The Brainy Business | Understanding the Psychology of Why People Buy | Behavioral Economics

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). 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: [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: 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 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 If you are outside the US, please complete this form to be first to know when the book is available near you AND to help show there is a presence in your country to speed along international agreements and get it to you faster!

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.) 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: [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: 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 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: Good Habits Bad Habits by Wendy Wood Essentialism by Greg McKeown Friction by Roger Dooley The Selling Staircase by Nikki Rausch Nudge It North Conference - Use code BRAINY to save 15% off tickets How Many Daily Decisions Do We Make? Decision Fatigue: What it is and how it’s killing your focus, motivation, and willpower How Willpower Works: How to Avoid Bad Decisions When Thinking is Hard: Managing Decision Fatigue You're facing a lot of choices amid the pandemic. Cut yourself slack: It's called decision fatigue. What is Decision Fatigue? The Science of Decision Fatigue How to Identify When You're Experiencing Decision Fatigue The Overwhelmed Brain Defaults An Interview with Wendy Wood Bikeshedding Time Discounting Get Your D.O.S.E. of Brain Chemicals An Interview with Roger Dooley An Interview with Nikki Rausch Check out (and preorder!) my upcoming book, Unlocked, on Amazon, Bookshop, and Barnes & Noble If you are outside the US, please complete this form to be first to know when the book is available near you AND to help show there is a presence in your country to speed along international agreements and get it to you faster!

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. 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: [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: 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 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: Ripple book Cowry Consulting

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. 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: [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.  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 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: Dectech Dectech on LinkedIn Lloyd’s Case Study Deliveroo Case Study Behaviourlab Alchemy from Rory Sutherland Designing for Behavior Change by Steve Wendel Good Habits Bad Habits by Wendy Wood The Mind is Flat by Nick Chater NUDGES & Choice Architecture Anchoring and Adjustment Relativity The Truth About Pricing Framing What Is Value? Loss Aversion Priming Habits Interview with Wendy Wood Apple Card Interview with Steve Wendel Interview with Louise Ward Check out (and preorder!) my upcoming book, Unlocked, on Amazon, Bookshop, and Barnes & Noble If you are outside the US, please complete this form to be first to know when the book is available near you AND to help show there is a presence in your country to speed along international agreements and get it to you faster!

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! 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: [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 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 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: 3 Ways You Can Limit Everyday Distractions Dan Ariely Interview NUDGES & Choice Architecture Incentives – The “N” In NUDGES Understanding Mapping: The “U” in NUDGES Defaults: The “D” in NUDGES Expect Error: The “E” in NUDGES Give Feedback: The “G” in NUDGES Vision Does Not Happen In The Eyes, But In The Brain – On The Sense of Sight Why Burnt Popcorn Has Derailed So Many Meetings – On The Sense Of Smell Why You Actually Taste With Your Nose – On The Sense Of Taste Did You Hear That? – On The Sense of Hearing Why Picking Something Up Makes People More Likely To Buy – On The Sense Of Touch Roger Dooley Interview Nir Eyal Interview Understanding the Problem Check out (and preorder!) my upcoming book, Unlocked, on Amazon, Bookshop, and Barnes & Noble If you are outside the US, please complete this form to be first to know when the book is available near you AND to help show there is a presence in your country to speed along international agreements and get it to you faster!

Matt Wallaert, a behavioral science pioneer and author of "Start at the End," shares his extensive experience applying behavioral science in industry. He discusses how to build products that drive real change and highlights the need for ethical applications in the field. The conversation dives into concepts like behavior modification and effective experimentation, challenging outdated beliefs while advocating for compassion-driven solutions. Wallaert's insights inspire listeners to embrace behavioral science's potential in fostering innovation.

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: 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 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: Good Habits, Bad Habits Wendy Wood at USC Marshall Wendy on Twitter Why Our Brains Love Nostalgia & Traditions Priming Interview with Dan Ariely How to Set, Achieve & Exceed Brainy Goals NUDGES & Choice Architecture Incentives Time Discounting Interview with Roger Dooley Interview with Steve Wendel Peloton The Sense of Sight Interview With Nir Eyal Game Theory Habits Interview with Dr. Julie O’Brien Get Your D.O.S.E. of Brain Chemicals How to Finally Change Your Behavior (So it Sticks)

While researching for my book (which will be coming out in May 2021!) I had the joy of speaking with several dozen amazing people working in applied behavioral science and behavioral economics. People from around the world doing such cool things, wonderful research projects, and so much I’m excited to share with you. You have already been hearing from a lot of them throughout the most recent interviews on the show, and they continue into 2021. One thing that I found from interviewing so many people about their work is that even when there are different frameworks/names for the approach/unique models for applying behavioral science, most everyone agrees on one thing: where most businesses or entities go wrong is at the very beginning.  When you are trying to solve a problem (or want to apply behavioral economics to nudge behavior or help people make better decisions), many of the projects fail or don’t get off the ground because there isn’t enough time spent identifying the real problem.  This first crucial step is what we are going to be talking about today, to help you as you think about applying behavioral economics in your own business, and I’ll share some of the same tips I give to my own clients and students in this process (and, also, this is a sneak peek into some of what you’ll find in my book…which I am absolutely bursting to be able to give you all the details about…but I have to wait a little longer…soon!) Alright...let’s talk about that most important step in applying behavioral economics: Identifying the problem. Show Notes: [01:51] Today I am going to discuss the importance of understanding the problem–the first crucial step when applying behavioral economics in your own business.   [02:21] Thank you to all the listeners who voted in the first-ever Habit Weekly Awards, which were announced last week. The Brainy Business won for the best YouTube Channel in behavioral science!  [04:23] It is really easy to find the right answer to the wrong question. When you don't invest enough in finding the right question, you end up putting a lot of effort, time, money, and other resources into fixing something that isn’t going to actually get at the root of the behavior. [05:47] I’ve talked about questionstorming several times on the show before (you all know how much I love questions!) Great questions are AMAZINGLY powerful, and in general, people don’t spend enough time asking questions. [07:44] The people who change the world think longer about the problem before they start fixing them. If you want to make change happen and do amazing things, one of the best ways to do that is to spend more time thinking about problems instead of just accepting the first or second thing you think is wrong. [10:07] Revisiting how The Littery proved that their incorporation of behavioral economics and working with the brain got people to willingly throw away and properly sort their garbage. [11:59] Change doesn’t have to be hard. Changing the natural rules of the subconscious brain that have been developing for generations is hard. Understanding them and working with those habits can make it so seemingly insurmountable changes become easy. [13:04] When you use your conscious brain to try to explain to people how they should change their habitual behavior within the subconscious, logic isn’t gonna do it. You need to understand what DOES motivate people, like a lottery, and incorporate it into the behavior so it is easy for them to change. [14:34] By taking a step back and really thinking about the way the brain works and how to align with it you are able to make it so change is much easier than it seems on the surface.  [16:36] Being curious and asking good questions allows me to appeal to the subconscious brain. I can learn about the situation while helping them feel valued and involved in the process. Taking those few extra moments to understand the problem makes all the difference.  [17:21] Even when someone asks you explicitly for something, or you are sure you know the root of a problem, it can usually benefit from a little more thoughtfulness. [18:42] When you consider the problem in a vacuum or assume the problem you see is the only true problem, you will often end up finding that right answer to the wrong question. [20:13] Simple changes can make a huge difference in adoption and satisfaction when you take the time to fully evaluate and understand the problem. [22:51] Give yourself permission to spend longer thinking about problems. Reflect on them, ask questions, and poke holes in them.  [24:15] For now, just focus on finding one thing a day where you can challenge an existing belief or problem. [24:46] 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: 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 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: The Award-Winning Brainy Business YouTube Channel Habit Weekly Award Winners Interview with Samuel Salzer Interview with Dan Ariely Interview with Tim Houlihan Interview with Steve Wendel Interview with Michael Hallsworth Interview with Colu How To Set Up Your Own Experiments Questions or Answers Framing Confirmation Bias Focusing Illusion Herding Loss Aversion

In today’s episode, I’m excited to introduce you to Dr. Michael Hallsworth, managing director at Behavioral Insights Team North America and co-author of the new book, Behavioral Insights. Before that, he led their global work on health and tax for five years. Michael was previously a Senior Policy Advisor in the Cabinet Office of the UK government and has in-depth experience in both policy development and service delivery for national governments and international organizations. He has also been a leading figure in developing the field of applying behavioral science to government, having authored several influential frameworks such as EAST, Behavioral Government, and the MINDSPACE report (which has been cited more than 800 times to date). His work has been published in The Lancet, the Journal of Public Economics, Nature Human Behaviour, and more. His new book, Behavioral Insights, which was co-authored with Elspeth Kirkman and published by the MIT Press, was released in September. When you get yours, if you opt for the physical version, you’ll see it’s this adorable little pocket-sized version of a book. A little smaller than most these days and it has really great full-bleed callout pages. Michael has worked on so many amazing projects over the years, I’m honored he is sharing some of them with us today--and some great tips for approaching your own research and testing, based on their book Behavioral Insights.  Show Notes: [00:46] Today I’m excited to introduce you to Dr. Michael Hallsworth, managing director at Behavioral Insights Team North America. [03:48] About ten years ago Michael started working in an organization that was all about how you apply evidence to improve the way government works.  [05:43] The Behavioral Insights Team includes 200 people across the world including Sydney, Paris, New York, and Toronto. They take behavioral science and try to improve the way policies and services are designed and the way government works.  [07:51] Michael shares a project he is really proud of that relates to antibiotics prescribing in the UK.  [09:35] They found a 1% decline in antibiotic prescribing at the end just by sending a letter from England’s Chief Medical Officer and giving information based on social norms. [10:29] In Australia, they built on the antibiotic project. Bec Weeks shared about this in her interview on the show (episode 119). It has also been done in Italy and other countries as well.  [12:21] On Generalizability: They have seen studies with surprisingly similar results, but that isn’t always the case.  [13:36] The key is trying to have that productive tension between retaining the active ingredient that worked, but adapting it so it continues to work elsewhere. [14:36] Testing is very important. We may see something that works across the board, but we still should be questioning it and looking at what is different in other scenarios.  [16:01] Most of the frameworks they share in the book have some aspects in common around identifying the goals and behavior upfront and then going deeper to understand what is happening.  [16:59] Then they try to come up with interventions that attempt to address the factors you have seen. Then you should do the implementation and testing of those solutions or interventions.  [17:19] Rather than just stopping at the result phase, ask “How might we take this result and help it be used elsewhere?”  [18:37] The ten-stage framework in the book takes you through all these different steps from start to solution.  [20:01] Michael shares a story about a policy project where they implemented a higher-level strategy around the sugar drink tax in the UK.  [22:01] It is very important to understand the problem and ask the right questions before you start implementing things.  [23:25] They discuss the “macaroni and cheese study” by Barbara Rolls about portion size.  [25:48] Micheal shares about their rapid trials with cities for communicating urgent messages to their residents during the pandemic.  [27:47] They looked at the best way of communicating proper face masks. [29:30] The Behavioral Insights Team has worked on a lot of different projects. He recalls a carpooling project he worked on which had no effect.  [29:54] They publish an annual report and they are very open about projects that didn’t get a result because it may point towards the fact that a bigger intervention is needed. [31:04] If all we ever see is what goes really well or what was successful and don’t look at anything that wasn’t, it just creates a completely different perspective on the field and sets things up differently.  [32:23] At the end of the book they talk about bigger policy issues and their criticisms of the approaches. They try to explain these issues and give ways forward. [34:01] At the beginning of the book they talk about the 3 Pillars of Behavioral Insights.  [36:39] It was awesome to learn about the way the Behavioral Insights Team may approach problems so those looking to apply behavioral economics within their business have a framework that could work well for them as well. [37:24] Don’t forget to check out 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: 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 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: Dr. Michael Hallworth on the BI Team Website Michael on Twitter Behavioral Insights 👈🏻get your copy of the book! Nudge vs. Superbugs: A Behavioural Economics Trial to Reduce the Overprescribing of Antibiotics Reductions in Portion Size and Energy Density of Foods are Additive and Lead to Sustained Decreases in Energy Intake Framing Interview with Bec Weeks Herding NUDGES & Choice Architecture Incentives Interview with Will Leach Coronavirus and How the Human Brain Responds to Pandemics Survivorship Bias How To Use Behavioral Economics to Create Thriving Cities, an interview with Colu Social Proof

Today I am so excited to introduce you to Tim Ash, his new book Unleash Your Primal Brain is currently available on presale, to officially launch in April 2021, but everyone listening now can order it direct from Tim using the links in the show notes and you’ll get an autographed copy, which is pretty darn cool!  Early praise from the book has come from Robert Cialdini, Jay Baer, Phil Barden, Will Leach, Roger Dooley, and Nir Eyal (recognize some of those names from past episodes of the show?).  Forbes has named Tim a Top-10 Online Marketing Expert, and he was also named an Online Marketing Influencer to Watch by Entrepreneur Magazine. He had his own podcast, has published over 100 articles, and spoken at more than 200 conferences around the world. His past clients include Google, Expedia, eHarmony, Facebook, American Express, Canon, Nestle, Symantec, Intuit, Costco, and many more. I think it’s safe to say, Tim knows his stuff and I’m honored to have him with me here today.  You know there are a lot of past concepts that will come up today (including last week’s intentionally planned episode on brain chemicals…totally ties in with understanding the primal brain!) and they’re all linked for you in the details below! Show Notes: [00:42] Today I am so excited to introduce you to Tim Ash, his new book Unleash Your Primal Brain is currently available on presale, to officially launch in April 2021. [03:39] Tim’s interest and fascination with the brain started very early and were a huge part of his college studies.  [05:43] Brains didn’t just pop into existence.  We are the product of evolution and in order to understand us, you have to understand the whole evolutionary art.  [06:42] Sophisticated brains are at least 500 million years old.   [07:18] Insects and animals need brains because we are in a world of movement; brains are really only to help us think fast enough to survive in the environment (which is why plants don’t need brains but still develop adaptive tendencies).  [07:58] The brain is a very energy-intensive system.  [08:29] The body is balancing between digestive, voluntary movement, and the brain. When you run out of energy you need sleep and rest.  [09:08] Whenever we are not doing computation or planning tasks, we default to modeling our environment.   [11:26] One of the key insights in Tim’s book is understanding that we made an evolutionary bet on culture spread. We can learn more from our surrounding tribe by copying than we can ever in a lifetime of direct experience. That gives us our tribal edge.  [13:38] We are born covered in fat and we use that fat to isolate the neurons in the brain so there’s no cross-talk or electrical issues.  [15:15] We get enjoyment by helping others and transmitting knowledge.  [18:09] One of the huge puzzles that needed to be unlocked from an evolutionary standpoint was “Who (and what) do I learn from?” We want to learn from successful examples.   [19:13] We are wired to learn from people that are most like us.  [21:17] Once somebody locks into a tribe it is very hard to have them accept other views. A big task is pulling towards the center and somehow having a larger circle of empathy.  [23:19] When employees embrace different teams (creating silos) they make it more difficult for the business to be successful.  [25:06] Thinking we are individuals and our happiness matters is a very western idea.  Most of the world thinks more communally.   [27:06] We are hypersocial animals with a need for connection. The worst thing you can do to somebody is isolate them.   [28:46] Isolation literally drives us insane.   [29:37] As teenagers, you are transferring your allegiance from your parents to your larger group of peers. Parents have less influence than their peers.  [32:36] We do a lot of our brain development out of the womb when it really should be prenatal.  It is really important to make the first five years solid from a nutritional, sleep, and social attachment standpoint because you can’t undo it later in life.   [33:29] Direct experience with other people and forcing them to walk a mile in other peoples’ shoes is your best bet for creating good humans.   [34:08] Primarily storytelling is to simulate experience and do things we can’t directly do.  The other unestimated reason for storytelling is to maintain cohesion and the values of our tribe so knowledge spreads faster.  [35:30] The cultural package determines how we examine and experience the same story.   [38:41] Tim’s book really helps us understand the brain and how that ties into marketing, messages, interpersonal relationships, and more.   [40:35] Tim wrote his book to explain the why behind the brain and behaviors. If you want to understand the why behind the brain, you have to see how it all evolved.   [41:23] Grab Tim’s book here and get an autographed copy (limited time offer).  [42:25] It is so important to understand genetics and history to really understand behavior. [44:22] If you haven’t connected with me yet, please do! I love to give shout outs and spread the love whenever I can. You can find me, Melina Palmer and follow the company page of The Brainy Business on LinkedIn, and I’m on all the other socials as @thebrainybiz. 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 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: Primal Brain Website Tim’s Website Unleash Your Primal Brain Book Tim on LinkedIn Dove Real Beauty Campaign Always Super Bowl Ad 2015 What eCommerce Can Learn From IKEAS’s Offline Success The Time Machine Book Raising Good Humans: A Mindful Guide to Breaking the Cycle of Reactive Parenting and Raising Kind, Confident Kids Get Your D.O.S.E. of Brain Chemicals, a Behavioral Economics Foundations Episode Herding Loss Aversion Biases Toward Novelty and Stories Interview With Author Nir Eyal Mirror Neurons Interview with Dr. Gleb Tsipursky Interview with Will Leach Interview with Roger Dooley A Behavioral Economics Analysis of Costco Biases Toward Others – Including Groups IKEA Effect