Explore every episode of The Brainy Business | Understanding the Psychology of Why People Buy | Behavioral Economics
Dive into the complete episode list for The Brainy Business | Understanding the Psychology of Why People Buy | Behavioral Economics. Each episode is cataloged with detailed descriptions, making it easy to find and explore specific topics. Keep track of all episodes from your favorite podcast and never miss a moment of insightful content.
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Pub. Date
Title
Duration
10 Apr 2025
487. What We Value
00:42:03
In this episode of The Brainy Business podcast, Melina Palmer welcomes Emily Falk, author of the insightful book, What We Value. Together, they dive deep into the concept of value, exploring its complex layers beyond monetary aspects and its profound impact on our relationships, society, and business practices.
Emily, a leading expert in behavior change and persuasion, shares her extensive research on how our brains calculate value and make decisions. She discusses the interplay between self-relevance and social relevance in our choices, illustrating how these factors influence not only personal behaviors but also the way ideas spread and are shared among individuals. With compelling examples, including the story of NBA player Ernie Grunfeld, Emily emphasizes the importance of framing and understanding what drives our decisions.
In this episode:
Discover the intricacies of the value calculation and how it affects everyday choices.
Learn about the role of self-relevance and social relevance in decision-making processes.
Explore how framing messages can enhance the likelihood of sharing information.
Gain insights into the psychological strategies that can help reduce defensiveness and enhance receptivity to new ideas.
Understand the broader implications of value in business and personal relationships.
Get important links, top recommended books and episodes, and a full transcript atthebrainybusiness.com/487.
Looking to explore applications of behavioral economics further?
447. The Hive Mind at Work: Transforming Organizations with Dr. Siobhan McHale
00:39:14
In this episode of The Brainy Business podcast, Melina Palmer welcomes Dr. Siobhan McHale, author of The Hive Mind at Work. Siobhan's fascination with bees from her childhood in Southern Ireland led her to explore human ecosystems and the power of group intelligence in transforming workplaces. With over 30 years of experience, she has guided leaders in creating agile and productive environments, drawing from her role as an executive in charge of transformation at international firms like ANZ Bank.
Throughout the episode, Siobhan discusses the concept of the hive mind and its application in business, emphasizing the importance of understanding group intelligence (GQ) alongside traditional IQ and EQ. She shares insights from her book, including case studies from her career, and explains how organizations can overcome challenges by diagnosing patterns and reframing roles. The conversation also delves into the nine laws of group dynamics and the role of storytelling in facilitating change.
In this episode:
Discover the significance of group intelligence (GQ) in modern workplaces.
Learn about the nine laws of group dynamics and how they can transform organizations.
Explore the parallels between bee behavior and business ecosystems.
Understand the role of storytelling in driving meaningful change.
Gain practical insights into diagnosing and addressing group dynamics issues.
Show Notes:
00:00:00 - Introduction Melina Palmer introduces Dr. Siobhan McHale and the topic of group intelligence in the workplace.
00:03:15 - Siobhan's Background Siobhan shares her journey from a small village in Ireland to a career in organizational psychology and transformation.
00:09:45 - The Hive Mind Concept Discussion on the inspiration behind The Hive Mind at Work and the lessons from bees.
00:15:30 - IQ, EQ, and GQ Explanation of group intelligence and its importance in navigating complex business environments.
00:22:00 - Diagnosing Organizational Patterns Insights into identifying and addressing hidden patterns in workplace dynamics.
00:30:00 - Case Study: ANZ Bank A detailed look at the successful transformation of ANZ Bank using group intelligence principles.
00:38:00 - The Nine Laws of Group Dynamics Overview of the laws and their application in business contexts.
00:45:00 - Storytelling and Change The role of storytelling in making complex ideas accessible and memorable.
00:52:00 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
The physical representation of concepts is an important tool to use in your business. Things like colors and shapes can be recalled by our brains and associated with other non related things. This topic is really an amalgamation of other concepts, but it’s still a valuable tool to understand and use when communicating about your business. This episode gives examples of making concepts tangible, and their practical applications in business.
This topic is the last main concept from my research paper that I announced last week. I also gave tips on running experiments like: keep it small, be thoughtful, and test often. I am super excited about next week, because I’ll finally be sharing my study on on increasing savings behavior and its results.
And...speaking of exciting, the Brainy Pricing Course goes live Monday, September 9! Learn all about it and save with special discount codes below:
[04:59] This isn't really a topic you can easily look up. It's more of an accepted premise. The physical representation of concepts is an amalgamation of various other concepts.
[05:35] The brain works on associations.
[07:47] Colors and shapes bring a physical presence that can be recalled easier than words. Your brain has been trained to recognize this physical representation of the concept of street signs (as explained here).
[08:56] Logos are physical representations of the concept of a business.
[09:27] The physical manifestation of the brand makes the business more real in your mind because there is a logo to relate to.
[10:21] This is not exactly the same as anthropomorphism, which is when animals or objects are given human-like tendencies; it can be a similar concept because it helps you relate to the item in question.
[10:52] Abstract concepts are everywhere in business, and they can easily cause miscommunication in conversations or messaging. Providing a physical reference point makes everything feel more real.
[15:16] I did not want to get rid of my DVDs during a decluttering session. The reason why was because the physical, tangible, representation – the box and the item itself – was tied to my emotional center and triggered loss aversion.
[16:06] Where could you inject physical form we're only concepts exist in your business today?
[16:48] How Progressive took the concept of insurance and made it tangible.
[18:41] When you take something from conceptual to tangible, it makes it easier for the brain to categorize, relate, and remember.
[19:19] Pictures, logos, and icons make your business and its features feel real.
[19:29] Physical representation can help remind you of associations that you have made previously or that are important to you.
[19:56] Physical items are a constant reminder to your brain.
[21:57] You can make physical items that remind people of your business without having your name plastered all over them, that will be subtle reminders of you and your business.
[22:04] A strong brand is able to live through the lack of words and evoke feelings – they leave an impression even without their name.
[23:31] What could your business do to be a constant association and reminder in the brains of your customers?
[25:01] I share a credit union concept where the idea of using logos on items could have gone very wrong. Keep in mind that small associations matter.
[25:53] For your business, consider the emotions you want to convey – the things you want people to think when they consider your brand. Or, when they might be most likely to need your brand. What can you provide that will help them and remind them of you?
[27:10] You can also create visuals around what you want to do to help achieve your goals. What you surround yourself with has a HUGE impact on your approach to life, business and your success. This is priming in action.
[27:32] I want to help you surround yourself with the right physical representation of the concepts you care about to help you be successful.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
428. Habits Unveiled: The Science of Good and Bad Habits with Dr. Wendy Wood (Refreshed Episode)
00:46:24
In this episode of The Brainy Business podcast, host Melina Palmer revisits her insightful conversation with Dr. Wendy Wood, author of Good Habits, Bad Habits. This episode dives deep into the psychology behind habits, exploring how they are formed, maintained, and changed. Wendy, a leading expert in behavioral science, shares practical tips and research-backed strategies to help you understand and harness the power of habits in your personal and professional life.
Melina and Wendy discuss the foundational role habits play in our daily routines and decision-making processes. They emphasize the importance of recognizing both good and bad habits and provide actionable advice on how to reinforce the positive ones while mitigating the negative. The episode is packed with real-world examples, including how small changes in environment and behavior can lead to significant improvements in habit formation and maintenance.
In this episode:
Understand the basics of habit formation and the role of context and rewards.
Learn strategies to make good habits easier and bad habits harder.
Explore practical examples of habit changes, such as altering morning routines and fitness habits.
Discover the impact of environmental cues on habitual behavior.
Gain insights into how businesses can leverage habit science to improve customer engagement and satisfaction.
Show Notes:
00:00:00 - Introduction Melina introduces the episode and highlights the importance of understanding habits in both personal and professional contexts.
00:04:12 - The Role of Habits Wendy explains the foundational role of habits in our daily lives and how they operate on an unconscious level.
00:09:30 - Context and Rewards Discussion on how habits are formed through context and rewards, with examples like morning coffee routines.
00:15:20 - Disruption and Opportunity The impact of the COVID-19 pandemic on habits and how disruptions can create opportunities for new habit formation.
00:21:45 - Practical Strategies Tips for making good habits easier and bad habits harder, including environmental adjustments and rewarding behaviors.
00:30:10 - Habit Formation in Business How businesses can leverage habit science to improve customer engagement and satisfaction, with examples from retail and fitness industries.
00:40:00 - Case Studies and Research Wendy shares intriguing case studies and research findings on habit formation and change.
00:50:30 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
25. Why Burnt Popcorn Has Derailed So Many Meetings - On The Sense Of Smell
00:34:21
This behavioral economics podcast continues our series about the five senses. Last week, I talked about the sense of sight. This week I’m talking about the sense of smell. No matter what type of business you have, these episodes will apply to you. The senses are all powerful and create memories the brain uses to make decisions, and decision making is a big part of successful business.
Understanding how our brains use past experience to interpret the world around us is super important when it comes to understanding how to integrate stimuli from our senses in business. We have all experienced a certain scent bringing back a memory. Today, I talk about the sense of smell and how awareness of it can help make your business better.
[09:48] The sense of smell is made up of olfactory bulbs, which are part of the limbic system.
[10:06] The sense of smell is one of our oldest senses, and it connects directly to memories and emotions.
[10:17] It's one of the first senses we use as infants, and it ties to certain emotions and memories by the time that we are five years old.
[10:43] Our sense of smell developed through evolution to help our species survive. We can detect danger through our sense of smell, and we can find our children in the dark.
[11:35] Molecules of items separate from the item in question (like bread baking) and those little pieces travel into our noses and are read by our olfactory epithelium (which are like the taste buds of our nose), sending a direct message to the brain.
[11:55] Sight, sound and touch do NOT have this connection, so they are not as closely linked to memories or emotions.
[12:19] Adult humans can distinguish between approximately 10,000 unique odors using 40 million different olfactory receptor neurons.
[12:54] Because it has a direct route to the limbic system, certain scents can trigger fight or flight while others bring up vivid memories and others can make your mouth water.
[13:27] Scent is also linked to physical attraction and our noses are trained to like people who are dissimilar to ourselves.
[14:46] Smell is linked to where, when and why – thus the power of memories and really taking us back.
[16:24] Being able to understand how these memories are formed and how to create positive associations can help with your business and customers.
[16:47] Most of our scent memories are formed when we are around the age of five.
[19:59] Scent marketing and scent logos are a thing.
[22:02] Melina shares a story of how smelling Lush products made her hungry for P.F. Chang's food.
[22:53] ScentAir made grocery store sales go up by 7%. 83% of shoe shoppers preferred a floral scented room when shopping and valued the shoes at a higher price.
[23:40] An experiment with scented slot machines. Casinos have branded scents. A gas station was able to increase coffee sales by 300% with coffee scented air.
[25:08] Rosemary essential oil made test subjects perform tasks faster.
[25:23] People can remember a scent and its related memory with 65% accuracy after 12 months.
[25:47] An inhaled vanilla aroma decreased anxiety for 63% of MRI patients.
[26:42] If you have a physical location, the scent you infuse makes a huge difference and you want to make sure it ties in with your goals.
[27:38] There are companies who are experts on scent branding. You can actually hire them to help you choose a scent for your business.
[28:53] Scents are used to create an experience, and it will be a different experience for each business.
[30:10] Bad scents can impact behavior and make it difficult to focus on anything else.
[31:10] Our world and the way we think about it impacts everything we do. Our memories – and particular scents – can trigger emotions.
[32:05] Even showing a picture of someone smelling something can trigger mirror neurons.
[34:01] If you don’t sell food and you don’t have a physical location, it is still important to know the power of scent. You can use the power of sent to prime memories. Just be smart and intentional about it or things can backfire.
[36:43] Next week on episode 26 we are diving into the sense of taste.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
248. How to Set, Achieve & Exceed Brainy Goals (Refreshed Episode)
00:32:49
Today’s episode is all about brainy goals — how to set them and think about them to put you on a path to success, instead of inadvertently setting yourself up to fail. Now, you would never intentionally set up goals that won’t work out, but our brains are programmed in a way that makes it so we consistently stack the cards against ourselves. We try to do too much, spread ourselves too thin, rely on willpower to get us through, and don’t understand the importance that tiny habits play in our ability to accomplish big things.
At this time of year (this is the second to last episode before we close out 2022) most people are thinking about planning and what the next year will bring for them. How things will be different, what they want to accomplish, what habits they want to change if they will plan resolutions (and if so...what they are), and the like. That’s why I decided to refresh this episode from 2019 right now. It felt like the perfect way to end the year, especially in light of this coming Friday’s topic! That episode is a panel of sorts that incorporates expert advice on how to have a happier 2023 and set your year up for success.
So to get you in the right mindset preparing for that, and just because it is probably something you are already thinking about right now, it felt like the right time to talk about goals. I get a lot done — two podcast episodes a week, a weekly newsletter, two books in less than two years, teaching and creating my courses for Texas A&M, speaking, consulting, and still having time for an enjoyable life with my family. The only way that is possible is by tackling and thinking about goals in a brainy way. Listen in to hear all my tips and tricks.
Show Notes:
[00:23] Today’s episode is all about brainy goals — how to set them and think about them to put you on a path to success, instead of inadvertently setting yourself up to fail.
[05:17] We all have goals and are all optimistic that we will achieve them someday. The truth is that if you don’t set your goals up correctly there is a good chance life will move too fast and you won’t achieve what you are capable of.
[05:52] There are three main tips for setting and achieving brainy goals. Define your goals and limit them to know more than three. Break down the path to achieving those goals into small steps. Say no to everything else.
[07:11] The opposite of distraction is traction.
[09:55] Step one is to limit and set your goals. You first need to list out every goal you would like to accomplish in the next 5, 10, or 50 years.
[10:48] Now you have to pick three. If they make sense to combine and make the goal a little more amazing that’s okay but make sure it’s logical.
[12:07] Your brain doesn’t like change. It is scared of it. Keeping you stuck and dwelling on making things perfect or being really sure are tactics by your brain to delay change.
[14:06] It is important to declare and own those top goals so that everyone in your life knows what is most important and is on board with that.
[16:47] Melina shares a story about her taking a walk with her husband to the mailbox and Puerto Vallarta.
[19:25] We are sticking with goals and priorities we set in a cold state because they are what matter in our life.
[20:53] Once you know what those top three are the next step is to break each of those three goals into the small steps it will take to get there.
[22:54] You can’t do it all at once. There are a few ways you can break those down. One way I recommend is breaking the big lifetime into subgoals for the year.
[24:33] Start small with the thing that is impossible to justify not doing.
[26:17] Every goal is reached in lots of small steps. Goals are the sum of all the effort it took to get there. If you don’t plan for the small steps they won’t happen.
[26:49] Remind your brain of the top three as much as possible in as many different ways as you possibly can.
[28:17] You need to be incredibly particular about what you surround yourself with in your life, in your life, and everywhere.
[30:49] Reminding your subconscious of your goals as often as possible will help keep you on track.
[31:14] Determine what three things are really important to you. Shout them from the rooftops and put every single egg in their baskets.
[27:41] Melina’s closing thoughts
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
430. Unlocking the Secrets of Behavioral Change with Dr. Katy Milkman (Refreshed Episode)
00:48:24
In this episode of The Brainy Business podcast, host Melina Palmer welcomes Dr. Katy Milkman to discuss the intricacies of creating lasting behavior change. Katy, a professor at the Wharton School and co-director of the Behavior Change for Good Initiative, shares insights from her book How to Change.
Melina and Katy discuss fresh starts, temptation bundling, and the importance of understanding the underlying barriers to change. They also cover the surprising benefits of giving advice to others as a means of boosting one's own confidence and motivation. Through engaging stories and practical examples, Katy illustrates how small, thoughtful interventions can lead to significant improvements in behavior and outcomes.
In this episode:
Explore the concept of fresh starts and how they can motivate behavior change.
Understand the power of temptation bundling to create lasting habits.
Learn about the psychological benefits of giving advice to others.
Discover the importance of identifying the right barriers to change for effective interventions.
Gain insights into Katy Milkman's research and practical applications for behavior change.
Show Notes:
00:00:00 - Introduction Melina introduces the episode and the topic of behavior change with Dr. Katy Milkman.
00:04:30 - Katy Milkman's Background Katy shares her background, her role at the Wharton School, and her work on the Behavior Change for Good Initiative.
00:09:45 - Fresh Starts Katy discusses the concept of fresh starts and how they can be leveraged to motivate behavior change.
00:15:20 - Temptation Bundling Melina and Katy explore the idea of temptation bundling and its effectiveness in creating lasting habits.
00:21:18 - Giving Advice to Others Katy explains the surprising benefits of giving advice to others and how it can boost one's own confidence and motivation.
00:27:54 - Identifying Barriers to Change The conversation shifts to the importance of identifying the right barriers to change for effective interventions.
00:34:06 - Real-World Applications Katy provides examples of how her research can be applied in real-world scenarios to improve behavior and outcomes.
00:40:22 - The Role of Mindset The discussion highlights the role of mindset in achieving behavior change and the power of believing in oneself.
00:46:15 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
168. Using the Senses to Increase Sales, with Michelle Niedziela of HCD Research
00:42:31
Today I am excited to introduce you to Dr. Michelle Niedziela, VP of Research and Innovation at HCD Research. She is also an editorial board member of the Neuromarketing Science and Business Association (or NMSBA) and part of the brains behind the upcoming NeuroU Conference which is taking place virtually this year, September 13-15, 2021 (and I am sure will happen in future years as well in case you are listening to this later). Michelle will talk about it in the conversation as well, but I am very excited to say that I am going to be a speaker at the conference this year, so it is definitely the time to register and come join us!
In today’s episode, Michelle shares her expertise in the senses – particularly smell and taste – and how important they are for brands. Ever thought about what moisture smells like? Or what scent will make people prefer one towel over the other? Listen to learn this and more in today’s episode...
Show Notes:
[00:06] In today’s episode I’m excited to introduce you to Dr. Michelle Niedziela, VP of research and innovation at HCD Research.
[03:13] Michelle shares about herself, her background, and how she got into behavioral science.
[05:08] The majority of her education background is more around taste and smell. Most people don’t think about taste and smell too much or realize how important it is in their lives.
[06:37] She has worked in academia with rodents looking at genetics. She built her career for over ten years studying rat and mouse models of feeding behavior and genetic influences until she developed an allergy to rats and mice.
[08:16] Then she ended up taking a job as a Senior Scientist at Johnson & Johnson leading their behavioral science and innovation program for taste and smell.
[08:54] People don’t really realize how important the senses are in product design and development.
[10:29] Product and brand is so much more than advertising and logos. It really is the product experience as well. You can lead people with sensory clues.
[13:18] In order to ensure consumer satisfaction and success of the product experience you really have to make sure all the senses align. Does it fit the brand?
[15:24] Michelle shares how fragrances can have an effect on the product experience.
[16:24] Sensory branding is a very interesting world.
[17:40] Brand harmony can bring it all together to make sure it is creating an overall perception.
[20:03] They have a lot of different questions that come to them. They are the problem solvers that come in to help their clients.
[22:02] It is about finding the right combination of tools to uncover and meet the consumer needs.
[24:18] Michelle and her team also look at packaging and people’s perception of packaging. The words, color, and texture all drive perceptions and build a picture.
[26:24] In marketing and brand strategy we feel like we need to do more and be everywhere, but then you’re nothing to nobody.
[28:27] You don’t want to alienate your consumer.
[29:34] Michelle shares about creating your sensory footprint.
[30:18] The larger the sensory footprint the stronger you are to grab that nostalgia. Sensory is a form of communication.
[32:44] There is a lot of interesting research out there with sensory and food science. The size, color, and weight of the plate can influence your enjoyment of it, how you rate it, and how much you eat overall.
[34:48] As long as your brand is strong enough in their understanding of what your ultimate goal is, you can increase the goal and perception, but it does require a lot of research.
[36:17]NeuroUis a FREE online event this year where they bring in experts to talk and educate about current topics. Come join us!
[38:19] Melina is going to be a speaker atNeuroUthis year - hooray!
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
285. Bringing Behavioral Economics to the Spanish-Speaking Community with Carlos Hoyos
00:46:46
In this episode of the Brainy Business podcast, host Melina Palmer interviews Carlos Hoyos, a behavioral scientist and content creator from Latin America. They discuss the challenges of creating content in a non-English language and the importance of making behavioral science accessible to a wider audience. Hoyos shares his approach to creating content, including his YouTube channel, Behavioral Pills, and his e-learning platform, which offers one-hour sessions on various behavioral science frameworks. The conversation highlights the need for more diverse voices in the behavioral science community and the opportunities for growth and learning in different regions around the world.
Show Notes:
[00:42] Welcome Carlos Hoyos, Senior Behavioral Designer at BeWay, and Co-Founder at Kestudio.
[02:19] Behavioral science is important everywhere.
[03:42] Carlos shares about himself, his background, and the work he does in behavioral science.
[05:35] In recent years he has dedicated his whole career to developing his knowledge in terms of behavioral science and design and specifically to find ways to apply it in business.
[07:15] Carlos was named Content Person of the Year by Habit Weekly. (Merle van den Akker – last week’s guest – and I were both finalists as well – congrats Carlos!)
[10:15] There are many companies now that are investing in behavioral science in Latin America.
[13:12] He sees himself as a content curator because he shares what other good professionals are doing.
[14:46] People love to talk about human behavior. It really connects to people.
[16:36] He found that there is so much information out there in English. Instead of being just one more, he decided to focus on Spanish because there is so little in Spanish right now.
[19:32] Daring to do the thing no one else has done yet is what helps people to stand out.
[22:20] Carlos shares some of the work he is doing with BBVA. They have merged behavioral science into day-to-day decision-making.
[24:53] One project they worked on at BBVA was with credit cards. People weren’t interested in applying for the credit cards because of a lack of trust – they wanted to change that.
[27:34] Experimentation and testing are a must in their projects.
[29:20] In 2022, they did more than 130 experiments in different areas of the business and that actually represented an extra income of around 45 million euros in the year.
[30:46] There are so many little things where behavioral science can make a very big impact in any type of business all around the world.
[32:20] There is plenty of opportunity and room for growth in behavioral science – in the US and around the world.
[35:16] The stress on the brain when you are trying to hurry and rush leads to problems that have to be fixed down the line.
[37:23] Experimenting and testing every decision you want to make will help you make better decisions now and for the future.
[38:42] If you torture the data long enough it will confess to anything.
[41:34] Carlo’s Behavioral Pills are one-hour e-learning sessions where he explains things concepts he considers basic for a behavioral scientist to know.
[43:33] Melina’s closing thoughts
[45:03] Don’t be scared of being first. There are lots of people like you who have done this in their own way or their own language.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
In episode 403 of The Brainy Business podcast, neuroscientist and physicist Kelly Clancy, through her extensive experience at MIT, Berkeley University College London, and DeepMind, provides a profound exploration of the psychology of games and their influence on behavior and decision-making. Kelly's expertise in neuroscience and game design is evident as she connects concepts from these fields to offer a comprehensive understanding of the topic. Her book, Playing with Reality, delves deep into the history and significance of games, emphasizing their role in shaping human behavior and thought processes.
Throughout the conversation, Kelly highlights the impact of games in shaping behaviors, the significance of balancing innovation with maintenance, and the power of experiential games in fostering empathy and understanding. She presents valuable insights into the role of games in shaping economic concepts, fostering understanding, tolerance, and better conversations, and the strategic and innovative aspects of game design for creating new systems and marketplaces.
Kelly's examples and anecdotes effectively illustrate the broader implications of gaming in various contexts, making it clear that games are not just about entertainment but can also have profound effects on decision-making and societal dynamics. Kelly's expertise and passion for the subject shine through, making the episode an engaging and informative exploration of the psychology of gaming.
In this episode, you will be able to:
Explore the profound influence of games on human culture and societal norms.
Understand the intersection of neuroscience and artificial intelligence in shaping game design and player experience.
Discover the application of behavioral economics in driving strategic decision-making and consumer behavior within businesses.
Trace the historical significance of games and their impact on modern thought and innovation.
Learn the art of designing effective incentive systems to drive organizational performance and foster innovation.
Show Notes:
00:00:00 - Introduction Melina introduces Kelly Clancy, author of Playing with Reality, and sets the stage for a conversation about the history and impact of games on society.
00:02:30 - Kelly's Background and Interest in Games Kelly shares her background as a neuroscientist and physicist and her interest in the history of games, which stems from her work at DeepMind and her observations of how games influence scientific thought.
00:05:51 - Definition of Games Kelly defines games as systems with a goal and restrictions on how to achieve that goal, highlighting the importance of following rules and how games have been influential in shaping behavior and learning.
00:09:00 - Influence of Games on Behavior and Dopamine System Kelly discusses how games can shape behavior through the manipulation of the dopamine system, leading to behaviors that may not align with personal values, and the potential dangers of games encouraging individuals to abandon their values to win.
00:13:38 - Designing Systems and Mechanism Design Kelly explores the concept of mechanism design and the importance of thinking at a systems level, drawing parallels between game design and designing systems to elicit specific behaviors, with examples from the tech industry.
00:16:25 - Designing Games for Honesty Kelly discusses the goal of designing games where everyone can win by being honest. The importance of incentivizing the right behaviors within organizations is highlighted.
00:17:54 - Incentivizing Different Strategies Kelly suggests incentivizing different personality types within organizations to balance innovation with maintenance work. She emphasizes the need to reward solid, clever work alongside innovation.
00:21:31 - Sports and Games The guest discusses the historical significance of sports as a physical conditioning for conflict resolution. She explores the idea of trying on different personalities in games and how it can lead to self-discovery.
00:24:54 - Fascinating Aspects of Games The conversation delves into the experiential nature of games and how they provide a unique exploration of agency. Anecdotes about the powerful impact of immersive games on decision-making are shared.
00:27:29 - Reality Shows and Games The guest draws parallels between modern reality shows and historical events like the Renaissance Venice carnival. The discussion centers on how reality shows allow participants to try on different personas and make decisions based on role-playing.
00:32:47 - The Power of Trust and Perception Kelly discusses the importance of trust and perception in games and how players must navigate interactions without hearing the other person's voice.
00:33:45 - Understanding Tolerance and Safe Spaces The conversation delves into the importance of tolerance and having a safe space to explore different scenarios and perspectives, which can lead to positive lessons beyond the game.
00:36:00 - The Role of Play in Learning and Tolerance Exploring the universal play language among animals and its impact on learning, tolerance, and intelligence expansion, as well as its ability to motivate teams and individuals.
00:37:43 - The Business Value of Games Kelly explains the theoretical and practical value of games in business, including the use of game design in creating new systems and the role of games in negotiation, strategy, and innovation.
00:41:34 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
So much happened in 2021 at The Brainy Business and in the Palmer household, it has been fun to reflect on it for this episode. Here are a few highlights:
In January, I started teaching a new class at Texas A&M University through the certificate in Applied Behavioral Economics via the Human Behavior Lab.
My first book,What Your Customer Wants and Can’t Tell Youcome out on May 11, 2021, and I got to be part of some amazing events this past year sharing about it and other parts of my work.
And, while I didn’t talk about it much publicly, I had a baby in 2021! The Brainy Baby, Mr. Hudson Grey Palmer, was born on August 9th and is a fantastic addition to our family.
Join me as we take a look back at all the excitement and top content of 2021. I hope you will enjoy this walkthrough of last year as much as I did.
Show Notes:
[00:06] Today’s episode is showcasing the best content from The Brainy Business in 2021.
[03:49] Melina had a baby in 2021! The Brainy Baby, Mr. Hudson Grey Palmer was born on August 9th. Look how cute he is. :)
[07:51]Top Countries Downloading The Brainy Business: The US is first, followed by UK, Canada, Australia, India, Germany, Brazil, Mexico, the Netherlands and Spain.
[09:02] Top Ten States: Coming in at number 10 Pennsylvania then New Jersey at number 9, Virginia at number 8, Illinois at number 7, Ohio at 6, Florida as number 5, New York at number 4, Washington at 3, Texas at 2, andCalifornia still with the top most downloads of 2021.
[10:32] Of the 470,000 total downloads of the show so far, 250,001 have come from the US. That means nearly half of our downloads are international, which is so cool.
[12:53] Of those more than 175,000 downloads of the show in 2021, and now with 184 episodes of content to choose from, we get our top 10 episodes of the year, starting with episode 136 onTemptation Bundling.
[14:20] Next we haveepisode 165, when Matej Sucha of Mindworxand insideBE came onto the show discussing research they have done and the case studies of insideBE, which launched in 2021 as well.
[15:32] At the number 8 spot we haveepisode 158 with Matthew Conferletting you know the three things everyone needs to do before you decide.
[16:12] Next, at number 7 we haveepisode 160, an interview with Matt Johnson,coauthor of Blindsight.
[17:20] At number 6, we have the only foundations episode to make the top 10 this year, and it was a relatively new one which is pretty cool. This is episode 171 onThe Paradox of Choice.
[18:33] Our top 5 kicks off withepisode 164, an interview with Amy Bucherabout her fantastic bookEngaged, and so much more about her work in applying behavioral economics.
[19:32] At number 4, isepisode 140, an interview with Benny Cheungwhere we talked about some research he did at Dectech that was also featured in chapter 28 of my book, which showcases the importance of testing.
[20:55] At number 3 we haveepisode 159, a behavioral economics analysis of Amazonand coming in at number 2 isepisode 144, a behavioral economics analysis of Disney.
[22:22] Our top most downloaded episode of 2021, which wasepisode 157, my interview with Robert Cialdinion his new and expanded edition ofInfluence, which includes a whole new 7th principle of persuasion.
[23:27] One of my main tips is to play the long game and form great relationships so pitching is easier.
[26:33] There has never been a month of the podcast where every episode didn’t get at least 1 download.
[27:24] Let’s dig into that top 10 of all time list starting with number 10, which wasepisode 111, Avoiding everyday work disasters, with Gleb Tsipursky.
[28:24] Next isepisode 62 on Game Theoryand the 8th most downloaded episode of all time, isnumber 102 on Confirmation Bias.
[31:00] The 7th most downloaded isepisode 83, How to organize your brain with behavioral economicsfollowed byepisode 61 on Color Theory.
[33:37] The episodes with the fifth and third most downloads are both analyses of companies again, like I already talked about for the top downloads of 2021. However, these are different profiles, includingnumber 86 with a behavioral economics analysis of Peloton, andepisode 73 with a behavioral economics analysis of Starbucks.
[34:57] In that number 4 spot we haveepisode 5, The Truth About Pricing.
[35:37] Number two isepisode 2, The Top 5 Wording Mistakes Businesses Make.
[36:37] The most downloaded episode of all time is the veryfirst one, Unlocking the Secrets of the Brain.
[39:55] The final top 10 list are the most read articles from my Inc Magazine column in 2021. For the full list, check out the blog post linked here with the summary of all three top content areas!
[42:50] The 7th most read article is called, “Dread going to work every day? The culprit may be hanging in your office.”
[43:16] The 6th most read article on Inc is the first one I wrote for them. It is called, “1 Simple Brain Trick That Can Help You Overcome Self-Doubt Forever.”
[44:57] The fourth most read article is on one of my very favorite things. It’s called, “Forget brainstorming. Try questionstorming.”
[45:38] The third most read article is, “Feeling unproductive? This brain bias could be to blame.”
[46:07] In our still Zoom-filled virtual world, it isn’t surprising that the second most read article this year was, “Why you hate seeing your face in video meetings.”
[47:02] “Don’t ask ‘What are you thankful for?’ Try this instead” is my most read article of 2021.
[48:22] What’s ahead for The Brainy Business in 2022?
[51:22] Thank you again for making 2021 such an amazing year and for listening, subscribing, sharing, rating, and reviewing The Brainy Business podcast. I appreciate you all, and can’t wait to see what 2022 has in store.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
337. The Role of Critical Thinking in Resisting Misinformation - Sander van der Linden
00:49:19
In this episode of The Brainy Business podcast, social psychologist and Director of the Cambridge Social Decision-Making Lab, Sander van der Linden, joins host Melina Palmer to discuss the role of critical thinking and emotions in resisting misinformation. Sander's extensive research on the influence of repetition and the illusory truth effect make him a trusted authority on the subject. The conversation serves as a valuable resource for critical thinkers concerned about misinformation in today's digital landscape.
Van der Linden explains how repetition can lead people to question their own knowledge and accept false information as true, highlighting the illusory truth effect. He also discusses the conjunction fallacy and the self-sealing belief system of conspiracy theorists. The episode delves into the concept of inoculation as a strategy to combat misinformation, providing insights on how to build cognitive antibodies to resist manipulation. Overall, the conversation offers practical tips and insights for improving critical thinking skills and navigating the complex world of misinformation.
In this episode:
Gain a deeper understanding of the pervasive impact of misinformation in today's society.
Discover how the illusory truth effect influences belief formation and the way we perceive information.
Explore the complexity of conspiracy theories and the conjunction fallacy, and how they can contribute to the spread of misinformation.
Learn about the powerful strategy of inoculation as a means to combat misinformation and manipulation.
Understand the crucial role that critical thinking and emotions play in resisting misinformation and making informed decisions.
Show Notes:
00:00:00 - Introduction, Sander is a professor of Social Psychology at the University of Cambridge. He studies how people process misinformation and how to combat its spread. He shares his expertise with governments, public health authorities, and social media companies.
00:04:41 - The challenges of researching historical accounts Sander discusses the difficulties of researching historical accounts for his book. He had to navigate competing historical viewpoints and verify the accuracy of information. He shares the example of a disputed document regarding Mark Antony's will as an example of the challenges faced in historical research.
00:09:01 - Writing process and structure of the book Sander talks about his writing process and the structure of the book. He waited until he had enough data and case studies before starting. Once he had the general structure and outline, he began filling in the individual chapters. Sander emphasizes the importance of having a clear direction before starting to write.
00:12:40 - The impact of misinformation on decision-making Sander explains how misinformation can influence decision-making. He discusses the cognitive biases that help our minds accept false information.
00:15:47 - Illusory Truth Effect and Repetition, Repetition of false information can lead people to believe it, even if they have prior knowledge that contradicts it. This is known as the illusory truth effect. Examples include misattributing the ark to Moses instead of Noah, and the power of the "big lie" technique used by Hitler.
00:18:10 - Continued Influence of Misinformation, Misinformation can persist and strengthen over time, making it difficult to correct. The continued influence of misinformation is similar to how memories are connected in a social network. Once a false belief is established, it can be challenging to change it, as seen with the autism vaccination link myth.
00:19:49 - Conjunction Fallacy and Conspiracy Theories, The conjunction fallacy refers to the tendency to believe that multiple conspiracy theories are more likely to be true than a single one. People often endorse multiple conspiracy theories simultaneously, even if they are mutually exclusive. This is due to a self-sealing belief system where one theory serves as evidence for another.
00:25:46 - Visual Misinformation and Manipulated Images, Visual misinformation is prevalent and often underestimated. Manipulated images enhance fluency and make information seem more true. Examples include fake images of dolphins in the canals of Venice during the pandemic. It is challenging to correct false beliefs once they have been visualized.
00:31:28 - Introduction to Inoculation, Inoculation is about exposing people to a weakened dose of misinformation and refuting it in advance. It builds cognitive antibodies to help resist manipulation. The mind can be vaccinated against manipulation just as the body can be vaccinated against viruses.
00:32:22 - Building Resistance in the Brain, The brain needs exposure to deception and manipulation to understand their tactics and become resistant. Micro doses of misinformation help the brain develop cognitive antibodies. This research has been conducted for over a decade.
00:34:27 - Examples of Inoculation Techniques, Inoculation can be done on a single myth basis or by targeting specific tactics used in manipulation. For example, a weakened dose could be created by debunking a petition with false signatures. Inoculation helps protect people against misinformation and strengthens their perception of the scientific consensus.
00:37:48 - Scaling Inoculation, Inoculation can be scaled by targeting underlying tactics that are frequently used in a given domain or topic. Techniques like casting doubt on scientific consensus or using fear mongering can be weakened and exposed to help people resist manipulation. Short videos on platforms like YouTube can be used to reach a larger audience.
00:39:57 - Using Pop Culture as Weakened Doses, Popular culture references like Star Wars or South Park can be used as weakened doses to help people spot manipulation techniques. By using non-political examples, it becomes easier to get bipartisan agreement and educate people on logical fallacies.
00:47:31 - Tips for Spotting Misinformation, Sander recommends questioning what we see, not blindly sharing information, and not being fooled by pictures or social proof. His book, Foolproof, provides more tips and insights for spotting fake news. By applying the strategies and techniques outlined in the book, readers can become less vulnerable to misinformation.
00:48:48 - Conclusion, Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
387. Unlocking Exponential Growth: The Secret Sauce Behind Psychological Safety
00:56:46
In this episode of The Brainy Business podcast, Melina Palmer engages in an enlightening conversation with Hugh Massie, the executive chairman and founder of DNA Behavior. Hugh's journey into human behavior began during his tenure as a tax specialist at Arthur Anderson, where he honed his ability to tailor advice to clients based on their behavior. This experience led him to establish a wealth management family office business, where he recognized the crucial importance of understanding individual behaviors, particularly in relation to money.
Throughout the episode, Hugh emphasizes the critical need for psychological safety in business environments and shares personal experiences that underscore the impact of creating a safe space for open communication among team members, clients, and employees. His expertise in utilizing technology to understand and interact with individuals more effectively, improving communication, talent matching, and overall employee and client experience, makes this episode a must-listen for business leaders and managers focused on enhancing team collaboration and performance.
In this episode:
Understand the significance of psychological safety for fostering a supportive and productive work environment.
Master effective communication strategies to enhance team collaboration and performance.
Explore the potential of leveraging technology to optimize team productivity and efficiency.
Gain insights into human behavior in leadership to improve decision-making and team management.
Learn how open communication builds trust and strengthens team dynamics for enhanced performance.
Show Notes:
00:00:00 - Introduction Melina introduces Hugh Massie, the founder of DNA Behavior, and shares his background in behavioral solutions architecture and the importance of understanding human behavior.
00:03:54 - Hugh's Background and Work Hugh shares his background as a CPA and his transition into understanding human behavior through his experiences in the workplace and working with clients in a family wealth management business.
00:12:57 - Cost of Miscommunication Melina discusses the significant cost of miscommunication in the workplace, including the 17 hours per person per week spent clarifying previous messages and the high percentage of misunderstood emails.
00:15:10 - Psychological Safety in Business Hugh delves into the concept of psychological safety, using the example of Boeing's management pressure for financial results leading to the dismissal of employees who raised concerns about the design of the 737 MAX, highlighting the importance of creating a safe environment for open communication.
00:16:28 - Cultural Issues in Organizations Hugh discusses the cultural issues at Boeing and Arthur Anderson, emphasizing the importance of psychological safety in a business environment. He highlights the need for team members to feel free to express themselves and share information.
00:18:28 - Support and Responsibility Hugh emphasizes the importance of supporting team members and taking responsibility as a leader. He discusses the need for leaders to have their team's back and to take ownership of decisions. He also addresses the importance of managing emotions and showing up with the right energy.
00:21:39 - Trust and Autonomy Melina shares a personal story about trust and autonomy in her previous workplace, emphasizing the importance of having a leader who supports their team's decisions. She highlights the impact of a leader's trust and support on the team's ability to have open conversations.
00:26:15 - Psychological Safety in Business Hugh discusses the significance of psychological safety in the workplace, particularly in financial services firms. He explains how leaders' willingness to share their DNA discovery profile assessment with their team members can impact the organization's success.
00:31:32 - Technology and Communication Melina and Hugh discuss the use of technology to customize communication based on individual styles. They highlight the benefits of using technology to communicate thoughtfully and effectively, catering to the recipient's preferences and emotional intelligence.
00:32:31 - Understanding the Core of Human Behavior Hugh explains that a person's natural hardwired behavior is 85% determined by age three and 95% by age seven. This core behavior influences how people react under pressure and their comfort in different environments.
00:35:19 - Depth and Accuracy of the Model Hugh discusses the forced choice scoring model used in their system, which measures 4000 psychometric metrics to provide a deeper understanding of an individual's behavior. The model goes beyond traditional assessments like Myers Briggs and disc profiles.
00:37:54 - Application across Different Industries The system is utilized not only within internal teams but also with clients in various industries, including wealth management and other businesses requiring ongoing engagement and relationships. The focus is on understanding and communicating with individuals in a way that aligns with their natural behavior.
00:41:36 - The Platinum Rule of Communication The conversation delves into the importance of adapting communication to the individual on the other side, known as the "platinum rule." Understanding and accommodating the preferences of others leads to better relationships and interactions.
00:46:42 - Trust and Psychological Safety The discussion emphasizes the significance of trust and psychological safety in relationships, both professional and personal. The importance of responsiveness, respect, and adaptability in building and maintaining trust is highlighted.
00:48:01 - Understanding Human Behavior and Differences The conversation starts with the importance of understanding human behavior and dealing with differences among people in the workplace. It emphasizes the need for leaders to communicate effectively with everyone and align their strengths.
00:49:45 - Technology for Effective Communication The discussion highlights the role of technology, specifically gene AI, in enabling real-time communication and interaction among team members. It emphasizes the importance of using technology to tailor messages to individual preferences for better engagement.
00:50:37 - Leveraging Technology for Efficiency The conversation delves into how technology, when used thoughtfully, can save time and effort by automating communication processes. It emphasizes the value of investing upfront in technology to yield significant long-term benefits.
00:53:20 - Conclusion Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
241. Behavioral Science in the Wild with Dilip Soman
00:46:21
In today's conversation, I am joined by Dr. Dilip Soman, coauthor ofBehavioral Science in the Wild. Dilip is a Canada Research Chair in Behavioural Science and Economics and serves as a Director of the Behavioural Economics in Action Research Centre at Rotman [BEAR]. His research is in the area of behavioral science and its applications to consumer well-being, marketing, and policy. He has written multiple books includingThe Last Mile,The Behaviorally Informed Organization,andBehavioral Science in the Wild(all of which we will discuss a bit today) and he also teaches a massive open online course called "BE101X: Behavioural Economics in Action" on EdX.
That is actually how he and I first got introduced years ago when someone who was taking BE101X tagged us both on Twitter suggesting my podcast as a resource for students taking his class. We had connected a bit then but didn't end up making it the "last mile" to getting a meeting in the books (see what I did there?). So when this new book,Behavioral Science in the Wildcame out, I knew it was the perfect time for us to have this first chat and it was so much fun! Listen in to hear about the pain of paying (and some interesting thoughts and research about dental work), the duration heuristic, the importance of virtual progress and supposedly irrelevant factors (SIFs) and so much more!
Show Notes:
[00:43] In today's conversation, I am joined by Dr. Dilip Soman, coauthor ofBehavioral Science in the Wild.
[03:31] Much of his early research was about how memory from pain depreciates.
[05:01] Memories of factual things remain. Memories of experiences tend to depreciate.
[06:30] Melina shares a recent experience at the dentist where her hygienist said that 40% of people don’t want novocaine because they don’t like feeling numb after the appointment.
[07:40] Dilip shares a story about his neighbor getting a snow blower.
[09:35] Often people don’t want to pay more to get something done sooner. People learn in some domains that the longer the service the better.
[12:10] You would think that your overall evaluation of an experience depends on the sum of all of your experiences. Sometimes experiences feel better if you feel like you are making progress as opposed to actual progress.
[13:49] We are actually happier when we are driving than sitting in traffic (even if the trip takes longer).
[16:25] Waiting time is an opportunity. It is an opportunity to educate, amuse, and engage people.
[18:09] Dilip shares his background and the work that he does. He is a mechanical engineer by training.
[20:10] His entire motivation for coming to academia was to understand why people think and how we can help people lead happier lives. He has tried many ways to take science to the field.
[23:06] Medical sciences actually have a science for how to implement stuff called implementation science – behavioral science should have this too.
[23:41] The first book in his series,The Behaviorally Informed Organizationtalks about what an organization should do to embed behavioral science.
[25:15]Behavioral Science in the Wildwas written to tackle the challenge that the results are not as formidable as we would like them to be.
[26:58] SIFs are supposedly irrelevant factors, things that we think should not influence decisions but do.
[29:04] Every intervention could have multiple interpretations and pathways.
[31:11] Successfully scaling an intervention doesn’t mean that intervention has to be homogenous. You don’t have to do the same thing for everyone. Often you actually need to customize it.
[32:23] There are two sources of differences in situations that might cause the effect of our interventions to change.
[34:47] Oftentimes we explain failures by just saying it is a different context (don’t let this be your excuse and stop there).
[37:34] The moment you change the lens to try and understand the friction, you start seeing things.
[37:44] Think small. The success of big ideas gets tripped up by small things.
[39:22] Sometimes it is the little stuff that trips people up.
[41:02] Sometimes the simplest solutions are the best ones.
[43:16] Melina shares her closing thoughts.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
Go to basecamp.com/brainy and try Basecamp for free. No credit card required and cancel anytime.
12 Oct 2023
331. Building Productive Relationships: Taking Responsibility for Your Impact with Brian Lowery
00:44:04
In this episode of The Brainy Business podcast, host Melina Palmer interviews Brian Lowery, a professor at Stanford Graduate School of Business, on the topic of how our behavior impacts others and vice versa. Brian emphasizes that we have agency in shaping the people we interact with, and that our behavior can have a significant impact on others. By recognizing that our sense of self is constructed through relationships, we can cultivate empathy and understanding for others.
This can enhance our interpersonal relationships and lead to more effective communication and collaboration. The conversation also touches on the concept of social contagion and how emotions can be contagious in social interactions, highlighting the potential for even fleeting interactions to have significant effects. Throughout the episode, Brian provides insights and practical advice for leaders and individuals to enhance their ability to connect with others and navigate the complexities of human relationships.
In this episode:
Understand the flexibility of personal identity and its profound influence on individuals.
Discover the cyclical impact of individual behavior on communal dynamics and vice versa.
Learn the importance of acknowledging and taking charge of your contribution to interpersonal relationships.
Realize the far-reaching effects of minor social engagements on individual attitudes and office culture.
Recognize the significance of empathy and perspective shift in successful communication.
Show Notes:
00:00:00 - Introduction to Dr. Brian Lowery, Dr. Brian Lowery, author of Selfless, discusses his background and research on how people make sense of the self. He explains that our sense of self is a construction of relationships, social interactions, and culture, rather than an individual entity.
00:06:00 - Shifting Identities Throughout the Day, Brian and Melina talk about how our identities shift throughout the day in response to different relationships and social contexts. Brian emphasizes that these shifts are not just masks we put on, but rather a fundamental part of our flexibility as human beings.
00:10:15 - Influence of Others on Our Sense of Self, Lowery explores how our sense of self is influenced by others, often in ways we are not consciously aware of. He discusses studies that show how our attitudes and beliefs can change based on what we think others expect of us. This demonstrates the degree of flexibility in who we are and who we can be.
00:12:59 - Importance of Understanding the Self, Brian explains that understanding the nature of the self is fascinating and awe-inspiring, even if there is no specific action to be taken with this knowledge. Recognizing the fluidity and complexity of the self can reshape how we approach our lives and relationships.
00:14:36 - The Construction of People, Brian emphasizes that our interactions with others contribute to the construction of the people we engage with. He encourages individuals to reflect on their contribution to relationships and take responsibility for their impact on others' behavior.
00:15:38 - Shifting Perspective, Lowery challenges the conventional notion of individuals as isolated islands who can choose to listen or not. Instead, he suggests that our actions and words impose decisions on others, highlighting the power and responsibility we have in shaping their responses.
00:19:43 - The Ripple Effect, Brian discusses how seemingly small interactions can have lasting effects. Melina shares a personal experience of receiving a seemingly innocuous email from a boss that had a significant impact on her mindset and subsequent interactions. She emphasizes the importance of considering the broader impact of our actions.
00:22:26 - The Impact of Audience, Brian explores the concept of audience impact, highlighting how even imagined readers influenced his writing process. He notes that our behavior and words can have a ripple effect, influencing the emotions and actions of those around us, often in ways we may not fully comprehend.
00:25:07 - The Power of Leadership Communication, Brian and Melina discuss the heightened impact of leaders' behaviors and communications. They emphasize that leaders' actions are scrutinized for information, and even seemingly minor interactions can have significant effects on team members and office culture.
00:28:47 - The Importance of the Receiver, Communication is about influencing and changing the behavior of the person you're communicating with. The receiver is the only person that matters because if they don't understand or take what you intended, you have failed in your communication goals.
00:29:19 - Recognizing Others' Perspectives, People often struggle to recognize that others may experience a situation differently than they do. It's important to be curious and try to understand the reasoning behind someone's behavior, even if it's surprising or upsetting to you.
00:31:41 - Curiosity and Self-Reflection, Curiosity is a powerful tool for understanding others. Instead of relying on assumptions, engage with someone to understand their experiences. Additionally, ask yourself how you may be contributing to a situation and recognize your agency in it.
00:32:32 - Addressing Confirmation Bias, It's challenging to get someone to see their own confirmation bias. Instead, focus on examining your own biases and seeking self-awareness. Understanding your own biases can lead to more productive conversations.
00:36:42 - Exploring Friendship, Lowery’s podcast "Know What You See" explores different themes, such as friendship, gender, and home. The upcoming episode on friendship discusses how people manage and maintain friendships in different life stages, including college, adulthood, and parenthood.
00:43:09 - Conclusion, Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
Last year on the show, there were behavioral economics analyses of Apple Card, Costco and Starbucks and this is the first time in 2020 we will be digging into a specific company. I’ll talk about the infamous Peloton ad that made the company’s market value drop $1.5 billion in three days: what happened in the ad and why it went wrong. Then I’ll explain what could have been done better and the behavioral economics concepts that back it up.
I also talk about my own personal experience with Peloton. I recently got one and I’m loving it. You’ll learn about the behavioral economics of financing options, the 30 day money back guarantee, as well as how they use the concepts of social proof, herding, reciprocity, and more in very smart ways. If you don’t have a Peloton, you’ll learn a little more about equipment, subscription, and app options. I also talk about some of the really cool things they are doing that align well with behavioral economics – including sharing a bunch of concepts I see in their set up, and we will wrap up with tips for your business based on successes from Peloton.
As a note, I don’t do any work with Peloton and don’t know if they are working with anyone in behavioral economics or if they are familiar with any of these concepts or doing any of this intentionally. The stuff I talk about in this episode are my own thoughts and observations, not from any conversations I have had with anyone at Peloton.
[03:28] Peloton is a fitness company that sells equipment and features live streaming videos on a screen attached to the equipment.
[03:52] According to Peloton’s website, there now have more than 1.6 million members. They state over 55 million workouts completed in 2019, and in their last fiscal year (which ended in June 2019) the company made $915 million dollars.
[04:21] They also have a 94% 12-month retention rate.
[04:48] Over the Christmas holidays, they featured an ad about a woman who receives a Peloton from her husband as a gift. We then get to watch her video blog of her entire year riding the bike and she says she didn't realize how much it would change her.
[05:38] The internet hated this commercial. There was all kinds of backlash about the husband giving her an exercise bike and how it was sexist. It had negative coverage in all the publications.
[06:10] According to Business Insider, Peloton lost 1.5 billion dollars in three days after the release of the ad.
[06:33] In my opinion, the ad wasn't as bad as it was made out to be on social media. The real problem is mixed messaging (something many companies struggle with).
[07:03] The ads that Peloton makes are clearly directed towards wealthy people. They also only have very fit people in their ads (which is fine if this is a clearly defined niche).
[07:34] The other side of their brand is being a community opportunity for everyone to be able to have access to amazing fitness regardless of whether you have access (or time to go) to a gym.
[07:49] If you say you are for everyone – a community of all kinds of people coming together to support each other…the ads should reflect that.
[08:03] If you are truly only for wealthy people, you should say that.
[08:27] There is no reason that any business can’t target a high income or high net worth group of individuals. Just make sure that the messaging is clear.
[09:15] I think they do want to be inclusive – especially after having the bike for a month now. Their website is “One Peloton” and they share that messaging throughout all the workouts and interactions. They are very focused on their community.
[09:24] my recommendations: First the ad needed a teeny tiny back story where everyone knew that the wife actuallywanteda Peloton.
[10:04] You cannot assume everyone who watches your ad or sees your message is coming from the same place as you.
[10:32] When you don’t provide the proper context in the backstory, people will fill it in with their own story, which could be loaded with negatives (especially when you’re talking about health, diet and fitness).
[10:45] Take a step back and look at your message from many perspectives and look for what people would disagree with.
[11:17] A noticeable difference in the protagonist from the beginning to the end would have made a big difference.
[12:42] If you are going with the inclusive message, it should have closed with a very quick line like “One of the many stories of Peloton” which could then trim down to say “One Peloton”.
[14:22] Peloton has enough content for a ton of advertising if they take the time to find it within their community.
[14:46] Understand your market niche and who you are speaking to. When this is grey you can get into trouble.
[14:54] Bring people along with you in your story, you can’t assume they know the right context. It is important to share key elements to ensure the right message is being conveyed.
[15:19] Don’t overlook your community when creating ads and messages. You have a huge amount of people who love you and your brand and would be honored to be featured while singing your praises. Ask for stories.
[15:45] Even though Peloton went down 1.5 billion in value it doesn't mean that will last forever.
[16:18] Even though it wasn't the greatest way to go viral more people probably know about Peloton now.
[16:34] Availability bias is when you start to see something everywhere and then it gets more weight in the brain.
[18:06] The availability bias and the ad being everywhere pushed Peloton through the subconscious filter and got you to consider it.
[18:50] One of the reasons it was easy to join Peloton was in the framing of the offer. Their equipment is expensive, but they have a 30 day trial with a money back guarantee and a 0% financing option where you can pay for the equipment over three years.
[19:37] They have a 94% stay rate from people after 12 months, so their main hurdle is to get that bike or treadmill into your home.
[20:22] You can be part of the community by paying a monthly membership fee to access the content.
[21:14] There isn't a discount for people who bought the bigger thing (equipment) from Peloton - they actually pay more each month.
[21:39] It's important to note that you don't have to discount when you bundle things together or have repeat customers.
[23:11] The access to content, free trial and 0% financing are all examples of reciprocity. You pay each month to have access, but there is so much value it feels like a gift to have these great instructors, stats and details.
[24:11] Choice architecture (specifically structuring complex choices) is in play with over 20 new classes going live daily and more than 10,000 already on demand.
[25:02] You can easily search and filter for what you're looking for based on what matters to use such as type of class or instructor.
[26:26] Sometimes it's good that people have to search a little to get to what they're looking for (the subconscious is always scanning).
[29:56] Peloton uses concepts of herding and social proof to really enhance the community experience. You get all the goodness of being a part of a community without any of the awkwardness.
[32:40] The instructors walk you through what numbers to focus on (in their case “resistance and cadence”) and there is an overall output that ranks you on the leaderboard. Limiting the areas of focus is a framing benefit.
[34:37] Social proof is kind of like herding, in that it shows other people are there and liking the course. With Peloton, they do a FANTASTIC job of incorporating social proof and making you feel like part of a gigantic community.
[37:20] They shout out milestones throughout the class, starting high and working their way down. This helps with anchoring, another important concept for Peloton.
[38:25] Anchors are set in tandem with the social proof by announcing those in the live class who hit milestones. When they shout you out, they say, “I see you”.
[40:07] Another way they use anchoring is in tandem with commitments and precommitments – which help form good habits.
[41:34] These anchors help boost the amount you might have worked out otherwise, and committing in advance makes you much more likely to form a habit and reach a goal.
[42:16] Peloton wants and needs people to change their behavior; to use the app and equipment consistently so they continue to find value and pay the subscriptions.
[43:58] These little nudges make a big difference and help to show why Peloton is a smart company making (mostly) good choices.
[45:07] If you have a peloton and want to connect there, please follow me – as I said, my name is “BEthoughtful” all as one word…so it shouldn’t be too hard to find me. I look forward to seeing you there.
[45:30] SUMMARY OF TIPS: Know who you are speaking to and make sure your branding is aligned with that target market. Narrowing your focus is good and will help you better align with your right people.
[45:34] Context is important in any story you are trying to tell. You can’t assume people know the story or have the same background as you have when you came up with the story. Take the time to understand which details are important and show them in the right order.
[46:00] Use the stories from your community.
[46:17] It’s ok to have complex offerings with a lot of choices, but you need to make the structure of those really easy for people who are using your product or service.
[47:11] Anchoring is always important. Start with big numbers to help others see what is possible and set your anchors.
[47:29] Social proof – saying things like “I see you” and helping people feel there is a bigger community present is critical for an online space if you want people to feel connected.
[48:18] Giving things away can trigger reciprocity and make people want to get more from you.
[48:30] It's ok to not have discounts for people who are buying other stuff from your company.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
269. Getting Along: How to Work with Anyone, featuring Harvard Business Review’s Amy Gallo
00:56:08
In today's conversation, I am joined by Amy Gallo. Amy is an expert in conflict, communication, and workplace dynamics. She combines the latest management research with practical advice to deliver evidence-based ideas on how to improve relationships and excel at work.
She has written two books: The HBR Guide to Dealing with Conflict, and her newest which we are discussing today: Getting Along: How to Work with Anyone (Even Difficult People).
In her role as a contributing editor at Harvard Business Review, Amy writes about interpersonal dynamics, communicating ideas, leading and influencing people, and building your career. She has contributed to numerous books on feedback, emotional intelligence, and managing others, and is the co-author of the HBR Guide to Building Your Business Case.
She is also a co-host of HBR's Women at Work podcast, which is in its eighth season. She has contributed to other books and has taught at both Brown University and UPenn, and is an all-around wonderful person I'm so delighted to have met. It's kind of a fun and serendipitous story as to how Amy ended up on the show today. Listen in to hear all about it!
Show Notes:
[00:45] In today's conversation, I am joined by Amy Gallo. Amy is an expert in conflict, communication, and workplace dynamics.
[01:59] It's kind of a fun and serendipitous story as to how Amy ended up on the show today.
[04:21] SXSW is a massive event over 10 days with a film festival, music festival, food festival, comedy festival, and a conference focused on innovation and technology. Amy and I are both speaking at it this year (my talk is on the same day this episode comes out!)
[06:40] Amy shares herself, her background, and the work she does. She wears many hats.
[08:02] She didn’t think she would become an editor (or be at Harvard Business Review), but she always gravitated to writing.
[10:08] The HBR Women at Work podcast is still one of her favorite projects that she works on. Her work for HBR started small.
[11:41] She loved writing, but never thought she would do anything with it as a career.
[14:12] Writing the HBR Management Tip of the Day is what led to her writing the book, because she could see there was so much work being put out there by people in different fields. She let that inform the advice she was giving.
[16:07] Knowing a little bit about a lot of things and a lot about a few things is a good balance to being able to make interesting connections.
[17:35] Getting Along is about navigating the messiness of human interaction and recognizing that we are not all our best selves all the time, especially at work, and that we need the skills to be able to make the most of these very important relationships.
[19:30] We have all had a difficult person at work that we don’t get along with.
[20:33] Amy shares the emails with “Brad” that she talks about in her book.
[23:19] Our brains are so wired to scan for threats that we are so focused on negative things (negativity bias).
[25:26] Any time you have a tricky interaction with someone you can’t force the person to see it the way you see it.
[26:12] When we are interacting with others and we find ourselves triggered or upset, there are many ways to view that situation. You have to own your interpretation as your perspective.
[27:50] Your interpretation of what is appropriate behavior at work is not going to be the same as everyone else’s.
[30:49] There were two main things she wanted to do with this book. First, she wanted to give specific evidence-based advice for the situation they were dealing with.
[32:46] The archetypes are really meant to give people a way into the specific advice that they need. They are meant to get the tactics from research that are supposed to work for this type of behavior.
[33:22] The second thing she wanted to do with the book was to talk about how identity plays a role both in how we interpret difficult behavior and also in terms of the tactics that we can use and are effective for someone who shares the identity that we have.
[35:55] Change is possible. If we really take a close look at what is happening and what could be motivating that behavior, and work on ourselves…then change is possible. It is worth continuing to try to change.
[37:58] Amy shares the eight archetypes: the insecure boss, the pessimist, the victim, the passive-aggressive peer, the know it all, the biased co-worker, the tormentor, and the political operator.
[40:16] Pessimism is contagious in the same way optimism is.
[42:32] Pessimists often don't think they have agency, so giving them agency can really help. You can also give them a formal role to play as the devil’s advocate then it is treating it as a benefit to the team.
[44:47] We can all find times when can relate to (and likely when we have been) many of the archetypes.
[47:02] There is a good chance you are one or more of the archetypes because we all are.
[48:06] Having more people as part of your “us” can make a big difference.
[49:41] Amy shares her top episode recommendations for the HBR Women At Work podcast.
[51:31] Melina’s closing thoughts
[52:54] It is important to look at yourself before you look to change someone else. Amy gives tips for seeing how you are contributing to every difficult relationship, and to know that it starts with changing yourself.
[54:08] There is always room to change, both for yourself and those you work with, and Getting Along is a great way to better understand what you have been doing yourself in life and work, and have a better experience with everyone tomorrow.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
68. Counterfactual Thinking: Why We ‘What If’ And ‘If Only’ (A Behavioral Economics Foundations Episode)
00:41:03
I love the concept of counterfactual thinking. In fact, it was one of my favorite things to read about in school – I find it to be fascinating in many ways, but perhaps it’s because it relates to something we all do, all the time, and don’t really stop to think about why. And more importantly – we don’t stop to think about if it is doing us harm or good, and how we might control this natural state of the brain.
Counterfactual thinking is a fancy way to say “what if..” or “if only...” Maybe you have memories of your childhood or choices you made, and then think that with a little more discipline (or focus or effort or training) you could have been an actor or doctor or run that marathon.
We all have regrets on actions taken or not taken, and these are represented in our brains via counterfactual thinking. This may seem like a hurdle to overcome, but it is actually central to being a human being – our emotions and the way we think - and can be a VERY good thing (listen to learn the 1 important step to shift from vicious cycle to goal-achieving awesomeness). Studies have found counterfactual thinking happens across all cultures and as early as 2 years old.
[02:42] Counterfactual thinking is a fancy way to say "what if" or "if only."
[04:05] Counterfactual thinking can be very useful for setting and accomplishing goals.
[04:20] There are different types of counterfactuals, and they do different things. When you are thinking about a better alternative it is called an upward counterfactual, and those with worse alternatives are downward counterfactuals.
[04:57] Upward counterfactual are tied very closely with regret. Anticipated regret (or prefactuals) will be the focus of a future episode. Regret and counterfactual thinking really go hand in hand.
[05:17] The first theoretical explanation of counterfactual thinking came from Kahneman and Miller back in 1986, and was called norm theory.
[05:39] When looking at counterfactuals consider if they are omissions or commissions, ruminations or undoings, usual or extreme, actions of ourselves or others, and if they cause negative impact or how they can be used for good.
[06:29] An omission is when you wish you had acted. A commission is wishing you had not taken an action.
[07:10] A rumination is where you think about what happened, but you don’t have any thoughts about how things might have been different. Undoing is where the counterfactual “if only” or “what if” comes into play – what might have been if you had or hadn’t done something.
[08:40] Usual or extreme: the way you do your counterfactual thinking will be different if it was coming in through the same door as you always do versus coming in a way you never do.
[11:24] Ourselves or others. Whose actions the counterfactuals are targeted at. We tend to focus our counterfactual thoughts on ourselves – what we coulda shoulda woulda done – more often than we look at others.
[12:24] Distress and anxiety. While there is a healthy side to counterfactuals, when used in excess it can be really damaging to the psyche.
[14:25] Thinking and counterfactualizing doesn't change what happened.
[16:02] Putting too much into ‘what if’ and counterfactual thinking can often make a mountain out of a molehill. It can be unhealthy and cause you more harm than simply letting it go and moving on would do.
[16:12] Your conscious brain can only focus on so much and the brain gets what it expects.
[18:16] A study was published in 1995 in Personality and Social Psychology Bulletin on counterfactual thinking and undoing traumatic life events.
[20:58] A study found that 80% of those that lost loved ones in a car accident had ruminative thoughts of the event, and 59% said they had thought about the events leading up to the accident within the past month.
[21:49] Over half of the respondents were actively undoing the event in their heads – having counterfactual thoughts – within the last month, for an event from 4-7 years earlier.
[22:20] 69% focused on a usual activity. 28% focused on an exceptional activity.
[23:34] 41% of those undoing reported wishing that they had done something. 31% reported wishing that they had not acted as they did. 17% reported both.
[24:24] 55% focused on their own behavior, while the other 45% were focused on the behavior of the deceased. Not one person reported trying to undo the other driver’s behavior (even though in most cases that person was legally responsible for the accident).
[26:29] The person thinking about the process is more likely to undo the actions of the focal actor – themselves or the person they knew.
[27:26] If you go through counterfactual “if only” and “what if” sort of thinking…remember that just because your brain is only focusing on you…it doesn’t mean it is right or the only option.
[28:39] Undoing may, at least partially, be a distress-driven cognitive process.
[31:09] The more you continue to focus on undoing, the more you will have continued distress.
[32:28] Highly distressed people come to undo more frequently, thus perpetuating their distress.
[33:06] The only item that led to increased levels of distress was the frequency that someone was going through the process of undoing.
[33:55] Your mood and focus is created by your own brain. And while it is perfectly normal to partake in counterfactual thinking, too much can be harmful.
[34:30] Counterfactual thinking is a critical way we regulate our behavior and how we are able to reach our goals.
[34:50] When you fail to reach a goal, you are more likely to have counterfactual thoughts.
[35:23] Instead of having counterfactual thoughts, decide what you could do better next time.
[37:47] You need to allow yourself to move on and not let it take over everything else in your life and work.
[38:57] Next time you get into a counterfactual spin…think about how someone else might think you’re the luckiest guy or gal in the world!
[40:17] Whether you are naturally a silver lining person or not…acting as if you were is often enough to trick your brain into starting to think that way.
DON’T FORGET to sign up for the Free Master Your Mindset Mini Course now to tackle mindset issues and be on the waiting list for the full course, on sale October 24!
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
82. The Best Content from the Brainy Business in 2019
00:38:13
I don’t know about you…but I am having a hard time believing that it’s 2020 already. 2019 was such an amazing year with so many milestones for The Brainy Business. This episode will be digging into the top content from 2019. Links to all of the articles and episodes are below along with a link to the post with the full list. My subscribers will receive all of these links along with over 40 freebies I’ve given away (if you want to be on the list, download any freebie -- including the Master Your Mindset mini-course -- and you’ll be automatically added).
I want to take a moment to thank you all for listening, subscribing, sharing, connecting on social media, and reaching out to let me know your wins and the behavioral economics concepts you have applied in your own businesses. These are some of my favorite messages to get – I truly love hearing from you. I’ve received messages from all over the world, including Poland, Romania, Spain, South Africa, India, Italy, Ireland, and more.
Wherever you are, if you love the podcast and behavioral economics, please do reach out through your favorite social app to let me know who you are. I love connecting with each of you, and it really is me responding. I’ll kick off this show with sharing the top countries that have downloaded the podcast and then move on to the top shows and articles, and I might throw in a few surprises along the way.
[03:58] The top countries downloading The Brainy Business begin with the US and are then followed by the UK, Canada and Australia.
[04:23] India has pushed past Germany to claim the number 5 spot. Brazil is still number 7 and Mexico retained its number 8 spot. The Netherlands has made its way into the top 10 claiming the number 9 spot, and South Africa rounds out the list.
[04:43] Ireland came in at number 11.
[05:12] The top 10 states in reverse order begins with North Carolina at number 10, followed by Colorado, then Georgia, Virginia and Florida at number 6. The state with the fifth most downloads is Illinois, number 4 is New York, then Texas at number 3, Washington is number 2, and California is number 1.
[07:07] The top 10 downloads were found by doing a sort of all the downloads of the podcast.
[08:05] I also call this the “I’ll start Monday” effect, because it is the concept behind all our new diets, exercise plans, failed resolutions…as well as efforts to save more money, quit smoking and generally change behavior.
[09:01] Changing behavior doesn’t have to be as hard as we make it out to be, and understanding time discounting is a big way to help combat that.
[09:38] I used real world examples and talk about what top companies do in business that outline various concepts from behavioral economics and how you could use the same concepts in your own business.
[10:44] This episode was part of a series that talked about partitioning as well, and how adding little barriers can impact behavior.
[11:14] Getting someone to buy one thing is the hardest part, but once they have bought something it is easier to add on more items. This is why loss leaders are effective.
[12:11] While we are talking about paying for things, I want to give a little shout out for The Truth About Pricing, episode 5, which was a top downloaded episode of all time, but didn’t quite make the top 10 in 2019.
[13:30] The big tip I will give from this is to understand the difference between playing to win…and playing not to lose. They are not the same thing and result in vastly different outcomes.
[14:18] Next, we have episode 45, which was anOverview of Personal Biases, part of the 8-part series on all the biases, and episode 50 onSelective Attention Biasesmade the top 10 as well, it was actually the third most downloaded episode of the year.
[17:05] The categories to avoid are: too literal, too much, too vague, too confusing and too boring.
[18:02] Before I get to the most downloaded episode of all time and in 2019, a little shout out to episode 3,Do Lead Magnets Work and Do You Need One?Which was the 6th most downloaded episode of all time, but didn’t make the 2019 list.
[20:04] In this first episode of the podcast, I talk about behavioral economics in general, a little about my background and why I started the podcast, and how the brain works.
[23:07] I want to give a little shout out for the content I created for CUinsight for all the credit union folks listening. My article1 Word That Increased Sales by 38 Percentmade their top 10 list for 2019 - woohoo!
[23:54] I wrote 27 articles for Inc last year, and expect to create a bunch more in 2020!
[30:24] The third most read article is another new post from late December, called,Why You Should Ditch Your Flimsy, Paper Business Cards Right Now– this also gets into priming and brain associations, and is essentially outlining how the senses impact the way people think about your brand.
[36:11] This article is about framing, and breaking free of the way we have always done things.
[37:12] Asking a slightly different question can move the interaction in a much different direction.
The Brainy Mindset Coursestarts soon! Use the code BRAINY50OFF to take $50 off your registration and join us to tackle mindset!
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
The Brainy Mindset Course Use the code BRAINY50OFF to take $50 off your registration and join us to tackle mindset!
24 Jan 2020
84. How to Stack and Bundle Products and Services So They Are Most Appealing to Potential Customers
00:35:00
This show is all about how to stack products and services to make them the most appealing to your potential customers. Those of you who've heard me speak, have heard me talk about this before (especially in relation toThe Truth About Pricing)and the concepts of anchoring, adjustment, and relativity. I share examples of how certain numbers can get stuck in our subconscious and in comparison to the real price, we feel that we are getting a bargain.
I also talk about how infomercials use several combined behavioral economics techniques in their presentations. To show how I practice what I preach, you’ll learn about the pricing strategies for the new BE Thoughtful Revolution Membership group. I also give you an actionable example of how you can increase your prices by 10% and feel great about it. As always, this episode is packed with real world information and examples that correlate with behavioral principles you can use in your life and business.
I've had listeners asking about a membership group for a while now, and the BE Thoughtful Revolution Membership Group is now open. I’m so excited about this membership and all of the benefits it has to offer.
Members get direct access to me for all of your behavioral economics questions in our dedicated Facebook Community. This is where I'll be doing live Q&As, training, and all sorts of other stuff.
You’ll also get access to The Brainy Courses. The Brainy Mindset Course and Brainy Pricing Course are $399 each. (That’s a combined value of $800.) You’ll also get exclusive content from The Brainy Business, and members get special discounts on workshops, products, and strategy sessions and will be the first to know when new stuff is coming out.
The membership is $99 a month, but the first 50 people to sign up with code LAUNCH get 60% off and will only pay $39 a month. Lock in that price before it’s gone!
[05:36] Stacking and bundling products and services. Anchoring, adjustment, and relativity are the real concepts at play in this process.
[06:43] Anchoring and adjustment is about our brains being swayed by numbers.
[07:11] The Snickers study I share all the time is part of this concept of anchoring.
[07:28] The brain latches onto the number and will move up or down from there.
[08:15] When an item is limited, people will actually buy more. This is all because of anchoring, and even unrelated numbers can have an impact on this.
[09:03] If you throw in a larger number in your description, it makes the price seem smaller.
[09:43] The brain kind of glosses over what it hears at any given time because there is a lot going on, but it hears a number and latches onto it for a while.
[10:01] Think of these concepts in examples of infomercials. Your brain likely didn’t have any preset number for what it thought that random item was worth or what you would pay for it.
[12:26] If you ever discount something, or offer a special, make sure you talk about the higher number first.
[12:47] When I introduced the group, I talked about the benefits to you first, like “people have been asking for it” which is a combination of herding and priming.
[13:08] I mentioned you would get access to the Brainy Mindset Course and Brainy Pricing Course, which are both $399 for a combined value of $800.
[14:01] After sharing the value just in the courses being at $800, I shared the regular rate of the group, which is just 99 a month. And THEN I said that the first 50 people could use a code to claim their spot at only $39 a month. (That order was intentional, and it matters)
[14:38] You need to spell it out to people in the right order - and know that saying things are “priceless” doesn’t help your anchoring case.
[15:21] Instead of saying something is priceless, find a way to quantify that value.
[16:09] Relativity is where the second number feels lower or higher based on how it compares relative to the first number.
[17:16] The way numbers are shared via framing, relativity and anchoring make all the difference in how the customer reacts.
[17:36] When you have multiple options available and want to showcase one of them. You don't want to show the least expensive thing first and work your way up. Always start big and work your way down.
[18:36] Find the best product that you want to sell and has the most value for clients. Create a high anchor to present before that. Add 10% to the amount that you're going to charge.
[25:17] You could also create a totally different third product. You don't have to though.
[26:29] You can use the third option when you are selling physical objects like sofas.
[28:18] This can make the best option seem like the obvious best choice. It helps customers to feel good about the investment.
[29:29] The context and relativity all matters and makes a difference. It takes a little work on the front end to make sure you are presenting the options in the right order to help the customer make their best choice.
[30:38] Bundles are great tools and can be oh so useful. Often, bundles are provided with a discount and that is prônant where your mind goes first, but it isn’t required.
[31:29] If you make it easy for a customer to find everything they need with one or two clicks, you can charge a premium for that. Convenience has value.
[33:47] “We offer three courses, the first one is $500 and it is on XYZ, there is also a $600 course on ABC and an $800 course on being awesome. Which would you like to start with?” In that case, you are leading them to the $500 course, because it became the anchor.
[36:26] If you want the bundle to be the best choice and a clear best offer, you can have a discount included. Start by defining the main thing and build everything around making that look as good as possible.
[36:55] The way you talk about it, the framing, shifts based on what you want to showcase and what most people should pick.
[37:52] You can build your offering to be anything you want it to be and if you understand the value and can properly communicate it, you will find people to buy what you are selling.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
112. The IKEA Effect and Effort Heuristic, a Behavioral Economics Foundations Episode
00:34:29
On today’s behavioral economics foundations episode we are going to be talking about the IKEA effect as well as the effort heuristic. I’ve loved the IKEA effect concept since the moment I heard its name. It is such a quirky title, but so clear for what this concept is all about.
In its most basic form, we value things that we put effort into more than things we don’t. I’ll talk more about the details and nuances as we go through the episode and there are many more ways to use this concept than assembling your own furniture.
We take a look at ways the IKEA effect plays out in our lives as well as our businesses. The IKEA effect doesn’t just have to be used for product businesses. The IKEA effect can play a huge role in change management. Tune in to learn more about the IKEA effect and how it impacts our lives and businesses.
Show Notes:
[00:58] In its most basic form, the IKEA Effect is that we value things that we put effort into more than things we don’t.
[03:52] The core of this concept is that when people have an opportunity to build something themselves and when they put some effort in, they will value that thing higher than something they didn’t build.
[04:30] Some studies have attributed this to the pride felt when assembling something yourself, and that is part of it, but it isn’t the whole story.
[05:19] Theendowment effectis the phenomena in our brains where simply owning something causes us to find more worth in it than what other people see in it, or in its stated price.
[06:47] It may seem like the IKEA effect is merely an extension of the endowment effect, but studies have shown they are different. Even when people built something and were told they could not keep it, they still valued the item they made higher than those made by someone else.
[09:05] This phenomenon makes it clear why people think their own artwork is worth more than people will pay for it, or why they ask for a lot more money than their home is worth if they put a lot of “sweat equity” into creating it. We tend to think that our effort ties into the direct value and that something we spent a lot of time on is worth more to everyone else as well.
[10:12] Humans use effort as a guide for value even when we are not the ones putting in the work. This is known as theeffort heuristic, which has found that even when we don’t have direct memory of the work in question (i.e. we didn’t do it ourselves), we still connect effort and quality together.
[12:25] Whichever painting or poem people were told took more time to complete was the one they tended to like more and they valued it higher.
[14:17] When the image being shown is of high resolution, you can see the quality, and so that can impact the valuation in addition to the number of hours you were told it took to create.
[15:22] When the quality can’t be easily determined by our eyes, other pieces of information will guide the brain’s determination of value.
[17:26] The IKEA effect says that we value things higher when we put effort into them. So, the effort heuristic is present within our own IKEA effects, but when someone else is putting in the work, it can trigger the effort heuristic without being the IKEA effect.
[18:08] When you are exchanging dollars for hours, it reduces the effort to each 60-minute increment.
[21:02] When you are putting a value on your time, it is really hard to get individual hours to reflect your expertise and the true effort you have put into your career. The value you provide is often in the time you are savingthem. Knowing whatthatis worth is a better way to find what to charge than your total number of hours put in.
[21:52] The other side of the IKEA effect is knowing that people actually like to put in effort for things.
[23:37] Humans aren’t the only animals who value putting in the effort--birds and rats do this too. We are motivated by feeling like we did something and we earned it (whatever “it” is).
[25:28] It is important that you don’t make it too hard so that the project doesn’t get completed.
[26:40] The value of the IKEA effect was completely wiped away once they took the thing apart.
[27:37] People get to feel like they are smart and savvy shoppers and get the benefit of feeling like they did something in assembling their table or bunk beds for the kids or whatever.
[28:09] The research shows it is best to give a little creativity, along with a lot of guidance, to ensure people will complete the task, be more satisfied with the end result, and get the full benefits of the IKEA effect.
[29:33]Using the IKEA Effect for Change Management:When you are looking to introduce a change and just throw it at someone, they have no ownership of it. They didn’t put any effort in so they don’t value it that much. When they are able to help build it, it can make all the difference in whether they are a productive member of the team or a big hindrance you need to help the team get over.
[31:08] If there are people on your team who are particularly resistant to change, look for opportunities to include them as early as possible in the next project. Though be warned, if you ask them and don’t include their feedback it could actually end up worse than if you don’t ask at all.
[33:29] It can help your employees look for opportunities to help bring on change themselves, and be more open to changes when they come. Fostering a culture of change doesn’t have to be difficult, and the IKEA effect can make it a little easier.
[33:58] A glowing testimonial from a recent attendee of a virtual training on change management I gave to a Fortune 10 company. Looking for a webinar, training, or consulting? Emailmelina@thebrainybusiness.com
[35:22] If you enjoyed this episode on the IKEA effect and learned something please let me know!
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
293. How Brands like Nike and Apple Master Multi-Narrative Storytelling, with Dr. Troy Campbell
00:49:39
The core idea of multi-narrative storytelling involves identifying a central message or concept that resonates with the audience and then expanding on it through a series of complementary stories. While each narrative can stand alone, together they create a comprehensive and compelling representation of the brand's identity and message.
Two major brands that have successfully utilized multi-narrative storytelling in their marketing campaigns are Nike and Apple. Both brands have managed to create a global impact with their advertisements, encouraging consumers to connect with the brand on a personal level.
By using multiple storylines, these giants have enabled their campaigns to resonate with a wide range of individuals, allowing for broader appeal and deeper emotional connections. During the podcast, Melina and Dr. Troy Campbell discuss how both Nike's "Just Do It" and Apple's "Think Different" campaigns are prime examples of effective multi-narrative storytelling. Companies can learn valuable lessons from these successful brands and apply the same techniques to their own business strategies. This episode will help you to:
Uncover the power of multi-narrative storytelling in enhancing brand communication.
Master the art of crafting a compelling personal brand identity through diverse stories.
Grasp the importance of themes, metaphors, and language in creating engaging narratives.
Cater to diverse customer groups by implementing a multi-narrative approach.
Gain insights from storytelling techniques employed by successful companies.
Show Notes:
00:00:00 - Introduction, Dr. Troy Campbell is back on The Brainy Business podcast (one of our few three-peat guests!) to talk about multi-narrative storytelling, building on his background as a former Disney Imagineer and Netflix Consumer Insights employee.
00:05:02 - Shades of Black, Troy talks about how Netflix uses different shades of black to differentiate importance cues on their platform.
00:11:19 - Definition of Multi-Narrative Storytelling, Multi-narrative storytelling involves telling a core story or idea through multiple complementary narratives. Nike and Apple's famous ad campaigns, "Just Do It" and "Think Different," are examples of multi-narrative storytelling.
00:13:48 - Nike and Apple as Examples, The "Think Different" campaign started as a multi-narrative by showcasing the “misfits” and “rebels” who changed the world.
00:15:10 - The Power of Multi-Narrative Storytelling, Multi-narrative storytelling is about getting a core idea across. It involves creating a core story that is the center of your messaging, which is surrounded by different stories that are used to convey your message. This technique involves using narratives that have associations with your brand that the audience will recognize. (As an example in the Apple campaign, showing a picture of Einstein is powerful because of the associations we all have with him and what his image means.)
00:16:52 - Core Idea of Multi-Narrative Storytelling, The core idea of multi-narrative storytelling is to create a cause-and-effect story. It involves telling a story that explains who you are and what you're trying to achieve, and then surrounding that story with other narratives that support your message. You can use existing stories or create original ones.
00:19:15 - Using Existing Stories as Associations, Multi-narrative storytelling can involve using existing stories as associations to convey your message. This technique involves using stories that your audience is already familiar with and borrowing elements of those stories to support your message. This approach makes it easier for your audience to understand and relate to your message.
00:22:28 - The Power of Metaphor and Semiotics, Metaphor, semiotics, and word choice allow for a deeper level of understanding of how to convey messages. Using these techniques and creating a multi-narrative story around them can make the messaging more powerful and effective.
00:30:36 - Multi-Narrative Storytelling, The concept of multi-narrative storytelling involves creating a core story with multiple examples or narratives that support it. This approach allows for flexibility in communication and can be used to convey complex or abstract ideas. Multi-narrative storytelling is useful in branding, marketing, and other areas of business where a clear and compelling message is necessary.
00:32:19 - Just Do It, Nike's "Just Do It" slogan is specific enough to be relatable and broad enough to appeal to a wide range of audiences. This approach can be applied to other branding or marketing efforts by creating a core story that is supported by multiple narratives or examples.
00:38:01 - Branding, Effective branding involves creating a core story that is supported by multiple narratives or examples. This approach allows for flexibility in communication and can help to appeal to a wider range of audiences. The branding of The Brainy Business podcast is an example of this approach, using a fun and relatable logo to convey complex ideas.
00:41:29 - Thesis and Proof, Effective marketing involves creating a clear thesis and using specific examples to prove it. This approach can be used to convey complex or abstract ideas to a wider audience. The selection of imagery, titles, and stories should support the thesis and help to prove its validity.
00:47:12 - The Power of Storytelling, The way Troy implements his “scientific mind and artistic heart” approach can help businesses understand and leverage techniques from other companies like Disney or Nike to improve their own storytelling strategies.
00:47:43 - Multi-Narrative Storytelling, Companies can use multi-narrative storytelling to tie together narratives within their own organization, for the benefit of both customers and employees. Understanding the stories woven within a brand is essential for weaving them together to make a great brand.
00:48:37 - Related Episodes, Other podcast episodes relating to storytelling include David Paull on behavioral storytelling, Dr. Michelle Auerbach, and Sam Evans. These episodes and their related materials are linked below.
00:49:10 - Conclusion, Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
327. Overcoming Speaking Anxiety: Matt Abrahams' Strategies for Confident Communication
00:42:46
Matt Abrahams, a leading expert in communication and a lecturer at Stanford University's Graduate School of Business, shares valuable insights on improving communication skills in spontaneous situations on The Brainy Business podcast hosted by Melina Palmer. In this episode, Abrahams discusses key strategies from his book, Think Faster, Talk Smarter, which focuses on helping individuals feel more comfortable and confident in impromptu speaking scenarios.
Abrahams draws from personal experiences and observations to develop his methodology. He highlights the challenges individuals face in speaking spontaneously and emphasizes the importance of confidence and commitment when responding. Through anecdotes and practical tips, Abrahams shows how anyone can enhance their communication skills in impromptu situations. Throughout the episode, Abrahams discusses the significance of active listening, reframing situations as opportunities, and effective structure in communication. He encourages individuals to embrace uncertainty, take risks, and prioritize listening over speaking. Abrahams' book offers practical steps and exercises to help listeners practice and refine their communication skills. Professionals seeking to improve their spontaneous speaking and communication skills–from presentations to job interviews to networking events–will find this episode insightful and actionable. Abrahams' expertise and relatable anecdotes make it a valuable resource for individuals looking to enhance their speaking abilities in spontaneous situations.
In this episode:
Explore how proficient communication in unexpected situations can give you an edge.
Learn how enhancing your active listening abilities can drastically improve the quality of your communication.
Delve into the significance of preparing for spontaneous conversations.
Master the art of using concise structures to drive powerful communication.
Get a grip on actionable strategies for honing your communication skills in unplanned situations–from speaking on a stage to job interviews to networking events and more.
Show Notes:
00:00:00 - Introduction, In this episode, Melina Palmer welcomes Matt Abrahams, a leading expert in communication and a lecturer at Stanford University's Graduate School of Business. They discuss Matt's new book, Think Faster, Talk Smarter, which focuses on speaking effectively and confidently in spontaneous speaking situations.
00:03:10 - The Need for Spontaneous Speaking Skills, Matt explains how his personal experiences and feedback from students led to the development of his methodology for speaking confidently in the moment. He emphasizes the importance of spontaneous speaking skills in everyday communication.
00:05:23 - Overcoming Spontaneous Speaking Challenges, Melina shares her own experience of struggling with spontaneous speaking during a job interview. Matt tells a story about an unexpected question he faced during an interview and how he turned it into an opportunity to showcase his skills. The lesson is, even when you are caught off guard, to connect to something and commit to your response.
00:09:31 - Confidence and Commitment in Spontaneous Speaking, Melina highlights the importance of confidence in spontaneous speaking, as people can sense if you're not confident. Matt explains that committing to your response, even if it's unexpected, is crucial and draws parallels with the world of improvisation.
00:13:25 - Lessons from Improvisation, Matt discusses the influence of improvisation on his methodology and shares the principle of "failing big." He encourages speakers to commit fully to their responses and not be afraid of failure, as it can lead to unexpected successes.
00:15:24 - The Power of Getting Lost, Matt Abrahams discusses the importance of getting lost and embracing uncertainty in order to expand what's possible in spontaneous situations. He explains how striving for control and perfection can actually limit our potential, and how cognitive bandwidth affects our performance.
00:16:25 - Striving for Mediocrity, Abrahams encourages his students to strive for mediocrity in order to achieve greatness. By focusing on getting things done rather than judging and evaluating, individuals can have more resources to perform well. He emphasizes the need to embrace uncertainty and take risks.
00:17:43 - Allowing Yourself to Get Lost, Abrahams explains the importance of allowing oneself to get lost and try new things in order to broaden what's possible and stay focused in the present moment. While it can be challenging, embracing uncertainty can lead to rewarding outcomes.
00:18:42 - Overcoming the Fear of Average, Melina shares a personal anecdote about feeling overwhelmed by being graded on a curve in college. Matt highlights the concept that from average, greatness can emerge, and emphasizes the need to focus on personal growth rather than labeling ourselves with grades.
00:20:04 - The Six Steps to Better Communication, Abrahams outlines his six-step methodology for improving communication, which includes managing anxiety, getting out of our own way, reframing spontaneous speaking as an opportunity, emphasizing the importance of listening, using structure, and maintaining focus.
00:29:22 - The Value of Listening, Matt discusses the importance of listening in conversations and the benefits it brings to the listener. He explains that listening is a muscle that needs to be strengthened and that good listeners help speakers solve their problems instead of immediately jumping in with solutions. He also emphasizes the need for space, pace, and grace in listening.
00:30:58 - The Mindset of Listening, Matt Abrahams shares insights from an interview with a listening researcher, Guy Ichakov, who highlights the mindset of a good listener. He explains that a good listener's job is to help the speaker solve their problem, rather than trying to solve it themselves. Abrahams reflects on his own tendency to jump into problem-solving mode and actively works on adopting a listening mindset.
00:32:21 - The Power of Structures in Communication, Matt Abrahams discusses the importance of using structures or frameworks in communication to help organize and prioritize information. He introduces the "Swiss Army Knife" structure of three simple questions: What? So what? Now what? This structure helps in formulating clear and concise messages that are easy for the audience to understand.
00:35:51 - Preparing for Spontaneous Conversations, Matt Abrahams explains the irony of being able to prepare for spontaneous conversations. He compares it to jazz musicians following certain chords and patterns, or athletes training specific behaviors to respond spontaneously in a game. Abrahams emphasizes the value of frameworks and structures in preparation, using an example of three simple questions.
00:40:01 - Conclusion, Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
304. Decoding Group Identity: Insights for Business Leaders with Dominic Packer (Refreshed Episode)
00:48:45
Effective leadership involves being aware of and managing one's social identities within the workplace. To foster a sense of teamwork and shared purpose, leaders should focus on building an environment where employees feel heard, understood, and valued. This not only strengthens group dynamics but also reduces the instances of us-versus-them mentalities.
Packer shared insights on how leaders can better manage their social identities, emphasizing the need to validate group identities continually based on his research and book, The Power of Us. He warned against potential pitfalls when employees get promoted, urging them to be cautious of their friendships at lower organizational levels. Packer underscored the importance of ensuring actions don't alienate leaders from the rest of the group, as this can negatively impact their ability to lead effectively.
In this episode, you will:
Discover how group identity influences individual behavior and decision-making.
Explore strategies for maintaining unity while encouraging constructive dissent within teams.
Uncover the nuances of identity shifts, allowing you to better understand and predict consumer behavior.
Learn about the critical role diversity and inclusion play in collaborative environments.
Gain insights on translating group behavior principles to foster a thriving organizational culture.
Show Notes:
00:00:00 - Introduction, Melina welcomes Dr. Dominic Packer to the podcast and introduces the topic of the power of group identity and collective behavior, as featured in Dominic's book, The Power of Us.
00:02:22 - Shifting Identities, Melina and Dominic discuss the multiple aspects of identity and how individuals shift between different identities based on context and group membership.
00:05:16 - Writing Through the Pandemic, The conversation shifts to the challenges of writing a book with a co-author during the pandemic, including the need for accountability and social support. (With lessons any aspiring author can use today.)
00:08:41 - Influence of Group Norms, Dominic explains how group norms can influence behavior through social pressure, informational influence, and signaling of group identity.
00:10:12 - Types of Identity, The three types of identity – personal, relational, and collective – are discussed, with a focus on how collective identities can become emotionally important and drive decision-making.
00:14:59 - The Flexibility of Identity, Identity is not only discerning, but also flexible, malleable, and adaptive to current circumstances. People have a readiness to identify, and a new way of categorizing ourselves can create a new identity. The story of two brothers who split their shoe making business in Germany during WWII divided a town into a fierce rivalry. This shows how categorizing the world can produce identities and group-based differences.
00:19:43 - Cooperating Opportunities with Others, Groups are fundamental to human survival, and we tend to band together for collective achievements. A thing we have in common with others is an opportunity to cooperate. By extending a little more trust to others and receiving a little more trust from them in return, it facilitates collaboration and allows groups to achieve things that they couldn't achieve on their own.
00:23:13 - Multileveled Identities, Lower-level identities in company corporate situations like different divisions or units are not necessarily bad. One solution to reduce tensions and rivalries between the lower-level identities is to shift people's focus from their lower level identity to their higher level identity, the superordinate identity, which is the company as a whole. Companies need to create conditions that bring people together through common goals and shift people's focus from their lower-level identity to their higher-level identity.
00:25:45 - Incentive Structures and Resource Allocation, Leaders need to create conditions by which people can see themselves as part of something larger than just their immediate experience.
00:29:56 - The Importance of Divergent Opinions in Groups, It is important for groups to have divergent opinions and new ideas to innovate and become more productive in the long term. Dissenting behavior is often seen as annoying or slowing down the group, which could be a threat, but that isn't the whole story. The most identified group members are the most likely to dissent because they care a lot about the group. It is important for leaders to create a psychologically safe environment where people feel comfortable speaking up and being critical.
00:35:59 - Tips for Creating a Culture of Dissent, It is important to distinguish between dissenters who are trying to change the group in a positive way and troublemakers who stir up trouble just to be difficult. Leaders should encourage a culture where dissenters who are positively motivated feel comfortable speaking up, engage in behaviors themselves that validate the group's identity, and make sure they embody it. Leaders should avoid behaviors that differentiate them too much from the rest of the group and reduce large-scale pay discrepancies between people at the top of an organization and the average employee.
00:39:15 - Leadership and Managing Social Identities, Leaders need to manage the social identities of the people they are leading, foster it, build it, and help people experience it and see it. A fundamental idea that arises from this is that followers are much more likely to be inspired and motivated by leaders who they see as one of us, that they see as possessing an identity in common. Leaders need to engage in behaviors themselves that are continually validating of an identity, reduce things that can work against that,
00:45:10 - Balancing Identity and Groups, Dominic Packer discusses the importance of balancing identity and groups, how our identities shift throughout the day, and how it affects what we buy and consume. He emphasizes the need for leaders to understand their roles within different groups and how they can be more effective members of the global collective.
00:46:28 - Key Takeaways, Melina reflects on the importance of understanding how easily we can be influenced by our identities and group affiliations. She highlights the concept of the "Town of Bent Necks" and sibling rivalries that can change what we buy and wear. She encourages listeners to read both The Power of Us and For the Culture, two books that teach valuable lessons for anyone in business.
00:48:14 - Conclusion, Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
457. Proximity: Redefining Business and Innovation in a Digital Age
00:43:50
In this episode of The Brainy Business podcast, host Melina Palmer welcomes Dr. Rob Wolcott and Kaihan Krippendorff, co-authors of the book Proximity. Rob, an adjunct professor of Innovation at both the Booth School of Business and Kellogg School of Management, and Kaihan, the CEO of Outthinker Networks, delve into the concept of proximity and its transformative potential across industries.
The discussion begins with the origins of the book, inspired by a tech conference and further catalyzed during a 24-hour summit amid the COVID-19 pandemic. They explore how digital advancements enable value creation closer to the moment of demand, impacting various sectors from healthcare to energy. Rob and Kaihan share insights on the future trajectory of industries as they move toward a more proximate model, highlighting examples such as generative AI, 3D printing, and innovative pharmaceutical production.
In this episode:
Understand how proximity is reshaping industries by enabling value creation closer to the moment of demand.
Explore practical examples including video streaming, on-demand pharmaceuticals, and 3D-printed drones.
Learn about the implications of proximity for legacy brands and how they can leverage existing assets while innovating.
Discover the potential of proximity in future technologies, including virtual reality and space exploration.
Gain insights into the strategic opportunities proximity presents for businesses to become more responsive and efficient.
Show Notes:
00:00:00 - Introduction Melina Palmer introduces the topic of proximity and today's guests, Dr. Rob Wolcott and Kaihan Krippendorff.
00:03:45 - Background on Rob Wolcott Rob shares his extensive experience in innovation and entrepreneurship, highlighting his roles at various institutions.
00:06:30 - Background on Kaihan Krippendorff Kaihan discusses his work with Outthinker Networks and his approach to innovation in large enterprises.
00:10:50 - The Concept of Proximity Rob and Kaihan explain the genesis of their book and the significance of proximity in the digital age.
00:18:15 - Examples of Proximity in Action Discussion on how proximity is changing industries such as pharmaceuticals and energy.
00:30:00 - Implications for Legacy Brands Strategies for established companies to adapt and thrive in a proximate world.
00:40:10 - The Future of Proximity The role of proximity in virtual reality and space exploration.
00:42:15 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
329. From Present Bias to Future Focus: Emotionally Connecting with Your Future Self, with Hal Hershfield
00:43:25
Hal Hershfield is here to discuss the concept of the future self and its impact on decision-making, featuring insights from his new book, Your Future Self. Hershfield explains that humans often prioritize their present desires over their future goals, leading to short-term thinking and procrastination.
He highlights the importance of considering future outcomes when making choices and provides strategies for aligning present actions with future desires. This episode is relevant for individuals seeking to overcome present bias and improve their decision-making skills. By understanding the principles of what Hal calls “mental time travel” and applying the techniques discussed in the episode, listeners can increase their long-term goal prioritization and make more informed choices that lead to long-term success.
In this episode:
Discover the intriguing concept of the future self and how it shapes our perceptions.
Uncover the power of your future self for superior decision-making.
Establish an emotional bond with your future self, fostering personal growth.
Understand the application of mental time travel in business to strengthen your strategies.
Show Notes:
00:00:00 - Introduction, In this episode, Melina Palmer interviews Dr. Hal Hershfield, author of Your Future Self. They discuss the concept of time discounting and the ways in which our present and future selves are connected.
00:02:08 - Understanding the Self, Hal explains that the self is a bundle of associations, emotions, thoughts, and ideals that have some stability over time. He explores the idea of how we define ourselves and how our perception of our future selves affects our decision-making.
00:06:00 - Similarity with Future Self, Hal highlights the importance of feeling a sense of connection and emotional overlap with our future selves. The more we see ourselves as similar to our future selves, the more likely we are to make decisions that benefit them.
00:11:42 - The "We" Aspect, The concept of the "we" relationship, similar to how we view our relationships with others, can also apply to our relationship with our future selves. Thinking of our future self as part of our collective identity can help us make decisions that benefit both our present and future selves.
00:13:23 - Reframing Future-oriented Decisions, Hal discusses the importance of reframing future-oriented decisions to provide immediate benefits and satisfaction. By finding pleasure in doing something good for our future selves, we can increase motivation and make better long-term decisions.
00:14:44 - Making Decisions with the Future Self in Mind, Hal emphasizes the importance of considering how we will look back on our decisions instead of focusing solely on our immediate feelings. By stepping into the shoes of our future selves, we can reassess our choices and consider the value of relief in completing tasks versus the regret of procrastinating.
00:15:11 - The Hidden Zero Effect, Dr. Hershfield introduces the concept of the "hidden zero effect" in decision-making. By considering both the immediate benefits and long-term consequences of our choices, we can make more informed decisions. This approach helps us avoid neglecting the potential negative outcomes or overlooking the relief we may feel in completing tasks.
00:16:34 - Mistakes in Mental Time Travel, Hal discusses three common mistakes in mental time travel: missing your flight, poor trip planning, and packing the wrong clothes. These mistakes, which are all featured in his book, Your Future Self, highlight how we can become too focused on the present moment and fail to consider the future implications of our actions. By avoiding these mistakes, we can make better decisions for our future selves.
00:19:24 - Short-Term vs. Long-Term Focus in the Workplace, In the context of work, it is important to balance short-term and long-term focus. Hal suggests considering whether we prioritize urgent tasks over important ones and how we can shift our mindset to focus on long-term goals. This applies to both individual employees and collective organizations.
00:28:28 - Learning from Individuals, The conversation discusses the importance of learning from individuals within an organization and how their actions can be used to overcome challenges.
00:29:23 - Exciting Future Research, Dr. Hershfield shares his excitement about two areas of future research. The first is a deeper exploration of commitment devices and understanding the predictors of their adoption. The second is focusing on collective decisions, environmental decisions, and end-of-life planning, including the use of letter-writing exercises.
00:32:35 - Balancing the Present and Future, Hal discusses the concept of balancing the present and future. He shares a personal story about realizing that there will be a day when his children no longer want to spend time with him, highlighting the importance of living in the present while also considering future goals and values.
00:34:46 - Behavioral Change Intervention, Hal and his colleague are working on a project using the idea of balancing the present and future as a behavioral change intervention. They aim to apply this concept to various areas, including parent-child relationships, to help individuals make choices aligned with their long-term values.
00:38:42 - Intentional Mental Time Travel, The conversation emphasizes the importance of intentional mental time travel. Instead of reactive thinking, individuals should make deliberate choices about when to live in the moment and when to consider the impact of their actions on the future.
00:43:07 - Conclusion, Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
93. Normalcy Bias: Why We Love To Know What’s Coming And How It Keeps Us Stuck (a Behavioral Economics Foundations Episode)
00:19:12
Have you ever wondered why it's blindly accepted to just do things the same way they’ve always been done? Have you noticed how a new business can completely disrupt an industry by doing things totally different? Sometimes they put established companies out of business, even though the original business could have implemented the same strategies before the disruptor. A big reason this happens is normalcy bias.
Normalcy bias is where the brain believes that everything will be normal and waits for things to be normal again in a time of crisis. This principle not only applies to business, but it very much applies to some of the reasons many people weren't prepared for the coronavirus pandemic even though it had been on the news weeks before the shutdown. This normalcy bias episode is directly influenced by episode91. Coronavirus and How the Human Brain Responds to Pandemics.
If you have not yet listened to that episode…I highly recommend it. There is so much going on right now with new announcements every day of countries taking new and very important precautions to stop the spread of this disease. That episode talks about why the brain is wired to react the way it does during a novel and frightening situation like this, and why we all feel inclined to hoard lots of supplies like toilet paper even when we know that is a bit irrational.
Normalcy bias is very much tied in with the situation we all find ourselves in as coronavirus is changing our entire world. It is also a bias that you can overcome to benefit your business. It’s also something we are talking about in the BE Thoughtful Revolution.
If you’re interested injoining the BE Thoughtful Revolution, you can get a 7 day free trial and a 50% discount using the code HALFOFF through March 31, 2020.
Show Notes:
[03:39] Normalcy bias is the tendency for the brain to believe that everything will be normal – and to wait for things to be normal again in times of crisis or change. This impacts both sides of change.
[04:20] It's easy to assume that things will stay the same and remain normal. This combines with availability bias and time discounting.
[05:09] We have a hard time preparing for something before it happens.
[05:48] Disruptors are able to infiltrate because those in the industry are too close, and their normalcy bias is telling them that things will always be the same.
[06:09] Disruptors can see things differently, because they aren't subject to the same constraints of the brain.
[07:29] Progressive’s head of marketing “fires himself” every 12 to 18 months to reset as if he just got hired.
[10:03] Normalcy bias makes it so we all don’t properly prepare for or anticipate a big change. The other side of this, is that once change is thrust upon us, while we are in the midst of it…we cling to “normal” more than ever.
[10:28] The brain grieves for what used to be, what it was used to, and its inclination is to ride out the storm until things are normal again.
[11:12] Our brains love the status quo and what they are used to.
[12:02] An example of the finance industry, status quo, and Apple Card.
[14:29] The desire to wait and see…to weather the storm when you are in the midst of change…is normalcy bias keeping you stuck. If you aren’t careful, it can cause you to miss the boat and your business could be in serious trouble.
[15:47] My brain is constantly wanting to say that this is a temporary setback. I can’t rely on that being the case. My business model needs to adapt to the possibility that there may only be a few conferences in the coming months.
[16:44] This is the time to look at other opportunities: what can be done virtually?
[17:33] I also need to make sure that I am investing time and energy into what is the best fit for the market. What do people want, and need and where does that coincide with my expertise?
[18:29] Having too much reliance on any particular product line, client, or type of service is always something that should be reviewed.
[19:07] If you are listening to this episode right when it comes out or shortly thereafter, coronavirus is presenting the opportunity for you to practice getting out of your own normalcy bias and looking at your business differently.
[20:04] If you aren’t already a member of theBE Thoughtful Revolution, please do join us now. You can take advantage of a 7 day free trial if you join by March 31, 2020 and use the code HALFOFF to get a 50% discount.
[20:41] Normalcy bias is constantly impacting you in life and business. Now is the time your brain wants you to wait and see…and I’m here to tell you that strategy will not suit your business well.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
163. How to Approach Negative Reviews Using Behavioral Economics
00:41:30
Today we are going to be talking about something that is sort of a fact of life whether we like it or not. If you want to live in the world amongst other people and put your personal or professional brand out there, you need to be prepared for negative reviews.
This episode was inspired by a long-time listener who has become a friend and colleague – Jeff Pool from the Human Behavior Lab at Texas A&M University. Thankfully, it wasn’t inspired by him giving a negative review to The Brainy Business or anything like that. Instead, it was something he suggested a while back could be an interesting episode. It felt like the right time with my book just coming out a couple of months ago now, and the recent behavioral economics analysis of Amazon episode where I talked about the power of social proof and how they popularized reviews.
I also asked the BE Thoughtful Revolution for some insights on what they might like to know or what comes to mind when thinking about negative reviews while creating the content for today’s episode. The consensus was based on how to respond to them: Should it be done right away or delayed? Publicly or privately? What tone to use? And more.
Show Notes:
[00:07] Today’s episode is dedicated to negative reviews.
[00:45] If you want to live in the world amongst other people and put your personal or professional brand out there, you need to be prepared for negative reviews.
[03:42] Melina shares an email from her friend Kurt Nelson of the Behavioral Grooves podcast hoping I’d get 4.7 stars on my book.
[05:11] It is important to accept that negative reviews are coming and just wrap your head around that.
[07:54] Why do we feel these so much more and why do they stick with us differently? Why is their weight heavier than positive reviews?
[08:23] The reason we even look at or have influence from reviews and testimonials and star ratings (also known as social proof) is because of our natural tendency to herd.
[10:21] Negative reviews are triggering our herding instincts and make the subconscious get scared of what could happen if we get too many more of those in the future.
[11:43] Reading or otherwise looking at negative reviews makes us focus on them more than the positive ones because of those herding instincts.
[13:34] We have a perception about ourselves and the type of person we are: honest, ethical, good at what we do. When we are confronted with information that threatens that perspective our brains really don’t like it, we want to resolve that cognitive dissonance.
[15:12] Even though you don’t like it, there is probably some kernel of truth in the negative thing someone had to say about you or your brand. What if you looked for the learning opportunity in a negative review?
[17:00] Don’t ostrich – It may be tempting to avoid reading the reviews because they can be painful, but not knowing what people are saying doesn’t make it so they don’t feel that way (and aren’t sharing with others).
[18:48] In general, yes, you should respond to all the comments you get, both good and bad. And, tempting as it may be, don’t delete negative comments. (If they are profane or blatant lies it could be an exception, but in general, this is not a good practice.)
[20:12] People aren’t often expecting any response, let alone a kind and open-minded one. You will be surprised at how many people you can bring back around to your side.
[23:12] It is best to respond to the person wherever they posted to begin with.
[24:30] You want and need that public acknowledgment for all the future people who see the comment.
[27:39] Treating this person as a human who deserves kindness triggered some reciprocity and encouraged them to act in kind and, as far as I know, keep listening and following me.
[28:29] Not everyone is your customer and that is ok! There are so many people out there who you can or will resonate with; focus on them.
[30:54] It is really important to know what you are about, who you are for, and why you do the things you do before you are confronted with a negative review that addresses one of those things.
[33:39] The lesson is to know your customer and identify what matters to your brand when you are in acoldstate, so you can know what to take to heart and change, and what can be heard and let go of without having to constantly address your strategy.
[34:08] There are some times where it makes sense to say you are sorry, of course, but in general, you don’t need to (and actually shouldn’t).
[35:29] You can absolutely acknowledge their feelings, but you don’t have to say “sorry” to do that.
[37:30] When you identify what matters to you and your company in that cold state, it is also important to know about your brand voice.
[38:56] For most brands, it is best to be respectful and kind in your correspondence with customers and others in public and in private.
[40:05] Do what you can to reframe your perception to see the opportunity in a negative review.
[40:18] Hating negative reviews is natural because of our herding instincts, focusing illusion, fundamental attribution error, and cognitive dissonance, but thankfully understanding that can help you feel better about addressing them, overcoming your instincts that might not be the best initial response, and letting you give the reviewer the benefit of the doubt when crafting responses.
[41:08] Don’t jump to apologizing. More often than not it will not work well.
[41:21] Melina shares her closing thoughts.
[41:23] The Brainy Business was nominated for the best market research podcast of 2021. Vote for The Brainy Business hereby August 31!
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
181. The Power of Metaphors for Brands with Olson Zaltman’s Malcolm and Hannibal Brooks
00:45:55
You are familiar with metaphors...you likely learned about them in elementary school. But do you know how important they are in your business?
Well, it turns out that metaphors are way more important in understanding the mind of your consumer than you could have possibly imagined. There are two associates from the firm Olson Zaltman here today to share the power of metaphors and how they use them in their Zaltman Metaphor Elicitation Technique (ZMET) process. The ZMET was created by Dr. Gerald Zaltman at the Harvard Business School in the 1990s and is still incredibly relevant for brands today.
During the conversation, Malcolm and Hannibal Brooks will share how they have used the ZMET for brands like Harvard, Tropicana, a funeral company, and more. Plus, insights into the 16 deep metaphors they work with at Olson Zaltman and why they matter for all companies who want to appeal to their customers (i.e. everyone!).
Show Notes:
[00:06] In today’s episode we are digging deep into the power of metaphors with two associates of Olson Zaltman.
[02:53] Malcolm and Hannibal share about themselves, their background, and how as twins they ended up in the same field and working together.
[03:44] They both graduated with degrees in food science and went to a master’s program focused on marketing, management, and consumer psychology.
[05:57] At Olson Zaltman, they do research that is focused on understanding the unconscious through metaphor. Their process is focused on using imagery and verbal metaphors to understand emotions.
[06:40] We think in images, not in words; metaphors are our way of describing the world.
[09:28] Metaphors really affect the way we perceive the world around us.
[11:04] Part of what makes these metaphors universal is that a lot of them originate in the experiences we have in life that exist before we can even verbalize.
[12:25] There are 16 deep metaphors that define our experience.
[14:48] Different groups of consumers might have different metaphors or understandings of a product or service.
[15:24] For women, clothing is a form of self-expression and freedom. For men, clothing is often about a form of control.
[18:12] They share examples of the types of business problems they are solving.
[19:42] With ZMET they want to understand with your particular consumers, are they getting something out of your product and your brand?
[22:44] Prior to the ZMET process the business only needs to know the problem that they are having.
[25:08] The ZMET process can help answer a lot of questions for businesses.
[25:57] They share their findings from a case study with Harvard.
[28:17] Helping to trigger the unity piece can be very valuable (as was the case for Harvard). They have found that there are core principles that they stumble upon time and time again.
[31:12] Deep 1-on-1 guided conversations help them unpack what is the best way for the business to move forward.
[33:20] You want to understand your brand’s core assets and what fits with the mindset people have around it.
[36:19] One of their most fun cases to talk about is the research they did for the Funeral Service Foundation. They found that people would look at their funeral almost as a performance. People don’t want to be remembered in a way that is sad. They want to be remembered for who they were, with a celebration.
[38:57] Their recommendations included creating this online experience that is more fun, including the most fun things about the person and how they want to be remembered. It gets people thinking and talking about their death while they are still alive by making it less scary.
[41:33] Their real work is understanding stories and connecting with people.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
454. Social Proof in Action: Understanding the Herding Instinct
00:42:21
In this episode of The Brainy Business podcast, Melina Palmer explores the fascinating world of social proof, a cornerstone of behavioral economics and a powerful tool for influencing decision-making. Melina goes beyond mere ratings and reviews, emphasizing our inherent tendency as a herding species to look to others for guidance in decision-making. She discusses how businesses can effectively leverage social proof to build trust and credibility, using real-world examples and the six types of social proof: expert, celebrity, user, wisdom of the crowd, wisdom of friends, and certification.
In this episode:
Learn about the origins of social proof and its significance in behavioral science.
Discover the six types of social proof and how they can be utilized in business strategies.
Explore practical examples of social proof in action, from testimonials to celebrity endorsements.
Understand the psychological mechanisms behind social proof and its impact on consumer behavior.
Gain insights into how to incorporate social proof into your business effectively.
Show Notes:
00:00:00 - Introduction Melina Palmer introduces the episode and the relevance of social proof in behavioral economics.
02:30:00 - The Origin of Social Proof Discussion on Robert Cialdini's introduction of social proof in his book Influence.
11:00:00 - Types of Social Proof Overview of the six types of social proof: expert, celebrity, user, crowd wisdom, friends' wisdom, and certification.
21:00:00 - Expert and Celebrity Influence How experts and celebrities can provide social proof and the importance of alignment with brand values.
31:00:00 - User and Crowd Wisdom The role of user testimonials and crowd wisdom in influencing decisions.
36:00:00 - Friends' Wisdom and Certification Leveraging friends' recommendations and certifications for credibility.
41:00:00 - Ethical Considerations Discussion on the ethical use of social proof in marketing and business.
43:00:00 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
238. Reciprocity: The Amazing Power of Giving (Refreshed Episode)
00:42:28
Today’s episode is all about reciprocity, one of my very favorite concepts and approaches to life and business. For me, it is natural to give first and I enjoy being generous. I don’t recall the specific names of the love languages, but nurturing relationships is something that matters a lot to me (or whatever they call it) and would definitely be one of mine.
I have seen time and time again how this comes back so much bigger when you give first and don’t just do it to get stuff in return.
Life and business are a long game. It is so much better to be giving and generous up front and know that things will work out and take care of you eventually. This is also why I had last week’s refreshed episode about the brainy benefits of gratitude and why I always talk about reciprocity around the holidays and why this episode, which originally aired as number 23 of the podcast, was an obvious choice for me to refresh for you today. This is also leading into Friday’s brand new episode which will look at nonprofits and how generosity and giving and behavioral economics are the same and different when we step outside the typical customer/company relationship and into charitable giving. Now…let’s dig in on reciprocity (which is much more than just free gifts).
Show Notes:
[00:39] Today’s episode is all about reciprocity, one of my very favorite concepts and approaches to life and business.
[01:21] Life and business are a long game. It is so much better to be giving and generous up front and know that things will work out and take care of you eventually.
[02:49] Reciprocity is what happens when someone gives you something (whether you want it or not, whether you value it or not) and you feel obligated to give them something in return.
[04:03] Melina shares one of her favorite examples of reciprocity from The Big Bang Theory.
[05:44] Our brains tend to overvalue the gifts we are given and compensate in a way that exceeds the value of the original gift.
[08:42] The gift of kindness and a little effort goes a long way.
[09:20] Reciprocity presents itself in many ways but there are three categories: the free gift, the small ask on the path to something bigger, and the big ask to get something more realistic.
[09:44] The free gift is a little something that is given freely and helps make you a little more endearing in the eyes of the recipient.
[12:37] Another way to give out free gifts is with samples.
[15:17] Reciprocity and free gifts are often used when asking for donations.
[17:44] Other examples of free gifts are sales or discounts.
[19:05] Discounts will often cost you more so use them sparingly and with a lot of strategy.
[22:16] Be of service to other people; reciprocity is a key reason why.
[22:55] The next category of reciprocity is a small ask to get something bigger.
[25:56] What is the gift you can give that can encourage businesses to donate later? What you want to do is ask for them to perform a small and simple task they are unlikely to refuse. Then when you come back for a donation they are more likely to say yes.
[28:47] Getting someone to say yes once to something small increases the likelihood that they will say yes again.
[30:06] In the last category you start with a big, ridiculous, or even unreasonable ask to make the thing you actually want to ask for seem more reasonable and appealing by comparison.
[30:57] Melina shares about a study on a university campus asking for volunteers.
[34:38] If you are going to use the big-then-small tactic it should be the same person both times and you should do them really close together. One obvious place to use this tactic is in negotiations of any kind.
[36:06] Melina shares a story about setting rates and pricing.
[39:02] Melina’s closing thoughts
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
12. Relativity: The Brain Can't Value One-Off Items
00:41:09
Our brains use relativity to make comparisons when assigning value. Relativity is one of my favorite concepts and part of the behavioral economics foundations. Today’s show builds upon last week’s behavioral economics podcast on anchoring and adjustment, because these two concepts are closely aligned.
Relativity is all about value. In this episode, I dig deep into relativity to make sure you really understand what it is. Then I get into all the examples for varying industries and circumstances, so that you can apply this concept in your business. I also talk about how to increase sales by creating three offerings.
Show Notes
[07:00] Last week we talked about anchoring and adjustment. I also mentioned relativity several times in the behavioral economics podcast, because the two concepts are very much aligned.
[09:59] In behavioral economics, relativity is about value.
[10:50] How relativity applies to value. Our brains make comparisons to assign value to things.
[11:54] When it comes to value everything is relative. Just like in the grilled cheese example (episode 8), we know that $200 is a high price for a sandwich because we can compare it to other things.
[12:11] Our brains are constantly making comparisons between items. Even though, those comparisons aren’t always the most logical.
[12:25] A simple example on how relative values can shift.
[13:49] The will to save $15 depends on the item it is attached to. The difference between saving $15 on a dollar item and a $500 item is relative (but it shouldn’t be).
[14:45] How people will drive across town to save on gas. Even though, the savings may not compensate for the time and expense of driving across town to purchase that cheaper gas.
[16:58] An example of how silver medalists aren't happy with coming in second.
[18:40] How to incorporate relativity in a retail shop.
[18:59] Anchoring and adjustment works together with relativity. An example where seeing a $99 t-shirt when walking in a store makes the real price of the shirts seem much lower even though it may be higher than last year's price.
[20:28] The purpose of the $99 shirt is to make other prices look low.
[21:44] An example of how setting an expensive espresso machine next to another one will help it sell. The high anchor makes the other pricing look more affordable.
[23:22] Three option pricing advice. Offer a best thing, something similar but worse, and something completely different.
[24:30] In the earring comparison example, find a favorite color or birthstone to create a comparison example. Have a slightly more expensive pair that is more than double in size. This uses relativity to show the better value. Also include a completely different pair that is at least the price of the best pair.
[26:07] When given three choices most people will pick the middle choice.
[26:09] A furniture store example. Start with the most expensive option and work your way down. You want to set a high anchor not a low anchor.
[28:10] A real estate example by Dan Ariely.
[29:09] We like to make decisions based upon comparisons. Even if those decisions aren't rational.
[30:10] Including a decoy will help create a point of comparison.
[30:52] An example of the value of relativity from The Economist. Using relativity to sell subscriptions.
[32:29] How removing an option that no one buys makes sales go down. This is the power of relativity in action.
[33:46] When setting prices consider the decoy. If you are offering a service, look at the packages you are offering. Have a great value and a worse value and then a completely different product. Your brain wants to feel like it completed the due diligence to make the best decision.
[35:58] An example of how a high priced bundle actually made another high-priced offering seem affordable.
[37:22] A diet example that compares calories burned to calories consumed. You have to run 50 minutes to burn off one can of soda. Finding the right point of relativity can help encourage healthy behavior.
[39:43] Hopefully you can see ways to incorporate relativity into your business.
[42:19] Be sure to tune in next week for one simple mindset adjustment that will change your life and business forever.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
125. How to Approach and Implement Behavioral Insights, an Interview with Michael Hallsworth
00:37:50
In today’s episode, I’m excited to introduce you to Dr. Michael Hallsworth, managing director at Behavioral Insights Team North America and co-author of the new book, Behavioral Insights.
Before that, he led their global work on health and tax for five years. Michael was previously a Senior Policy Advisor in the Cabinet Office of the UK government and has in-depth experience in both policy development and service delivery for national governments and international organizations. He has also been a leading figure in developing the field of applying behavioral science to government, having authored several influential frameworks such as EAST, Behavioral Government, and the MINDSPACE report (which has been cited more than 800 times to date). His work has been published in The Lancet, the Journal of Public Economics, Nature Human Behaviour, and more.
His new book,Behavioral Insights,which was co-authored with Elspeth Kirkman and published by the MIT Press, was released in September. When you get yours, if you opt for the physical version, you’ll see it’s this adorable little pocket-sized version of a book. A little smaller than most these days and it has really great full-bleed callout pages.
Michael has worked on so many amazing projects over the years, I’m honored he is sharing some of them with us today--and some great tips for approaching your own research and testing, based on their bookBehavioral Insights.
Show Notes:
[00:46] Today I’m excited to introduce you to Dr. Michael Hallsworth, managing director at Behavioral Insights Team North America.
[03:48] About ten years ago Michael started working in an organization that was all about how you apply evidence to improve the way government works.
[05:43] The Behavioral Insights Team includes 200 people across the world including Sydney, Paris, New York, and Toronto. They take behavioral science and try to improve the way policies and services are designed and the way government works.
[07:51] Michael shares a project he is really proud of that relates to antibiotics prescribing in the UK.
[09:35] They found a 1% decline in antibiotic prescribing at the end just by sending a letter from England’s Chief Medical Officer and giving information based on social norms.
[10:29] In Australia, they built on the antibiotic project. Bec Weeks shared about this in her interview on the show (episode 119). It has also been done in Italy and other countries as well.
[12:21] On Generalizability: They have seen studies with surprisingly similar results, but that isn’t always the case.
[13:36] The key is trying to have that productive tension between retaining the active ingredient that worked, but adapting it so it continues to work elsewhere.
[14:36] Testing is very important. We may see something that works across the board, but we still should be questioning it and looking at what is different in other scenarios.
[16:01] Most of the frameworks they share in the book have some aspects in common aroundidentifying the goals and behavior upfrontand then going deeper to understand what is happening.
[16:59] Then they try tocome up with interventionsthat attempt to address the factors you have seen. Then you should do the implementation and testing of those solutions or interventions.
[17:19] Rather than just stopping at the result phase, ask“How might we take this result and help it be used elsewhere?”
[18:37] The ten-stage framework in the book takes you through all these different steps from start to solution.
[20:01] Michael shares a story about a policy project where they implemented a higher-level strategy around the sugar drink tax in the UK.
[22:01] It is very important to understand the problem and ask the right questions before you start implementing things.
[23:25] They discuss the “macaroni and cheese study” by Barbara Rolls about portion size.
[25:48] Micheal shares about their rapid trials with cities for communicating urgent messages to their residents during the pandemic.
[27:47] They looked at the best way of communicating proper face masks.
[29:30] The Behavioral Insights Team has worked on a lot of different projects. He recalls a carpooling project he worked on which had no effect.
[29:54] They publish an annual report and they are very open about projects that didn’t get a result because it may point towards the fact that a bigger intervention is needed.
[31:04] If all we ever see is what goes really well or what was successful and don’t look at anything thatwasn’t, it just creates a completely different perspective on the field and sets things up differently.
[32:23] At the end of the book they talk about bigger policy issues and their criticisms of the approaches. They try to explain these issues and give ways forward.
[34:01] At the beginning of the book they talk about the 3 Pillars of Behavioral Insights.
[36:39] It was awesome to learn about the way the Behavioral Insights Team may approach problems so those looking to apply behavioral economics within their business have a framework that could work well for them as well.
[37:24] Don’t forget to check out theyear-end salegoing on now.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
460. Beyond January: Behavioral Insights for Lasting Resolutions
00:40:50
In this episode of The Brainy Business podcast, Melina Palmer dives into the psychology of resolutions and the challenges of keeping commitments. As the New Year begins, many people find themselves struggling to maintain their resolutions, and Melina provides insights into why this happens and how to overcome it. She explores concepts from behavioral economics, including time discounting, anticipated regret, and counterfactual thinking, to understand the subconscious influences on our decision-making.
Melina discusses the importance of making future goals feel real and attainable, emphasizing the need for realistic planning and the power of visualization. She also touches on the dual nature of willpower, acting as both a battery and a snowball, and how understanding this can help in setting and achieving goals. Through practical tips and strategies, listeners are encouraged to focus on small, manageable changes and to anticipate and plan for errors along the way.
In this episode:
Explore the concept of time discounting and how it impacts our ability to stick to resolutions.
Learn about anticipated regret and how it can hinder decision-making and goal achievement.
Understand the role of willpower as both a battery and a snowball in maintaining self-control.
Discover strategies for making resolutions more achievable by focusing on small, realistic changes.
Gain insights into how businesses can apply these concepts to better serve their customers and enhance engagement.
Show Notes:
00:00:00 - Introduction Melina introduces the topic of resolutions and the challenges of keeping commitments.
00:04:00 - The Reality of Resolutions Discussion on why many people struggle to maintain New Year's resolutions and the psychology behind it.
00:10:00 - Time Discounting Introduction to the concept of time discounting and its impact on decision-making and goal-setting.
00:20:00 - Anticipated Regret and Counterfactual Thinking Exploration of how anticipated regret and counterfactual thinking influence our choices and behaviors.
00:30:00 - Willpower: Battery and Snowball Insights into the dual nature of willpower and how it affects our ability to maintain self-control.
00:35:00 - Practical Strategies for Success Tips for making resolutions more realistic and achievable through small, manageable changes.
00:40:00 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
102. Confirmation Bias: How Your Subconscious Beliefs Shape Your Experiences (A Behavioral Economics Foundations Episode)
00:33:05
Today, we are going to be covering confirmation bias – I know this sounds like one of those concepts you probably think you “get” and that it might not be necessary to listen to...but believe it or not, that is actually your confirmation bias talking. This episode will help everyone understand just how much confirmation bias is impacting your life and business. I will give examples and tips throughout the episode.
In its most basic form, confirmation bias comes down to the brain’s desire to be correct and the subconscious filter deciding what gets through and stored...and what gets ignored. Because the subconscious is working from established, proven rules to make these choices, it is looking for stuff that fits those existing rules.
While the brain can look and find things that disagree with its perspective, that isn’t the natural tendency. The easiest thing to do - the most satisfying thing - is to look for items that confirm what you believe. That makes you feel safe. This is why two people can witness the same event and have completely different interpretations of what happened. You are seeking out different information and retaining different pieces to suit your brain’s needs. Some of these are ingrained in us genetically over thousands of years, but many of them are built over our lifetime.
Confirmation bias doesn’t have to be a bad thing and it can very much work to your advantage in life and business. The flip side of the confirmation bias coin is knowing that your brain naturally does four things and so if you are selective about your goals and what you want to change in your life, you can set up your brain’s natural tendencies to align with them.
Show Notes:
[00:57] This episode will help everyone understand just how much confirmation bias is impacting your life and business.
[03:10] The numberless scale (Shapa) we discussed in episode 101 that has the potential to change the way we think about health and wellness. It’s a super cool product and you should definitely check it out.
[04:28] In its most basic form, confirmation bias comes down to our brains’ desire to be correct and the subconscious filter deciding what gets through and stored...and what gets ignored.
[06:57] You could see the exact same event as someone else and have a completely different interpretation based on your existing beliefs and confirmation bias.
[08:19] Confirmation bias is especially ramped up and more prevalent in circumstances that are tied with emotions.
[08:39] Melina shares the four main ways you see confirmation bias.
[09:44] Kids’ behavior does not get more hyperactive when they have sugar.
[12:19] You will seek out information that supports your belief, and be more likely to believe, remember and share those items that support your belief.
[15:06] This reinforcing tendency is because ofillusory correlation, which is when we overestimate the relationship between two items even when no relationship exists or it is very weakly associated.
[16:53] We humans are pretty bad listeners by nature because our brains are processing so much information at any given time.
[18:21] For many people in business, if you aren’t confident in your offers or pricing, you may end up recommending something smaller than they would actually want or need because it feels better for you in the moment.
[19:49] It is important to not start the conversation with a predetermined recommendation before they have had a chance to tell you about their situation.
[23:29] If you can convince your brain that it IS worth it and that the price is reasonable, they will be more likely to hear it that way.
[24:39] Look at where you may be biased in a way you don’t want to be, and try to be more open minded.
[25:43] If you are selective about your goals and what you want to change in your life, you can set up your brain’s natural tendencies to align with them.
[26:15] If you want to set up a new belief (and only pick one at a time until it becomes a habit) then you can eventually reinforce it until you naturally confirm it all the time.
[27:18] Eventually, I changed that confirming bias and pushed past that belief and started to think of myself as a runner.
[28:20] People who have been injured will often see themselves as a victim, especially while dealing with the legal stuff.
[30:12] Being able to run and train up for my half marathon is very important to me, and picking new beliefs that I want to confirm are central to that success.
[31:27] Athletes, actors, really successful business people all use visualization techniques and affirmations to help them reach their goals.
[33:18] Next week, in episode 103 I am doing an episode dedicated to rethinking your opt-ins and lead magnets during coronavirus and beyond.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
170. When Machine Learning Meets Neuroscience, with Ingrid Nieuwenhuis of Alpha.One
00:35:45
A few weeks ago, I had the honor of being a speaker at Greenbook’s IIEX Behavior Conference, an amazing event that brings people together from around the world to talk about behavior and insights and so much more. My piece of this event was doing a live podcast interview with Dr. Ingrid Nieuwenhuis for the session called When Machine Learning Meets Neuroscience.
A couple of weeks ago, Sam Albert joined me to discuss AI and its role in behavioral science, and this conversation with Ingrid was so fantastic and really building on that. I was delighted when the team at Greenbook said I could share this conversation here with you on The Brainy Business. This is the exact audio from that conference, and if you want to see it in video form, it will be shared via my free global community, the BE Thoughtful Revolution when the episode airs.
Show Notes:
[00:06] In today’s episode I’m thrilled to introduce you to Dr. Ingrid Nieuwenhuis, head of science at Alpha.One.
[00:56] My piece at Greenbook’s IIEX Behavior Conference was a live podcast interview with Dr. Ingrid Nieuwenhuis for the session calledWhen Machine Learning Meets Neuroscience.
[03:21] Ingrid shares about herself, her background in neuroscience, and what she does as head of science at Alpha.One. She is trained as a neuroscientist.
[05:03] After a whole academic career, she joined a start-up company where she used similar techniques to measure consumers’ responses. Then she moved to New York and worked with the marketing department at Facebook. After ten years, she moved back to the Netherlands and joined Alpha.One.
[07:49] Ingrid has done amazing work over her career.
[09:12] Expoze.io is a technique based on deep learning.
[09:54] Deep neural networks are networks that are based on the brain layers and instead of having to tell the network what the rules are. If you have a lot of data the network can figure out the rules itself. To train this network you need a lot of labeled data.
[11:16] When you have this big data set where you have all this labeled data, you can actually get the network to create a heat map that is very similar to reality.
[14:14] Branding is very important. In the long term, to build value you have to build your brand.
[15:14] Building a brand and being able to communicate your brand in your packaging and ads is so essential for successful marketing and branding in general.
[17:43] We are so wired for social interaction that our eyes are unconsciously drawn to faces and are attracted to them.
[18:43] With small changes, you can really change how something is drawing attention.
[19:48] They are currently building a product that is measuring brand value. They are focusing on getting measurements on brands.
[21:34] Contrast is going to draw our attention.
[23:02] There is always a balance between the story you want to tell, the emotion you want to create, and how you want to draw people in.
[24:00] If your story has to build up and there is no brand in the first few seconds it is almost a wasted impression.
[26:20] Really good creative agencies are able to integrate a brand into a story in a way that isn’t intrusive and the brand can really be the hero in the story.
[28:25] You have to really work to create multi-disciplinary teams.
[29:41] Statistics is an area that is so important and not always present in companies. So much of what we are currently doing is big data.
[30:37] Be open to multi-disciplinary teams and realize that it helps. When you take the time, really good things automatically emerge and it becomes very fulfilling and rewarding for everyone.
[32:38] There is so much we can learn from each other if we are just open to it.
[32:55] Having a diverse team is really important in making sure you can think about as much as possible before you launch.
[33:25] Often you need the input from all the areas to actually get it right.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
399. Engaging Minds: How Clear Communication Can Drive Better Choices with Max Mawby
00:42:29
In this insightful episode of The Brainy Business podcast, host Melina Palmer welcomes Max Mawby, a seasoned expert in applied behavioral science at Thinks Insight & Strategy. Max shares his unique journey from working in the UK government to founding the financial behavior team at the Behavioral Insights Team, exploring the significant impact of behavioral science in both private and public sectors. With a focus on simplifying complex information for better consumer understanding, Max discusses his collaboration with plain numbers, a social enterprise dedicated to making numerical communications more accessible.
Delve into practical strategies like the EAST framework to enhance decision-making processes. Max emphasizes the necessity of clear, effective communication to empower informed choices without compromising freedom. This episode is a treasure trove of insights for anyone interested in how behavioral science can drive positive financial behaviors and facilitate informed, sustainable decisions. Tune in to learn how to implement these practices in your organization and make a lasting impact. Don't miss this episode’s engaging discussion on the power of behavioral insights in real-world applications.
In this episode:
Apply behavioral science principles to drive business success and enhance customer understanding.
Influence positive financial behaviors to unlock new opportunities for financial growth and stability.
Conduct online experiments to inform strategic business decisions and optimize customer experiences.
Utilize behavioral insights to design inclusive products that resonate with diverse consumer needs and preferences.
Simplify financial communication to empower consumers and foster better financial decision-making.
Show Notes:
00:00:00 - Introduction Max Mawby, managing director of applied behavioral science at Thinks Insight & Strategy, shares his insights on driving positive change using behavioral science in various sectors.
00:05:58 - Starting in Behavioral Science Max shares a personal story about his early attempts to introduce behavioral science in the UK civil service. He emphasizes the importance of perseverance and finding opportunities to apply behavioral science.
00:10:30 - Experimental Projects Max discusses a project on improving financial decision making for pensions in the UK. By using personalized guidance in a digital journey, they were able to significantly increase the number of people making good financial decisions.
00:14:46 - Behavior and Technology Max highlights the potential of leveraging technology to provide personalized advice, reducing the need for expensive human resources. He emphasizes the importance of using empirical evidence to make an investable case for implementing behavioral science solutions.
00:16:34 - Importance of Persuasive Evidence in Experiments Max discusses the importance of persuasive evidence in experiments, highlighting the need to understand the context and literature. He emphasizes the significance of high confidence in experiment results.
00:17:22 - Designing Experiments Based on Context Max emphasizes the importance of understanding contextual pieces when designing experiments. He discusses the need to translate research findings to different situations and adapt methods accordingly.
00:18:30 - Structuring Problem Solving in Projects Max explains the process of structuring problem-solving in projects, including setting a structure around the specific problem, forming research questions, and selecting appropriate methods to answer those questions.
00:22:13 - Exploring Behavioral Interventions Max discusses the exploration of behaviorally informed interventions and projects, highlighting the importance of frameworks like EAST (Easy, Attractive, Social, Timely) for driving change and evaluating impact.
00:28:57 - Discovering New Research Max shares his approach to discovering new research through social media platforms like Twitter, emphasizing the importance of engaging with a community to stay updated on the latest research in a specific field.
00:31:43 - The Power of Plain Numbers Approach Max discusses the effectiveness of the plain numbers approach in simplifying complex information for consumers, citing examples from water bills and credit card statements. The approach focuses on making financial outcomes understandable to customers.
00:32:30 - Impact of Plain Numbers Approach in Regulation Max highlights the impact of the plain numbers approach in UK regulation, specifically the consumer duty, which shifts regulatory duties to focus on the financial outcomes of customers rather than broad disclosures. The approach simplifies complex algorithms and information for better customer understanding.
00:33:05 - Making Information Easier to Understand Max emphasizes the importance of simplifying information for consumers, especially in financial and utility companies. The approach aims to make it easier for people to understand complex calculations, such as interest rates and water bills, in a minimal amount of time.
00:34:17 - Humanizing Communication in Finance Melina and Max discuss the importance of humanizing communication in the financial industry and the role of behavioral science in helping people make better choices. They emphasize the need to communicate in plain language and numbers to empower consumers.
00:35:51 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
450. The "G" in NUDGES: Mastering Feedback for Behavioral Success
00:43:42
In this episode of The Brainy Business podcast, Melina Palmer revisits a key topic from the foundational series on nudges, emphasizing the importance of feedback in correcting expected errors and guiding decision-making. Melina explores how thoughtful feedback mechanisms can keep individuals on track by providing timely and relevant cues, whether it's in daily life or within business processes.
Melina shares practical examples of feedback in action, such as the use of flashing lights on speed limit signs or the innovative pink-to-white ceiling paint by Glidden, highlighting how feedback can be effectively integrated into various contexts to improve outcomes. She also discusses the significance of feedback in sales processes and customer interactions, encouraging businesses to design thoughtful interventions that prevent errors and enhance customer satisfaction.
In this episode:
Understand the role of feedback in the nudge framework and its impact on decision-making.
Explore real-world examples of feedback mechanisms in everyday life and business.
Learn how to design effective feedback interventions to prevent errors and enhance customer experience.
Discover strategies for incorporating feedback into sales processes and customer interactions.
Gain insights into the importance of thoughtful communication and follow-up in maintaining customer relationships.
Show Notes:
00:00:00 - Introduction, Melina introduces the 450th episode and its focus on the "Give Feedback" concept in nudges.
00:05:30 - Importance of Feedback Melina discusses the significance of feedback in preventing errors and guiding decision-making.
00:10:45 - Practical Examples Examples of feedback in action, such as speed limit signs and Glidden's ceiling paint, are explored.
00:20:00 - Feedback in Sales Processes Strategies for incorporating feedback into sales processes to enhance customer experience.
00:30:00 - Thoughtful Communication The importance of thoughtful communication and follow-up in maintaining customer relationships.
00:40:00 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
183. The Power of Fast-Choice & Implicit Testing with CloudArmy’s Keith Ewart
00:47:43
Today rounds out this miniseries of companies providing testing opportunities for businesses with a conversation about fast-choice and implicit testing with CloudArmy’s Dr. Keith Ewart.
During our conversation today, Keith starts by telling us all about testing and project work he did during his 24 years at Proctor and Gamble – the positives and the pitfalls – and the work he now does as VP of Insights at CloudArmy.
He will share about some of the issues in testing at large organizations, including being stuck executing projects that you know won’t work well because the testing took too long to come back and being too far down the track to implement something new. (So frustrating!) That’s why the super quick and incredibly effective fast-choice and implicit testing that CloudArmy does is such a great solution, which he will also give insight on. Listen now to learn all about it (and best next steps for starting your own project).
Show Notes:
[00:42] I am so excited to introduce you to Dr. Keith Ewart, partner and VP of insights at CloudArmy.
[03:35] Keith shares about where he lives and his background.
[05:04] He actually started off in microbiology. After working in microbiology for about a year and a half he saw the wonderful world of insights and requested a move.
[06:38] A key part of his life at Proctor and Gamble was in packaging and developing better packaging solutions.
[07:47] The importance of understanding the packaging impact in the zero moment of truth all the way to the purchase in store.
[09:18] They were encouraged to think about multi-sensory signals.
[10:36] The third moment of truth is asking if that whole experience was so good that you want to tell your friends about it. It is important to have testimonials and brand advocates.
[12:46] The third moment of truth is not talked about in many companies.
[13:57] We want to drive the habits and at the same time we uncover what those barriers are. If we can uncover those barriers, we can put solutions in place.
[14:51] One of the biggest barriers to innovation is speed.
[16:05] Keith is a massive fan of fast cycle learning, rapid prototyping, bringing ideas to life very early on, and getting the voice of the consumer in the room as quickly as possible.
[18:15] What you really want is an individual's true response and ideally more than one or two focus groups.
[20:01] You can start to think about concepts, positioning, and using imagery to convey those brand positioning or benefits you want to get across.
[22:40] CloudArmy is a software company and programmers who have a background in the whole field.
[24:19] The beauty of a true implicit methodology is that consumers don’t even realize that they are being evaluated. It is based solely on reaction times.
[26:28] They are using implicit tests for packaging, messaging, advertising, and across the board. They are getting a true unconscious response to a set of stimulus.
[28:31] If you want to design your own test, it is not a problem. The key thing is what is the objective of the client and what is the best tool to understand and utilize.
[31:03] Context is key. Defining what you are really trying to get at and what success looks like. Make sure your problem statement is defined and can be measured. Take the data and translate it to actionable insights.
[33:15] Keep things simple. People’s brains are tired and they can’t cope with so much information.
[34:00] How many people can truly say they know what their brand stands for? What does the consumer really think is the most important component of their brand?
[36:27] Everyone should spend more time understanding the problem.
[38:20] The more constraints you put in place the longer time it will take. It is often beneficial to keep the sample broad.
[41:14] When you get everyone in the room together all trying to create and you get the toolkits around to help evaluate these things, you can make decisions quickly
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
357. Quality vs Value: Creating a Clear and Impactful Brand Identity
00:45:38
In this episode of The Brainy Business podcast, host Melina Palmer dives into the importance of choosing between quality and value when it comes to your brand strategy. She talks about how businesses can be successful with either approach, but it's crucial to pick one and stick with it. Melina shares real case studies of brands like Supreme and Costco to illustrate how they've excelled by aligning their pricing strategies with their brand messaging.
She emphasizes that understanding how customers perceive your brand is key to making informed decisions about your positioning in the market. If you're an entrepreneur looking to establish a clear brand identity and nail down consistent brand messaging and pricing strategies, this episode is a must-listen. Melina's insights and examples make a convincing case for the impact of your brand strategy on customer perception and decision-making. For those looking to elevate their branding approach and make strategic decisions, this podcast episode offers valuable takeaways and practical advice.
In this episode:
Understand the Importance of Choosing Brand Strategy: Uncover the critical role of brand strategy in business success.
Analyze Quality vs Value in Branding: Explore the dynamic balance between quality and value within brand development.
Align Pricing with Brand Values: Learn how to harmonize pricing strategies with the core values of your brand.
Explore the Impact of Brand Identity on Consumer Perception: Discover the profound influence of brand identity on consumer attitudes and behaviors.
Establish Consistent Brand Messaging: Master the art of crafting and maintaining a cohesive brand message across all platforms.
Show Notes:
00:00:00 - Introduction Melina introduces the critical decision every business needs to make: what type of company they are. She explains that this decision is foundational to pricing strategy and can be boiled down to two main paths: quality or value.
00:04:11 - Quality Business Melina defines quality businesses as those that set higher prices due to factors like higher quality materials, expertise, or innovative methods. These businesses focus on higher margins and making fewer sales. Melina emphasizes the importance of consistency in messaging and pricing for quality brands.
00:09:03 - Value Business Melina describes value businesses as offering bargains, great value for money, and selling by volume with smaller margins. These businesses run sales, discounts, and promotions as a key part of their strategy. She highlights the need for alignment between the brand's perception and how customers see them.
00:11:42 - Aligning Business Perception Melina shares an example of a client who faced a disconnect between their perceived quality and value brand image. She emphasizes the importance of aligning the company's identity with customer perception and the impact on brand positioning, products, services, and pricing.
00:14:52 - Holding the Line on Business Type Melina discusses the challenge of staying true to the chosen business type and making consistent decisions. She addresses the pressure to conform to other strategies, the potential damage of diluting a brand's perceived value, and the importance of getting everyone in the organization on board.
00:16:17 - Choosing Between Quality and Value Melina discusses the importance of choosing between quality and value for your brand, emphasizing the need to stick with one approach to achieve success. She urges listeners to consider their vision for their business and commit to a path.
00:19:26 - Case Study: Quality Brand - Supreme Melina shares a case study on the streetwear brand Supreme, highlighting their extreme scarcity model and the success they've achieved through high demand and resale market. She emphasizes the importance of challenging industry norms and being different in business.
00:23:59 - Case Study: Value Brand - Costco Melina presents Costco as a value brand that focuses on providing high-quality items at the best possible price. She discusses Costco's effective scarcity model and the impact of their commitment to saving members money on their overall brand strategy.
00:29:21 - Examples of Quality and Value Brands Melina introduces four case studies of quality and value brands, including Serendipity3, Hermes, Ryanair, and Old Navy. She mentions the depth and detail provided in the book and invites feedback for potential future behavioral economics analysis episodes.
00:31:41 - The Importance of Value Statement Melina discusses the vital aspect of brand identity - the value statement. It encapsulates core beliefs, creates consistency, and influences customer perceptions.
00:32:19 - Impact of Branding on Decision Making Melina explains how a precise brand message and promise are essential for making buying decisions easier for customers. The alignment of brand values and prices is crucial for creating a clear memory and influencing behavior.
00:33:51 - Priming and Brand Image Melina delves into the concept of priming, where word choice and images influence decision-making. She provides examples of how brands like Apple and Disney prime customers' behavior and perceptions through their logos.
00:35:41 - Aligning Brand Identity with Business Type Melina contrasts the mission statements of Costco and Louis Vuitton to illustrate the importance of aligning brand identity with the type of business. She encourages listeners to evaluate their own mission, vision, and values for alignment.
00:40:10 - Conclusion Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
363. Unveiling the Power of Cyber Anthropology with Lianne Potter
00:52:13
In this episode of The Brainy Business podcast, you will hear an insightful conversation between host Melina Palmer and Lianne Potter, a cybersecurity consultant with a background in anthropology. Lianne's unique journey from being a software developer to entering the field of cybersecurity provides a valuable perspective on understanding user behavior and cultural nuances in technology. She emphasizes the importance of recognizing the human element in cybersecurity and highlights the need for businesses to bridge the gap between the security team and other departments.
By incorporating disciplines such as anthropology, psychology, and behavioral economics, organizations can gain a deeper understanding of why humans behave the way they do, ultimately leading to a stronger security culture. Lianne also shares her thoughts on the metaverse and the significance of direct communication platforms in shaping our digital interactions. This episode sheds light on the role of anthropology in cybersecurity and offers practical insights for cybersecurity professionals and business leaders seeking to improve their understanding of human behavior and cultural nuances in security practices.
In this episode:
Understand the cultural nuances within your organization to develop tailored cybersecurity practices that align with user behavior.
Discover how human behavior influences the security practices within your organization and how to leverage this knowledge to enhance cybersecurity.
Foster a stronger security culture within your organization by recognizing and addressing the unique challenges and motivations of your employees.
Incorporate the principles of anthropology into your business processes to gain a deeper understanding of your organization's security practices and how they can be improved.
Gain insight into the relationship between human behavior and security practices to effectively implement strategies that mitigate cyber risks.
Show Notes:
00:00:00 - Introduction,
In this episode, Melina Palmer introduces Lianne Potter, a cyber anthropologist. Lianne shares her expertise in cyber anthropology, which involves applying the principles of anthropology to understand and improve cybersecurity cultures.
00:03:11 - Understanding Cybersecurity Culture Lianne explains the importance of understanding cybersecurity culture, from individual users to security teams within organizations. By addressing resistance and finding solutions, cultural security transformation becomes easier and more effective.
00:05:55 - Becoming a Cyber Anthropologist Lianne discusses how she became a cyber anthropologist and the early challenges of studying digital cultures. She highlights the impact of virtual spaces on relationships, the replication of societal structures, and the need to preserve digital artifacts.
00:09:59 - Applying Anthropology in Real-Life Lianne shares her experience working for a charity and applying her anthropology skills to solve issues of destitution. She encountered the digital divide, where vulnerable individuals faced social disadvantages due to a lack of access to online services.
00:13:45 - The Human-Centric Approach to Security Lianne emphasizes the importance of a human-centric approach to security. By understanding the human factors and motivations behind cybersecurity behaviors, organizations can create more effective security practices and mitigate risks.
00:16:54 - Introduction to Technology and Anthropology Lianne talks about her experience growing up with a family computer and her interest in computer programming. She shares how she used free online resources and attended tech meetups to teach herself programming. Lianne also explains how her background in anthropology influenced her approach to technology.
00:18:30 - Applying Anthropology to Technology in the NHS Lianne discusses her first job as a software developer in the UK National Health Service (NHS) and how she applied anthropology to ensure that technology was created with the end user in mind. She emphasizes the importance of considering cultural nuances when developing technology for a diverse range of customers.
00:20:12 - Transition to Cybersecurity Lianne shares her curiosity about a security team within her organization and her determination to join them. She explains how she became fascinated with cybersecurity and eventually transitioned into the field. Lianne highlights the cultural differences between cybersecurity teams and other tech teams.
00:23:57 - The Human Element in Cybersecurity Lianne compares digital security to physical security and emphasizes the importance of the human element in cybersecurity. She suggests using technology, such as password managers, to reduce human errors. Lianne also discusses the perception of hackers and the complexity of policing in the virtual space.
00:27:56 - Language and Victim-Shaming in Cybersecurity Lianne addresses the language used to describe victims of cyber incidents and highlights the victim-shaming culture. She emphasizes the need for empathy and understanding,
00:33:21 - The Vicious Cycle of Security Controls The lack of communication and collaboration between different teams in an organization leads to a cycle of ineffective security controls. This cycle results in workarounds that are more dangerous than the threats they aim to protect against, making the organization more vulnerable.
00:34:59 - Changing the Security Culture The security team must lead by example and be willing to change their own mindset and practices. Rather than blaming others for the lack of security culture, the security team needs to take responsibility and work towards improving their own approach to security.
00:35:52 - Leveraging User Research and User Experience Teams Collaborating with user research and user experience teams can help the security team ask the right questions and gain a deeper understanding of user behaviors and needs. This collaboration can lead to innovative security solutions that prioritize user experience and make security measures more seamless and user-friendly.
00:39:14 - Participant Observation and Building Trust Embracing the anthropological research technique of participant observation allows the security team to immerse themselves in different departments and understand their culture and challenges. By building trust and gaining insights into the unspoken issues and breakdowns in communication, the security team can address the root causes of poor security practices.
00:42:18 - The Metaverse and Identity The concept of the metaverse raises questions about the necessity of avatars and separate platforms for communication. With the rise of direct communication channels like WhatsApp and LinkedIn messenger, the need for avatars
00:49:17 - Conclusion, Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
11. Anchoring & Adjustment: The 1 Word That Increased Sales 38%
00:52:56
Today’s behavioral economics podcast is another foundational episode focusing on anchoring and adjustment. My last foundational episode was Episode 9 - Behavioral Economics Foundations: Loss Aversion and even though it has only been out about a week, it has been one of my most popular episodes to date. You listeners know one of my all time favorite studies features anchoring and adjustment, and it is also one of the main concepts in my signature talk Consumers Are Weird.
In business, anchoring and adjustment can be used to help influence the subconscious brain to lean toward a certain number. Skillfully using this concept to persuade someone to agree to a higher or lower number or quantity can close sales, increase conversions, and help in all kinds of negotiations. In today’s episode, I give business examples in several scenarios including a jewelry store, furniture store, real estate, car sales, multi-level marketing, service companies, non profits, and more.
Show Notes
[05:58] This is the second behavioral economics foundation's episode. The first one was about LOSS AVERSION, and it was super popular.
[07:14] Today's foundational topic is ANCHORING AND ADJUSTMENT.
[10:21] One of my all-time favorite studies is on anchoring and adjustment. This is one of the main concepts in my signature talk Consumers Are Weird.
[11:06] When your subconscious brain doesn't know the answer to something that takes a guess.
[11:24] As our brain processes at 11 million bits per second, it is using these judgement calls a LOT to guide you through your day and life.
[11:50] Our brains are all about shortcuts.When we are given an anchor number, it will influence our guesses.
[15:00] I share a story of having listeners at a presentation I was giving think about the last two digits of their social security number and then estimate the value of my necklace. The results demonstrate how anchoring and adjustment work.
[16:56] These anchors only work if they are entered into your mind right before the question is asked. This is called priming (a focus for a future foundations episode).
[17:14] My favorite study selling Snickers bars. The sales were increased by 38% when the number 18 was used instead of the word them. This was anchoring and adjustment at work.
[19:46] Limits also affect the amount purchased. A limit of 12 doubled the amount purchased.
[21:11] I was featured in a back to school shopping article on highya.com and warned about watching out for quantity discounts.
[21:28] Seeing an expensive item when you walk into a store can anchor your brain to think that the same items for less money, even though they are still expensive, are a good deal.
[23:09] How to apply anchoring and adjustment in your business messaging.
[23:29] JEWELRY STORE In a jewelry store. Using too low of an anchor can be a mistake. If you give a low starting number, it will become the anchor.
[25:26] Instead, start with the most expensive item, then what the average customer spends and then say there are many options under a certain number.
[26:37] REAL ESTATE With big-ticket items like homes, you're already working with a number that is unrealistic and often too low. This is what someone wants to spend.
[27:08] The buyer needs to disconnect from that number in their mind to be realistic with the current prices.
[27:15] When comparison shopping, start with the most expensive house on the list.
[28:17] If you are driving with the client, drive through the most expensive neighborhoods. What you show them (or what their subconscious sees and notices) and what you say matters.
[29:13] FURNITURE OR OTHER STORE You can use the same tactics if you work in a store. Be mindful what you walk the customers past.
[30:34] CAR SALES Selling something with a lot of options and features. You can 1) present a baseline model and all of the additional options to choose from or 2) present them with the top of the line vehicle and let them add or delete features. People will buy more expensive vehicles and packages when presented with the second option.
[32:14] MULTI-LEVEL MARKETING Present the most expensive item first and work your way down. Incorporate bundles and give people the option to remove what they don't want.
[33:37] SERVICE-BASED BUSINESSES I had two different people in service-based businesses recently implement my advice and have amazing results.
[34:32] Using anchoring and adjustment changed Dawn's business. She created a $20,000 bundle (at no cost to her) and now her $10,000 products are flying out the door.
[35:58] These simple brain tricks can help women entrepreneurs (and everyone else) make more money without really doing any additional work.
[37:45] INSIDE A COMPANY Big numbers being thrown out can impact you. Mentioning an anchor number even if it is not the number that is going to be used will influence the value of the final decided upon number.
[42:33] LOW ANCHOR These low anchors can be helpful, but you need to be absolutely sure the claim is true. And I mean, all the time. Because if it isn’t, you are at a huge risk of the “bait and switch” brain reaction.
[43:31] An example of promising how long it takes to learn a language. Be careful with low anchors because brains don't like being lied to.
[43:54] NON PROFIT I have served on several boards, and we would discuss what numbers to suggest during fundraising. We thought a number that was too high would turn people off. This was before my extensive research and work in behavioral economics. If I was having that conversation now, I would know exactly what to say: “GO HIGH!”
[46:37] With anchoring start with the highest number and work your way down for live auctions.
[50:47] I will be in Little Rock, Arkansas in September and Portland, Maine in October for speaking engagements. If you are in those areas, or close enough to get there, send an email to Melina@theBrainyBusiness.com to talk about scheduling an in person session without the travel expenses!
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
434. Designing for Behavior Change: Insights from Dr. Steve Wendel (Refreshed Episode)
00:45:03
In this episode of The Brainy Business podcast, Melina Palmer sits down with Dr. Steve Wendel to explore the intricacies of designing for behavior change. Steve, an esteemed applied behavioral scientist and co-founder of sistemaFutura, shares his extensive experience in using behavioral science to drive positive social impact. He has held significant roles at organizations like the Busara Center for Behavioral Economics and Morningstar, and authored several books, including the focal point of today's discussion, Designing for Behavior Change, now in its second edition.
Throughout the episode, Steve delves into the practical applications of behavioral science, sharing insightful anecdotes and frameworks from his book. He introduces the CREATE and DECIDE frameworks, emphasizing the importance of understanding user behavior and designing interventions that align with natural human tendencies. From discussing the humorous and enlightening "fish on the beach" analogy to highlighting real-world examples of successful behavioral interventions, this episode is packed with actionable insights for anyone looking to apply behavioral science in their work.
In this episode:
Understand the CREATE and DECIDE frameworks for designing effective behavioral interventions.
Learn the importance of timing and context in capturing user attention.
Explore real-world examples of behavioral science applications in financial services and beyond.
Discover the significance of testing and iterating on interventions to achieve meaningful results.
Gain insights into the intersection of behavioral science and data science.
Show Notes:
00:00:00 - Introduction Melina Palmer introduces Dr. Steve Wendel and sets the stage for a deep dive into designing for behavior change.
00:02:00 - Steve's Background Steve shares his journey in behavioral science, including his roles at sistemaFutura, Busara Center for Behavioral Economics, and Morningstar.
00:05:30 - Origin of the Book Steve discusses how Designing for Behavior Change originated as a manual for his team and evolved into a comprehensive guidebook.
00:09:00 - The Fish on the Beach Analogy The enlightening story of the fish on the beach and how it illustrates common mistakes in behavior change strategies.
00:13:00 - The CREATE Framework Introduction to the CREATE framework: Cue, Reaction, Evaluation, Ability, Timing, and Experience, and its application in designing interventions.
00:18:00 - The DECIDE Framework Overview of the DECIDE framework: Defining the problem, Crafting the intervention, Determining its impact, and more.
00:22:00 - Real-World Applications Steve shares examples from his work, including interventions to reduce ATM fees and improve financial behaviors.
00:30:00 - Importance of Testing The significance of testing multiple interventions and learning from both successes and failures.
00:35:00 - Behavioral Science and Data Science Discussion on the intersection of behavioral science and data science and the potential for future advancements.
00:40:00 - Impact of the Pandemic How the COVID-19 pandemic has affected habits and behaviors, and the implications for behavioral interventions.
00:45:00- Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
61. Color Theory: When It Comes To Color, This 1 Thing Matters More Than Anything Else
00:34:40
Last week we talked about how to surprise and delight customers, as well as the difference between satisfaction and delight and its impact on loyalty and profits. I also wrote an article that went live on Inc.com this week titled “Want to build brand loyalty? Surprise your customers—literally.”
ALSO: The presale for the Brainy Course on pricing is now live. Lock in your discount.
You’ve probably heard the basics of color theory before – that certain colors link to certain feelings or emotions in people, and so some colors are better than others for brands.
There are tons of color charts out there. I’ve even linked to a few. I’ll give you the general associations in this episode, but I’m also going to explain what really matters when it comes to using colors in your branding – the common mistakes and the most important things to keep in mind.
[05:03] Red: is full of excitement and said to be youthful and bold. It is also said to make people hungry or angry, and is associated with stopping.
[05:45] Orange: is said to be cheerful and have confidence. It is also fun, whimsical, childlike, friendly, spontaneous, glowing, hot, and persuasive.
[06:16] Yellow: has optimism, clarity and warmth. It is also joyful, illuminating, nourishing, sunny, sweet, stimulating, innovative, energetic, hot, surprising, or can bring awareness.
[06:50] Green: is said to be peaceful and associated with growth and health. It can also be calm, quiet, fresh, lush, soothing, renewal, balance, life, and fertility.
[07:43] Blue: is associated with trust, dependability and strength. Some other words (again, depending on the shade) can be calm, quiet, water, clean, peaceful, reassuring, serene, transcendent, open, sophisticated, confident, tasteful, cool, credible, authoritative, classic, traditional, nautical, or professional.
[08:42] Purple: is associated with creativity, imagination and wisdom. It can also be romantic, thoughtful, nostalgic, thrilling, dramatic, regal, intuitive, mysterious or visionary.
[09:19] Pink: ranges from vibrant, flirtatious, attention-getting and high energy to soft, subtle, romantic, compassionate, delicate, innocent, fragile or youthful.
[10:08] Grey and other neutrals: are bringing balance and calm. It is also classic, corporate, timeless, quiet, logical, reserved, basic, modest, efficient, accountable, staunch, professional, sleek, classy, mature, sophisticated, and methodical.
[10:50] Brown: is earthy, rugged, outdoor, rustic and woodsy, but as you change the shade to chocolate it could be delicious, rich, robust or appetizing.
[11:28] Black: is powerful, empowering, elegant, sophisticated, mysterious, bold, classic, strong, expensive, nighttime, stylish, or prestigious.
[12:12] White: is positive, pure, clean, innocent, simple, airy, bright, pristine, or bridal, but it can also be seen as sterile, cold and clinical.
[13:09] COMMON MISTAKES
[13:11] Colors have tons of associations and meanings, and often opposite associations depending on the shade or context.
[14:02] GENDER PREFERENCES
[14:13] Gender does have different impacts on preference for colors, which can be important for brands.
[16:06] Blue and green are universally predominant favorite colors. Orange and brown are least favorite for both genders. Purple is gender polarizing.
[16:27] BEYOND GENDER In some cultures, white is bridal, pure and innocent, but it is a funeral color for others. Black can be sophisticated or menacing. Red can be aggressive or mean luck.
[19:33] THINK ABOUT BRAIN ASSOCIATIONS The associations absolutely do matter, and studies have found that appropriateness of the color to the brand persona matter quite a bit.
[20:18] Think about how all the context triggers come together to support or contradict the color used in your brand, logo or other aspects of your marketing.
[20:41] When people are not already familiar with a brand, the common emotions tied with the color of the logo make a big difference in the way they interpret the brand.
[21:13] When starting your brand be aware of the associations with color and the emotions those colors bring up. Knowing the color associations can also help you go against the traditional theory if that is your strategy.
[23:00] When it comes to the way a designer or someone working with colors would explain the type of color, there are three important items: hue, value, and chroma.
[23:51] The hue is the color itself. Purple, red, and green are all hues.
[24:14] Value shows us how light or dark a color is – the level of brightness.
[24:18] Chroma is the saturation of color or its vividness.
[26:00] Google tested to find the perfect blue for its links.
[27:13] There are ways to use color in your business, beyond brand associations and color choice.
[28:28] The thing that is most important when it comes to calls to action is to have a lot of contrast. This is known as the isolation effect or the Von Restorff effect.
[29:39] You want to pick your colors based on congruency to your message and the personality, as well as the market you are targeting.
[30:03] Go with contrast when picking secondary or tertiary buttons and links, so they stand out.
[30:22] Know what your competitors use so you can stand out.
[31:26] Fight the urge of your herding brain and be different from the competition.
[32:05] Trendy colors generally aren’t good for brands, but they can be great for for special editions etc.
[32:56] For physical items, keep in mind what your competitors are using and find colors that help you stand out on the shelf.
[35:31] Color is incredibly important for brands to understand and consider when creating their materials. With a little bit of thought and consideration, you can absolutely use color to your business’ advantage.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
369. Inside the Minds of Tightwads and Spendthrifts w/ Scott Rick
00:46:21
In this episode of The Brainy Business podcast, Dr. Scott Rick, an associate professor of marketing at the University of Michigan's Ross School of Business, shares his insights into the psychology of spending behavior and its impact on personal relationships, financial decisions, and consumer behavior. Scott's research focuses on understanding the emotional causes and consequences of consumer financial decision-making, particularly concerning the behavior of tightwads and spendthrifts.
He delves into the different approaches to spending, emphasizing the distinctions between people who are just frugal, those who are tightwads, and those who love to spend. The episode provides valuable insights for personal financial advisors and individuals struggling with spending habits, offering strategies to help make better financial decisions and navigate their financial relationships more effectively. Scott's expertise and research bring a deep understanding of the psychological underpinnings of spending behavior, making this episode a must-listen for anyone seeking to enhance their financial well-being and understanding of consumer behavior.
In this episode:
Understand the intricate psychology behind spending behavior to make informed financial decisions.
Explore the profound impact of joint accounts on overall happiness for informed financial planning.
Navigate the complexities of decision-making in relationships to achieve financial harmony.
Achieve a balance between individuality and togetherness in joint accounts for sustainable financial management.
Uncover the significance of nudging and its role in improving decision-making for enhanced financial well-being.
Show Notes:
00:00:00 - Introduction Dr. Scott Rick introduces the concept of tightwads and spendthrifts and discusses his background in decision-making research and marketing at the University of Michigan.
00:04:22 - Understanding Tightwads and Spendthrifts Scott explains the psychological distress experienced by tightwads when spending money and the lack of distress experienced by spendthrifts, leading to different spending behaviors and frustrations.
00:09:13 - The Art of Gift Giving Scott delves into the importance of gift giving as a way to show appreciation and understanding of a partner and discusses the role of sacrifice and surprise in giving meaningful gifts.
00:13:28 - Navigating Gift Giving with a Tightwad Scott offers advice on planning experiences, joint accounts, and benevolent deception to navigate gift giving with a partner who is a tightwad, emphasizing the significance of experiences over material gifts.
00:15:30 - The Importance of Valentine's Day in Relationships Scott emphasizes the importance of joint participation in Valentine's Day, emphasizing the communal nature of relationships.
00:16:15 - The Benefits of Joint Accounts Scott discusses the results of an experiment with newlyweds, highlighting that couples with joint accounts were the happiest, maintaining their newlywed level of happiness.
00:18:08 - Financial Translucency and Individuality Scott advocates for financial translucency instead of transparency, promoting the maintenance of individuality within joint accounts to avoid scorekeeping and promote communal vibes.
00:23:33 - The Psychological Impact of Prenups Scott shares his concerns about prenups, citing the psychological impact of having a backup plan and the optional nature of proposing it, suggesting a mandatory approach to reduce the stigma.
00:26:58 - The Influence of Decision Nudges Melina and Scott discuss the psychological impact of decision nudges, referencing research on the happiness of those who followed advice from a coin flip, highlighting the influence of nudges in decision-making processes.
00:30:22 - Marrying Companies and Relationships Scott discusses how the concept of marrying for love or money can tie into our relationships with companies. He highlights the importance of psychological similarity and well-being in both personal and professional commitments.
00:33:14 - Love or Money Question The discussion delves into the idea of marrying for love or money, drawing parallels to career choices. Scott emphasizes the need for a balance between money, love, and psychological similarity, both in personal relationships and career decisions.
00:36:47 - Importance of Companionate Love The conversation explores the significance of companionate love in long-term relationships, whether personal or professional. Scott and Melina discuss the potential pitfalls of solely relying on passionate love and the need for enduring compatibility.
00:40:32 - Revealing Interviews Scott and Melina discuss the importance of evaluating candidates' behavior and compatibility during interviews, drawing parallels to personal and professional relationships.
00:42:45 - Gift-Giving and Understanding Scott shares a personal anecdote about the challenges of gift-giving, emphasizing the importance of understanding and considering the recipient's perspective. This ties into the broader theme of understanding others' perspectives in personal and professional relationships.
00:45:42 - Conclusion, Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
117. Hawthorne Effect: How You Unintentionally Impact Every Experiment, a Behavioral Economics Foundations Episode
00:20:54
Today, we are digging in on the Hawthorne Effect. This effect is named after a series of tests done at Western Electric’s Hawthorne location back in the 1920s. The aim of the study was to see how changes in worker conditions would impact productivity, and it was one of the first bits of research into determining worker opinions and mindset into the company’s planning process.
Before we get to that, I am very excited to share that it has been officially announced thatI will be speaking at Podcast Movement Virtual this year!I’m on a panel about creating better pitches for being a guest on podcasts so your efforts don’t get deleted.Learn more and get your ticket.
The Hawthorne Effect has two main impacts: 1) people change their behavior when they know they are being watched (especially if they know what the watcher is hoping to achieve), and 2) giving people an opportunity to be involved in the process can boost morale, productivity and more.
As with every concept, there are two sides to this coin. Often, you want to avoid letting people know they are being watched as it will impact results. However, as you’ll learn in the episode, there are some specific times and advantages to having people know they are being watched. Understanding this concept more will help you apply the logic within your business for the best possible results.
Show Notes:
[00:45] I am very excited to share that I will be speaking at Podcast Movement Virtual this year!
[03:51] The Hawthorne effect is named after a series of tests done at Western Electric’s Hawthorne location back in the 1920s and 1930s. The aim was to see how changes in worker conditions would impact productivity, and it was one of the first bits of research into determining worker opinions and mindset into the company’s planning process.
[04:50] In 1924, they were part of a study to see how the brightness of lighting would impact output...the results were very puzzling...
[05:24] A few years later, Hawthorne started a new experiment with Harvard to see how relays could be created more efficiently.
[06:05] The studies concluded that one big difference was being able to provide input and an ability to be treated as a human person with opinions and worth. These findings resulted in changes in working conditions far beyond the Hawthorne location and Western Electric over the decades that followed.
[06:27] The other important piece of information from these studies is the finding that when people know they are being watched, and especially when they know what the researchers are looking for, it biases the results.
[06:59] When modern researchers have looked back on the data from the original Hawthorne studies, they found some issues. For one thing, there were too many factors being changed at once, and that likely influenced the outcome of the research.
[08:19] In its simplest form, the Hawthorne Effect is saying that when people know they are being observed, or that there is an experiment taking place, it changes their behavior. The mere act of doing an experiment impacts the results.
[09:01] If you are trying to find out what people naturally do, you are running an experiment of some kind and want to see if a small change can impact behavior, you do not want those involved in the test to be biased and change their actions simply because they are being tested.
[09:41] The true intent of a behavioral or psychological study like this will often be hidden within the experiment itself.
[11:04] Other studies have shown that when people know what the researchers are looking for, they will on some level give a little extra effort to help prove them right. So, if it is important that you get a natural view of what is going on in the brain or behavior, you want to be as incognito as you can.
[13:36] An example from my own visits to branches during my corporate life, and why staying for a longer period of time is important.
[14:30] It’s better to integrate with the team as much as you can to become “one of them” so they let their guard down. Sporadic visits don’t have the same impact.
[14:59] If you are looking for something specific in those visits, don’t tell the people on the team what you are trying to do when it can be avoided.
[16:38] Stanford University found that for thesimple tasks, monitoring helped boost productivity because the workers made a game out of accomplishing the tasks so they wouldn’t get bored.
[17:03] For those with morecomplex tasks, productivity went down. Those workers felt the monitoring was too controlling and impacted their ability to do a good job. They felt rushed, which created stressful time pressure.
[17:22] With simple tasks that can get monotonous, monitoring that encourages gamification can be really helpful in boosting productivity and making it more fun for workers. With more complex stuff, people may feel threatened, be scared of punishment for mistakes, or make them focus too narrowly on things that might not be fully important.
[19:08] Remember, being treated well and being involved in the process was determined to be a big reason why the Hawthorne studies had such a big impact on productivity.
[20:20] That was another key piece of the Hawthorne studies, the boost in productivity happened in all the cases, like with the lights, when you turned them up, down, or kept them the same people had increased productivity during the study but they reverted when they got back to the normal work environment.
[21:06] Be careful when you have a hypothesis or are going in with a goal to make sure you aren’t too focused on finding the outcome you are looking for.
[22:06] Digging deeper is always a good idea. And now that you know how the Hawthorne effect can be helpful and how it can be a hindrance, you have the opportunity to learn about your teams and hopefully boost morale, productivity, efficiency, and so much more.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
445. From Insights to Action: Behavioral Science at Lyft with Irrational Labs
00:49:44
In this episode of The Brainy Business podcast, host Melina Palmer welcomes Evelyn Gosnell and Dr. Isabel Macdonald from Irrational Labs. Evelyn, as the managing director, applies behavioral insights to help product teams drive business outcomes and customer value. She has collaborated with leading companies like Lyft, TikTok, Google, and more. Isabel, a behavioral scientist with a PhD in public policy from Harvard University, focuses on leveraging economic and psychological forces to guide the development of technology tools for social good.
The episode delves into a recent project with Lyft, where Evelyn and Isabel share key insights on using behavioral science to enhance user engagement. They discuss the Women+ Connect feature, aimed at increasing matches between female drivers and riders, and how different behavioral messaging strategies were tested to optimize driver opt-in rates.
In this episode:
Discover the behavioral mapping process used by Irrational Labs to identify psychological factors impacting user decisions.
Learn about the three messaging strategies tested with Lyft drivers and the surprising results that emerged.
Understand the importance of being "uncomfortably specific" when defining key behaviors to change.
Explore how behavioral science can be applied across various industries to improve product engagement and business outcomes.
Gain insights into the challenges and opportunities of incorporating behavioral science into product development.
Show Notes:
00:00:00 - Introduction Melina Palmer introduces Evelyn Gosnell and Dr. Isabel Macdonald from Irrational Labs and sets the stage for a discussion on applying behavioral science in business.
00:05:32 - Evelyn's Background Evelyn shares her journey from product management to behavioral science and her role at Irrational Labs.
00:10:45 - Isabel's Background Isabel discusses her transition from academia to behavioral science and her passion for applying economic and psychological insights.
00:15:23 - The Lyft Project Discussion on the Women+ Connect feature and the behavioral science approach used to increase driver opt-ins.
00:25:14 - Behavioral Mapping and Messaging Strategies Evelyn and Isabel explain the behavioral mapping process and the three messaging strategies tested with Lyft drivers.
00:35:47 - Results and Insights Analysis of the test results and the surprising effectiveness of the concreteness message in changing driver behavior.
00:45:29 - Importance of Being Uncomfortably Specific The significance of defining specific behaviors and how it aids in designing effective interventions.
00:50:12 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
In today's conversation, I am joined by Dr. Wendy Smith, coauthor of Both/And Thinking: Embracing Creative Tensions to Solve Your Toughest Problems.
I don't think we realize it all that much, but our lives are full of paradoxes. Questions like: How can we each express our individuality and be a team player? How do we balance work and life? How can we take care of ourselves while supporting others? How can we manage the core business while innovating for the future?
Believe it or not, these are some of the everyday paradoxes that make up our lives. And because our brains tend to default to either/or choices, we choose one option over the other. We deal with uncertainty by asserting certainty. BUT this is not the best way, as you will learn about in today's conversation with Wendy Smith, a co-author of one of my new favorite books: Both/And Thinking.
Wendy is the Dana J. Johnson Professor of Management and earned her Ph.D. in organizational behavior at Harvard Business School, where she began her intensive research on strategic paradoxes—how leaders and senior teams effectively respond to contradictory, yet interdependent demands. She is a wealth of amazing information and I can't wait for you to learn from her today.
Show Notes:
[00:42] In today's conversation, I am joined by Dr. Wendy Smith, coauthor of Both/And Thinking: Embracing Creative Tensions to Solve Your Toughest Problems.
[01:46] Wendy is the Dana J. Johnson Professor of Management and faculty director of the Women’s Leadership Initiative at the Lerner College of Business and Economics, at the University of Delaware.
[03:57] Wendy shares about herself, her background, and the work she does. She is a professor of organizational behavior and business leadership management.
[06:27] We all experience these tug of wars in our lives.
[09:37] Our decisions really have multiple layers to them. They show up for us as a dilemma - these competing ideas in which you feel like you have to make a decision.
[11:37] Underlying our dilemmas are these paradoxical tensions.
[14:23] It is not that we are constantly trying to choose between always trying to be super disciplined or always trying to be spontaneous. If we go extreme on one side it becomes problematic in so many ways.
[15:36] The goal is to recognize that there is a relationship between discipline and spontaneity and that discipline enables us to be spontaneous as long as we don’t go so extreme. Spontaneity enables us to have more structure in our world.
[17:08] These tensions drive us into either/or thinking. That kind of thinking is limited at best and detrimental at worst.
[19:39] Often when change happens you feel like you have to change significantly and essentially you are throwing out the baby with the bath water by innovating everything.
[21:44] Polarization is when you go down a path and you are sure that if you are right about the way you are thinking, someone else must be wrong.
[24:35] Businesses should continue to be operationally successful as they move up their S curve. Continue to service your existing customers and be efficient with your existing products and at the same time be scanning, exploring, experimenting, and innovating to figure out what the new S curve looks like.
[27:09] The problem isn’t the problem. The way we are framing and thinking about the problem is the problem.
[28:10] You have to change to stay the same.
[30:56] Wendy shares a story about a group that built an inn to honor and value what was key to the culture of Newfoundland.
[34:04] To keep what you have, you have to change and we should embrace that.
[35:35] Her number one tip for writing a book is just to sit and do it.
[38:04] Wendy and her co-author worked together to structure the ideas of the book.
[40:38] There is something deeply paradoxical about behavioral economics (and Wendy loves that!)
[43:02] Just changing the question will invite you into a whole different way of thinking.
[44:02] Melina’s closing thoughts
[45:55] Embracing paradoxes can have a huge impact. There is so much opportunity there.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
41. Structuring Complex Choices: The "S" in NUDGES
00:31:30
This is the end of our series on nudges and choice architecture – we started with an introduction to the concept in episode 35 and have worked our way through all the aspects of the NUDGES acronym: incentives, understanding mapping, defaults, giving feedback, expecting error and now wrapping it up with structuring complex choices. Be sure and download your free worksheets on all of the aspects of nudges by becoming a subscriber.
In this behavioral economics podcast, I talk about structuring complex choices. I also revisit mapping and the five steps to understanding mapping, because it is the foundation of complex choices. This episode is also our final application of the air conditioning example. I also dig into several other examples to illustrate this concept and how it all ties into ways to make your business better.
Show Notes
[02:41] Mapping is the foundation for complex choices. Thaler and Sunstein describe a mapping as “the relation between choice and welfare” and use a simple example of choosing a flavor of ice cream.
[03:16] Some tasks like choosing an ice cream flavor are easy. Others are more difficult. The path from the choice to the outcome is called a mapping.
[04:25] The task of the choice architect (that’s you) is to set up a system that helps make the map as clear and easy to use as possible.
[04:37]The five steps I created and identified in understanding mapping were: 1) encourage thoughtful review and open-mindedness, 2) break it down, 3) make it relatable, 4) help them get there and 5) call to action.
[05:12] When you get into a more complex choice, there is a need for filtering and removing options.
[07:12] The compensatory strategy works for easier choices or choices with less options, but not with more complex choices. Instead, you need what is called elimination by aspects.
[07:32] By choosing a few aspects that matter, you use those to narrow the field.
[08:47] When you eliminate everything over a certain arbitrary line, you could miss something that is just outside the parameters. This is the risk we take with elimination by aspects and the constant battle of complex choices.
[09:25] The internet has given us tons of resources to help simplify our complex choices.
[09:57] A presort can help us when looking at a menu. This way we can eliminate the options that we don't care about.
[11:20] When people are presented with too many options they don't buy. We get overwhelmed with too many choices.
[14:16] We only see a lot of choices as a benefit when they are properly handled such as going to a toast restaurant with all of the spreads and toppings categorized.
[14:52] Cold Stone Creamery uses a form of anchoring and adjustment to help with their complex choice options.
[15:41] Showing how aspects can come together can help people make a more complex choice. It can help them eliminate things they know they don’t want when they are properly categorized. When looking at your own business, it is important to recognize if you have an inherently complex choice or if you are needlessly creating a complex choice.
[15:50] The final air conditioning example. Complex choices can be made unnecessarily complex. Our AC choice became more complex because we needed to upgrade the heater.
[18:34] It's important to present the options in a way that doesn't talk you or your customer out of business.
[19:06] Don't be afraid of silence with complex choices, because people need time to process.
[19:25] Using behavioral economics in business is much more than messaging, branding, sales, or any single aspect. To incorporate it properly, it's important to know all of the concepts and how they work together.
[21:40] A paint color example where using swatches makes the color choice much easier than names or numbers.
[23:50] A fun exercise where I give names of companies and how their methods could be applied to your business.
[24:03] This technique will help you shake things up and get out of your comfort zone.
[25:09] An example using The Knotted Wood.
[25:48] Try to look at the cursory decision and ask if you are trying to solve the problem in the right way.
[26:00] Companies that do a great job structuring complex choices.
[30:17] Remember to think about ways you can reduce complexity as well as how you might add complexity to your business.
[30:41] Seven episodes felt like a TON to put into a series, so thank you for those of you who have tuned in for the whole thing - and for letting me know how much you enjoyed it.
[31:08] All businesses are based on choice. It's your job to structure those choices in the best way possible, using a map so the customers know what is in their best interest, aligning the incentives to set up a default – and give feedback along the way for all those errors you expect people to make.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
In this episode of The Brainy Business podcast, Melina Palmer welcomes Oliver Burkeman, author of the New York Times bestseller 4000 Weeks: Time Management for Mortals and the newly released Meditations for Mortals. Oliver shares his insights on embracing the finite nature of life and how recognizing our limitations can lead to a more fulfilling existence.
Throughout the conversation, Oliver and Melina explore the themes of productivity, time management, and the pursuit of happiness. They discuss the importance of accepting our limitations, the power of making decisions, and the benefits of focusing on what truly matters. Oliver introduces his concept of "imperfectionism," encouraging listeners to take action without waiting for the perfect moment and to embrace the messiness of life.
In this episode:
Discover the concept of "imperfectionism" and how it can help you live a more fulfilling life.
Learn about the four-week approach in Meditations for Mortals to embrace your limitations and focus on what counts.
Understand the importance of making decisions and taking action in the face of life's finite nature.
Explore the idea of letting things be easier than we expect and finding joy in everyday challenges.
Gain insights into how to live a more authentic and meaningful life by embracing imperfection.
Visit this episode’s page for important links, top recommended books and episodes, and a full transcript.
Looking to explore applications of behavioral economics further?
415. Behavioral Finance and Wealth Confidence w/ Anthony Damtsis of TD Wealth
00:47:09
In episode 415 of The Brainy Business podcast, host Melina Palmer welcomes Anthony Damtsis, Deputy Head of Behavioral Finance at TD Wealth. Anthony shares his fascinating journey from leading the behavioral science practice at Discover Card in Chicago to his current role at TD Wealth, where he develops tools to help advisors integrate behavioral finance principles into their practice. The episode delves into his background, the importance of word choice in financial planning, and the intriguing concept of "wealth confidence."
Throughout the conversation, Anthony discusses how subjective feelings of wealth can differ significantly from objective measures, revealing that having more money doesn't always equate to feeling wealthier. He introduces the concept of wealth confidence, which includes intertemporal, social, and purpose and pleasure components, and explains how giving to charity can enhance one's sense of wealth. Anthony also shares insights from a research project that tested different value propositions for financial plans, leading to a significant increase in plan creation rates.
The episode is a treasure trove of insights for anyone interested in behavioral finance, the psychology of wealth, and the power of language in financial planning.
In this episode, you will learn:
The concept of wealth confidence and its impact on financial well-being.
How subjective feelings of wealth can differ from objective financial measures.
The importance of word choice in financial planning and how it affects client engagement.
The role of charitable giving in enhancing one's sense of wealth.
Practical strategies for financial advisors to communicate the value of financial plans.
Show Notes:
00:00:00 - Introduction Melina introduces Anthony Damtsis, Deputy Head of Behavioral Finance at TD Wealth, and sets the stage for a conversation about behavioral finance and wealth confidence.
00:02:30 - Anthony's Background and Journey Anthony shares his journey from Discover Card to TD Wealth and his passion for behavioral science and economics.
00:05:51 - Concept of Wealth Confidence Anthony introduces the concept of wealth confidence, explaining its components and how it differs from traditional measures of wealth.
00:09:00 - Subjective vs. Objective Wealth Anthony and Melina discuss how subjective feelings of wealth can differ from objective financial measures and the role of social comparisons.
00:13:38 - Impact of Charitable Giving Anthony explains how charitable giving can enhance one's sense of wealth and the psychological mechanisms behind it.
00:17:54 - Research on Financial Plans Anthony shares insights from a research project that tested different value propositions for financial plans, leading to a significant increase in plan creation rates.
00:21:31 - Importance of Word Choice Discussion on the importance of word choice in financial planning and how it affects client engagement.
00:24:54 - Practical Strategies for Advisors Anthony provides practical strategies for financial advisors to communicate the value of financial plans effectively.
00:28:36 - Wording Matters Anthony and Melina discuss the nuances around words used to describe feeling wealthy.
00:34:27 - The Importance of Financial Plans Anthony describes the outcomes of his research and applications for financial advisors.
00:37:12 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
In this episode of The Brainy Business podcast, Melina Palmer welcomes David Robson, author of the highly anticipated book, The Laws of Connection. With a background as an award-winning science writer, David shares insights into the science of building strong social networks and the essential role connections play in our lives and businesses. Drawing on extensive research, he reveals the psychological principles that can transform our interactions and help us forge deeper relationships.
Melina and David discuss the importance of connection, exploring how our expectations influence our interactions with others. They discuss the concept of the "liking gap," the surprising benefits of compliments, and the power of asking the right questions to foster meaningful dialogue. David emphasizes that by challenging our perceptions and embracing vulnerability, we can significantly enhance our social skills and build a supportive community.
In this episode:
Discover the key principles from The Laws of Connection that can help you build a stronger social network.
Learn about the "liking gap" and how it impacts our perceptions of others.
Understand the importance of expressing gratitude and compliments in strengthening relationships.
Explore the types of questions that foster deeper connections and conversations.
Gain insights into the science behind social interactions and how to apply it in your life.
Get important links, top recommended books and episodes, and a full transcript at thebrainybusiness.com/483.
Looking to explore applications of behavioral economics further?
322. Achieving More with Less: Subtraction Strategies for Success with Leidy Klotz (refreshed episode)
00:46:15
In this episode of The Brainy Business podcast, guest Leidy Klotz shares his research on the psychology of subtraction and its importance in decision-making and problem-solving. Klotz discusses how our natural instinct is to add rather than subtract when trying to improve a situation, and he provides insights into why this is the case. He explains that humans have a desire to display competence, and adding to a situation is a visible way to demonstrate that we can deal with the world effectively. However, Klotz argues that we can also display competence through subtracting, but it may require more effort to make it noticeable.
He shares studies conducted with LEGO structures, itineraries, recipes, and computer grids, which consistently showed that people overwhelmingly choose to add rather than subtract. The episode explores concepts such as loss aversion and the IKEA effect, which contribute to our preference for adding. The conversation also touches on the concepts of minimalism and essentialism, and how subtracting can be a powerful tool for displaying competence and achieving goals effectively. Listeners will gain valuable insights into the psychological biases that hinder effective decision-making and problem-solving, and learn practical strategies to prioritize and achieve what truly matters.
In this episode:
Discover the pivotal role subtraction plays in effective decision-making and problem-solving.
Learn how our instinctive preference for addition can obstruct optimal solutions.
Grasp how to confront biases and initiate shifts towards a subtractive mindset.
Understand the immense benefits of streamlining and eliminating needless aspects of daily life.
Acquire empowering strategies for integrating subtraction practices into your everyday living.
Show Notes:
00:00:00 - Introduction, Melina Palmer introduces the episode and its focus on the power of subtraction with Dr. Leidy Klotz. She emphasizes the importance of optimization, reduction, and efficiency in various areas of life.
00:03:20 - Dr. Leidy Klotz's Background, Dr. Klotz shares his background in engineering and how his interest in sustainability led him to behavioral science. He highlights the overlap between engineering, architecture, and behavioral science in terms of creative application and design.
00:08:56 - Uncommon Paths to Behavioral Science, The conversation explores the diverse backgrounds of behavioral scientists, including Dr. Klotz's experience as a professional soccer player. They discuss how different disciplines, like marketing and sports, can contribute to the field of behavioral science.
00:11:50 - Personal Backgrounds and Professional Work, Melina and Dr. Klotz discuss how personal backgrounds, such as being an opera singer or playing basketball, can shape a person's approach to problem-solving. They highlight the value of diverse experiences in the field of behavioral science.
00:13:35 - Introduction to Subtract, Dr. Klotz introduces his book, Subtract, and explains how it explores the concept of subtraction as a means of optimization. He discusses the relationship between design, sustainability, and the creative application of behavioral science principles.
00:15:26 - The Instinct to Add, Leidy discusses how our first instinct when trying to improve something is to add, rather than subtract. This instinct is seen across various contexts, including LEGO structures and itineraries. The guest also mentions a study where people were given a task to make quadrants symmetrical and found that people overwhelmingly added blocks instead of removing them.
00:17:27 - Overlooking Subtraction, The guest explains that our tendency to overlook subtraction is due to various factors such as loss aversion, the endowment effect, and the IKEA effect. The book explores these factors and delves into the biological, cultural, and economic forces that contribute to our preference for adding.
00:18:47 - Science-Informed Strategies, Leidy discusses the latter half of the book, which focuses on utilizing science-informed strategies to get better at subtraction. By understanding the science behind our inclination to add, we can develop strategies to improve our ability to subtract. Leidy emphasizes the importance of creating a list of "stop doings" instead of solely focusing on a long list of to-dos.
00:21:06 - Minimalism and Essentialism, Leidy notes the connection between the book's concept of subtraction and minimalism and essentialism. He and Melina highlight the value of decluttering and getting rid of excess in order to display competence. Leidy also mentions the satisfaction that comes from having a focused to-do list with achievable tasks.
00:30:08 - The Importance of Subtraction, The conversation begins with the idea that subtraction is often overlooked in our society, and how we need to shift our mindset to value subtraction as much as addition. The guest, Leidy Klotz, mentions historical figures like Da Vinci and Lao Tzu who understood the importance of subtraction for design perfection and gaining wisdom.
00:31:01 - Subtraction as a Valuable Skill, Klotz discusses how his book aims to help people understand the science and stories behind subtraction, and encourages readers to adapt the principles to their own lives. He emphasizes the importance of subtracting first and how it can lead to better decision-making and problem-solving.
00:32:48 - Overcoming Challenges with Subtraction, Klotz addresses the challenges people face when considering subtraction, such as loss aversion and the fear of regret or guilt. He suggests mindset shifts, such as reframing subtraction as a positive improvement and emphasizing the benefits of subtracting. He also highlights the role of valence in perception and the value of thinking of add and subtract as complementary approaches.
00:35:53 - Add and Subtract, Klotz discusses the misconception that add and subtract are opposites and explains how they can coexist as complementary ways to make change. He encourages people to consider both options and think about the potential gains and losses associated with each. This mindset shift can lead to more effective decision-making and problem-solving.
00:44:27 - Introduction to the Book Work Well, Play More, Melina introduces the book Work Well, Play More by Marcey Rader, which builds upon the concepts of productivity and distraction introduced in "Indistractable." The book focuses on three areas: productivity, clutter, and health, providing a twelve-month approach to improve each area and reclaim time and mental well-being.
00:45:02 - Conclusion, Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
339. Mastering User Behavior: Data Insights for Exceptional Experiences - Lucie Buisson
00:47:31
In this episode of The Brainy Business podcast, you'll gain valuable insights from Lucie Buisson, the Chief Product Officer at Contentsquare. Lucie's expertise lies in optimizing user experience on websites and mobile apps, and she shares her research and experience to provide practical tips for product managers. By understanding user behavior and identifying their real needs and problems through careful observation and analysis, businesses can create a more effective and engaging user experience.
Lucie also emphasizes the importance of data-driven decision making, testing assumptions, and balancing quick wins with long-term projects. Additionally, she discusses the challenges of scaling a company and offers valuable insights on maintaining clear communication and team cohesion during periods of growth and change. Whether you're a product manager looking to improve user experience or interested in the dynamics of scaling a company, this episode provides valuable knowledge and actionable strategies.
In this episode:
Uncover actionable insights from user data analysis to drive strategic decision-making and optimize user experience.
Strike a balance between quick wins and long-term projects to continually improve product performance and customer satisfaction.
Gain a deeper understanding of user behavior through data analysis, going beyond customer feedback alone to make informed product decisions.
Navigate the challenges and considerations of scaling a tech company, unlocking opportunities for growth and success.
Recognize the impact of time discounting on user behavior and explore strategies to effectively engage and retain customers.
Show Notes:
00:00:00 - Introduction, In this episode, host Melina Palmer introduces Lucie Buisson, the Chief Product Officer at Content Square. She discusses Lucie's role in the company's growth and the mission of Contentsquare to make the digital world more human.
00:02:07 - Scaling a Company, Lucie shares her insights on scaling a company, emphasizing the importance of adaptability while staying true to the company's vision and goals. She also highlights the challenges of transitioning from a small team to a larger organization.
00:06:27 - Understanding Behavior, Content Square's technology collects anonymous user interactions to understand customer behavior and preferences. Lucie emphasizes the importance of focusing on customer intent and providing personalized online experiences that mimic the positive aspects of in-store shopping.
00:08:31 - Challenges of Scaling, Lucie discusses the challenges of scaling a company, including the need to define roles and maintain a shared vision as the organization grows. She also highlights the importance of explicit communication in a larger team.
00:11:34 - Scientific Approach to Customer Understanding, Lucie emphasizes the scientific approach to understanding customers and the importance of data-driven decision-making. She discusses the role of data analysis in product management and the need for empirical evidence rather than opinions.
00:18:06 - The Power of Contentsquare, Contentsquare allows users to gain insights and identify website performance issues without knowing exactly what they're looking for. Unlike tagging plans, Contentsquare collects every interaction on a website, providing a more exploratory approach to understanding customer behavior.
00:19:46 - Prioritizing the Most Important Problems, Contentsquare's reports provide valuable information without users having to choose what to analyze in advance. By presenting click rates on every element of a webpage, users can identify areas of improvement without bias. Solving the most pressing problems yields the greatest impact.
00:24:47 - Finding Simple Fixes with Significant Results, Customer assumptions about what needs to be fixed often lead to massive and time-consuming projects. However, Contentsquare can reveal simple fixes like optimizing a landing page's hero image or call-to-action placement, resulting in substantial improvements and revenue opportunities.
00:27:31 - Balancing Voice of Customer Feedback, While Voice of Customer (VOC) tools provide valuable feedback, it often comes from extreme ends of the satisfaction spectrum. Contentsquare helps differentiate between isolated incidents and symptomatic behavior by tying VOC feedback to session replays. This allows users to prioritize actions based on quantifiable impact.
00:30:42 - The Iterative Cycle of Innovation, Contentsquare serves as the middle piece in a cycle of innovation. By understanding why customers struggle and making changes to address those issues, users can then use experimentation tools like A/B testing to analyze the impact of their modifications.
00:34:38 - Understanding Future Behavior, People often answer questions about their future behavior based on what they hope to be, not necessarily what they will actually do. Our predictions about our future selves are often different from our current behaviors, and this should be taken into account when designing products and experiences.
00:35:36 - Customer Feedback and Implementation, When gathering customer feedback, it's important to ask the right questions. Customers may say they want a new feature, but that doesn't necessarily mean they will use it. Implementing unnecessary features can overcomplicate the user experience and deter usage.
00:37:47 - Testing and Understanding Behavior, Testing and understanding user behavior is crucial for optimizing experiences. A case study from Netflix shows that what people say they want may not align with their actual behavior. It's important to go beyond customer requests and truly understand their needs and motivations.
00:40:36 - Balancing Customer Requests and Solutions, While it's important to listen to customer feedback, it's equally important to go beyond their requests and find innovative solutions to their problems. Product managers should balance quick wins with long-term projects and use their expertise to identify the best solutions.
00:43:37 - Optimizing Website Experience, To optimize website experiences, start by listening to customers and identifying small signals of behavior. Quantify the impact of these behaviors and find a balance between quick wins and long-term improvements. Understanding the customer while also leveraging product expertise is key to success.
00:46:09 - Conclusion, Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
306. Conquer Imposter Syndrome and Boost Confidence in Business (Refreshed Episode)
00:30:00
Self-doubt can be a significant barrier to success in business, holding individuals back from pursuing opportunities or capitalizing on their strengths. Overcoming self-doubt requires anyone in business (especially entrepreneurs) to develop a positive mindset, embrace their expertise, and trust their instincts in decision-making. By actively combating self-doubt and harnessing confidence, entrepreneurs can overcome the obstacles holding them back, paving the way for professional and personal growth.
Host Melina Palmer emphasizes the importance of overcoming self-doubt in the episode, offering practical advice for those grappling with imposter syndrome or a lack of confidence. She endorses the use of daily affirmations, practice in speaking confidently, and actively engaging in activities that boost self-esteem. By overcoming self-doubt, entrepreneurs can unleash their full potential, contribute positively to their businesses' success, and advance toward the realization of their goals and ambitions.
In this episode, you will be able to:
Realize the significance of a positive attitude in boosting entrepreneurial achievements.
Master techniques to conquer impostor syndrome through role-playing and self-assurance methods.
Grasp how flexible thinking can break barriers and facilitate entry into new markets or pricing changes.
Learn about anchoring and adjustment to establish pragmatic and rational goals.
Appreciate the influential role of mentorship in sculpting personal and career advancements.
Show Notes:
00:00:00 - Introduction, Melina welcomes listeners to episode 306 of The Brainy Business podcast, which is all about adjusting one's mindset and overcoming impostor syndrome, particularly when it comes to pricing. She encourages listeners to be open-minded and ready to adjust their anchors, priming, and mindset to achieve their goals.
00:03:36 - Mindset Challenges, Melina notes that mindset issues can make or break one's business and impact confidence around pricing and offerings. She emphasizes the need for listeners to be aware of vicious cycles that can drag them down and to focus on virtuous cycles such as the confidence-competence loop. Melina recommends practicing saying new prices aloud, building one's confidence and training one's brain to project confidence.
00:08:25 - The Role of Confidence, Melina shares her experience working at Alaska Airlines and how her training there helped her project confidence when quoting prices. She explains how projecting confidence is vital in sales and how, regardless of the price, one needs to say it confidently without hesitation. Melina also shares how her first agency job helped shape her mindset about billable hours and not discounting on the back end.
00:11:45 - The Importance of Confidence, Melina highlights how projecting confidence is essential when quoting prices and how the subconscious brain of buyers pick up on the slightest sense of hesitation. She advises listeners to train their brains by practicing saying new prices aloud, projecting confidence, and speaking as if they were telling someone the weather.
00:16:22 - Mindset is Key for Success, Melina emphasizes the importance of having a positive mindset and believing in your worth. She explains that having the right mindset is crucial in pricing conversations, networking events, live videos, and other situations where you need to show your worth.
00:17:35 - Setting Realistic Anchors, Melina talks about the behavioral economics of mindset, specifically anchoring and adjustment and relativity. She explains that we tend to set an unrealistic anchor by comparing ourselves to top-performers in our industry, which can result in feeling stuck and not taking action. She advises resetting your anchor to where you are now and taking small steps each day.
00:19:31 - Setting Achievable Goals, Melina encourages listeners to focus on where they are now instead of setting unrealistic goals for the future. She emphasizes the importance of taking small steps each day and adjusting your anchor to the present offering you have out there. She also highlights the importance of long-term planning sessions and having goals for where you want to get to eventually.
00:21:07 - Overcoming Self-Doubt, Melina acknowledges that self-doubt and imposter syndrome are common among many people. She advises listeners to take small steps each day to gain more competence and confidence. She also shares some Dr. Seuss quotes that she finds inspiring and applicable to mindset.
00:28:19 - The Importance of Mentorship, Melina talks about her upcoming episode with Scott Miller (307), where they will be discussing his new book. The Ultimate Guide to Great Mentorship.
00:29:04 - Conclusion, Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
In this episode of The Brainy Business podcast, Melina Palmer is joined by Ann Chow, the former CEO of AT&T Business, for an insightful discussion on what it means to "lead bigger" and how to incorporate inclusive leadership in today's evolving work environment. Ann, who made history as AT&T's first woman of color to hold the CEO position, shares her experiences and the lessons she learned throughout her 30-year career in telecommunications and technology.
Ann delves into the importance of understanding the different aspects of one's identity and how they contribute to effective leadership. She emphasizes the need to go beyond the traditional understanding of work as merely a place to go, advocating instead for a more integrated approach that acknowledges work as an essential part of life. Ann also discusses the impact of the pandemic on how we view work and the crucial role of human connection in leadership.
In this episode:
Discover the concept of "leading bigger" and its significance in achieving greater performance and impact.
Learn about the psychological and societal factors that lead us to "lead small" and how to overcome them.
Understand the difference between inclusion and belonging and how they apply to both workforce and work.
Explore the importance of aligning purpose, values, and performance in creating a culture of belonging.
Gain insights into the evolving expectations of leadership in the post-pandemic world.
Visit this episode’s page for important links, top recommended books and episodes, and a full transcript.
Looking to explore applications of behavioral economics further?
423. Unveiling the Biases Behind Misinformation w/ Alex Edmans
00:45:58
In this episode of The Brainy Business podcast, Melina Palmer welcomes Alex Edmans, author of May Contain Lies, to discuss the fascinating intersection of finance, behavioral economics, and misinformation. Alex, a professor of finance at London Business School with a Ph.D. from MIT, delves into the impact of emotions on the stock market, using intriguing examples from his research, including the emotional effects of international sports results on stock market behavior.
Throughout the conversation, Alex and Melina explore the broader implications of emotional influences on decision-making in both personal finance and business contexts. They discuss the dangers of confirmation bias and black-and-white thinking, and Alex offers practical steps to overcome these biases. He also introduces his concept of the "ladder of misinference," illustrating how statements, facts, data, and evidence can be misinterpreted or misrepresented, leading to misleading conclusions.
In this episode:
Understanding the emotional impact of sports results on the stock market.
The broader implications of emotional influences on decision-making.
The dangers of confirmation bias and black-and-white thinking.
Practical steps to overcome biases and make informed decisions.
The "ladder of misinference" and avoiding missteps in interpreting data.
Show Notes:
00:00:00 - Introduction Melina introduces Alex Edmans, author of May Contain Lies, and outlines the episode's focus on emotions, decision-making, and misinformation.
00:01:45 - Alex's Background Alex shares his background in finance and behavioral economics, emphasizing his passion for conveying academic insights to a general audience.
00:06:10 - Dissertation Research Alex discusses his dissertation on the impact of emotions, particularly sports results, on the stock market, highlighting the significant emotional effects on trading behavior.
00:12:55 - Broader Implications Melina and Alex explore the broader implications of emotional influences on decision-making in personal finance and business, emphasizing the importance of acknowledging and managing emotions.
00:19:15 - Confirmation Bias Alex explains confirmation bias and its impact on how people respond to evidence and data, using examples from sustainable investing and other fields.
00:26:30 - Black-and-White Thinking Alex introduces black-and-white thinking as a twin bias to confirmation bias, illustrating how extreme viewpoints can overshadow nuanced understanding.
00:34:45 - Ladder of Misinference Alex outlines the "ladder of misinference," explaining how statements, facts, data, and evidence can be misinterpreted, leading to misleading conclusions.
00:43:10 - Practical Tips for Individuals Alex offers practical tips for individuals to overcome biases, including imagining the opposite result to challenge confirmation bias.
00:46:00 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
32. The Overwhelmed Brain and Its Impact on Decision Making
00:35:59
What happens when our brains get overwhelmed? What is the impact on decision making? Today’s behavioral economics podcast is going to focus on these foundational topics. Businesses always ask people to take some sort of action (buy this, click here, download that). It’s a good idea to be careful not to overwhelm your potential customer. An overwhelmed brain will move on and file your business in the “maybe I’ll look at this later” pile.
A real life business example of taking care not to overwhelm a potential customer (or in this case listener) is these show notes. I take extra time and expense to have everything laid out in an easy to understand way with all of the related links and studies available for you. That way you can relax and enjoy the show, and if you ever want to learn more or check out the links, you know they will be here waiting for you. I also give more real life and business examples of overwhelm and how it affects the brain and your business.
[03:46] I have extensive show notes for every episode, because I want to make it as easy as possible for you to relax, listen to the podcast and still have the resources available (so you don’t have to fill up your brain with the one thing you are trying to remember).
[04:57] This is the same reason my strategy sessions are done on Zoom and recorded. I want my clients to be able to be in the moment.
[05:50] This is another testament to NUDGES and expecting error. I do not expect that someone will remember every little tidbit they want to from every conversation we have.
[06:07] There are two errors here – 1) the inability to remember what was discussed because there is a lot and 2) the inability to really focus in the moment because the conscious brain can only devote so much.
[06:32] To combat both of those things, I have show notes and videos to help relieve some of that pressure.
[07:14] CHOCOLATE CAKE STUDY
[07:45] Participants in a study were asked to memorize a two-digit or a seven-digit number. Participants with the two-digit number were more likely to choose a healthy snack when offered. Those with the seven-digit number? They were more likely to choose chocolate cake.
[08:34] Our subconscious brains can process 11 million bits of information per second. Our conscious brain can only do about 40 bits.
[08:43] When your conscious brain is focusing on something, it tunes everything else out.
[09:01] With your conscious brain occupied, the subconscious is tasked with taking the wheel. It is now running the show.
[09:17] Our brains are fueled by rewards like dopamine.
[10:23] Just think of all the times your conscious brain is able to get overwhelmed.
[10:36] One subconscious rule of thumb is to ignore things that are too complicated.
[12:53] Dan Ariely provides a great example of this in his book, The Upside of Irrationality, where giving people an opportunity for a large bonus (5 months salary) severely lessened their ability to perform on somewhat easy tasks.
[13:18] The amazing computers in our heads are very easy to bog down.
[13:50] POVERTY AND COGNITIVE ABILITY
[13:58] Studies have found that those in poverty have reduced cognitive abilities.
[14:54] This definitely gets at the core of why it can be hard to break a pattern when you are in it.
[15:03] SNOWBALL VERSUS BATTERY
[15:15] If your brain is overwhelmed…you will probably reach the point of fatigue much faster than you would if you were in a relaxed state.
[16:20] POST COMPLETION ERROR
[17:47] I travel quite a bit, but when I am packing for important trips, I tend to do a lot of running through lists in my head, “iPad – check, good shoes – check, toothbrush – check” you know what I mean. This creates an overwhelmed brain.
[18:50] Why do we sometimes forget to bring our purse or wallet to work? Or drive away without putting the lid back on the gas tank? This is called post-completion error, and it happens when we complete some or most of a task, and our brain marks the whole thing as “done.”
[20:23] Your brain holds more weight and importance on things you write down, so having a physical list you can check off can help really mark it as complete in your brain.
[20:39] I am going to have a sticky note method to help nudge me about the laundry (so I don’t leave damp clothes in the wash all day and have a funky smelling family!)
[21:20] Three questions: How could you help yourself in your work and personal life by relieving some of the overwhelm from your conscious brain? How can you be a resource to your customers to help them relieve some of their overwhelm? How often are you overwhelming your current or potential customers? Here is a 5-step way to avoid overwhelm...
[23:53] 1. Write things down – this is like my checklist for packing.
[24:52] 2. Do one thing at a time – multitasking is a myth and a path to productive procrastination.
[27:38] 3. Make it a pattern (habit) – if there are things you need to do consistently and don’t want to have plagued by overwhelm, turn them into habits.
[29:28] 4. Which brings me to the next point…have a goal – hopefully you have already set your 1 to 3 goals for the year after listening to the resolutions episode.
[32:41] 5. The final tip is to incorporate constant check ins and breathing points – both for yourself and with customers. Download your free worksheet to help you work through these five steps for yourself and with customers.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
First off – welcome to episode 60! How exciting – I love hitting milestones and I am excited to celebrate this one with a fun episode on surprising and delighting customers and how that differs from satisfaction.
Last week we talked about the pain of paying and how it can impact the way people spend with you. It is quite possibly one of my favorite episodes to date – I really enjoyed digging through the research on that one, and I think the most telling study for you was the AOL example.
Special Announcement: The first online course from The Brainy Business is going live on September 9, and there is a one week presale starting this coming Monday, August 12!
A lot of businesses are competing for your ideal customer. Plus, those same customers are becoming more selective and are more aware than ever of the many options they have. These days, it’s not enough to just get the job done or to do an ok job. If you really want to build true customer loyalty and customer engagement, you’ll need to surprise and delight your customers. This is how your business can build a loyal following and increase profits. In this episode I talk about how to do exactly that.
[06:26] Many people assume there is a linear relationship between dissatisfaction, satisfaction and delight, but it doesn’t really work that way. Satisfaction is not the opposite of dissatisfaction, and vice a versa.
[07:08] The scale of customer experience actually goes from outrage, to dissatisfaction to satisfaction to delight.
[07:29] When you have a surprising positive experience, it results in delight. An unexpected, surprising negative experience? That is when outrage comes into play.
[08:25] In a business, you have to be aware of these all the time, including your overall experience for everyone as well as for each individual customer. Ideally, you are living in “satisfied” territory most of the time, with a few “delights” popping up here and there.
[08:57] Delight is much more likely to drive loyalty than mere satisfaction, and there is a lot of research that shows loyalty is positively linked to profits and stock market price.
[09:45] Once a customer becomes satisfied, they have achieved pretty much whatever level of loyalty they are going to have, but the loyalty score shoots up when delight is introduced.
[12:27] Delightful experiences are much more likely to hit the emotional center of the brain and be much more likely to be remembered. This also holds true for the mirror of delight which is outrage.
[13:23] One heavily cited study estimates that a 5% increase in loyalty from customers can increase profit anywhere from 25% to 85%!
[14:13] Delighted and loyal customers can have a lifetime value equal to 11 “regular” customers.
[14:31] Loyalty can also result in lower costs in advertising, branding and acquisition, as well as higher revenues per transaction or per customer, lower defection rates, plus an increase in brand equity.
[15:22] There's no standard scale for measuring delight.
[17:08] Satisfaction is more of a cognitive process. Delight and outrage are more emotional.
[20:25] The reason the Ed Sheeran Edchup promotion works is because fans know that it's authentic. Consumers can’t be expected to let you know what will delight them, because at its core they can’t be expecting them.
[22:33] It's important to know your numbers, so you'll know in advance if the cost of delighting is worth it.
[23:06] The next pitfall is the peril of ever-changing expectations. If the delights become standard, customers will expect them. The key to delight is surprise.
[24:23] The last pitfall to be aware of is assuming that everyone has the same expectations.
[26:41] Often, simply being courteous, showing empathy, and making an effort to understand the needs of the customer are enough to create a delightful experience.
[29:41] Employee empowerment is still crucial in any business if you want to surprise and delight.
[33:08] You can also provide unanticipated value. You can also provide novelty and entertainment – think of Disneyland or Disney World.
[35:52] Reposition the business to focus on delivering solutions instead of products and services.
[39:18] Seven organizational changes from the Berman paper to consider so you can better deliver delight:
be aware of the need for organizational change to establish delight objectives;
link customer delight to bottom-line benefits;
look at world-class customer satisfaction criteria;
listen to customers to ascertain what's important;
empower employees so that they can go "the extra mile";
make measurement of customer delight and loyalty a priority; and
link raises and bonuses to customer satisfaction scores.
[41:30] Delight is not something you do one-off and hope for the best. It requires time and strategy.
[43:13] If you are sending gifts to your clients and customers, don't do it in November or December, because people are expecting gifts at that time.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
In today's conversation, I am joined by Richard Shotton. His first book, The Choice Factory, is a best-selling book on how to apply findings from behavioral science to advertising. His new book, The Illusion of Choice: 16 ½ Psychological Biases that Influence Why We Buy, is a phenomenal add to what he has already contributed to the field of behavioral science.
This book (and conversation!) are both full of great examples from traditional academic research and from practical application. And, one of my favorite things that Richard does is take research and recreate it. Sometimes it replicates (and does even better than expected) and sometimes it doesn’t – whatever the results, they are shared and there are learnings for everyone involved. And, of course, that includes you.
Does precision matter? Should you speak in abstract or concrete terms? Tune in and get ready for these amazing lessons and many more…
Show Notes:
[00:43] In today's conversation, I am joined by Richard Shotton. Richard is the author of The Choice Factory, a best-selling book on how to apply behavioral science to advertising.
[02:42] Richard shares himself, his background, and the work he does in behavioral science.
[04:06] There are thousands of biases. He covers 25 in The Choice Factory. His new book covers 16 and ½ more. (The half chapter is around the power of precision.)
[06:51] Precision is powerful. Generally if someone knows the subject they speak in precision, if not they speak in generalities.
[09:30] The precise price tends to be seen as lower than rounded ones.
[11:52] If you want to change behavior, remove friction. If you want to boost appreciation of your product, you might want to add some friction.
[13:10] The importance of framing the question is key if you are going to use behavioral science practically.
[15:42] You have this huge swing in memorability based on whether terms are concrete or abstract. If we can picture a term it becomes very sticky if not it becomes forgettable.
[18:02] Increasingly brands talk in abstract terms. It is ineffective to use that language. If you want to communicate one of those abstract objectives you have to translate it into more concrete terminology.
[20:43] Academics sometimes make behavioral science more complex than it has to be. Reading modern academic papers is a chore.
[22:41] The evidence shows that if you communicate simply you come across as more prestigious and more intelligent.
[25:50] People were twice as likely to remember the rhyming than the non rhyming phrases. Alliterating phrases have a boost of believability and memorability.
[28:06] We have to make sure that what we do is what our clients want us to do rather than worrying about the kudos that we as individuals get.
[30:19] The cafe had a problem that people didn’t want to go on a Monday. So if you go on Monday you get to roll the brass dice. If you roll a six everything you have eaten is free. (Love this!)
[33:27] If you know that this is the thing on Monday, everyone is going to order a little bit more because they might get it all for free.
[36:01] People are not only interested in maximizing the financial benefit of the situation. They also wanted to know that they are being treated well and not being taken advantage of.
[38:35] Questions are so important. Questions can give people a pause for thought and influence them more subtly.
[41:12] Professionals are just as influenced as consumers with the vast majority of biases. The only difference is they are even more loathe to admit it.
[42:43] Podcasts and books are a wonderful way of quickly understanding lots of different experiments. The ones you think are most interesting are worth finding the original paper and exploring further.
[44:53] Melina’s closing thoughts
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
484. The Psychology of Pricing: Framing with Numbers
00:28:58
In this episode of The Brainy Business podcast, Melina Palmer revisits the fascinating concept of framing with numbers. She explores how the presentation of numerical information can significantly influence decision-making and consumer behavior. Melina emphasizes that the way numbers are framed can be more impactful than the numbers themselves, particularly through the lens of loss aversion and familiarity.
Listeners will learn how to unlock the power of numbers by testing different frames in their business communications. Melina breaks down common pricing strategies and addresses frequently asked questions about pricing formats, including the effectiveness of ending prices in 99 versus rounding them up. She also discusses the psychological implications of using random or interesting numbers in pricing and how these choices can disrupt habitual buying patterns or enhance perceived value.
In this episode:
Discover the importance of framing in influencing consumer perceptions and decisions.
Learn how to effectively use numbers in pricing strategies to enhance appeal.
Understand the psychological impacts of rounding versus odd-ending pricing.
Explore the benefits and drawbacks of using random numbers in pricing.
Gain insights into how to present statistics effectively to persuade potential customers.
Get important links, top recommended books and episodes, and a full transcript at thebrainybusiness.com/484.
Looking to explore applications of behavioral economics further?
370. Rethinking Business as Usual: Adapting Strategy for Changing Times (Refreshed Episode)
00:20:35
In this episode of The Brainy Business podcast, Melina Palmer explores the concept of normalcy bias and its implications for decision-making. She provides compelling examples of how normalcy bias impacts individuals and industries, emphasizing the necessity of overcoming this mindset to foster adaptability and innovation. Melina underscores the significance of seizing virtual opportunities and leveraging behavioral economics for business success, urging her audience to consider the enduring value of maintaining virtual offerings.
Additionally, she addresses the perils of normalcy bias, emphasizing the need to acknowledge and confront the tendency to underestimate potential future challenges or changes. Melina teases an upcoming episode with Cass Sunstein, where the concept of normalcy bias will be thoroughly examined, offering listeners an exciting chance to gain further insights. This segment offers valuable insights on embracing change, capitalizing on virtual prospects, and challenging conventional norms, making it essential listening for business professionals seeking to enhance their decision-making acumen.
In this episode:
Recognize the impact of normalcy bias on decision-making processes.
Utilize virtual opportunities to leverage behavioral economics for business growth.
Enhance business success by maintaining virtual offerings in the current market landscape.
Implement diversification strategies to mitigate risks and optimize business resilience.
Address normalcy bias to improve decision-making and strategic planning.
Show Notes:
00:00:00 - Introduction Melina introduces the concept of normalcy bias and its impact on decision-making during times of crisis or change.
00:03:02 - Impact of Normalcy Bias on Decision Making Melina discusses how normalcy bias affects decision-making, leading to complacency and resistance to change, using examples from different industries.
00:09:20 - Clinging to Normalcy in Times of Change Melina explores the tendency to cling to normalcy even when change is inevitable, and how this can hinder adaptability and innovation in businesses.
00:12:48 - Impact of Normalcy Bias on Financial Industry Melina provides an example of how normalcy bias affected decision-making in the financial industry, leading to missed opportunities and potential risks for businesses.
00:15:08 - Adapting to Change and Overcoming Normalcy Bias Melina shares insights on the need to adapt to change, prepare for unforeseen circumstances, and overcome normalcy bias for long-term business sustainability.
00:16:05 - Exploring New Opportunities Melina discusses the need to look for virtual opportunities, the importance of behavioral economics for business success, and the potential for adding new product lines accessible from home.
00:16:34 - Market Fit and Future Planning Melina emphasizes the importance of aligning with market needs, maintaining future sustainability, and considering brand continuity in business decisions.
00:17:25 - Diversification and Normalcy Bias Melina highlights the significance of diversification in business and the impact of normalcy bias on decision-making and problem-solving in the face of change.
00:18:09 - Underestimating Change Melina discusses how normalcy bias leads to underestimating the impact and duration of problems, and the need to regain sensitivity to notice both positive and negative aspects of life.
00:19:25 - Conclusion Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
Six months ago, I did my behavioral economics analysis of Costco, which has zoomed into the 11th most downloaded episode of this podcast. My analysis of Apple Card is right above it, so we can say they share the 10th spot. Today, I’m doing another behavioral analysis of a business: Starbucks.
It’s not a coincidence that we are getting into Starbucks right around the holiday season. They have definitely done some things very right when it comes to the holidays…and I will touch on the controversy they’ve seen as well. In the episode we will talk about featured drinks, red cups, nostalgia, pricing strategy, scarcity…and a whole lot more.
If you’ve been listening for a while, you know I love Starbucks. Not just for their chai tea lattes and marshmallow dream bars, or because I live in Seattle…but because of the amazing things they have done as a company to shape the world we live in today.
Starbucks is a dynamic and large company with a plethora of examples I could have chosen to talk about today.
There isn’t time for everything. Instead, I have picked some of my favorite pieces for the episode – ones I think you will find valuable and interesting and be able to apply to your own business (whatever that may be). Whether you work for a global business like Starbucks, are a solopreneur or an academic or somewhere in between…you can learn from the smart things the company has done and how they have understood human behavior.
In the episode, we will dig into their star rewards program, as well as featured drinks and products – from PSL to the Unicorn Frappuccino, as well as the coveted red cups (which just launched a couple days ago by the time this comes out), the personality and overall brand choices in their logo, locations and on social media and, of course, pricing.
Show Notes:
[04:31] Without the original brand and pricing, Starbucks would be just another coffee shop.
[05:04] It really is an amazing feat when you think about the commoditized industry Starbucks was facing before it launched its first store.
[06:04] One of the big aspects Starbucks had to overcome was the pricing anchor. The first number you hear (or a standard price) is the anchor, and the brain adjusts from that to determine what is reasonable.
[07:02] The way we act is driven by our subconscious, and when you ask a logical question to the conscious, it doesn’t answer in a way that reflects true behavior.
[07:19] To justify a higher price, Starbucks needed to invent a new category.
[07:59] This wasn’t just about coffee – it was creating community…a “third place” – an experience that was something more.
[08:21] Functional fixedness: when all you have is a hammer, everything looks like a nail.
[08:48] When you look at what everyone else is doing, herding will keep you stuck.
[09:01] Howard Schultz and Starbucks took a step back, got out of their own way, and created a new category which changed the conversation about coffee.
[09:12] Asking good questions can help you get there.
[10:01] Ask questions that aren’t about what everyone else is doing. Don't get stuck in the herding or the anchors. Instead, it is about looking to what could be, and asking “How might we?” or “Why?”
[10:07] For your business, look at all the things you do because everyone else does. Is that serving you well? What would make your customers excited? Delighted?
[10:29] Price is never about price. It's about all the things that come to for the price. Starbucks is a fantastic example of that.
[10:56] Studies about wine show that people get more enjoyment from drinking wine that is more expensive.
[11:37] When you can break free from the herd and make it about something more, your business can reap benefits beyond what you even imagine.
[12:13] Starbucks changed the game with all of their drink options. The first drink they made famous was the Frappuccino.
[13:38] The brain gets what it expects. If you expect Frappuccinos to be delicious and you get something similar by a different name, it won't be as good.
[14:46] Starbucks started the original pumpkin spice latte or PSL. The limited nature triggers scarcity and loss aversion.
[15:53] For scarcity to be a value in your business, you actually have to take something away.
[18:43] Starbucks is constantly testing, and they're not afraid to have something popular only available for a limited time.
[19:20] The new thing that started this week is the red cups. Keeping traditions alive is something that Starbucks does amazingly well.
[20:03] For many, the red cup has become part of a tradition on holidays. When you become a lifestyle brand, you bear the responsibility of becoming a part of peoples’ lives.
[21:34] Starbucks had a set of filters that every brand aspect had to pass through. These included being handcrafted, artistic, sophisticated, human, and enduring.
[23:46] Taking the time to stop and evaluate what is really going on is important.
[25:11] When you think about the value of the brand, it's about the overall experience with the brand at its core.
[26:33] Your business should learn to watch the trends. What is going on that is cool and interesting and that everyone is talking about, and how would it look if you were to incorporate that into your offering?
[28:00] Star rewards are one of the smartest things Starbucks could have done for their business. In many ways, this built upon the wildly popular “treat receipt” where you can get a discount when you buy a second item after 2pm or 3pm.
[29:06] The star rewards model is built to create habits for users and increase visits.
[34:03] Star rewards are a smart balance of loss aversion, scarcity, relativity, habits, and more. All executed through a series of experiments to see what is bringing the most value to the company and its customers.
[34:42] Don't get sucked into your brain’s natural tendency to herd. Just because everyone else is doing something one way, doesn’t mean it is RIGHT to do so.
[34:59] Take a step back and think bigger. Look to the future and the possibilities.
[35:11] Scarcity is a powerful tool when used correctly. Especially when paired with loss aversion to help people choose your product.
[36:05] Making your brand a habit is about more than caffeine and sugar. Starbucks puts effort into getting more customers to choose them more often for more things.
[37:59] Next week, we are digging into the concept of time pressure.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
419. The Mentorship Mindset: Insights from Dr. Ruth Gotian
00:48:57
In episode 419 of The Brainy Business podcast, Dr. Ruth Gotian, co-author of the Financial Times Guide to Mentoring, shares her extensive expertise on mentorship and leadership development with host Melina Palmer. Ruth, who serves as the Chief Learning Officer and Associate Professor of Education in Anesthesiology at Weill Cornell Medicine, is a globally recognized expert in mentorship, hailed by institutions like Nature, Wall Street Journal, and Columbia University. She discusses the vital role of mentorship in achieving success and the importance of having a team of mentors to guide and support high achievers.
Throughout the conversation, Ruth delves into the four elements of success from her book, The Success Factor, and emphasizes the significance of intrinsic motivation, overcoming challenges, continuous learning, and the power of mentorship. She also provides practical insights into the differences between mentors, coaches, role models, and sponsors, and how each plays a unique role in personal and professional development. This episode is packed with valuable takeaways for anyone looking to enhance their success through effective mentorship and leadership strategies.
In this episode:
Understand the four key elements of success for high achievers.
Differentiate between mentors, coaches, role models, and sponsors.
Learn how to effectively seek and engage with mentors.
Implement successful mentorship programs within organizations.
Recognize the benefits of both being a mentor and having a mentor.
Show Notes:
00:00:00 - Introduction Melina Palmer introduces Dr. Ruth Gotian and sets the stage for an insightful conversation on mentorship and leadership development.
00:01:30 - Ruth's Background Ruth shares her background and journey, including her roles at Weill Cornell Medicine and her recognition as a top mentor and emerging management thinker.
00:04:20 - The Success Factor Ruth discusses the four elements of success found in high achievers: intrinsic motivation, overcoming challenges, continuous learning, and mentorship.
00:10:15 - Mentorship and Its Importance The conversation explores the critical role of mentorship in achieving success and how high achievers leverage mentors to guide and support them.
00:14:45 - Differentiating Mentorship Roles Ruth explains the differences between mentors, coaches, role models, and sponsors, and the unique contributions each makes to personal and professional growth.
00:19:30 - Effective Mentorship Strategies Practical advice on how to seek out mentors, engage with them effectively, and the importance of being specific and time-bound in mentorship requests.
00:24:00 - Organizational Mentorship Programs Tips for implementing successful mentorship programs within organizations, including the benefits of group mentoring and creating opportunities for organic mentor-mentee matches.
00:30:10 - Reverse Mentoring and Continuous Learning The concept of reverse mentoring and how both mentors and mentees can learn from each other, fostering a culture of continuous learning and development.
00:35:20 - The Value of Networking and Building Relationships Ruth shares insights on the importance of networking, asking good questions, and building meaningful relationships through thoughtful engagement.
00:40:05 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
256. Incorporating Habits Into Your Business Strategy (Refreshed Episode)
00:46:44
Habits are foundational to everything we do. When we think about habits we tend to think about the “bad” ones, things we want to change but there is so much more to it. Our brains run on habits, and without them, we couldn’t function. Many episodes of this podcast that have been dedicated to habits and related topics throughout the years, and this is the first one, which originally aired in the fall of 2019.
Since then, I’ve interviewed habits expert Wendy Wood and discussed habits with Richard Chataway (links to their episodes in these notes). I included habits heavily in my books and the reason I chose to refresh this episode right now is because of this upcoming Friday’s guest.
Cassie Holmes, the author ofHappier Houris my guest on Friday, and I thought that some reflection on habits is the best way to set you up to get the most out of that conversation. When you look at your day, what makes you happy? What is serving you and what isn’t? What has become a habit and what you should be more thoughtful about? This episode will help you in that process to understand further what a habit is, how they work, and what to keep in mind as you look to reinforce some and change others.
The main thing to remember is that we need habits. They aren’t inherently bad. Most of them are good. Understanding them and leveraging them is where the opportunity lies.
Show Notes:
[00:37] Today’s episode is all about habits. Habits are foundational to everything we do.
[02:45] You have a lot more good habits than bad ones. You just aren’t consciously aware of the vast majority of them.
[04:27] Sorting by color is a form of habitual purchasing. Even with infrequent purchases, the place you go and look is based on habits.
[06:25] The human brain essentially works on many many associations.
[09:03] Up to 95% of all buying decisions are habitual.
[11:09] Unfortunately the idea that it takes us 21-30 days to create a habit is wrong.
[13:33] 21 days is not the magic number for making or breaking a habit.
[15:16] A 2009 study from the European Journal of Social Psychology found the average number of days it took to form a habit was 66 days. (But don’t let that fool you…the range of data points matters!)
[16:58] We approach habit changing all wrong.
[18:20] Habits are made up of four phases: cue, craving, response, and reward.
[19:31] Habits form because your brain is trying to find predictable ways to get rewards. A cue is a signal to the brain that there is a reward around and that instantly leads to craving/desire/filter for that item.
[21:21] If you want to change a habit or start a new one, the cue and reward phases are driving the behavior.
[22:44] Cues have been found to fall into one of five categories: location, time, emotional state, other people, and an immediately preceding action.
[24:27] You aren’t craving thething, but rather the reward it provides.
[27:05] When we know the cue and the reward our brain wants we can work to change the habit.
[29:31] One other crazy brain trick is word choice.
[31:27] Saying “I don’t” is empowering. This was your choice. It affirms the choice you made and makes you feel determined and full of willpower. (This is very different from “I can’t.”)
[33:12] You should be confident that you made this choice so you can firmly say “No, I don’t do that.”
[35:04] We can check our notifications and emails every couple of hours or a couple of times a day (instead of every instant as we get continuous pings, dings and buzzes) and it will be fine. Once the cue is gone, we won’t look at our phones as much and we can be more productive.
[38:07] Interrupting shoppers' habitual sequence can be a problem depending on your business positioning.
[39:05] As the brand leader you don’t want to do too much to shake things up or rock the boat.
[41:59] The habits of your current and potential customers are important to consider when building out your strategies.
[42:28] Melina’s closing thoughts
[43:29] We are all surrounded by habits all day, they are a huge portion of the 35,000 decisions we all make each day. Understanding the rules of your habits is the first step in identifying which are working well for you and which you might want to let go of because they aren’t serving you well.
[44:58] You want to focus on the right stuff at the right time and not changes habits that you don’t need to.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
286. Beyond 'If Only': Maximizing the Benefits of Counterfactual Thinking (Refreshed Episode)
00:45:57
Counterfactual thinking (when we mentally "undo" events that have already happened and imagine different outcomes) can contribute to personal and professional growth when applied constructively. This type of thinking is closely related to prefactual thinking, which involves imagining future scenarios, alternatives, and opportunities. Both types of thinking can aid in regulating behavior, problem-solving, and goal setting, ultimately contributing to improved performance and success in life and business.
This episode highlights the interplay between counterfactual and prefactual thinking and how both can foster unique perspectives and considerations that set individuals and businesses apart from the competition. There is immense value in adopting a curious, open-minded approach when engaging in these thought processes, which can ultimately lead to personal development, innovation, and cultivating a successful and resilient mindset. Here's some of what you'll get from this episode:
Explore the intriguing effects of counterfactual thinking on emotions and behaviors.
Identify the fine line between helpful and detrimental counterfactual thoughts.
Learn effective tactics for managing counterfactual thinking in tough situations.
Uncover the power of combining counterfactual and prefactual thinking for a winning strategy.
Master transforming negativity into productive and positive actions.
Show Notes:
00:00:00 - Introduction, Melina Palmer introduces the podcast episode (a refresh from one that originally aired in October 2019) focusing on counterfactual thinking and how it is central to being human. She explains the different types of counterfactuals and the impact they can have on our emotions and way of thinking.
00:05:06 - Types of Counterfactuals, Melina explains the difference between upward and downward counterfactuals, omissions and commissions, rumination and undoing, and usual or extreme events. She encourages listeners to reflect on their own types of counterfactuals and how they have impacted them in the past.
00:09:25 - Target of Counterfactuals, Melina discusses how the target of counterfactuals can impact the thought process. She gives an example of how people tend to focus on themselves even when they are not to blame, which can lead to distress and anxiety.
00:13:32 - Example of Unhealthy Counterfactual Thinking, Melina provides an extreme example of unhealthy counterfactual thinking where a woman dwells over a nonevent at work and becomes distressed and angry, constantly dwelling over what the woman in HR did or didn't do and how she could have acted differently.
00:14:50 - Recap, Melina summarizes the key takeaways from the episode so far and encourages listeners to use counterfactual thinking as a tool for setting and achieving goals, while also being mindful of when it becomes unhealthy and causes distress. She reminds listeners to download the free counterfactual thinking worksheet (and get more resources) in the show notes.
00:14:57 - The Impact of Counterfactual Thinking, Counterfactual thinking can lead to spiraling thoughts and negatively impact interactions. Dwelling on negatives can be harmful and counterproductive. It's essential to focus on the present and not dwell on the past.
00:19:07 - A Study on Counterfactual Thinking, A study on counterfactual thinking found that over half of the respondents were undoing a traumatic event in their minds. The distress level and frequency of undoing did not differ based on whether the item being undone was usual or exceptional; omission or commission.
00:25:31 - Focus on Self, Those who were undoing the event in their minds were more focused on their own actions or the actions of their loved ones than the other driver's behavior, even though the other driver was (typically) at fault. This shows how quickly the brain can compartmentalize and can lead to feelings of regret, guilt, and responsibility.
00:28:54 - Recency of Undoing, The recency of the undoing process (note: this is not the recency of the event) impacted distress levels. Those who were still undoing the event were more distressed than those who had never undone or had undone in the past, but stopped. This suggests that undoing may be a distress-driven cognitive process.
00:31:15 - Changing Focus, The action that people actively undo overwhelmingly changes over time. People may focus on themselves and their actions in a particular circumstance, but the specific action that they focus on can vary. The lesson is to focus on the present and not dwell on the past.
00:31:47 - The Effects of Undoing, Continuously undoing can increase distress levels, and guilt is the only negative emotion uniquely related to undoing. Guilt related to controllable events declines over time, but excessive undoing can perpetuate distress.
00:33:21 - Self Esteem and Counterfactual Thinking, People with low self-esteem may focus on their inadequacies in their counterfactuals, leading to more distress. Highly distressed individuals undo more frequently, perpetuating their distress.
00:35:09 - The Benefits of Counterfactual Thinking, Counterfactual thinking is crucial in regulating behavior and reaching goals. Failing to reach a goal often leads to counterfactual thinking, but reframing it can improve behavior. Turning counterfactual thoughts into actionable next steps can help reach goals. Plus, the one, most important phrase to help you leverage counterfactual thinking and use it to your advantage.
00:38:37 - Moving Forward from Counterfactual Thinking, Moving on from counterfactual thinking is crucial to prevent it from taking over your life and work. Asking questions like, "What can I do differently next time?" can help reframe counterfactual thoughts into positive next steps. An example from the Olympics, and how to use that most powerful language.
00:41:25 - Positive Thinking, Reframing, and a Refreshed Close, Acting as if you were a silver-lining person can trick your brain into thinking that way. Mental reframes and curious questions can change everything and set you and your business apart. Consider how different things might be if you flipped your counterfactual thinking around.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
Testing and experimenting is one of the best ways to find what works best for your business. This week we are talking about the benefit of experiments and some of my tips for how to do this on your own in your business, as not every experiment requires hiring a consultant to come in and run a big study.
If you have been listening to the podcast for a while you probably remember me mentioning a few times that I have a research paper coming “soon” based on a project I did on behalf of the Filene Research Institute and a credit union in Portland, Oregon. I am so excited that I have approved the (potentially) final draft and that should be published any day now!
There will be a dedicated episode talking about the research in two weeks, but I wanted to give some tips about experimenting first, because it truly is so important for every organization to test things. Next week is an episode on the physical representation of concepts, which is the only main concept in the study I have not yet covered on the podcast. Then on September 13th, I’ll share all the details and findings of my research study.
[05:08] Experimenting is important for any organization. You have probably done experiments and not even realized it.
[05:30] Good experiments need to be narrow and focused, because if you test too many things at once you won't know what contributed to the result.
[07:09] I share a story about how I needed to continue to narrow down a research paper topic.
[08:16] The study found that advertisements for low cognition products were twice as likely to be standardized as high cognition products. Ads using pictures were more than twice as likely to be standardized as those using text.
[09:08] There were so many variables and items cross referenced just for a study that looked at one month of magazine ads.
[09:59] The study I ended up with, which felt incredibly small to me at the time, was actually a huge undertaking - it was a true experiment.
[10:16] When there is a lot weighing on the outcome of the experiment, it's a good idea to bring in experts. There are also tests you can do on your own fairly easily, which can still have a great impact on your business.
[10:41] You can be more agile and adapt quickly with small tests.
[10:56] The three things to keep in mind when setting up experiments are to be thoughtful, keep it small, and test as often as you can.
[11:14] Keeping it small allows you to do the test on your own and understand what contributed to the results you are seeing.
[11:55] To determine what is best, separate everything into multiple mini-tests.
[12:53] Make one small change and track what the results are, so you'll be learning every step of the way.
[14:44] One of the studies I share the most often is the one with the end cap displays for Snickers bars. This used anchoring and adjustment and found when they said “buy 18 for your freezer” there was a 38% increase in sales.
[15:36] Behavioral economics shows us that hunches about what customers will do are often wrong, because they are based on logic, not the rules of the subconscious brain. This is why everything needs to be tracked.
[16:01] Some other things you could test would be how your ads (or emails or direct mailers or website pages) do when you change a number frame. You can also do tests on blog post headers, or copy on social media posts, and images you use on ads.
[17:04] The second important way to focus your attention is to be thoughtful. Being thoughtful means looking outside of what you always do or what you “know” to be true.
[17:45] Behavioral economics teaches that humans do not always act “rationally” or with much forethought. Take the time to plan before you jump into a test, or start testing absolutely everything.
[18:45] Instead of testing everything, just test the right things. Know the problem you are trying to solve and narrow your focus.
[19:15] Anything can be worth testing, but everything can be a waste of time if you don’t have a clear focus and goal.
[19:36] If your company is about driving value, then all your tests should be about creating more value for your customers.
[20:16] Focus on items that are driving revenue and value to your company.
[21:01] The results of one test will not necessarily hold true in every situation or for every business. This is called generalizability or being generalizable - while it matters in most academic studies, it isn’t as important if you are testing for your own business (because if the results don’t apply to your competitor...who cares?)
[22:05] It's also important to know whether the data you are collecting is qualitative or quantitative. Conversations with people are qualitative, number of clicks are quantitative.
[24:00] If you know you will want to dig into demographics and other details, you probably need to build that into your data pull up front. Think and talk through what you actually want to know.
[24:35] My final tip is to test early and often.
[25:24] Small tests let you act quickly, so the more you test, the more you learn. No results still tells you something important.
[26:25] Findings tell you what attracts attention or what matters to your customers, but non-findings tell you what they don’t pay attention to or care about. Remember to keep it small, be thoughtful, and test often.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
455. The Influence Equation: Transformational Change with Steve Martin
00:45:57
In this episode of The Brainy Business podcast, Melina Palmer is joined by Steve Martin, the acclaimed author of Influence at Work and a leading expert in the psychology of persuasion. Steve is known for his collaboration with Robert Cialdini and his extensive work in applying influence and persuasion science to business and public policy.
Steve shares insights into his influence equation, a framework designed to simplify the complex nature of influence by integrating evidence, economics, and emotion. The conversation explores the transformational potential of influence beyond mere transactional interactions, emphasizing its role in organizational and global change. Steve also highlights the importance of context in determining the balance of these elements and shares practical examples from his research and experiences.
In this episode:
Explore the influence equation and learn how to apply it for transformational change.
Understand the role of reciprocity in building relationships and networks.
Discover strategies for influencing large organizations towards consumer-centric approaches.
Gain insights from Steve's most frequently asked questions on influence.
Learn about the importance of context in crafting successful influence strategies.
Show Notes:
00:00:00 - Introduction Melina Palmer introduces Steve Martin and his work in influence and persuasion.
00:04:12 - Steve's Background Steve discusses his journey and collaboration with Robert Cialdini.
00:10:30 - Influence Equation Introduction to the influence equation and its components: evidence, economics, and emotion.
00:20:45 - Reciprocity and Relationships The role of reciprocity in influence and relationship-building.
00:30:12 - Transformational Change Strategies for influencing large organizations towards consumer-centric approaches.
00:40:50 - Top 10 Influence Questions Steve shares his answers to frequently asked questions about influence.
00:50:35 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
332. Mastering Motivation: Ayelet Fishbach Reveals the Secrets to Achieving Your Goals (Refreshed Episode)
00:53:20
In this episode of The Brainy Business podcast, you'll hear an insightful conversation between host Melina Palmer and guest Ayelet Fishbach, a professor and researcher in behavioral science at the University of Chicago. The episode focuses on the topic of goal setting and motivation. Ayelet shares her expertise in understanding the psychology behind setting and achieving goals, emphasizing the importance of intrinsic motivation and finding joy in the journey.
She provides practical strategies for overcoming obstacles, reframing goals, and maintaining motivation over time. This episode is a must-listen for anyone seeking to improve their goal-setting skills and increase their chances of successfully achieving their goals. Ayelet's research-backed insights will inspire you to approach goal setting in a more thoughtful and effective way. So, if you're looking to enhance your motivation and achieve your goals, tune in to this episode.
In this episode:
Explore the science behind goal setting and motivation to uncover strategies for increased success.
Overcome obstacles and anticipate temptations in order to stay focused on achieving your goals.
Discover the importance of intrinsic motivation and how it can drive you towards sustainable success.
Learn the power of reframing goals and shifting your focus to the process, rather than just the end result.
Gain insights into planning for long-term goals and developing a more thoughtful approach to achieving them.
Show Notes:
00:00:00 - Introduction to the Episode Melina introduces the purpose of refreshing this episode and mentions the upcoming conversation with Vishal George, who references Ayelet's work.
00:02:04 - Setting Goals and Motivation Listeners are encouraged to think about their goals, especially related to money and financial stability. Melina teases the upcoming conversation with Ayelet Fishbach and encourages listeners to keep their goals in mind during the discussion.
00:02:53 - Interview with Ayelet Fishbach Ayelet Fishbach discusses her background in motivation science and goal setting. She explains how she became interested in studying motivation and self-control and discusses her early research on anticipating temptation. The importance of planning and thinking about obstacles is highlighted.
00:09:19 - Overcoming Fantasies and Intuition Ayelet emphasizes the importance of thinking beyond fantasies and focusing on potential obstacles. She discusses how fantasies are less effective than considering the challenges that may arise. The importance of questioning intuition and challenging common beliefs is also mentioned.
00:11:18 - Intuition and Counterintuitive Findings Ayelet discusses the importance of questioning intuition and presents examples of counterintuitive findings. She highlights the need to challenge common beliefs and assumptions, such as opposites attract or consistent reinforcement for behavior.
00:16:50 - The Power of Goals, The conversation begins by discussing the power of setting goals and the inspiration they provide. The example of Mount Everest is used to highlight the allure and intrinsic motivation behind achieving a specific goal.
00:19:33 - Choosing the Right Goal, The discussion emphasizes the importance of choosing the right goal, as not all goals are in our best interest. The example of climbers on Mount Everest who persist despite dangerous conditions is used to illustrate the potential pitfalls of misguided goals.
00:22:20 - Increasing Goal Adherence, The conversation addresses the issue of people giving up on their New Year's resolutions. The key factor in goal adherence is intrinsically motivating resolutions that provide immediate pleasure or growth. The importance of enjoying the path towards the goal is emphasized.
00:24:35 - Setting Pleasurable Goals, The discussion highlights the significance of setting goals that are pleasurable to pursue. Examples include enjoying healthier foods, finding fun ways to exercise, and creating rewarding work tasks. Emphasis is placed on the need to find pleasure in the process rather than solely focusing on the end result.
00:29:10 - Mistakes in Goal Setting, The conversation explores the common mistake of setting resolutions based on an idealized version of oneself. The concept of hyperbolic time discounting is mentioned as a factor that hinders long-term commitment. The speaker advises setting goals based on one's present self, acknowledging personal limitations, and planning accordingly.
00:34:52 - The Problem with Avoidance Goals, Avoidance goals, such as not being a couch potato or not eating junk food, are less likely to be successful because they bring to mind the very thing we are trying to avoid. Approach goals, on the other hand, like catching Pokemon, are more exciting and motivating.
00:36:10 - Why Avoidance Goals Don't Work, Avoidance goals may seem urgent in the short term, but they are not effective for long-term success. Instead of focusing on what not to do, it is more productive to think about what we should do. For example, setting a goal to have healthy snacks instead of avoiding junk food.
00:37:07 - Reframing Avoidance Goals, Reframing avoidance goals involves shifting the focus from what we should not do to what we should do. For example, instead of setting a goal to stop eating junk food, we can set a goal to eat healthy snacks. This reframing makes the goal more positive and motivating.
00:39:24 - Changing Perceptions of Healthy Food, Many people have a negative perception of healthy food, associating it with being tasteless. However, this perception can be changed by framing healthy food in a more positive and tasty way. When healthy food is seen as delicious, people are more likely to choose and enjoy it.
00:51:22 - Reaching Goals and Making Little Changes, Melina discusses the importance of regularly taking action towards goals instead of only focusing on the long term. Little changes and choices made today can have a significant impact in the future, such as planning for retirement. Being thoughtful and proactive is key.
00:52:03 - Conclusion, Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
236. Gratitude or Happiness: Which Comes First? (Refreshed Episode)
00:22:21
Today’s episode is all about the brainy benefits of gratitude. At the end of the year, I always like to do episodes about reciprocity, gratefulness, happiness, and planning…and this year is no different. One thing thatisnew this year, is that we have two episodes a week including our Tuesday refreshes so this episode from November 2019 on the brainy benefits of gratitude gets another day in the sun.
I really enjoy this episode as it looks at the difference between happiness and gratitude and how they might not work the way we think they should (which you will of course learn all about in the episode today).
Here’s something to think about as we start the episode: Do you have to get what you want to be happy? Is synthesized (or manufactured) happiness the same as natural happiness? What is best for your overall psyche and those around you? Keep that in mind as you listen, and share your thoughts with me on social media!
Show Notes:
[00:39] Today’s episode is all about the brainy benefits of gratitude.
[01:55] Gratefulness and reciprocity have an important thing in common, a tie that can bond them together which is a feeling of happiness and joy. Doing things for others or giving things away can make you feel happier.
[04:09] Our brains systematically misjudge what will make us happy.
[05:36] Dan Gilbert tells about how people don’t know what will make them happy. One of the most important things the human brain does is allow to synthesize the future, imagine what is to come, and predict how we should act for the best possible outcome.
[06:29]Natural happinessis a product of getting exactly what you want.
[06:41]Synthetic happinessis what we get when we don’t get what we wanted. Synthetic happiness, not getting what you want but still being happy about where you are is just as enduring and every bit as real to the brain as if you got exactly what you wanted or thought you wanted.
[09:36] A fascinating example using Monet paintings to show how our preferences change. You can be grateful, appreciate things, and have them make you happier even if you don’t remember going through the process before.
[10:09] We think we will be happier if we have more options or choices but there is such a thing as too much choice. Freedom to choose is the opposite of happiness.
[11:20] Those who were stuck and had no room for deliberation after the fact were much happier than those that had the option to ruminate. Those who were stuck had no reason to ruminate and counterfactualize and were considerably happier.
[13:00] Not getting what you want can make you just as happy or happier than if you had gotten what you set out for. Synthesized happiness is the same as natural happiness. Lots of choices and opportunities to ruminate are a recipe for unhappiness.
[14:23] Gratefulness goes first.
[15:07] The benefits of gratitude filtering can impact all areas of your life in a positive way. When you are filtering for gratitude you are resetting the way your subconscious is looking at the world around you.
[16:50] It is important to write gratitude by hand when you can. Writing things by hand has tons of benefits.
[17:41] One reason writing by hand does all these things is because it forces you to slow down and be thoughtful. Your brain pays more attention to things you write down.
[18:38] Gratitude can also improve relationships. Sharing the good makes it easier to share the bad allowing for growth and progress together.
[20:08] It is time to filter for gratitude and start writing what you are grateful for.
[20:12] Melina’s closing thoughts
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
130. How To Use Behavioral Science in Banking, Food Delivery and More–An Interview with Dr. Henry Stott, Co-founder of Dectech
00:41:27
Today I am very pleased to introduce you to Dr. Henry Stott, cofounder of Dectech, a behavioral science consultancy in the UK. As you’ll hear on the show today, Dectech works with all sorts of companies and industries, from banks to insurance and food delivery. They use randomized controlled trials and other techniques to help companies understand behavior and properly apply it within their businesses.
Dectech is not new to the space. It was founded nearly two decades ago in 2002, so they have lots of background and foundations they build upon.
During our conversation, Henry and I talk about all sorts of concepts, like nudges, anchoring, relativity, framing, habits, and more—and all those past episodes are linked for you in the show notes, as well as the bookThe Mind is Flatwritten by Henry’s cofounder of Dectech, Dr. Nick Chater.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
Show Notes:
[00:40] I am very pleased to introduce you to Dr. Henry Stott, cofounder of Dectech, a behavioral science consultancy in the UK.
[02:43] Dr. Stott started Dectech about 20 years ago with his cofounder, Dr. Nick Chater. They have spent the last 20 years refining their view on how you harness those methods to more accurately predict how consumers and other people will behave in novel situations.
[03:54] There are two classes of problems. The first class of problems is a precedent problem when you are trying to forecast the future.
[04:46] The second class of problems is harder (and often more valuable) where there has never been anything like it before. These are the types of problems they have set out to understand.
[06:06] Dr. Stott shares about the Deliveroo project. The question was whether they were going to launch a subscription product or not.
[09:04] Pricing is not about price. The way you present everything before you get to the price matters more than the number.
[10:34] Designing the proposition so it fits snuggly into what people want is the first objective. A lot of people fail to do that. They often have to drop the price because they haven’t added value.
[12:06] A lot of the designs of features and propositions are driven by an excessive fixation with competitors and an excessive self-confidence of the management.
[14:36] Looking to competitors when determining your pricing is a mistake.
[16:58] At least half of the judgment is made up of the movement of prices within a store as opposed to contrasting across stores.
[17:40] People are much more sensitive to the order of things than the size of the differences.
[19:54] When you are able to feel like you are part of the process waiting can feel less painful.
[22:51] Sometimes a time delay can be a good thing.
[23:36] Dr. Stott shares about the Lloyd’s Bank case study and the customer journey optimization process.
[24:31] They were looking to design a home insurance renewal process that worked best for the customers and the bank.
[25:37] They also tested a “name your price” condition, but it ended up not being very popular (which is good to know because it would have been very expensive to set up and would have been a waste of time and money).
[28:28] In experiments, Dectech runs as many as 20 variances. Sometimes they are all run together and other times they build on each other.
[29:33] The best approach is to immerse customers in a decision-making environment that is as close as possible to the environment they would naturally encounter.
[32:01] You can get quite close to replicating the kind of mindset people will be in using an online decision environment. These trials have to be run entirely virtually just because of the number of participants.
[33:20] More and more commerce is taking place online, so virtual testing and formats like this will be increasingly relevant. The pandemic has accelerated this trend.
[35:05] Small changes can have profound effects on the economics of your business.
[36:29] Before you start testing, think of the best ideas and try to innovate.
[38:34] Something novel or fun is often one of the best outcomes in the experiment.
[40:43] I love all the work Dectech is doing, it’s really fascinating stuff, and you will be hearing about them again in an upcoming episode featuring Dr. Benny Cheung.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
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19 Oct 2018
18. Priming: Why You Should Never Have A Difficult Conversation With Someone Holding An Iced Coffee
00:36:16
Our brains can be primed to lean toward a thought or word or number. Today’s behavioral economics podcast is another foundations episode, and it is all about priming. I share examples of how easy it is to trick the brain into thinking and answering something wrong with just a little priming.
When primed, your subconscious remembers it recently heard a number, or a statistic or something and that influences the next assumptions it makes – even if they are not even remotely related. I share examples of priming, research and studies related to priming, and examples of how you can use this concept to grow your business and profits.
[09:28] I share a rhyme and a question that shows an example of priming. Rhyming can be one way to prime the brain.
[11:11] Our brains will hear a number and then adjust up or down from there. This is another example of priming. Especially, when done intentionally like the examples I gave in Episode 11.
[11:34] Our brains are lazy and incredibly busy, so they take shortcuts all the time.
[11:48] Our subconscious brains need to make snap decisions. When primed, our brain will make assumptions based on the previous word or number that it has heard.
[12:18] I was giving a presentation to a group of female entrepreneurs (something I do a lot!). I asked everyone to think of the last 2 digits of their social security number. Then assign a value to the necklace I was wearing. Those with lower number socials assigned lower values, and higher numbers assigned higher values. This is the power of priming, the root of anchoring and adjustment.
[14:10] A priming example, where sales of Snicker bars were increased just by using the number 18.
[14:39] Limiting the number of cans of soup that someone can buy actually primes them to buy more.
[14:57] Priming can also be done with words. A priming example where students primed with words about elderly people actually took longer to walk to the elevator.
[17:30] They also did a study with rude and polite words. People primed with the rude words were much more impatient and likely to interrupt.
[19:17] A stereotyping example of priming. Priming people with words from a certain stereotype can actually affect the results on a math test.
[21:19] Prime yourself for success. If you doubt visualization, think how easily the brain can be primed.
[21:55] The power of visualization. There is a reason why Olympians train their brains as well as their bodies.
[22:48] Mental training may be even more important than physical training.
[22:59] The steps the visualization.
[23:01] 1. Know what you want. Ask yourself what you would like to see if nothing was holding you back?
[23:15] 2. Describe your vision in detail.
[23:28] 3. Start visualizing and create the emotions.
[23:41] 4. Take daily actions.
[23:58] 5. Have grit and persevere.
[24:27] Priming with physical objects. Participants in a study were asked to hold a cup of either hot or cold coffee. People who held the iced coffee actually rated the person in the story as being much “colder” than the hot coffee participants rated them.
[26:03] Participants in another study were more likely to clean up crumbs after a snack when there is a faint hint of cleaning products in the air.
[27:09] Several studies have been done where certain objects or smells will affect people's behavior.
[27:48] The takeaway from all of these studies is that everything we do and say matters. Whatever was said or done right before we do or say something also matters.
[28:34] You can't control everything, but it is worth looking into the things that you can control.
[29:25] Remember, what comes first matters much more than the price itself.
[30:25] With these priming examples, small things and a few simple words can make a huge difference.
[30:54] If you find people are always rude when they talk with you. Or treat you like you are cold and distant. It could be a bad prime.
[31:25] A study where participants were shown a flash of a logo for an imperceptible 30 milliseconds. Participants shown the Apple logo were more creative than participants shown the IBM logo.
[32:15] Participants shown a Disney logo were much more honest than participants who saw the logo for E!
[32:23] Have you ever heard people say you become like the people you spend the most time with? Or that you should dress for the job you want? Or that you should “fake it till you make it”?
[32:36] It seems there really is some truth to that. You are priming your brain to take on the traits of those outside influences.
[32:55] Prime your brain in a way that you want to be approaching your day in your life and business.
[33:14] Notice how quickly a brand is noticed. Ask what the traits of your brand are?
[34:21] These things may not register on a conscious level, but they have an impact, even if people don't realize it.
[35:03] Marketing and advertising takes dedication and focus; consistent presence and messaging to break through the clutter.
[36:51] Book your strategy session for a free consultation call now.
[37:52] On episode 19, I am going to dig into the foundations of herding – so get ready for some more amazing studies.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
310. Using Availability Bias to Generate Buzz (Refreshed Episode)
00:46:54
Understanding cognitive biases can inform marketing and advertising strategies in businesses. Availability bias causes individuals to rely on immediate information, which is easily accessible, instead of thorough research. If it comes to mind easily, we think it is more true or likely than if it doesn't come to mind as easily. Of course, that isn't always the case. Availability bias can deeply influence decision-making processes both within a company and for its customers. For businesses, understanding this bias can provide pivotal insights about consumer behavior--one great way to use this, which host Melina Palmer discusses in detail throughout the episode, is in pitching your business and getting PR.
During the podcast, Melina vividly illustrates the concept through examples, such as the typically contrasting associations with the words "shark" and "cow." She points out that these associations are borne out of the easily available information about these animals, rather than a comprehensive understanding of their respective behaviors. (Which do you think is more deadly? If you said a shark...you're in for a surprise!) Understanding availability bias and how it can be leveraged is essential for business owners and marketers to craft strategies that share the right message at the right time.
In this episode:
Unlock insights into availability bias and its impact on decision-making.
Hear some fun examples -- like, should you be more scared of sharks or cows? -- that will show how your own mind is tricking you regularly.
Learn why you should be following trends (and predicting them) so you communicate the right messages at the right time.
Hear the fascinating story of the diamond industry and how they used availability bias to shape the narrative.
Find out what HARO is, and how it can help your business to gain visibility along with availability bias.
Show Notes:
00:00:00 - Introduction, Melina Palmer introduces the episode and explains that availability bias is one of her favorite concepts from behavioral economics. She mentions that availability bias is the tendency to judge the likelihood of something happening based on how easily examples come to mind.
00:01:10 - Importance of Availability Bias, Melina explains that availability bias is important because it affects our perception of risk and influences our decision-making. She gives examples of how availability bias can impact our view of certain events or situations.
00:09:06 - Swapping Out Questions, Melina discusses how our brains often swap out difficult or unfamiliar questions with easier ones (known as satisficing). She uses the example of solving a complex math problem and how our brains substitute it with a range of possible numbers instead. This swapping out can lead to / go hand-in-hand with availability bias.
00:11:21 - Impact of Stories and Personal Experiences, Melina explains that stories and personal experiences have a significant impact on availability bias. Our brains are more likely to remember and be influenced by vivid examples and stories rather than statistics or abstract information.
00:14:01 - Applying Availability Bias in Business, Melina advises businesses to be mindful of availability bias when developing their strategies. She emphasizes the importance of using social media as a tool to support other business objectives rather than relying solely on it for monetary gain. (Will 1 million YouTube downloads a month make you rich?)
00:18:00 - How Our Brains Associate Information, Our brains associate information in very literal ways. Melina shares examples of travel to Norway increasing dramatically because of a cartoon, and skyrocketing sales in Mars bars when the Mars rover was in the news. Aligning your business with popular topics can help boost your visibility and engagement.
00:19:07 - Being Aware of Trends, Stay aware of what's trending in social media, news, and pop culture. Find ways to connect your business to these trends and get associated with what people are talking about and searching for. Especially in areas that may seem unrelated (more on that as we go).
00:20:46 - The Power of Rose Gold, Rose gold has become a popular trend, and businesses that offer products in this shade can attract customers who are actively seeking it. By using scarcity and availability, you can create a buzz and fuel interest in your offerings. If rose gold isn’t cool anymore by the time you are listening to this – or not aligned with your brand – what is the new “it” color? What is the Pantone color of the year, for example?
00:23:50 - Making Your Own Luck, Instead of waiting for opportunities to come your way, actively seek ways to connect your business to current conversations and trends. Look for unique and unexpected angles that can make you stand out from the crowd.
00:26:19 - Combinatorial Thinking, Combining seemingly unrelated ideas or concepts can lead to innovative and novel solutions. Don't limit yourself to obvious connections; think outside the box and explore new possibilities for your business.
00:37:36 - The Success of the Diamond Advertising Campaign, The advertising agency reported impressive results in its campaign, with diamond sales increasing by 55% in the United States from 1938 to 1941. The campaign focused on the emotional value of diamonds and created a new form of advertising that has been widely imitated.
00:38:48 - The Impact of De Beers' Advertising, De Beers continued to innovate its advertising approach, creating the "Diamonds are Forever" line in 1947 and utilizing television and a diamond information center. They even changed marriage traditions in Japan to incorporate diamond engagement rings. De Beers' advertising efforts led to a significant increase in diamond sales and a 100-fold increase in sales value by 1979.
00:42:12 - Importance of Research and Timing, De Beers understood the importance of solid research and finding new ways to reach consumers. They leveraged the popularity of influential figures, such as the royal family, to increase interest in their products.
00:44:04 - Conclusion, Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
467. The Streak End Rule: Revolutionizing Motivation with Polly Kang
00:49:53
In this episode of The Brainy Business podcast, Melina Palmer welcomes Dr. Polly Kang, a postdoctoral scholar at INSEAD, to explore the fascinating "streak end rule" and its implications for motivation and job satisfaction. Polly's research delves into how feelings influence decisions in organizational settings, using advanced quantitative tools and vast data sets to uncover causal relationships.
Polly shares insights from her study on a text-based crisis hotline, revealing how the order of tasks, rather than their difficulty alone, significantly impacts employee quitting rates. By strategically breaking up hard task streaks with easier tasks, organizations can reduce turnover by up to 22%. This episode provides practical strategies for managers to enhance job design and improve employee retention without financial incentives.
In this episode:
Discover the streak end rule and its impact on motivation and job satisfaction.
Learn how to reduce employee turnover by reordering tasks.
Understand the role of job design in creating a positive work experience.
Explore practical applications of the streak end rule in various organizational contexts.
Gain insights into leveraging employee input to optimize task assignments.
Show Notes:
00:00:00 - Introduction Melina Palmer introduces Dr. Polly Kang and the topic of the streak end rule.
00:03:00 - Dr. Kang's Background Dr. Kang discusses her academic journey and research focus.
00:08:00 - The Streak End Rule Explanation of the streak end rule and its implications for employee motivation.
00:18:00 - Practical Applications Strategies for applying the streak end rule to reduce turnover.
00:28:00 - Role of Job Design Discussion on how job design can enhance employee satisfaction.
00:38:00 - Managerial Insights Tips for managers to optimize task assignments and improve team dynamics.
00:48:00 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
81. How to Finally Change Your Behavior (So it Sticks)
00:33:11
In honor of the new year, today’s episode is about how to make behavioral change that sticks. Welcome to 2020 everyone! 2019 was an amazing year here at The Brainy Business, with 52 episodes released, more than 100,000 downloads in 150 countries, a brand new column on Inc.com (which already has 27 articles posted), a white paper on savings behaviors, two courses launched, and lots of engagement with all of you on social media.
Next week, I’ll dig into all of my top content from 2019. Today, is all about behavior change and narrowing your focus, so you can accomplish what matters most. If you are trying to do too many things at once, you will stay stuck. And, your brain actually wants that. I also talk about the Moment In Time or the Fresh Start Effect (like beginning your new goal or exercise program at the beginning of the year). I also talk about Temptation Bundling, which is combining something you should do (but often neglect) with something you really want to do) to help motivate you. This episode will help you name and claim your goal whether you are using fresh starts or temptation bundling (or ideally both!) to get going.
[06:45] The first thing to do, and something I have been preaching to you for months, is to narrow your focus.
[07:09] The brain can’t handle too many priorities. If you are trying to do too many things at once, you will stay stuck.
[07:19] The human brain likes predictability, it builds your world based on what has happened in the past and it likes to know where its next reward is coming from.
[07:51] If you don’t take the time to prioritize what really matters, your brain can keep hiding and keeping you stuck.
[08:24] Would you rather look back 10 years from now and say, “I made a little bit of progress on a lot of things…but never really completed what I wanted to” or “I completed one thing at a time and built on each success”?
[09:23] Now that you understand the importance of limiting your priorities and goals to no more than three, we can talk about how you can set yourself up for the most success for actually achieving what you have set as your priorities.
[09:46] There are many ways to tackle goals, and I'm going to share two of my favorites in this episode.
[10:54] You can and should throw everything you can at your goals including the tactics of "moments in time" and "temptation bundling."
[11:15] The "moment in time" is also known as the first start effect. This is exactly what you get at the beginning of the year (or decade in this case).
[11:36] We humans are wired to look at new moments in time as a fresh start. This is a form of mental accounting. These time breaks allow you to look at yourself fresh.
[12:27] We also create a new and distinct version of ourselves along with these fresh starts.
[15:04] One thing that the fresh start does is it prompts you to stop and, essentially, look up.
[15:39] Fresh starts are the opportunity to stop and look around to reevaluate what you’ve been doing and decide if it's time for a change.
[16:11] Anything and every day can be a fresh start.
[19:00] Any moment is an opportunity to be better than you were the moment before – an opportunity to reinforce those three goals you are focused on.
[21:51] Having an opportunity to step out of the everyday work and realign your priorities and make sure that you are still on track is a benefit to every business and individual.
[22:33] This practice can help you to reinvigorate your dedication to your life and commitments, to see what is working and what needs to change. It keeps you tuned in with yourself and your goals.
[22:45] Schedule quarterly appointments with yourself.
[23:22] If you are someone who sells products or services that align with being better or positive change…you should know when people are most likely to be looking for you and your offerings.
[23:40] At your office, align talking about change at times when people are already aligned for change like a holiday or New Year.
[24:37] While milestone dates can be beneficial for forming new habits…they also are a key point where you might BREAK habits – for better or worse.
[25:14] You can control this. Awareness is key.
[26:11] I've talked about bundling tasks and habit stacking in the goals episode.
[26:39] Temptation bundling is another way to motivate yourself to have positive behavioral change. You can combine doing something you really want to do with something that you know you should do.
[27:19] The only time you get to do the reward is when you are doing the thing that you should do.
[29:33] Two thirds of people would prefer to have their possessions locked up to keep them on track. Committing your goal to someone else means you are much more likely to keep it.
[31:09] The thing for you to do is think about what you wish you could do – or something where you tend to get distracted from your goals…and combine it so you can ONLY do it when it is helping you achieve your goal.
[32:19] Combining the knowledge of these two methods: temptation bundling and fresh starts, are a great recipe for achieving those goals and resolutions in 2020 and throughout the whole new decade.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
333. Designing the Future of Saving: Behavioral Science Strategies for Financial Success - Vishal George
00:49:30
In this episode of The Brainy Business podcast, you'll hear an insightful interview with Vishal George, a behavioral scientist and author of the book Money Mindsets. Vishal's expertise lies in combining behavioral science with human-centered design and systems thinking. He shares examples of his work, including a project in New Zealand aimed at reducing businesses' carbon emissions by using the messenger effect of young people's voices.
The conversation then delves into the importance of understanding our own money stories and how they shape our financial behavior. Vishal emphasizes the need to break the taboo surrounding money conversations and draws inspiration from children's natural curiosity about money. The episode explores the intersection of behavioral science and personal finance, providing practical insights for improving financial well-being. Whether you're looking to make better financial decisions or increase your savings, this episode offers valuable strategies and perspectives.
In this episode:
Gain insights from behavioral science to make better financial decisions and improve your financial well-being.
Break the stigma around money by engaging in open and honest conversations, leading to a healthier relationship with your finances.
Cultivate curiosity to enhance your financial decision-making skills, allowing you to make informed choices that align with your financial goals.
Design financial products and services that take into account human behavior, ultimately helping you achieve your financial objectives more effectively.
Explore the benefits of creating spaces for open conversations about money and financial goals, fostering a supportive community that empowers individuals to take control of their finances.
Show Notes:
00:00:00 - Introduction, Melina welcomes Vishal George to The Brainy Business podcast to discuss his book Money Mindsets and his work as a behavioral scientist.
00:03:57 - Using Behavioral Science to Reduce Carbon Footprints, Vishal shares an example of a project where he worked with the government of New Zealand to reduce businesses' carbon emissions. By designing experiments and testing different strategies, they discovered that the messenger effect, particularly the voice of the next generation, was the most effective in motivating businesses to reduce their carbon footprint.
00:09:16 - The Power of Testing High-Risk Ideas, Vishal emphasizes the importance of testing high-risk ideas, even if they may seem unconventional or counterintuitive. By pushing the boundaries and exploring extreme ideas, it becomes easier to find the middle ground and identify innovative solutions.
00:12:10 - The Inspiration Behind Money Mindsets, Vishal explains that his inspiration for writing Money Mindsets was to provide a positive and impactful resource for individuals, particularly young males, to explore emotions, feelings, and empathy through the topic of money. The book aims to help readers understand their own emotions surrounding money and empathize with others in different circumstances.
00:13:54 - The Emotional Aspect of Money, Vishal discusses how money evokes various emotions in people and how understanding these emotions can lead to a healthier relationship with money. He emphasizes the importance of exploring and acknowledging our emotions surrounding money in order to be more financially informed.
00:18:53 - Importance of Breaking Through the Stigma Around Money, Vishal discusses the importance of breaking through the stigma surrounding money and suggests that cultivating curiosity about money can help individuals make more intentional financial decisions. He also mentions the abundance of financial products and services that can lead to overspending.
00:21:38 - Two Types of Curiosity and Building Financial Knowledge, Vishal explains the two types of curiosity: diversity curiosity and epistemic curiosity. He suggests that building curiosity about money and related topics can help individuals make better financial decisions. He recommends clustering reading on topics like saving, spending behaviors, habits, motivation, and behavior change.
00:25:06 - Visible Spending and Invisible Saving, Vishal discusses the shift from visible saving in the past to visible spending in the present. He highlights how technologies and digital currency have made spending behaviors more visible while saving behaviors remain invisible. He emphasizes the need to talk more openly about saving to reduce stigma and foster motivation.
00:27:16 - Overcoming Challenges in Talking About Money, Vishal addresses the challenge of talking about money, particularly when it comes to accomplishments like being debt-free. He acknowledges the fear of bragging or making others feel inadequate, but emphasizes the importance of sharing positive financial experiences to break the cycle of assumption and encourage others to pursue financial goals.
00:36:31 - Designing Products and Services for Human Behavior, The conversation begins by discussing two approaches to designing products and services with consideration for human behavior. The first approach focuses on removing barriers and making it easier for people to achieve their goals. The second approach explores the motivation and factors that drive individuals to set and achieve their goals.
00:37:30 - The Challenge of Saving Money, The conversation shifts to the challenge of saving money and the difficulty in resisting one-time expenses. Vishal shares a story about a person named Kaya who struggles to save money due to various events and temptations. This highlights the need for financial institutions to create products and tools that make saving money as easy as spending money.
00:40:34 - Creating Products that Facilitate Saving, Vishal discusses the importance of balancing spending and saving by creating products that make saving money just as easy as spending money. An example is given of a bank that offers a program called "Save the Change" which automatically rounds up purchases and transfers the spare change to a savings account. This removes friction and encourages saving.
00:42:14 - The Role of Friction in Breaking Habits, The conversation explores the role of friction in breaking habits. While removing friction can make it easier to save money, adding some friction can help evaluate the necessity of certain actions. An example is given of introducing a process for employees to justify business travel, which adds a little bit of friction to assess if the travel is truly necessary.
00:45:49 - Conclusion, Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
421. Behavioral Science and Democracy w/ Beatriz Vallejo
00:36:27
In this episode of The Brainy Business podcast, Melina Palmer is joined by Beatriz Vallejo, CEO of Ethos BT, to discuss the impactful work of reducing misinformation and polarization in Colombia using behavioral science. Beatriz, a behavioral scientist and economist, shares her journey from studying economics in Colombia to completing a master's in behavioral change at UCL, focusing on the factors that lead to the belief and spread of fake news. The conversation visits her extensive research on misinformation, the psychological factors influencing it, and the innovative Detox Information Project aimed at mitigating these issues.
Beatriz highlights the importance of understanding psychological factors like dehumanization, distrust, discrimination, and low tolerance to ambiguity, which contribute to the spread of misinformation. The episode also explores the success of various interventions, including personality tests and social experiment videos, which have proven to reduce misinformation vulnerability by 30%. This episode is a treasure trove of insights for anyone interested in behavioral science, misinformation, and societal improvement, showcasing the significant impact of behavioral interventions in real-world settings.
In this episode:
Discover the psychological factors contributing to misinformation and polarization in Colombia.
Learn about the Detox Information Project and its innovative approach to reducing fake news.
Understand the importance of research and data in designing effective behavioral interventions.
Gain insights into the challenges and successes of applying behavioral science in diverse contexts.
Get inspired by Beatriz Vallejo's journey and her impactful work in behavioral science.
Show Notes:
00:00:00 - Introduction Melina introduces Beatriz Vallejo, CEO of Ethos BT, and highlights her work in behavioral science and misinformation.
00:05:20 - Beatriz's Background Beatriz shares her academic journey from studying economics in Colombia to completing a master's in behavioral change at UCL.
00:10:45 - Initial Research on Fake News Beatriz discusses her master's thesis on the psychological factors related to believing and sharing fake news in Colombia.
00:15:30 - The Detox Information Project Beatriz introduces the Detox Information Project, aimed at reducing misinformation through behavioral science interventions.
00:20:15 - Key Psychological Factors Beatriz explains the four psychological factors—dehumanization, distrust, discrimination, and low tolerance to ambiguity—that contribute to misinformation vulnerability.
00:25:50 - Effective Interventions Beatriz discusses the success of personality tests and social experiment videos in reducing misinformation vulnerability by 30%.
00:30:35 - Challenges in Behavioral Science Beatriz shares the challenges of convincing stakeholders to invest in research and the importance of understanding the problem before designing solutions.
00:35:50 - Tips for Aspiring Behavioral Scientists Beatriz offers advice for those looking to make an impact in behavioral science, emphasizing the importance of networking and continuous learning.
00:40:25 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
121. Meet GAABS! Interview with founding members of the Global Association of Applied Behavioral Scientists
00:49:28
In today’s episode, I’m so honored to introduce you to four of the founding members of the newly formed GAABS, the Global Association of Applied Behavioral Scientists, which officially launched in September of 2020. I’m joined by Torben Emmerling of Affective Advisory, Nuala Walsh of Mindequity, Madeline Quinlan of Salient Behavioural Consultants, and Dario Krpan of the London School of Economics.
As a rapidly growing and currently unregulated field, GAABS comes in as the world’s first independent organization representing the interests of applied behavioral scientists, primarily those working in the private sector, and has an impressive list of founders, starting members, and advisory board members, including Robert Cialdini and Nobel laureate Daniel Kahneman. It is going to be an increasingly valuable and important organization as the years’ pass, and I’m so excited to be here to introduce you to the group in its infancy.
Show Notes:
[00:47] Today on the show I am joined by the four founding members of the Global Association of Applied Behavioral Scientists (GAABS), which officially launched September of 2020.
[03:31] Torben Emmerling is the Founder and Managing Partner of Affective Advisory, a fully specialized behavioral science firm based in Switzerland.
[04:21] Nuala Walsh is the founder of Mindequity. She focuses on financial services, oil and gas, and sports.
[05:48] Madeline Quinlan is a director and co-founder of Salient Behavioural Consultants. They use academic rigor and insight to practice from a behavioral point of view.
[06:42] Dario Krpan is an assistant professor of behavioral science at the London School of Economics. He researches how to use behavioral science to solve real-world problems.
[08:08] GAABS as a concept started as a conversation and precommitment at a conference in the summer of 2019.
[10:06] GAABS stands for the Global Association of Applied Behavioral Scientists.
[10:31] This is an unregulated industry for applied practitioners and what they are hoping to do is guard against the proliferation of people that are not bona fide practitioners in the field.
[12:19] GAABS is a nonprofit, member-based entity and it is there for all qualified behavioral science practitioners out there to be a platform to bridge academia and practice.
[13:11] This is truly there to connect the field and make sure the ethical and technical standards of behavioral science are kept, raised and advocated around the world.
[15:57] We want to be a very welcoming member body where we see many different approaches. We do have to make sure certain standards are kept.
[16:38] One of the benefits of membership we see going forward is using this as a forum with the extra benefit of an academic advisory board.
[19:21] Being able to say that you met the criteria to join there is some higher entity that shows we have worth and social proof.
[20:54] There is a lot of interest from people just entering the field and from people that are already established in the field.
[21:57] GAABS is not providing certification or training, because there are many other groups doing a good job with that already.
[23:26] There are two types of membership, individual and organizational. For the individual memberships, they look for people with qualifying criteria. People who are able to show that they have completed a post-grad qualification in a relevant subject in the behavioral sciences, relevant publications, teaching in the field, or relevant contributions to the field.
[25:15] On the organizational side we look for proof that it is a proper behavioral science unit or consultancy.
[27:21] They are all dedicated to this idea that is going to be built by the members for the members.
[28:44] GAABS is member focused like companies are client-focused and they want to hear ideas from members for improvement. All ideas are welcome!
[30:51] The group is a wonderful resource to share research findings before they are professionally published and learn from others.
[33:43] It is a great way to share what is interesting in this space, how others are going about this, and transparency around how behavioral science tools are used.
[34:39] The academics have access to tremendous resources.
[36:31] We live in a global world right now and companies and public organizations are commissioning projects around the world. This will be a platform to gather knowledge.
[39:05] This is a way for like-minded and interested people to convene and we need to replicate that working for any of our clients.
[39:58] There is so much willingness to share and be open within the group. It is a very inviting field.
[41:06] There is so much room for everyone at the table of behavioral science and practice because there is so much demand and need for it.
[44:01] It is an amazing benefit that we are able to connect with people in the field all over the world. GAABS is a great resource to help behavioral scientists to connect globally and it can propel these connections to happen faster.
[46:21] Behavioral science is a field on the rise, and having a professional body to showcase and support the “bona fide practitioners” is so important. GAABS will help safeguard and maintain the quality and standards within the field, promote important insights and applications, be a prestigious community to build alliances with peers on a global level, with access to exclusive events, conferences, and educational programs and so much more. If you’re a qualified practitioner of behavioral science, use the links below to apply to join this wonderful group!
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
149. Familiarity Bias: Why the Devil You Know Feels Safer Than the Devil You Don’t, a Behavioral Economics Foundations Episode
00:20:58
Today we will be talking all about familiarity bias. Sometimes on the show, I share concepts with you that are a bit foreign. Like one of my all-time favorites in hyperbolic time discounting or even something like “choice architecture” which can sound a little intimidating. Others are like the topic of today’s show. Familiarity bias is less scary because...it’s familiar!
It’s a term that is a bit like a warm hug, but that doesn’t mean there aren’t things for you to learn. This is a bias that can serve you well in life and business but it also often steers people wrong. So it is important to know how it works, and what to be on the lookout for on both the positive and negative sides.
Show Notes:
[00:07] Today’s behavioral economics foundations episode is about familiarity bias.
[02:30] The subconscious brain makes decisions using rules of thumb based on predictability. It likes to know what is coming next so it can keep the reins which means it has a strong bias toward things it is familiar with.
[04:03] What matters is knowing that the more people become familiar with things, the more likely they are to prefer them; to have a bias toward them.
[04:22] Studies have shown that our bias toward the familiar can make it so we make worse bets, that we invest in the wrong things, that we will be more likely to hold out in jobs that we have outgrown or keep pouring money into projects we should have let go of.
[05:49] That new job opportunity or relationship or project or apartment or whatever else is presenting itself will probably be scary at first, but that doesn’t mean it is bad or wrong. Embrace the feeling and jump in knowing that soon it will be like that song you hated the first time you heard it.
[07:54] Eventually, and much faster than you think, this will become familiar—the new normal. You will adjust. Look at how so many people adjusted to working from home or wearing masks during the pandemic.
[09:07] Is there a “way you’ve always done things” that feels like you can’t change it but might just be familiarity bias?
[09:48] Awareness of familiarity bias can help you ask that question when you feel hesitant to take a step in a new direction.
[11:59] Don’t be afraid to reuse an ad a few times, people might like it more as they continue to see it.
[13:47] You don’t have to constantly feel the pressure to reinvent the wheel.
If something worked, keep doing it! Maybe you want to do a slight tweak to see if you can improve on a good thing, but if it ain’t broke, don’t throw it out and start on something new.
[15:43] It’s ok to prioritize an important project now and let something else that is doing fine sit on the shelf a little longer. It may be becoming familiar and making your customers like it (and you) even more with time.
[16:58] Some things are not going to benefit you if you change them up. They could actually be a detriment.
[17:40] When you are feeling like you’ve done something a few times so people must be getting bored with it and they’ll leave if you don’t do something new and fresh, remind your conscious brain that people like familiarity!
[18:09] If you have anyone, customers or team members (or family members!) who hate the idea of a change and fight or resist at first, give it a little time to let familiarity bias set in.
[19:21] What do you have in your business that is best to keep familiar for your customers?
[19:48] Melina’s first book,What Your Customer Wants and Can’t Tell Youis officially on presale and available onAmazon, Bookshop,Barnes & Noble,Book Depository, andBooktopia. Buy today and be one of the first to receive a copy when it officially launches May 11, 2021.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
I recently took a trip down to College Station, Texas to visit the Human Behavior Lab at Texas A&M University – which is (at the time of recording) the largest human behavior lab in the world. Today’s behavioral economics podcast gives you an inside look at what happens inside of a laboratory like this.
In this episode, I interview Dr. Marco Palma to find out what really goes on and answer questions like how do they actually take these concepts from behavioral economics and study them to impact real businesses? What sort of equipment do they use? How do they know what is going on in the brain and more. I hope you enjoy this sneak peek into what really goes on behind the scenes at a Human Behavior Lab.
Show Notes
[04:11] The lab has sensors that helps them understand human behavior and what drives the emotions.
[04:34] We are heavily influenced by our emotions, and in some cases, don't even realize it.
[04:59] Some of the equipment they use includes facial expression readers which can correlate movements in the face with emotions.
[05:19] They also have the capability of looking directly into your brain. They can measure stress signals like respiration and heart rates.
[05:38] They are trying to understand and measure the motivations behind behavioral economics.
[06:03] They also want to test results in the real world.
[06:15] The virtual room is a mock grocery store which allows for testing with real products.
[07:00] Experiments are conducted in a controlled laboratory environment and in the real world to understand the complexities.
[07:27] They use eye-tracking hardware created by Tobii. They can also combine this with an EEG device and have all the hardware in a very small backpack so the subject is mobile.
[08:18] The global leader that makes it easy to synchronize multiple devices at the same time is iMotions.
[09:19] These new tools have really advanced the pace of discoveries that they can make.
[10:02] They're interested in emulating what drives attention. When they know what people are paying attention to the message can be created in a way that will be noticed.
[11:18] This is also useful for judging the effectiveness of a website and product placement in a store or display.
[11:54] Everything matters. Often small things that we don't think will matter can make a huge impact.
[13:15] We are often guilty of making messages that are overly complex. We want the message to be perceived as simply as possible and to clearly communicate the benefits.
[13:56] Menu optimization includes maximizing benefits and minimizing cost. Anchoring can be used for pricing on menus. Work done with eye tracking shows how people actually search for information. These clues can tell you where to place your anchors.
[16:16] We use rapid eye movements and digest a lot of information in a very fast manner.
[18:00] These devices can track 600 data points per second. Collecting data allows us to make inferences about behavior.
[20:15] The foundation of what they do in the lab comes back to establishing causality.
[21:52] They control for every detail to establish causality.
[22:25] In 2019, they are interested in looking at self control.
[22:52] By February 1st, 80% of Americans will have given up on their goals.
[23:22] Small changes are much more sustainable than large drastic changes.
[23:57] They are also going to look at cheating and lying. They are looking at what drives people to cheat for themselves and for other people.
[24:41] What drives the behavior based on the assumption that large corporations or the government aren't being hurt by cheating?
[24:52] They are also going to look at what drives people to be more generous. They're going to look at drivers for giving. Also at things like matching funds and fundraising campaigns.
[26:15] They are also looking into competition and what drives high-achieving individuals.
[27:23] They are trying to find ways to promote competition particularly for women.
[29:12] Dr. Palma also wants to mention all of the work that they are doing with food. The way we interact with food is paramount to everything that we do.
[29:46] Part of the obesity epidemic in this country has been driven by the access to food. They are trying to find a way to help people make better choices without telling them what to do.
[30:14] It's interesting to understand the way that our brains are wired and how we can change that.
[30:31] Our survival depended on finding sugar, because it meant that we were able to store calories. The reward pattern for ingesting sugar is the same as the reward pattern for taking drugs.
[31:43] We owe it to ourselves and to society to recognize how we can overcome these phenomenons.
[32:49] It's important to place this research into the hands of entrepreneurs who are doing important work.
[33:58] We can now predict brain activity with 84% accuracy about whether someone will buy something or not. This shows the power of research.
[34:36] My current and potential clients who are interested in doing a study to make their brand messaging more effective can work in tandem with myself and the Human Behavior Lab. Interested? Send me an email - melina@thebrainybusiness.com.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
246. Past, Present, and Future Biases (Refreshed Episode)
00:35:23
Today’s episode is another refresh from the series I did on “All the Biases” back in 2019. Two weeks ago on episode 242 we had the one on numbers-based bias called “Math is Hard” and this week is all about time. It focuses on the past and the future and how we don’t look at them in the same way, and how that can impact our behavior (it isn’t always the same and our preferences definitely change when we are looking forward versus backward) and how this changes the way we value things and so much more.
I chose to refresh this episode today because this coming Friday, Dolly Chugh is on the show to talk about her new book,A More Just Future.We talk specifically about how the way we look backward isn’t the same as when we look forward, and how that impacts our likelihood to take action. Even when we are furious in the moment, and are adamant we will take action, because the past and future don’t impact our behavior the same way we often don’t. This can be really problematic when we are looking to right the wrongs of the past and present for a better future.
As you listen today, I encourage you to consider how the past, present, and future are different for you. Think of a time when you were outraged by something in the moment and said (either aloud or in your head) that you were absolutely going to do or say something and never did. Why is that? When you remember that incident do you feel as upset about it? What if you heard it was going to happen tomorrow or a week from now? What might you do to prevent it? Why do the past and future feel different and how can this knowledge change the way you support other humans?
Show Notes:
[00:39] Today’s episode is another refresh from the series I did on “All the Biases” back in 2019.
[01:39] Because the past and future don’t impact our behavior the same way, it can really be problematic when we are looking at history and helping to right the wrongs of the past and present.
[03:48] People want immediate payoffs.
[06:23] Due to impact bias, we overestimate the duration of the intensity of the impact of how we will feel in the future. We are also victims of projection bias.
[08:26] To prove a point now you might be making a choice that negatively impacts your future self.
[10:08] The sunk cost fallacy is where people will keep spending and justify pouring into a bad prior investment even though evidence shows it is bad.
[12:37] As your brain gets overwhelmed your subconscious is more likely to take the reins, meaning you will make more battery and present-focused decisions instead of snowball, future-focused decisions.
[14:05] In the cold state we may know that something is a good idea and commit ourselves that when you are in a hot state you don’t have the option to let that hot self take over and make a bad decision about the present.
[16:03] People think that when you are in that cold state you're not going to require, need, or want whatever the things are as much as you actually will when your body chemistry has changed to the hot state.
[16:49] People are impacted more by losses than gains and it takes double the joy felt by a gain to equal the pain that is felt by a loss.
[18:03] You may consciously want to stop dreading something. However, as long as your subconscious is still getting some kind of reward or benefit from the physical act of dreading you would need a lot of extra savoring, positive benefit, and something to enjoy at the moment to combat the dread.
[20:45] We do not really like risks and will avoid them when we can. Due to a zero risk bias, we humans prefer to reduce a small risk down to nothing than we would like to take a bigger reduction in a larger risk.
[22:27] When you think you are safer, you are more likely to take risks in other areas. For example, people drive worse when wearing a seatbelt.
[25:01] Because we don’t want to change, we may ostrich and avoid the potential negative even at our own personal cost.
[26:13] For one person to succeed it does not mean everyone else has to lose or fail.
[28:52] When you know the rules of the game (all these biases and how they work together) it can be easier than you think to trick your brain into doing more in your own favor and use these biases in your favor so you can make decisions today that you will appreciate tomorrow or help get yourself out of a negative spiral.
[31:52] Melina’s closing thoughts
[32:37] Time discounting is such a big hurdle for us but knowing about it and how it combines with bikeshedding, planning fallacy, and optimism bias is the first step in tackling this.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
In this episode of The Brainy Business podcast, Melina Palmer unveils the backstory of her latest book, The Truth About Pricing: How to Apply Behavioral Economics so Customers Buy. By tracing her path from book concept to publication, Melina underscores the significance of pricing confidence for businesses. The episode delves into the challenges businesses encounter in pricing and how Melina's book offers actionable advice to cultivate that essential confidence.
With a focus on unraveling the psychology and behavioral economics underpinning pricing decisions, Melina's book aims to empower businesses to enhance their sales strategies and cultivate customer loyalty. For business owners and entrepreneurs seeking to elevate their pricing acumen and drive profitability, this episode is a valuable resource. Melina's expertise and pragmatic insights make it an indispensable guide for navigating the complexities of pricing strategy.
In this episode, you will be able to:
Mastering the Book Publishing Process: Unveiling the intricacies and essentials of publishing a book for aspiring authors and entrepreneurs.
Optimizing Pricing Strategy for Businesses: Maximizing profitability and competitiveness through strategic pricing methodologies tailored to your business.
Leveraging Behavioral Economics in Pricing: Harnessing consumer psychology and decision-making behaviors to drive sales and revenue.
Cultivating Confidence in Pricing Decisions: Developing the expertise and assurance needed to make sound pricing choices for your products or services.
Incorporating Psychology into Pricing Strategy: Understanding the psychological triggers that influence consumer purchasing decisions and using them to your advantage.
Show Notes:
00:00:00 - Introduction
Melina introduces the episode, discussing the launch of her new book. She provides an overview of what listeners can expect in the episode.
00:04:16 - The Journey to Writing The Truth About Pricing Melina shares the journey of writing The Truth About Pricing, from connecting with a book agent to finalizing the contract for the book. She discusses the process of pitching the book to publishers and the serendipitous events that led to its publication.
00:09:30 - The Problem with Pricing Melina delves into the common struggles and stress associated with pricing for businesses. She highlights the pressure to get pricing perfect, the tendency to procrastinate, and the overwhelming amount of information available on pricing strategies.
00:11:33 - Gaining Confidence in Pricing Strategy Melina emphasizes the importance of confidence in pricing and its impact on customer behavior. She discusses the value of gaining confidence in pricing strategy and presents the book as a guide to achieving this confidence.
00:15:36 - Overcoming Procrastination and Setting the Right Price Melina addresses the common pitfalls of procrastination in setting prices and the cognitive biases that contribute to this behavior. She highlights the book's focus on overcoming these challenges and setting prices with confidence.
00:16:05 - Setting the Stage Melina explains that the book focuses on understanding the pricing problem and how behavioral economics is the key to success. It covers the science behind pricing and the steps to optimize pricing using behavioral economics and psychology.
00:19:25 - The Golden Octopus Melina introduces a short story about the purchase of a golden octopus to illustrate how pricing really works. This section also provides insights on pricing placement and psychology, outlining the brain tricks that impact pricing.
00:21:06 - Building a Foundation This part focuses on the importance of the factors that come before the price itself. It emphasizes the need to create a seamless buying experience for customers and highlights the significance of choice architecture in pricing strategy.
00:25:22 - Applying the Framework Melina introduces the It's Not About the Cookie framework, which consists of six categories of behavioral science to consider when applying the foundation of the pricing strategy. It also discusses the value of properly structuring a choice in pricing.
00:30:06 - Case Studies Melina discusses four case studies of well-known global businesses to inspire readers on how to apply the concepts to their specific business types. The case studies cover quality and value-based product and service businesses, offering practical insights for readers.
00:31:40 - The Importance of Pricing Strategies Melina emphasizes the importance of making pricing decisions efficiently and confidently. She offers a guide to streamline the process and highlights the value of incorporating psychology and behavioral economics into pricing strategies.
00:32:38 - Freebies and Resources Melina discusses the complimentary items available, including a virtual glossary and a pricing mastery checklist. She invites listeners to visit thebrainybusiness.com for a free sample chapter and provides links for ordering the book.
00:33:47 - Availability and Formats Melina shares that the book is available for purchase on various platforms and mentions the upcoming ebook and audible versions. She encourages preordering and assures that the audiobook is professionally narrated.
00:34:48 - Audiobook and Book Content Melina addresses the suitability of the audiobook for learning, highlighting that the book's tasks are not heavily reliant on visual aids. She provides links to order all her books and emphasizes the value of the book's content.
00:36:19 - Conclusion Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
422. The Lazy Brain: Unveiling Biases That Shape Our Decisions (Refreshed Episode)
00:26:34
In this episode of The Brainy Business podcast, Melina Palmer explores the fascinating world of lazy brain biases. This episode is part of an eight-part series exploring various biases, focusing on how our brains prefer to take the path of least resistance. This rapid-fire episode provides a brief overview of each bias, helping you understand their roles, interactions, and impacts on decision-making.
Melina refreshes this episode in anticipation of her upcoming interview with Alex Edmonds about his book May Contain Lies, which discusses misinformation and the importance of understanding information responsibly. Lazy brain biases play a significant role in how we process and accept information, making this episode a perfect primer for the conversation with Alex.
In this episode:
Discover how the default effect influences our choices.
Learn about the decoy effect and its impact on decision-making.
Understand the automation bias and its implications in a tech-driven world.
Explore the law of the instrument and functional fixedness.
Gain insights into framing, anchoring, and the contrast effect.
Examine biases and their influence on decision-making.
Identify how surrogation and Parkinson's Law of Triviality affect business decisions.
Learn strategies to push your brain’s limits and overcome lazy tendencies.
Show Notes:
00:00:00 - Introduction Melina introduces the episode and its focus on lazy brain biases, part of an eight-part series on biases.
00:02:30 - Default Effect Melina discusses the default effect, where people tend to choose the default option presented to them.
00:04:00 - Decoy Effect The decoy effect is explained with examples from espresso machines and The Economist subscription options.
00:06:00 - Automation Bias Melina talks about our excessive dependence on automated systems and the importance of checking their effectiveness.
00:07:30 - Law of the Instrument and Functional Fixedness These biases are discussed with examples like the Apollo 13 mission.
00:09:00 - Framing and Anchoring Melina explains how framing and anchoring influence our decisions, with links to related episodes.
00:10:30 - Contrast Effect The impact of priming and previously presented information on decision-making is discussed.
00:12:00 - Biases Melina explains how our senses influence our external decisions, using judges' sentencing patterns as an example.
00:13:30 - Ambiguity Effect and Action Bias These biases are explored with examples from medical decisions and soccer goalies.
00:15:00 - Stereotyping and Illicit Transference Melina discusses how our brains make assumptions about groups and individuals.
00:16:30 - Surrogation The concept of surrogation is explained with an example of customer satisfaction surveys.
00:18:00 - Parkinson's Law of Triviality Also known as bikeshedding, this bias is discussed with examples from pricing strategies.
00:19:30 - Lag Effect and Levels of Processing Melina talks about effective learning strategies and how to trick your lazy brain into focusing.
00:21:00 - List Length Effect The impact of list length on memory is discussed, encouraging listeners to push their brain's limits.
00:22:30 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
In this episode of The Brainy Business podcast, Melina Palmer welcomes Dr. Rosalind Chow, an associate professor of organizational behavior and theory at Carnegie Mellon University. Rosalind shares insights from her new book, The Doors You Can Open, where she distinguishes between mentorship and sponsorship, emphasizing the importance of actively creating opportunities for others.
Melina and Rosalind dive into the dynamics of power and status within organizations, discussing how social hierarchies can impact diversity and inclusion efforts. They explore practical strategies for individuals at any level to become effective sponsors, highlighting the significance of good listening and the power of positive connections. The conversation also touches on real-world examples, such as the story of Kim Ng and Derek Jeter, illustrating how sponsorship can lead to transformative career opportunities.
In this episode:
Discover the key differences between mentorship and sponsorship, and why both are essential for career development.
Learn how social hierarchies influence decision-making and the importance of understanding power dynamics.
Explore the concept of "good gossip" and how it can be used to foster connections and support others.
Understand the role of listening in effective sponsorship and how it can deepen relationships.
Gain insights into actionable steps you can take today to become a sponsor for someone else.
Get important links, top recommended books and episodes, and a full transcript at thebrainybusiness.com/489.
Looking to explore applications of behavioral economics further?
362. Anticipating Errors: The Secret to Guiding Behavior and Influencing Decisions
00:43:48
In this episode of The Brainy Business podcast, you'll join host Melina Palmer as she dives into the fascinating world of behavioral economics and decision-making. With her expertise in the field, Melina explores the concept of Expect Error and how it plays a crucial role in understanding human behavior and designing effective nudges. By sharing personal experiences and real-life examples, she highlights the common errors we make in judgment and decision-making.
From post-completion errors to forgetfulness, Melina demonstrates how anticipating these errors can lead to improved decision-making and behavior. Throughout the episode, she provides valuable insights and practical strategies for businesses and individuals to leverage the power of nudges and choice architecture. So, if you're interested in enhancing your decision-making skills and understanding the psychology behind our choices, this episode of The Brainy Business is a must-listen. Get ready to gain valuable knowledge and unlock the secrets to better decision-making!
In this episode, you will:
Understand the impact of errors in decision-making to improve your choices.
Harness the power of choice architecture to shape your decisions and outcomes.
Discover effective nudges that can influence behavior and guide decision-making.
Enhance the effectiveness of nudges by incorporating sensory cues.
Create consistency in your routines and habits to optimize your decision-making process.
Show Notes:
00:00:00 - Introduction, Melina introduces the episode, which focuses on the E in Nudges - Expect Error. She explains that humans make errors in judgment and decision-making all the time, and emphasizes the importance of designing interventions to support behavior.
00:03:32 - Importance of Expecting Error Melina discusses the importance of expecting errors in decision-making and how it is the reason why nudges and choice architecture exist. She highlights that humans are not perfect, unlike the fictitious species of econs in traditional economic models, and provides examples of errors we can expect in everyday life.
00:07:53 - Post-completion Error Melina explains the concept of post-completion error, where we mentally check off a task as done even if it is only partially completed. She shares her personal example of forgetting to move the laundry from the washer to the dryer. Melina also mentions the importance of incorporating all the senses when designing nudges to prevent errors.
00:10:22 - Consistency and Medication Errors Melina discusses the importance of consistency in preventing errors, using the example of medication adherence. She explains how taking medication daily and at a consistent time can help reduce the likelihood of forgetting. Melina also mentions the use of placebo weeks in birth control pills and the recommendation to take weekly medication on Sundays.
00:15:22 - The Power of Strategic Foresight Strategic foresight allows businesses to anticipate and solve errors before they happen, creating a strong reputation for problem-solving and customer service.
00:16:44 - Empowering Employees to Make It Right Giving employees the authority to rectify mistakes on the spot, such as offering compensation or going above and beyond, creates a culture of exceptional customer service.
00:18:07 - Going Above and Beyond The Ritz Carlton is a prime example of a company that empowers its staff to do whatever it takes to make things right for customers, creating a sense of trust and loyalty.
00:20:36 - Anticipating Errors By understanding the busy and overwhelmed state of customers and staff, businesses can implement nudges to help prevent errors and alleviate stress.
00:23:34 - Adding Value to Processes By considering the needs and potential errors of customers and staff, businesses can enhance processes by adding helpful features, such as including batteries or recommended add-ons with products.
00:31:42 - Gmail's Nudge Feature Gmail's nudge feature helps users stay on top of their emails by putting important emails back at the top of the inbox after a few days of inactivity. This nudge includes a message in a different color text, like orange, that prompts the user to follow up on the email.
00:32:41 - Hot State and Cold State Understanding the concept of a hot state and a cold state is essential in behavioral economics. In a hot state, people are more likely to make impulsive decisions and struggle to stick to commitments they made in a cold state. Strategies like self-exclusion lists for gamblers and using Dysulfram for alcoholics can help individuals stay on track even when in a hot state.
00:34:14 - Precommitment and Save More Tomorrow Precommitment strategies, like the Save More Tomorrow program, can help individuals increase their commitment to certain behaviors. For example, asking individuals to commit a percentage of their future raises to go directly into their retirement savings has led to significant increases in contributions over time.
00:35:45 - Consistency and Staying Top of Mind Consistency is crucial in business to stay top of mind with customers. Drip campaigns and regular content updates, such as blogs, podcasts, and newsletters, help remind customers of their initial interest and keep the brand in their routine.
00:37:38 - Conclusion, Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
This behavioral economics podcast episode is about memories. Specifically, it will be an overview of memory biases Last week, we took a little break from our series on “all the biases” for a behavioral economics analysis of Costco. Today, we dig into memory. This topic will be divided into three sections.
The first section is general memory stuff, then we will talk about false memories and wrap it up with some tips on how you can use these biases to help you remember things better! When we think about our brains and all the amazing things they do, much of what we are accessing are memories. This episode breaks it all down with some fun facts and cool tips about our memories that a lot of you may not know.
[03:59] When we think about our brains and all the amazing things they do, much of what we are accessing are memories.
[04:21] Most people think of our brains like a filing cabinet, but that's not how it works.
[04:36] Our memories are basically inaccurate renditions our brains tell us...and every time we access them, we change them a little.
[04:49] The more we think about something the less likely it is to be accurate. This is partially because of two biases called leveling and sharpening.
[05:00] Memories can be distorted over time when details are lost. In this process, there may be selective recollection (where you only remember, sharpen and exaggerate certain portions of the memory). Or, it can be leveled out to fit some other biases that exist and just get a little dulled over time. Both of these are constantly reinforcing each other over time.
[06:41] Our biases impact our memories and our present and future.
[06:58] Because of the self relevance effect we find it much easier to recall memories about our self or things related to ourselves.
[07:13] You are the hero of your own story, but even you don't remember your own story correctly.
[07:20] Due to the fading effect bias, our brains like to feel positive emotions more than negative ones, so the emotions tied to bad memories will fade quicker than the emotions tied to positive events. This is likely tied to optimism bias and our ability to persevere through hardship.
[07:54] Because of reminiscence bump, people do not remember things from all times of their life equally. Instead, people will have memories and be able to recall more personal events from happenings in early adulthood and adolescence than from any other time in their life.
[08:35] We remember some time periods better than others, some items from years and years ago are able to be recalled “like it was yesterday.”
[08:55] Due to the telescoping effect, we tend to think of recent events as being further back in time, and those which happened longer ago are placed more recent in our minds.
[09:14] The peak end rule – where experiences are not about the sum of that entire experience over time. Instead, it is about how it was at its peak and how it ended.
[10:12] If something bad happened, it might be worth putting in some effort to make sure that is not the last experience and instead have it be a midpoint negative item if you can, that becomes outweighed by some very positive peaks over time.
[11:05] The tip of the tongue phenomenon. I am sure you have had this frustrating experience at least once – when you can almost remember something…and the word or phrase or moment or name of that movie is “on the tip of your tongue” – right? This is thought to happen due to blocking, when multiple memories that are similar to each other are being called upon at the same time.
[12:23] A false memory is when we accidentally think something we imagined really happened, and misattribute it as a memory.
[12:55] Think about selling – confidence is key to selling. Try and imagine what it would be like if you had done this successfully already, think through the whole memory to help make it as real as possible. When you believe it, that could make future selling easier.
[14:02] Our brains are powerful, but they are easily manipulated too.
[14:40] The illusion of truth effect. Essentially, people are more likely to believe something they have heard before – or are familiar with – than something they have never heard before (or are unfamiliar with).
[15:25] The opposite of a false memory is called cryptomnesia – when a real memory is mistaken as imagination because there is not the proper subjective experience of it being a memory.
[16:54] We kind of smooth and average things out. This is why we tend to remember high values, likelihoods and probabilities as lower than they were, and low ones as higher. This is known as the conservatism or regressive bias.
[17:39] You remember something that took a long time as not being as much as it really was, and because you are optimistic you will do even better the next time, you severely underestimate how long it will take.
[18:12] HOW TO REMEMBER THINGS BETTER
[20:04] Don't bog down your consciousness with stuff that can be found easily. Make room for other stuff that can't be found easily.
[20:35] Repeated exposure over a long period of time is better than cramming it all in last minute.
[21:12] It's easier to remember something in the right context.
[22:23] It's easier to remember happy memories when you're happy and sad memories when you're sad.
[23:24] Repeating information out loud can help you remember it this is called the generation effect.
[24:38] Having the general message should be enough to help you remember.
[26:13] Note cards with images could help you remember.
[27:35] Stuff that takes longer to read and process is easier to remember.
[29:12] Put the most important things on the list at the end. This is because of the modality effect.
[30:21] In networking situations or in meetings…are you always waiting for someone to take a breath or pause so you can speak? That is a sign you aren’t really listening to others when they speak, because you are creating a next in line effect all the time.
[30:48] Being a good listener is key to building relationships in life and business.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
406. Why We Buy w/ Patrick Fagan (Refreshed Episode)
00:42:38
In episode 406 of The Brainy Business podcast, behavioral scientist Patrick Fagan shares insights on the psychology of effective messaging in marketing, drawing from his extensive research and book "Hooked." Fagan's expertise lies in understanding and influencing consumer behavior, utilizing behavioral science to uncover the impact of environmental cues, social media, and psychological segmentation on decision-making processes.
Through his studies on background noises, Facebook psychology, and segmentation for a supplements brand, Fagan demonstrates the practical applications of behavioral science in marketing. His framework for effective messaging, encompassing attention-grabbing, engagement, and behavior nudges, offers actionable strategies for businesses to tailor messages to different audience segments. By listening to this episode, small business owners and marketers can gain valuable insights into consumer behavior, environmental cues, and ethical messaging strategies, empowering them to enhance consumer engagement and influence purchasing decisions effectively.
In this episode:
Understand the psychology of online shopping to optimize your e-commerce strategy.
Boost self-esteem with insights into the impact of social media on mental well-being.
Utilize behavioral science to craft compelling marketing campaigns that resonate with consumers.
Harness the influence of background noise to enhance consumer decision-making processes.
Implement effective message engagement strategies to maximize advertising impact.
Show Notes:
00:00:00 - Introduction Melina introduces Patrick Fagan, author of #Hooked, and discusses the intentionality of marketing messaging in the book.
00:02:13 - Patrick's Background in Behavioral Science Patrick shares his background in behavioral science, including his research on music priming for online shopping and the effects of background noises on purchasing behavior.
00:07:15 - Facebook Psychology and Facial Expressions Patrick discusses his research on Facebook psychology, which found that the platform can impact self-esteem and loneliness. He also shares insights on using facial expressions to measure engagement and boredom.
00:10:23 - Current Projects and Interests Patrick shares his current interest in understanding behavior and influence, focusing on psychology and behavior segmentation. He highlights a recent segmentation project for a supplements brand, which identified five different types of people with respect to health and nutrition.
00:14:43 - Conclusion and Future Focus Patrick emphasizes his passion for understanding people's behavior and motivation, highlighting the importance of psychology and behavior segmentation over traditional demographics and attitudes. He expresses excitement for future projects in this area.
00:15:13 - Understanding Different Motivations Patrick discusses the different motivations people have for health and fitness, including diet, appearance, achievement, and reassurance. He highlights the importance of tailoring messages to different groups based on their motivations.
00:21:43 - The Power of Habits Patrick and Melina delve into the influence of habits on behavior, particularly in the context of fitness. They discuss how habits can impact people's reasons for exercising and how triggers can influence their decision to engage in physical activity.
00:24:44 - Traditionalism and Progressivism Patrick shares his research on traditionalism and progressivism, revealing that a significant proportion of people are motivated by a desire to return to the past rather than just conserving or progressing. He discusses the implications of this finding for businesses in terms of messaging and branding.
00:27:53 - Applying Psychology to Marketing Patrick and Melina explore how businesses can utilize psychological insights to tailor their marketing strategies. They discuss the importance of understanding customer mindsets and motivations, and how businesses can use this knowledge to communicate effectively with their target audience.
00:29:45 - The Three Steps of Effective Messaging Patrick outlines the three crucial steps for creating effective messages: grabbing attention, engaging the audience, and nudging behavior. He emphasizes the significance of understanding the brain's response to certain stimuli and leveraging this knowledge in crafting compelling messages.
00:30:14 - Attention-Grabbing Factors Patrick discusses the importance of paying attention to things like kids, faces, emotions, surprise, and personal elements in grabbing attention.
00:31:58 - Engaging Emotionally Engaging people through curiosity, stories, and fluency is discussed. Using puzzles, riddles, and stories can help people engage and remember information more effectively.
00:34:06 - Nudging Behavior Patrick talks about the use of priming, memory, motivation, and relevance to nudge behavior. Emotions and relevance play a significant role in motivating people to act.
00:36:45 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
131. The BIG Effects of Small Behavior Changes in Business, an Interview with Jez Groom and April Vellacott, coauthors of Ripple
00:50:39
Today I am very pleased to introduce you to Jez Groom and April Vellacott, coauthors of the book Ripple: The big effects of small behaviour changes in business. Jez and April work together at Cowry Consulting in the UK, which he founded in 2015. Cowry incorporates behavioral science into recommendations for all sorts of clients, including one fascinating study you’ll hear about today where they made workplaces safer by painting the walls pink!
During the conversation, we talk about all sorts of concepts, like nudges, anchoring, framing, loss aversion, priming, and more.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
Show Notes:
[00:41] I am very pleased to introduce you to Jez Groom and April Vellacott, coauthors of the bookRipple: The big effects of small behaviour changes in business.
[03:07] April studied psychology for her undergrad. She has always been very interested in the way people around her behaved.
[04:23] April discusses her thesis on using behavioral science in cybersecurity.
[06:56] Jez has done some amazing things in his second career of behavioral science.
[08:01] Jez has always been an entrepreneur and he can’t wait to see the next wave of behavioral science.
[09:59] Jez is excited for more behavioral science applications and studies, as well as diversity in behavioral science.
[11:11] Behavioral science shouldn’t be exclusive. They are going to be campaigning in small territories to start their own programs and studies.
[14:01] April shares about the Preventing Falls with Pink Walls study.
[15:55] The team went to the construction site to help nudge them to be safer. One tactic was painting the walls pink.
[18:07] There was a huge shift in behavior after they implemented their changes including a reward system.
[18:57] If you are a hard-core behavioral scientist, it is crazy to do three interventions all at once, but they only had one shot to change the behavior so they had to take the risk.
[20:50] It is worth the risk when making affordable changes that can have a huge increase in health and safety.
[23:32] The interventions don’t always work across the board, but it is the ideas behind the interventions that matter for future projects.
[24:25]Ripplewalks anyone who is working in business or interested in applying behavioral science through the steps to get started. The first step is convincing other people in your organization that behavioral science is an amazing tool that applies to them and your business.
[25:54] No matter where you are in your journey or the size of your business,Rippleis full of practical tips for getting started.
[26:15] There are some interventions that capture your attention because they are counterintuitive.
[27:21] The objective of behavioral science should be to change behavior for the better.
[28:13] Jez shares about his favorite intervention they discuss in the book from their research in South Africa.
[31:11] In South Africa they were working with a store and trying to get people to buy their first sim card from them.
[33:04] We should celebrate the simple more. Many instances can be conveyed in simple terms and that doesn’t mean they are any less genius.
[36:01] Simplicity is very important.
[38:34] “If you can’t explain it simply, you don’t understand it well enough.” - Albert Einstein
[39:29] April shares the process they used for writing the book.
[41:22] Some people are really good at saying what they want to say, but others are really good at writing their thoughts down.
[43:20] We are moving on to the next era in behavioral science. We are trying to figure out a better system of codification of what behavioral science looks like.
[44:57] Complexity and too much information is a huge problem for financial services.
[48:30]Melina’s closing reflections.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
56. Mental Accounting: How To Make Your Money Math Work For You: A Behavioral Economics Foundations Episode
00:46:40
Hopefully, you tuned in last week for the special anniversary episode, where I went over the top episodes by downloads, your votes and some of my favorites. I also gave some of my book recommendations and a sneak peek behind the scenes with the top questions I get asked, the weird thing I hear all the time now…and so much more.
Today, we are back into the swing of things with a behavioral economics foundations episode on mental accounting. This concept was mentioned briefly in the biases series, but today we are going to dig into what this really is and just how much it impacts our approach to money, risk, time and more.
[05:02] The concept of mental accounting was introduced by nobel prize winner Richard Thaler, and is based on humans’ illogical approach to value in relative terms instead of looking at it as an absolute.
[05:31] Three examples by Richard Thaler of mental accounting.
[07:41] These are all examples of the way that mental accounting can impact the decisions we make.
[08:17] Money and accounts should be perfectly fungible (that is an economics term for interchangeable). It shouldn’t matter if money was in a savings account, or a checking account or your pocket or a 401k…it would all exchange exactly the same.
[09:32] Our brain segregates when thinking about money. This is one of the reasons the field of behavioral economics was needed…traditional economics does not account for the importance of this phenomenon.
[10:10] The three ways money is commonly labeled: expenses are grouped into budgets like food, rent, and entertainment. Wealth is separated into accounts (checking, emergency or “rainy day” funds, and retirement). And lastly income is looked at in categories: namely regular or windfall.
[12:35] Much like regular accounting, in mental accounting, individuals will book and post any occurring or planned transactions to the mental account.
[15:59] When businesses are reporting their year-end earnings and losses, they always want to have a positive year end, which could make it tempting to hold on to losses until the next year.
[16:42] If you are looking like you are going to have a bad year and have no option but to take a loss, general wisdom is to throw in as much negative and expense as you can. If it is going to be negative, might as well have it all come in at once. (Known as “taking the big bath”)
[17:13] Adding a small amount to an already large payment doesn’t feel the same as having that payment on its own. This is because of decoupling – where you remove the pain of the payment away from the joy of the purchase.
[18:28] There are some times where people significantly prefer to prepay over delaying their payments. Vacations are enjoyed more when they are prepaid because they feel free.
[24:10] The way the consumer uses their mental accounting transforms something that can be very expensive hobby (like wine collecting) into one that is seen as free.
[25:24] People can and often do plan for expenses in one way and experience it completely differently in the moment.
[26:57] Internalize how the brain is wired to make its decisions around mental accounting. Think about how this has impacted you and how it can impact your customers.
[27:52] Expenses are thought about in budgets, and wealth is considered in accounts.
[28:03] The most tempting and easiest accounts to spend from are the current assets, this is your checking account and physical cash.
[28:13] It's less tempting to spend from the current wealth category, which is made up of other liquid assets – savings accounts, stocks, bonds, and mutual funds.
[28:33] The next, even less tempting category is equity (like that in a home or car you own). Future income is the least tempting category. These are your retirement accounts.
[29:27] Those who have issues with self control should set up accounts that are off limits and put together automatic transfers so they are not tempted.
[31:03] An example of losing a movie ticket and losing $10 that shows when the loss is associated with the outing to the movies, it is aversive, but when it is not associated with the outing, it is still annoying, but doesn’t impact the mental account for the movie.
[31:22] Money that you earn in your paycheck is considered different than money you win in the lottery or find on the ground.
[32:58] How will the mental account allocation impact the way the gift is used? And how does that line up with the intention behind the gift?
[35:54] While losses should be lumped together, gains should be separated out to really feel their value - don’t wrap all the Christmas presents in one box.
[36:26] Brands can use mental accounting to their advantage in the way they advertise products. How can you use this frame on mental accounting in your business?
[37:03] Mental accounting impacts more than money.
[39:43] Context is important in the way that people react.
[42:53] Being aware of how the sausage is made can impact your enjoyment of it. Keep this in mind when you present pricing to customers.
[43:10] One other scarce resource impacted by mental accounting is time.
[43:41] Labeling time as only in the “family time” account makes it so “work time” isn’t even in the consideration of what to do on Saturday morning.
[45:20] Are there times where you are wasting high value productive time? Take a step back and think about how you could better allocate your mental time account.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
It is amazing to realize that we have been together now for 100 episodes and that by the time this comes out there will be more than 180,000 downloads in over 150 countries.
It is a significant understatement to say that the podcast has far exceeded my expectations for what it could be, and leading up to this milestone I have been reflecting a lot and trying to decide the best way to approach this important episode. I thought about doing 100 small tips and insights for 100 episodes (which would have been a very rapid-fire hour to be sure!)
But, in the end, I have decided to boil that into the one really big thing that has set me and The Brainy Business apart. Looking back on these 100 episodes and the success I’ve seen in the podcast (knowing there is always a lot of opportunity to be better and do more) but relative to the “average” podcast, this one does significantly better, and there are many things I have done intentionally and because they are my natural style to help support that.
And, that is what I am going to try and articulate for you in this episode, with the hopes that it can bring some increased success for you as well – in whatever corner of the world you may be listening from.
This episode includes a lot of stories from my life and experiences that come together over time to show what I think is at the root of the success of the show and the business.
[02:30] The US still has the most downloads by far, followed by the UK, Canada, Australia and India, which have been in the top for some time.
[03:03] California is the state with the most downloads.
[05:49] I have always been pretty confident in my abilities and generally stubborn, which has culminated in me having big dreams and ambitions that I expect will work themselves out.
[08:13] As legend goes, in 4th grade I walked to my teacher’s desk and politely explained that I was sure the assignment had been turned in and asked if I could go through the files to find it. She said yes, I went to the filing cabinet, found the missing assignment, got my grade changed to a 10 out of 10, and went on my merry way.
[08:55] I am a classically trained opera singer and have done a lot of national anthems over the years.
[10:05] These stories from my childhood showcase some very important characteristics about me, my style, and my nature which have carried into my work and helped to make my business successful.
[11:42] I am proud to wear my bossy pants every day and have been my whole life.
[13:32] I believe it is important when you are marketing things to understand how everything works and the business comes together, from the warehouse to the sales floor. (With a story of my worst job ever!)
[14:52] At the root of all this is a common thread that has carried into The Brainy Business. I believe I will be successful, even if something doesn’t work out. Even when something goes wrong I just assume it isn’t the end and that it will all work out for me in time. (A lesson from the peak-end rule)
[15:51] Networking skills and genuine interest in people have also worked to my advantage in building my career.
[16:37] When it came time to start the podcast, having the confidence in myself to know I could do it when I had to go out on a limb was scary, but exciting, and I looked at the silver lining.
[18:18] This business is me. I own it and am confident in its potential just like I was as a 5 year old who wouldn’t misspell my name.
[18:44] Every email, Linkedin connection, Twitter conversation, in person meeting after speaking at an event or person I happen to be seated next to at a conference is an opportunity to learn and engage.
[20:01] I have dedicated time each week to have conversations with people who are looking to pursue careers or study behavioral economics or behavioral science to help them feel comfortable in the choices they make.
[20:36] The story about how taking the extra step when responding to an email led to a relationship that blossomed with the Human Behavior Lab at Texas A&M University.
[23:24] Some people suggest concepts or topics, and then I get to give them a shout out when I cover that topic and it keeps everything moving up in a virtuous cycle.
[23:54] Most podcasts don’t make money. A lot of them cost businesses money in fact, but The Brainy Business has allowed me to have some amazing connections and clients and be profitable early on.
[25:29] Genuine interest in people, and a willingness to give the gift of time to have conversations that may never be more than just a few moments of interaction, but could turn into something amazing.
[26:32] Whatever your vision is for the future, whatever you see for yourself, what you think the top of the mountain is, the place where you think you will say that you “made it,” that thing out there that you think is a big deal - you aren’t thinking big enough.
[28:57] THE ULTIMATE LESSON: Be open to the possibilities of tomorrow, be generous and kind with your time and confident in your abilities. And, of course, be thoughtful in all you do. You are bigger than you can possibly imagine and you will do great things, I’m here to cheer you on, and if you haven’t reached out and connected yet, please do.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
439. Behavioral Science at Scale: William Mailer on Banking Innovations
00:46:38
In episode 439 of The Brainy Business podcast, Melina Palmer welcomes William Mailer, Chief Behavioral Scientist at Commonwealth Bank of Australia, to discuss the intersection of behavioral science and financial well-being. William, who leads the bank's Behavioral Science Center of Excellence, shares insights on how his multidisciplinary team of economists, psychologists, and data scientists work to improve financial well-being and climate action outcomes for millions of Australians. The episode explores the innovative projects led by Will’s team, including Benefits Finder, which has connected Australians to over $1.2 billion in government benefits.
Will also explores his journey into behavioral science, starting from his early career in economics and various roles that focused on understanding human behavior. He provides valuable advice on building a behavioral science team within an organization, emphasizing the importance of establishing relationships with academic researchers and thinking creatively to solve problems. Additionally, the episode highlights the importance of operational transparency in financial products, showcasing how showing trade-offs in credit card options can lead to higher customer retention and reduced financial distress.
In this episode:
Learn about the innovative Benefits Finder project and its impact on financial well-being in Australia.
Discover the importance of operational transparency in financial products.
Understand the criteria for selecting high-impact behavioral science projects.
Gain insights into building and leading a multidisciplinary behavioral science team.
Explore Will Mailer's journey and experiences in the field of behavioral science.
Show Notes:
00:00:00 - Introduction Melina Palmer introduces William Mailer and sets the stage for an insightful conversation on behavioral science and financial well-being.
00:02:30 - Will's Background Will shares his journey into behavioral science, including his early career in economics and roles focused on understanding human behavior.
00:10:00 - Building a Behavioral Science Team Will discusses the importance of establishing relationships with academic researchers and thinking creatively to solve problems.
00:15:45 - Benefits Finder Project Will introduces the Benefits Finder project, which has connected Australians to over $1.2 billion in government benefits.
00:25:00 - Operational Transparency in Financial Products Will explains the importance of showing trade-offs in credit card options to improve customer retention and reduce financial distress.
00:35:45 - Selecting High-Impact Projects Will shares the criteria his team uses to select high-impact behavioral science projects.
00:45:30 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
How do successful people get things done? A lot of it has to do with setting and achieving goals. A topic that isn’t always as easy as it sounds. Today’s episode is about setting, reaching and exceeding brainy goals. We all have goals, and are all optimistic that we’ll achieve them “someday,” but the truth is if you don’t set your goals up correctly, there is a good chance life will move too fast, and you won’t achieve what you’re capable of. (I’ve linked to episodes on time discounting and optimism bias that help explain why our brains are fine with “someday”.)
Everywhere you look, you’ll find advice on goal setting and tips and tools to help you achieve what you want. Success can be as simple as taking (and adhering to) the following three steps to set and achieve your brainy goals. All you have to do is 1) define your goals limiting them to no more than three. Then 2) break those large goals into small steps that will get you there, and 3) say NO to everything else, so you can focus on what really matters. Sounds easy right?
Not so fast. Our brains are wired to rebel against this simple process. (Especially, step three.) Saying NO is the hardest part, and where most humans get hung up. We want to do a little of this and a little of that…multitask…not limit ourselves. You’ve likely heard some of these tips before, but I’m adding the extra (and very important) layer of explaining WHY your brain doesn’t want to adhere to the plan to help you fight it when it rebels against you. This show will explain the way our brains react to these steps, and if you want someone to walk through the steps with you the Brainy Mindset Course (cart opens next week!) can do that.
[04:23] We all have goals, but if we don't set them up correctly, there's a good chance we won't achieve them.
[04:48] The three tips for setting and achieving brainy goals are: 1) define your goals, 2) break it down into smaller steps, and 3) say no to everything else.
[05:22] Saying no to everything else is the hardest one for humans to do.
[05:37] In a few weeks, I'm going to have author Nir Eyal on the show to talk about his new book Indistractable.
[05:51] One of my favorite insights from his book is that you can’t call something a distraction unless you know what it is distracting you FROM.
[06:07] The opposite of distraction is traction.
[07:26] When it comes to goals, you need to limit them. You cannot have 85 goals or even 10 or 5, because you can’t achieve them. It’s too much for your brain to handle.
[08:53] To limit your goals, you first need to list out every goal you would like to accomplish in the next 5, 10, or 50 years. (Use the free worksheet in from the Master Your Mindset mini-course...link below.) These are the things that you want done when they read them at your eulogy.
[09:09] List out everything you want to do and then think about how they might combine together and into an overarching goal.
[09:40] Now that everything's listed, pick three goals.
[10:51] Setting these goals can take some time but don't get caught in perfectionism or analysis paralysis. These are mindset blocks.
[11:13] Keeping you stuck is a tactic used by your brain to delay change.
[11:42] Your inclination is to have the top three be the most important, but still let goals 4-15 take up mental energy and be out in the world as things you are interested in. But they can't.
[12:16] Items 4-15 are a distraction that you should avoid at all costs.
[13:02] It's important to declare and OWN those top goals so everyone in your life knows what is most important and is on board.
[19:17] Setting three goals and then sticking to them is really hard.
[19:50] Once you know what the top three are, the next step is to break each big goal into small steps to get there.
[20:54] When it comes to the big overarching goal all of these other things are little steps to get there.
[21:55] Break the big lifetime goal into sub goals for the year.
[22:25] With tiny habits, you break your big goal into the smallest possible component, something that would be impossible to say no to.
[24:06] You can also use habit stacking to accomplish the small steps.
[24:46] Now that you have your goals, how tiny can you make the steps to reaching them?
[25:06] Every goal is reached in lots of small steps. It’s a sum of all the effort to get there, not the end result, and if you don’t plan for them, they won’t get done and you won’t challenge the status quo your brain loves and you won’t reach your goals.
[26:04] The subconscious brain is the filter that determines what your conscious gets to focus on. You need to be incredibly particular about what it sees all day to help guide the filter.
[29:21] Use reminders on your phone – set an alarm that repeats your mantra back to you or that you read. Put sticky notes on your bathroom mirror, or paint a picture that reminds you of the goal. (Master Your Mindset free mini-course has tips and a worksheet to help you with this)
[30:11] Determine what three things are important to you and shout them from the rooftops and put every single egg in their baskets. That is how you set, achieve, and exceed brainy goals.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
243. Is “The Devil You Know” Really Better? Ambiguity / Uncertainty Aversion
00:34:47
Today is all about the aversion that humans have to uncertainty and ambiguity, our fear of the unknown, and how it can cause us to choose something we are familiar with even though it may not be in our best interest. While this can often align with risk aversion, they are not the same thing, and while they do often correlate, they don’t have to.
More on that, and of course, loss aversion and inequity aversion – all the aversions – on the show today, but because this is a concept I’m guessing you’ll “get” pretty easily, there is less on the research studies (they are linked in the notes). That leaves the bulk of the episode to focus on how this applies to you in two aspects of business: internal communication and customer experience. Ready? Let’s get started.
Show Notes:
[00:43] Today is about the aversion that humans have to uncertainty and ambiguity, our fear of the unknown, and how it can cause us to choose something we are familiar with even though it may not be in our best interest.
[02:38] The most important thing to know is that we don’t like the unknown. We don’t like uncertainty in our choices and will prefer known risks over unknown risks. And also, because our brains are lazy and rely on rules of thumb, we often will avoid making complex (and not so complex) calculations.
[03:39] Consider the stock market. This can have unknown risks and so people can feel hesitant to put their money there even when the probabilities and rates of return are relatively known over time.
[05:30] As with everything, when you present information, how you talk about it matters more than what you are saying.Framethe information you present to highlight what IS known to make it easier for someone to see the positive. (Note: don’t gloss over important risks or problems. Use good judgment.)
[07:47] When you are presenting a change at work, there are so so so many variables at play, and if you leave a lot of uncertainty and ambiguity – say you share too early or in an incomplete way – there is a good chance people will rebel against that unknown future state.
[09:17] A real problem that happens a lot (and is unfathomably detrimental to change initiatives at work), is when someone is given ambiguous information and they feel the need to get their own brain relief by reducing their own mental burden (and wanting someone to help fill that void) in a way that they will find any possible way to justify telling someone (or in some cases, many someones) to cover up that uncertainty.
[11:26] As George Lowenstein proposed, “Curiosity is like an itch on the brain and we need anything we can find to scratch that itch.” When there is information to be found, we can fill the gap with learning. When there isn’t like in these scenarios, it can be gossip, fear, and doomsday-style planning for the worst, which will cause people to rebel against the potential future before it even has a chance to bloom.
[12:55] Everyone on your team needs to be trained on how to share the information and when, and make sure the message is properly framed with regard to all the ambiguous pieces that could cause people to revert to the known instead of the unknown.
[14:19] Melina shares some questions you can ask yourself to help determine when it is the right time to share information.
[15:38] Just forcing yourself to take a step back and a calming breath as you consider what is really happening can be so helpful. You may want to get out and take a walk or sleep on it or whatever else you do to gain perspective.
[18:35] Sharing too much information can cause overwhelm as well, which is stressful and creates its own avoidance, so it is about sharing the right information in the right way at the right time to the right people. Remember that “fair” isn’t always equal, and different people need to hear different information at different times.
[19:50] The early days of Covid are such a perfect case study for what happens when we feel uncertainty and a lack of control. When people feel a lack of control and like they can’t do anything to protect themselves or their families, they may strive to find control in other areas – like hoarding toilet paper. It feels like you are doing something, and can reduce some of that stress.
[21:59] Time moves differently on the two sides of a decision in ambiguous times. This presents a big communication problem and disconnect that teams need to pay attention to if they want to be effective.
[22:51] The “no update update” can be really helpful for companies. I know you want to wait until everything is perfect to share, but that rumor mill is going to be piling up in a way that is working against you and you owe it to your employees to help relieve some of that stress.
[25:30] “No update updates” can be really helpful to diffuse some pressure when there is a lot going on and things are scary on the other side of the decision, but you can’t do too many “no update updates” in a row without it starting to be a new problem…
[28:06] Let’s look at the customer experience side. We like to think people want a lot of choices and to be treated as individuals with very unique experiences. While that can be true, there is also a real issue with the ambiguity side of things if we allow ourselves to rest on the easy answer of “it’s custom.”
[29:56] When people feel uncertain, they are more likely to look to what others like them do in this situation, so testimonials, social proof, and case studies are all your friends in fighting ambiguity aversion. You don’t want or need to share all the nuts and bolts, but at least let them know that there is a process.
[32:02] You owe it to your clients and customers to take the time to make this as easy and streamlined as possible – and the benefit is it will make it easier for people to choose you and do business with you.
[32:29] Melina’s closing thoughts
[35:02] Adapting your lenses and looking from multiple angles and depths is really important to make that possible, which is why an episode like this is so valuable.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
26. Why You Actually Taste With Your Nose - On The Sense Of Taste
00:34:10
Today marks the halfway point in our series on the five senses – we have already talked about sight and smell…and today we are digging into taste. Smell and taste are closely linked so be sure and listen to last week's episode about the sense of smell. Both taste and smell use chemical receptors to the brain, and are our more primitive senses.
Smell is directly tied to the emotional center of the brain and also closely bonded to our memories. Taste is not as strong in that department, but it still has more of a link than some of the other senses. In this episode, I talk about parts of the sense of smell that are closely tied to taste. We dig into mirror neurons for the first time. In case you don't know, I explain what anosmia is and tie everything into ways to increase and improve your business.
Show Notes
[09:25] Smell and taste are closely linked together. Both use chemical receptors in the brain and are more primitive senses.
[09:50] Taste and smell are closely linked (unless you have anosmia a condition where someone loses their sense of smell).
[11:02] People who lose their sense of smell also lose the majority of their sense of taste. Why? Because taste is actually 80% smell!
[11:53] Your olfactory bulbs are bringing in the molecules that help you distinguish between all those scents to help you have a better sense of what you are tasting (and tying that to memories and emotions).
[12:41] Our tongue’s 10,000 taste buds can basically distinguish between a few categories of flavors – salty, sweet, sour, bitter and umami (which is sort of a savory flavor).
[13:11] The tongue’s taste receptors basically know if something is salty or sweet, but can’t tell the difference between the flavor of a tortilla chip or a pickle. The nose is required for that.
[13:36] We can actually taste all flavors at any area on the tongue (and some of the rest of our mouth as well).
[13:48] Taste is actually strongest around the edge of your tongue.
[13:59] “Spicy” is not a taste - it is a pain receptor.
[14:23] The little bumps you can SEE on your tongue are NOT your tastebuds! Those are called fungiform papillae and the taste buds are down between those bumps.
[15:02] The tongue absorbs molecules from the foods we eat and sends a signal to the brain, which then determines what category it falls into.
[16:25] MIRROR NEURONS These are basically what allow us to “feel” what others feel.
[17:21] The story of how scientists accidentally discovered mirror neurons in a lab in 1991.
[18:56] MIRROR NEURONS AND BRANDING
[19:44] Cleaning products used to have the face of Mr. Yuck on them.
[20:44] Using food and the sense of taste can quickly backfire on you because of mirror neurons.
[22:06] If you ARE selling food – good news! You can trigger mirror neurons all the time and use them to your advantage.
[22:28] Studies have shown that taste relies on all the other senses to create a full experience.
[22:39] Sight is important. If you have ever watched a tasting challenge on the food network you know that being able toseethe food makes a difference. The expectation of what is coming to them impacts the taste.
[24:07] Some studies have shown that taste tests for orange juice varied based on color alone.
[24:28] Think about eating a potato chip, or celery or popcorn. If you can’t hear the sound of chewing it – that satisfactory crunch – does it impact your perception of taste? You bet it does!
[25:33] Touch includes the feel in your hands as well as texture and temperature. These all impact taste.
[26:15] When it comes to taste – all the senses are involved because of the way they are processed in the brain.
[26:31] Our brains get what they expect.
[27:26] Don’t judge a book by its cover? Unfortunately, we do every day – which is one more reason brands matter.
[30:37] We know taste is greatly impacted by all the senses.
[31:32] When it comes to advertising the taste of something – incorporate all the senses if you can.
[34:01] The words you choose, images, smells, flavors, sounds, and everything else matters.
[34:52] Everything leading up to the interactions with your brand matters more than what you are selling, the price – and the taste if you have one.
[35:11] So always, always be strategic and thoughtful in everything you do.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
Last week, I talked about The Truth About Pricing, you might want to listen to that episode before we dive into today’s episode about how to sell from the stage. Both are built on the same foundation. In the truth about pricing “it’s not about the cookie,” there were five components that I talked about.
I have always loved being on stage from acting as a child to singing and improv classes. I don’t think I would be where I am today without this background. When it comes to selling from the stage, the same five components apply. I’ll be talking about these components of the scent of the cookie, free samples, perceived ownership, today only, and buy three and get one free as they apply to selling on the stage.
Show Notes
[02:28] Thanks to all of my new listeners and downloads.
[03:18] I love being on stage and grew up acting and dancing. I was also a vocalist and even competed in Opera. I am also in the Screen Actor's Guild and sang with a country band in Seattle. I also sang the National Anthem for the Seattle Mariners.
[06:30] I know how to be on stage and work with an audience.
[07:24] Being on stage is no different than selling.
[07:45] A quick recap of last week.
[07:58] How an expert at selling can get a customer drooling like Pavlov's dog where an amateur may not even be able to sell the same product.
[08:15] It's all in the delivery and in the right order. I unlocked this method in episode 5.
[11:02] How the scent of the cookies forces your conscious brain to do what the subconscious wants it to do.
[11:52] You want to build your pricing on this foundation. Even if you are selling on stage.
[12:32] Conversations are based on this concept as well. Buying and selling is not always about exchanging money.
[12:56] Next week, I will extend this scenario to change management and non-monetary conversations.
[13:29] The five components were the scent of the cookies, the free sample, perceived ownership, today only, and buy three get one free.
[14:07] A master of selling can get the audience excited about anything that they want to sell.
[15:08] The smell of the cookie flags your conscious brain. If you are a speaker, the audience is focused on you.
[16:16] Using the 80/20 rule when speaking. 80% of your sales will come from 20% of your audience.
[17:40] The scent of the cookies is the title and description of your conference.
[20:55] Have an interesting title that is different and makes people want to learn more.
[23:42] Incorporating questions into your titles and descriptions. This engages the mind differently. Use questions that will make people say yes.
[27:00] The free sample phase of public speaking is when you give your customers a taste of what it would be like to work with you.
[28:12] Perceived ownership or reminding the audience of things that are important.
[31:34] There is a delicate balance between selling and sprinkling in what it would be like to work with you.
[33:19] Today only or a special offer if you act now. This is the concept of scarcity. Watch infomercials for an example of this. They work, because they speak to the subconscious part of the brain.
[37:01] The average of people who ask for refunds is about 5%.
[37:30] Money back guarantees encourage buying and spending more.
[38:44] Buy three get one free. The brain likes things that sound better. The way you frame the message impacts with the brain hears.
[40:01] FRAMING is everything – and just as with pricing, it isn’t what you say…it is how you say it.
[40:57] Two types of public speaking. The hard pitch uses the tactics of relativity, anchoring, and adjustment.
[41:58] The informational pitch is more of a long term strategy and it is about 80% of presentations. This is the tactic I take.
[42:43] Sprinkling in additional resources that can further learning go way beyond the presentation.
[43:24] Offer the one thing that you would want your audience to do.
[44:41] In most public speaking the sale is actually a freebie that gets people into your family or on your list.
[46:35] This method in these formulas work. You can use the free worksheet to implement this strategy.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
In this episode of The Brainy Business podcast, Melina Palmer dives into the intricacies of motivation, exploring how our brains can both get and stay motivated. This episode is designed to help you understand the psychological underpinnings of motivation, including the impact of behavioral economics concepts like loss aversion, habits, and framing. Whether you're aiming for personal development or looking to integrate these insights into your business strategies, this episode has you covered.
Melina shares personal stories, including her journey with running, to illustrate the principles of intrinsic and extrinsic motivation. She also evaluates popular fitness apps like Couch to 5K and Runkeeper, discussing their effectiveness in motivating users and suggesting improvements based on behavioral science. The episode is rounded out with actionable tips for hacking your own motivation, making it a must-listen for anyone eager to achieve their goals.
In this episode:
Learn the difference between intrinsic and extrinsic motivation and how to leverage both.
Discover the role of behavioral economics in motivation, including concepts like loss aversion and framing.
Get insights into popular fitness apps and how they can either encourage or discourage motivation.
Gain actionable tips for setting and achieving your goals by understanding your brain's rules around mindset.
Explore practical examples of how to flip the script on your motivation blocks.
Show Notes:
00:00:00 - Introduction Melina introduces the episode's focus on motivation and its psychological aspects.
00:02:00 - Personal Journey Melina shares her personal story about running and how it ties into motivation.
00:06:00 - The Science of Motivation An overview of the scientific principles that drive motivation.
00:14:00 - Types of Motivation Discussion on intrinsic and extrinsic motivation, with examples from Melina's life.
00:20:00 - Case Studies Real-world examples of motivation in different contexts.
00:25:00 - Behavioral Economics Concepts Exploration of loss aversion, habits, and framing in the context of motivation.
00:32:00 - Evaluating Fitness Apps Melina evaluates Couch to 5K and Runkeeper, discussing their motivational strategies and suggesting improvements.
00:40:00 - Practical Tips Actionable tips for hacking your own motivation, including setting and limiting goals.
00:43:00 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
Fairness is a fascinating topic and one that is really important in business. We strive to have fair standards in our business practices, in how we pay our employees, and in the offers we provide to customers…but should everything always be perfectly “fair”?
Does it have to be fair? And…what the heck is “fair” anyway? Who decides what is fair? (and is that fair?) Tune in to hear all about it. You will also get to hear why fairness is like air, and what a bunch of capuchins can teach us about work (and why your employees might be ready to throw cucumbers). Listen in to learn all about inequity aversion, why it matters to business, and some tips for how to keep this from being a big problem in your work.
Show Notes:
[00:40] Today we are digging in on inequity aversion – which is featured in chapter 12 of my new book,What Your Employees Need And Can’t Tell You, titled “That’s Not Fair!”
[02:32] Inequity aversion is a pretty easy concept on the surface. We want things to be equal (unless we are the ones getting the benefits…then we tend to be a little more lax in our demands for equality, right?)
[03:19] I want to point out that fair and equal are not the same, and furthermore, equality is not the same as equity – remember this isinequityaversion, notinequalityaversion. Equality means that everyone is given the same resources and opportunities. Equity recognizes that not everyone has the same circumstances and therefore provides resources in a way that can help receive an equal outcome.
[06:02] What is “fair” and who gets to decide? One of my favorite quotes on this is from Mathew Liebermann who said, “Fairness seems a bit like air—its absence is a lot more noticeable than its presence.”
[08:22] When we realize we aren’t being treated or paid fairly – or even if we just suspect that something isn’t fair everything else can come to a grinding halt.
[11:25] According to a Bloomberg article and research by Joblist of 15,000 workers who quit during this time, 40% said the job market was more difficult than they expected, 20% miss people at their old company (and many of them didn’t think that was going to impact them as much as it did), 17% said their new job is not what they hoped for, 16% realized their old job was better than they realized, and 9% have found themselves in a company with bad culture and management. 14% of those surveyed who had quit their jobs said they regretted it.
[14:01] One thing we do know is that we pretty universally dislike and reject things that are unfair, the problem (as you are seeing here) is that what is fair is relative.
[16:54] This brings up another interesting facet of inequity aversion – because we hate the inequitable, unfair and unequal, we will sometimes put ourselves in harm's way or give ourselves a worse outcome to keep someone else from getting an even better one.
[19:07] A perceived slight from years back could combine with confirmation bias and the focusing illusion so one employee is sabotaging themselves and your team to keep someone in their or another department from “winning” anything.
[21:00] Whenever there is a question of fairness, motivation will tank. We become distracted and disengaged regardless of whether we are intrinsically or extrinsically motivated. Incentives and motivation are so important when we think about job performance.
[22:01] When it comes to our aversion to inequity, the best thing to do is to make sure your practices and policies (whether it is pay or anything else) are, of course, fair, and equitable to begin with.
[23:37] Remember, of course, that something may not be equal and still be fair and equitable.
[24:52] Start by asking what you are trying to achieve.
[26:12] Next, what are your priorities?
[28:04] Understanding the why behind the decision is really important. Some people might still feel slighted, but that is ok you just need to align that with your priorities and the different groups you are working with.
[29:18] You have to be looking for the worst way this could be interpreted and what you might have missed.Whoaren’t you thinking about?Whataren’t you thinking about?Do not skip this step.
[30:01] Don’t rush something out and expect people will give you the benefit of the doubt–it doesn’t often work that way.
[30:50] Be as open, clear and transparent as you can be with as much as you can. This doesn’t mean you need to publicize how much everyone makes, but you can explain what the wage bands are for each role and why, or if there is an algorithm to determine who gets a bonus or what their base level salary will be or where the cap is, make that publicly known.
[32:06] Once you can make it equitable, explainable, AND transparent, it allows the focus to come off of the external motivations and incentives (those grapes and cucumbers) and focus instead on the purpose of their work and hopefully doing a job they love. Everything becomes easier when people aren’t concerned about fairness, inequality, or inequity.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
126. The Most Important Step in Applying Behavioral Economics: Understanding the Problem
00:25:18
While researching for my book (which will be coming out in May 2021!) I had the joy of speaking with several dozen amazing people working in applied behavioral science and behavioral economics. People from around the world doing such cool things, wonderful research projects, and so much I’m excited to share with you. You have already been hearing from a lot of them throughout the most recent interviews on the show, and they continue into 2021.
One thing that I found from interviewing so many people about their work is that even when there are different frameworks/names for the approach/unique models for applying behavioral science, most everyone agrees on one thing: where most businesses or entities go wrong is at the very beginning.
When you are trying to solve a problem (or want to apply behavioral economics to nudge behavior or help people make better decisions), many of the projects fail or don’t get off the ground because there isn’t enough time spent identifying the real problem.
This first crucial step is what we are going to be talking about today, to help you as you think about applying behavioral economics in your own business, and I’ll share some of the same tips I give to my own clients and students in this process (and, also, this is a sneak peek into some of what you’ll find in my book…which I am absolutely bursting to be able to give you all the details about…but I have to wait a little longer…soon!)
Alright...let’s talk about that most important step in applying behavioral economics: Identifying the problem.
Show Notes:
[01:51] Today I am going to discuss the importance of understanding the problem–the first crucial step when applying behavioral economics in your own business.
[04:23] It is really easy to find the right answer to the wrong question. When you don't invest enough in finding the rightquestion, you end up putting a lot of effort, time, money, and other resources into fixing something that isn’t going to actually get at the root of the behavior.
[05:47] I’ve talked about questionstorming several times on the show before (you all know how much I love questions!) Great questions are AMAZINGLY powerful, and in general, people don’t spend enough time asking questions.
[07:44] The people who change the world think longer about the problem before they start fixing them. If you want to make change happen and do amazing things, one of the best ways to do that is to spend more time thinking about problems instead of just accepting the first or second thing you think is wrong.
[10:07] Revisiting how The Littery proved that their incorporation of behavioral economics and working with the brain got people to willingly throw away and properly sort their garbage.
[11:59] Change doesn’t have to be hard. Changing the natural rules of the subconscious brain that have been developing for generations is hard. Understanding them and working with those habits can make it so seemingly insurmountable changes become easy.
[13:04] When you use your conscious brain to try to explain to people how they should change their habitual behavior within the subconscious, logic isn’t gonna do it. You need to understand what DOES motivate people, like a lottery, and incorporate it into the behavior so it is easy for them to change.
[14:34] By taking a step back and really thinking about the way the brain works and how to align with it you are able to make it so change is much easier than it seems on the surface.
[16:36] Being curious and asking good questions allows me to appeal to the subconscious brain. I can learn about the situation while helping them feel valued and involved in the process. Taking those few extra moments to understand the problem makes all the difference.
[17:21] Even when someone asks you explicitly for something, or you are sure you know the root of a problem, it can usually benefit from a little more thoughtfulness.
[18:42] When you consider the problem in a vacuum or assume the problem you see is the only true problem, you will often end up finding that right answer to the wrong question.
[20:13] Simple changes can make a huge difference in adoption and satisfaction when you take the time to fully evaluate and understand the problem.
[22:51] Give yourself permission to spend longer thinking about problems. Reflect on them, ask questions, and poke holes in them.
[24:15]For now, just focus on finding one thing a daywhere you can challenge an existing belief or problem.
[24:46] Don’t forget to take advantage of theyear-end salegoing on now.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
396. Reflecting on the Past: The Reality of Hindsight Bias (Refreshed Episode)
00:23:09
In Episode 396 of The Brainy Business podcast, host Melina Palmer explores the intriguing world of memory reliability and the common misconceptions that alter our perception of past events. Melina delves into how our brains often mislead us into thinking we understood or predicted outcomes that were, in fact, unforeseeable. With insights into cognitive biases like leveling, sharpening, and survivorship bias, this episode uncovers how these mental processes distort our understanding of reality and influence business and personal decisions.
Drawing from vivid examples and thoughtful analysis, Melina offers practical strategies to combat hindsight bias and enhance decision-making clarity. Whether you're reflecting on past business strategies or personal experiences, this episode provides valuable lessons on the importance of questioning our instincts and memories. Tune in to learn how to navigate your reflections with greater accuracy and less bias, preparing you for better outcomes in future endeavors.
In this episode:
Gain insights into the impact of hindsight bias on decision-making and how to mitigate its effects.
Understand the influence of memories on business choices and learn strategies to harness this influence for better decision-making.
Explore the hidden dangers of survivorship bias and its implications for strategic planning, along with methods to counteract its effects.
Acquire effective techniques to combat hindsight bias and enhance the quality of decision-making processes.
Discover the critical importance of pre-mortem analysis in decision-making and how it can revolutionize strategic planning.
Show Notes:
00:00:00 - Introduction Melina welcomes listeners to the Brainy Business podcast and introduces the topic of hindsight bias, reflecting on past decisions and events with a biased perspective.
00:03:08 - The Nature of Memories Melina discusses the inaccuracy of memories, how they can be distorted over time, and the impact of biases like leveling and sharpening on memory recollection.
00:05:03 - Survivorship Bias The concept of survivorship bias is explained through the story of planes in World War Two, highlighting the importance of considering missing data and the potential impact on decision-making.
00:07:53 - Overconfidence and Cognitive Dissonance Melina delves into the overconfidence that arises from hindsight bias, how people often claim to have known outcomes all along, and the role of cognitive dissonance in justifying past beliefs.
00:12:59 - Tips for Combating Hindsight Bias Melina provides three practical tips for combating hindsight bias, including being comfortable admitting surprise, taking notes beforehand, and considering alternative outcomes when reviewing past events.
00:15:44 - Overcoming Hindsight Bias Melina discusses the importance of doing thorough analysis before making decisions and the value of admitting when you don't know the answer.
00:16:58 - Taking Notes and Evaluating Decisions Melina emphasizes the importance of writing down suspicions or ideas before making a decision, as well as evaluating the decision-making process in a post-mortem.
00:17:40 - Reviewing What Happened and Considering Other Outcomes Melina encourages thinking through alternative outcomes and considering the possibility of missing information when reviewing past decisions.
00:18:44 - Avoiding Overconfidence and Generalization Melina advises against putting too much weight on finding the exact answer and using it as a general rule for future decisions. Context matters and overconfidence can be detrimental.
00:20:27 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.
This week marks the halfway point in our episodes on the types of NUDGES. We have already covered incentives and understanding mapping. Today, is all about defaults within choice architecture. When you think about choice and defaults, you may think it only applies when there is a preselected option on a list, but this is not the case. In every choice there is always a default. In many cases, the default is to do nothing…and that is still a choice, which is important for many choice architects to remember.
I won’t be talking too much about what a default is, but I will talk about how what I’m calling “implied defaults” can be incredibly helpful when they are used strategically. I’ll also talk about how customers appreciate them and how they can benefit the company using them. In this behavioral economics podcast, I also go over how defaults can apply to the air conditioning example I have been using and how this concept can be applied to your company or service and how it can even help you save money.
[03:03] In every choice there is always a default. In many cases, the default is to do nothing…and that is still a choice, which is important for many choice architects to remember.
[03:32] When you are constructing a choice for someone, it is important to remember what their default is and how status quo bias will influence the default.
[04:19] Air conditioning example. The default is to do nothing.
[05:09] The company should make it easier for their customer to overcome this default hurdle.
[07:34] The unit size we need is based on things that are already known…but they choose not to mention any numbers at all until you are deep into the process.
[07:43] This is a mistake because first, there is no anchor. When there isn't an anchor the anchor is zero. This is a terrible place to start.
[08:12] Sticker shock is created when people actually hear the cost.
[09:24] When thinking about defaults in choices, it is important to realize that each complete choice can be broken down into a bunch of mini choices, and each one has its own default.
[09:58] When the choice is presented, it can be properly worded to help nudge to a different default than nothing.
[10:50] The default when quoting pricing for AC could and should be for the monthly payment of a loan instead of the bulk cost.
[12:05] I give an example of where I move the default option in the offer from “not getting air conditioning” (the true default) to getting AC on a 24 month loan (the implied default). This is the power of framing.
[13:09] How does a company choose and understand what they should use as their default?
[13:28] Understanding incentives and how they impact the business is very important when choosing a default.
[16:55] Carrie Clarke of Next Level Coaching does a great job framing with, “The ROI on coaching is 700% and you will reach your goals 9 times faster than trying to do it alone.”
[18:28] Printing receipts is an example where defaults can cost a business money.
[19:52] The city of Tulsa, Oklahoma reportedly switched all their printers to default to double-sided printing, which they estimated saved them more than $41,000 a year in unnecessary expense.
[20:39] Our default as humans is often to eat food in front of us and mindless eating can be a problem. If the default plate is smaller, you will put less on the plate and often realize you are full earlier.
[21:51] Not defaulting to adding straws and napkins to orders can reduce waste.
[22:24] An Amazon subscription example, which used a default.
[26:01] Think about your business. Do you have a product or service that people buy regularly?
[26:38] An opt in versus opt out can have a huge impact on choice.
[28:05] Where do you have opt ins versus opt outs in your business? Are there any features people have to opt in for that would actually be best for them and increase your profitability?
[30:13] Think about what your customers want and what will benefit them and what's going to benefit the business before you set up that default.
[31:03] GAP insurance is usually an add on which is a hard sell. The advice I would give is to bundle it with the initial quote and clients can opt out if they want.
[33:46] Defaults are a powerful and very simple nudge to apply. When used responsibly, defaults are great and often appreciated by customers.
[36:27] Implied defaults can be incredibly helpful when they are used strategically. Customers appreciate them and they can benefit the company using them.
Thanks for listening. Don’t forget to subscribe onApple Podcastsor Android. If you like what you heard, please leave areview on iTunesand share what you liked about the show.
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