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by James Robert Lay on September 6, 2022
Brief Summary of Episode #225
As much as people use rationale to justify financial decisions, money carries emotional weight.
Customers tend to follow their emotions when making transactions, be they large or small.
FIs and fintechs can apply behavioral sciences to help guide their customers through those decisions.
Using behavioral sciences in marketing might sound dystopian to the layperson.
However, like any other marketing principle, we can use behavioral sciences for good.
“People are going to make decisions without really thinking through things,” said Nancy Harhut, Co-founder and Chief Creative Officer at HBT Marketing. “So, anything you can do to guide them to the right decision is a good thing.”
The author of Using Behavioral Science in Marketing gave us the inside scoop on why behavioral sciences could revolutionize marketing.
Nancy believes behavioral sciences not only help customers make good choices but makes them the hero of their own story.
“If you can get somebody involved in a story and get them to feel that it’s them who’ve come to the conclusion, that can be incredibly powerful.”
Behavioral sciences may be the next big thing in providing clarity on emotional complexity in finance.
Key Insights and Takeaways
- The basics behind behavioral science and its uses in marketing (3:26)
- How the loss aversion theory and endowment affect consumers (11:00)
- The power of the “urgency and scarcity” implications (24:35)