80 % of my 1 rep max, how do I get to know my 1 rep max ?

  • In my program, there isn’t this notion of percentage and 1 rep max, how do I know the weight I have to lift ?

Here are some tips to start your program with the right amount of weight.

Bodyweight

bodyweight exercice

The fist step of your workout is to do bodyweight exercices to learn how to do well the bench press.

This may sound odd but I really advise you to take your time to learn to perform well without weights or with a very light weight. Imagine that you can’t climb stairs normally, What happens when you have to climb stairs with bags of supermarket ? Yes, you’re going to hurt yourself.

Here is how you can learn a movement without barbell, dumbbells and weights :

  • To learn barbell’s movement without barbell, you can take a broom stick or a PVC pipe.

  • To learn dumbbells movement without dumbbells, you can take 2 sections of PVC pipe or 2 bottes of water.

It’s true that it’s not the same sensations that with weights but it allows you to learn a movement without risk to hurting you.

With this method, you can train at home alone. No one looks at you like in a gym so you’re less nervous. What’s cool is that yo can film yourself with your smartphone to compare your videos with tutorial videos that you can find on Youtube of elsewhere.

To learn in depth how to move, I recommend the book Starting Strength .

Once you feel confortable with movements, you go to the next level.

Barbell

barbell

For your first training with the barbell for the bench press, you’ll use the barbell without weights to be comfortable with. As you read in my articles Back To The Source Of Equipment Part 1 et Part 2 , the barbell i’m talking about is the Olympic barbell 20 kg (45 lbs).

If you have difficulty with the Olympic barbell, here are some alternative.

A lighter barbell

Look in your gym if there are lighter barbell like the « women’s bar » 13.6-15.87 kg (30-35 lbs) or the « training bar » 6.8 kg(15 lbs). EZ curl bar isn’t designed for the bench press.

Dumbbells

You can use dumbbells. It’s true that isn’t really the same movement but it will help you to build your strength to be comfortable with the Olympic barbell.

Bodyweight exercices

Continue to do bodyweight exercice as squat, lunges, pull ups, push ups. This will help you to build your strength to be comfortable with the Olympic barbell.

That may be the opposite. For you to use the Olympic barbell without weight is easy. I still advise you to continue your first training with the Olympic barbell without weight. In this way, you can concentrate for each repetition to have the best technique possible. Wait the next session to add weights.

There isn’t ego in a gym. Unfortunately in gyms we often see people lifting very heavy weights with a poor technique and this happens more and more often. I have 2 friends who have dislocated their shoulders with the bench press and now they can no longer develop their chest and their shoulders.

One of these 2 friends showed in front of me who his shoulder dislocates when he do bench press and he regrets a lot of having lift too heavy with a bad technique. Since I’ve seen this, I prefer to lift lighter with a good technique and I advise you to do the same.

If after your first training with the Olympic barbell, you’re still not comfortable with. I recommend you to continue to train with the Olympic barbell without weights until you’re comfortable with. If you need to do this for 10 sessions, do it, there is not problem.

I’ll tell you something, Listen carefully. If you get hurt, it’s not because you body isn’t ready. It’s because you don’t trust in you under the Olympic barbell. Self-confidence is the most important element to lift heavyweights and heavier. It means knowing when you can lift and when you can’t lift. An athlete train his/her body and mind.

If you have planned to use dumbbells as your main lift (like me) and don’t use Olympic barbell, stat with 2.2-4.5 kg (5-10 lbs) dumbbells to work your technique.

Add weights

weight plate

Most beginners workout programs are 5 sets of 5 reps, 3 sets of 8 reps or 3 sets of 10 reps. For this example, we’ll use 5 sets of 5 reps.

Your workout should always begin with a warm-up routine. Then you take the barbell without weights and you do the repetitions number of your program (for our example, it’s 5).

Yeah, yeah, I know. You thought that after the warm-up routine, you could lift heavy but you have not quite prepared your body yet. For each exercice, you need to warm your body with lightweights. It’s very important to do this because it allows your body to warm your nervous system and the muscles needed to make the movement.

For beginners, it’s really important to learn the good technique right away.

Increase gradually

Once your nervous system and your muscles are ready, add between 1.1 kg (2.5 lbs) and 4.5 kg (10 lbs) on each side. Do a set of 5 reps with this weight.

Note : If your strength training is based on dumbbells like me, starts with 2.2 kg (5 lbs) dumbbells, then 4.5 kg (10 lbs) dumbbells for example.

If you can do 5 reps without degrading your technique and without slowing the speed of the barbell, you can add weight. If it’s really light adds 4.5 kg (10 lbs) on each side or less like 2.2 kg (5 lbs).

Continue to do this process until the speed of the barbell or you technique begins to deteriorate. The weight you lifted before your technique deteriorates is the starting weight on which you will base all your future exercises.

The basic weight for your workout

If you thought you could lift more, don’t panic, that’s the right number. You’re not in a gym to impress someone. It doesn’t matter if it’s your first or your 1000th workouts. It’s better to start too light than too heavy. The goal is to do quick reps with a good technique. When your technique deteriorates, you have reached a limit with your body, too much will create an injury.

In this process, you’re trying to lift the heaviest weight you can so use collars for your safety. When it becomes difficult, ask someone to be your spotter to avoid an injury.

This is the end of the Part 1. In the Part 2, I’ll talk about what to do after several workouts, find your 1 rep max and what amount of weight is respectable to lift.

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

-Steph

Online Guarantee

online guarantee

I watched an Olivier Roland’s video  and there is good stuff.

In Europe (yes, I’m living in Europe), the law says that a consumer has 15 days to return a product he bought by mail. Products bought on internet are part of these purchases by mail as digital products, training or softwares.

The law also says that a consumer may waive the guarantee by checking or unchecking a checkbox to receive a product faster. Some companies have a procesure to wait until the guarantee’s period is completed before sending a product to allow time for the consumer to think about if he/she changes his/her mind.

The most interesting guarantee to make is a 30-day guarantee for online training. If you do a 1-year training, you can make a guarantee on results with conditions. If after 1 year, a person doesn’t have expected results despite that person has seriously followed and applied the training’s content by showing evidence, that person may claim the refund.

For the 30-day guarantee, there aren’t conditions. Whatever reasons, a person is systematically refund. It’s true that is interesting to know why a person wants to be refunded but it’s not obligatory.

A guarantee for success

guarantee for success

Yes, it help you to have success because guarantee is a trial period for the entrepreneur and the consumer.

Consumer

Many people are anxious to buy a product on internet, especially if the product is digital. The guarantee make it possible to reassure them.

People who have hesitated to take an online training will continue to hesitate for 30 days but more intelligently. Because the 30-days guarantee are free trial days so they can see how it works, how is the content’s quality, how the community interacts with coaches, how is the track’s quality of each participant, etc. If your product is good, you’ll have more sale than refund.

Entrepreneur

This allows you to filter out annoying consumers. If during the 30 days, you see a consumer who demands weird stuff or complains, criticizes all the time or isn’t polite, you can say it’s better to stop and pay him/her back.

It’s like for a job, the employer sees if the employee corresponds to the workstation and the employee sees if the job is suitable for him/her. This for both side and it’s a good method to avoid having unnecessary problems.

Attention

I don’t advise you to filter consumers when you start your company. You need to accept all consumers to reach your break-event point. Once you have reached a certain threshold of success, you can filter your consumers.

The guarantee is also a legal protection. When consmers aren’t happy, they leave, it’s simple.

Marketing

human behaviour

With marketing, we can see human behavior and there are some surprising things. Here an exemple with a form to receive an eBook. We can have 10 % more conversion when we fill in the first name and email of a person in the form. We can do it only if the person is subscribed to our newsletter but this is show how people are lazy by nature.

Yes, 10 % more only because people just have to press the button « OK » instead to type their first name and email, surprising !

Something else. It’s true that you’re going to have people who will just register to enjoy the 30 days free but reassure you, it’s a very small minority. Most people are honest and if you gave a product that gives value and quality, you’ll have more sale than refund.

It’s easier to use this kind of guarantee with digital product but it’s possible to do it with physical products.

How do you set up this type of guarantee for your product ?

-Steph