Behavioral science, or behavioral economics, is the heart beat of every single brand, marketer, company, and social scientist. It’s important to understand what are the most crucial economic factors influencing consumer behaviour. While standard economics studies humans as completely rational decision makers, behavioural economics explores the gap between rationality and irrationality and takes a look at how humans actually behave. Behavioural science is the study of why and how people make decisions in the real world. There are countless principles that researchers unleashed that help explain why people do what they do, and how they make decisions. When these principles are applied to marketing, finance, or branding, marketers can gain a better understanding of their audience and how to best engage with them with measured results.
Behavioural Economics. The Heart of Influence
Behavioural economics is the cousin to behavioural science. They both move into the business domain, understanding how to strengthen sales, enhance user experience, integrate product design and engage through advertising, intelligently
A powerful principle is something called social proof. The idea is that humans are so extremely motivated by how others are behaving or acting. Understanding exactly how this and other motivators of human behavior actually work can help brands build their campaign with what matters most, genuine honesty and true engagement. According to this perspective, we should implement an extended identity of a brand to increment the interest towards your company. Once in-house strategist are able to deliver on this, they will have an unbreakable, unmistakable campaign that people will truthfully believe in.
Behaviour Economics Considers:
- Relativity and why offering comparisons is helpful.
- Narrative bias and how your words can better reach your audience.
- The endowment effect which explains why value is often subjective.
- Gain frame versus loss frame and how to test for which works better with your audience. (Careful, This can change as it has for many brands post Covid and our NEW ECONOMY.)
- Social proof and specifically how influencer marketing fits into the mechanism of this principle.
- Scarcity mode and what happens to people’s IQs during a crisis like the COVID pandemic.
Enter Influence Marketing. If we want to attract more customers, it’s important to have top creative thinking skills and solving skills. Furthermore, influencer marketing has become a proven, go-to marketing strategy across many growth and established companies. They have associated themselves with someone or thing that advances the true understanding of how consumers think and feel - a cognitive perspective - that provides new tools and insights into their target audiences. A divergent creativity is also essential to find new ways to expand your brand. Think back to behavioral science because it has given a path to a more systematic and advanced set of marketing tools. As a result, brands evolve into more meaningful, purposeful, relevant outlets that consumers are able to connect with.
Behavioral Economics is at the heart of influencer marketing because of it’s organic evolution thanks to micro-influencers forming strong foundational ties with their followings; building trust and knowing how to deliver measured results for marketers. La G Studio wants to explore cognitive and behavioural tools, and analyse how marketers can use them as a means of making their approaches to influence more effective.
Overall Questions:
- How marketers have used influencer marketing in innovative ways to better connect with target audiences
- An introduction of the latest innovation of new tools to better understand consumers’ cognitive POVs and ways of thinking
- How to futurecast the possibilities of how hyper targeted and precise influencer marketing can drive meaningful growth and measured business KPIs.
- How different brands are able to use the nuances of their audience to deliver differentiation with promise and genuine engagement
Data is the only thing that can precisely tell you what people are doing, but it can't tell you why they are doing it. This is why we are reviewing campaigns through a psychology lens to analyse and understand your consumers’ decision making and motivations.
Data falls into the following categories; structured, unstructured, and semi-structured.
We will get into these categories on another journal post...
Once brands and marketers can understand the ‘why’ behind a campaign, it is only then they can replicate its success and scale its influencer growth programmes.
It’s critical for brands to think like behavioural scientist as it can transform the way you analyse your campaigns as you combine data and psychology to properly understand your campaign results and audiences.
Let us help you study the economics behind your Brand. Call us with any questions!