Consumers Are Becoming Wise to Your Nudge

“Only 2 rooms left? They don’t expect me to believe that do they? You see that everywhere.”

I leave with a wry smile. The client won’t be happy, but at least the project findings are becoming clear. Companies in certain sectors use the same behavioral interventions repeatedly. Hotel booking websites are one example. Their sustained, repetitive use of scarcity (e.g., “Only two rooms left!”) and social proof (“16 other people viewed this room”) messaging is apparent even to a casual browser.

For Chris the implication was clear: this “scarcity” was just a sales ploy, not to be taken seriously.

My colleagues and I at Trinity McQueen, an insight consultancy, wondered, was Chris’s reaction exceptional, or would the general public spot a pattern in the way that marketers are using behavioral interventions to influence their behavior? Are scarcity and social proof messages so overused in travel websites that the average person does not believe them? Do they undermine brand trust?

The broader question, one essential to both academics and practitioners, is how a world saturated with behavioral interventions might no longer resemble the one in which those interventions were first studied. Are we aiming at a moving target?

.. We started by asking participants to consider a hypothetical scenario: using a hotel booking website to find a room to stay in the following week. We then showed a series of nine real-world scarcity and social proof claims made by an unnamed hotel booking website.

Two thirds of the British public (65 percent) interpreted examples of scarcity and social proof claims used by hotel booking websites as sales pressure. Half said they were likely to distrust the company as a result of seeing them (49 percent). Just one in six (16 percent) said they believed the claims. 

The results surprised us. We had expected there to be cynicism among a subgroup—perhaps people who booked hotels regularly, for example. The verbatim commentary from participants showed people see scarcity and social proof claims frequently online, most commonly in the travel, retail, and fashion sectors. They questioned truth of these ads, but were resigned to their use:

“It’s what I’ve seen often on hotel websites—it’s what they do to tempt you.”

“Have seen many websites do this kind of thing so don’t really feel differently when I do see it.”

In a follow up question, a third (34 percent) expressed a negative emotional reaction to these messages, choosing words like contempt and disgust from a precoded list. Crucially, this was because they ascribed bad intentions to the website. The messages were, in their view, designed to induce anxiety:

 “… almost certainly fake to try and panic you into buying without thinking.”

“I think this type of thing is to pressure you into booking for fear of losing out and not necessarily true.”

For these people, not only are these behavioral interventions not working but they’re having the reverse effect. We hypothesize psychological reactance is at play: people kick back when they feel they are being coerced. Several measures in our study support this. A large minority (40 percent) of the British public agreed that that“when someone forces me to do something, I feel like doing the opposite.” This is even more pronounced in the commercial domain: seven in ten agreed that “when I see a big company dominating a market I want to use a competitor.” Perhaps we Brits are a cynical bunch, but any behavioral intervention can backfire if people think it is a cynical ploy.

Heuristics are dynamic, not static

Stepping back from hotel booking websites, this is a reminder that heuristics are not fixed, unchanging. The context for any behavioral intervention is dynamic, operating in “a coadapting loop between mind and world.” Repeated exposure to any tactic over time educates you about its likely veracity in that context. Certain tactics (e.g., scarcity claims) in certain situations (e.g., in hotel booking websites) have been overused. Our evidence suggests their power is now diminished in these contexts.

Two questions for the future

In our study, we focused on a narrow commercial domain. It would be unwise to make blanket generalizations about the efficacy of all behavioral interventions based on this evidence alone. And yet nagging doubts remain.

#1: Like antibiotic resistance, could overuse in one domain undermine the effectiveness of interventions for everyone?

If so, the toolkit of interventions could conceivably shrink over time as commercial practitioners overuse interventions to meet their short-term goals. Most would agree that interventions used to boost prosocial behavior in sectors such as healthcare have much more consequential outcomes. In time, prosocial practitioners may be less able to rely on the most heavily used tactics from the commercial domains such as social proof and scarcity messaging.

#2 : How will the growing backlash against big tech and “surveillance capitalism” affect behavioral science?

Much of the feedback from the public relates to behavioral interventions they have seen online, not offline. Many of the strategies for which big tech companies are critiqued center on the undermining of a user’s self-determination. The public may conflate the activities of these seemingly ubiquitous companies (gathering customer data in order to predict and control behavior) with those of the behavioral science community. If so, practitioners might find themselves under much greater scrutiny.

Feedback loops matter

There probably was never an era when simple behavioral interventions gave easy rewards. Human behavior—context-dependent, and driven by a multitude of interacting influences—will remain gloriously unpredictable.

Marketers should design nudges with more than the transaction in mind, not only because it is ethical or because they will be more effective over time but also because they bear responsibility toward the practitioner community as a whole.

The lesson I take from our study? Feedback loops affect the efficacy of behavioral interventions more than we realize. Just because an intervention was successful five years ago does not mean it will be successful today. Practitioners should pay as much attention to the ecosystem their interventions operate in as their customers do. There’s no better place to start than spending time with them—talking, observing, and empathizing.

We should also consider our responsibilities as we use behavioral interventions. Marketers should design nudges with more than the transaction in mind, not only because it is ethical or because they will be more effective over time but also because they bear responsibility toward the practitioner community as a whole. We owe an allegiance to the public, but also to each other.

Tony Schwartz: The Truth About Trump | Oxford Union Q&A

Announcing his candidacy for the Republican nomination back in June 2015, Donald Trump stated “We need a leader that wrote ‘The Art of the Deal’ “. Tony Schwartz was the ghostwriter of the book Trump calls ‘his proudest achievement’. Schwartz has been vocal about his regrets in working on the piece, but, having worked intimately with Trump, provides a fascinating perspective into the personality and idiosyncrasies of the Republican nominee

 

3 Distinctive Trump Traits:

  1. Utter disregard for the truth & lack of conscience
  2. Guided by immediate self interest
  3. Inability to admit he was wrong

Trump Strength:

  • Persevering. Aggressive in pursuit of Goals
  • Manipulating the Media to get Attention

 

The Dubious Management Fad Sweeping Corporate America

 

NPS—or net promoter score—is a measure of customer satisfaction that has developed a cultlike following among CEOs. It also may be misleading.

Best Buy and American Express use it to dole out employee bonuses. Target and Intuitpoint to it to justify investments. Delta Air Lines and UnitedHealth can’t stop talking about it.

Much of Corporate America is obsessed with its net promoter score, or NPS, a measure of customer satisfaction that has developed a cultlike following among CEOs in recent years. Unlike profits or sales, which are measured and audited, NPS is usually calculated from a one-question survey that companies often administer themselves.

Last year, “net promoter” or “NPS” was cited more than 150 times in earnings conference calls by 50 S&P 500 companies, according to a Wall Street Journal analysis of transcripts. That’s more than four times as many mentions, and nearly three times as many companies, compared with five years earlier.

Executives pointed to strong or rising NPS as proof that shoppers preferred to pick up orders at Target Corp. stores or that Google’s newest Pixel smartphone was off to a good start. Out of all the mentions the Journal tracked on earnings calls, no executive has ever said the score declined.

.. The score was introduced in 2003 in a Harvard Business Review article titled “The One Number You Need to Grow.” The Bain & Co. consultant who wrote the article called NPS the “simplest, most intuitive and best predictor of customer behavior” and a “useful predictor of growth.”

.. Since then, the metric has taken on a life of its own, so much so that the inventor, Fred Reichheld, said he is astonished companies are using NPS to determine bonuses and as a performance indicator. “That’s completely bogus,” Mr. Reichheld, who still consults for Bain, said in an interview. “I had no idea how people would mess with the score to bend it, to make it serve their selfish objectives.”

The score is typically derived from customer responses to a single question that companies ask at the checkout register of a store or in an email or web pop-up online: On a scale of 0 to 10, how likely are you to recommend the company’s product or service to a friend? The survey usually includes a follow-up question asking customers to explain their ratings.

NPS is based on the premise that every company’s customers can be divided into three groups. People who answer 9 or 10 are “promoters,” or loyal enthusiasts who keep buying. Those who give a score of 0 to 6 are “detractors,” or unhappy customers. Those who answer 7 or 8 are considered “passives,” satisfied but easily wooed by competitors.

.. Management consultants are notorious for pushing ideas to CEOs using jargon and claims of improved business performance. Total quality management, or TQM, which advocated installing quality programs at companies, and business re-engineering process, and BRP, which was a way to restructure companies, gained traction in the 1990s and then faded. NPS has outlived such fads, spawning a cottage industry of consultants and software firms that help businesses implement and boost their score.
Some academics have questioned the whole idea, suggesting that NPS has been oversold. Two 2007 studies analyzing thousands of customer interviews said NPS doesn’t correlate with revenue or predict customer behavior any better than other survey-based metric. A 2015 study examining data on 80,000 customers from hundreds of brands said the score doesn’t explain the way people allocate their money.“The science behind NPS is bad,” said Timothy Keiningham, a marketing professor at St. John’s University in New York, and one of the co-authors of the three studies. He said the creators of NPS haven’t provided peer-reviewed research to support their original claims of a strong correlation to growth. “When people change their net promoter score, that has almost no relationship to how they divide their spending.”

Some data scientists said the way NPS is calculated, in which one survey metric is subtracted from another, increases the margin of error and requires a larger sample size to get useful results.

“It’s common for companies to track NPS data as if it’s gospel—not knowing that it’s super noisy by design,” said Kim Larsen, who has worked as a data scientist at several companies, including Charles Schwab Corp.

Bain, which now refers to NPS as “net promoter system,” said some companies are focusing too heavily on the score, but still defended the approach for some practical benefits. It is simple to communicate to employees, provides an easy way to follow up with customers and can be used to benchmark against rivals. The firm also said third-party analyses, including the 2007 studies, of whether NPS correlates with revenue aren’t as good as the analyses companies conduct internally.

“These are not stupid people. They are running large, successful companies,” said Rob Markey, a Bain partner who helps clients use NPS. “They have demonstrated to their own satisfaction that it’s good.”

Among the first companies to implement NPS were General Electric Co., Intuit Inc. and Charles Schwab Corp., whose leaders were convinced of the benefits after meeting with Mr. Reichheld and other Bain consultants. Now, hundreds of companies are using the score and many have tweaked the methodology, such as making the numerical scale 1 to 5 or including additional survey questions.

International Business Machines Corp. said it switched from a three-question survey to NPS in 2015. Employees in different departments can see the NPS feedback on their phones. “What it’s become here is a shared truth,” said Kathy McGettrick, vice president of market development and insights at IBM.

.. “A big challenge with the methodology is that organizations tend to focus on the metric as the objective instead of gaining the insight to learn and act on to improve the customer experience,” he said. “When organizations manage to the metric, they find ways to game the system.”

The results are easy to manipulate, whether intentionally or unintentionally. On Reddit posts, Best Buy employees share tips and tricks to improve NPS, which the company derives from a random sample of customers. They said they can get better results when they explain to customers how the scoring works, or tell them their compensation is connected to the result. Some said they remind only the happiest customers to take the survey.

“When horrible NPS comments would come in, the management would rail at the employees,” said Alan Sabido, a former Best Buy employee who worked at a Las Vegas store for three years until he quit last year. Mr. Sabido recalled an instance when his store team received a bad score because a customer had a poor experience at a different Best Buy location.NPS took on a greater role after Hubert Joly joined as Best Buy’s chief executive in 2012. The company said it was administering the NPS survey question to customers who bought products as well as those who didn’t. Best Buy also made the metric one of the criteria used to determine bonuses.

.. Delta executives describe NPS as the “true North Star,” she said, though the airline uses other customer metrics as well. “We have been able to statistically correlate our NPS performance with our revenue premium,” she said, referring to how much more Delta is able to charge than a competitor because of its brand.

.. It’s hard for investors to interpret the score because companies don’t typically share response rates, margin of error, or whether results are adjusted for cultural and other biases. Research shows  , and Americans tend to give higher scores than consumers in some countries such as Japan and Korea.

Narcissism and Its Discontents | Ramani Durvasula | TEDxSedona

Narcissism has not only become a normalized social condition, it is increasingly being incentivized. The framework of narcissism with the central pillars of lack of empathy, entitlement, grandiosity, superficiality, anger, rage, arrogance, and shallow emotion is a manifestation of pathological insecurity – an insecurity that is experienced at both the individual and societal level. The paradox is that we value these patterns – and venerate them through social media, mainstream media, and consumerism, they represent a fast-track to financial and professional success. These traits are endemic in political, corporate, academic, and media leaders. There are few lives which are not personally touched by narcissists – be it your spouse, partner, parent, child, colleague, boss, friend, sibling, or neighbor. Whether societally or individually, the toxic wave of narcissism, entitlement, and pathological insecurity is harming us all. The enticements of charm, charisma, confidence, and success can draw us in or blind us to the damaging truths of narcissism. The invalidation inherent in these relationships infects those are in them with self-doubt, despair, confusion, anxiety, depression and the chronic feeling of being “not enough,” all of which make it so difficult to step away and set boundaries. The illusion of hope and the fantasy of redemption can result in years of second chances for narcissists, and despondency when change never comes. It’s time for a wake-up call. Health and wellness campaigns preach avoidance of unhealthy foods, sedentary lifestyles, tobacco, drugs, alcohol, but rarely preach avoidance of unhealthy or toxic people. Yet the health benefits of removing toxic people from a life may have a far greater benefit to both physical and psychological health than going to the gym. We need to learn to be better gatekeepers for our minds, bodies, and souls. Instead of habituating to the global shift of validating narcissism and other toxic patterns, it’s time to understand it and take our lives back. Dr. Ramani Durvasula is a licensed clinical psychologist in private practice in Santa Monica and Sherman Oaks, CA and Professor of Psychology at California State University, Los Angeles, where she was named Outstanding Professor in 2012. She is also a Visiting Professor at the University of Johannesburg.

 

today I am going to talk about the most
overused misunderstood problematic words
of our time a phenomenon a word that is
shaping all of our destinies that word
is narcissism narcissism is a word that
is being used to understand bad behavior
everywhere in national leaders in heads
of state heads of corporations fancy
academic types athletes celebrities we
actually no longer recoil at their
grandiosity their entitlement and their
incivility in fact too many people award
them grudging admiration for their
successes and that grants permission to
everyone to replicate these abusive
patterns of behavior with impunity now
things got confusing when people started
using narcissism as a clinical term it
became a way of medicalizing bad
behavior it’s actually not a diagnostic
term narcissistic personality disorder
is a diagnosis but it’s pretty rare
because these folks don’t show up to be
diagnosed anyhow so narcissism is in
fact a personality pattern it’s a sort
of way of relating to the world it’s an
adjective to describe their style much
like you could describe someone as
agreeable or stubborn or introverted
some of these patterns are valued by
society and others aren’t and the fact
is most people don’t receive being
called narcissistic as a compliment it’s
just however a descriptive term and no
matter how much we turn our noses up at
it paradoxically as a society we reward
it dr. Alan Francis was one of the
architects of the diagnosis of
narcissistic personality disorder and he
argues that we actually give badly
behaved jerks and out when we call it a
diagnosis if a person is a jerk then
they’re a jerk disliking a pattern of
behavior doesn’t make it a mental
illness that so-called jerk has to be
experiencing problems in their lives
and for their narcissism to actually be
considered a diagnosis
so if we were to cobble together all the
various things that make up narcissism
we land on a very uncomfortable summit
narcissism is comprised of certain
pillars as I call them

  • lack of empathy
  • grandiosity
  • entitlement
  • superficiality
    admiration and
  • validation seeking
  • hypersensitivity rage and a
  • tendency to manipulate and exploit people

it’s confusing because they’re simultaneously
under responsive they tend to be
emotionally aloof cold and distant but
then they’re hyper responsive they have
hair-trigger temper that set off like
that when their fragile egos get
threatened so narcissism however I
believe is synonymous with pathological
insecurity the key to understanding the
narcissist is that they feel constantly
unstable and empty their grandiosity is
actually an immature defense against
these threats to them their sense of
self and they’re desperate for the world
to keep validating them on their good
days they look happy they’re great
they’re grandiose but on the bad days
the facade crumbles quickly and we see
disproportionate rage shame and
vindictiveness I became interested in
narcissism through a couple of different
pathways but the most striking was the
fact that more and more clients were
coming into my office and talking about
relationships in which their partners
treated them with utter disregard
indifference coldness they lacked
empathy they would question their
reality they would lie to them at times
they were unfaithful they were
inconsistent and no matter what they
tried with their partner it didn’t get
better at the same time I started
working with more narcissistic clients
and would you know nothing we tried
really made things better in fact they
just remain difficult people and I don’t
think I’m not bad a therapist so it was
clear that these relationships were
being kept in place simultaneously by
hope and fear hope that someday it would
get better if they kept trying harder
but fear that if they left these
relationships they would be alone
forever without
partner or even without a mother and
some of them had the fear that maybe
this is as good as it gets the world has
become more insecure and the reasons for
that are varied galip’s annual global
emotions report said that in 2017 was
the most miserable in about a decade the
report indicated that sadness anger
worry stress and physical pain were more
frequently endorsed last year than in
the ten years prior
now Gallup speculated on a variety of
reasons for this but let’s pitfall for a
minute could it be that this increase in
misery could reflect the increase in
insecurity incivility and tolerance of
narcissism our world supports the
increasing insecurity in our world and
the platforms that capitalize on it such
as consumerism have created optimal
fertile ground for narcissism to
incubate and proliferate when human
value is driven entirely by external
incentives such as success then
qualities such as empathy do not have a
fighting chance because we no longer
value them and they’re no longer
valuable so why do we get pulled into
these relationships
we’re not flocking to narcissism because
we love emotional coldness or
invalidation or shallow people
we’re drawn in because narcissism is
seductive I call it the three C’s of narcissism

  1. charm
  2. charisma and
  3. confidence

that’s not to say that all charming and
charismatic people are narcissistic
however we do know that these traits are
so seductive that we get drawn in and
they can blind us to the more venomous
characteristics that are unfolding at
the same time such as entitlement
vindictiveness or lack of empathy so
then once a person is in a relationship
and it’s uncomfortable and is painful
why would they stay with a narcissist
all of us are vulnerable to those
narcissistic charms and in fact we may
be rendered even more vulnerable to
sticking around for the abuse by a
narcissist if we originated from family
systems in which the patterns of
narcissism were normalized such as
having a cold authoritarian
distant invalidating or abusive parents
our own insecurities render us
vulnerable and also less able to climb
out when the climate shifts from charm
and charisma to invalidation and abuse
most of us are great at giving second
chances and second chances are in fact
the accelerant for narcissism at all
levels when we are in a narcissistic
relationship we make excuses that’s just
how he is he didn’t really mean that she
means well ah that’s just her culture
and there’s the rub that’s how this
infectious virus of being in any form of
narcissistic relationship whether with
an individual or a family or a company
or a culture can slowly proliferate and
take over most of us issue second
chances with zeal our storytelling in
our culture is immersed in tales of hope
redemption and forgiveness and while
that’s all very healthy in the wrong
hands hope and forgiveness may not
represent an opportunity for growth or
change or restoration but rather
permission to just keep things going as
they are because with narcissists
forgiveness is interpreted as hey let’s
just keep the status quo have we created
a world in which narcissism as a pattern
as a personality is becoming necessary
to succeed in the new world order this
is where we hit a bit of a problematic
divide the very qualities associated
with material success are actually bad
for our health because while these
qualities may be festered and fostered
by our cultures and our schools and our
economies and our societies they are
never going to be good for our close
relationships and that doesn’t just mean
spouses and partners that means parents
children siblings extended family
friends colleagues narcissistic patterns
undercut the core of what’s necessary
for healthy relationships those things
include mutuality respect compassion
patience genuineness honesty and trust
things that are simply not possible with
the system or a person which is
narcissistic and it’s in that intimate
relationship space where we see the most
profound impacts of a narcissist what
did that be a spouse or a partner a
relationship with a narcissist is a
gradual indoctrination you slowly become
inured to their lack of empathy though
Tantrums their rage their insults and
their entitlement their lies and their
challenges to your reality they’re
insulting words slowly become your
self-talk and before you know it your
new mantra becomes I am not enough
anyone who’s had a narcissistic parent
will acknowledge that it shaped the arc
of their lives it instilled an
insecurity in a chronic jousting at
psychological windmills from an early
age narcissistic parents leave a legacy
including an inability to trust your own
instincts to safely enter close
relationships to trust your own
abilities and a lifetime can be spent
trying to gain the notice of the aloof
detached and disconnected parent the
proliferation of narcissism and
leadership in our culture governments
companies and world has made very
difficult workplaces the narcissistic
boss is the insecure tyrant
these are workplaces ruled by fear and
subterfuge abuse and vindictiveness
deceit and slippery ethics and in the
face of the me2 movement the top notes
of narcissism pervaded all of the
stories the entitled and untouchable
tyrant pillaging the workforce and in
most case with almost no consequences
the most painful realization is that
narcissistic patterns are just not that
amenable to change at a minimum for any
change to occur the narcissus has to
recognize the harmful pattern of their
behavior then they have to want to
change it and then they have to put in
the daily work of change there is a
small number of cases where that kind of
happened but under conditions of stress
and frustration the usual issues of Rage
will pop up the rubberband of
personality returns to its usual shape
and size
the small changes that could be made may
not be enough to make a close intimate
relationship sustainable and if somebody
is not willing to recognize that they
need to make changes because they’re
hurting other people there’s little
likelihood they will make a change but
there is a likelihood they will continue
to blame other people the world or you
for their bad behavior so that means
that the only remaining strategies are
to maintain your expectations and set
boundaries not to try to change that
person or waste hope on the possibility
of change but to recognize that this is
how it is and either accept it or slowly
step away from it now this is very
individual and it’s not always possible
if it’s your parents or your child who’s
narcissistic you may not be willing to
sever that tie finances culture children
or love can make walking away from a
marriage or a romantic relationship
seemingly impossible and that’s fine but
managing expectations on this pattern
can protect you from the downstream
effects of this ongoing abuse and allow
you to construct a more realistic
reality sadly most of us put 90 percent
of our hearts minds and souls into our
most dysfunctional unhealthy
invalidating relationships and save the
little bit that’s left for the people
who are good and kind to us it’s time we
flip this skewed calculus and start
giving the best of ourselves to our
healthy and reciprocal relationships and
really only give the bare minimum to the
relationships that really aren’t helping
us grow perhaps that’s a healthier way
of negotiating these treacherous waters
of narcissism without losing ourselves
in the depths of self-doubt and
self-criticism now this can be extended
to our thinking about the world at large
it can be small fixes such as turning
off the polarizing discourses we hear
and learning to measure our self-worth
and the worth of others with new metrics
of success

  • authenticity
  • compassion
  • kindness
  • and empathy

we can learn to
tend to our own gardens and not get
pulled into hostile interactions that
benefit no one so this begs a question
can there be happy endings or
narcissistic or
tagging istic personalities and cultures
are concerned I actually think there can
be the greatest challenge about happy
endings in real life is that they rarely
look like the ones we crafted when we’re
young and it’s easy to get stuck in our
own old narratives people who come from
narcissistic families may feel as though
they missed out on having a parent who
is an ally or a supporter even as they
go into adulthood people who married
narcissistic partners may find
themselves mired in a nightmare of
emotional abuse or simply finding that
they’re actually alone despite being
married few people write stories of
their lives that build in disappointment
I have found that survivors of all kinds
of narcissistic and antagonistic
relationships actually can and do have
happy endings they just don’t look like
they thought all of us are bigger than
this epidemic of narcissism any of us
can change that you are not enough
narrative that still resonates we can
repair it ourselves we can look at the
entitled shenanigans of people who
shriek don’t you know who I am and
realize that you don’t give a damn about
who they are where there are scars
beautiful things actually can spring
forth
khalil gibran writes out of suffering
have emerged the strongest Souls the
most massive characters are seared with
scars yes the world is in fact becoming
more narcissistic and insecure
don’t let the global epidemic of
incivility infect you inoculate yourself
find your communities find common ground
with other people instead of living in
polarization practice kindness and
empathy even when other people are not
choose your friends and your romances
with care every life story can be a
miracle or a tragedy it just depends on
how you write it
these days with the world in such
disarray anyone who is surviving with
their empathy unbroken their hearts
sound their integrity in place and
theirs
sense of humor intact is nothing short
of dauntless pushing back on narcissism
is a human rights issue all of us need
to stop giving permission to narcissism
and narcissists and start taking our
lives our souls and our world back thank you