Mentor and Strategic Consultant and Verandah Magazine columnist Sonia Friedrich is giving a series of three events sharing insights on behavioural economics and business at Startinno in Byron Bay, starting on September 8.
For many in business and marketing the traditional methods of how to market and build a business have stood the test of time. To shake up old concepts that have built careers, industries and brands is no small feat. It also challenges our default position – our fear of loss. We are hardwired to stay with the status quo, unless there is a reason so significant it disrupts our inertia. It is easier to stick with what we know and apply our natural confirmation bias where our brain works to find those facts, case studies and successes that continue to support our position, and no doubt our career. It conveniently lets other information fall away.
As a new entrant, or in this case a new idea, arrives and shifts the goal posts forever, as in any market, not everyone survives. Tried and true is a common positioning we grip onto at this time. While some learn to play catch up, many fear the loss of what they know and can’t adjust or reinvent themselves quickly enough.
We fear loss more than we value gain by a ratio of about 2: 1. I felt this loss myself when the ideas and new concepts of behavioural economics and neuroscience shook up what for decades I knew, believed and spruiked to build business and brands. I had been successfully building markets and brands for more than 25 years and to have new ideas question my ability or suggest I was doing it wrong, was welcomed with a harsh dose of cynicism. But I had been asked to work in a team of very smart people, a small team of four, to build new models that would apply behaviour economics and neuroscience to market research and brands in Australia and the excitement of building something new disrupted my default.
It was so much fun! Taking the ideas of the Nobel prize winner Daniel Kahneman and the work he did for so many years with Amos Tversky, together with a cast of other inspiring thought leaders, we spent months sifting through their excellence. If these ideas worked in theory and in experiments, we imagined they must work in business and in real life too. In the process I was converted. I threw my old theory, methods and practices out into the wind, as I learned and then played, and created new models to apply to life.
We took them to the market to see how they would go. It turns out they work in the business world too. We won projects by working differently. Our focus was simple – apply the knowledge of behavioural economics and change behaviour. The results were far greater thananything I’d seen before.
Since then I have applied behavioural economic theory to business and brands, beyond market research. I have helped individuals apply them to their life and initiate much needed life change
I have seen:
Multi- million dollar media budgets cancelled on the spot
A 40% increase in revenue by creating a pricing decoy that cost nothing to implement
Life change in individuals as they finally break through their procrastination and have the tools to use for the rest of their life…and so much more.
The managers and marketers of brands, together with the support companies they engage – advertising agencies, market research, public relations, media buyers, education will need to apply behaviour economics if they want to survive. Why? Because if they aren’t using behaviour economics, their competitors are. New businesses are emerging that use behaviour economics and neuroscience to create and maintain an edge. Strategic planners are being replaced by ‘choice architects’ and personal development is being replaced by ‘reality architects’.
There is a new language in business, it’s called behaviour economics and it’s time to jump on board.
Mentor and Strategic Consultant Sonia Friedrich will give a series of three events sharing insights on behavioural economics and business:
Event 1: Where are you losing customers?
Event 2: What’s a brand anyway?
Event 3: Irrational Pricing Strategies Win!
Book early to avoid disappointment, as all three events are likely to sell out. To find out more or book your ticket visit: startinno.com/events/growing-your-business
Find out more about Sonia on: Soniafriedrich.com
Verandah Magazine is proud to be a sponsor of Sonia Friedich’s events.