Well, thank you for having me. It's quite being humble and being among so many experts in the room. So I hope this presentation gives you a different snapshot about consumers and how they truly think. And before I start, I would like to share a video with you guys, and we one more time with tone
McDonald's. How can I, you, you know, for your, do you have a cell with you? Your tell your lover, me mom, just wanna let you know that I love you about you. Just tell me how much that is, how much its boom. You for me, tell me what you love about yourself. I love total that she has to dance right now. That strawberry love that's all is one big family.
Okay? Who doesn't have goosebumps in the room? It's a beautiful spot McDonald's created that I think was two years ago where they had their patrons pay with love and kindness with their meals. That's cool. And it's a be principle of random rewards, which engenders more loyalty among the who, who receive it, but also who, who observe it more than regular rewards. And although this was a very beautiful engaging, but the question still lingers, why some products mean something to us? Why others? Don't right. Why we buy the iPhone over Samsung? Why we love some products so much that we buy them over and over and over again. And I think hopefully in the next 50 minutes that I'll explain to you one of the paramount things that consumers go through and what that means for the products and what you guys create today. Before we do this, I would like for all of you to get up and there was like, really, really, I know, I know you will love me after that.
We love you now. Oh,
Thank you all. So I would like for you all to cross your arms,
All right, this feels very comfortable, right? Very natural. Now I would like for all of you to cross your arms the other way, ah, more difficult, right? So what do you guys guys feeling? This is the same feeling that a handful of marker around the globe experiencing by changing the way they look at consumers and you guys can sit down with that was good. Anyhow, this feeling you guys had experience like this uncomfortableness is by redefining how they look at people currently what most marketers do. And I think it's 98%. They look at people through the lens of demographic, psychographic lifestyles, what they do, how they do it when they do it by understanding why they do it. But that doesn't really work. If you don't understand how they think, right? If you don't understand how they think, all the other things don't really matter.
So within the next 15 minutes, I will give you a brief overview, three paramount things. You guys need to know how humans as we actually make decisions, okay. By the way, standing up quite paramount also, because if you learn something standing up, you retain it faster than sitting down and something to do with your blood flow oxygen and so on. So forth, just a little architect. The first thing you guys need to know about humans, as we are rather complex, your brain is super complex. Your brain is actually hundred times more complex than we thought a couple of months ago. That was an interesting article written. But the way we think is that we use multi components to define what we love or why we buy things. And it's constant with everything we do. And it's based on the principle of behavioral economics that teaches us, that we use multiple factors, calculative, social, environmental, economic, to define how much we are willing to pay for product or how do we decide we product a product, right? And that's constant. What product has value to us useful? A quick example. I don't know if you guys remember the first time Starbucks, if you guys from Seattle, you probably like eons again, but the first one for MES was in grad school a ago as well. I looked younger name. Thank you.
But I have coffee at Pete's coffee shop across the library. Great guy, somethings give me free coffee, which was always nice being a poor student, but eventually they opened up a start and student, as I was intrigued enough, I was far myself in front of one lingering. I'm like, oh God do inside. So that's so I walked inside was shocked by the expensive prices. But since I was already in loss version, another principle I decided to pay for this most expensive cup of coffee I ever had in my life. All good. And then I sat down, enjoyed it. Then eventually I left a week later Thursday for coffee. I had didn't make a decision. And that's where the principal behavior economics actually take shape because now I have to decide between Pete's my favorite coffee shop and Starbucks, the new thing on the street and what, what I do in my head. I start to evaluate economical and psychological factors, economical factors, the distance, how many done? Repeat five meters, the price, the taste, emotional factors, psychologically ones. How do I feel inside how Supera treating you? How's the environment, how other people see me? This is very expensive type of coffee, right?
And not only do we do that, we also, for each element, I'm using expectations, utility expectations. We call them might have an expectation about price, expectation of the quality, how the best is treating me and so, so forth. And not only do I do that, I actually order these things in a particular that is relevant to me. Right? And what I do is I evaluate piece was a Starbucks on all these elements, expectation I have. And then hopefully in the end, when I choose one or the other, the brand, the product will give me two, right? Fulfill my utility expectations on all the factors I'm choosing. And we'll go into this. So that's number one. And we do this with everything. I mean, everything does something know what this is? Yeah.
This is smartphone this right. Two years ago, I was looking for a smart watch. It allowed me to go swimming. I was looking everywhere and no one actually could give me that. So I was looking around apple watch, who wasn't able to do. There was a smart watch from someone else. I'm like, oh crap. And they came out the Whitney activity, Swiss made French design, love it. Couldn't afford it. I wish my ex-girlfriend would've bought it for me. But the same process, you know, there's so many products out. And I went through this process. Like I wish one of these can fulfill my expectation and which one don't right. And it's like, I will challenge you today. If you guys do go to grocery store, you take, try to pick something up that usually pick up and you remove it from your child. What happens in your brain?
Your brain will fire up and you will use multiple factors to determine which of these products who are here. I actually want, we use multiple factors to make a decision. It's number one, number two, all that we use multiple factors, multiple elements. We use them differently, right? Because we are not istic. We're not the same women, 18 to 45. Don't think alike. Millennials do not. Thinklike despite the belief of all marker around the world, they all the not. So we did a study about millennials and how they shop for banks. And these are the seven factors of how they decide which banking account they choose. Interesting enough. We, as human, as people can only utilize seven plus three, sometimes four let's really rigor moment, seven elements to make a decision. And if you think about a little bit, if you play these little memory games, you guys have to play the memory games like where one time flips and you say, okay, it's over here.
And then two over here who has done here we go. And you get to seven. You're like, ah, okay, that's easy. And you get to eight and you, and you go to nine. You're like, damn. And then 10 you're like, God damn game, same here. So we think it's true for all the decisions we make. Anyhow. So we use multiple factors, but how they use this differently. And as I said before, comfortable feels like we are looking at people from a demographic psychographic standpoint. And if you look at just Martin and James twins, who would be on paper, the same person, I'd say demographic, same psychographic. They might even have similar hobbies, but how they think is differently, right? How Martin chooses a bank. Let's say you just moved to Seattle from Bloomington. Normally, you know, from a small little town, he just, and he's not bombarded with all the messages in the world on Facebook, on Twitter, on the sidewalk NTV. And he's like, okay, he's bank of America, world Fargo, chase. Who's offering what he wants. Right. And what's actually happening. He's starting to value these bangs from the left to the right, starting with this primary drive. And by the way, this is just the simplification of a psychological process. He's going through just to make this easier for all of us. But he starts to evaluate these banks by who, in this world. Oops.
Who of these three banks fulfill my expectation about mobile online experience? He's like, yeah. Bank of America. Yeah. Chase what Fargo bank of America? Not so much, but chasing. Definitely. He goes I'm credit cards. Yeah. Both are very similar moves on to fees, services offer. He said, well, chase, not so much what I really expect from them. So he picks whats Fargo. He continues down the line and Schutze what's Fargo. Right? Interesting enough. James also picks what's Fargo, but he uses a whole different path. Right. He talked about credit cards and so on and so forth. So although he, the same elements are valuable, they use them differently. Okay. So that's number two. And number three, I think, which is the most paramount things. And that's when it really comes to consumers and why they come back or why they switch is three. Things need to happen.
I need to see myself in the brand, the brand needs to reciprocated and the brand needs to continue relationship throughout. And this is not only true for brands, but also for products for services. Okay. I need to see myself in the brand. And what we mean by that is I don't need to see myself from a peripheral point of view. I need yourself that I'm Jenny 25 years old and I'm wearing, you know, du lemons. I need to see that you as a brand, as a product, SOS can fulfill my primary drive and my expectation. Right? So Martin's point, he needed to see that you have the mobile online experience that I expect. I don't care if he's in yet. I need to see that you can fulfill that dimension for me. Okay? The brand, the product chosen to reciprocate that somehow through product offering communications.
Somehow you need to tell me I have what you need. And the last one, at least very important. I need to continue relationship throughout. And that is, I think the most paramount things you guys need to remember as you guys continue what to do with consumers, because we might decide on the primary driver of what we want, but the brand needs to continue fulfill my expectation. All these other factors along the way, hopefully unparallel my expectation or hopefully exceed this. Right. And if you really think about this, the product we have in our hands, we always think about like, oh gosh, I wish I could connect my daughter to my car. And even so it might not be relevant in the middle or it might be somewhere in the end, like, oh, I wish my car could connect me to the outside. Look. And I, look I say yes, yes, yes, yes, yes.
All the way along. At some point, if this happens over and good again, I will say no. At some point you guys know the by remorse, whoever had by remorse in this room, come on, guys, here we go. You know, you buy somebody, you put it on. It's like, yeah, it's awesome. You come home, you put it on. And you're like, damn hate it. I don't know why same here. Right? So take this example, like you fulfill my primary expectation, secondary expectation. You think you be down the road because it's like, yes, yes, it's doing what I want. And then it doesn't let to my daughter's iPad. And what I was doing is longer. It's lingering there. It becomes like a nuance. It becomes an annoyance. And when that happens, somebody will say, I'm done. I'm switching away. Right? So three things. We use multiple factors to make a decision.
And we do this all the time, all the time. And I will give a little spiel of that customer journey. How does plays a role? We use these differently, but more importantly, in order to create brand utility in Germany, we send Berg. It's the only what it actually really translate what it is. Bergy utility. You need to fulfill people's expectation. Hopefully on time. I hopefully exceed them. Right. And have a quick example. And I hope I have two more minutes. I'm in 11. Yes. I have two more minutes. And I will give you an example. How does it actually plays a role in how you can create products that create utility for customers?
Who of you has a credit card in this room? Now everybody has to raise their, huh? All right. Who of you actually redeems your credit card points. Okay. You are good citizens for the bank. They hate you. Every year, 60 billion get washed away in reward points, gone. A company, Austin, Texas came to us and said, Hey guys, we want to build a credit card and like, oh, crazy sure. Wouldn't do it. Say no, I have an idea. And I'm like, what is the idea? He's like, well, I wanna build this credit card that gives back to people. I'm like, well, that's a good idea. We can help you. He's like, okay. I want to give it to one particular, you know, one particular audience. And we're like, okay, fine. It will not work. But sure. He said, why? Well, we did this study. And we found out that people like James likeactually shop for banks and credit account, which is 70% on the market.
Here's also how they give to a charity. They start with personal connection to qu and can I give to a specific outcome? So when they think about who they give to good charity, they think about like, Hmm, my grandfather, prostate cancer. Can I give to charity? That fulfills my expectation. So what we told them, because this mix up the people who think like him, it's roughly 45% in America. We said, if you want to create a credit card that fulfills people expectation of giving back, you need to create a credit card that allows you to give to anyone in the world. So what they did, they created a credit card that now allows them to give 1% of every purchase they made, instead of redeem it, give it to any charity school or religious organization in the world, not wasting any. So what they did, they created utility. And I think I will encourage you today. As you guys go through security and privacy, how do you can create utility for the consumer, despite all the products or things that you guys create with that in mind. Okay. So thank you so much for that
Questions. You still have time for questions. So any questions?
Yes. Can you elaborate
A little bit on how themselves
Say, say it again? Can
You elaborate a little more on how a customer might see itself?
Yeah. Very good question. We get this all the time. By the way, we are the belief and we have a slide for this later on, but we as humans, although we think we identify with the brand, right? We first and foremost actually think about utility, the products given to us or service, right? Even so you might be, have a great ad. Like, oh my God, it makes me warm and fuzzy and makes me feel good. Like Nike does all the time, right? And you might start to associate yourself. I want go wanted my Nike shoes. As soon as you put these Nike shoes on Nike needs to fulfill all your expectation about the right size, the right pressure, the right gate and so on. So forth. And over time, if it's not fulfilling the expectation on the product service you deliver, that brand goes down.
We have something it's called brand, but it's not want go into, but imagine you could walk into a room of all your customers and they have a number over their head. The numbers must have been a hundred in the minus hundred. A hundred means six. Oh my God, love you. Minus crap. Get rid of you. But you could walk around like 98, 75, 68, and like, oh, succeed. What's going on? And you can go up to this person. I'm sorry to pick me from, I apologize. And you could walk around. What's your name, Rob? You could walk around, Rob, you could open up his mind. You could see like, oh, he just bought a Nike shoe. And it's like comfort size gay things like comfort 12 gate 90. And you could see how his expectation on each elements were filled, creating a whole sum of what he expects from the brand and opens the brands.
Talk what I need to create emotional connection. The emotional connection is actually created when you fulfill expectation, not toin is released because you do the right thing for them. And even so the TV spot might like, yeah, oh, it's not delivering a utility. You don't start to associate yourself with the brand. Right. No matter how great the TV spot is. So that's how brands actually create a connection by fulfilling them and have a slide for that later. Good question. Very good question. And it's super complex, right? Because we have been taught as marketers. If you create an emotional connection, you know, you can build anything afterwards, but truth be told if you don't create utility usefulness, you brand this just short lift. Right? So good question. Any other questions? No, I take that one question. Last question.
My question goes consumers and the banking space versus consumers space. How would the consumer go about selecting which retailers credit card? They should not really at point of sale, but just in general.
Can you repeat that question one more time? Because we two consumers,
I, I can get a credit card and Sears JCS C, what's going to entice me to pick more retailer together for
Credit, huh? Yeah. Credit card. So we did a study by credit cards, super complex. That being said, you agnostic, right? You don't really care because for you, it might be just does this credit card offer me security points, rewards, cost. And if nobody differentiates between them without it, I can pick whatever I want. Right. Unfortunately, every credit card in the marketplace currently has to be associated to bank just checking your credit score. Right? So every credit score is really care, right? But let's say everything is equal. If you don't differentiate from either one of those, you have a heart time, make sure you pass through. Right. That's, that's how it actually works. And that's what they button so much to. What is, what's the differentiate? What is these expectation we can fulfill that makes it different.
I have to all day, all day. Thank.