Emotion Recognition Technology in Marketing

If you think responsive design was a game changer, think again. Recognizing the screen size of a device and adapting to that resolution is a pretty awesome feature that has pretty much been an industry standard now. What if your website could recognize the emotional reactions of a user and be responsive to that as well?

In a previous post I talked about the power of senses and how they help forge emotional associations with a brand or a product. Now imagine if you could identify these emotions and adapt your messaging accordingly. Live, real time, on the spot!

No, this is not from a science fiction movie. It is quite real and it is happening. It will probably be a few years until it is a reality but there has been a mountain of investment behind emotion recognition technology lately.

Power of Emotions in Marketing

The most successful and widely acclaimed marketing campaigns are always the ones that manage to make an emotional connection with their audience. Think Dove’s ‘Real Beauty’ campaign, Apple’s ‘Think Different’ campaign or Kleenex’s ‘Unlikely Best Friends’ campaign. They all have elements that appeal to different emotions and create really powerful, long lasting connections with the brand.

If you are thinking ‘the purpose of marketing (or being in business for that matter) is not to create emotional connections but to increase revenues’, there is a Nielsen study that was conducted in 2015, which revealed that ads with the highest emotional response resulted in over 20% increase in sales.

The greatest thing about emotional marketing is the longevity of its results. Emotions are extremely powerful. In fact, they are the main drivers of most human behaviour including purchasing decisions. So you can imagine how long lasting the results would be for a business that manages to create positive emotional associations with its customers.

Given the power of emotions, it is not a big surprise that emotion recognition technology is a hot topic in marketing these days. According to Markets and Markets, emotion detection and recognition market is estimated to be worth $22 billion USD by the year 2020.

Of course we cannot talk about cutting edge technology without mentioning Apple. The company has been very interested in emotion detection technology and even acquired an emotion recognition company earlier in 2016.

How Does Emotion Detection Work?

The idea is to catalogue hundreds of thousands of facial images and expressions on a daily basis to create a library, based on which a computer can recognize the changes on somebody’s face and understand their mood instantly.

And that will not be the extent of that either. Thinking about the rise of wearable technology in the last couple of years, collecting emotional data becomes even easier and more real-time. Your mobile devices and computers can only collect data when you are actively using them. But wearables are always connected to us. They are constantly measuring signs like heartbeat and breathing patterns. As the technology for these devices advances and they become more capable of tracking signs such as temperature, blood pressure and other vital functions, emotion detection will be even easier and more precise.

What Does This All Mean For Marketing?

When implemented fully, emotion recognition will be nothing short of a revolution in the world of marketing. The trend in the last 5 years has been towards more and more personalized content whenever and wherever possible. Emotion recognition will only make this easier for marketers and allow them to calibrate marketing efforts mid-stream. Every individual will experience a brand differently based on his or her reactions.

The flip side to this phenomenon is the fact that users will never know if they are seeing “the real” content. When everything is being adjusted to one’s current emotional state in real time, the transparency between a brand and its prospects could diminish dramatically. As much as personalized content makes us consumers feel special, we do not want to feel that we are being sold. There is a fine line between a genuine interaction and a sales pitch that only tells the prospect what he/she wants to hear and brands that know how to walk this line will come out as winners in this new era.

Devil is In the Details

I am not a professional copywriter by any means, but I do appreciate well-written content when I see it. Even as a reader it gives me quite a bit of satisfaction to read good copy, I can only imagine the gratification that the writer gets from a beautifully crafted message.

As a marketer, I have always been told about the importance of copywriting and how even the smallest of details in a message can change people’s perceptions. Intellectually, I know how critical it is but I still get surprised when I come across research data that shows the result of minor copy tweaks in metrics such as sales revenue.

Every penny helps

Dr. Robert Cialdini is a Professor of Psychology at Arizona State University and the writer of New York Times Business Bestseller Influence: The Psychology of Persuasion. He has done extensive research in consumer psychology and behavioural analysis. In one of research studies, he examined the donation process of the American Cancer Society and how a minute change in copy resulted in drastically different outcomes. The researchers used two different phrases for door-to-door donation requests to see if the variation will make a difference the amount of donation received.

Phrase 1: Would you be willing to help by giving a donation?
Phrase 2: Would you be willing to help by giving a donation? Every penny will help.

As you can see, we are looking at a very subtle difference between the two messages. The results, however, are not so subtle!

People who were asked the second phrase were almost twice as likely to donate than people who were given phrase 1! 28% vs 50% to be exact.

Just by reframing the concept of helping in a way that communicates the importance of even a penny, the message was able to make a connection with people who would otherwise think they would be expected to pay lots of money to actually contribute to the cause. And the interesting thing is amount of money they donated did not diminish. Knowing that “even a penny” helped still catalyzed them to give as much as respondents to the first phrase gave.

How Uber outsmarted Lyft by 1.25x

As you may or may not know, Uber and Lyft are both transportation network companies that offer peer-to-peer ridesharing services to customers. They are extremely popular alternatives to traditional taxis, especially among millennials who like to do everything via apps. Although Vancouver prides itself as being the tech hub of Canada, we are deprived of great technologies like these, but I promise you they are real and they are actually incredibly useful.

One of the things with both of these services is the surcharges that apply in busy times such as Friday after work. In high demand times like this, the riders are charged an additional fee that is applied towards a tip to the driver.

Let’s be honest, nobody likes to pay extra so there is no sugarcoating it. There are, however, different ways to say it so that it generates different responses in the customer’s mind.

How long would you be willing to walk to avoid paying a 25% premium?
This is the question that one asks himself when using Lyft at prime time.

How long would you be willing to walk to avoid paying 1.25x the normal fee?
This is the question that one asks himself when using Uber at prime time.

Same fee, same essential message, different delivery.

 lyft

Close to 45% of participants surveyed said that they would walk 5 minutes to avoid the surcharge when it was presented in a percentage format.

When it was presented in a numeric format (1.25x) 38% of participants said that they would walk 5 minutes to avoid the charge.

The difference between 45% and 38% may not seem that critical at first sight but remember the scale at which these services are being used everyday all day. To put that in context, Uber has more than 10 million users just in the US. So the difference between a 45% acquisition rate and 38% acquisition rate adds up to 700,000 users. Based on an average transaction value of $20, that could be $14,000,000 in lost revenue. And all because of a tiny difference in presentation!

How do I know what works?

I think the biggest question people have when looking at all these examples is “how do I know what is going to work and what is not?”. It’s a fair question because you don’t know what you don’t know… This is where techniques like A/B tasking come to the rescue. With today’s advanced marketing tools even small businesses with limited budgets are able experiment with testing different ideas in the market. If you can’t pay millions of dollars to market research firms, you can always conduct your own research out in the real world.

The only caveat is that you need to be able to track all the data from your experiments. At least the data that is going to be meaningful to what you are trying to find out. If you launch an email newsletter campaign with a few different versions that feature a different subject line, messaging, imagery etc, you need to be able to track which ones are generating more lead and/or revenue for you. At the end of the day, the goal is to shift from shooting in the dark towards a more conscious and aimed marketing strategy that will work for you.

Why User Generated Content is Critical for Brands

User generated content (or UGC as it is called by acronym-loving marketers) has become one of the main trends in the industry. What UGC really means is that consumers are now in control of their own story. It is no longer a journey where companies are in the driver seat telling consumers where to go but rather a two-way communication in which the consumers decide where they want to go and how they want to get there.

In this new user-focused landscape, there are several different reasons why UGC is crucial for brands. The user-engagement methods may vary from industry to industry but the importance of UGC is the same for all of them.

It lets your brand develop its personality

personalityOne of the benefits of UGC is the fact that consumers can bring their own perspective of the product to the table. If a company has 100 customers it means that there are 100 different ways that people are experiencing the product. What better way to make things interesting than to let your customers share these experiences? This can really help a brand develop its own personality in the digital space.

It is measurable

measureAs great as it is to generate valuable content, what ultimately matters is the results. The return on investment on UGC is completely measurable through social media analytics tools and Google Analytics so that businesses can tell what is working and what is not. It is the ideal way to drive revenue and demonstrate value by measuring the engagement.

Millennials like it

millennialsWith e-commerce rapidly increasing in popularity among millennials, purchasing behaviour is naturally evolving with it. Millennials, otherwise known as Generation Y, are estimated to be the largest consumer group in the US history. According to market research reports by Ipsos and Crowdtap, a large percentage of millennials say that they use UGC to inform important purchasing decisions that they make.

UGC is more influential on purchase than any other media

As irrational as it may seem, nowadays customers are paying more attention to peer reviews than professional evaluations. In a landscape where 50% of the audience is using fellow consumers’ opinions to make decisions, it is impossible as a brand to ignore the significance of UGC.

It overcomes trust issues

trustThese days, consumers have inherent trust issues against corporations. Every time we see an ad that says “free …” we are immediately suspicious. Consumers know that there is no such thing as free when it is coming from a company that is looking for ways to increase its bottom line.

This phenomenon was tested in a very interesting experiment by Ayelet Gneezy, Stephen Spiller and Dan Ariely, who set up a booth in a busy location with a large sign that read “Free Money”. All that passers-by needed to do was to stop, grab a $50 bill from the table and move on with their day. Despite the simplicity of it, only 19% of passers-by stopped to take the free money. The researchers concluded that consumers have become so cynical that they disengage as soon as something sounds too good to be true.

UGC is a huge step in mitigating this mistrust by letting the real users of a product do the talking for you. When the information is coming from the company itself, we immediately activate our cynicism and start questioning it. But when the claims come from other users just like us, we know that they have been through the same process that we are planning on going and they are telling us their first hand experience, which we perceive as a much more credible source of information.

It is psychologically proven

psychSocial proof theory suggests that people are automatically drawn to things that they know others already like and trust. This goes hand in hand with building trust, as the more people are talking about a product (and hopefully saying good things), the better the chances of recruiting more customers. This works from both a consumer and a business perspective. When people don’t have enough information or are unsure of what to do, they turn to a larger group of people who have more knowledge than them. As for the companies, it is a great way to legitimize their claims about a product through actual users validating it for them.

Monitor and Engage

To be clear, UGC is not simply about asking your customers to write reviews for you. It is about engaging in the conversation and continuously monitoring the Internet to see what is being said about your brand.

In order to achieve this, companies need to know how their customers spend their time on the Internet. What social media sites do they regularly follow? What channels do they use to find information? Once these potential touch points are identified, it is easier to connect with the consumers at the right time with the information.