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

Today’s episode discusses why every business needs to revisit their lead magnets, freebies, and opt-ins right now. I’ve mentioned on a couple of recent episodes that I have been working with a lot of clients on lead magnets, most specifically with those in the BE Thoughtful Revolution membership group where we have spent over a month working through updating everyone’s lead magnets, opt-ins, freebies, as well as setting up solid drip campaigns.  For many, this was an opportunity to create their first lead magnet. Perhaps it was on their to-do list for a very long time, but they never quite got around to it.  Now is the perfect time to work on your lead magnet for a couple of reasons. First, the environment has changed. Maybe your old opt-in is outdated and doesn’t make sense anymore or maybe it is still relevant but there is something else you could share that would be even more impactful and tie into what matters to people today, while still being true to your brand. One of the reasons I decided to do this episode right now is because this is so important for every business to be successful during COVID and beyond. CLICK HERE FOR YOUR FREE DOWNLOAD! Show Notes: [01:32] Now is the perfect time to work on your lead magnet for a couple of reasons. [03:26] You are giving something away for “free” which is valuable enough that the recipient is willing to reciprocate by giving you their email address and knowing that they will likely be placed onto your larger list. [04:31] Episode 3 was about what a lead magnet is and if you need one (and in general, the answer to that is yes). At any time, businesses can benefit from having at least one opt-in or freebie. [06:42] Just because you started with one lead magnet doesn’t mean you need to keep it. I know there was an investment to create it, but if it isn’t aligned with what people need today it is time to swap it out. [07:30] There are a few things different today that impact the style and content of what makes a lead magnet desirable. [07:52] Your customer’s brain is overwhelmed so quick wins are more important than ever. [08:41] When the podcast started, I began creating freebie worksheets.  Most of them are one page and have a few tips and lines to take notes. Some of them are two pages, but they are all very simple to use and apply the learning from a specific concept or topic. [10:42] I created a new freebie (Master Your Mindset Mini-Course) which lets people see where all the courses are housed and get a taste of what a course from The Brainy Business is like.  [12:20] If I was looking to create a new lead magnet, I would start by thinking about what people need now. What is keeping them up at night? What expertise do you have to share in a simple, easily digested way so they can get a great quick win and build a positive association with your brand? [14:19] You will feel like whatever you are creating is not enough. That it won’t justify the need someone has or feel like it is worth the time or exchange of their email address. [15:29] Too much means no impact on a lead magnet. [15:53] One quick win means it is direct, to the point, and easy to take action on. [16:52] Being instantly accessible is critical to a lead magnet’s performance because people don’t like to wait for things these days. [18:01] Having an automated response that is less detailed but can be sent within seconds of hitting submit is WAY more important on this initial opt-in item. [19:39] A solid lead magnet will showcase you and your expertise and make them associate you with the items they can hire you to solve.  [20:56] Lead magnets are about overall brand awareness and the long game. [22:37] Remember that the lead magnet you set up now, especially if people can’t buy from you in your traditional model, is about a long game. You are laying the groundwork today for a future state that could be many months from now. [23:23] There are all sorts of drip campaigns, but whatever you create should have at least three emails and be thoughtful about how it ties in with the lead magnet, customer experience, and the future offers that will be made to them. [26:49] Remember, now is the time for everyone to look at and rethink their lead magnet because you need to make sure it still fits the market.  Is this what people need today? What would make it more valuable? [27:02] There are more people online than ever before and they are looking to solve problems that never existed. People are trying out new types of businesses and changing their habits. It is the perfect time for a company to provide value and create new loyal connections. [28:16] Less is more, especially in these times. [28:54] Want to get the full Lead Magnet Course? It’s EXCLUSIVE for members of the BE Thoughtful Revolution – use the code BRAINY when you join to save 10% 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 Brainy Mindset Course – use code BRAINY to save 10% BE Thoughtful Revolution – use code BRAINY to save 10% The 10 Behavioral Economics Concepts You Need To Know (and how to apply them) ebook Articles and Past Episodes: 3 Ways to Stay Connected While Social Distancing It’s Time to Rethink the Way You Attract Customers. Here’s How Global Advertising Standardization in Japan and the United States: a Closer Examination of High-Involvement Products. Lead Magnets to Increase Subscribers Referees and The Confirmation Bias How the Confirmation Bias Affects Sports Betting What is mercury retrograde? And is there anything to it? 32. The Overwhelmed Brain and Its Impact on Decision Making 51. Time Discounting: The I’ll Start Monday Effect – My Favorite Concept!: A Behavioral Economics Foundations Episode 23. Reciprocity: Give A Little, Get A Lot: A Behavioral Economics Foundations Episode 3. Do Lead Magnets Work and Do You Need One? 91. Coronavirus and How the Human Brain Responds to Pandemics 99. Bikeshedding: Why The Simplest Tasks Can Keep You Stuck (A Behavioral Economics Foundations Episode) 93. Normalcy Bias: Why We Love To Know What’s Coming And How It Keeps Us Stuck (a Behavioral Economics Foundations Episode)

Today, we are going to be covering confirmation bias – I know this sounds like one of those concepts you probably think you “get” and that it might not be necessary to listen to...but believe it or not, that is actually your confirmation bias talking. This episode will help everyone understand just how much confirmation bias is impacting your life and business. I will give examples and tips throughout the episode.  In its most basic form, confirmation bias comes down to the brain’s desire to be correct and the subconscious filter deciding what gets through and stored...and what gets ignored. Because the subconscious is working from established, proven rules to make these choices, it is looking for stuff that fits those existing rules.  While the brain can look and find things that disagree with its perspective, that isn’t the natural tendency. The easiest thing to do - the most satisfying thing - is to look for items that confirm what you believe. That makes you feel safe. This is why two people can witness the same event and have completely different interpretations of what happened. You are seeking out different information and retaining different pieces to suit your brain’s needs. Some of these are ingrained in us genetically over thousands of years, but many of them are built over our lifetime. Confirmation bias doesn’t have to be a bad thing and it can very much work to your advantage in life and business. The flip side of the confirmation bias coin is knowing that your brain naturally does four things and so if you are selective about your goals and what you want to change in your life, you can set up your brain’s natural tendencies to align with them. Show Notes: [00:57] This episode will help everyone understand just how much confirmation bias is impacting your life and business. [03:10] The numberless scale (Shapa) we discussed in episode 101 that has the potential to change the way we think about health and wellness. It’s a super cool product and you should definitely check it out. [04:28] In its most basic form, confirmation bias comes down to our brains’ desire to be correct and the subconscious filter deciding what gets through and stored...and what gets ignored. [06:57] You could see the exact same event as someone else and have a completely different interpretation based on your existing beliefs and confirmation bias. [08:19] Confirmation bias is especially ramped up and more prevalent in circumstances that are tied with emotions. [08:39] Melina shares the four main ways you see confirmation bias.   [09:44] Kids’ behavior does not get more hyperactive when they have sugar. [12:19] You will seek out information that supports your belief, and be more likely to believe, remember and share those items that support your belief. [15:06] This reinforcing tendency is because of illusory correlation, which is when we overestimate the relationship between two items even when no relationship exists or it is very weakly associated. [16:53] We humans are pretty bad listeners by nature because our brains are processing so much information at any given time. [18:21] For many people in business, if you aren’t confident in your offers or pricing, you may end up recommending something smaller than they would actually want or need because it feels better for you in the moment. [19:49] It is important to not start the conversation with a predetermined recommendation before they have had a chance to tell you about their situation. [23:29] If you can convince your brain that it IS worth it and that the price is reasonable, they will be more likely to hear it that way. [24:39] Look at where you may be biased in a way you don’t want to be, and try to be more open minded. [25:43] If you are selective about your goals and what you want to change in your life, you can set up your brain’s natural tendencies to align with them. [26:15] If you want to set up a new belief (and only pick one at a time until it becomes a habit) then you can eventually reinforce it until you naturally confirm it all the time. [27:18] Eventually, I changed that confirming bias and pushed past that belief and started to think of myself as a runner. [28:20] People who have been injured will often see themselves as a victim, especially while dealing with the legal stuff. [30:12] Being able to run and train up for my half marathon is very important to me, and picking new beliefs that I want to confirm are central to that success. [31:27] Athletes, actors, really successful business people all use visualization techniques and affirmations to help them reach their goals. [33:18] Next week, in episode 103 I am doing an episode dedicated to rethinking your opt-ins and lead magnets during coronavirus and beyond. 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 Brainy Mindset Course - use code BRAINY to save 10% BE Thoughtful Revolution - use code BRAINY to save 10% The 10 Behavioral Economics Concepts You Need To Know (and how to apply them) ebook Articles and Past Episodes: Busting the Sugar-Hyperactivity Myth Is the Confidence Gap Between Men and Women a Myth? Confirmation bias: believing what you see, seeing what you believe How Confirmation Bias Works Referees and The Confirmation Bias How the Confirmation Bias Affects Sports Betting What is mercury retrograde? And is there anything to it? 11. Anchoring & Adjustment: The 1 Word That Increased Sales 38%: A Behavioral Economics Foundations Episode 12. Relativity: The Brain Can’t Value One-Off Items: A Behavioral Economics Foundations Episode 101. Dan Ariely Interview: Discussing Shapa, the Numberless Scale 16. Framing: How You Say Things Matter More Than What You’re Saying: A Behavioral Economics Foundations Episode 100. 100 Episodes – 1 Big Insight 95. Hate Being on Camera? Understand Your Brain’s Biases To Change Your Mind

Today’s episode features a discussion with Dr. Dan Ariely – you know that name by now right? We talk about the numberless smart scale from the company he co-founded, Shapa, and all the research behind it.   I am very excited to introduce you to Dan Ariely, one of the best known behavioral economists in the world whom I have mentioned many times on the first 100 episodes of the show, and I know I will continue to do so after he helped me kick off these next hundred. He wrote Predictably Irrational and several other books and has done some amazing research. As I mentioned in the opening, Dan has worked on a huge amount of projects, and while this conversation could have gone in a million directions, we are specifically talking about Shapa. The company he co-founded showcases a numberless scale that was created to change the way we all think about our health and make it easier to do something that many of us find scary…stepping on the scale. The discussion ties back to a bunch of past episodes (including loss aversion, partitioning, the focusing illusion, herding) as well as on an experiment I did which was influenced by one of Dan’s studies from Kenya. We also talk about overall health (emotional, physical, financial) and how it is all related. I hope you enjoy the conversation as much as I did, and thank you again for joining me Dan! CLICK HERE FOR YOUR FREE DOWNLOAD! Show Notes: [02:18] In this episode we are specifically talking about Shapa. A company Dan co-founded for a numberless scale that was created to change the way we all think about our health. [03:26] Shapa has many components. How would a social scientist approach helping people lose weight?  [05:04] The struggle for health is a daily struggle. You can’t be healthy five days a week. It doesn’t work. Your healthy life needs to start in the morning.  [07:08] They started studying the bathroom scale. They learned it is a good idea to stand on the scale every morning, not at night.  [08:01] The second thing they learned is that weight fluctuates from 2-8 pounds a day. (wow!) [09:38] They also learned that people think their weight will change very fast if they go on a diet. The reality is that it can take 8 days to two weeks to see results.  [12:31] A year where nothing bad happens is an amazing year.  [12:36] The story of obesity in the U.S. is a story of gaining a little bit throughout the year and not losing - especially in November and December.  [13:39] Shapa created this 5 point scale which includes, “congratulations nothing bad happened!” They tested it and the studies were great.   [15:34] We are obsessed with absolute levels. People usually want to know how what they are doing is improving their health and they want to be motivated.  [16:55] When people go to the doctor they get stressed and their blood pressure goes up. If you go to the doctor and you are the kind of person that gets stressed because you’re seeing a doctor, they might prescribe you blood pressure medicine because you are stressed because of the doctor not because you are really stressed usually.   [18:29] The way they start the process with Shapa is that they ask people to tell them about their environment.  [19:54] Suggestions are sorted by the probability that you will take them and then they give you tips.  [20:07] They focus on small changes and do it for two weeks and then add the next one.  [22:53] Look with fresh eyes from social science about little things in life and then use the digital revolution to really change things.  [24:51] The problem is that the scale has become so negative and the numbers are so depressing.  [25:44] How much do you want to be in a race where the best you can do is not that bad?  [27:59] We need to change our thinking about finances and health. We need to do more things that give people a sense of success and achievement. [30:34] Finances and health are both long-term and often painful struggles; we need strong motivation to achieve there.  [32:17] What are the incentives we can give people to behave in a certain way? [33:30] Shapa has five levels and they each have a different color. [34:39] Mostly we want to have no change with improvements from time to time.  [35:12] Focus on the things where you can make the biggest behavioral impact. [37:02] The feeling of success is important to keep people motivated. [39:46] It is time to fix some of the habits we got wrong during the coronavirus crisis. It is time to take care of ourselves and feel better about ourselves.  [43:10] It always comes back in this way, and you never know what is around the corner. [43:33] If you are working on a health journey as well, with a Shapa or on your own, let’s support each other and do this together - connect 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. Links and Resources: [spacer height="20px"]Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram Master Your Mindset Mini-Course The 10 Behavioral Economics Concepts You Need To Know AND HOW TO APPLY THEM Ebook The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube Center for Advanced Hindsight Dan Ariely My Shapa 61. Color Theory: When It Comes To Color, This 1 Thing Matters More Than Anything Else 98. Behavior Change at WW and Beyond, an Interview with Dr. Julie O’Brien 51. Time Discounting: The I’ll Start Monday Effect – My Favorite Concept!: A Behavioral Economics Foundations Episode 65. Can Behavioral Economics Increase Savings? 91. Coronavirus and How the Human Brain Responds to Pandemics 16. Framing: How You Say Things Matter More Than What You’re Saying: A Behavioral Economics Foundations Episode 35. NUDGES & Choice Architecture: Introducing Nobel-Winning Concepts: A Behavioral Economics Foundations Episode 89. Focusing Illusion: Why Thinking About Something Makes It Seem More Important Than It Is (A Behavioral Economics Foundations Episode) 81. How to Finally Change Your Behavior (So it Sticks) 9. Loss Aversion: Why Getting New Stuff Is Not The Same: A Behavioral Economics Foundations Episode 67. How to Get (and Stay) Motivated 58. Partitioning: Why We Eat More Cheetos From A Party-Sized Bag Than A Fun Size: A Behavioral Economics Foundations Episode 34. Optimism Bias: The Good And The Bad Of Those Rose-Colored Glasses: A Behavioral Economics Foundations Episode 21. Habits: 95% Of Decisions Are Habitual – Which Side Is Your Business On?: A Behavioral Economics Foundations Episode 100. 100 Episodes – 1 Big Insight 80. Celebrate! It’s more important than you think

It is amazing to realize that we have been together now for 100 episodes and that by the time this comes out there will be more than 180,000 downloads in over 150 countries. It is a significant understatement to say that the podcast has far exceeded my expectations for what it could be, and leading up to this milestone I have been reflecting a lot and trying to decide the best way to approach this important episode. I thought about doing 100 small tips and insights for 100 episodes (which would have been a very rapid-fire hour to be sure!) But, in the end, I have decided to boil that into the one really big thing that has set me and The Brainy Business apart. Looking back on these 100 episodes and the success I’ve seen in the podcast (knowing there is always a lot of opportunity to be better and do more) but relative to the “average” podcast, this one does significantly better, and there are many things I have done intentionally and because they are my natural style to help support that.  And, that is what I am going to try and articulate for you in this episode, with the hopes that it can bring some increased success for you as well – in whatever corner of the world you may be listening from.  This episode includes a lot of stories from my life and experiences that come together over time to show what I think is at the root of the success of the show and the business.  CLICK HERE FOR YOUR FREE DOWNLOAD! Show Notes: [02:30] The US still has the most downloads by far, followed by the UK, Canada, Australia and India, which have been in the top for some time. [03:03] California is the state with the most downloads.   [05:49] I have always been pretty confident in my abilities and generally stubborn, which has culminated in me having big dreams and ambitions that I expect will work themselves out.   [08:13] As legend goes, in 4th grade I walked to my teacher’s desk and politely explained that I was sure the assignment had been turned in and asked if I could go through the files to find it. She said yes, I went to the filing cabinet, found the missing assignment, got my grade changed to a 10 out of 10, and went on my merry way. [08:55] I am a classically trained opera singer and have done a lot of national anthems over the years.   [10:05] These stories from my childhood showcase some very important characteristics about me, my style, and my nature which have carried into my work and helped to make my business successful.  [11:42] I am proud to wear my bossy pants every day and have been my whole life.   [13:32] I believe it is important when you are marketing things to understand how everything works and the business comes together, from the warehouse to the sales floor. (With a story of my worst job ever!) [14:52] At the root of all this is a common thread that has carried into The Brainy Business. I believe I will be successful, even if something doesn’t work out. Even when something goes wrong I just assume it isn’t the end and that it will all work out for me in time. (A lesson from the peak-end rule) [15:51] Networking skills and genuine interest in people have also worked to my advantage in building my career. [16:37] When it came time to start the podcast, having the confidence in myself to know I could do it when I had to go out on a limb was scary, but exciting, and I looked at the silver lining. [18:18] This business is me. I own it and am confident in its potential just like I was as a 5 year old who wouldn’t misspell my name. [18:44] Every email, Linkedin connection, Twitter conversation, in person meeting after speaking at an event or person I happen to be seated next to at a conference is an opportunity to learn and engage. [20:01] I have dedicated time each week to have conversations with people who are looking to pursue careers or study behavioral economics or behavioral science to help them feel comfortable in the choices they make. [20:36] The story about how taking the extra step when responding to an email led to a relationship that blossomed with the Human Behavior Lab at Texas A&M University.   [23:24] Some people suggest concepts or topics, and then I get to give them a shout out when I cover that topic and it keeps everything moving up in a virtuous cycle.   [23:54] Most podcasts don’t make money. A lot of them cost businesses money in fact, but The Brainy Business has allowed me to have some amazing connections and clients and be profitable early on.  [25:29] Genuine interest in people, and a willingness to give the gift of time to have conversations that may never be more than just a few moments of interaction, but could turn into something amazing. [26:32] Whatever your vision is for the future, whatever you see for yourself, what you think the top of the mountain is, the place where you think you will say that you “made it,” that thing out there that you think is a big deal - you aren’t thinking big enough. [28:57] THE ULTIMATE LESSON: Be open to the possibilities of tomorrow, be generous and kind with your time and confident in your abilities. And, of course, be thoughtful in all you do. You are bigger than you can possibly imagine and you will do great things, I’m here to cheer you on, and if you haven’t reached out and connected yet, please do.  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. Links and Resources: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram Master Your Mindset Mini-Course The 10 Behavioral Economics Concepts You Need To Know AND HOW TO APPLY THEM Ebook The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube Using Behavioral Economics to Help Businesses Melina singing the National Anthem at a Seattle Mariners Game Center for Advanced Hindsight Dan Ariely My Shapa 73. Starbucks: A Behavioral Economics Analysis 83. How to Organize Your Brain with Behavioral Economics 86. Peloton: A Behavioral Economics Analysis 97. Peak-End Rule: Why Averages Don’t Always Matter (A Behavioral Economics Foundations Episode) 33. Inside the Texas A&M Human Behavior Lab 19. Herding: Come On And Listen…Everyone Else Is Doing It: A Behavioral Economics Foundations Episode 87. Social Proof: How to Use Herding to Boost Engagement and Sales

The podcast discusses bikeshedding, wasting time on trivial matters while neglecting more important tasks. It explains why these trivial details get so much attention and feel important in the moment. The podcast also emphasizes the importance of taking action, avoiding overthinking, and strategies for breaking free from bikeshedding.

Today, I am very excited to introduce you to Dr. Julie O’Brien, a behavioral scientist applying concepts from behavioral economics in business. In today’s episode, we talk about research Julie has done herself or is particularly interested in, both as part of her time as a principal behavioral scientist at the Center for Advanced Hindsight at Duke University (which, for those of you who don’t know, is lead by Dan Ariely, one of the best known behavioral economists in the world. He wrote Predictably Irrational and several other books I reference often on the show.  Julie is currently the Director of Behavior Change at WW.  I so enjoyed talking to Julie about all the amazing work she has been doing on bringing behavioral science out of the lab and testing things within real businesses – and I love all the practical applications of behavioral economics being applied to health and fitness. As many of you know, one of my top 3 goals is centered around health and I have been training up for a half marathon (admittedly, with some gaps recently…but back on the train!) as well as using my Peloton as I mentioned in the show. Julie talks a bit today about some research using the peak-end rule in health and fitness as well as so many other concepts and fascinating applications for behavioral economics. We touch on a lot of concepts in the conversations, and there are links to nearly all of them, including the episodes on memory biases, the peak-end rule, habits, goals, counterfactual thinking, the overwhelmed brain, optimism bias, fundamental attribution error, how to set up your own experiments, and more. We behavioral economists are working to help businesses to use and implement the learnings from the field to have stronger communication, and that is a big reason this podcast exists – to help you understand the concepts on a deeper, and more applicable level so you can try them out. Show Notes: [03:24] Julie is a behavioral scientist with many experiences.   [05:17] Julie did many different projects including traditional academic lab studies and applied field interventions at Duke University’s Center for Advanced Hindsight.    [06:45] They ran an experiment to understand the emotional experiences people have when they are faced with a medical decision. [08:28] They were interested in what happens to people when they learn about the details of this kind of colon cancer surgery. [11:12] They looked at the data and found the disgust emotional reaction that participants had after learning about the colostomy bag is what actually reduced their ability to remember information.    [13:04] We probably can’t (and shouldn’t) remove emotions from medical decisions completely, so we have different strategies to help people make the right choice.   [15:16] It raises interesting questions around nudge vs. shove and do we want to be making a judgment about what is actually rational in this case.   [16:22] It is all these different pieces of behavioral science. It is never just one concept at play. In this case, we have prefactual thinking, an overwhelmed brain, and different pieces of nudging. [17:18] One of Julie’s favorite studies was Zach Zenko and Dan Ariely’s study on how to get people to love exercise.   [18:04] Zach and Dan’s question was how could we reshape the exercise environment to make it more enjoyable or to make it feel more enjoyable so that people would be interested in repeated exercise.    [18:16] Often behavioral scientists look at the world as it is now and say if we were to assume that this is not the optimal design, how might we change the design to make it more optimal.   [20:37] Just by changing the way that we structure that workout we can actually change the way that people think about the workout which then influences their interest in repeating the workout.   [23:27] Julie and her colleagues did a study where they showed you could keep the baseline physiological sensation the same but you could change the way people interpreted that sensation so that it becomes less unpleasant. [24:26] When you don’t know exactly what is going on, your brain is conditioned to stop, but that is actually where the transformation happens.  [26:07] Often times we talk ourselves into stopping a little bit too soon, and if we could get a little bit further it would work out for us better in the long run.    [27:22] Julie is the Director of Behavior Change at WW. She was very excited to come to WW for many reasons.   [29:47] Working at WW is very exciting for Julie because it is a strongly mission-driven organization, tech organization and it is one that is based in science and has a very strong commitment to doing things rigorously and with scientific validation.   [30:57] There is a huge opportunity with technology to help things like habit formation and overcome challenges in the moment to have a huge impact. [33:03] Any company that is looking to support behavior change has to look at what the science says, what is relevant to consumers, what actually works in the real world, and finding that intersection to focus.    [36:21] Making it easy for people to do business with you and be successful can make a big impact on behavior.   [36:55] At WW there is a priority around what makes somebody healthy rather than just losing weight.  [39:33] Julie has been looking at the way we behave counter to what we might want to do with eating, weight loss, and dietary splurges.  [41:18] We tend to give ourselves the benefit of the doubt when maybe we shouldn’t.   [43:05] We are pretty good at adjusting within the same day for large dietary splurges, but we are not as good at adjusting from day-to-day.   [46:01] Julie is looking at how we help people enjoy those meals and make it fit into their overall plan so it doesn’t turn into something that they feel bad about or derails them or that they don’t have a plan for overcoming.   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.   Links and Resources: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram Master Your Mindset Mini-Course WW Center for Advanced Hindsight Julie on Instagram Julie on LinkedIn Julie on Twitter Predictably Irrational By: Dan Ariely Can You Have Your Vigorous Exercise and Enjoy It Too? Ramping Intensity Down Increases Postexercise, Remembered, and Forecasted Pleasure 34. Optimism Bias: The Good And The Bad Of Those Rose-Colored Glasses: A Behavioral Economics Foundations Episode 48. An Overview of Memory Biases 32. The Overwhelmed Brain and Its Impact on Decision Making 36. Incentives – The “N” In NUDGES: A Behavioral Economics Foundations Episode: A Behavioral Economics Foundations Episode 38. Defaults: The “D” in NUDGES: A Behavioral Economics Foundations Episode: A Behavioral Economics Foundations Episode 97. Peak-End Rule: Why Averages Don’t Always Matter (A Behavioral Economics Foundations Episode) 16. Framing: How You Say Things Matter More Than What You’re Saying: A Behavioral Economics Foundations Episode 63. How To Set Up Your Own Experiments 70. How to Set, Achieve & Exceed Brainy Goals 68. Counterfactual Thinking: Why We ‘What If’ And ‘If Only’ (A Behavioral Economics Foundations Episode) 81. How to Finally Change Your Behavior (So it Sticks) 21. Habits: 95% Of Decisions Are Habitual – Which Side Is Your Business On?: A Behavioral Economics Foundations Episode 86. Peloton: A Behavioral Economics Analysis 92. Fundamental Attribution Error: Why the Pot Insists on Calling the Kettle Black (a Behavioral Economics Foundations Episode)

Imagine any experience, from eating out to buying something online, and consider these questions you have probably heard a lot: “How was everything?” or “How did it go?” How do you answer these questions? More often than not you probably just say “fine” but if you were really going to think through and give the most thoughtful possible answer...how much more effort would you really put into the response and does it actually encompass any more of the truth than the quick reply? This is where the peak-end rule comes into play.  The peak-end rule is one of those concepts that is super easy to understand and get your arms around but it can be difficult to overcome and implement the logic in practice.  Essentially, the peak-end rule shows us that people do not rate experiences on all of their details…instead, only two points are used to determine the overall opinion of the event: the peak (which can be either positive or negative) and the end. The peak-end rule can have a huge impact on your business.  First, start by knowing what type of experience people have with you. This can help determine what peaks you are dealing with, and where they should fall in the overall experience. The best thing to learn from this rule is that while it is important to consider everything in an experience to ensure you don’t have any big negative peaks you aren’t aware of...At the end of the day, there are only two points that really matter so you can focus on those two things and not have to worry so much about everything else. During the episode, I will talk about how the peak-end rule impacts brand engagement, personal relationships, employee reviews, medical procedures, pricing, and more. Show Notes: [00:43] Today I am talking about the peak-end rule, which ties into how people rate experiences.   [02:57] The peak-end rule shows us that people do not rate experiences on all their details instead only two points are used to determine the overall opinion of the event: the peak and the end.   [04:48] Your brain is probably exhausted thinking about all the thought that needs to be put into an adequate response about your experience.  That is why the peak-end rule, a heuristic or rule of thumb, has been so widely adopted.   [05:15] What your brain ends up doing is forgetting about everything except for the peak point and the end point.  All the other things sort of fade into the background.   [06:50] Having a little time for a negative peak to taper off and not be the final moment makes the entire experience feel better.   [08:23] When the peak is negative, you don’t want it to line up with the end because it will make the entire experience feel particularly awful. In the opposite situation, when the peak is a really good thing, ending on the peak is actually very valuable.   [10:39] So knowing what type of experience people have with you can help determine what peaks you are dealing with, and where they should fall in the overall experience.  [11:37] It is important to break this process down into its smallest pieces. The free Master Your Mindset Mini Course has a worksheet that can help a lot with this. [14:16] Whenever possible, don’t get bogged down in what you are doing now and try to tweak little by little, instead look at what the experience would be in your ideal state and consider how you would build that out.   [15:32] The best thing to learn from this rule is that while it is important to consider everything in an experience to ensure you don’t have any big negative peaks you aren’t aware of, when there are only two points that matter you can focus on those two things and not have to worry about everything else.  [17:28] I’m not suggesting that you should lower the average across all experiences, but you don’t have to worry about every single moment and data point so much.   [17:49] Unexpected moments of delight drive loyalty and ongoing happiness with your brand.  [19:17] Even if you don’t have the opportunity to create a positive peak, putting a little effort into ensuring the last moment isn’t the worst can have seriously positive benefits on the overall perception of the experience.   [20:49] REAL LIFE EXAMPLES starting with customer service experiences.   [22:28] Businesses will always benefit from thinking about the long term experience with you.   [22:43] When you treat everyone as if they might come back someday (look on the bright side, and don’t burn bridges) it can help with overall reputation and memory of working with you.   [24:42] We are going to think outside of the box now and consider employee reviews.   [25:48] As an employee, it is important to know that most managers will look at the peaks and very recent stuff when working on your review, even though it is supposed to encompass the whole year. The brain has a hard time grabbing all that information.   [27:47] When you are tasked with giving an unbiased and holistic review of a giant span of time (like a year) it is important to not be swayed by the peak-end rule, so taking notes during the year is important. See the links below for an article I wrote on this with steps for managers to follow.  [28:18] The last place I want to touch on where the peak-end rule comes into play is pricing strategy.   [29:27] The peaks are setting anchors for your brain to help you determine value and how you ultimately feel at the end even when the final number is exactly the same. (Example using home values.) [29:58] The stock market is a great example of this.  People are really good at building big dreams around the highest value on their portfolio even though those numbers are always changing and not guaranteed.  [31:43] Experiences can be lengthy or short, and no matter how many points we could consider to evaluate them, more often than not, there are only two points considered: the peak and the end.   [32:06] Look at all your experiences. Both the ones you go through each day and for your customers to find points where you can use the peak-end rule to your advantage and increase the overall experience people have with you and your brand.   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.   Links and Resources: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram Master Your Mindset Mini-Course This Brain Bias is Affecting Your Employee Reviews Cognitive Biases: Peak-End Effect Dynamic Pricing with Loss-Averse Consumers and Peak-End Anchoring Applying the Peak-End Rule to Reference Prices When More Pain Is Preferred To Less: Adding a Better End 96. How to Make it Easy to Do Business With You With Nikki Rausch 13. Adjusting Your Mindset: Tips To Overcome Imposter Syndrome And More: A Behavioral Economics Foundations Episode 11. Anchoring & Adjustment: The 1 Word That Increased Sales 38%: A Behavioral Economics Foundations Episode 8. What is Value? 60. Surprise and Delight 9. Loss Aversion: Why Getting New Stuff Is Not The Same: A Behavioral Economics Foundations Episode 30. Booms and Busts

I am very excited to bring back Nikki Rausch, from Sales Maven and one of my very favorite people on earth. You have heard Nikki’s name on the show before, and even her voice a couple of times – she is the first repeat guest ever on the show…but last time she was here she was doing the interviewing when the brainy pricing course first launched. Now, I’m asking the questions and we are having more of a comfortable conversation about ways to make it easy for people to do business with you. I’ve had the joy of knowing Nikki for over 5 years now (almost 10? I’ve lost count!). We were in the same networking group and always got along. When I started doing freelance work while still in a corporate space, Nikki was one of my early clients – she hired me to edit her second book! I’m actually mentioned in the acknowledgements for her book Buying Signals, (though my last name is different). That book is awesome by the way, as is her third book The Selling Staircase. Nikki and I don’t study exactly the same thing, but her background in neuro-linguistic programming (NLP) has a lot of similarities to behavioral economics. It is understanding and speaking better to the brain’s natural tendencies…so it is no wonder we get along so well.  We have an amazing conversation about making it easy for your potential clients to do business with you. Nikki shares tips that are aligned with the principles of NLP that can really make a difference when dealing with clients and potential clients. We talk about how to make it easy for your customer to take the next step, how to make the email about them, and scheduling with the client in mind. Show Notes: [04:43] Nikki is a sales coach, trainer and speaker; her company is Sales Maven. She is also an author and a podcaster with a background in sales and NLP. [05:17] Neuro-linguistic programming (NLP) is the study of communication and the way we process things in our brains. The programming part is about habits and patterns. Nikki has about 1,200 hours in training (compared to the 200 most others in the field have). [08:31] Many of us inadvertently communicate in a way that makes it difficult for customers to buy.  [09:18] The easier you make it for someone to take that next step, the more likely they are to follow through. [11:02] Every time you put up a roadblock, you risk the chance of losing that potential client. [12:47] The answer to “tell me when you're available” … is “never.” [14:18] You can use the three times technique. Ask if the potential client would like to chat and then give them three ranges of times. A range could be anytime between 9:00 and 3:00 or 8:00 and 8:30. Then follow up with, “Please choose what's best for you. If you prefer something else…” [17:24] Scheduling links are common, but it needs to be framed in a way that doesn't turn off your potential client. Make it easy for them. Don't use “I” statements. Make it for the readers benefit. “Please choose the time that's best for you.” Not “These are the times that work for me.” [24:27] Make “you” statements and ask questions. “Would you be open to meeting to talk?” [25:30] In a hurry? Don't send that email. It's worth it to slow down and think about how it will be received.  [30:10] “What questions come to mind to you?” This phrase sounds better than “does that make sense?” (Melina’s personal mission is to remove this phrase from use.) “If” statements can be too much too.  [33:31] “Do you have questions?” also isn't an effective phrase. Try “What  questions come to mind so far?” instead.  [37:18] Let people know what you want instead of having a “go fish” mentality. Have a clear next step when you want someone to take action. Schedule a time to circle back.  [45:10] You can find Nikki and her podcast on the Sales Maven. You can also download Closing the Sale for free. 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.   Links and Resources: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram Sales Maven With Nikki Rausch Closing the Sale Free Download Nikki Rausch Sales Maven on Facebook Getting Ghosted By Potential Customers? It May Be Your Email Approach A Starbucks Barista Asked Me This 1 Simple Question, and Using It May Be a Great Way to Boost Your Sales Buying Signals: How to spot the green light and increase sales The Selling Staircase: Mastering the Art of Relationship Selling 66. Ultimate Pricing Confidence with Special Guest Interviewer Nikki Rausch 16. Framing: How You Say Things Matter More Than What You’re Saying: A Behavioral Economics Foundations Episode 23. Reciprocity: Give A Little, Get A Lot: A Behavioral Economics Foundations Episode 45. Overview of Personal Biases 95. Hate Being on Camera? Understand Your Brain’s Biases To Change Your Mind 11. Anchoring & Adjustment: The 1 Word That Increased Sales 38%: A Behavioral Economics Foundations Episode 32. The Overwhelmed Brain and Its Impact on Decision Making 18. Priming: Why You Should Never Have A Difficult Conversation With Someone Holding An Iced Coffee: A Behavioral Economics Foundations Episode 72. Friction – What It Is And How To Reduce It, with Roger Dooley

There used to be a time when people who were camera shy could mostly avoid being in photos or on video. For better or worse...those days are long gone. A lot of us hate seeing ourselves on camera, and today I’m going to talk about why. Our brains are actually programmed to hate seeing ourselves on camera because of specific biases. I’m going to talk about those biases, how they affect our brain, and give some tips to overcome those biases.  In a world of selfies, Instastories and YouTube…it’s hard to not be on camera these days. With the coronavirus pandemic (which I covered in episode 91), the world has been flocking to Zoom, which before the end of February had already added more active users than in all of 2019. In the coronavirus episode, I touched on why the brain is wired to react the way it does during a novel and frightening situation like this, and why we all feel inclined to hoard lots of supplies like toilet paper even when we know that is a bit irrational. Today’s episode gets into concepts like familiarity bias, confirmation bias, and comparisons that are working to make our brains hate seeing and hearing ourselves from the outside looking in. I talk about what we see and hear and what others see and hear. I explain how these biases affect us. I also share my own experiences with these biases, and share seven tips you can use to convince your brain that being on camera, audio, and video isn’t that bad after all. CLICK HERE FOR YOUR FREE DOWNLOAD! Show Notes: [04:32] Not too long ago, any of us who wanted to could pretty much avoid cameras – either video or photos. [08:13] I get it. AND I want to help everyone understand some of the things going on in all our brains that make us less than excited about seeing ourselves on video (or listening to our own voices on a recording) to make it a little easier to do that next one. [08:23] There are a couple of mind tricks conspiring against seeing yourself on camera, including confirmation bias, familiarity bias, and the comparison effect (essentially relativity), and the focusing illusion. [08:55] FAMILIARITY BIAS This is one of those things that is so obvious when you hear it, but not something that people are usually connecting the dots on themselves. [09:19] We see everyone head on, and they see us head-on. The only way we see ourselves is a reflection in the mirror. We actually see the opposite of what everyone else sees. [10:23] This is why our familiarity bias kicks in when we see our image in a photo, and we think that something is off. [10:56] Studies have actually shown people two images – head on and mirror image – to see what people preferred, and it confirmed that friends and partners…everyone else, prefers the “straight on” image of us, and we all prefer our mirror images. [11:13] People could never explain why they didn’t like one and why they preferred the mirror image. The conscious can’t explain it…but the subconscious knows what it is used to looking at. [11:47] Until you train your brain to see your “real face” more, it will not be familiar and it will feel off. This means putting in the effort to be in more pictures and on video and watching yourself. [12:11] Some smart systems like Zoom actually let you choose if you want to be looking at and recording your “real” face or your “mirror image.”  (Bonus side note not in the episode - I did a run through of a training using GoToMeeting the day after recording this and saw myself in NOT mirror image for the first time in a while...my brain’s immediate reaction was that it was awful! But I was able to use the tips from the episode to get past it and not make it awkward.) [12:42] Help train your brain to get used to the good stuff of the true you. Our brains dial in WAY too closely on things when we are thinking about them. [13:22] You will be focusing on yourself in a way no one else does. So you have two options. First: train yourself to watch the general image and try not to narrow in on one specific item. [14:21] The second option is to know that the focusing illusion will still be happening because your brain is wired to focus on stuff. Focusing on the good stuff will make you happier and smile more. [15:26] Zoom also has a “touch up my appearance” option that gives you a smoothed out look and can be the edge you need to feel more comfortable. [16:50] We actually hear ourselves differently than everyone else, because our voices are reverberating around inside our heads while we speak. Your perception of yourself is biased. [18:26] CONFIRMATION BIAS Familiarity bias combines with confirmation bias to really reinforce the bad stuff deeper into your brain. [19:26] We remember the feedback that aligns with our self esteem more than we remember anything that doesn’t align with it. [20:42] Your subconscious is making 99% of the decisions and evaluating tons of information every second to screen out what fits its rules and what doesn’t. [22:24] You need to embrace the new positive just make it plausible enough that your brain will believe it. [23:39] COMPARISON EFFECT for our purposes this is essentially relativity. [23:56] The context (the environment you were just in) will impact the way your brain perceives the next item. [26:14] If video is important to your business, invest in making yourself look as good as possible. This will benefit your personal brand and make it easier to see yourself. Here are those 7 tips: [29:51] #1 Try to focus on good stuff you like about yourself instead of the stuff that makes you cringe. [30:02] #2 People are programmed to like you more when they see you the way they are used to seeing you. People like authenticity. [30:34] #3 Reframe your focus to a positive. [30:50] #4 Be okay with mess ups. They will happen. [31:49] #5 Imagine the audience is laughing at the right spots and loving every minute. [33:21] #6 Decide to get over it. Find positive things to focus on and see yourself better. [34:33] #7 Do as much video as you can as often as possible. [35:13] It's time for a new challenge. I’ll be going live every day between now, April 10 and May 15 when episode 100 goes out. Will you join me? Find me on social and use #BeThoughtful 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.  Links and Resources: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram 91. Coronavirus and How the Human Brain Responds to Pandemics Zoom Has Added More Videoconferencing Users This Year Than in All of 2019 Thanks to Coronavirus, Bernstein Says Self-Esteem and Memory for Favorable and Unfavorable Personality Feedback How to Have Proactive Conversations With Employees (and Calm Their Fears) Still Trying to Multitask? How to Make More Time for Deep Work 5 Ways to Be Comfortable & Likable on Video (from Someone Who Used to Hate Video) The Psychology Behind Video-Phobia What It Means if You Hate Having Your Picture Taken The Science Behind Why No One Likes to Be on Camera 13. Adjusting Your Mindset: Tips To Overcome Imposter Syndrome And More: A Behavioral Economics Foundations Episode Master Your Mindset Mini Course Use code BRAINY to save 10% 12. Relativity: The Brain Can’t Value One-Off Items: A Behavioral Economics Foundations Episode 89. Focusing Illusion: Why Thinking About Something Makes It Seem More Important Than It Is (A Behavioral Economics Foundations Episode) 67. How to Get (and Stay) Motivated Dread Going Into Work Every Day? The Culprit May Be Hanging in Your Office 21. Habits: 95% Of Decisions Are Habitual – Which Side Is Your Business On?: A Behavioral Economics Foundations Episode 413: It’s Not About The Price with Melina Palmer 33. Inside the Texas A&M Human Behavior Lab #CrazyHairDay 66. Ultimate Pricing Confidence with Special Guest Interviewer Nikki Rausch

I am very excited to introduce you to Dr. Sudy Majd, a behavioral scientist applying concepts from behavioral economics in business. Sudy has always been interested in how people behave. Right out of college, she worked for a consulting firm that enabled her to travel all over the world to study consumer behavior. She then got a PhD in Psychology at Columbia where she focused on consumer decision making. She is now a consultant and on the advisory board of startup Candid™. In today’s episode, we talk about a couple of specific projects she did on behalf of Candid™, a company that helps people straighten their teeth with clear aligners without ever having to go into an office. Sudy has been bringing behavioral science out of the lab and academia, and testing things within a real business. She shares how applying behavioral economics principles in a real business setting had unexpected results, and she discovered that the business questions were more complex than she realized. This is that concept of “finding the right answer to the wrong question” you hear me talk about on the show often, and the value of “questionstorming” – which I teach to many of my clients and with the group of members in the BE Thoughtful Revolution.  CLICK HERE FOR YOUR FREE DOWNLOAD! Show Notes: [02:23] Dr. Sudy Majd has been interested in how people behave for most of her career. Right out of college, She worked for a consulting firm that enabled her to travel all over the world and observe how people behave to make recommendations to increase sales. [03:03] She then got a PhD in Psychology at Columbia where she focused on consumer decision making. [03:16] This gave her insight into why people make decisions and how to influence those decisions. [03:27] She then started working at tech startup Candid™. She also works with other clients to help incorporate behavioral science into their businesses. [04:08] Sudy shares a story of how consumer behavior ended up being different than she expected it to be. [05:02] Many Candid™ customers didn't return their kits with impressions and photos, so that wouldn't result in a sale. [05:43] They added cards that incorporated behavioral science into the copy, and the return rate became worse (hindsight helps, I offer up a reason it may not have been successful). [07:45] Humans have a lot of conflicting things going on in their lives, one card wasn't enough to push them over the edge. [09:21] They decided to identify psychological traits of customers who were and weren't returning their kits. [10:52] They implemented feedback loops with penalties or rewards. This was a different way of framing the message with loss aversion and incentives. This also included nudging, time discounting, and herding (links to past episodes below).  [12:05] The penalty framing worked the best. These customers converted worse but were cheaper to acquire. [14:19] Marketing is to get people interested enough to take the next step. [16:30] They always incorporated customer feedback to figure out why something was happening. [18:17] Have the user see themselves in your brand and use their language to describe the product. [21:18] Sudy thinks the future of behavioral science is testing it in actual businesses. She loves discovering how the physical design of retail spaces influence how people behave. [22:41] She would also like to incorporate behavioral science theories into big data applications. [26:25] Having something that doesn't work teaches you as much as something that does work. [29:17] Testing is key to the growth and success of any business. Keep trying and improving. 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.   Links and Resources: Melina@TheBrainyBusiness.com The Brainy Business on Facebook The Brainy Business on Twitter The Brainy Business on Instagram Candid™ Sudy Majd, PhD on LinkedIn 51. Time Discounting: The I’ll Start Monday Effect – My Favorite Concept!: A Behavioral Economics Foundations Episode 16. Framing: How You Say Things Matter More Than What You’re Saying: A Behavioral Economics Foundations Episode 9. Loss Aversion: Why Getting New Stuff Is Not The Same: A Behavioral Economics Foundations Episode 18. Priming: Why You Should Never Have A Difficult Conversation With Someone Holding An Iced Coffee: A Behavioral Economics Foundations Episode 19. Herding: Come On And Listen…Everyone Else Is Doing It: A Behavioral Economics Foundations Episode 36. Incentives – The “N” In NUDGES: A Behavioral Economics Foundations Episode: A Behavioral Economics Foundations Episode 63. How To Set Up Your Own Experiments 87. Social Proof: How to Use Herding to Boost Engagement and Sales 88. Marketing to Mindstates: A Discussion With Author, Will Leach 4. Questions or Answers Join the BE Thoughtful Revolution  Forget Brainstorming, Try Questionstorming (Inc Article by Melina)