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136. Temptation Bundling: A Simple Trick to Reach Your Goals, a Behavioral Economics Foundations Episode Jan 22, 2021

Show notes

Today we are going to be talking about a really cool trick called temptation bundling. You may have noticed this is a shorter episode than we usually have on the podcast and that is because while temptation bundling can make a huge impact on your life and business, it doesn't have to be all that complicated. (Hooray!)

In this episode, you'll learn what temptation bundling is, how it works, some ways I have done this myself in my own work, and tips on how you can jump in and start bundling yourself!

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. Show Notes:

[01:03] In this episode, you'll learn what temptation bundling is, how it works, some ways I have done this myself in my own work, and tips on how you can use it too.
[02:15] One of my favorite things about this concept is how simple it is. This is actually something I've done naturally most of my life before it had a name.
[03:17] When I required some extra motivation, I created little milestone moments and rewards to keep myself motivated.
[03:57] The essence of temptation bundling is taking something you should do but may have a long term reward and not be super appealing at the moment, and bundle it with something you really want to do right now.
[05:01] In the foundational research study led by professor Katy Milkman, participants agreed to have their iPods locked up at the gym so they could only access them when they went to work out. They exercised more and were happier about it.
[06:10] A slight change in routine can upend newly forming habits and make them hard to start up again if you aren't careful, so it is important to keep that all in mind as you set up your own temptation bundling techniques and timelines.
[07:26] Here's another great thing about temptation bundling: pretty much anything can be a candidate for the bundle, and what you set up doesn't necessarily need to be what someone else would want or need.
[09:04] Temptation bundling uses a "now" activity to help achieve a longer-term goal and overcome time discounting.
[09:37] Most multitasking doesn't work well. As you are likely going to be looking for ways to implement this for your work goals (at least some of the time), I don't want you to feel limited by needing to only use this while doing two things at once.
[10:19] To help to find your candidates for temptation bundling start by looking for something you love to do in your spare time.
[11:55] The two items that you want to bundle don't have to be related. Choose any reward and tie to the action ahead of time (download your freebie worksheet here to get started).
[12:56] Temptation bundling is everywhere. You just need to find the cheese to your own personal life broccoli and you'll be achieving goals left and right.
[13:08] Melina's closing reflections.

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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Master Your Mindset Mini-Course
BE Thoughtful Revolution - use code BRAINY to save 10%
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135. Using Behavioral Science in Healthcare, Interview with Aline Holzwarth Jan 15, 2021

Show notes

In today's episode, I am so excited to introduce you to Aline Holzwarth. Talk about an amazing person doing fantastic and exciting things! Aline is both a principal at the Center for Advanced Hindsight, where she works directly with Dan Ariely and the whole awesome team there. She is ALSO the head of behavioral science at Pattern Health.

Today you will get to learn about both of her roles, a little of what it's like to work with Dan, and about so many great things that she is doing to apply behavioral science in business.

[00:08] I'm excited to introduce you to Aline Holzwarth, principal at the Center for Advanced Hindsight and head of behavioral science at Pattern Health.
[03:05] Aline shares about all the exciting things she is doing and how she got into behavioral science. She enjoys being exposed to new and different business applications and she was drawn in by the real-world impact.
[05:32] She loves both of her roles so much that she just can't give either of them up.
[07:21] She shares about some of her favorite projects she has worked on.
[10:23] At the Center for Advanced Hindsight many of their projects come from Dan and some are chosen by the team.
[12:48] The more you are exposed to, the more connections you are going to make.
[13:28] Pattern Health is a digital health platform that works with researchers and clinicians to help them do their research and translate that research into clinical use cases.
[15:03] Aline's job is to bake behavioral science into the Pattern Health platform to make behaviors that are not fun at all a little easier to do.
[17:24] There is going to be attrition no matter how good your app is, but ideally they try to limit it.
[20:21] Creating a Care Circle to offer constant support has been very impactful especially in long-term situations.
[23:31] They share ways to put people together for more successful support.
[24:10] There is a lot of benefit in support groups, but getting people to find one and show up is very difficult.
[26:44] You can nudge people in the direction that will be most helpful to them but also allow them to have the freedom of choice.
[28:15] Virgil is their mascot and virtual pet at Pattern Health. Virgil is one way to track daily progress. People get very attached to Virgil.
[30:48] Melina shares about the app, Forest, that holds you accountable.
[31:41] Virgil is based on the ideas of rewards substitution. They are substituting the long term reward for a short term reward. The long term things usually don't motivate us.
[34:09] Behavioral interventions like Virgil help you overcome tiny hurdles until it becomes habitual. We often have to combine behavior interventions to make each one more effective.
[36:01] Aline shares what the future holds for her. She is really interested in getting more into the idea of personality matching.
[37:23] One area she is really excited to start developing is personalizing to peoples' personalities.
[40:01] They are using the Big 5 personality model.
[42:10] In behavioral economics we are looking at things that all people do on a more general scale. Using personality, we may be able to drill down and know which behavioral interventions work best based on personality type.
[43:19] Aline is doing an interview series for Pattern Health looking at innovators, health, and research.
[43:54] Melina's closing reflections.

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:

More from The Brainy Business:

Master Your Mindset Mini-Course
BE Thoughtful Revolution - use code BRAINY to save 10%
Get Your FREE ebook
Melina's John Mayer Pandora Station! Listen to what she listens to while working.

Past Episodes and Other Important Links:

Check out (and preorder!) my upcoming book on Amazon, Bookshop, and Barnes & Noble

134. Using Behavioral Science to Tackle Addiction (and the Lessons for any Business), Interview with Richard Chataway Jan 08, 2021

Show notes

Today I am so excited to introduce you to Richard Chataway. Richard is such an awesome and fun guy to chat with. He has worked on so many amazing projects, and let me just tell you right now you are going to love this episode. While Richard works with all sorts of businesses and organizations when applying behavioral economics as CEO of BVA Nudge Unit UK, our conversation ended up talking a lot about addiction, and how he worked on some campaigns that helped people quit smoking.

When you think about changing behavior and how you can apply the insights from behavioral science, it may feel like an addiction would be untouchable...like it is out of the realm of possibility. As you will hear today, the same concepts that are applied in businesses to help people to choose the best product for them can also be used to understand behavior and help people make healthier choices; Things they may desperately want to do and have struggled for years on their own, but with a well-structured program including the right insights from behavioral economics, it becomes possible.

You can learn more from Richard and projects he has worked on in his book and accompanying podcast, both called The Behaviour Business.

[00:41] I am so excited to introduce you to Richard Chataway. Richard is such an awesome and fun guy to chat with.
[01:46] You can learn more from Richard and projects he has worked on in his book and accompanying podcast, both called The Behaviour Business.
[03:50] Richard shares how he got into behavioral science about 15 years ago when he worked at the Department of Health in the UK.
[04:50] Smoking as a behavior is very interesting because it is a quintessential irrational behavior. We are at a point now that everyone knows it is bad for them and that it has short-term and long-term consequences for their health but still people continue smoking.
[06:01] They have changed their approach from telling smokers about the risks to helping them quit and providing them with tools. It was more effective than the traditional approach.
[06:41] Our behavior is not as rational as we think it is and by recognizing some of those irrationalities we can be very successful in changing behavior.
[08:11] Now Richard works for the BVA Nudge Unit. They are a specialist behavioral practice within BVA.
[09:47] Behavioral science can be applied across a huge range of challenges and contexts.
[12:02] Behavioral science is helping to show that if you talk about it differently changes can happen.
[12:56] How you say something is as important as what you're saying. You can frame things in a way that resonates with people and is more motivating.
[15:30] In their research they found that family-based motivations were very important to the group of smokers they were targeting. Smoking was seen as their reward.
[17:11] The fundamental message that smoking is bad hasn't changed. Reframing that it doesn't just impact you but it also impacts your family made the campaign much more effective.
[19:14] If you can shake up your routine and change it a little bit, it can have a huge impact. Habits are very powerful drivers of behavior.
[20:18] It is very easy to think of smoking as being a habitual behavior automatically, but there is a reward element to it.
[22:38] Emotions are very powerful drivers of our behavior. In their campaign, they were trying to find the right emotional triggers to get that response.
[24:03] Richard shares about a tv ad campaign they created showcasing how children copy the behavior of their parents.
[26:01] It is a good campaign when you get goosebumps when you hear about it.
[27:38] The smoking campaign was really an ah-ha moment for Richard for how behavioral science can help with addressing all kinds of problems. The focus of his book is how you can use behavioral science to deliver better outcomes for your business.
[28:05] Any business's challenges are typically around behavior.
[29:01] We have learned more about human behavior in the last fifty years than we have in the last 50,000. Any business that isn't using that knowledge is going to be missing out.
[29:14] Richard shares his favorite stories from his book including where the understanding and knowledge of behavioral science unlocked a new way of thinking about and addressing a problem.
[30:49] We know from behavioral science that the more friction we put into places, the less likely people are to use it.
[32:04] People like things that are easy and streamlined.
[34:58] Understanding behavioral science is one thing, but when it comes to applying it you have to be comfortable with testing everything and being scientific and experimental in that way.
[37:12] It is often a combination of things that have the impact we want and that is why testing is so important.
[38:04] Richard shares a counterintuitive approach they found when working with a bank in the UK.
[41:02] They told customers on the phone with the bank, "Take your time" to put people more at ease even though they wanted the calls to be quicker.
[44:37] When people are already overwhelmed all the stress quickly snowballs when we aren't thinking about making it easy for customers to do what they need to do.
[45:54] There is a balance to be struck between protecting people's privacy, but if a service isn't easy to use then there is a big downside to that too.
[48:24] Melina's closing reflections.

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:

More from The Brainy Business:

Master Your Mindset Mini-Course
BE Thoughtful Revolution - use code BRAINY to save 10%
Get Your FREE ebook
Melina's John Mayer Pandora Station! Listen to what she listens to while working.

Past Episodes and Other Important Links:

Check out (and preorder!) my upcoming book on Amazon, Bookshop, and Barnes & Noble

133. The Best of The Brainy Business in 2020 Jan 01, 2021

Show notes

Hello and Happy New Year everyone! While 2020 was nowhere near the year any of us were expecting it to be, I'm always looking for silver linings, so it seemed worth taking the time to celebrate the top content and accomplishments here at The Brainy Business over the past year. I finished my book, which comes out in the first half of 2021 and I'm so excited to be able to talk more about it soon!

I was also a guest two separate times on New Day Northwest, a Seattle area afternoon talk show on the NBC affiliate here. The Brainy Business won Best YouTube Channel in behavioral science from reader votes via Habit Weekly, which was such a huge honor, and I also started teaching applied behavioral economics through Texas A&M University for the Certificate in Applied Behavioral Economics! We've had one cohort start already in the fall and if you're interested there is still time to join us for January classes, which begin on January 18.

I want to thank you all for listening, subscribing, sharing, connecting on social media, and for reaching out to let me know your wins and the behavioral economics concepts you have applied in your own businesses. Those are some of my favorite messages to get – I truly love hearing from you, so please continue to reach out (and use the links below to connect on social media).

[00:49] Today we are going to celebrate the top content and accomplishments here at The Brainy Business over the past year.
[03:30] First, I want to thank you all for listening, subscribing, sharing, connecting on social media, and for reaching out to let me know your wins and the behavioral economics concepts you have applied in your own businesses.
[04:37] The top countries and states with downloads in 2020.
[06:11] I'm going to tell you about the top 10 downloads of the year, which will be followed by the top 10 downloads of all time.
[07:31] The tenth most downloaded episode of 2020 was number 99 on bikeshedding. Bikeshedding is constantly keeping people spinning their wheels and not making progress on goals.
[09:01] The ninth most downloaded episode of 2020 was number 84: How to stack and bundle products and services so they are most appealing to potential customers.
[09:57] Coming in at number 8 is episode 87 on social proof and how to use herding to boost engagement and sales.
[11:01] Number 7 was the very first of 2020, episode 81: How to Finally Change Your Behavior So it Sticks.
[12:10] Number 6 is the first interview to make an appearance with author Brian Ahearn, which was episode 104.
[13:50] The 5th most downloaded episode of the year was also an interview, episode 101 with Dan Ariely, where we discussed Shapa, the numberless scale.
[15:07] The 4th most downloaded episode of 2020 was episode 91 on the coronavirus and how the human brain responds to pandemics.
[17:15] The third most downloaded episode was on Confirmation Bias, episode 102.
[18:23] The second most downloaded of the year was number 83: How to Organize Your Brain with Behavioral Economics
[19:08] And the most downloaded episode of all of 2020 was number 86, A Behavioral Economics Analysis of Peloton!
[21:57] Next we are going to talk about the top ten most downloaded episodes of all time since the podcast launched in June 2018.
[22:18] The number 10 most downloaded episode of all time was episode 102 on Confirmation Bias.
[22:26] The ninth most downloaded episode of all time was on Selective Attention Biases which was episode 50.
[24:04] Number 8 was the episode on Game Theory which was episode 62. In this episode, I got to talk about how life and business are a game and figuring out if you know the rules.
[25:19] Coming in at Number 7 was episode 5, our first throwback to 2018, The Truth About Pricing.
[26:07] Number 6 is How to Organize Your Brain with Behavioral Economics which was number 83.
[26:17] Number 5 was episode 61 on color theory. When it comes to color, this one thing matters more than anything else.
[28:05] The fourth most downloaded episode of all time was number 86 on Peloton.
[28:10] Number 3 was another behavioral economics analysis episode. It was the analysis of Starbucks which was episode 73.
[29:04] The first two episodes of the show continue to be number 1 and number two on the list. Number 2 was episode 2 which was The Top 5 Wording Mistakes Businesses Make.
[29:13] The number one most downloaded episode of all time was episode 1, Unlocking the Secrets of the Brain.
[31:33] In 2021, I am definitely planning to do some of those company analysis episodes. I am also going to continue to do interviews. We have some VERY exciting ones coming up!
[33:08] I also write for Inc. Magazine, here are the top ten articles I've written there.
[33:53] Number 10: The Font Size on Your Price Tags Could Be Reducing Your Sales by 28 Percent. Here's How to Fix It
[34:17] Number 9: Forget Brainstorming. Try Questionstorming.
[34:45] Number 8: Why You Hate Seeing Your Face in Video Meetings
[35:24] Number 7: These 5 Simple Concepts of Behavioral Economics Can Drastically Improve Your Marketing Efforts
[35:50] Number 6: Still Trying to Multitask? How to Make More Time for Deep Work
[36:23] Number 5: This Simple Framework Can Help You Sell More of Anything
[36:56] Number 4: Why You Should Ditch Your Flimsy, Paper Business Cards Right Now
[37:44] Number 3: 1 Simple Brain Trick That Can Help You Overcome Self-Doubt Forever
[37:59] Number 2: Feeling unproductive? This brain bias could be to blame
[38:32] Number 1: A Starbucks Barista Asked Me This 1 Simple Question, and Using It May Be a Great Way to Boost Your Sales
[39:16] Getting people to decide to buy from you is much more difficult than getting them to buy MORE things from you once they are in the purchasing mindset. So, it is easier to get people to add on things than to get them to buy initially.
[40:03] There is so much to learn and implement. I hope this episode opened your eyes to some exciting content from The Brainy Business you may have missed or want to revisit. Find them all at any time at www.thebrainybusiness.com/podcast

For a complete list with links, check out the Top Content of 2020 blog post.

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:

More from The Brainy Business:

Master Your Mindset Mini-Course
BE Thoughtful Revolution - use code BRAINY to save 10%
Get Your FREE ebook
Melina's John Mayer Pandora Station! Listen to what she listens to while working.

Past Episodes and Other Important Links:

Sign Up For The Texas A&M Certificate Program
Planning Fallacy

Check out (and preorder!) my upcoming book, Unlocked, on Amazon, Bookshop, and Barnes & Noble

132. Decision Fatigue, a Behavioral Economics Foundations Episode Dec 25, 2020

Show notes

This is the last episode of 2020! Like most everyone, I am very excited to be putting this year in the rear-view mirror.

So many people felt bogged down by all the extra stress and decisions of 2020. We had our habits upended and were forced to think about things we were used to letting our subconscious brains handle for us. Because of that, it was pretty easy to choose decision fatigue as the topic for this last episode of the year.

In this episode, you'll learn what decision fatigue is, the most common study cited to show how it works, the most common tips you'll find from others, AND of course my Brainy tips for mindset and business you won't find anywhere else (plus, your free worksheet! Click the image to get yours.)

[00:06] Today's behavioral economics foundations episode is about decision fatigue.
[02:32] We humans make an incredible number of decisions each day. Even choosing to listen to this podcast right now was likely a slew of micro-decisions.
[03:41] It is easy to think "going for a walk" is a single decision, but all those little decisions during the day add up and can cause our brains to get tired.
[04:11] Some of those are big choices evaluated by your conscious brain, but many of them, well over 90%, are made by your subconscious.
[05:04] As you begin to get fatigued, you are more likely to rely on your subconscious rules of thumb to make decisions and get more risk averse.
[06:32] Most Common Tips From Other Articles on Decision Fatigue: limit the number of decisions you make, make your big decisions in the morning, and don't make big decisions late; put them off for tomorrow when you can.
[07:01] If you don't have to bog down your brain with mundane choices, you can free it up so it doesn't get fatigued as quickly.
[07:39] Wendy Wood mentioned when creating a running habit that you want to make the thing you are trying to have become a habit as easy as possible.
[08:45] Doing something today is the best way to make tomorrow easier.
[09:33] Over-stretched brains are rampant at the holidays and decision fatigue is a big culprit that can lead to extra stress and tension and possibly arguments with family.
[10:26] Decision fatigue is similar to overwhelm, but they are not the same thing. Your brain can get overwhelmed by more than just decisions, and not every decision in and of itself is necessarily overwhelming.
[12:11] So, when something has you in a tizzy and is using up more mental energy than needed just "Elsa it" – let it go and move on.
[13:20] Be thoughtful about the things you will be thoughtful about. There are lots of things that seem important at the moment that simply aren't.
[15:16] I want you to think about all the stuff you are asking current and potential customers to do in order to do business with you. Are there lots of extra and unnecessary questions you are asking on an initial form or application?
[16:10] It is so important to put extra thought into your customer experience journeys. You want to reduce that friction and make it as easy as possible to do business with you.
[18:10] It may feel pushy or like you are being too forceful by narrowing time options, but in reality, you are making it easier for someone to make the choice which they will be happier about.
[19:58] Look for ways to reduce decisions and make it easier to work with you, and help others to do the same.
[20:23] Decision fatigue is another reason batching content and tasks is so important. When you set aside some time to plan out content in advance, you condense all those decisions into one.
[21:52] Handing off the right tasks can remove so much stress and unnecessary decision making from your plate, it's so important.
[23:10] The last tip of the episode for overcoming and fighting decision fatigue: take breaks.
[25:25] Taking care of your brain is important, and using the tips from this episode to reduce decision fatigue will really help you be more productive, less stressed, and produce better work.
[26:53] Make sure to check out the link to Nudge It North, a conference being put on by our great friends Tim and Kurt of Behavioral Grooves. Get 15% off your ticket with the code: brainy

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:

More from The Brainy Business:

Master Your Mindset Mini-Course
BE Thoughtful Revolution - use code BRAINY to save 10%
Get Your FREE ebook
Melina's John Mayer Pandora Station! Listen to what she listens to while working.
Special Year-End Sale 👈🏻🥳

Past Episodes and Other Important Links:

Check out (and preorder!) my upcoming book, Unlocked, on Amazon, Bookshop, and Barnes & Noble

131. The BIG Effects of Small Behavior Changes in Business, an Interview with Jez Groom and April Vellacott, coauthors of Ripple Dec 18, 2020

Show notes

Today I am very pleased to introduce you to Jez Groom and April Vellacott, coauthors of the book Ripple: The big effects of small behaviour changes in business. Jez and April work together at Cowry Consulting in the UK, which he founded in 2015. Cowry incorporates behavioral science into recommendations for all sorts of clients, including one fascinating study you'll hear about today where they made workplaces safer by painting the walls pink!

During the conversation, we talk about all sorts of concepts, like nudges, anchoring, framing, loss aversion, priming, and more.

[00:41] I am very pleased to introduce you to Jez Groom and April Vellacott, coauthors of the book Ripple: The big effects of small behaviour changes in business.
[03:07] April studied psychology for her undergrad. She has always been very interested in the way people around her behaved.
[04:23] April discusses her thesis on using behavioral science in cybersecurity.
[06:56] Jez has done some amazing things in his second career of behavioral science.
[08:01] Jez has always been an entrepreneur and he can't wait to see the next wave of behavioral science.
[09:59] Jez is excited for more behavioral science applications and studies, as well as diversity in behavioral science.
[11:11] Behavioral science shouldn't be exclusive. They are going to be campaigning in small territories to start their own programs and studies.
[14:01] April shares about the Preventing Falls with Pink Walls study.
[15:55] The team went to the construction site to help nudge them to be safer. One tactic was painting the walls pink.
[18:07] There was a huge shift in behavior after they implemented their changes including a reward system.
[18:57] If you are a hard-core behavioral scientist, it is crazy to do three interventions all at once, but they only had one shot to change the behavior so they had to take the risk.
[20:50] It is worth the risk when making affordable changes that can have a huge increase in health and safety.
[23:32] The interventions don't always work across the board, but it is the ideas behind the interventions that matter for future projects.
[24:25] Ripple walks anyone who is working in business or interested in applying behavioral science through the steps to get started. The first step is convincing other people in your organization that behavioral science is an amazing tool that applies to them and your business.
[25:54] No matter where you are in your journey or the size of your business, Ripple is full of practical tips for getting started.
[26:15] There are some interventions that capture your attention because they are counterintuitive.
[27:21] The objective of behavioral science should be to change behavior for the better.
[28:13] Jez shares about his favorite intervention they discuss in the book from their research in South Africa.
[31:11] In South Africa they were working with a store and trying to get people to buy their first sim card from them.
[33:04] We should celebrate the simple more. Many instances can be conveyed in simple terms and that doesn't mean they are any less genius.
[36:01] Simplicity is very important.
[38:34] "If you can't explain it simply, you don't understand it well enough." - Albert Einstein
[39:29] April shares the process they used for writing the book.
[41:22] Some people are really good at saying what they want to say, but others are really good at writing their thoughts down.
[43:20] We are moving on to the next era in behavioral science. We are trying to figure out a better system of codification of what behavioral science looks like.
[44:57] Complexity and too much information is a huge problem for financial services.
[48:30]Melina's closing reflections.

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:

More from The Brainy Business:

Master Your Mindset Mini-Course
BE Thoughtful Revolution - use code BRAINY to save 10%
Get Your FREE ebook
Melina's John Mayer Pandora Station! Listen to what she listens to while working.
Special Year-End Sale 👈🏻🥳

Past Episodes and Other Important Links:

130. How To Use Behavioral Science in Banking, Food Delivery and More–An Interview with Dr. Henry Stott, Co-founder of Dectech Dec 11, 2020

Show notes

Today I am very pleased to introduce you to Dr. Henry Stott, cofounder of Dectech, a behavioral science consultancy in the UK. As you'll hear on the show today, Dectech works with all sorts of companies and industries, from banks to insurance and food delivery. They use randomized controlled trials and other techniques to help companies understand behavior and properly apply it within their businesses.

Dectech is not new to the space. It was founded nearly two decades ago in 2002, so they have lots of background and foundations they build upon.

During our conversation, Henry and I talk about all sorts of concepts, like nudges, anchoring, relativity, framing, habits, and more—and all those past episodes are linked for you in the show notes, as well as the book The Mind is Flat written by Henry's cofounder of Dectech, Dr. Nick Chater.

[00:40] I am very pleased to introduce you to Dr. Henry Stott, cofounder of Dectech, a behavioral science consultancy in the UK.
[02:43] Dr. Stott started Dectech about 20 years ago with his cofounder, Dr. Nick Chater. They have spent the last 20 years refining their view on how you harness those methods to more accurately predict how consumers and other people will behave in novel situations.
[03:54] There are two classes of problems. The first class of problems is a precedent problem when you are trying to forecast the future.
[04:46] The second class of problems is harder (and often more valuable) where there has never been anything like it before. These are the types of problems they have set out to understand.
[06:06] Dr. Stott shares about the Deliveroo project. The question was whether they were going to launch a subscription product or not.
[09:04] Pricing is not about price. The way you present everything before you get to the price matters more than the number.
[10:34] Designing the proposition so it fits snuggly into what people want is the first objective. A lot of people fail to do that. They often have to drop the price because they haven't added value.
[12:06] A lot of the designs of features and propositions are driven by an excessive fixation with competitors and an excessive self-confidence of the management.
[14:36] Looking to competitors when determining your pricing is a mistake.
[16:58] At least half of the judgment is made up of the movement of prices within a store as opposed to contrasting across stores.
[17:40] People are much more sensitive to the order of things than the size of the differences.
[19:54] When you are able to feel like you are part of the process waiting can feel less painful.
[22:51] Sometimes a time delay can be a good thing.
[23:36] Dr. Stott shares about the Lloyd's Bank case study and the customer journey optimization process.
[24:31] They were looking to design a home insurance renewal process that worked best for the customers and the bank.
[25:37] They also tested a "name your price" condition, but it ended up not being very popular (which is good to know because it would have been very expensive to set up and would have been a waste of time and money).
[28:28] In experiments, Dectech runs as many as 20 variances. Sometimes they are all run together and other times they build on each other.
[29:33] The best approach is to immerse customers in a decision-making environment that is as close as possible to the environment they would naturally encounter.
[32:01] You can get quite close to replicating the kind of mindset people will be in using an online decision environment. These trials have to be run entirely virtually just because of the number of participants.
[33:20] More and more commerce is taking place online, so virtual testing and formats like this will be increasingly relevant. The pandemic has accelerated this trend.
[35:05] Small changes can have profound effects on the economics of your business.
[36:29] Before you start testing, think of the best ideas and try to innovate.
[38:34] Something novel or fun is often one of the best outcomes in the experiment.
[40:43] I love all the work Dectech is doing, it's really fascinating stuff, and you will be hearing about them again in an upcoming episode featuring Dr. Benny Cheung.

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.

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129. Melina's Go-To Brainy Books: Behavioral Economics Books You Need To Read Dec 04, 2020

Show notes

Reading and research are some of my favorite things. (I'm guessing that doesn't surprise you too much...especially if you've ever dug into the show notes for the podcast.) For this reason, I frequently get asked for my top book recommendations. While completing the citation list for my own book (which has over 210 citations by the way!) a few sources popped up often enough that it felt like a great time to do this episode.

Plus, if you want to buy a brainy book this holiday season for a friend or loved one any of these could be a great choice! There are, of course, links to all the books I will be talking about in today's episode within the show notes. AAAAND...while it doesn't officially come out until May 2021, there are also links for my book, Unlocked, in the show notes as well, which I'll update as we get closer to the launch (and beyond). SO…that is exciting to check out as well.

Happy reading!

[02:36] If you've been listening to the podcast for a while, it likely won't surprise you to learn that when people ask me for my book recommendations I always ask more questions. For example, "what are you looking to do with the information?" or "how do you want to apply that?" or "what's the goal?"
[03:15] I could recommend books all day long, but this episode only includes the seven books I reference most often and most commonly recommend. I intend this to be the first in a series on the podcast where I will recommend books for various topics
[03:54] First on the list, is Daniel Kahneman's, Thinking, Fast and Slow. Kahneman is a pillar in the field, the first to win a Nobel prize, and he (along with the late, Amos Tversky) conducted so much of the research that the field is based upon, it is amazing how many concepts are rooted in Kahneman's work.
[04:44] If you are really wanting to understand behavioral economics and behavioral science including what it is built upon and get a peek inside the inner workings of the brain of one of the field's founding members Thinking, Fast and Slow is definitely worth it.
[05:58] Kahneman is the source of the dual system theory of how our brains work. What I call the subconscious and conscious here on the show, he calls System 1 and System 2. If you want more about how he sees those working and how it all comes together in peoples' behavior, Thinking, Fast and Slow is a great book for you.
[06:42] Next, we have our other Nobel laureate, Richard Thaler, and the book he co-authored with Cass Sunstein, Nudge.
[07:52] If you are looking to influence behavior through nudging, to "improve decisions about health, wealth, and happiness," and just want a great foundation in the entire concept of nudges and choice architecture, I highly recommend Nudge.
[08:14] The last of the foundational "most common books you have likely seen on any behavioral economics list," is Predictably Irrational, by Dan Ariely.
[09:04] If you have not yet read Predictably Irrational and are interested in "the hidden forces that shape our decisions" I highly, highly recommend this book. If you are looking for a first foray into behavioral economics books to start reading, I would likely start with Predictably Irrational because it is so relatable.
[10:04] The first book in our next category (of marketing/branding/communications) is called The Buying Brain: Secrets for Selling to the Subconscious Mind by AK Pradeep. He gives great insights into the brain: how it has developed (with details on the senses), as well as the processes going on in the brain AND how it relates to today's buying behavior.
[11:46] The next book is another one you may not have heard of or seen on lists before, it is called Neurobranding, by Peter Steidl. It gives a baseline of neuroscience and how the field applies to marketing, it came out a few years after The Buying Brain in 2014. - (NOTE: That link is to the edition I have, which at the time of posting this is a bit expensive, so it may be out of print. There is an updated version here, but the content appears to be a little different. I'm sure it is still great, but can't personally vouch content and it might differ a bit from what I said was included during the episode.)
[13:22] This next book is kind of a bridge between the marketing space and productivity – it's Friction, by Roger Dooley. Friction is such an eye-opening book. It has so many practical examples that apply to business like expense reports with unnecessary friction and forms on a website that had small changes that increased (or decreased) usage and adoption rates.
[14:43] Reducing friction is important, but you need to know the behavior you are trying to nudge people toward before focusing on changing the processes. This book helps you see how other businesses have accomplished that, and ways you can relate it in your own business.
[15:06] Our last book is all about productivity and being less distracted. Or as Nir Eyal calls it, Indistractable.
[15:36] Nir shares about motivation, understanding your internal and external triggers, how they apply to you, making time for the things that matter, and helping you to actually focus on them.
[16:02] I really loved part three on "hacking back" external triggers.
[17:49] This book will help you understand how to find your traction and also how to keep yourself from getting distracted from those most important things.
[18:17] As a recap, our foundational books are: Thinking Fast and Slow by Daniel Kahneman; Nudge by Richard Thaler and Cass Sunstein; and Predictably Irrational by Dan Ariely.
[18:31] Then our marketing and brand books, The Buying Brain by AK Pradeep and Neurobranding by Peter Steidl, and we bridge the path between marketing, efficiencies, productivity, and experience with Friction by Roger Dooley, and round it all out with Indistractable by Nir Eyal.
[19:14] And, my book, Unlocked is scheduled to launch on May 11, 2021. Woohoo!
[19:52] Have you read any of these books? Which one are you going to pick up first? Is there a go-to book you think should be in my next review episode? Come share it all with me on social media (links below).

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.

Get Your Books!

Thinking Fast and Slow
Nudge
Predictably Irrational
The Buying Brain
Neurobranding (the edition I have, which appears to be out of print as it is more expensive)
Neurobranding (Updated Edition)
Friction
Indistractable

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Special Year-End Sale 👈🏻🥳

Past Episodes and Other Important Links:

Check out (and preorder!) my upcoming book, Unlocked, on Amazon, Bookshop, and Barnes & Noble

128. How to Build Products That Create Change, An Interview with Matt Wallaert Nov 27, 2020

Show notes

Today I am so excited to introduce you to Matt Wallaert, author of Start at the End: How to Build Products that Create Change. One of my favorite quotes from Matt is one that shows how we are kindred spirits. He says, "If behavior is your outcome and science your process, you're a behavioral scientist. No Ph.D. required."

Matt was one of the first behavioral scientists to leave academia to work in industry, which he has done for over 15 years now. He was head of behavioral science at Microsoft, the first chief behavioral officer in the healthcare industry while at Clover Health, and has done tons of awesome projects along the way (some of which you will learn about in today's episode).

During our conversation, we discuss lots of concepts that have past episodes on the show, including those on anchoring, relativity, how to finally change your behavior, how to experiment, and many more

Show Notes:

[00:43] Today I am so excited to introduce you to Matt Wallaert, author of Start at the End: How to Build Products that Create Change.
[03:28] Matt shares his story and how he got interested in behavioral science.
[05:06] After taking a second psychology class in college, he became addicted to science and started doing a lot of applied work.
[07:56] He left Clover Health in March and ended up moving to California for a year of adventure.
[09:41] He has decided in his next role that he wants to spend most of his time pivoting an organization to behavioral science.
[11:01] Advances in data science and user research have prepared younger project managers to fully embrace behavioral science.
[13:12] People often don't think of the implications of the things that they say.
[13:30] Every industry has its own beliefs about what can't be changed (listen to episode 126 for Melina's tips on fixing this in your organization).
[14:51] Behavioral science can be used in good ways and in bad ways (ethics matter!).
[16:49] It is really hard to write a complete behavioral statement from the beginning.
[17:17] Matt shares about the GetRaised project he worked on.
[19:04] Bias creeps in when we start to do ratings of performance.
[20:28] The difference between junior behavioral scientists and more senior behavioral scientists is just experience. Anyone can learn the framework.
[22:08] A lot of communication is just quick analogy making. It is the ability to find out what someone is interested in and relate that to the thing you are teaching.
[24:37] Our brain is using the same rules and concepts whether we are deciding to litter or choosing a brand of toothpaste.
[25:37] When you try to replicate a lab study in real life sometimes it works and sometimes it doesn't. The key is that you tried it small before you shared it with everybody. (Get Melina's tips for creating your own experiments in episode 63.)
[26:47] Science is the testing of all assumptions. Diversity can help identify an assumption.
[28:08] Behavioral science is a lifestyle.
[28:59] Academic behavioral science is about the why of the way things are. Applied behavioral science is the changing of the way things are.
[30:20] Almost all misunderstandings across cultural and other kinds of borders are due to a misunderstanding of the pressures that affect that other persons' life. It almost always makes sense if you understand the context.
[32:06] Melina shares Steve Wendel's story about a fish in the sand (hear more from Steve in episode 116).
[34:33] It is easier to have a discussion with the people that we can relate to than to have a more difficult conversation.
[35:36] Matt says, "If behavior is your outcome and science your process, you're a behavioral scientist. No Ph.D. required."
[36:27] Behavioral science thrives when lots of people are doing it and doing it a little better every day. If it does not put behavior as an outcome, it is not behavioral science.
[37:05] Behavioral science is about creating a specific outcome in advance and then using science as a process.
[39:46] Get your own copy of Matt's book, Start at the End: How to Build Products that Create Change.
[42:32] Don't forget to take advantage of the year-end sale going on now.

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.

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Special Year-End Sale 👈🏻🥳

Past Episodes and Other Important Links:

127. Good Habits, Bad Habits: An Interview with Wendy Wood Nov 20, 2020

Show notes

Today I am so excited to introduce you to Dr. Wendy Wood. Her fantastic new book Good Habits Bad Habits (which I mentioned last week was voted book of the year in the Habit Weekly Awards) is just one of the many amazing things she has contributed to the field of habits. Much of what we know about habits is thanks to Wendy's research. The things we now know about how habits work and what they're doing in the brain is in large part because of her.

Wendy is a social psychologist whose research looks into the ways habits guide behavior and why they are so difficult to break. She is provost professor of psychology and business at the University of Southern California and has been Associate Editor of Psychological Review, Journal of Personality and Social Psychology, Personality and Social Psychology Review, and Personality and Social Psychology Bulletin. She is a Fellow of the American Psychological Association, the American Psychological Society, the Society for Experimental Social Psychology, and a founding member of the Society for Research Synthesis.

Her research has been funded by the National Science Foundation, National Institute of Mental Health, and Rockefeller Foundation. Prior to joining USC, Professor Wood was James B. Duke Professor of Psychology and Neuroscience and Professor of Marketing at Duke University, and she is just a lovely person whom I really enjoyed talking to.

Show Notes:

[00:42] Today I am so excited to introduce you to Dr. Wendy Wood. Her fantastic new book Good Habits Bad Habits is just one of the many amazing things she has contributed to the field of habits.
[02:47] Wendy is a social psychologist whose research looks into the ways habits guide behavior and why they are so difficult to break.
[04:52] Habits are part of our unconscious. They are a way our brain learns by connecting what we've done in a given context that got us a reward.
[05:20] All mammals have a habit learning system.
[07:05] With a habit you are repeating what you have done before while your mind is off solving other problems.
[08:41] A habit frees our mind to do other things. When the habit is disrupted, we are stuck back having to make decisions. (Brain doesn't like that!)
[09:45] COVID has disrupted all of our habits and we had to start making decisions about things we don't usually have to think about.
[10:36] Wendy recommends not expecting as much from yourself during the uncertainty of the pandemic.
[11:05] Once we are removed from our habits, sometimes we end up finding things that work better. (Be open to that possibility!)
[14:25] Research found that for habitual runners the place where they typically ran activated thoughts of running. Those thoughts perpetuate their behavior.
[16:08] The context in which you typically perform the behavior can trigger thoughts of that behavior. (Reinforcing it.)
[17:30] Context activates habits and we usually act on those habits in mind. Goals are what drive the more occasional behaviors that we have to make a decision to do.
[19:01] If you do an activity in the same way every time, you are more likely to form a habit. You also want to be able to repeat it regularly. Also, look for what makes it rewarding to you, as we are more likely to repeat behaviors that we find rewarding.
[20:42] Research has shown that it is important to find ways to perform the habit easily. You will do something more if it is easier. We can often set up our environment in a way that would make it more likely that we will perform the habit.
[23:15] There is a lot of science behind the importance of making good habits easy for us.
[24:15] Along with making the desired behavior easier, you want to make the things that are more problematic (those you want to avoid or stop doing), more difficult.
[26:04] Wendy recommends reverse engineering what your environment is pushing you to do.
[27:38] If you can incorporate the desired behavior into your daily routine it is so much easier to get yourself to do them. Anything that adds to the hassle makes it more likely you will not do it.
[30:01] Wendy shares her favorite study (which also happens to be the one she is currently working on).
[32:01] They found that social media revenue is closely tied to habitual use.
[33:26] Thoughts and tips for marketers on using habits for good.
[35:52] Product manufactures have to take habits seriously.
[36:47] The trick is keeping up with current development while also taking advantage of the cues that already keep your habitual customers coming back.
[39:01] Weight loss programs, in general, don't benefit from you losing weight and keeping it off. Their model revolves around repeat customers.
[41:09] If you want to change your behavior, the way you typically go about it is not the most effective. We focus on our conscious decision-making self while our habits run in the background.
[43:31] If you can make it easier in your life to do the right thing and harder to do the thing that is being a problem. You will make it easier to change your behavior.
[46:23] Don't forget to take advantage of the year-end sale going on now.

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:

More from The Brainy Business:

Master Your Mindset Mini-Course
BE Thoughtful Revolution - use code BRAINY to save 10%
Get Your FREE ebook
Melina's John Mayer Pandora Station! Listen to what she listens to while working.
Special Year-End Sale 👈🏻🥳

Past Episodes and Other Important Links:

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