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Diary of a CEO Pt. 2

Writer's picture: Dylan PathiranaDylan Pathirana

Updated: Apr 7, 2024

If you haven't already checked out Pt.1, you can check it out here!


Pillar 2 - The Story

Useless Absurdity Will Define You More Than Useful Practical 

Often we are so wrapped up in trying to perfect the story we tell, but if we are telling a story that is the same as everyone else, we blend in and lose people's attention. Instead, we must realise that the story will be defined, not by all the useful and practical things, but by the useless absurdity associated with your brand. A great example of this is Redbull. When the rumour came out that their drink contained bull semen, most PR teams would've been in full force trying to shut the story down. Instead, Redbull saw it as a unique opportunity to provide free marketing which would be bold enough to differentiate from all the standard drink brands.

Normality is ignored absurdity sells

Create and cultivate ABSURD conversation starters and they will provide valuable publicity


Avoid Wallpaper At All Costs

Given the huge influx in content over the past decade, it is so easy to just blend in and become part of the wallpaper. Similar to the last law, Stephen emphasises that we must do everything to avoid blending in. This is largely due to a phenomenon called habituation. This is when the brain adjusts to repeated stimuli by downgrading its significance, in an effort to free up mental capacity. For example, the first time you see a car driving past you, you may get scared that it's going to hit you, but after multiple exposures, the brain realises it is not a threat and reduces the significance of the event.


Another key factor that can cause you to blend in is semantic saturation. This is when a meaning of a word becomes inaccessible due to repetition and the brain re-commits its resources to other things (same thing can happen to visual elements and our sight). For example, the word 'amazing' or 'outside the box' have lost their value in marketing because we have been exposed to them too many times. So, how do we avoid these factors? Do things differently. Great marketing is uncomfortable. It springs the dormant mind into a neurological frenzy. One example is fear. Scary images or words elicit more reaction from people. This is the reason why expletive book titles have become more and more popular, since they catch people attention and invoke a reaction that is out of the ordinary (e.g. The Subtle Art of Not Giving a F*ck & Everything is F*cked - Mark Manson and Unf*ck Your Brain by Faith Harper are just a few examples)


When marketing yourself or your brand, you must realise that there is a sweet spot between being familiar and comfortable and being repeatedly exposed/habituated. You must stand out of the crowd and be noticed.


You Must Piss People Off

Indifference is the least profitable outcome of a marketer. Get people to either love you or hate you! The goal is not to be average or mediocre but a definable and distinct brand. Do this by portraying a genuine and authentic version of yourself. If there is something you believe, say it. I believe this is one of the core reasons characters like Donald Trump have become so popular. They are polarising, and polarising people capture attention. It creates a debate, which builds engagement and gets people talking. Don't be afraid to be polarising.


Shoot Your Psychological Moonshots First

You might be thinking, what is a psychological moonshot? It is a small investment that drastically improves people's perception of you or your brand. This chapter explores the peak-end rule, which states that customers judge their experience on the high/low and then the feeling they have at the end. Therefore, we can capitalise on this by doing something positive at the end of an experience to improve our users/customers perception of the overall experience.


Another great example of a psychological moonshot is Idleness Aversion. This phenomenon details that people would rather wait longer and have something to do, than wait less time and be bored. Prime examples of this are all around us. Why do you think Google added the T-rex game when we loose internet connection, or Uber added the live tracking map? They are both to occupy us and provide certainty.


The final factor that I wanted to cover was uncertainty anxiety. This is when it's less psychologically stressful to know something negative is going to happen then to be left in uncertainty. For example, if an airline tells you that your flight is going to be delayed the morning of your flight, that is a better outcome, than if they tell you right before. So, be transparent and tell your customer early. Put their minds at ease.


Ultimately, this chapter is a great reminder that rather than investing in improvements in tech, we should instead invest in psychology and design thinking.


Rather than build a whole new train to make people happy, just add on-board wifi.

Friction Can Create Value

This fascinates me. It is a true example of just how crazy human psychology is. We often think that we need to add features and increase convenience to get more people to use our product. However, this law highlights that this is not the case. In essence, "value" does not exist. It is a perception we reach with exceptions we meet, so by adding friction, we alter perceptions. A great example of this is Redbull. They purposefully make it taste bad because people feel like enduring the bad taste must mean it 'works' and gives them the performance they need.


Making things easier isn't necessarily the right path, sometimes you have to increase friction, wait times and inconvenience to achieve the same increase in perceived value.

Back in the 1950s, General mills created a Betty Crocker cake mix that had all the ingredients and only required water to be mixed in. It's ease and simplicity meant that it was sure to be a winner....but it wasn't. Why? American housewives felt guilty. They were getting so much praise for a cake that they put such little effort into, so they stopped using the product. The solution? General Mills created friction by removing the powdered milk and eggs from the cake mixes so that the customer felt like they were still putting in effort and not like cheating.


Sometimes, you need to subtract from your product for people to truly value it. Don't be afraid to remove features because friction can create value.


The Frame Matters More Than The Picture

The way that something is packaged has a big impact on how it is received. This is because how something is framed affects how consumers perceive and value it. Probably the best example of this is Apple. Apple stores are like art galleries with their products framed to be premium and upperclass. The stores are stylish and the products are well lit. They also show a small number of items which portray a sense of scarcity. Even if you packaged a mediocre electronics device the way that Apple does, it would still feel like a premium product just based on its packaging. Now you might think that these psychological tricks are deceiving, but framing isn't lying, it's about telling the facts in a compelling way.


Use Goldilocks To Your Advantage

This another one of my favourite takeaways from the book. The Goldilocks principle essentially says that by presenting two 'extreme' options next to the one you actually want to sell, you will make it appear more attractive. This is a common tactic employed by real estate agents. They will show you a cheap and scrappy house which you definitely don't want, then they will show you a glamorous house that is quadruple your budget and then finally they will show you the house they actually want you to buy. By doing this, it makes you think it is the best property. An additional step to this law is to price the middle option (preferred) closer to the low option. This makes it seem like it is better value for money. For example:

  1. You can get A for $15

  2. You can get A & B for $25

  3. You can get A, B & C for $75

You would rather pick option 2 because its better value than both of the other options, even if the other 2 are heavily manipulated.

Context creates value - so choose the right context

Let Them Try And They Will Buy

Free trials are becoming a big thing and one reason is due to the endowment effect. This is a cognitive bias that causes people to overvalue something because they own it. Once again, a company which has mastered this is Apple. They create this ownership experience in-store by allowing customers to use the products and not pressuring them to buy. People get to play around on the devices which makes it much easier to visualise them owning it. Once this happens, they will want it.

Through the lens of ownership, the ordinary becomes extraordinary

This shows that framing is important and by letting customers to interact with your product, they will be more likely to buy it.


Fight For The First 5 Seconds

We are undoubtedly in an attention economy. Everything we interact with is trying to take a portion of our time and attention. Social media and the instant dopamine hits we get from it is reshaping our cognition. The average attention span has dropped from 12 to 8 seconds (2015). This means that if you are one of the millions of things trying to capture someones already limited attention, you have 5 seconds to make an impact and stand out from the crowd.


It is also vital to understand that the audience doesn't care about you or your product. It is your job to make them care. You need to grab their attention early so that they keep on watching/listening long enough for you to make your point and sell your product.

 

I hope you enjoyed this summary, if you have any questions feel free to comment down below or shoot me an email: dylan.pathirana@gmail.com


See you next week for Pillar 3!






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