Recently, Richard Thaler, a Professor at the University of Chicago, was awarded the Nobel prize in Economics for research on people’s habits or standard behavioral patterns when making decisions, most of which are relevant when making purchasing decisions.
According to Thaler, the biggest mistake economists make is how they view human behavior. In fact, his research focuses on the real intersection of psychology and Economics. Thaler observed that ” people do not behave in the way that economists expect them to, who think they are surrounded by very rational, dispassionate beings – like Spock from the Star trek series. In fact, people are much more like Homer Simpson.” Spock is an island of calm in a madhouse called the enterprise. Powerful, logical, and unwavering. He’s also very smart.
Father of the Simpsons. His behavior is often stupid, absurd, selfish, dangerous, clumsy, and simply idiotic. Marketers should be well aware that there are two sides to the decision-making process: “rational” (Spock) and “emotional” (Homer Simpson). We should not repeat the mistake of most economists who base their market forecasts on rational, analytical, and logical behavior, which is completely out of character for most of them.
It is easy to see that brands that appeal to people in an emotional way and talk about the benefits of working with them in the simplest and simplest form, quite often succeed. These are the kind of campaigns that get into the hearts of consumers. They work because the brand’s promise and the way it is conveyed are in complete sync with the behavioral psychology of customers.
What are the most common mistakes brands make?
Based on Thaler’s opinion, let’s look at four misconceptions that are so common in the business environment:
1. The image of Simpson is relevant even in B2B
Let’s talk about a clear trend in the industry. Most advertisers in the B2B sector default to the rational side of their customers, as if their audience consists of Spocks, or even soulless machines. There is a concern that a warmer treatment of customers, treating them as people, will affect the perception of the brand in a negative way: it will be considered less reliable and attractive.
However, even when it comes to negotiations where millions of dollars are at stake, the brand’s emotional connection with the customer is paramount.
2. To simplify you should always
Steve jobs was an innovator, representing innovative Apple products. However, he told simple stories and used slides with minimal words and images. His connection with the audience was based on emotions, although it can be assumed that the average IQ of those present was quite high. Apply this principle to all forms of communication. Clean up your message, remove all unnecessary information. Reducing the brand’s message to the three most important points will significantly increase its memorability and persuasive power.
3. The emotional climate above all else (even creativity)
Most marketers are familiar with the 3 C model, which includes three main players whose goals and interests should be taken into account when developing a business strategy: the company, customers, and competitors. Modern brand strategists necessarily complement this model with a fourth “C”, which stands for Culture.
For example, in the United States, the topic of racial equality is very acute (read – slippery). This cultural trait is one of the highly emotional factors that brands must consider. A recent dove soap video campaign has shown that creativity can have extremely adverse consequences if the emotional climate is not taken into account.
4. Talk about the benefits
David Ogilvie once said: “The buyer is not an idiot, he is your wife.” According to Thaler, the typical consumer is Homer Simpson. In any case, while keeping the message simple and appealing to the target audience, do not forget to list the main reasons for making a purchase – the benefits of the consumer. Despite the fact that we are all very emotional beings, people must have a reason to buy from you, and not from competitors.