What is Behavioural Science in Marketing?
Behavioural science is the study of human behaviour. It examines why people make the decisions they do. In marketing, it involves applying psychology, economics, and neuroscience to influence consumer behaviour. The approach goes beyond traditional marketing tactics and taps into the underlying factors that drive the decision-making process. In his book, Alchemy, Rory Sutherland discusses how seemingly irrational human behaviours can provide marketing opportunities that traditional methods overlook. For example, people don’t always make purchasing decisions based on logic but rather emotion, social proof, and perceived value.
Key Concepts of Behavioural Science in Marketing
1. Heuristics and Biases
People often rely on mental shortcuts, or heuristics, to make decisions quickly. Understanding these can help marketers design messages that align with these shortcuts, making it easier for consumers to make choices that favour the brand. An example is the framing a product as the “popular choice” taps into the social proof heuristic, leading consumers to choose it over alternatives. Companies such as Etsy use this tactic on product pages.
2. Social Proof:
Consumers are heavily influenced by what others are doing. Demonstrating that a brand is popular can increase its attractiveness. Think about it…have you ever been influenced by the fact that a product, service or company has a large number of followers?
3. Scarcity
People are more likely to want something if they believe it’s in limited supply. Highlighting scarcity can drive urgency and prompt quicker decisions. Booking.com are masters of this tactic, displaying messages such as “Only 1 room left at this price!” or “5 people are looking at this property right now.” These alerts make users feel they are in competition for limited availability, prompting faster decisions.
4. Loss Aversion
People prefer to avoid losses rather than to acquire equivalent gains. Messaging that emphasises what customers stand to lose by not acting can be more effective than focusing on potential benefits. Examples here are free trials with expiration such as those offered by Spotify Premium or Netflix who often offer free trials that expire after 30 days. The goal is to get users accustomed to the premium features. When the trial ends, the fear of losing access to these features (like ad-free music or exclusive content) drives many users to convert to paid plans.
5. Emotional Triggers
In his book ‘Decoded’ Phil Barden discusses the importance of emotional triggers in purchasing decisions. Consumers are often drawn to brands that invoke positive emotional responses. A marketing message that creates excitement, nostalgia, or a sense of belonging can strongly influence behaviour, making the brand more memorable and desirable. A great example, carried out to perfection, are the John Lewis – Christmas Ads. By featuring heartwarming stories designed to evoke feelings of love, joy, and nostalgia, the ads tap into the emotional warmth of the holiday season to generate social media buzz, increase foot traffic, and boost sales.
The Impact of Behavioural Science on Marketing
Improved Customer Engagement
Behavioural science allows marketers to engage customers on a more personal level. By using insights into what motivates customers, companies can create content and campaigns that resonate more deeply with their audience.
For instance, British Airways used behavioural insights to develop their “Look Up” campaign, which encouraged people to look up at the sky whenever a British Airways flight passed overhead. This campaign tapped into the human tendency to be curious and created a strong emotional connection with the brand, leading to increased brand awareness and engagement.
More Effective Communication
Understanding the psychological factors that influence decision-making can help businesses create more persuasive messaging. Behavioural science can guide the choice of words, images, and even the timing of messages to maximise their impact.
Increased Conversion Rates
By applying behavioural science principles at different stages of the marketing funnel, companies can significantly increase conversion rates. For example, understanding that people are loss-averse can help marketers frame offers in a way that highlights what the customer stands to lose by not purchasing. UK retailer Argos effectively used behavioural science by incorporating urgency and scarcity in their online sales. By showing limited stock messages and countdown timers, they were able to drive higher conversion rates during peak shopping periods.
Why Partner with a Marketing company that understands Behavioural Science?
Expertise in Nuanced Application
Behavioural science is complex, and its successful application requires a deep understanding of both human behaviour and market dynamics. Sutherland argues in Alchemy that many marketing agencies overlook the irrational drivers of consumer behaviour. A specialist can apply behavioural insights in ways that unlock hidden opportunities, providing a competitive edge.
Tailored Strategies
No two businesses are the same, and a one-size-fits-all marketing approach rarely works. Barden’s Decoded reinforces the need for bespoke strategies that take into account the unique psychological drivers of a brand’s target audience.
Data-Driven Insights
Behavioural science relies heavily on data, and working with analytics to understand consumer actions. By continuously monitoring customer responses and adjusting strategies, businesses can ensure that marketing efforts are not only creative but also grounded in hard data.
Proven Results
Using proven behavioural science techniques drives results. The Nudge Unit (Behavioural Insights Team) in the UK provides a clear example of this in action. By applying behavioural science to various public campaigns—from tax compliance to organ donation—this team has demonstrated how powerful these insights can be in driving behaviour change
In Summary
As Sutherland eloquently puts it in Alchemy, “A flower is simply a weed with a marketing budget.” By tapping into the irrational, emotional, and subconscious factors that drive human decisions, businesses can transform how they engage with customers.
Sources
- Sutherland, Rory. Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life.
- Barden, Phil. Decoded: The Science Behind Why We Buy.
- Kahneman, Daniel: Thinking, Fast and Slow.
- Ariely, Dan. Predictably Irrational: The Hidden Forces That Shape Our Decisions.
