Do you ever find yourself confused by the actions your customers (or would be customers) behave?
Have you ever found yourself asking, “Why would they possibly do that?” or “Why didn’t they buy?” or “Why didn’t I get more clicks?” or “How can I get more people to sign up for (and then open) my emails?”
If you answered yes to any of those questions above…you’re normal!
And, I am happy to say that reading this article will help you.
Most people have not heard the term “behavioral economics” – yet. I know it sounds kinda boring, but I promise you it is beyond fascinating.
When I am speaking on the topic, I like to say “If traditional economics and psychology had a baby… you would have behavioral economics.”
In a nutshell: Behavioral Economics (BE) is the study of why people buy. (and why they don’t)
The field came about because traditional economics had a problem…it assumed rational people make logical decisions. Unfortunately, that is not the world we live in, and so economic models are generally bad at predicting behavior.
While people are not logical, they are predictable. Understanding those concepts and trends of how the brain works (and how people will make decisions) is the study of behavioral economics.
In my work, I get to dig into research studies about the brain and behavior, which I absolutely love. And, because it is a really new field, I also get to design studies (I currently have one running with a credit union in Portland, which is attempting to help people to save without the use of matching funds).
Your customers are essentially zombies.
Did you know that 99% of buying behavior is done on a subconscious level? Yes, you read that right. 99%. (I have seen a study as high as 99.999% and the lowest I have seen is 95%, which I can provide to you if you are interested in digging into the research.)
So, what does that mean for you and your business?
If you were going to sit down and plan a promotion, or product, or your brand, or lead magnet, or advertising campaign, or (you get the picture) what part of your brain do you think you are using?
That’s right: your conscious brain.
But that is not how people buy.
If you find yourself saying “should” a lot (i.e. “people should buy this!” or “everyone should want to download this…” (and were then surprised when they didn’t) this is why.
People do not do what they “should” do. Instead, they listen to their subconscious brain (which is driven by visuals and strange rules of thumb that often seem to make no sense).
You may find yourself thinking, “How much difference could it really make? They will get to logic eventually, right?” or “My people will find me…anyone who doesn’t get the logic just isn’t my tribe.” I have news for you.
There are many (many) studies which show the differences a small tweak can make. For example, in one study, the change of one word (yes, one) resulted in a 38% increase in sales.
And the word is not what you would think. (But, it is something that is easy to replicate and test in your business.)
What would you do if overnight your sales increased by 38%? I know I would be pretty darn excited!
That is where I come in. I help businesses to incorporate the nuance of BE into their messaging (so you don’t have to spend years of your life studying it) to increase conversions and encourage people to buy.
If you are interested in learning how I can help you, now is a great time! All my services are 25% off if booked by June 30 and include things like a Lead Magnet Review, Product Pricing Audit or Sales Page Audit. I can also do a Virtual Strategy Session where we discuss a question or two you are struggling with, and I can help you get the confidence to move forward knowing people will buy (and why)! And, if you aren’t quite sure what you need, my 15-minute Discovery Call is always free.
I hope we get a chance to work together. It is my personal mission to help everyone’s messaging be more “brain friendly.”
Melina Palmer has been building and reimagining brands for a decade. Her fresh, new “truth” brand launch nearly tripled brand awareness for Verity Credit Union in less than two years. Melina has always been fascinated by the psychological influences behind consumer behavior, which inspired her to pursue a Masters in Behavioral Economics from The Chicago School of Professional Psychology. Her new podcast, The Brainy Business: Understanding the Psychology of Why People Buy, will launch on iTunes (and all other platforms) on July 6, 2017.