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286. Beyond 'If Only': Maximizing the Benefits of Counterfactual Thinking (Refreshed Episode) May 09, 2023

Show notes

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.

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285. Bringing Behavioral Economics to the Spanish-Speaking Community with Carlos Hoyos May 05, 2023

Show notes

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.

Let's connect:

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Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going!

Learn and Support The Brainy Business:

Check out and get your copies of Melina's Books.

Get the Books Mentioned on (or related to) this Episode:

Outsmart Your Brain, by Dan Willingham
Good Habits, Bad Habits, by Wendy Wood
Predictably Irrational, by Dan Ariely
Evolutionary Ideas, by Sam Tatam
Friction, by Roger Dooley

Connect with Carlos:

Top Recommended Next Episode: How To Set Up Your Own Experiments (ep 63)

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Brainy Bites - Melina's LinkedIn Newsletter
Behavioral Pills Website

284. What is Habit Weekly? Featuring Creator Samuel Salzer (Refreshed Episode) May 02, 2023

Show notes

In this episode of The Brainy Business podcast, host Melina Palmer interviews Samuel Salzer, founder of Habit Weekly, a newsletter that curates the latest in behavioral science research and news. Salzer discusses the importance of creating content that people actually want (imagine that!) and the value of putting good things out into the world. He also shares insights on building habits and behavior change, and how businesses can apply these principles to their marketing and customer engagement strategies. Overall, the episode highlights the power of behavioral science in shaping our daily lives and the importance of staying up-to-date with the latest research and trends.

Show Notes:

[00:40] Today's episode is a refresh of my conversation with Samuel Salzer, founder of Habit Weekly.
[02:06] It is so fun to see how much things have grown at Habit Weekly in these three years. They have a full team of people now, and they've been doing their awards for a few years as well. I was honored to have been a winner in the inaugural edition, and a finalist in multiple categories every year.
[03:29] Samuel shares about himself, his background, and how he started working in behavioral science. He has always been an entrepreneur and started his first business at 16.
[05:02] He found human decision-making fascinating.
[06:44] He wanted to learn more about what we can do to support people in making behavioral changes in their lives.
[08:42] For his work he focuses on how to scale behavioral change.
[09:56] You are succeeding if you help create value for your users and customers, understand them better, and help find a good solution for their problems.
[10:38] Whether we like it or not, behavior is quite complex. We are complex beings living in complex environments.
[13:06] Most businesses look at reducing friction in their customer journeys. Sometimes increasing friction is a good idea too.
[16:06] We are really good at creating stories and narratives in our minds to support whatever thing we really want to do.
[18:28] Just the simple shift of taking the word from reward to consequence makes it feel heavier in a way that can change behavior.
[19:39] Each individual choice matters.
[20:50] We are often trying to do things that remove a negative effect.
[23:17] The concept of "eating the frog" is doing the hard thing first.
[25:45] Samuel felt like it was hard to stay up on the content and research in the field so he started sharing links on LinkedIn.
[26:53] This eventually evolved into Habit Weekly. It's now a mailing list that sends content related to behavioral design on a weekly basis.
[28:27] You know you found something people really want if they are reaching out to you asking you to create a mailing list. It doesn't have to be difficult to start an email list if you understand what drives people.
[30:27] His goal is to make sure that anyone interested in applying behavior change has the best and latest insights every week.
[35:21] This field of behavioral science is still in the adolescent phase. In the near future, it is going to move into this more mature phase that is more about the process and learning more about applying these concepts in the best way.
[37:21] Samuel is really excited about the better understanding in the next few years of how any organization can easily start applying these concepts.
[40:17] His superpower or wish would be to see the world through other people's eyes. (Melina would like to be able to speak and read every language fluently.)
[40:58] He also loves books and movies. A really good book or movie can help show the world from someone else's perspective.
[44:44] Many businesses create content people don't want. If you start from a place of sharing, reciprocity will kick in eventually and people will appreciate what you are doing and what to give back to you one way or another.
[46:18] 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.

Let's connect:

Melina@TheBrainyBusiness.com
The Brainy Business® on Facebook
The Brainy Business on Twitter
The Brainy Business on Instagram
The Brainy Business on LinkedIn
Melina on LinkedIn
The Brainy Business on Youtube
Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going!

Other Important Links:

Brainy Bites - Melina's LinkedIn Newsletter
The Brain Science Behind Your Shopping Decisions (watch Melina's TV interview!)
Eat That Frog!: 21 Great Ways to Stop Procrastinating and Get More Done in Less Time
Habit Weekly

283. Why Every Business Needs To Care About Personal Finances, with Merle van den Akker Apr 28, 2023

Show notes

In today's conversation, I am joined by Dr. Merle van den Akker. Merle is a behavioral scientist who has recently completed a Ph.D. at the Warwick Business School, studying the effect of different payment methods on personal finance management. She decided to leave academia to apply behavioral insights in the real world and has become a behavioral science manager at a financial well-being unit in an Australian bank. She continues to research and apply behavioral science to improve financial services and consumer (financial) well-being. Next to this, Merle is a science communicator, running the blog Money on the Mind, and the MoneyPsychologist TikTok account, where she disseminates insights from the intersection of behavioral science and personal finance. Last, to not leave academia behind fully, Merle also still teaches behavioral science as well as courses on fintech developments at top Australian universities.

Merle was also a finalist for Content Person of the Year in the Habit Weekly Awards in 2022 along with myself and many other amazing content creators in the space including next week's guest who won the award last year.

In today's conversation, we are talking about personal finance – both for individuals and how it applies to any business. Stress at home can impact performance at work, and there are some ways businesses can be helping their employees feel more comfortable -- and do better work -- if they are thoughtful about personal finances and what is going on in the world around them. Even if your company doesn't believe it is impacted by inflation or the massive layoffs that have been happening recently...think again. Merle and I dig in on how social media and other availability-bias- and herding-fueled messaging is impacting everyone, and what companies can be doing to help their employees to feel more secure and less stressed.

Show Notes:

[00:42] In today's conversation, I am joined by Dr. Merle van den Akker. Merle is a behavioral scientist who has recently completed a Ph.D. at the Warwick Business School studying the effect of different payment methods on personal finance management.
[02:21] Stress at home can impact performance at work and there are some ways businesses can help their employees feel more comfortable and do better work.
[04:34] Merle shares about herself, her background, and the work she does. She runs the Money on the Mind blog, where she writes about how behavioral science applies to personal finance.
[06:42] Spending on a credit card is incredibly different than spending with cash.
[07:37] With contactless payments, people tend to spend a bit more and then they actually have a much worse recall of what they spent.
[09:32] Mental accounting is expenditure and research tracking in your head.
[11:51] It is important to ask thoughtful questions in business and research.
[14:25] You have a mental and a physical account for savings and your credit whether you are in debt or not.
[16:54] Behavioral science can contribute positively to the cost of living crisis in major ways. When people act out of fear they don't make great decisions.
[18:54] Learned helplessness is a very dangerous state to get into. You need to be able to get into a mindset where you are still able to act.
[21:50] Having too much pressure on people's time is impacting their ability to do really good, thoughtful work.
[24:28] The present bias is a very inconvenient bias and is something you should be aware of.
[27:31] As an employee, it is important to know what would and would not work and ask for that from your employer. An employer should be open and expectant to have these conversations.
[30:36] There can be more thoughtful and creative solutions for ways employers can help that don't cost them a lot of money.
[32:45] You can help be a solution for customers and employees by having this overall awareness of what is happening in the world and how that is going to be impacting behavior.
[34:09] If your brain is in overload the last thing it wants is ambiguity.
[35:42] You don't want people to act out of fear because they will make decisions that don't benefit anyone in the long run. That is something we should really try to avoid.
[37:53] Social media algorithms give you more of what you show interest in. Something may feel like it is everywhere, when in reality the algorithms are just showing it to you a lot.
[39:46] Always take the time in stressful moments to breathe and get out of that hot state to look and see what you can do differently.
[41:01] It is a win-win situation to have employees that are not just cowering under an enormous load of stress and fear and as a result being rendered almost nonfunctional.
[42:34] Melina's closing thoughts.
[43:01] If you focus on helping your people with more aspects of their lives then just what feels immediately relative to your bottom line can have really great impacts financially and otherwise.

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.

Let's connect:

Melina@TheBrainyBusiness.com
The Brainy Business® on Facebook
The Brainy Business on Twitter
The Brainy Business on Instagram
The Brainy Business on LinkedIn
Melina on LinkedIn
The Brainy Business on Youtube
Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going!

Learn and Support The Brainy Business:

Check out and get your copies of Melina's Books.

Get the Books Mentioned on (or related to) this Episode:

Nudge, by Richard Thaler and Cass Sunstein
What Your Customer Wants and Can't Tell You, by Melina Palmer
Scarcity, by Sendhil Mullainathan and Eldar Shafir
Subtract, by Leidy Klotz
The Power of Scarcity, by Mindy Weinstein

Connect with Merle:

Already Heard That One? Try These:

Other Important Links:

Brainy Bites - Melina's LinkedIn Newsletter
Learned Helplessness
Invest now, drink later, spend never: On the mental accounting of delayed consumption

282. Mental Accounting: Are You Doing It Right? (Refreshed Episode) Apr 25, 2023

Show notes

You're likely familiar with accounting, so perhaps you can gather that mental accounting is essentially about how we account for things in our mind. But, you may not realize that it isn't just mental math. This is about how we tend to create separate accounts for things in our minds that feel concrete, but often aren't. When I give examples in this episode today, which originally aired in the summer of 2019, you are going to find yourself saying, "Well, obviously that is how it works!" And then when you realize it doesn't have to be that way…it's kind of mind-blowing, but in a good way.

Mental accounting is great in a lot of ways. It helps us to save money and prioritize things that we might have a harder time with if everything was all lumped together. But it doesn't mean it is the ONLY way or even the right way. It might just be the best way our brains are doing it right now, and it is always a good thing when you can know the rules your brain is using to make its decisions as well as that of your employees, peers, customers, and more.

So, why are we talking about mental accounting today? It's because this Friday I am joined by Dr. Merle van den Akker, an expert on psychology and personal finances who runs the Money on the Mind blog. When she is here on Friday we discuss how the stress of money (fear of losing a job, concern about inflation, and the like) can impact employees. And, we of course take it a step further to unpack what businesses should know about these topics to better support their employees and why, even if a company thinks this doesn't have anything to do with them…it absolutely does. This kind of stress has a lot of economic impact on an organization, and it doesn't have to be difficult to support employees and achieve that win-win. We specifically talk about mental accounting in the episode, making it the perfect time to refresh it and get you set up for success for Friday!

Show Notes:

[01:21] Our brains make rules all the time. Sometimes they are really valuable — mental accounting is a great thing in a lot of ways. Sometimes, they aren't necessarily serving us well.
[03:21] The concept of mental accounting was introduced by Nobel Prize winner Richard Thaler and is based on a human's illogical approach to value in relative terms instead of looking at it as an absolute.
[06:00] Three examples of how mental accounting can impact the decisions we make. This concept is very ingrained in our brains.
[08:22] Money is commonly labeled as either: expenses, wealth, and income.
[10:48] Much like regular accounting in mental accounting, individuals will book and post any occurring or planned transactions to the mental account. However, small items may not be booked in the same way as a big item would be. As long as it is below a certain amount it doesn't have to hit the mental account.
[12:38] We often don't look at dollar bills and change the same.
[15:31] Similar to the process of rounding up change at the grocery store, 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.
[17:07] Vacations are enjoyed more when they are prepaid because it feels free.
[19:06] There are times when prepayment is necessary and beneficial for the overall enjoyment of an experience.
[22:34] When prepayment comes into play the impact of the payment gets completely wiped off the mental accounting sheet so its impact on the sheet becomes zero.
[25:11] Instead, internalize how the brain is wired to make its decisions around mental accounting.
[27:49] When it comes to wealth in these sorts of categories people are very influenced by paper gains and losses.
[29:26] Where you keep the money mentally or physically matters, but it also matters how you came across the money in question.
[30:53] The way you receive the dividend impacts your willingness to spend it.
[32:17] While it is easier to give cash than gifts, in many cases when the gift given is something someone really likes or enjoys it can have a greater value than giving cash.
[34:08] 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.
[35:14] Mental accounting affects more than just money.
[37:52] Context is important in the way people react.
[39:54] Talking on the phone is more enjoyable when you aren't worried about how much it is going to cost you.
[41:57] If you struggle with work-life balance and want to make more time for yourself, your family, or date night, consider how the mental accounts for money were set up.
[43:47] Try to take a step back and have perspective on what's a waste of time and how you could better allocate your mental time account.
[44:25] 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.

Let's connect:

Melina@TheBrainyBusiness.com
The Brainy Business® on Facebook
The Brainy Business on Twitter
The Brainy Business on Instagram
The Brainy Business on LinkedIn
Melina on LinkedIn
The Brainy Business on Youtube
Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going!

Other Important Links:

281. Outsmart Your Brain with Dan Willingham Apr 21, 2023

Show notes

In today's conversation, I am joined by Dr. Dan Willingham, a memory expert with a Ph.D. in Cognitive Psychology from Harvard. Dan's new book Outsmart Your Brain (which we discuss today) will change your life. While the book is catered to K-16 learners (for example, it includes chapters on "how to take notes," "how to listen to a lecture," "how to read hard books," and "how to take tests") trust me when I say this book is for you and everyone you know. It is fascinating and will help you with any presentation you may give or meeting you will be in moving forward. Trust me, you're gonna love this.

A little more about Dan: His work has appeared in the Washington Post, The New York Times, and many other publications, and he is the author of several books – his writing has appeared in 18 languages! In 2017 he was appointed by President Obama to serve as a Member of the National Board for Education Sciences.

Whether you want to be a better learner yourself or if you have kids (including college students) in your life whom you want to help be successful, this episode and book are for you. I can't wait to dive into this one because there is so much great stuff.

Show Notes:

[00:43] In today's conversation, I am joined by Dr. Dan Willingham. Dan earned his Ph.D. in Cognitive Psychology from Harvard University in 1990.
[03:03] Dan shares about himself, his background, and the work he does. He was trained as a cognitive psychologist.
[04:04] He shares his transition from basic researcher to applied researcher.
[07:02] Often, we assume people know that thing that we know so we miss key things when presenting. That means they don't get value from your talk.
[08:41] There are things we know we should do that we find difficult to implement. Sometimes we really don't know what is optimal to do. We tend to do things in the moment that we feel are working and are not that difficult. (But often, the harder/counterintuitive thing will make a much bigger impact.)
[11:16] Does cramming work? Dan says, "kind of." It depends on what your goals are. If you do not care about remembering something in the long term then crowding it all in right before you need to perform is actually fine.
[12:50] The only way to ensure that you remember things in the long term is if your learning happens over time rather than all crammed together.
[15:42] If you are trying to master a new skill or a new topic and you feel like you need to wait to start until you have more than small bits of time, don't wait! The data shows this is actually optimal for learning and retention.
[18:2326] Creating that consistent study or work habit by time and not by task is very important.
[21:04] We all procrastinate. It is a natural tendency.
[22:37] The key thing is you have to give yourself permission to stop if you want to.
[24:26] The night of sleep is important in consolidating the memories that were formed during the day. If you don't get much sleep or you get low-quality sleep you are tampering with the learning that you put so much time into the previous day.
[25:40] Your intention or your desire to learn contributes nothing to whether or not you will learn something. There are lots of things we want to remember but don't.
[27:26] Memory loves meaning. That is the main way we remember.
[29:05] You draw memory out the same way that it went in.
[30:53] Memories are going to be queued by thoughts or by things in the environment later. The way you are going to be able to draw memories out most successfully is when the queue is a good match for the way you thought about the memory at the time you were trying to remember it.
[32:51] When you are storing something away, think to yourself, "How am I likely later to try and remember this?" and make that part of the way it becomes retrievable.
[35:48] How do you organize 94 tips in one book? He chose to sort them by task. It is organized by things you would do that entail learning (how to read hard books, how to take notes, etc).
[38:45] When there is a hierarchical organization in speeches you are expected to make connections among the different things that you are hearing. Because it is not a narrative it is difficult to make those connections.
[41:45] You want to reframe to highlight what you enjoy instead of what is making you procrastinate. Looking at it in this way helps you overcome that.
[44:43] Allocate time to different tasks to help you get to the tasks that you tend to procrastinate on. Do the hard task first.
[46:40] It is not that what you are doing now is ineffective. It is that it can be slightly tweaked to be significantly more effective.
[48:31] What's the simplest tip in the book? Some data shows that chewing gum helps you to focus for 20 minutes. Give it a try if you like gum!
[50:328] Melina's closing thoughts
[51:39] In understanding how your own brain is wired to learn as well as others, and then how to "outsmart it" every step of the way is pure gold.

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.

Let's connect:

Melina@TheBrainyBusiness.com
The Brainy Business® on Facebook
The Brainy Business on Twitter
The Brainy Business on Instagram
The Brainy Business on LinkedIn
Melina on LinkedIn
The Brainy Business on Youtube
Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going!

Learn and Support The Brainy Business:

Check out and get your copies of Melina's Books.

Get the Books Mentioned on (or related to) this Episode:

Outsmart Your Brain, by Dan Willingham
Good Habits, Bad Habits, by Wendy Wood
Tiny Habits, by BJ Fogg
You Are Not So Smart, by David McRaney
A More Beautiful Question, by Warren Berger

Connect with Dan:

Top Recommended Next Episode: An Overview of Memory Bias (ep 280)

Already Heard That One? Try These:

Other Important Links:

Brainy Bites - Melina's LinkedIn Newsletter

280. Memory Biases: Don't Forget To Listen! (Refreshed Episode) Apr 18, 2023

Show notes

Memory is a funny thing. We like to think we have these perfect pictures of what really happened in our minds waiting to be retrieved in pristine condition, but that's not at all how it works. It turns out we have all sorts of biases that, well, bias our memories. And that is important to know in our interactions with other people in life and business.

The truth is: you can remember something completely different from someone else, and neither of you has to be wrong. Let me say that again, even if you remember something that is completely different than someone else, it doesn't mean that either of you is wrong. Our brains screen for different information than what someone else might be screening for (focusing illusion and confirmation bias). That subconscious filter is sifting through a lot of stuff, and what mattered to you and what you remember is never the full picture. This episode, which originally came out in early 2019, is a quick run through of a bunch of memory biases (part of the 8-part "All the Biases" series).

So, why was memory important to refresh today? It is because of the guest I am delighted to introduce you to this coming Friday, Dan Willingham, a memory expert whose book Outsmart Your Brain will change your life (and that of every learner you know). Outsmart Your Brain has chapters on "how to take notes," "how to listen to a lecture," "how to read hard books," "how to take tests," and more. It is fascinating and will help you with any presentation you may give or meeting you will be in moving forward. Trust me, you're gonna love that conversation and Dan's book, so be sure to subscribe to The Brainy Business podcast now (before you forget). (Haha, memory joke!)

Show Notes:

[00:39] Today's episode is all about memory biases. Memory is a funny thing.
[01:16] You can remember something completely different from someone else, and neither of you has to be wrong.
[03:41] Today's episode is going to be divided into three sections: general memory stuff, false memories, and tips on how you can use these biases to help you remember things better.
[04:45] Our memories are basically inaccurate renditions our brains tell us and every time we access them we change them a little. So the more you think about something the less and less it is like the original version. (Frustrating, but true.)
[06:26] Your customers, coworkers, friends, and family all have these same biases, so hopefully learning more about all your brains will help in all sorts of interactions in the future.
[07:20] You are the hero of your own story and no one will remember your story as well as you do (but of course even you don't remember your story correctly). The emotions tied to bad memories will fade quicker than the emotions tied to positive events.
[10:08] A few well planned surprise and delight moments throughout a relationship can create good peaks (and remember the most recent end holds the most weight).
[12:38] A false memory is when we accidentally think something we imagined really happened and misattribute it as a memory.
[14:15] Our brains are powerful, but they are easily manipulated too.
[15:39] The opposite of a false memory is called cryptomnesia when a real memory is mistaken as imagination because there is not a proper experience of it being a memory.
[17:21] We do tend to remember the efforts we had to put in as much higher than they were and toils more difficult as they were in reality.
[19:12] Don't feel like you need to remember everything about everything. Instead, remember important things that can't be easily looked up, and don't gunk up your brain with all the trivial information.
[20:45] If you want to be able to remember things better and with easier recall, it is best to have repeated exposure over a long span of time instead of trying to cram it all in at the last minute.
[22:14] Try to commit things to memory in the context they belong to or multiple contexts so they are less isolated. The mood we are in is also tied to the context.
[24:13] If you want to remember things, write them down.
[25:51] Visual images are often recalled by our visual subconscious faster and easier than words because of the picture superiority effect.
[27:38] We all put so much effort into making things as easy as possible to read and process but in reality due to processing difficulty, stuff that takes longer to read and process is easier to remember.
[28:43] We are provided with lists of things all the time and the way those things are presented absolutely impacts memory.
[30:15] Due to the next in line effect you are less likely to remember the words people spoke just before you because you were distracted with what you wanted to say. Being a good listener is key to building relationships in life and business.
[31:40] Melina's closing thoughts

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Get the Books Mentioned on (or related to) this Episode:

Outsmart Your Brain, by Dan Willingham
What Your Customer Wants and Can't Tell You, by Melina Palmer
You Have More Influence Than You Think, by Vanessa Bohns
You Are Not So Smart, by David McRaney
Unleash Your Primal Brain, by Tim Ash

Top Recommended Next Episode: Confirmation Bias (ep 260)

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Brainy Bites - Melina's LinkedIn Newsletter
COGNITION Chapter 6: MEMORY DISTORTIONS Fundamentals of Cognitive Psychology
The Science of 'Accidental' Joke-Stealing and Plagiarism

279. Creating an Irrational Loyalty Program at McDonald's with Lauren Kemp & Stephen Springfield Apr 14, 2023

Show notes

In today's conversation, I am joined by McDonald's Lauren Kemp and Stephen Springfield from the Aspen Center for Consumer Science. Last fall I saw them give a talk at IIEX Behavior on how they used behavioral science to create an "irrational" loyalty program at Mcdonald's. It was instantly clear they had to be on the show to talk about this project, its insights, and what you can learn from it.

It is such a great case study showing how real people inside organizations (and in this case, working with a great consultant), can create a program that infuses behavioral insights in a smart way -- that is often counterintuitive – to find a win-win for the company and its customers.

You'll also hear tips from Lauren about how she did her literature review and lots of other great insights. And, do know that while we joke about not loving the term "irrational" as it is popularly used in behavioral science, if there was ever a program that proved a lot of the choices people make aren't exactly rational this would be it. You'll see what I mean as they dig in on the story in the episode…

Show Notes:

[00:46] In today's conversation, I am joined by Lauren Kemp and Stephen Springfield, whom I first saw while they were giving a presentation at Greenbook's IIEX Behavior last fall.
[03:44] Lauren shares about herself and her background. She works in consumer insights at McDonald's on the US team.
[04:41] Stephen shares about himself and his background. Stephen is the Founder and Principal at Aspen Center for Consumer Science.
[06:43] Novelty and the magic of the irrational attracted Stephen to behavioral science and behavioral economics.
[07:35] Behavioral science isn't really about the irrational and the crazy cool stuff. It is about the scientific process applied to understanding behavior.
[10:35] Irrationality is where all the profit is.
[13:05] Lauren started her career with an internship at Brain Juicer. They were pioneers in the behavioral economic space. McDonald's was one of her main clients there.
[15:17] McDonald's global team created the loyalty program so the individual markets had some space to make the program work in their specific market.
[17:17] She started with a literature review since loyalty programs were not new to the industry. She wanted to learn what was most important for a loyalty program and how they could design theirs to be successful.
[19:45] Top tips for doing your own literature review? Definitely start by bookmarking Google Scholar.
[22:11] The program needed to entice customers to engage with the program. They wanted it to be consumer centric.
[24:16] They knew it was very important for the program to be transparent enough and easy to understand. Consumers don't like it when they feel they are being tricked or it is clouded. Transparency is so huge in our culture today.
[25:57] They found that the value of a loyalty program is engagement with the program itself – not the reward that you get. The reward you get is transactional.
[28:27] Lauren spent a week or two on her literature review process and Stephen's team did some additional research.
[30:39] It is important to invest the time in research, but it probably doesn't need to take as long as you think.
[33:21] There is an aspect of irrationality and that is where the profit is. You have to find a way to offer something of value that is not completely transactional.
[36:23] They wanted to find which items would drive trips because the point of the loyalty program is to get to people to visit more often.
[37:58] They tested five different point levels from 1 point to 10,000 points. They found that 100 points per dollar was easy and worked best.
[40:03] The goal is to get somebody to purchase something now with an eye toward achieving something later. Mental budgeting and being able to do the math towards a simple reward was a game changer.
[43:05] They continued coming back to the goal and objective: getting consumers to come to McDonald's because they had rewards, and they want to accumulate more rewards, and at some point they would like to redeem those rewards.
[44:56] They found there was some linearity with the value of the item and the trip driving behavior, but there were also outliers drove trips.
[46:46] If there are products on the loyalty menu that are a lower cost to produce that would still drive engagement from a customer perspective and trips are a huge win.
[49:16] Consumers can't tell you what they would do and why they would do it.
[51:35] Key Insight: The thing that drives that behavior doesn't have to be the most expensive thing.
[53:18] Science isn't really interested as much in truth as things that are reliably predictive.
[56:07] Melina's closing thoughts
[57:18] It doesn't need to take eons to incorporate good behavioral science research into your projects.

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.

Let's connect:

Melina@TheBrainyBusiness.com
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Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going!

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Check out and get your copies of Melina's Books.

Get the Books Mentioned on (or related to) this Episode:

Marketing to Mindstates, by Will Leach
The Life Saving Skill of Story, by Michelle Auerbach
Predictably Irrational, by Dan Ariely
Choice Hacking, by Jennifer Clinehens
The Paradox of Choice, by Barry Schwartz

Connect with Lauren & Stephen:

Top Recommended Next Episode: Questionstorming at KIND / Mars with Beatrix Daros (ep 215)

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Aspen Center for Consumer Science

278. How Starbucks Leverages Behavioral Economics (and you can too) (Refreshed Episode) Apr 11, 2023

Show notes

As a Seattle girl, I love me some Starbucks so it is fun to refresh this episode which was one of the first (and most popular) behavioral economics analysis episodes I've ever done. It is currently the 11th most downloaded episode of the show of all time, and with 277 episodes to date, that is a pretty big deal! If you aren't familiar with this format, it is an episode where I talk about a well-known company and their practices to share what concepts from behavioral economics and behavioral science in their work so you can see what you might want to emulate and what isn't a good fit for you in your company.

So, why this episode from late 2019, and why now? Well, it is because of the loyalty program and this coming Friday's episode where I am joined by Lauren Kemp and Stephen Springfield to talk about how they created an "irrational" loyalty program at McDonald's during the pandemic. It is a fascinating story with lots of insights for you to learn.

Today, I chose to share an episode that showcased another loyalty program doing a lot of smart things that are different from the traditional punch card approach to loyalty. (And, good news, there is a lot more to this episode that I know you're gonna love.) So grab a coffee, and settle in…

Show Notes:

[00:40] Today's episode is a behavioral economics analysis of Starbucks.
[04:01] In this episode we are going to dig into their Star Rewards program, featured drinks, and products, the coveted red cups, their personality, overall brand choices, their logo, locations, social media, and pricing.
[04:23] Without the original brand and pricing, Starbucks would be just another coffee shop.
[05:57] One of the big aspects Starbucks had to overcome was the pricing anchor.
[08:41] Howard Schultz and Starbucks took a step back. They got out of their own way and created a new category which ended up changing the conversation about coffee around the world. Asking good questions can help you get there.
[10:19] Price is never about the price. It is all about all the things that come before the price that matters more than the price itself.
[12:02] The first big drink Starbucks made famous was the Frappuccino. There is a lot of effort that goes into turning these things into multibillion dollar industries. This created a brand within a brand.
[14:27] Most everyone knows that the original PSL started at Starbucks. Pumpkin spice lattes are one of the seasonal drinks Starbucks brings out each year. They are only available for a few weeks or months until they are gone. This is scarcity in action.
[17:39] Starbucks changed the game. They created something different and managed to hold a big piece of the market even when imitators arose in every area.
[18:28] Starbucks is constantly testing and they are not afraid to have something really popular only available sometimes.
[19:24] Making and keeping a tradition alive is something Starbucks does amazingly well. The red cup first debuted in the 1997 holiday season and has been a staple ever since.
[20:19] When you become a lifestyle brand you bear the responsibility of being a big part of peoples' lives. Your choices reflect theirs and when you do something out of character, they will tell you about it. This is both good and bad.
[22:30] Consistency is key and until you define what you are and are not you can't be whatever it is consistently. When you have your own filters and know what you are about you can shout them from the rooftops and your tribe will resonate with them.
[24:49] The value of a brand is more than money and bottom-line sales. It is about the overall experience with the brand at its core.
[27:13] Find what people are already talking about and loving and see how you can be part of that conversation.
[28:39] The Star Rewards model is built to create habits for users and increase visits. It also encourages users to try new items and has limited-time offers, and customized preferences with an opportunity to get bonus stars.
[29:48] Being willing to test, experiment, and learn is something Starbucks does really well. Essentially Star Rewards is a huge testing ground of live field environments.
[32:15] Star Rewards is super easy and built-in. You have loss aversion and reciprocity built into the promotions.
[33:50] Star Rewards is 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.
[34:59] Scarcity is a powerful tool when used correctly, especially when properly paired with loss aversion to help people choose your product.
[36:31] Melina's closing thoughts
[38:39] There is a lot of value and loyalty that comes from delightful, unexpected experiences and a less formal program is perfect for that.

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.

Let's connect:

Melina@TheBrainyBusiness.com
The Brainy Business® on Facebook
The Brainy Business on Twitter
The Brainy Business on Instagram
The Brainy Business on LinkedIn
Melina on LinkedIn
The Brainy Business on Youtube
Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going!

Learn More and Support The Brainy Business:

Get your copies of Melina's award-winning books.

Get the Books Mentioned on (or related to) this Episode:

What Your Customer Wants and Can't Tell You, by Melina Palmer
How Customers Think, by Gerald Zaltman
Alchemy, by Rory Sutherland
Engaged, by Amy Bucher
Marketing to Mindstates, by Will Leach

Top Recommended Next Episode: Get Your D.O.S.E. of Brain Chemicals (ep 123)

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277.The Human Experience with John Sills Apr 07, 2023

Show notes

In today's conversation, I am joined by John Sills. John is Managing Partner at the customer-led growth company, The Foundation. He's been in front-line teams delivering the experience, innovation teams designing the propositions, and global HQ teams creating the strategy. He's been a bank manager during the financial crisis (which he says was not fun), launched a mobile app to millions of people (very fun), and regularly visits strangers' houses to ask very personal questions (incredible fun).

He now works with companies across industries and around the world, and before joining The Foundation spent twelve years at HSBC, latterly as Head of Customer Innovation. He regularly writes on Customer Experience and Innovation, and his first book, The Human Experience, just came out and is what we are discussing today.

This was a really fun book, and it is chock-full of real life experiences from businesses (both good and bad) that you can learn from. John keeps it light, even when teaching some really important stuff, and helps us to see how we can all benefit from remembering that we are, at the end of the day, humans (and so are our employees and customers). So let's just bring a bit more human-ness back into our companies!

Show Notes:

[00:43] In today's conversation, I am joined by John Sills. John is the managing partner at the customer lead growth company, The Foundation.
[03:24] John shares himself and his background.
[05:56] You really need to want to make things better for customers.
[08:41] You are closer to your colleagues, business, products, and services, but your customers are really important. We often write things that make sense to us but not to our customers.
[11:22] Factfulness is all about helping us challenge our perspectives of the world. It is easy for us to think we are the center of the world.
[14:01] Nearly all of the research we have is very inside out. It is all about the company and almost none of it is about the customer and how we can be useful to them.
[16:10] Companies should stay close to what matters most to their customers and their lives and then work out how to be useful to them.
[19:42] As a CEO if you don't go and experience the other jobs in your company yourself then you never get the visceral connection to what is really mattering for your customers.
[23:07] A real sense of responsibility and ownership for the customer is missing in many organizations.
[24:09] John shares a wonderful customer experience he had with Swiss Rails.
[27:27] Bad customer experiences are really expensive to provide.
[29:35] If you give a good experience in the first place your customers will contact you less and everything will be more efficient.
[30:23] Failure demand is the demand that is put on your service or organization as a result of failures you made elsewhere in your customer experience or service.
[32:50] As humans we are truly loyal to very few things. Very rarely are we truly loyal to companies.
[34:02] If you as an organization stay more useful than your competitors then people will stay with you.
[35:09] Organizations spend very little time keeping the experience great and essentially ignore endings or make it difficult for customers to leave.
[37:35] If as the leaders in an organization, you really understand what matters to people in their lives then your singular job is to understand how you can be most useful to them in their life.
[38:30] What is at the heart of great organizations is really understanding their customers and really staying useful to them.
[39:55] If you can retain that humanness in your organization and let your people be human then they will understand customers and create things that are useful.
[41:43] No one has time to stop and think and it is really dangerous. It feels like it is really important to check things off a to-do list instead of really getting things done well.
[43:18] When you don't have the time to step back, bad customer experience abounds.
[44:05] When you try to make it look like you know the person you are talking to and then you miss it feels a lot more painful and annoying than if you didn't ask enough.
[46:43] Over the last 20 years organizations have done a great job at trying to perfect the functional customer experience, but they have done that at the expense of the emotional and human experience.
[48:27] Just be the human you have spent all your life training to be. Speak in a human way, think about what it is like to be on the other end, and take time to understand other people.
[50:00] Treat people the way you want your gran to be treated and make your mum proud of the decisions you make.
[51:30] Melina's closing thoughts
[52:28] If you consider the extreme costs when you have to fix things it is often more cost effective to do it right and more human the first 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.

Let's connect: