Good morning, everyone. Good morning, everyone. Good morning. Well, it's quite a privilege to be among many of you who actually are leading the fourth, this consumer experience security, privacy, and it's quite a humbling experience. But before I get started, actually would like to share video. See
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Hi, welcome. Can McDonalds. How can I help you? Two and small coffee? You know what? For your payment today, do you have a cell phone with you? Yeah. Dial up your mom. Tell your lover. Excuse me. You just, I love you. I get, how about you? Just tell me how much that is, how much its boom. Your payments will be. Tell me what you love about your son. I love for other, the total says that has to right now, Sundays with love. That's all is
All right. Who doesn't have good moneys?
I do. I do. Every time. It's a wonderful campaign done by McDonald's couple of years ago in the United States. I don't know if it was running in Europe, but what they did was have their customer randomly picked and have them paid for their meal, with the act of love and kindness. It's a behavioral principle of random rewards and contrary to regular rewards, actually the engender more loyalty among those who receive it. And also interesting enough among those who observe it right. And all that this campaign was quite emotional and trying to get to the consumers hard. The question still remains whether people still buy burger king over. McDonald's why we as consumers pick the iPhone over Samsung, why we laugh some products and why we buy this one product over and over and over again. Right before I answer that question, I would like for all of you to get up, I know you guys hate this, but early in the morning's good for you guys. Trust me. It really works.
When you guys came back, get back to the laptop in a second. And I need you guys to put your laptop down. I know know with an accent all. So I would like for you all to cross your arms, all this feels comfortable, right? Yeah. Usual. Now we'd like for all of you to cross your arms, the other way, kind of weird, right? Kind of strange. You guys get some done. So the same feeling you guys had had is this strange feeling is the feeling that a few marketers around the world experienced by rethinking the way they look at consumers. The problem, what we have today is that most marketers still think that by identifying what's demographics or psychographic or lifestyle, they understand how you and I buy their products. But in order to rethink why people are buying, we can't look at who, why when or where we do something.
Just the old thing. We have to look at how they actually think, right? And that's what I'm here to share with you. It's a little bit uncomfortable. So go with me on this journey and I trust you. There's good news to come today. I would like to share three symbol, but paramount principles and how people actually think how we think every single day, how we actually make decision. The first principle is that we, as humans are wired to use multiple factors that are surrounding our products and services that determines what we love things while we buy them over and over. And when they have meaning to us and it's based on the principle of behavioral economics, and it teaches us that we, as humans are wired to use cognitive, social, environmental, economic factors, all combined to determine how much money we are willing to pay or how we deciding product a, where is this B, where we lost things, why stuff has value, where we have something that is fulfilling our expectation.
And that's a simple explanation. I dunno if you guys remember the first time you had Starbucks, anyone in the room I'm outing myself. Okay. Mine was in college grad school. I usually had coffee down the street with Peach's coffee shop, wonderful old men. Sometimes I get a free cup of coffee because I was a poor LA, but eventually there been a Starbucks down the street and I found myself one time intrigued enough, walked in shop by the expensive prices. But since I already in there, I bought one grunge in me. Of course, sat down, enjoyed it and left a week later, coming from math class, walking down campus Thursday for coffee, I don't make a decision. And that's actually with a principle of behavioral economic station because now I'm using economic and psychological factors to determine which place to choose. Right? I'm thinking economic at the price peds 1 25 rose Starbucks, four 50 quality peds brew was the Starbucks.
You know, this crumbs of smell the distance, but also psychological factors. Like how do I feel inside? How's the barista treating? How do I feel with this very expensive cup of coffee? Or how do other people see me with this very expensive cup of coffee, right? And all of these elements, I create an expectation, have an expectation about quality, have an expectation about price, how I feel. And so, and only do I have these elements. I also put em in a certain order that's relevant to me. And what I do is I start this order and I say, okay, it's quality pizza for Starbucks price pizza for Starbucks. And I go down the list to see which of these two can fulfill my expectation. And I do this till I get to a point where I choose the brand. And hopefully the brand will fulfill my expectation on time for all these elements, but hopefully exceed them to create loyalty.
Right? And we do this with everything. And I challenge you today. If you go to a supermarket and you remove this stuff, you usually buy or next thing we go to space, remove it. And what happened for the first time? Probably like you think consciously about what leads you to buy one number or the other. Okay. So it's principle number one, we use multiple factors, principle, number two, although we use multiple factors, we collectively use them differently. Right? We did a study on millennial banking where we found that these seven elements here in America used to make a decision, which banks to choose. Right? Funny enough or interesting enough, we assume it's usually for any decision, we make seven plus two, psychologically seven seems to be the magic number for what we can retain of information. That's what we have the seven digit for America.
But these are the seven there's some ag notion. Actually we found the latest study that security is pumping up. We'll see where it falls. But, but what we do is marketers still look at us from a peripheral point of view, what we do, where we do it, how we do it, what we look from the outside millennials, right? By the way, it's terrible to use millennials because they're not monolithic. They're actually not all the same, but he has Martin and James. Similarly the same, they twins, similar jobs, similar hobbies, similar income, but they think differently about how they actually choose the bank. Let's assume Martin and James just moved from Paris to New York and here's Martin. And he gets bombarded every single day, online or offline with information about three banks, bank of America, chase and words, father. And here's his psychological simplified decision process, how he actually thinks and how this works in the real world.
What he's doing is he starts and left move to the right. And he's like, okay, which of these three banks can fulfill expectation of mobile online experience, chase MOS, Fargo bank of America, not so much keeps Mons Fargo chase. The mind goes onto credit card, debit cards. Yeah, both the same similar fees, similar services, security, but then whilst five had less ATM machine. So I actually go with chase because I'm traveling quite much. So I want have access to it and move on. And hopefully in the end, chase fulfills his expectation on all of these factors. And although Martin pinks, chase James does the same thing, but he does it differently. He starts with credit card, service, security fees and so on and so forth. But mobile online experience doesn't play much of a role fan, right? And although both very similar from a peripheral point of view, very different in their thinking, right? So what we've learned, number one, we assume and choose multiple effects to me, excuse number two, we use them differently. And number three, I think it is most relevant and important from a consumer experience. Point of view is in order to create value in order to create utility three simple, what paramount thinks need to happen. I need to see myself in the brand, the brand needs to reciprocate it. And three, the brand needs to continue the relationship throughout. Okay. What do we mean by that? I need to see myself in the brand
Means that I don't need to see myself from a peripheral point of view. I don't need to see myself as 65 year old man, riding a Harley because I'm cool. I need to see that you as a company, as a brand, as a product, as a service, have what I need.
Martin
Doesn't need to see himself as a young entrepreneur need to see that you have the mobile online experience that you, that he needs. And by the way, this mobile online experience is not a binary function for him. It's not like, say yes, you have it. No, you don't have it. It's actually heuristic. He's using that is relevant to him. It might be a little bit different than for me. The brand then somehow needs to recognize this, offer him product services, communication that's relevant to him, despite his demographic psychographic and the last one, at least the brand somehow needs to continue the relationship throughout what we mean by this. Let's assume Martin somehow starts to consider chase and chase has somehow identified that he needs mobile online experience and he picks chase as he's paying. And he experience chase every single day. And what happens is hopefully the bank fulfills his expectation of every single item on power with his expectation, hopefully exceeds it. So he remains loyal. But what happens now, if every time he goes to these a ation, he has to pay extra fee, an extra fee and another extra fee because chase is not everywhere.
What happens is that he feels by remorse because even so these first elements say, yes, yes, yes, yes. And then say, it's getting kind of painful. He starts to think which other bank might fulfill his expectation. We talked earlier about security and let's say the same thing. Every time he comes to bank online, he has to fill out a security form or questions about himself. He's like, oh man, really? I love what you guys do with me, but painful. And we have this all the time. But how many of you have had buyer remorse in the last year? One, two, really guys, come on, here we go. Thank you. So as, as a company, right, you have to make sure that even so you might fulfill a primary need. Every touch point you have for the consumer is there's an expectation. You need to fulfill it. You need to understand what those things are. And it has nothing to do with who these people are. So move away from millennial conversation, move away from baby boomers, move away from our real lifestyle company. Right? So what we have learned is we, as humans use multiple factors to make a decision. We use them differently. And in order to treat utility value brand love,
Think about what people really want to deliver and then continue relationship from. Okay. So what does it mean all for you? So we were privileged enough to be asked by a company it's now called charity charge to help him with an idea. And the gentleman is now dear friend of mine, a CEO. He came to me, he said, Hey, Christian, have this idea. And I'm like, oh great. We love ideas. What's the idea. He said, what do you do with 16 billion in credit card points? I'm like, I dunno. Well, in America they get wasted. I'm like, oh, that sucks. And he's like, yeah. I'm like, what do you wanna do? He's like, well, I wanna create this credit card. I'm like, hold on. You wanna get an credit card business? Are you crazy? And he's like, no, no, it's awesome. I'm like, okay. Be my guess fine. So he said, okay, I will create a credit card. And I'm like, okay, what do you wanna do? He's like, I wanna create a credit card that allows people to give back. I'm like, that's a great idea. And he's like, I have one problem. I don't know how people give to charities. I'm like, okay, we can help you. We did a study on charities while back with another launch operation corporation who allowed us to share those data. And what they have found is actually people like James
Think like this, about giving to charities. He starts with personal connection to cause and so on and so forth. And by the way, how many of you know, system one system, two thinking some of you great. Kuman great guy. There's a gay book guy should all read. It's thinking fast and slows. He talks about system one system, two thinking more system wants an emotional reaction that you choose. System two is more rational thinking. What we believe is actually we do both, whether we are aware of it or not, but we cut through the clutter with what we think is more important to us, more relevant for them. It's personal connection. Cause our brain wire to cut through stuff and make sure that we just go for what we need, right? And this is person connection America. 42% of Americans actually choose this path to give to charity.
So James' grandfather had prostate cancer. So he's looking for a charity that allows him to give to prostate cancer, right? So we told Martin, we told Steve hasty his thing. If you build a credit card that allows people to give to any charity, the one you have a winner. So what he did, he actually created a credit card that allowed him, anyone, any person, any company to give to any charity school, religious organization, anytime everywhere. And one person of every purchase they make goes to that CD is a one to 10, how many they choose, which is now valid. And it states. And I think hopefully at some point all over the world and it gets signed by master accounts, hopefully coming. So, but what they did, they created utility. And I encourage you all today to think about not only from the enterprise perspective, but really from the consumer perspective, what security privacy means to them, how the experience flow and really ask, asked the question, what does a consumer want?
And step for brief moment out of this entrepreneurial enterprise say, well, here's what we can do because in order to survive, the consumer will still be fun and center day in and down. And with that, I'm open for question. I'm still on time. Well, it's pretty good. You're perfectly well time. Thank you, Christian. And we have definitely left a little time for question so, and I think it's three time that someone raises his hand. It's not that early anymore. You might have a little bit at at least some of your share of coffee. So I know we had questions. I appreciate by the way that we were pretty much on the same page. Okay. I put you go up there. Good to see you again, Christian. Yeah. Morning. How are you? Good. Good. Is this not placed by the way one these, no, it's asking question question. So
You talk a lot about all the different factors that go into making decisions. And the only way, if you're a business owner to know which of those factors are important is to gather the information. Yeah. So now we're caught in the midst of two conflicting requirements where you've got marketing people and senior management of a business that needs to know how do we make those decisions? Cuz we don't know if there are all these factors that go into making the decision for a buyer. It doesn't matter what demographic they're in that they have to, they have to get that data. But we know that the only way to gather that data is by asking for they're going through all these, these things that, you know, collecting information and like the previous speakers mentioned, the more data that we try to gather, we're now caught in a conflicting set of, of business requirements. So how do you address that from what you're talking
About? Yeah. Great question. And then we get this from a lot of clients, companies. So there's good, bad, good data and bad data. Right? A lot of people think the more data the better, but we all know there's junk data because if I'm a data scientist, the more data I have, I can create any correlation you want any correlation. The problem is, is really the cause of why we do things. So maybe we step a step back and say, is all the data will be necessary or do we really need to understand what people do with the product that really drives them? Right. And it's simple, what do we do? The first thing we need something. What do we do? We all do this 2017. We all do this. We Google, right. I need to Skype. I Google this information is a valuable, right? If I see that people look for the softest scarf, the fastest internet, right?
And it's like, this might be something we, our customers one, we should build something around this or do simple research. I totally understand data's necessary, but there's some, data's absolutely unnecessary. Right? And I think companies need to understand that I have a friend of mine, who's building a life insurance company. And she said, well, it's a big, big problem. Right? But they try to open that to everyone say, Hey, here's the data we want from you. We want to use this. We want to use this to give you better access or help you provide you with the best data. And I think that's the way over that hum to say, give me as much as I need so I can help you serve better. It's a really good question. I think we are still in the infant stages, especially large corporation. We are moving very difficult. So thank you very much, Chris. And I think this demonstrating the benefit is extremely important point. So Analyst people understand they will see what data is collected Analyst. They understand what the benefit for them is. It will be hard to convince them. And right now I think this direct leads. So thank you very much, Christian. Thank.
