The psychology your campaigns are missing

This week, Phill Agnew, host of the UK's number one marketing podcast, "Nudge", joined us to break down the behavioral science shaping how consumers make decisions. Most purchases happen faster than we think, and for reasons people rarely notice.  

—Elena

 

95% of consumer decisions are made using System 1 thinking. 

That's according to Nobel laureate Daniel Kahneman's research. System 1 runs on autopilot, guided by mental shortcuts called heuristics. Marketers who understand this can design campaigns that work with the brain, not against it. 

 

What behavioral science tells us about better marketing. 

Why should marketers care about behavioral science?

Because 95% of consumer decisions run on autopilot. "System 1" thinking, which is fast, unconscious, and shortcut-driven, is the default mode of the human brain. Behavioral science reveals the specific triggers that shape those choices.

What is costly signaling?

It's the idea that the perceived cost behind your message shapes how that message is received. TV ads are valued more highly than the same ad on YouTube because viewers know TV requires a bigger investment. A handwritten thank-you note drove 86% more in additional customer spend than a printed version with the exact same words. The expense signals care.

Does being distinctive actually move the needle?

Dramatically. Psychologist Hedwig von Restorff found that items standing out from their comparison set are far more memorable. In one experiment, a single out-of-category brand was four times more memorable than the rest of the list.

Should brands ever admit weakness?

Counterintuitively, yes. Elliot Aronson's Pratfall Effect shows that showing flaws increases likability. Phill tested it himself on Reddit: an ad listing reasons not to listen to his podcast drove three times more clicks than one listing reasons to listen. Too-good-to-be-true messaging often works against you.

Listen in on our discussion.

 

“The Labor Illusion: How Operational Transparency Increases Perceived Value” 

This paper by Ryan Buell and Michael Norton, published in Management Science, found that showing people the work being done on their behalf, even in a digital interface, increases how much they value the result.

Read the study.

 

Your customers aren't thinking what you think they're thinking.

“The world makes much less sense than you think. The coherence comes mostly from the way your mind works.” 

— Daniel Kahneman, author of Thinking, Fast and Slow

This newsletter comes from the hosts of The Marketing Architects, a research-first show answering your biggest marketing questions. Find us on Apple Podcasts or wherever you listen to podcasts.