Sharing a few of our 24 principles of behavioural economics
With arrival of Nudgestock 2021 we thought we’d share a few of the behavioural principles from our workshop ‘Behave Yourself’.
Inspired by Thaler, Kahneman, Sutherland, Ariely, Cialdini, Shotton and more leading lights of Behavioural Science, our workshop poses 24 questions to your business, each based on a key principle of behavioural economics. The goal is to generate breakthrough ideas as well as small shifts that can lead to significant gains.
After all, if you can uncover hidden human truths, the chances are that you are not currently benefiting from them. And neither are your competitors.
Principle #1 – What’s the real why?
What are the underlying, instinctive reasons why people buy your products and services? Or conversely, why don’t they buy them?
As humans, 80% of what we do is controlled by our sub-conscious, or ‘autopilot’. We think we make rational buying decisions, but really we trust our gut instinct to do most of the work.
Do men of a certain age buy expensive bikes to get from A to B, for fitness or to show off to their mates? If you’re selling bikes you might not be selling transport. You could be selling status, escapism, wellbeing…
How has Covid-19 changed our underlying needs? Health and safety – both physical and mental wellness are top priorities but also trust, support, care, community, sustainability, control, fun, escapism…
If you can understand these underlying motivations or barriers you can make your marketing much more powerful.
Principle #5 – Do you connect with your customer’s autopilot?
It’s hard work for humans to come out of our ‘System 1’ autopilot mode and have to actually think.
People spend 10% more when using contactless cards. How can you simplify your customer experience? When do you annoy your customers by making them have to think too hard? How can you make your information and instructions easier to use?
Principle #13 – Honesty pays
Flaunt your flaws and make your weaknesses your strengths.
It not only shows that you’re human, but honesty is an appealing and rare attribute.
Principle #17 – Anchoring
The first piece of information we receive on a subject has the biggest influence on our decision making.
Savvy restaurants lead their wine list with a more expensive bottle of wine in order to anchor your price point expectations at a higher level.
Where can you put your brand in pole position? Can you prime your customer with an anchor point that encourages them to upgrade their choice?
Get in touch if you’d like to find out how creative thinking could unlock the potential in your business:
