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276. Surprise! It's Delightful (And Drives Loyalty) (Refreshed Episode) Apr 04, 2023

Show notes

Today's episode is all about surprise and delight. Hopefully, the title concept of this episode already has you in a happy and delightful mood (that's priming for you!) and you are ready for some fun. I love thinking about experiences and incorporating fun, delightful moments. It can be with customers or employees and in totally unexpected places (that is the best strategy) like an error page of a website or the legaleze people agree to.

Little moments of thoughtfulness are my favorite, and they help us to have fun at work (we should!) as well as help our customers and employees to enjoy interacting with us (which will make them want to do it more). And, while I don't need much of an excuse to talk about surprise and delight, there is a specific reason I chose to refresh this episode from 2019 today, and that is as a lead into this coming Friday's conversation with John Sills on his new book The Human Experience.

His book is all about creating better experiences. He features brands that are already doing an amazing job and how companies can make big leaps by remembering their humanness. Great experiences shouldn't be surprising, but sadly they are as too often the experiences with brands are more of a pain than a pleasure. But it doesn't have to be this way! This episode will share why delight is so critical to companies, why surprise matters, what it all has to do with loyalty and profitability and so much more. It's a fun one and I can't wait to share it with you Friday (if you aren't already subscribed to the podcast, take a moment to do so now). And, in the meantime, let's talk about surprise and delight.

Show Notes:

[00:38] Today's episode is all about surprise and delight.
[02:12] Great experiences shouldn't be surprising, but sadly they are as too often the experiences with brands are more of a pain than a pleasure.
[04:18] If a customer has an expectation they will either be satisfied or dissatisfied by the level at which that expectation is met or not. Expectation can't lead to delight.
[05:15] Ideally you are living in the satisfied territory most of the time with a few delights popping up here and there. Delighting customers takes extra work and it can be expensive, though it doesn't have to be.
[05:38] Delight is much more likely to drive loyalty than mere satisfaction.
[07:31] It is important to not get stuck in the traps of false loyalty.
[10:13] A 5% increase in loyalty can increase your profit by as much as 85%.
[11:03] Loyalty is huge for businesses and delight is a big key to earning it. Loyalty isn't the only awesome thing to come out of delighting customers.
[11:57] The biggest issue is that there is no standard scale for measuring delight.
[14:14] Customers can't tell you what would cause them to be delighted because they have to be surprised. They can't be expecting it or it isn't going to hit the delight scale.
[17:46] Finding someone who is influential and loves your brand and then finding a way to work with them can both delight that person and their following.
[19:39] If your delights become standard then they become expected. Surprise is key to delight.
[22:33] Having a great first encounter helps set the relationship off on a good start. Having a dose of delight every now and then keeps customers happy.
[24:09] Empowering employees to help customers and go the extra mile can make a big difference in loyalty scores and profitability.
[26:02] Sometimes the most delightful "WoW" moments happen in the blink of an eye. If employees are not empowered and need to cross layers of approval these moments could be lost forever.
[28:27] In other businesses this could be as simple as changing the radio station on a loaner car to match the customer's vehicle when it is brought in for repairs, or knowing when a client comes to your office for a meeting drinks chai tea lattes and having one waiting on them when they arrive. Little things can make a big difference and delight your customers.
[30:01] Businesses always need to be watching the market to see what the status quo is and how expectations have changed to keep up with delight.
[32:33] Melina shares one of her favorite examples of surprise and delight.
[34:35] There are countless other ways your company can implement surprise and delight for your customers.
[36:34] Listen to customers to understand what's important to them.
[38:08] Delight is not something you do one off and hope for the best. It requires time and strategy, but it is absolutely worth it. When you give a little bit to people often they want to give back.
[40:45] Don't let herding make you feel like you have to send stuff at the same time as everyone else. That is precisely why you should send something at another time because no one else is.
[41:37] Melina's closing thoughts
[43:41] It is important to take a step back and look around and disassociate from the current experience. Working with a consultant can be very helpful to bring fresh eyes to the situation.

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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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
Choice Hacking, by Jennifer Clinehens

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

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275.The Illusion of Choice with Richard Shotton Mar 31, 2023

Show notes

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.

Let's connect:

Melina@TheBrainyBusiness.com
The Brainy Business® on Facebook
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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:

The Choice Factory, by Richard Shotton
The illusion of Choice, by Richard Shotton
Alchemy, by Rory Sutherland
Friction, by Roger Dooley
Sludge, by Cass Sunstein

Connect with Richard:

Top Recommended Next Episode: Friction, with Roger Dooley (ep 274)

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Other Important Links:

Brainy Bites - Melina's LinkedIn Newsletter
Schindler Precision
Dynamic Pricing in a Labor Market: Surge Pricing and Flexible Work on the Uber Platform

274. Reducing Business Friction: Understanding The Benefits With Examples From Amazon & Steve Jobs, with Roger Dooley (Refreshed Episode) Mar 28, 2023

Show notes

Today I welcome Roger Dooley to The Brainy Business podcast for a refresh of our conversation about his book Friction. Featuring this discussion was inspired by Richard Shotton's new book The Illusion of Choice, which has one chapter about "making it easy" and then another on "making it difficult" (and you'll hear all about it on Friday). This perfectly aligns with Roger's book, Friction, which is all about understanding the psychology of friction and how it can be used to optimize customer experiences. That made it the perfect refresh candidate for this week!

While reducing friction is often best and what most businesses need, sometimes there is also value in adding friction in the right places. For example, in What Your Employees Need and Can't Tell You, I suggest introducing a 30 minute waiting period before sending emails can help to avoid mistakes.

As you listen today and think about Friction, consider your own experiences — where can they be easier? Where should they be more difficult? I know that seems a bit counterintuitive now, but some thoughtful friction is really valuable in the right places. Listen in to learn how you can use friction in your own business.

Show Notes:

[00:39] Today's episode is all about friction, specifically, a refresh of the conversation I had with Roger Dooley on his book Friction way back in November 2019.
[01:44] As you listen today and think about friction, consider your own experiences — where can they be easier? Where should they be more difficult?
[04:04] The cover of Roger's book, Friction, intentionally had a coarse / gritty texture. It was meant to convey a sense of friction. (Priming!)
[05:35] Roger shares about himself, his background, and the work he does.
[07:40] The interaction of neuroscience, behavioral science, and business has always been fascinating to him. His blogging, podcast, and books have given him a chance to explore that and simplify it for people in business.
[09:22] There has been an increase in business interest in behavioral science.
[11:46] Change is hard, especially when humans are involved.
[12:57] 95% of the time businesses have too much friction in their processes.
[13:49] There are times when adding friction helps. In general, it is best to eliminate it. Amazon is a prime example of that.
[16:27] Friction is an unnecessary effort to complete a task.
[18:29] Amazon makes it so that 99% of the time or more you are simply using the one-click button to ship a product to your home address or office address. That makes it a low-risk transaction.
[21:46] People don't look at the cost of the processes they create. When looking at the total time, cost, and effort compared to the amount you would lose, there's no comparison.
[23:29] Where there is high trust there is low friction.
[25:08] Often we create processes that are designed to make things easier but they don't really work that way.
[27:51] How many people are going to be affected by this and how can we make things easier?
[30:08] In general, if you are trying to maximize leads or sales, making the process as simple as possible is the way to go.
[33:08] By giving them that "out" you relieve the pressure and they are more comfortable complying with the request.
[35:54] Buffer took all the friction out of scheduling social media. They made it simple to get started.
[38:34] Rather than seemingly correct the person and imply that they didn't work at it hard enough they avoid the word "actually".
[40:46] Loyal customers are better and more valuable than new customers. Low-effort experiences drive loyalty.
[42:38] They are comparing you against their best, lowest effort customer experiences.
[43:57] You are endangering the loyalty of all those customers you can not handle in that instantaneous and efficient manner.
[46:54] Sometimes eliminating useless parts of the process is the best way.
[48:34] As you look to decrease friction you will start to notice it all around you.
[50:27] Melina's closing thoughts
[52:41] Remember, you are a human doing business with humans inside your company and with your customers — trust and humanness and a reduction in friction can go a long way in building an amazing 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.

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:

Check out Melina's books.

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

Friction, by Roger Dooley
What Your Customer Wants and Can't Tell You, by Melina Palmer
How Customers Think, by Gerald Zaltman
Alchemy, by Rory Sutherland
Sludge, by Cass Sunstein

Connect with Roger:

Top Recommended Next Episode: Sludge (ep 179)

Already Heard That One? Try These:

Other Important Links:

Brainy Bites - Melina's LinkedIn Newsletter

273. Mixed Signals: How Incentives Really Work, with Uri Gneezy Mar 24, 2023

Show notes

In today's conversation, I am joined by Dr. Uri Gneezy. Uri's research focus is on putting behavioral economics to work in the real world, where theory can meet application. He is looking for basic research as well as more applied approaches to topics like incentives-based interventions to increase good habits and decrease bad ones, Pay-What-You-Want pricing, and the detrimental effects of small and large incentives. In addition to the traditional laboratory and field studies, he currently works with several firms conducting experiments which use basic findings from behavioral economics to help companies achieve their traditional goals in nontraditional ways.

You may be familiar with Uri's name because he coauthored the wildly popular book, The Why Axis with John List, who was on the show last year talking about his book The Voltage Effect.

I have a feeling you're going to really enjoy this conversation as it is about a topic people in business are thinking, talking and asking about all the time: incentives. Most specifically, Uri talks about what happens when we mix our messages (it happens a lot more often than you realize) and how that impacts behavior. There are tons of fascinating and practical examples in the book, and we will talk about a few of them today in the episode.

Show Notes:

[00:42] In today's conversation, I am joined by Dr. Uri Gneezy. Uri's research puts behavioral economics to work in the real world where theory can meet applications.
[03:15] Uri shares his background and the work he does in behavioral science. He is a behavioral economist and most of his work is around how incentives really work and how they can change the world.
[05:19] When you give the incentives it is not just the money, reward, or recognition that you give, you are also sending a message and telling a story. If you don't really understand how the incentive can shape or change the story you might send the wrong message.
[07:03] Incentives are not good, wrong, or bad. It really depends on how you use them.
[09:25] By changing the incentives from money to an item like a mug or pen you change the message that supports the signal that you want to send.
[11:45] Uri shares about research around donating blood.
[14:01] In the late '90s hybrid cars started to pop up. Toyota won the market with the signal they sent.
[16:39] Different incentives work on different people. The incentives don't have to apply to everyone.
[18:25] The role of incentives should be to push the story in the direction you want. Incentives are going to change the story.
[21:27] Quality is much harder to control than value and sometimes it is subjective. How do you incentivize without damaging the quality?
[24:30] We really need to be careful about the incentives we give.
[27:00] If we want innovation we have to make sure we don't punish failure.
[29:59] If you have an incentive in place, try to think about it and see if it really sends the message that you want to send.
[30:51] The fact that you tried incentives and they didn't work doesn't mean that incentives don't work. It means that what you tried didn't work and it is time to try something else.
[33:26] You need ways to measure your incentives and how they are working.
[36:00] He decided to add cartoons to his book because they deliver the message better than just reading a long description and it makes it fun and less boring.
[38:48] The Coca-Cola story is a very good example of how the framing of the incentive can give a completely different experience.
[40:26] Not all incentives are created equal and you can understand more about them and predict how they will work if you understand the message they are sending.
[41:55] Our brains have mental accounts.
[44:30] If you find out what your clients care about you can use that to create your incentives.
[46:51] The amount of money really sends a signal but gifts send a very different signal and meaning.
[49:36] Make incentives simple. If you have many incentives, consolidate them. Make sure you align what you do with the message you want to give.
[50:52] 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!

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:

Mixed Signals, by Uri Gneezy
The Why Axis, by Uri Gneezy and John List
Drive, by Daniel Pink
Quit, by Annie Duke
Both/And Thinking, by Wendy Smith & Marianne Lewis

Connect with Uri:

Top Recommended Next Episode: The Voltage Effect with John List (ep 190)

Already Heard That One? Try These:

Other Important Links:

Brainy Bites - Melina's LinkedIn Newsletter

272. iNcentives: The "N" in Behavioral NUDGES (Refreshed Episode) Mar 21, 2023

Show notes

Today's episode is all about iNcentives, specifically as they pertain to the concept of NUDGES. This episode first aired as part of a 7-part series I did on NUDGES back in 2019. Why seven parts? Well, "NUDGES" is an acronym for the six types of nudges as introduced by Thaler and Sunstein: iNcentives (which is a bit of a fudge to make it work, but we all forgive them), Understand Mapping, Defaults, Give Feedback, Expect Error and Structuring Complex Choices. That original series included one episode on each, plus an introductory episode into what nudges and choice architecture are to kick things off - so there you have it: seven episodes.

This episode on incentives is being refreshed today to help get your brain buzzing on the idea before the wonderful Dr. Uri Gneezy is here on Friday to share about his new book (which just came out today) called Mixed Signals: How Incentives Really Work. It is all about what happens when we mix up our incentives so things don't work as intended, and what we can do to correct those errors before they happen.

Digging in on nudging incentives as it pertains to behavioral economics felt like the perfect way to get you ready and in the right mindset for that episode coming out on Friday. (If you haven't already subscribed to the podcast, take a moment to do so now!)

Show Notes:

[00:38] Today's episode is all about iNcentives, specifically as they pertain to the concept of NUDGES. This episode first aired as part of a 7-part series I did on NUDGES back in 2019.
[03:20] We are inundated with choices in our lives and because our brains are lazy we don't put in all the effort required to make the best decision every time. Well structured choice architecture can influence the way someone makes a decision and the choice they make.
[04:37] Proper incentives can help encourage sales when you understand how they work.
[05:11] Good choice architects understand how to structure the nudges and architecture to do what is best for their business.
[06:43] Melina's example - air conditioning!
[09:02] In general with air conditioning, it may feel like there isn't really a choice to be had. It looks pretty easy on the surface...
[10:30] While air conditioning seems like a simple choice there were actually a lot of variables to be considered.
[13:05] Consider who pays, who chooses, who uses, and who profits.
[14:06] What happens when there are conflicting incentives? That is where we can really run into problems.
[15:47] "Do you want the wi-fi enabled one?"
[19:11] Look at how you can align the incentives to find the win-win-win scenario.
[21:45] When all you look at is the cost it is easy to base your pricing off of that – but that isn't the best way.
[23:52] Salience (or saying something is salient) is the way an item stands out from other items.
[25:19] Our human brains have a hard time understanding value and cost over time.
[27:03] Breaking down a large payment by year, month, week, or even day can make it a choice easier (or harder!) to make. Context matters.
[29:43] Being in sales is basically being a full time choice architect. It is the burden of a salesperson and company to structure choices in a way that customers can quickly understand the value and make a choice.
[32:02] Paying for the car is removed from the experience of you using and driving it.
[34:00] Think about what you want to bring your customers' attention to (versus what would be a negative experience if you brought their attention to it).
[36:23] Points, foreign currency, and tokens are not the same in our mind as "real" money.
[38:04] It is important to consider the questions of who uses, who choses, who pays, who profits.
[40:44] Surge pricing may seem like a way to nudge people into using less energy, but because this isn't salient in the moment it doesn't do as much as it could. Here's something else that might work better…
[41:55] The last example of competing incentives is the US healthcare system.
[44:20] Improvements can always be made.
[46:30] Melina's closing thoughts
[46:35] I find incentives fascinating because there are so many layers to them. It is so important to look at the ripples of choices and incentives, all those little facets that may not come to mind but can actually be really really important when decisions are made.

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:

Mixed Signals, by Uri Gneezy
Nudge, by Richard Thaler and Cass Sunstein
Sludge, by Cass Sunstein
What Your Customer Wants and Can't Tell You, by Melina Palmer
The Why Axis, by Uri Gneezy and John List

Top Recommended Next Episode: The Cobra Effect (ep 220)

Already Heard That One? Try These:

Other Important Links:

Brainy Bites - Melina's LinkedIn Newsletter
Nudge: Improving Decisions About Health, Wealth, and Happiness
Choice Architecture

271. The Power of Scarcity with Mindy Weinstein Mar 17, 2023

Show notes

Today, I am joined by Dr. Mindy Weinstein. Mindy is the founder and CEO of Market MindShift and was named one of the top women in digital marketing globally by her peers. She is also a global speaker, trainer, and digital marketing strategist who has worked with and trained companies of all sizes, including Facebook, The Weather Channel, Rosetta Stone, World Fuel Services, Investor's Business Daily, HBO, Fandango, Telemundo, LL Bean, Cisco, Transamerica, and Sportsman's Guide. Other digital marketing agencies come to Mindy to learn the latest trends, concepts, and methodologies. She teaches and leads marketing courses at Columbia Business School, The Wharton School at the University of Pennsylvania, Grand Canyon University, and the University of Denver.

Getting introduced to Mindy was fascinating timing. A client asked if there was a book specifically about choosing the right type of scarcity tactics and how to apply them in her business. I let her know there wasn't a perfect fit and recommended What Your Customer Wants and Can't Tell You, as a great place to start.

Later that day, I got a LinkedIn message from Brian Ahearn, introducing me to Mindy, who had just published her book, The Power of Scarcity: Leveraging Urgency and Demand to Influence Customer Decisions. And, let me tell you...everyone in business needs to read this. It is so valuable and such a great resource for everyone regardless of industry. Listen in to get some amazing insights on applying scarcity in your business!

Show Notes:

[00:43] In today's conversation, I am joined by Dr. Mindy Weinstein. Mindy is the founder and CEO of Market Mindshift and was named one of the top women in digital marketing globally by her peers.
[02:02] She has a Ph.D. in general psychology with an emphasis on technology and is the author of The Power of Scarcity.
[03:07] Everyone in business needs to read this book. It is so valuable and such a great resource for everyone regardless of industry.
[04:57] Mindy shares about herself, her background, and the work she does. She has been a marketer for the last two decades.
[06:07] As she was digging into all the factors, she realized that scarcity seemed to have the greatest power. It is also one of those factors that have been hardwired into our brain which dates back to our early ancestors.
[08:39] "Obsession is a classic side effect of scarcity."
[09:24] Mindy shares how scarcity affected her family on their visit to Disney World.
[12:06] The Star Wars ride was in high demand and it was difficult to get on. When you are faced with something like that, it becomes urgent and an obsession for your brain.
[14:52] Even though we know scarcity works, it can be really challenging to implement in business.
[15:08] Scarcity is something you can implement and it always needs to be genuine. If it is authentic and something is truly scarce, why not communicate it?
[15:42] As a small business a lot of times it is just your wording that makes a difference. Knowing how to word certain things makes a big difference.
[17:22] One of the keys is not being afraid of running out of stock and instead making that an asset to you. Letting customers know items have been restocked triggers demand related scarcity.
[19:31] Businesses can show the "best sellers" or "most popular" packages or most popular items that people buy.
[20:28] There is a lot you can do from a business and small business standpoint that isn't going to break the bank.
[22:14] Luxury goods strive with supply related scarcity when there is only a certain amount of units.
[24:47] When you are looking at the scarcity tactic you can still be a large retailer that is making a lot of money and having a lot of customers but be more focused and making sure that the things where you are advertising are going to be working for you instead of being a waste.
[26:22] Time related scarcity is any kind of time restrictions like flash sales, coupons, or limited time offers or products. Demand related is where scarcity exists because of high demand.
[28:30] Pricing isn't about price. All the stuff that happens before the price matters.
[29:10] If there is only so much of something to go around and we are looking at demand you feel like you are in competition.
[31:18] Supply related scarcity could be a shortage or an intentional restriction on supply. Supply related scarcity speaks to people that have a need for uniqueness.
[33:11] The final type of scarcity is limited edition which is any variation on the original.
[35:44] Social media fuels so much of what we know and see about scarcity because words spread really quickly.
[38:38] "If you have to make an extra effort to obtain the item, that item has just become more attractive."
[39:11] If we are told we can't have something or it is not very simple for us to get it then we start to really think about it and want it more.
[40:34] As we think about all these different types of scarcity, be careful about continuing to do the same thing over and over again. You want to mix it up so you don't devalue your products or services.
[42:20] Discounting deeply is going to be going against a lot of these scarcity principles.
[44:36] Melina's closing thoughts
[45:43] You never know who you are influencing and what value each moment can have on the world. Have a conversation and be generous with your time. Even a few thoughtful minutes could change someone including you for the better.

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

The Power of Scarcity, by Mindy Weinstein
Influence, by Robert Cialdini
Influence PEOPLE, by Brian Ahearn
What Your Customer Wants and Can't Tell You, by Melina Palmer
Friction, by Roger Dooley

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Top Recommended Next Episode: Scarcity (ep 14)

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270. Scarcity: Why Does Less Available Feel More Valuable? (Refreshed Episode) Mar 14, 2023

Show notes

Today's episode is all about scarcity. This is a term you are familiar with, but I am willing to bet you aren't using it in all the ways it can be leveraged in your life and business. The term gets thrown around a lot and people know some of how it works, but the nuance is so so so much more than you can imagine.

This refreshed episode, which originally aired in the fall of 2018, will introduce you to the depth that this topic can have to set you up for this Friday's episode with Mindy Weinstein, author of the book The Power of Scarcity which will absolutely blow your mind. It is so good. Within the book, she includes so much depth and nuance in a way I have never heard anyone else talk about scarcity. It's fascinating.

Today is a primer to expand your thoughts about scarcity in a way that will get you ready to continue your learning when that episode comes out on Friday. As you listen, reflect upon times in your own life where you have been pulled in by scarcity, and where you can incorporate it more into your business.

Show Notes:

[00:39] Today's episode is all about scarcity. This is a term you are familiar with, but I am willing to bet you aren't using it in all the ways it can be leveraged in your life and business.
[02:15] In traditional economics, scarcity occurs when an item has limited availability but unlimited desire for that item. This could include natural resources like oil and water or more abstract concepts like time.
[02:55] Studies have proven that we see things as more valuable when they are less readily available.
[05:55] Scarcity and value are closely tied together. Our crazy brains think less equals more…even when it is kinda weird. When something is scarce it triggers our loss aversion because we don't want to miss out on the opportunity.
[08:13] Scarcity can only take effect when items are truly limited. This means not everyone gets one.
[10:49] Scarce items can take on a life of their own.
[11:37] Scarcity can create a cult following, which means other people do the marketing for you. This makes the brand bigger than anything you can do on your own.
[14:57] These examples from Starbucks and Disney are a combination of scarcity and availability. This is essentially capitalizing on something popular and becoming part of the craze.
[15:26] If you are going to take a shot at incorporating scarcity, know that not everything will cause an uproar of epic proportions. Sometimes there will be duds and that is ok. The question is what did you learn from them for next time?
[16:50] There are some words you can use to trigger scarcity in the brain of your consumer, including: limited time, extended, custom, handcrafted, one of a kind, closeout sales, everything must go, and last chance. These terms can be added to more than products, extending into services as well.
[18:27] If you do a promotion or discount, make sure it is short term and remind people when it ends. You can also limit the quantity available and stick with it.
[20:16] Contests and giveaways can work really well for you, but there are a lot of rules and you need to make sure you play the game.
[21:37] It is easy to sound like a cheesy infomercial when you're using scarcity, so take a step back and don't get too over the top.
[23:23] Scarcity and availability are another peanut butter and jelly sort of concept grouping like anchoring and relativity.
[26:15] Scarcity is a tactic that works especially when combined with availability.
[27:05] If there is not enough value they need to control the supply that is available to keep demand high.
[28:12] 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!

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:

The Power of Scarcity, by Mindy Weinstein
What Your Customer Wants and Can't Tell You, by Melina Palmer
Influence, by Robert Cialdini
What Your Employees Need and Can't Tell You, by Melina Palmer
Power of Regret, by Dan Pink

Top Recommended Next Episode: Availability Bias (ep 15)

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269. Getting Along: How to Work with Anyone, featuring Harvard Business Review's Amy Gallo Mar 10, 2023

Show notes

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.

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:

Getting Along, by Amy Gallo
HBR Guide to Dealing with Conflict, by Amy Gallo
A More Just Future, Dolly Chugh
Influence is Your Superpower, by Zoe Chance
Both/And Thinking, by Wendy Smith and Marianne Lewis

Connect with Amy:

Top Recommended Next Episode: Fundamental Attribution Error (ep 268)

Already Heard That One? Try These:

Other Important Links:

Brainy Bites - Melina's LinkedIn Newsletter
Women at Work Podcast
Sisterhood is Scarce
Sisterhood is Trust
Getting Along with a Passive-Aggressive Gossip
Getting Along with a Political Operator
Getting Along with a Biased Tormentor
Getting Along with an Insecure, Know-It-All Pessimist
Amy's Website

268: You Are Many Peoples' "Them" – Fundamental Attribution Error Mar 07, 2023

Show notes

Today's episode is all about fundamental attribution error. Why is this the Tuesday Refresh? Well, when contributing editor to the Harvard Business Review, Amy Gallo, is on the show this coming Friday to discuss her book Getting Along: How to Work With Anyone (Even Difficult People) we specifically talk about this concept in detail. Also, upon review, this episode first aired on March 20, 2020…something tells me it hasn't gotten as many listens as it deserves - ha! It is so prevalent in every interaction at work, that this all made it an easy choice for being today's episode.

The episode explains what fundamental attribution error is and how you experience it every single day at work and in your personal life. In essence, it is when we give ourselves the benefit of the doubt…but don't give that same benefit to others.

This happens because we humans are very tribal by nature. Our brains are constantly sorting people into "us" and "them" categories. When we have people in the "us" world (yourself, your significant other, your family, your best friend, or favorite colleague) they get treated differently than those in a "them" category (people who don't look or sound like you, people in a different department that is always at odds with your own, that person who made you feel dumb at the meeting six years ago). Even if you don't want it to be a factor, it is. Our brains do this, and it is important to understand the bias and how it impacts our behavior (and those around us) so we can properly leverage it — because avoiding it doesn't work.

Show Notes:

[00:40] Today's episode is all about fundamental attribution error. The episode will get into more detail on what fundamental attribution error is and how you experience it every single day at work and in your personal life.
[02:28] As an interesting side note, I was looking back to share when this episode first aired as I always like to make a note of it and the release date was March 20, 2020. I couldn't help but laugh as that date had a pretty visceral reaction for me. I'm guessing it might have for you too.
[03:48] I like to call fundamental attribution error the "Pot / Kettle Phenomenon." When you use a different criteria to think about yourself and how you are acting than you use to think about and judge others…it is fundamental attribution error.
[04:28] A classic example is when driving. How do you feel about someone who cuts you off in traffic and how do you feel about yourself when you cut someone else off in traffic? When thinking about yourself, you know this is a one-time thing and give yourself the benefit of the doubt (while that other person is labeled a "jerk").
[06:02] We also see this with movies in who is labeled good or bad. The best example is the Wicked Witch in the Wizard of Oz.
[09:00] Your brain is biased to think of you as different and better than others, especially people that are not like you.
[09:30] You don't have to let that immediate reaction form a lasting impression of someone else. You can put in a little effort once you understand the brain process. This can make all those relationships at work and in your personal life a little more pleasant.
[11:12] The big difference between the way we see others and how we see ourselves is the intrinsic story compared to the extrinsic story. Intrinsic is internal and extrinsic is external.
[12:48] In general, we are much more likely to say that others' internal attributes or personalities led to their bad behavior, while we see ours as being from external situational circumstances.
[13:44] Four ways to change the ways you react to others: 1) Decide you want to work on this and understand why it is important to you. 2) Choose an initial group or person to start the process with. 3) Reframe your "in" group. 4) Consciously adjust to extrinsic attributes for 30 days or a decent number of total interactions and then move to the next group.
[15:42] It is also important to remember that fixing your mindset on the way you think about others is about your choice. You can't change them or their responses to situations.
[17:35] If you know what makes you think that way and who's in the "in" group and the "out" group you can look to expand that "in" group so you can be less biased overall.
[18:29] When you broaden the circle of the "in" crowd you start to see everyone in a better light. While you might not notice it until you start to open up, it can greatly impact all of your working relationships.
[21:00] Conquering your fundamental attribution error to have better relationships with a department means every time you have a negative response you need to check in with yourself and remember they are part of your "in" group. Then think of something positive about them to replace the negative feeling you had initially.
[22:11] When you force yourself to look deeper for positives, it can help round them out and build that intrinsic story.
[23:00] The easiest way to see someone as your "in" group is to find ways you are similar.
[24:08] I gave the tip of starting with one group to begin with to get the ball rolling but once that snowball starts do what you can to add on and add on.
[25:10] It is important to look at your own behavior the way others do as well. Try to stop writing an extrinsic story for why it is okay.
[26:41] When you understand how your brain is sorting other people and treating them differently and how you are many other peoples' "them" it can really help you to adjust your own behavior so you can have better relationships at work and in your personal life.

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:

What Your Employees Need and Can't Tell You, by Melina Palmer
Getting Along, by Amy Gallo
A More Just Future, by Dolly Chugh
How Minds Change, by David McRaney
How To Have Difficult Conversations About Race, by Kwame Christian

Top Recommended Next Episode: Confirmation Bias (ep 102)

Already Heard That One? Try These:

Other Important Links:

Brainy Bites - Melina's LinkedIn Newsletter
Fundamental Attribution Error
Here's Why Rushing to Back-to-Back Meetings Is Hurting Your Reputation
Why Learning To Embrace Criticism Should Be Your Top Resolution This Year

267. I, Human: Behavior and our Complicated Relationship with Technology, featuring Tomas Chamorro-Premuzic Mar 03, 2023

Show notes

In today's conversation, I am joined by Dr. Tomas Chamorro-Premuzic, an international authority in psychological profiling, talent management, leadership development, and people analytics. His commercial work focuses on the creation of science-based tools that improve organizations' ability to predict performance, and people's ability to understand themselves. He is currently the Chief Innovation Officer at Manpower Group, co-founder of Deeper Signals and Metaprofiling, and Professor of Business Psychology at University College London and Columbia University. He has previously held academic positions at New York University and the London School of Economics and lectured at Harvard, Stanford, and London Business Schools, Johns Hopkins, IMD, and INSEAD, as well as being the co-founder and CEO of BrazenX and the CEO at Hogan Assessment Systems.

Dr. Tomas has written 11 books and over 150 scientific papers on the psychology of talent, leadership, innovation, and AI, making him one of the most prolific social scientists of his generation. His work has received awards by the American Psychological Association, the International Society for the Study of Individual Differences, and the Society for Industrial-Organizational Psychology, to which he is a Fellow. Dr. Tomas is also the founding director of University College London's IndustrialOrganizational and Business Psychology program, and the Chief Psychometric Advisor to Harvard's Entrepreneurial Finance Lab.

Over the past 20 years, he has consulted to a range of clients. His media career comprises over 100 TV appearances and he is a keynote speaker for the Institute of Economic Affairs. I am so beyond delighted and honored that he is joining me on the show today to discuss his newest book, I, Human.

Show Notes:

[00:43] In today's conversation, I am joined by Dr. Tomas Chamorro-Premuzic, an international authority in psychological profiling, talent management, leadership development, and people analytics.
[01:41] Dr. Tomas has written 11 books and over 150 scientific papers on the psychology of talent, leadership, innovation, and AI.
[04:07] Dr. Tomas shares his experience, his work, and how he found himself doing the work he does now. His background is in psychology.
[06:37] It is generally more useful to be smarter than not, but there are many other things that contribute to peoples' success in any area of life.
[09:33] Very sought after strengths can come with limitations and turn into weaknesses if overused.
[12:24] Humans are naturally tribal and we want to construct very coherent identities. With that comes the subjective experience that we belong to some groups and we don't belong to others.
[13:21] We also strive to feel very rational and consistent. It is a lot simpler and generally more pleasant to hold attitudes, beliefs, and values that are compatible with each other.
[15:07] So much of this world can be changed or modified a little bit if we convince people to spend time with others who don't think like them.
[17:34] We tend to pick leaders based on their confidence instead of their competence. (Dunning-Kruger Effect)
[18:11] A surplus of confidence really dilutes self awareness. The better you think you are at something the worse you probably are at that thing.
[20:39] Instead of blaming women for not behaving overconfidently (more like the often incompetent men who move forward when they don't have the talents to back it up). We should instead stop falling for men who do that.
[21:47] If leadership selection was gender blind you would end up with 60-65% of women in charge because of things like emotional intelligence, heart skills, qualifications, and absence of dark side traits. The actual frequency is 80-20 in favor of men.
[23:37] Gender diversity and inclusion interventions have become more data driven in the last five years.
[26:13] The entire world seems to be talking about Chat GPT. Tomas shares how that relates to his new book, I Human.
[29:02] Three avenues to protect and preserve our expertise are to focus more on asking questions, really pick one or two areas of expertise that you invest in, and go from insights to actions.
[30:42] Machines and technologies have always pushed us to upgrade ourselves.
[33:30] In the book he answers the question of what it means to be human in this day and age when all the focus is on artificial intelligence and machines are clearly evolving and advancing.
[34:59] The book has two parts. The first part highlights some of the worst behaviors that we have already seen humans display as a consequence of being so dependent on AI and related technologies.
[37:25] The second and last parts of the book are a request for us to rediscover and reclaim the qualities that make us special, unique, and different from machines.
[39:45] The shift really needs to be much more prominent from teaching information to teaching skills, behaviors, and ethics.
[41:33] Organizations, nonprofits, institutions, governments, and societies need to sort out the issue of reskilling and upskilling so people are not made useless or redundant.
[43:45] Businesses should find ways to really humanize work in the age of machines and AI is really important.
[44:56] Find the time to ask questions. Don't take facts at face value. Focus on the things that you find interesting and useful.
[47:31] Melina's closing thoughts
[49:26] A forced shift in teaching methods and how we test knowledge and show intelligence isn't inherently bad. There are some real opportunities there.
[52:42] Try to understand your own brain's tendencies and not believe everything you hear, see, or read. Find ways to do your own fact-checking whenever possible.

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: