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@fatih-colakoglu
What makes a great growth hacker?
Introducing Steve Jobs.
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The Psychology of Color in Marketing and Branding
The psychology of color as it relates to persuasion is one of the most interesting--and most controversial--aspects of marketing.
The reason: Most of today's conversations on colors and persuasion consist of hunches, anecdotal evidence and advertisers blowing smoke about "colors and the mind."
To alleviate this trend and give proper treatment to a truly fascinating element of human behavior, today we're going to cover a selection of the most reliable research on color theory and persuasion.
Misconceptions around the Psychology of Color
Why does color psychology invoke so much conversation ... but is backed with so little factual data?
As research shows, it's likely because elements such as personal preference, experiences, upbringing, cultural differences, context, etc., often muddy the effect individual colors have on us. So the idea that colors such as yellow or purple are able to invoke some sort of hyper-specific emotion is about as accurate as your standard Tarot card reading.
Related: How to Use the Psychology of Color to Increase Website Conversions
The conversation is only worsened by incredibly vapid visuals that sum up color psychology with awesome "facts" such as this one:
Don't fret, though. Now it's time to take a look at some research-backed insights on how color plays a role in persuasion.
The Importance of Colors in Branding
First, let's address branding, which is one of the most important issues relating to color perception and the area where many articles on this subject run into problems.
There have been numerous attempts to classify consumer responses to different individual colors:
Image credit: The Logo Company
... but the truth of the matter is that color is too dependent on personal experiences to be universally translated to specific feelings.
But there are broader messaging patterns to be found in color perceptions. For instance, colors play a fairly substantial role in purchases and branding.
In an appropriately titled study called Impact of Color in Marketing, researchers found that up to 90% of snap judgments made about products can be based on color alone (depending on the product).
And in regards to the role that color plays in branding, results from studies such as The Interactive Effects of Colors show that the relationship between brands and color hinges on the perceived appropriateness of the color being used for the particular brand (in other words, does the color "fit" what is being sold).
The study Exciting Red and Competent Blue also confirms that purchasing intent is greatly affected by colors due to the impact they have on how a brand is perceived. This means that colors influence how consumers view the "personality" of the brand in question (after all, who would want to buy a Harley Davidson motorcycle if they didn't get the feeling that Harleys were rugged and cool?).
Additional studies have revealed that our brains prefer recognizable brands, which makes color incredibly important when creating a brand identity. It has even been suggested in Color Research & Application that it is of paramount importance for new brands to specifically target logo colors that ensure differentiation from entrenched competitors (if the competition all uses blue, you'll stand out by using purple).
Related: When It Comes to Branding, It's All About Color (Infographic)
When it comes to picking the "right" color, research has found that predicting consumer reaction to color appropriateness in relation to the product is far more important than the individual color itself. So, if Harley owners buy the product in order to feel rugged, you could assume that the pink + glitter edition wouldn't sell all that well.
Psychologist and Stanford professor Jennifer Aaker has conducted studies on this very topic via research on Dimensions of Brand Personality, and her studies have found five core dimensions that play a role in a brand's personality:
(Brands can sometimes cross between two traits, but they are mostly dominated by one. High fashion clothing feels sophisticated, camping gear feels rugged.)
Additional research has shown that there is a real connection between the use of colors and customers' perceptions of a brand's personality.
Certain colors DO broadly align with specific traits (e.g., brown with ruggedness, purple with sophistication, and red with excitement). But nearly every academic study on colors and branding will tell you that it's far more important for your brand's colors to support the personality you want to portray instead of trying to align with stereotypical color associations.
Consider the inaccuracy of making broad statements such as "green means calm." The context is missing; sometimes green is used to brand environmental issues such as Timberland'sG.R.E.E.N standard, but other times it's meant to brand financial spaces such as Mint.com.
And while brown may be useful for a rugged appeal (think Saddleback Leather), when positioned in another context brown can be used to create a warm, inviting feeling (Thanksgiving) or to stir your appetite (every chocolate commercial you've ever seen).
Bottom line: I can't offer you an easy, clear-cut set of guidelines for choosing your brand's colors, but I can assure you that the context you're working within is an absolutely essential consideration.
It's the feeling, mood, and image that your brand creates that play a role in persuasion. Be sure to recognize that colors only come into play when they can be used to match a brand's desired personality (i.e., the use of white to communicate Apple's love of clean, simple design).
Without this context, choosing one color over another doesn't make much sense, and there is very little evidence to support that 'orange' will universally make people purchase a product more often than 'silver'.
Color Preferences by Gender
Perceived appropriateness may explain why the most popular car colors are white, black, silver and gray ... but is there something else at work that explains why there aren't very many purple power tools?
One of the better studies on this topic is Joe Hallock's Colour Assignments. Hallock's data showcases some clear preferences in certain colors across gender.
It's important to note that one's environment--and especially cultural perceptions--plays a strong role in dictating color appropriateness for gender, which in turn can influence individual choices. Consider, for instance, this coverage by Smithsonian magazine detailing how blue became the color for boys and pink was eventually deemed the color for girls (and how it used to be the reverse!).
Here were Hallock's findings for the most and least favorite colors of men and women:
The most notable points in these images is the supremacy of blue across both genders (it was the favorite color for both groups) and the disparity between groups on purple. Women list purple as a top-tier color, but no men list purple as a favorite color. (Perhaps this is why we have no purple power tools, a product largely associated with men?)
Additional research in studies on color perception and color preferences show that when it comes to shades, tints and hues men seem to prefer bold colors while women prefer softer colors. Also, men were more likely to select shades of colors as their favorites (colors with black added), whereas women were more receptive to tints of colors (colors with white added):
Image credit: KISSmetrics
The above infographic from KISSmetrics showcases the disparity in men and women's color preferences.
Keep this information in mind when choosing your brand's primary color palette. Given the starkly different taste preferences shown, it pays to appeal more to men or women if they make up a larger percentage of your ideal buyers.
Related: 5 Ways Store Colors Can Influence Shoppers
Color Coordination + Conversions
Debunking the "best" color for conversion rates on websites has recently been a very popular topic (started here and later here). They make some excellent points, because it is definitely true that there is no single best color for conversions.
The psychological principle known as the Isolation Effect states that an item that "stands out like a sore thumb" is more likely to be remembered. Research clearly shows that participants are able to recognize and recall an item far better (be it text or an image) when it blatantly sticks out from its surroundings.
(The sign-up button stands out because it's like a red "island" in a sea of blue.)
The studies Aesthetic Response to Color Combinations and Consumer Preferences for Color Combinations also find that while a large majority of consumers prefer color patterns with similar hues, they favor palettes with a highly contrasting accent color.
In terms of color coordination (as highlighted in this KISSmetrics graphic), this would mean creating a visual structure consisting of base analogous colors and contrasting them with accent complementary colors (or you can use tertiary colors):
Image credit: KISSmetrics
Another way to think of this is to utilize background, base and accent colors to create a hierarchy(as Josh from StudioPress showcases below) on your site that "coaches" customers on which color means take action:
Image credit: StudioPress
Why this matters: Although you may start to feel like an interior decorator after reading this section, this stuff is actually incredibly important in helping you understand the why behind conversion jumps and slumps. As a bonus, it will help keep you from drinking the conversion rate optimization Kool-Aid that misleads so many people.
Consider, for instance, this often-cited example of a boost in conversions due to a change in button color:
The button change to red boosted conversions by 21 percent, but that doesn't mean that red holds some sort of magic power to get people to take action.
Take a closer look at the image: It's obvious that the rest of the page is geared toward a green palette, which means a green call to action simply blends in with the surroundings. Red, meanwhile, provides a stark visual contrast (and is a complementary color to green).
Related: What Does the Color of Your Logo Say About Your Business? (Infographic)
We find additional evidence of the isolation effect in a myriad of multivariate tests, including this one conducted by Paras Chopra and published in Smashing magazine. Chopra was testing to see how he could get more downloads for his PDFProducer program, and included the following variations in his test:
Can you guess which combination performed the best? (Hint: remember, contrast is important.)
Here were the results:
As you can see, example #10 outperformed the others by a large margin. It's probably not a coincidence that it creates the most contrast out of all of the examples. You'll notice that the PDFProducer text is small and light gray in color, but the action text ("Download for Free") is large and red, creating the contrast needed for high conversions.
While this is but one study of many, the isolation effect should be kept in mind when testing color palettes to create contrast in your web design and guide people to important action areas.
Why We Love "Mocha" but Hate "Brown"
Although different colors can be perceived in different ways, the names of those colors matters as well!
According to this study, when subjects were asked to evaluate products with different color names (such as makeup), "fancy" names were preferred far more often. For example, mocha was found to be significantly more likeable than brown--despite the fact that the researchers showed subjects the same color!
Additional research finds that the same effect applies to a wide variety of products; consumers rated elaborately named paint colors as more pleasing to the eye than their simply named counterparts.
It has also been shown that more unusual and unique color names can increase the intent to purchase. For instance, jelly beans with names such as razzmatazz were more likely to be chosen than jelly beans names such as lemon yellow. This effect was also found in non-food items such as sweatshirts.
As strange as it may seem, choosing creative, descriptive and memorable names to describe certain colors (such as "sky blue" over "light blue") can be an important part of making sure the color of the product achieves its biggest impact.
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Raising Capital? Answer These Questions to Score an Investor's Check
BY PETER COHAN
Between listening to students pitch their startup ideas and reviewing business plans from more established companies, I encounter many attempts to separate me from my cash. I'm in the midst of weighing one such pitch from a business software company (I'll call it BSC) whose owners have already won some customers and who are hoping it will grow much larger.
The types of things I'm asking and trying to figure out are akin to the type of questions that have gone through my mind many times before in reviewing a pitch for money.
In an effort to save time for the entrepreneurs and capital providers who are reading this, here are five questions that should be answered about a startup's business model before anyone makes a pitch for investors.
1. What is the customer's pain? BSC was founded by a set of technical geniuses who have demonstrated their ability to get ahead of others in the industry. BSC's product improves on the state of the art, but its business plan does not make it clear whether that improvement removes the pain for any person of particular note.
To raise capital, start with a story of how a customer is suffering and why your product will relieve that suffering better than anything else. So be sure to start your pitch with a story from a real person who is grateful that your product made her pain go away -- unlike any other product on the market.
2. Is the customer willing to pay more? BSC's business plan does not clarify how much it charges the typical customer or whether that price is higher or lower than the going rate for existing products of competitors.
To raise capital, be clear whether you're offering customers a much lower price for a solution similar to others on the market or a higher price than what competitors charge. If you're charging a higher price, potential investors need to know how your product's features translate into measurable economic benefits -- such as lower costs or higher revenue -- to justify that higher price.
If you're charging a lower price than the competition, be clear why you can make a profit at that price and how quickly you think your company will grow as a result of the better deal you're providing customers.
3. How long does it take to close a sale? To estimate a startup's future revenue and sales costs, an investor needs to know how much time will elapse between when the company gets asales lead and when this results in a customer paying for a product. BSC developed a map of its sales pipeline but it was missing some key details.
To answer this question, figure out where the best leads come from and who within a potential client's organization is involved in deciding whether to purchase your product. From there, interview each person and find out their roles in the process and the factors that influence their decision.
With that map of the sales process, estimate how much time it takes to close the typical sale and figure out if you have the right strategy.
4. How will your company grow? These days it takes $100 million in revenue for a company to sell its shares to the public. Needless to say, some companies have been acquired for significant amounts with very little if any revenue. But if you are trying to raise money, make it clear that your company is going to get big in the next several years and explain how that will happen with convincing detail.
BSC portrayed significant growth -- but not at big enough a scale to go public and not with sufficient detail to be persuasive. One way to do this is to target a huge market -- bigger than $5 billion -- and show how other successful startups that have targeted similar markets have scaled significantly. My favorite thing to see is 50 to 100 interviews with potential customers that convince me that you know how customers buy, why they will buy from your company and how those customer counts will grow over time.
5. How will investors profit? Investing in startups is complicated. If a company is successful, it will attract big money as it approaches within a year or two when it will be of such size that it can go public or be acquired.
But that very success means that people who bet on your company before this happens will suffer because their share of your company will be diluted by later investors.
BSC estimated that early investors would end up with much more money if it achieved its modest sales targets, but it did not explain how much a better-than-expected revenue outcome might dilute the shares of those original investors.
To be fair, the odds of success for a startup investor are very long and there are plenty of things that can go wrong. But when you are seeking a check from an investor, present a model -- stating clearly a set of realistic asssumptions from credible sources -- giving an estimate of how much money an investor will make under optimistic, pessimistic and middle-of-the-road scenarios.
Though I still need to be convinced that you are a great startup CEO, providing well-thought-out answers to these questions will increase your odds of raising capital.
André Rieu - And The Waltz Goes On
The 5 Whys
Eric Ries, entrepreneur-in-residence at Harvard Business School, explains how to find the human causes of technical problems.
Çok Başarılı İnsanların Kahvaltıdan Önce Yaptıkları 12 Şey
“Bir şey kesin yapılacaksa ilk olarak o yapılmalı!” diyor zaman yönetimi uzmanı ve “What the Most Succesful People Do Before Breakfast” kitabının yazarı Laura Vanderkam. Kitabında anlattıklarının arasından alınabilecek en önemli 12 şey şu şekilde:
1. Erken kalkıyorlar: Vanderkam’ın 20 üst düzey yönetici ile yaptığı anketin sonuçlarına göre üst düzey yöneticilerin %90’ı hafta içi 6’dan önce kalkmaktadır. Örneğin PepsiCO’nun CEO’su Indra Nooyi sabahları 4’te kalkmakta ve ofise her zaman sabah 7’den önce gitmektedir. Disney’in CEO’su Bob Iger saat 4.30’da kalkıp birşeyler okumaya başlamakta, Square’ın CEO’su Jack Dorsey 5.30’da kalkıp yürüyüşe çıkmaktadır.
2. Güne spor yaparak başlıyorlar: CEO’ların çoğu güne ilk olarak sporla başlamaktadır. Örneğin Xerox’un CEO’su Ursula Burns sabah 6’da bir saatlik yürüyüş yapmaktadır. Christies’in CEO’su Steve Murphy güne yoga ile başlamaktadır. Vanderkam’ın açıklamasına göre bu yöneticiler inanılmaz yoğunlar ve eğer spor yapmak için hemen hepsi kendisine zaman yaratıyorsa bu onlar için oldukça önemli olmalı.
3. Günün ilk saatlerinde en önemli projelerini gözden geçiriyorlar: Sabahın ilk saatleri herhangi biri tarafından rahat edilmeksizin çalışabileceğiniz en ideal zaman dilimidir. Örneğin strateji uzmanı Debbie Moysychn gün içerisinde sürekli son anda ortaya çıkan toplantılara katılmak zorunda olduğundan işlerini tamamlamakta güçlük çekiyordu. Bu zorluğun üstesinden gelmek için sabah 6.30’da kalkıp gündemindeki en önemli projelere bu zaman diliminde çalışmaya başladı.
4. Tutkuları ile ilgili kişisel projeleri üzerine vakit harcıyorlar: Eğer gün içerisinde sürekli katılmanız gereken toplantılar halletmeniz gereken işler varsa muhtemelen roman yazmayı ya da sanatla uğraşmayı erteleyebilirsiniz. Bu yüzden üst düzey yöneticiler resmi olarak iş saatleri başlamadan önceki saatlerde hobileri ile uğraşmak için kendilerine zaman ayırmaktadır.
5. Aileleriyle kaliteli vakit geçiriyorlar: Akşam yemekleri ne kadar yüceltilse de sabah kahvaltılarının da önemli bir aile toplantısı olmasını engelleyecek hiçbir durum yoktur.
6. Eşleriyle çok iyi anlaşıyorlar: Günlük işlerin yoğunluğunda akşamları yorgun olmak ve yemek, televizyon ile günü tamamlama ihtimaliniz yüksektir. Bu yüzden birçok başarılı insan kahvaltılarda eşleriyle çok daha kaliteli geçirmek için ellerinden geleni yapıyor.
7. Kahve içerken çevrelerini genişletiyorlar: Akşamları yemek için evde olmayı tercih ediyorsanız sabah kahveleri yeni insanlarla tanışmak için çok büyük bir fırsattır.
8. Kafalarını boşaltmak için meditasyon yapıyorlar: Başarılı insanların çevrelerinden beklentileri yüksek olduğu gibi bunun çok daha fazlasını kendilerinden bekliyorlar. Bu beklenti içerisinde yapılacak işler listelerinden kısa süreliğine de zihinlerini ayırmak için meditasyon yapıyorlar.
9. Şükran duydukları şeyleri kâğıda yazıyorlar: Ofise gitmeden önce şükran duydukları şeyleri listelemek başarılı insanların faydalandıkları ritüellerden bir diğeridir.
10. Sabahın erken saatlerinde plan yapıp günlük stratejilerini belirliyorlar: Büyük resmi düşünerek yapılacak işleri önceliklendirmek ve strateji belirlemek için sabahları kullanmak birçok başarılı insanın yaptıkları arasındadır.
11. Uyandıklarında ilk işleri e-postalarını inceleyip acil olanları yanıtlıyorlar: Gelen kutunuzu işe gitmeden boşaltmak işe gittiğinizde taze biri zihinle çok daha önemli işleri halletmenize çok faydalı olacaktır. Örneğin “The Happiness Project” yazarlarından Gretchen Rubin her sabah 6da kalkarak önce eposta kutusunu temizlemekte ardından ailesiyle birlikte kahvaltı etmektedir.
12. Haberleri düzenli takip ediyorlar: Başarılı insanların çoğu haber başlıklarını alıp sosyal medyadaki güncellemeleri takip etme işini kahvaltı öncesi hallediyor.
Norwegian sunrise
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