Tag Archives: behavioural economics

Behaving Badly

As a transformation strategist one of the biggest challenges I come across every week is getting planners and brand managers to shift from thinking like a brand to thinking like their intended audience. Too many briefs I see only have demographic customer profiles, which fall short when you’re planning for a digitally connected world.

To shift from broadcast to joined up storytelling, just knowing characteristics like; gender, age, marital status, geographic location, socio-economic status and so on simply isn’t enough and to make assumptions is lazy and will frankly lower your ROI.

I’m encouraging inclusion of behavioral insights, or customer modeling as it’s also known, into all the briefs and plans we’re creating with clients and here’s why:

1. Nearly every digital marketing touch-point is intended to invoke an action
2. An action is more likely to be taken if encouraged in a relevant way at the right time in a customer journey
3. A customer journey is made up of a customer behaving in a certain way
4. These behaviors are encouraged by a certain mindset at each touch-point
5. These mindsets are triggered by insights both implicit and explicit
6. Understanding what those insights are better enable us to invoke the intended action

Simple really.

Demographic profiling gives you just enough to paint picture of a typical persona in a hypothetical group of people. Behavioral profiling will give you a much higher chance of success because it’s a stronger predictor of what your relationship can be because it’s action orientated.

If you want to know more, I recommend this book; Misbehaving, written by Richard H.Thaler who pretty much invented the field of behavioral economics. It’s insightful and tells a great story. Not surprising when you think about it.

 

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Photograph: Kiyoshi Takahase Segundo/Alamy/Alamy

 

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