The Brainy Business | Understanding the Psychology of Why People Buy | Behavioral Economics

Today I am so excited to introduce you to Tim Ash, his new book Unleash Your Primal Brain is currently available on presale, to officially launch in April 2021, but everyone listening now can order it direct from Tim using the links in the show notes and you'll get an autographed copy, which is pretty darn cool! Early praise from the book has come from Robert Cialdini, Jay Baer, Phil Barden, Will Leach, Roger Dooley, and Nir Eyal (recognize some of those names from past episodes of the show?). Forbes has named Tim a Top-10 Online Marketing Expert, and he was also named an Online Marketing Influencer to Watch by Entrepreneur Magazine. He had his own podcast, has published over 100 articles, and spoken at more than 200 conferences around the world. His past clients include Google, Expedia, eHarmony, Facebook, American Express, Canon, Nestle, Symantec, Intuit, Costco, and many more. I think it's safe to say, Tim knows his stuff and I'm honored to have him with me here today. You know there are a lot of past concepts that will come up today (including last week's intentionally planned episode on brain chemicals…totally ties in with understanding the primal brain!) and they're all linked for you in the details below! Show Notes: [00:42] Today I am so excited to introduce you to Tim Ash, his new book Unleash Your Primal Brain is currently available on presale, to officially launch in April 2021. [03:39] Tim's interest and fascination with the brain started very early and were a huge part of his college studies. [05:43] Brains didn't just pop into existence. We are the product of evolution and in order to understand us, you have to understand the whole evolutionary art. [06:42] Sophisticated brains are at least 500 million years old. [07:18] Insects and animals need brains because we are in a world of movement; brains are really only to help us think fast enough to survive in the environment (which is why plants don't need brains but still develop adaptive tendencies). [07:58] The brain is a very energy-intensive system. [08:29] The body is balancing between digestive, voluntary movement, and the brain. When you run out of energy you need sleep and rest. [09:08] Whenever we are not doing computation or planning tasks, we default to modeling our environment. [11:26] One of the key insights in Tim's book is understanding that we made an evolutionary bet on culture spread. We can learn more from our surrounding tribe by copying than we can ever in a lifetime of direct experience. That gives us our tribal edge. [13:38] We are born covered in fat and we use that fat to isolate the neurons in the brain so there's no cross-talk or electrical issues. [15:15] We get enjoyment by helping others and transmitting knowledge. [18:09] One of the huge puzzles that needed to be unlocked from an evolutionary standpoint was "Who (and what) do I learn from?" We want to learn from successful examples. [19:13] We are wired to learn from people that are most like us. [21:17] Once somebody locks into a tribe it is very hard to have them accept other views. A big task is pulling towards the center and somehow having a larger circle of empathy. [23:19] When employees embrace different teams (creating silos) they make it more difficult for the business to be successful. [25:06] Thinking we are individuals and our happiness matters is a very western idea. Most of the world thinks more communally. [27:06] We are hypersocial animals with a need for connection. The worst thing you can do to somebody is isolate them. [28:46] Isolation literally drives us insane. [29:37] As teenagers, you are transferring your allegiance from your parents to your larger group of peers. Parents have less influence than their peers. [32:36] We do a lot of our brain development out of the womb when it really should be prenatal. It is really important to make the first five years solid from a nutritional, sleep, and social attachment standpoint because you can't undo it later in life. [33:29] Direct experience with other people and forcing them to walk a mile in other peoples' shoes is your best bet for creating good humans. [34:08] Primarily storytelling is to simulate experience and do things we can't directly do. The other unestimated reason for storytelling is to maintain cohesion and the values of our tribe so knowledge spreads faster. [35:30] The cultural package determines how we examine and experience the same story. [38:41] Tim's book really helps us understand the brain and how that ties into marketing, messages, interpersonal relationships, and more. [40:35] Tim wrote his book to explain the why behind the brain and behaviors. If you want to understand the why behind the brain, you have to see how it all evolved. [41:23] Grab Tim's book here and get an autographed copy (limited time offer). [42:25] It is so important to understand genetics and history to really understand behavior. [44:22] If you haven't connected with me yet, please do! I love to give sho

Today is all about the four main feel-good chemicals in the brain and understanding how they work. We will also talk about what drives them so you can boost them for yourself and use them in your business. You may have noticed that I introduced this as a "DOSE" of brain chemicals, which is more than an off-handed phrasing. In fact "DOSE" is the acronym you can use to remember the four main "feel good" chemicals we will be talking about today: dopamine, oxytocin, serotonin, and endorphins. These are definitely not the only chemicals in the brain, but they are potentially the most widely talked about associated with happiness, motivation, and "feeling good." You've heard me mention all four on the show over the years, but I've definitely talked about dopamine the most. Today, I will tell you even more about dopamine while also digging in on the three others. (And, stick around to the end for the announcement of the amazing year-end sale!!) Show Notes: [01:09] Today we are talking about the four main "feel good" chemicals: dopamine, oxytocin, serotonin, and endorphins. These are definitely not the only chemicals in the brain, but they are potentially the most widely talked about and associated with happiness, motivation, and more. [02:02] Download your free worksheet to help you remember the DOSE chemicals and how to use them. [02:54] DOSE is an acronym for the four chemicals we will talk about today. Dopamine is about anticipation, motivation, and goals. Oxytocin is for empathy and social bonding. Serotonin ties in with our mood and pride, and finally endorphins mask pain and are part of that well known "runner's high." [03:38] We are not meant to be perpetually happy. These chemicals in the brain are not naturally there to make us feel good, but to promote survival. [05:07] We can get dopamine from anything, including sugar and even drinking water when we are really thirsty. So, it isn't in the drug or food itself, but it is about the drive to obtain the dopamine. The anticipation of the reward is where we get a dopamine release not when we consume the item itself. [07:34] Our lives these days are a flood of unnatural levels of dopamine: sugar and other junk food, social media feeds, Netflix and other shows to binge watch, video games, notifications on our phones, and more. [08:33] If you want to make a change and kick some of those unnatural dopamine habits, a detox may be in order. [10:10] Embrace the boredom to come through on the other side where you give your brain that break and ability to reset the dopamine expectations. [11:06] Remember, while some mistakenly say dopamine is about pleasure, that's incorrect. It is about desire, motivation, and goal achievement. [12:35] For more natural dopamine, embrace a new goal (something you may find easier after you do a detox and get rid of some of those unnatural stimulants). [14:05] Dr. Paul Zak and his team discovered that oxytocin signals to the brain that it is safe to approach someone and that they can be trusted. The release of oxytocin triggers empathy and motivates us to be more cooperative. [16:08] We get that hit of oxytocin when we stick with the herd and strengthen the bonds we have for others because it keeps us safe and protected. [16:34] Conversely, when we have had our trust betrayed there are unhappy chemicals released that may cause us to shut down and not want to open ourselves up again. [17:04] Opening yourself up to trust is key to survival and critical for the oxytocin your brain needs. [19:12] Serotonin is about confidence, social status, and belief in your own abilities. [20:13] Going back to the episode on the focusing illusion, whatever you pay attention to and look for is going to seem really important and stand out. [21:26] Focus on believing in your own value, and celebrate your wins alone and with others. [22:30] The most important thing to know about endorphins is that they are caused by pain. You need to experience pain to get the endorphins. [23:45] Pushing our limits a bit to reach new goals, run faster or do more push-ups (or however that translates to your business and career) can be useful but shouldn't be the main focus. [24:05] There are some safe ways to get an endorphin kick that don't require you to physically injure yourself and they're really quite easy. They are laughing and stretching. [25:29] One study from Duke University found that 30 minutes of regular exercise three times a week was enough to boost mood as well or better than prescription medications for those who were severely depressed. [26:33] Cortisol is a bad chemical that is released as a warning when we feel our survival is threatened. [27:01] If you aren't getting enough of the happy DOSE chemicals, you are likely to feel this one even more and want to mask that bad feeling. But fight that urge! It is important to allow yourself to feel the cortisol and know what your body is trying to tell you. [28:46] The chemicals in our brains and bodies are there

In today's episode, I'm excited to introduce you to Nate Andorsky, CEO of Creative Science and author of Decoding the Why. Nate's book is all about how to apply behavioral economics into consumer-facing software products and websites. It's about experience, behavior, flow, and shares a bit about the process he and his team at Creative Science use with their clients. Decoding the Why came out in May of 2020, and as you'll hear in our conversation today, he specializes in work with nonprofits, and also works with other organizations to help them incorporate behavioral economics to be more effective. He and his work have been featured in Forbes, Inc, The Huffington Post, Fast Company, and more. Today, we cover a bunch of ground and mention several concepts of behavioral economics that you may find yourself wanting to dig in on and learn more about (and good news...lots of links below!) Show Notes: [00:44] In today's episode I'm excited to introduce you to Nate Andorsky, CEO of Creative Science and author of Decoding the Why. [03:10] Nate's company, Creative Science uses behavioral science to build technology and strategies for today's most innovative companies. [04:42] He shares a few examples of tech projects using behavioral science. [07:06] Nate really enjoys working in nonprofit social impact, consumer finance, health, and ed-tech spaces. [07:42] When working with companies they first ask, "What is the behavior we are trying to drive?" and then bring that into an awesome user experience. [09:18] If a product isn't working exactly as a company wants, they will typically just go ask their users what they want. (Bad strategy) [10:11] There is research to suggest how we think about ourselves in the future is as a stranger—so whatever happens to that person is as inconsequential as if it were happening to a stranger. This is a big disconnect, so Nate and team look at how to close that gap. [11:52] The sooner you actually put your skill into practice, you have a better chance of learning it. [12:19] If you want to change user behavior you have to change the environment and the norms. [15:11] Nate shares about one of his favorite projects working with a medical school on their enrollment process. [15:53] You take more ownership of things if you have a hand in building it. [18:03] Nostalgia and in-group bias can help someone get social proof (which is likely to trigger the desired behaviors). [19:35] Nate wanted to be a doctor when he grew up because he comes from a family of medical professionals. During high school, he started his first business and knew he was destined to be an entrepreneur. [21:26] Melina wanted to be a singer, and shares her experience from volunteering as a company advisor with Washington Business Week. [23:12] If you want to understand the why behind something, the first thing you need to focus on is a very specific and clear problem. [23:56] Do a deep literature review, start to hypothesize, and then test what may be going on. [25:30] A really good place to test is with emails because you can measure an outcome and it is really easy to modify an email to represent a theory. [26:07] Landing pages are another great way to test. [27:46] Understanding the group can make a big difference in knowing what nudges to implement. [30:42] Melina shares about an experience where the company used existing data to help show customers something that would be beneficial to them. [32:18] If you frame things as a set, people are more likely to complete it. [34:33] Melina and Nate talk through a real-life example a listener sent in. See it and follow along in the show notes on the website! What do you think? Email Melina your thoughts... [37:13] Giving donors some insights into where their money is going can increase conversion rates. [40:42] For all the nonprofits listening if you have a project where you need more conversion (like getting and increasing donations), connect with Nate using the links below to see how Creative Science can help. Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show. Let's connect: [email protected] The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube More from The Brainy Business: Master Your Mindset Mini-Course BE Thoughtful Revolution - use code BRAINY to save 10% Get Your FREE ebook Melina's John Mayer Pandora Station! Listen to what she listens to while working. Past Episodes and Other Important Links: Creative Science Website nate (at) creativescience (dot) co Nate on LinkedIn Decoding the Why Social Proof Nudges & Choice Architecture Precommitment Defaults Time Discounting Mental Accounting Loss Aversion Why Our Brains Love Nostalgia & Traditions Biases Toward Others – Including Groups Priming Overwhelmed Brain Soci

In today's episode, I'm so honored to introduce you to four of the founding members of the newly formed GAABS, the Global Association of Applied Behavioral Scientists, which officially launched in September of 2020. I'm joined by Torben Emmerling of Affective Advisory, Nuala Walsh of Mindequity, Madeline Quinlan of Salient Behavioural Consultants, and Dario Krpan of the London School of Economics. As a rapidly growing and currently unregulated field, GAABS comes in as the world's first independent organization representing the interests of applied behavioral scientists, primarily those working in the private sector, and has an impressive list of founders, starting members, and advisory board members, including Robert Cialdini and Nobel laureate Daniel Kahneman. It is going to be an increasingly valuable and important organization as the years' pass, and I'm so excited to be here to introduce you to the group in its infancy. Show Notes: [00:47] Today on the show I am joined by the four founding members of the Global Association of Applied Behavioral Scientists (GAABS), which officially launched September of 2020. [03:31] Torben Emmerling is the Founder and Managing Partner of Affective Advisory, a fully specialized behavioral science firm based in Switzerland. [04:21] Nuala Walsh is the founder of Mindequity. She focuses on financial services, oil and gas, and sports. [05:48] Madeline Quinlan is a director and co-founder of Salient Behavioural Consultants. They use academic rigor and insight to practice from a behavioral point of view. [06:42] Dario Krpan is an assistant professor of behavioral science at the London School of Economics. He researches how to use behavioral science to solve real-world problems. [08:08] GAABS as a concept started as a conversation and precommitment at a conference in the summer of 2019. [10:06] GAABS stands for the Global Association of Applied Behavioral Scientists. [10:31] This is an unregulated industry for applied practitioners and what they are hoping to do is guard against the proliferation of people that are not bona fide practitioners in the field. [12:19] GAABS is a nonprofit, member-based entity and it is there for all qualified behavioral science practitioners out there to be a platform to bridge academia and practice. [13:11] This is truly there to connect the field and make sure the ethical and technical standards of behavioral science are kept, raised and advocated around the world. [15:57] We want to be a very welcoming member body where we see many different approaches. We do have to make sure certain standards are kept. [16:38] One of the benefits of membership we see going forward is using this as a forum with the extra benefit of an academic advisory board. [19:21] Being able to say that you met the criteria to join there is some higher entity that shows we have worth and social proof. [20:54] There is a lot of interest from people just entering the field and from people that are already established in the field. [21:57] GAABS is not providing certification or training, because there are many other groups doing a good job with that already. [23:26] There are two types of membership, individual and organizational. For the individual memberships, they look for people with qualifying criteria. People who are able to show that they have completed a post-grad qualification in a relevant subject in the behavioral sciences, relevant publications, teaching in the field, or relevant contributions to the field. [25:15] On the organizational side we look for proof that it is a proper behavioral science unit or consultancy. [27:21] They are all dedicated to this idea that is going to be built by the members for the members. [28:44] GAABS is member focused like companies are client-focused and they want to hear ideas from members for improvement. All ideas are welcome! [30:51] The group is a wonderful resource to share research findings before they are professionally published and learn from others. [33:43] It is a great way to share what is interesting in this space, how others are going about this, and transparency around how behavioral science tools are used. [34:39] The academics have access to tremendous resources. [36:31] We live in a global world right now and companies and public organizations are commissioning projects around the world. This will be a platform to gather knowledge. [39:05] This is a way for like-minded and interested people to convene and we need to replicate that working for any of our clients. [39:58] There is so much willingness to share and be open within the group. It is a very inviting field. [41:06] There is so much room for everyone at the table of behavioral science and practice because there is so much demand and need for it. [44:01] It is an amazing benefit that we are able to connect with people in the field all over the world. GAABS is a great resource to help behavioral scientists to connect globally and it can propel these connectio

Today, we are talking about precommitment and how it can be used in life and business. As far as concepts go, I'm guessing this is one of those you've heard of and think you know everything about, so I'm going to challenge that belief and hopefully teach you some new insights and ways to use precommitment on today's show by sharing a personal example. Precommitment is very closely related to time discounting, as well as loss aversion, habits, and several other concepts. As a side note, can I just say that I can hardly believe we've made it to 120 episodes of the podcast already? And, there is another exciting milestone that is going to be hitting as this episode comes out. I'm not sure exactly when it will happen, but sometime between recording and the release of the episode we will hit a quarter of a million downloads! A quarter-million you guys! From 160 countries around the world and 120 episodes downloaded 250,000 times. Precommitment is a big reason this has all been made possible. Because of my vow to have new episodes every single Friday no matter what – a precommitment I made to the void when launching the show, we always have new content come out. In 120 episodes I've never missed, and I hope I never will. It seems very fitting that today's episode on precommitment is marking this exciting quarter-million milestone. But precommitment can be used for a lot more than keeping to a content schedule. In today's show, I'll share an example of how I am using it to be more in alignment with the person I want to be, tips to overcome cognitive dissonance in a positive way (and what that means), some great apps to help with precommitment, behavioral scientists using this in practice, and more! Show Notes: [01:01] Precommitment is very closely related to time discounting, as well as loss aversion, habits, and several other concepts that will be linked for you in the show notes. [03:02] When I started The Brainy Business, I made a commitment to do a weekly show for one full year before evaluating if it was a fit for my business or a waste of time. I'm so thankful to say, it was clearly worth its weight in time gold (far before hitting that one year mark) and The Brainy Business is here to stay. [06:11] Precommitments can be external like throwing all the junk food out of the house or dumping soda down the drain. They can also be internal, like a promise to yourself that you will not break. And a combination. [07:20] Cognitive dissonance is essentially the discomfort we feel when our perception of ourselves doesn't line up with our actions. (This concept will have its own episode soon.) [08:28] Our brains write off a story that doesn't align with how we want to see ourselves surprisingly quickly. [10:02] We can use some precommitment tactics while in a cold state to help set us up for success when the moment comes. [11:53] The thing about precommitment is, while it does help us stick to the right stuff, we can also be way too good at ignoring our own best intentions (so it doesn't always work). The best way to combat this? Narrow focus. [13:23] We need to own that past to have a better future. If we don't (and instead let the distaste for cognitive dissonance explain it away) it will never change—we will never change—and no amount of precommitment trick will do it for us. [14:17] As with all applied behavioral science, there is a bigger problem at the root, and it is important to take a step back to make sure you are addressing the whole thing when you put your precommitment devices in place. [16:00] Finding the most important thing to work on and dedicating all your willpower to that one thing is much more likely to be successful. [16:48] Depending on the goal you choose to use precommitment tactics to help with, there are some cool apps, like Stickk. [18:26] Forest is an app that can be used if you want to be more productive and especially if you have a hard time not getting distracted by your phone. [21:13] When Nikki Rausch was on the show we talked about making it easy to do business with you and scheduling your circle back calls in the moment someone is interested. Making that precommitment is so much more effective in continuing conversations moving forward. [21:41] Get the appointment on the calendar in that moment. It is a precommitment that is a lot harder to push off than a theoretical conversation that may happen someday. [23:08] Set the expectations upfront to help everyone be on the same page and comfortable with the commitment. [24:09] I want to close out this episode with one of my favorite precommitment tactics, the loss aversion jar. [26:42] Seeing the money in the jar and knowing it all goes away if you miss, can help you keep on track especially if you have a buddy who you know will hold you to it (the threat needs to be real!). [27:34] You can celebrate your wins and achieve those goals by using precommitment in a responsible way. [28:31] If you can't commit to having the "extremely bad thin

Today I'm very excited to be sitting down with Bec Weeks, co-founder of the app Pique. Her co-founders include Sendhil Mullainathan who has taught traditional and behavioral economics at MIT, Harvard, and The University of Chicago, and Michael Norton, another Harvard professor and part of the Harvard Behavioral Insights Group, he also previously taught at MIT and co-authored a book called Happy Money, The Science of Smarter Spending. Bec got her MBA in behavioral science, entrepreneurship, and social impact from Harvard University. The whole Pique crew is clearly amazing! I had such a lovely time chatting with Bec and could tell from our first conversation that we would be fast friends. She is doing such cool things (and as silly as it is, she has some stellar rose gold headphones that I totally want...long time listeners know I love rose gold!) Beyond that of course, I love the cool things she and the rest of the Pique team are doing to help people use habits in a smart way to improve their lives. How are they doing that exactly? Listen and read on my friend... Show Notes: [00:43] Today I'm very excited to be sitting down with Bec Weeks, co-founder of the app Pique. [03:18] I love the cool things Bec and the rest of the Pique team are doing to help people use habits in a smart way to improve their lives. [04:18] Before that, a bit about her. Bec is from Australia. She started her career very briefly in law before she moved to management consulting and on to the Behavioral Economics Team of the Australian Government (BETA). [06:39] There is a really big behavioral community in Australia and it is growing every day. [07:42] She shares about a project she was part of at BETA which focused on the problem of doctors overprescribing antibiotics. Another memorable project about reducing discrimination in hiring practices. [09:51] The importance of testing was a key finding. [11:05] Things are shifting all the time. A nudge applied ten years ago doesn't necessarily work today. [12:38] Experiments that fail to produce results still need to be public so they add to the evidence base of things that do and do not work. [15:35] Pique is their attempt to take useful findings from psychology and present them to use and inspire an app. It lets others learn about the concept, experience the concept, and live the concept in their life in a small way. [16:17] Pique's main goal is to help people be more in touch with their thoughts (including self-awareness) as well as how they interact with others. [17:05] Humans crave novelty so they wanted to make sure Pique incorporated variety and different things to do. This keeps people coming back to try something new. [19:13] The habit is exercising the curiosity, experimentation, and exploration muscles. [20:26] The simplest change can make it so you are innovative and creative for the rest of the day. [22:08] The best time to Pique differs from person to person and often even moment to moment. [24:11] They have built-in reminders in the app to complete the daily exercises and also the opportunity to schedule a comeback reminder. [25:02] There is a lot of humor sprinkled within the app. They want it to be helpful and enjoyable. [27:14] You will do each of these little moments and hopefully get something small out of each of them, but when you keep doing them they build on one another and you see bigger results. [29:21] If you can provide a personalized experience for someone then they are more likely to get the benefit and come back. You want people to use it and get great value. [31:47] Once you complete the few beginning questions you land at a page with a selection of packs sorted for you. [33:02] Some packs currently in the app are Conversations, Time, Mind Wandering, Fan the Flame (connecting with your partner), and Rituals. [35:44] A lot of us have things we are not quite aware of that have ritualistic power. Some of these have been lost whilst at home and some of them we have been able to keep during the pandemic--why that matters. [37:14] Other current/upcoming packs include Decision Making, Connecting with Friends, and Boosting the Bond. They are always adding new content. [39:10] The idea of moments is to help you do those things and see what works and resonates with you. [41:58] Some of the things we have lost are obvious and some not as obvious. Taking time to think about what things have been lost and thinking about how we can add them back--even if it is in a different way--is very important. [43:19] The opposite of distraction is traction (via Nir Eyal, episode link below). [45:13] When thinking about habits, many of us think about changing them but it is also important to think about how you can use the power of habits to help people introduce change. [45:45] Pique is perfectly packaged into bite sized pieces that can help your brain to feel good and give you a mental boost. Consider this your poque to download Pique! (once you do, let us know on social media using t

Today I am so excited to talk about a fantastic club that started a few months ago on LinkedIn. You'll learn about the serendipitous nature of how this group was founded during my conversation with one of the catalysts of creating it, Louise Ward. The group is called the Behavioural Science Club, and (while it has had limits on how many people can be included in the past)...at the moment they are letting anyone with an interest in the online virtual book club of awesomeness join. That Being Said...when you do sign up to join through LinkedIn, please do mention you heard about it from The Brainy Business so we can connect and Louise knows how you got there. As you will learn, Louise has one on one conversations with every new member (there are close to 2000 now) and this is a group about interaction and engagement. If you just want a notch in your LinkedIn groups belt, this isn't the club for you. If you want to connect with others from around the world who love behavioral science learn and chat meet some amazing people Then this group is for you and you should definitely join! Louise will personally approve you and let you in. Louise was so fun to chat with, and as you will learn, she is very new to behavioral science and behavioral economics. She is someone who was passionate and took the initiative to do something, which has put her on the radar of some pretty amazing people who she secured to come into the book club to discuss their books with us. (Rory Sutherland! Cass Sunstein! So many more!!!) Show Notes: [00:45] Today I am so excited to talk about a fantastic club that started a few months ago on LinkedIn. [03:11] She is very new to behavioral science and behavioral economics, but was passionate and took the initiative to do something in a way that has put her on the radar of some pretty amazing people. [03:59] Melina and Louise met during Nudgestock. [05:06] Her interest in advertising came from her father. She grew up in an advertising house. [07:31] She has always been interested in people. [09:59] She and Prakash Sharma created the Behavioural Science Club on LinkedIn. [12:43] It all started with a love of lists and a simple LinkedIn post... [13:54] Then it evolved farther into a LinkedIn group and Louise ended up being a co-manager. [16:33] So many authors have agreed to come into the group and do a question and answer session for the members. [16:45] They didn't anticipate there would be so much interest and so much kindness from everybody. [19:07] They wanted the group to be a personal experience so membership was capped for a while. [20:46] The group is a mix of people that have an interest in behavioral science and people that work in the space. [22:07] The diversity of the group is very appealing. Even though they are reading books they are not exclusive to only behavioral scientists. [24:57] The very core is that we are all just interested in how people are behaving. [25:25] Melina and Louise both highly recommend the Nudgestock videos. [27:31] Most of the group growth has been attributed to word of mouth. [29:59] It is really beneficial to invest in a few things rather than doing many things. Showing up and having meaningful conversations is more valuable for the entire group. [31:09] Louise hopes that the pandemic's silver lining is that people had time to step back and reflect on what is important to them. [33:10] The group has been empowering to many people and has given others the chance to make connections and interact with people they didn't know prior. [35:44] The group is very active and so many people have so many great things to share. [38:41] When the group started on the first Saturday of the month they had book chat. The third Saturday was the author Q&A. Occasionally they have to alter the times to fit the author's schedule. [40:31] Now they have upgraded to meeting every Saturday. The other weeks include authors of newly published books in behavioral science. [43:01] The easiest way to find the group is to go on LinkedIn and type in Behavioural Science Club. (or just click that link!) [44:39] There are many discussions in the world right now about when it is behavioral economics vs. behavioral science. [47:27] Reflecting on my career, I (Melina) can see a lot of things I was doing years ago and understand now why they worked (from a behavioral economics lens) even though I didn't have the perfect term at the time. [49:04] During this time in the pandemic, I have been really focusing on showing up in the right places instead of trying to be everywhere on a cursory level. I want to be able to really engage with others and learn from them, have great conversation, and make a difference. This group is a space to do that. [50:01] No matter what your background or knowledge level you should come be part of this group if it interests you. I look forward to interacting with you there! Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you

Today, we are digging in on the Hawthorne Effect. This effect is named after a series of tests done at Western Electric's Hawthorne location back in the 1920s. The aim of the study was to see how changes in worker conditions would impact productivity, and it was one of the first bits of research into determining worker opinions and mindset into the company's planning process. Before we get to that, I am very excited to share that it has been officially announced that I will be speaking at Podcast Movement Virtual this year! I'm on a panel about creating better pitches for being a guest on podcasts so your efforts don't get deleted. Learn more and get your ticket. The Hawthorne Effect has two main impacts: 1) people change their behavior when they know they are being watched (especially if they know what the watcher is hoping to achieve), and 2) giving people an opportunity to be involved in the process can boost morale, productivity and more. As with every concept, there are two sides to this coin. Often, you want to avoid letting people know they are being watched as it will impact results. However, as you'll learn in the episode, there are some specific times and advantages to having people know they are being watched. Understanding this concept more will help you apply the logic within your business for the best possible results. Show Notes: [00:45] I am very excited to share that I will be speaking at Podcast Movement Virtual this year! [03:51] The Hawthorne effect is named after a series of tests done at Western Electric's Hawthorne location back in the 1920s and 1930s. The aim was to see how changes in worker conditions would impact productivity, and it was one of the first bits of research into determining worker opinions and mindset into the company's planning process. [04:50] In 1924, they were part of a study to see how the brightness of lighting would impact output...the results were very puzzling... [05:24] A few years later, Hawthorne started a new experiment with Harvard to see how relays could be created more efficiently. [06:05] The studies concluded that one big difference was being able to provide input and an ability to be treated as a human person with opinions and worth. These findings resulted in changes in working conditions far beyond the Hawthorne location and Western Electric over the decades that followed. [06:27] The other important piece of information from these studies is the finding that when people know they are being watched, and especially when they know what the researchers are looking for, it biases the results. [06:59] When modern researchers have looked back on the data from the original Hawthorne studies, they found some issues. For one thing, there were too many factors being changed at once, and that likely influenced the outcome of the research. [08:19] In its simplest form, the Hawthorne Effect is saying that when people know they are being observed, or that there is an experiment taking place, it changes their behavior. The mere act of doing an experiment impacts the results. [09:01] If you are trying to find out what people naturally do, you are running an experiment of some kind and want to see if a small change can impact behavior, you do not want those involved in the test to be biased and change their actions simply because they are being tested. [09:41] The true intent of a behavioral or psychological study like this will often be hidden within the experiment itself. [11:04] Other studies have shown that when people know what the researchers are looking for, they will on some level give a little extra effort to help prove them right. So, if it is important that you get a natural view of what is going on in the brain or behavior, you want to be as incognito as you can. [13:36] An example from my own visits to branches during my corporate life, and why staying for a longer period of time is important. [14:30] It's better to integrate with the team as much as you can to become "one of them" so they let their guard down. Sporadic visits don't have the same impact. [14:59] If you are looking for something specific in those visits, don't tell the people on the team what you are trying to do when it can be avoided. [16:38] Stanford University found that for the simple tasks, monitoring helped boost productivity because the workers made a game out of accomplishing the tasks so they wouldn't get bored. [17:03] For those with more complex tasks, productivity went down. Those workers felt the monitoring was too controlling and impacted their ability to do a good job. They felt rushed, which created stressful time pressure. [17:22] With simple tasks that can get monotonous, monitoring that encourages gamification can be really helpful in boosting productivity and making it more fun for workers. With more complex stuff, people may feel threatened, be scared of punishment for mistakes, or make them focus too narrowly on things that might not be fully important. [19:08] R

Today I am very excited to introduce you to Steve Wendel, author of Designing for Behavior Change, head of behavioral science for Morningstar, founder, chairman of the board for Action Design Network, and more. In today's chat, you will hear about confirmation bias, the power of novelty and story, behavior change, the IKEA effect, incentives, and more. There are links to all those past episodes, details about the new Certificate in Applied Behavioral Economics from the Texas A&M Human Behavior Lab (where Melina is now teaching), and information about Steve in the notes below. I really loved talking with Steve, he is such a wealth of information and I know you are going to enjoy every second of his thoughts and insights. Show Notes: [00:41] Today I am very excited to introduce you to Dr. Steve Wendel, author of Designing for Behavior Change, head of behavioral science for Morningstar, founder, chairman of the board for Action Design Network, and more. [01:54] In today's chat, you will hear about confirmation bias, the power of novelty and story, behavior change, the IKEA effect, incentives... [03:49] Designing for Behavior Change is a manual Steve wrote for his team at the time. [05:55] In the book he shares knowledge as well as what you do to put the knowledge into practice. [07:53] Steve has a PhD in political science, but he studied under an experimentalist and did many field experiments in political behavior. [09:26] Steve shares the story of the fish stranded on the beach that emphasizes the ways we can drive behavior change. [10:47] The yelling, screaming, and educating are all about the wrong value proposition. When we are trying to help somebody do something the value proposition is key. [13:04] You don't fundamentally change human behavior, you work with it. [14:49] A lot of people think that you want to take the conscious decision making out of it. A level of awareness is important and taking that physical action matters. [16:01] CREATE is an acronym for the steps people need to take conscious action. DECIDE is step by step determining the problem and crafting the intervention. [17:28] Your product and your communication are competing with every other single possible thing the person could be doing (including Bigelow-watching Netflix). [19:41] It is not about getting people's attention, but finding their attention and being there for them. [22:14] First, we have to get clarity on what we want to accomplish. That is defining the problem. Second, we have to put all that aside and look at the micro behaviors our customers are going through and might get in their way. [24:18] Steve shares one of his favorite research stories about running a competition about foreign ATM fees. [27:14] Belief, passion, and investment have little to do with the impact on your users. You need to test in the field and see if you are actually helping people. [29:20] There are plenty of cool things companies and brands can do to boost their reputation. All of it is based on treating your people right. [31:03] Mission really matters. The key to the competition was that it was communal and fun. [32:46] Steve is particularly interested in the intersection between behavioral science and data science right now. [33:31] Behavioral science and data science are trying to accomplish different things Data science is often in a business setting is about prediction and is broad. Behavioral science is fundamentally narrow and focuses on behavior change. [36:03] There is a lot of work that is being done and people are finding each other because we are currently in this differing space. [37:43] Many people were feeling fatigued during the early days of the pandemic because they were not able to rely on their habits in their everyday lives. [39:22] Getting our kids on routines can actually help them and us. [40:28] Steve is the head of behavioral science at Morningstar. He has one of the larger teams doing applied research and product development. Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show. Let's connect: [email protected] The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube More from The Brainy Business: Master Your Mindset Mini-Course BE Thoughtful Revolution - use code BRAINY to save 10% Get Your FREE ebook Melina's John Mayer Pandora Station! Listen to what she listens to while working Articles and Past Episodes: Designing for Behavior Change: Applying Psychology and Behavioral Economics Behavioral Technology Website About Action Design Steve on Morningstar Announcing! Certificate in Applied Behavioral Economics from the Texas A&M Human Behavior Laboratory Dan Ariely Interview Confirmation Bias How to Finally Change Your Behavior (So it Sticks) Questions or Answers Can B

Today I am so, so, so excited to announce something that has been in the works for many months. On Friday, August 21, 2020 it was officially announced that I am joining the team at the Texas A&M Human Behavior Lab as an Instructor for the brand new Certificate in Applied Behavioral Economics, which is enrolling now for the Fall. The core faculty for the certificate program, Dr. Marco Palma, Jeff Pool and Will Leach, will be joining me today to talk about the certificate program in more detail including how it differs from any program we've seen before. And, don't worry, nothing will be changing here at The Brainy Business except maybe being a bit more busy! You will still receive new shows and emails each Friday. A lot of you have asked if this meant a move, but the entire program is intentionally virtual so I will be staying here in the Pacific Northwest--and wherever you are around the globe you can have access to a stellar program in applied behavioral economics from the largest academic human behavior lab in the world. LEARN MORE AND ENROLL Show Notes: [00:52] I am joining the team at the Texas A&M Human Behavior Lab as an Instructor for the brand new Certificate in Applied Behavioral Economics. (yay!!) [02:53] The program is awesome and any fan of this show would benefit from obtaining a Certificate in Applied Behavioral Economics. This program is for people in business looking for that edge. [05:07] Introducing the core faculty: Will Leach is the author of Marketing to Mindstates and the CEO of the Mindstate Group. [05:59] Dr. Marco Palma is the director of the Human Behavior Lab. [07:26] Jeff Pool has a background in communications (working at the Pentagon before joining Dr. Palma's team at the Human Behavior Lab). [08:57] One of the critical missions of Texas A&M University and the Human Behavior Lab is to put the knowledge and research out to the people to continue it and so that they can improve the health and wellbeing of people in the United States and around the world. [11:37] This program provides an understanding of behavioral economics from the basic core concept to the point that people can apply this knowledge and use it in their businesses on a daily basis. [12:22] The certificate program is an online program hosted by Texas A&M University that provides interaction with instructors and fellow students. In order to earn the certificate there are six classes including 3 core classes and 3 elective classes. It is a total of 18 credit hours. [13:51] Melina will be teaching Foundations of Behavioral Economics. Some of the classes will also include co-teaching with other members from the team (and guest lectures from amazing guests) utilizing their strengths and experiences. [15:17] The course is designed to stimulate ideas to help you with your business. The faculty will be available during online office hours to answer questions and help you apply your learnings. [17:05] Marco says a huge benefit to the program is having Melina and Will because of their experiences with their own businesses and their background in corporate America. [19:27] Another huge benefit of the program is being able to access the work and research of the lab and other colleagues before it is even published. [20:53] The team offers a rich pipeline of people they are able to reach out to get answers for students when they have them. [22:12] They wanted to provide enough rigorous information, but also make sure it is accessible and understandable. [24:11] The certificate program is a great option for people that are already established in careers, but really want that edge. [26:30] Just being curious about human behavior is all you need because they are going to provide the rest. It doesn't matter what industry you are in. [28:22] They are building the program knowing that it is going to be responsive. [30:46] The program will be starting with two classes in Fall 2020. [33:01] If you happen to find a course you are excited about but not quite ready for the full certificate, you can test it out and just take a class you think sounds interesting. We wanted to make this accessible to everyone to get what they need; where, when, and how they need it. [35:03] This is intended to evolve with our learners. We plan to add more electives that are specific for certain industries and disciplines. This program is for people like you looking to get that edge in business. [35:46] The program is all online so wherever you are in the world you can have the same access as someone in College Station. [37:12] I hope to see many of you in class this fall and beyond! Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show. Important Links: Texas A&M Human Behavior Lab Certificate Program - learn more and enroll! Inside the Texas A&M Human Behavior Lab Will Leach Interview Let's connect: [email protected] The Bra

Today, we are going to be digging in on a particular aspect of optimism bias called the planning fallacy. Essentially, we humans are pretty much doomed with underestimating how much something will cost or how long it will take, even if we have evidence showing otherwise. This is why projects like the Big Dig come in years late and billions of dollars over budget, or why you constantly have a to-do list more ambitious than can actually be completed. In today's episode, Melina will spend a little bit of time telling you about how it works and what studies have found, as well as tips for overcoming this bias (and let me tell you, this is one of my personal biggest challenges so these are tips I can provide from experience!) Show Notes: [00:53] Essentially, we humans are pretty much doomed with underestimating how much something will cost or how long it will take, even if we have evidence showing otherwise. [03:02] I'm a big victim to planning fallacy. As an ambitious and optimistic person, I am confident I can do things quickly and perfectly each time, and I am prone to underestimate how long something will take me to complete. [03:42] I've been able to identify this tendency in myself. Understanding planning fallacy helps me adapt and do better in practice than I would naturally. [05:10] We fall victim again and again because success is so much easier to imagine the successful scenario than the failure. [07:26] Melina shares about the Big Dig in Boston, Seattle viaduct project and Sydney Opera House. [08:57] It is important to know that planning fallacy is more than mere procrastination. Having deadlines doesn't necessarily help either because people are expecting things will go smoother than they will and aren't planning to fail. [10:34] The focusing illusion shows us that as you look at or consider something, it feels like it is more important than it really is. Fundamental attribution error is about when you attribute external or internal motivation onto a situation incorrectly. [12:22] You have that optimism bias saying you have learned from your past projects and this is really similar to the project you did for XYZ company so you can capitalize on some of that work so that internal dialogue and story of your own skill is played up. [13:03] Your brain likes to think it is constantly getting better, so it feels good to predict you will be faster than before. [13:49] When you don't plan for those external pieces and factor them into your time budget, you are falling victim to planning fallacy. [13:59] One helpful option is to have people determine their timing as if a coworker was taking on the project. If you were to consider the coworker you will have less of the intrinsic stuff and can see the external pieces a little more clearly. Especially if you choose a coworker who you think is slower than you. [14:55] Ather brain trick to watch out for is bikeshedding, where your brain will look for smaller things to work on and make you think you need to do those in this exact moment and you can't work on the thing you really should be working on until this other thing is complete. [15:34] This may mean planning for breaks to give your brain a little bikeshedding treat to keep working. [18:17] My advice: to plan your day's commitments using the worst-case scenario. [19:35] One of my suggestions to stay on task and keep my brain organized is using a Time Timer. [20:09] I want to stress that your brain is going to tell you that you don't need to do this. That you don't need as much time as other people or that you won't get distracted. That is the optimism bias and planning fallacy talking. [20:54] Every task can be sorted by whether it is urgent or important and falls into one of four quadrants (check your freebie worksheet to try it out). [22:08] Planning for distractions will help you keep to your projected timelines and overcome planning fallacy. [24:23] Narrowing your goals and priorities to what matters and being present when you are doing those things has helped me to tackle the planning fallacy and I think it can for you too. [25:32] Sorry to tell you this, but groups are worse at predicting how long things will take or how much something will cost. [26:02] One way to get around this for groups is to have each person or department do their forecast on their own and then have someone add them all up behind the scenes instead of having a group discussion. [27:06] The plan is only as good as the tracking. [28:20] If you don't include the external stuff in the calculation there is no tracking system or project management tool that can overcome planning fallacy. [30:21] Another tip that studies have shown can help people overcome planning fallacy is to intentionally think about setbacks. [31:45] When planning for how long something will take, we often look at the full elephant instead of all its components. When you don't break a project into small enough subtasks, you are going to underestimate how long things

Today I am excited to introduce you to a really cool company called Colu. The company was launched in 2014 and currently has a staff of 40 people in the US, UK, and Israel with a mission to make more vibrant, connective, and inclusive cities around the world. Joining me on the show today is Michael Mazur, Colu's VP of Business Development and Global Business Development Manager Elad Erdan. One of the things I really love about this company is they were doing some really smart things in previous years that are incredibly applicable during this pandemic to help boost economic recovery and keep cities thriving. In our conversation, we talk about an amazing project they did in Tel Aviv that helped a shopping area see 700 percent growth in 45 days. We also talk about a new project that just launched in Akron, Ohio and get into some brainstorming around a topic a lot of people around the world have been talking about: masks. Michael, Elad, and I had a short conversation about this and came up with some pretty interesting potential solutions. I look forward to hearing your thoughts on them! Show Notes: [01:14] Colu has done some really smart things in previous years that are incredibly applicable during this pandemic to help boost economic recovery and keep cities thriving. [03:34] Colu works with cities in the U.S. and abroad, by rewarding resident behaviors that meet the strategic goals of each city. [04:41] They have worked with many different researchers and experts to create their processes including Dan Ariely. [07:00] Right now cities mostly need help supporting their small businesses. [08:45] Each city has its own unique challenges and behaviors they want to promote. [10:05] They share about the Jerusalem Boulevard Project. [12:11] They used their platform in Tel Aviv to support the local businesses. They used their mobile app to tell the residents the story of small businesses. [14:18] The business owners in that area experienced a growth of more than 700% in the first 45 days of the initiative. [15:16] In the next 45 days (even though they no longer had any incentives) the residents continued to visit the area because of the story and the emotional connection that was established. [18:04] They are working to ultimately create loyalty between the residents and the local businesses. [19:42] Akron, Ohio is the first city to launch in the states. [21:26] They created a coronavirus task force to research and figure out how they could best help cities and what cities are going through. [24:13] They are looking at the average price per transaction, the way people consume, and the way people shop by segment. [26:03] In Akron, you can get rewarded for shopping at a local business whether it is online or in-person. When you are ready to redeem your local coins then you have to be in-person. [27:46] The city can monitor and change the program as it runs. [28:54] They are also using challenges; encouraging people to develop a new habit. [31:35] Encouraging people to wear masks is something that is very difficult and a lot of people are struggling with. [33:16] Cities started giving businesses carrots for enforcing mask-wearing. In Israel, they reward businesses that are keeping the rules and conditions of the purple badge. [35:55] We need to take mask-wearing from a negative experience to a positive experience. Say, if you get caught with a mask then you can be rewarded. [36:45] It is important to highlight the celebrations. We need to acknowledge and recognize people when they are doing something good for themselves and the community. [39:05] Consider this: If you wear a mask you might randomly win a prize. [40:25] They want to help as many cities as possible in terms of supporting their key points. They focus on small businesses and diversity. [42:46] It is their mission to help cities think outside the box and in ways that will create long-term change. [45:12] They are trying to help cities unlock their true potential. [47:19] Economic recovery will take time, but hopefully companies like Colu can help make that a smoother, faster transition for many cities around the world. Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show. Let's connect: [email protected] The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube More from The Brainy Business: Master Your Mindset Mini-Course Brainy Mindset Course - use code BRAINY to save 10% BE Thoughtful Revolution - use code BRAINY to save 10% Get Your FREE ebook Brainy Pricing Course - use code BRAINY to save 10% Melina's John Mayer Pandora Station! Listen to what she listens to while working More from Colu: Colu's Website Colu on Twitter Akronite by Colu Colu on Facebook Articles and Past Episodes: Daniel Pink's book D

On today's behavioral economics foundations episode we are going to be talking about the IKEA effect as well as the effort heuristic. I've loved the IKEA effect concept since the moment I heard its name. It is such a quirky title, but so clear for what this concept is all about. In its most basic form, we value things that we put effort into more than things we don't. I'll talk more about the details and nuances as we go through the episode and there are many more ways to use this concept than assembling your own furniture. We take a look at ways the IKEA effect plays out in our lives as well as our businesses. The IKEA effect doesn't just have to be used for product businesses. The IKEA effect can play a huge role in change management. Tune in to learn more about the IKEA effect and how it impacts our lives and businesses. Show Notes: [00:58] In its most basic form, the IKEA Effect is that we value things that we put effort into more than things we don't. [03:52] The core of this concept is that when people have an opportunity to build something themselves and when they put some effort in, they will value that thing higher than something they didn't build. [04:30] Some studies have attributed this to the pride felt when assembling something yourself, and that is part of it, but it isn't the whole story. [05:19] The endowment effect is the phenomena in our brains where simply owning something causes us to find more worth in it than what other people see in it, or in its stated price. [06:47] It may seem like the IKEA effect is merely an extension of the endowment effect, but studies have shown they are different. Even when people built something and were told they could not keep it, they still valued the item they made higher than those made by someone else. [09:05] This phenomenon makes it clear why people think their own artwork is worth more than people will pay for it, or why they ask for a lot more money than their home is worth if they put a lot of "sweat equity" into creating it. We tend to think that our effort ties into the direct value and that something we spent a lot of time on is worth more to everyone else as well. [10:12] Humans use effort as a guide for value even when we are not the ones putting in the work. This is known as the effort heuristic, which has found that even when we don't have direct memory of the work in question (i.e. we didn't do it ourselves), we still connect effort and quality together. [12:25] Whichever painting or poem people were told took more time to complete was the one they tended to like more and they valued it higher. [14:17] When the image being shown is of high resolution, you can see the quality, and so that can impact the valuation in addition to the number of hours you were told it took to create. [15:22] When the quality can't be easily determined by our eyes, other pieces of information will guide the brain's determination of value. [17:26] The IKEA effect says that we value things higher when we put effort into them. So, the effort heuristic is present within our own IKEA effects, but when someone else is putting in the work, it can trigger the effort heuristic without being the IKEA effect. [18:08] When you are exchanging dollars for hours, it reduces the effort to each 60-minute increment. [21:02] When you are putting a value on your time, it is really hard to get individual hours to reflect your expertise and the true effort you have put into your career. The value you provide is often in the time you are saving them. Knowing what that is worth is a better way to find what to charge than your total number of hours put in. [21:52] The other side of the IKEA effect is knowing that people actually like to put in effort for things. [23:37] Humans aren't the only animals who value putting in the effort--birds and rats do this too. We are motivated by feeling like we did something and we earned it (whatever "it" is). [25:28] It is important that you don't make it too hard so that the project doesn't get completed. [26:40] The value of the IKEA effect was completely wiped away once they took the thing apart. [27:37] People get to feel like they are smart and savvy shoppers and get the benefit of feeling like they did something in assembling their table or bunk beds for the kids or whatever. [28:09] The research shows it is best to give a little creativity, along with a lot of guidance, to ensure people will complete the task, be more satisfied with the end result, and get the full benefits of the IKEA effect. [29:33] Using the IKEA Effect for Change Management: When you are looking to introduce a change and just throw it at someone, they have no ownership of it. They didn't put any effort in so they don't value it that much. When they are able to help build it, it can make all the difference in whether they are a productive member of the team or a big hindrance you need to help the team get over. [31:08] If there are people on your team who are particularly

Today I am excited to introduce you to Dr. Gleb Tsipursky, a disaster avoidance expert and author of multiple books including Never Go With Your Gut, which we will be digging into today, as well as The Truth Seekers Handbook, and a brand new book called Resilience: Adapt and Plan for the New Abnormal of the COVID-19 Coronavirus Pandemic. Gleb has been consulting, coaching and speaking for over 20 years and has done work for clients like Aflac, Honda, IBM, the World Wildlife Fund, and over a hundred others. He taught at the Ohio State University and is a behavioral economist and cognitive neuroscientist studying the psychology of decision making in business. His research has appeared in Behavior and Social Issues, Journal of Social and Political Psychology and more. In our conversation today, Gleb will tell you about why you should never go with your gut, ways to think about avoiding disasters, what a disaster really is, and five important questions you should be asking to identify and avoid those potential disasters. I hope you enjoy the conversation and learn some valuable tips to apply into your life and business. Show Notes: [01:18] Gleb taught at Ohio State University and is a behavioral economist and cognitive neuroscientist studying the psychology of decision making in business. [02:46] Gleb will tell you about why you should never go with your gut, ways to think about avoiding disasters, and five important questions you should be asking in your business. [03:42] Gleb is known as the disaster avoidance expert. Disasters come from bad decisions. [05:06] In his research he looks at how we deal with these bad decisions in our professional and personal lives. [07:01] A disaster is anything that makes a significant negative impact on your bottom line. [09:01] Disasters can result from one big decision or a series of small decisions. [10:19] What are the alternatives to staying where you are and what are the long-term consequences of each action. [13:19] Our emotions determine 80-90% of our decision making when we don't follow a structured decision making process. [14:14] We often feel emotionally attached and invested and don't realize it will be better in the long run to let it go. You have to acknowledge you are wrong to address the situation. [16:45] Previously, the media filtered out some information, but now we have direct communication with public figures on the internet. [18:55] We believe the first thing we hear until it has been proven wrong. [19:10] Our gut reaction and intuitions are not wired for the modern world. [20:09] The anchoring bias is when we are anchored to the first piece of information we hear. It weighs on us more heavily. [22:19] The main reason we should not trust our gut is because it was created for the savannah environment and we don't live in that environment anymore. [23:36] Herding is one way we show our tribal tendency. [25:44] There is tribal discomfort with someone that is clearly from another tribe. [26:43] An aspect of tribalism is called accent discrimination. [28:02] Tribalism can hurt morale and engagement and cause disasters. [29:59] We need to broaden our circle of empathy and who we consider to be part of our group or team. [30:09] Take an outside perspective. Step outside of yourself and look at your situation from an outside view. [31:17] Examples of aligning incentives so teams can work toward the same goal. [33:29] It is important to have globalized incentives that support the company overall. [34:44] There are more incentives that can be offered then just money. [37:36] The empathy gap has to do with us underestimating other people's emotions—especially those who are not part of our tribe. [39:11] It is important to figure out what is going to be emotionally appealing to people and address their emotional needs in a way that aligns with the right incentives for the company. [40:04] Change management often results in a disaster because the focus is in thinking of people as logical and rational instead of understanding their emotions which inhibit change. You should be addressing the emotions before addressing logic and reason. [41:52] Gleb recommends we use a 5 question process to make decisions we do not want to screw up. [42:29] We tend to look for information that confirms our beliefs and we ignore information that doesn't. We need to look twice as hard and weigh information twice as heavily that goes against our preferred choice. [43:47] Think about what a trusted advisor would say in your situation. [45:33] You need to have a revision point so you know what you are doing to do differently if things don't go as you planned. NOW AVAILABLE FOR PREORDER: Podcast Episode Best Practices Checklist (This includes the Trello Template I use for every episode and more!) Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show. Let's connect: Meli

On today's behavioral economics foundations episode we are going to be talking about survivorship bias. I decided on this episode when Kurt Nelson (cohost of Behavioral Grooves with Tim Houlihan--last week's guest) shared a comic of the concept on LinkedIn. After some conversation with Benjamin Granlund (the artist from the Lantern Group who created the comic) I learned this is part of their new 100 Behaviors project. They're sharing (you guessed it!) 100 different behaviors/BE concepts on the socials through these fun little cartoons. One of the early ones is on survivorship bias, and I have linked to their Instagram so you can follow along as well. So, what is survivorship bias? It may sound like it is only a life or death thing…and while that is part of how it was discovered it is more than just about surviving. And, like all the biases you hear me talk about on the show, your brain is using this one all the time, and it can absolutely impact the decisions you make in your business. Survivorship bias impacts entrepreneurs for sure, but it is also leading people astray in all sorts of businesses. Understanding this concept and being on the lookout for it can help you make better decisions on what to invest in—money and time, make your calculations and predictions of your work more accurate, and generally increase the likelihood that your endeavors are more successful. Let's start with the story of how this bias was discovered, which will require us to journey back to the days of WWII... Show Notes: [03:19] Survivorship bias impacts entrepreneurs for sure, but it is also leading people astray in all sorts of businesses. [03:49] Melina shares the story of how this bias was discovered, which requires us to journey back to the days of WWII. In a war, the slightest edge can be the difference between success and failure. [05:52] The problem with reinforcing the spots on the planes that have received the most bullets, is that it doesn't account for a very large and important part of the data set (the planes that didn't make it back). This conclusion is missing what's missing. [06:46] In fact, those blank spots are where you want to reinforce the planes. It will make them stronger in those places so they can take some fire there and not go down. [07:39] One common example of survivorship bias is when you seek advice on how to be successful. [09:11] 2 million of the students who start college each year will drop out before graduating. [10:04] If you only look at the successful people and ignore those who failed you aren't getting the true picture. [10:53] We just see the few who win and it makes it seem like those stories are more common than they really are. [11:24] As we look back on our own lives, we see choices that we think got us to where we are, but those on their own are not the answer. [13:15] There are lots of other factors that determine success. If you do exactly the same thing year after year you will not always have the same end result. [13:51] Survivorship bias was making them only look at what they did and assume that it is the winning formula no matter what, but it just isn't the whole picture. [15:10] Just because two things are seen at the same time doesn't mean that one caused the other to occur. This is the difference between correlation and causation. [16:07] Just because two data sets appear to go together doesn't mean one actually caused the other to happen. [16:59] Even if there is causation it doesn't mean that it is the only thing that is causing that particular outcome to occur. [18:12] For every 1 popular book out there, one million unsuccessful books and their authors are the other side of this survivorship bias phenomenon. [18:41] There isn't a magic pill or silver bullet to "win." It takes trial and error and a lot of hard work. [19:28] Being ready to invest and do the hard work (which includes looking at your goals and problems from all angles and taking the tendency of survivorship bias into account) will put you miles ahead of your competitors and make it more likely that you will succeed too. [19:46] Some other areas where survivorship bias can cause us problems is when we say things like, "I will win because I have a better product or service than they do." [20:30] The lesson here is to look at all the possible data points and not focus on one single aspect. [20:48] Another place where survivorship bias comes into play is on customer satisfaction surveys and other questions you are asking of your current customer base. [22:31] Across the board, if you aren't considering the full data set of people, your results (and consequently the actions you take based on those results) will be biased. [23:00] A good rule of thumb is to stop, take a breath and ask, "What about everyone else?" or "Who have we not thought of?" "Who else is there?" [25:29] Taking the time to slow down and consider what might be missing, what the data could look like from another angle and reframing your questio

Today features an interview with Tim Houlihan, cohost of Behavioral Grooves podcast and the Weekly Grooves podcast, also the founder of Behavior Alchemy. Behavior Alchemy is a consultancy helping companies to incorporate behavioral economics into their businesses, we will talk about some of his work and past projects – including one with Dan Ariely. In life, I think it is important to find joy and humor in the small things. So when there was an opportunity for some with this episode, we took it. You see, I was a guest on the Behavioral Grooves podcast for episode 109 of their show, and even though this was recorded several weeks ago, Tim and I agreed it was worth holding onto for a bit so we could have this crossover episode of sorts be the same number. In our conversation, Tim and I focus on goals. Something you have heard covered a lot on the show, and while he has some similarly aligned tips, the stories and studies he references are mostly going to be new to the show. And in my opinion, reinforcing tips is important to help you find the right way to achieve more of your own goals. It is a good thing to revisit in as many ways as we can so everyone can find the thing that resonates with them specifically. I am sure you will find some interesting and useful tips and tidbits in this conversation with Tim. Show Notes: [01:32] Habit Weekly shared their top behavioral science content of 2020 so far. There were only 4 podcast episodes included, and my interview with Dan Ariely on the Shapa numberless scale (ep 101) was one of them! Thank you Habit Weekly! [02:51] In life, I think it is important to find joy and humor in the small things and so when there was an opportunity for some with this episode,we took it... [04:37] 20 some years ago, Tim got involved in a business designing incentives and employee engagement programs, rules and rewards. That led him down a path of falling in love with behavioral sciences. [05:59] They use the Behavioral Grooves podcast to expand their own learning and it has become a public service about application of behavioral science at work and life. [06:20] On the Behavioral Grooves podcast they talk to researchers, practitioners, and "accidental behavioral scientists." [08:26] Think as big as possible when you are setting your goals and vision. When you are looking at actually moving forward, you want to go as small as possible, especially when executing. [09:29] Tim uses Big Hairy Audacious Goals (BHAGs). These light up our prefrontal cortex which gets our imagination engaged. [10:18] If you don't break those big goals down into small bricks you can't build the cathedral. [10:29] The articulation of the plan is most important in any goal development. [11:27] Self-selected goals are the richest kind of goals we can have. [13:01] Since the half marathon Melina has been training for is pivoting to a virtual half marathon she is having to revisit and reshape her vision based on what the world will allow. [15:21] Social media is going to help people to stick to their commitments and achieve their goals. [17:12] If people are not given due dates they often procrastinate and struggle to meet the goal. [20:03] Many people would do the bare minimum to hit their goals at the call center. [21:39] The environment and context was shaping their decisions. [23:42] A More Beautiful Question talks about using questions instead of answers and some schools that have come up with alternative models to teaching. [25:03] Tim recommends the fewer the goals the better and no more than three goals at one time. (Matching Melina's advice! Narrow down to your three goals with the free Master Your Mindset Mini Course) [25:46] Goals need to be time specific and time manageable. Tim suggests month long goals or quarterly goals. [26:25] The shorter the goals, the more likely you are to achieve them. We rely on achievement to propel us to take on the next goal. [27:41] We can do so many things to contribute to our goal if we are thoughtful of our goal, our daily activities, and have a plan. Failing to plan is planning to fail. A goal also needs to be measurable. [30:39] Start small with something that is totally achievable. [31:34] When you set up your to-do list with 35 things and you only get 3 done you feel like you failed. [34:36] Everything we think should work tends to backfire and often make things worse. Melina shares the example about the day care. [34:49] Tim is a big fan of using non-monetary incentives in the corporate world. [36:10] The best way to motivate team members is with their emotions and that is a non-monetary incentive. [37:21] The group that was given gifts worked 30% more and delivered more effort, and created better results than the group that received cash. [39:02] Every time you reconsume the gift it takes you right back to that great feeling of winning the item the first time. [41:29] If you have employees and you are giving things away and you can retrigger the memory it increases m

2 years. 6 continents. 108 episodes. 162 countries. 207,000+ downloads.and this is just the beginning… Today's episode honors the two year anniversary of the podcast with some celebration and my tips for starting and growing a successful podcast. The Brainy Business podcast launched with its first three episodes on Friday, July 6, 2018. We have had an episode every single week since then and never missed a Friday release or newsletter in those 2 years. Hooray! That first month had 844 downloads, which I was incredibly excited about at that time! As you'll learn in this episode, my show actually hit the average podcast download numbers in that first month...and since then things have gone up and up. It took 483 days to hit the first 100,000 download milestone and less than half that time (only 237) to get the next hundred thousand. If pace stays the same we will be passing the quarter million mark around October, which is amazing as well! There have been listeners on every continent (minus Antarctica) and 162 countries. Shout out to the top downloaders! Not surprisingly, the US tops the list, followed by the UK, then Canada, Australia, India, Germany, Brazil, Mexico, Israel, and Spain rounds out the top 10. Coming in at 11 we have the Netherlands, followed by South Africa, Ireland, Sweden, Denmark, New Zealand, Switzerland, Singapore, United Arab Emirates, and France rounding out the top 20. Shout out to my friends in Canada! The top Canadian provinces by downloads are Ontario, followed by British Columbia and Alberta. And to those in the states, we still have a lot of the same top 10 with a fairly similar order: California has the most downloads followed by Washington, Texas, New York, Illinois, Florida, Georgia, Virginia and North Carolina. What has made the podcast successful, and what can you learn from my first two years in podcasting? That's what this episode is all about. I'll answer questions like: How long does it take to run a successful podcast? Do you really need to be weekly? How many downloads does the average podcast get? Do most podcasts make money? How should you strategically think about your cover art and podcast name? What the heck is podfade, and should you be concerned about it? All this and more covered in this week's episode…[PLUS my awesome Podcast Episode Best Practices Checklist is now available for preorder!] Show Notes: [00:46] This week is the two year anniversary of The Brainy Business podcast, which launched with its first three episodes on Friday, July 6, 2018. [01:38] There have been listeners in 162 countries. [04:04] I appreciate each and every one of you who has ever interacted or connected with The Brainy Business. [06:10] Podcasting is a growing medium, and just like any exciting new format it can feel like "everyone" has a podcast and that you "must" be there to be successful in business. [07:24] If it isn't worth your time to be there and build it the right way, it probably isn't worth doing. [09:39] Sure, I could spend less time preparing for each episode, but all those things are what make The Brainy Business successful. [11:41] I did the research and invested in good audio from the beginning. [13:45] Why is a podcast a good fit for your business model and how will it support the work you do? [14:28] One other reason I started the show was to help people understand what behavioral economics even is and how it can apply to business. [16:36] Knowing your goals before you jump in and create a podcast is incredibly important and should be used to determine how you set up the structure of your show. [19:03] Clear, concise, targeted content can often take more time to create than something longer. [20:35] Most podcasts don't get past episode seven. [21:27] Podcast stats aren't as detailed as we would all like them to be. [22:35] Most podcasts do not make money, and actually cost money. [24:05] Podcast downloads are not a perfect science and the numbers look at the average after an episode has been live for 30 days. [26:54] According to Libsyn, the hosting platform I and many other podcasters use, the average podcast episode has 141 downloads after 30 days. (As you saw in the intro, The Brainy Business was above this from the first month of launching the show, even though I didn't have a big list - the tips in this episode are a big reason why.) Preorder Your Podcast Episode Best Practices Checklist NOW [28:22] Think about how you will stand out from competitors. [28:56] Knowing which areas are searchable is important in helping people find you. [30:45] Searchability and clear alignment to the topic was most important. [32:43] The name and art should draw their eye and make them want to click to get to the next step of reading your full title and description and decide if they want to listen to an episode. [33:38] If you are going to be investing in a podcast, it should be a main driver of business for you. [36:06] In my opinion, it is almost not worth doing if you aren't

Today's episode features a discussion with Kwame Christian, host of the Negotiate Anything Podcast, with tips for having difficult conversations around racism, inequality, and more. Today is an especially important episode of the podcast, as it was inspired by the current landscape in the United States, which has grown to include global conversations around inequality and racism on all levels. I'm not sure if you have noticed this, but in general, I make a very conscious effort to not be political or inflammatory on the podcast. It is my goal to be impartial whenever possible, and I debated for a long time about whether or not to do an episode on this topic. I didn't want to say more of the same stuff that was out there and wanted to make sure that the value was still tied to the intent of the podcast: applying brain and behavioral science into business. I had almost decided to not cover the topic when Brian Ahearn (whom I interviewed on episode 104 of the podcast) sent an email with a guest suggestion – a friend of his named Kwame Christian. Kwame is an attorney, negotiation expert with a background in psychology. In our conversation today, Kwame will tell you about his three-step framework for negotiating anything, from 9-figure business deals to conversations with kids. He will also share how even though his personal and business credo is "The best things in life are on the other side of difficult conversations," he was reluctant to be a voice in the Black Lives Matter movement, but once he stepped into the role with a virtual town hall, he has been featured in Forbes, CNBC, and USA Today. He is also one of the nicest guys around, and while his kind demeanor may seem counterintuitive in negotiating, I think it is his superpower (and it can be yours too with his great tips!) Show Notes: [00:52] Today is an especially important episode of the podcast, as it was inspired by the current landscape in the United States, around inequality and racism on all levels. [01:24] It is my goal to be impartial whenever possible, and I debated for a long time about whether or not to do an episode on this topic. [02:11] Kwame talks about the importance of compassionate curiosity, has a TED Talk on finding confidence in conflict, and incorporates details about how the brain works in his tips for how to have productive conversations. [04:15] In our conversation today, Kwame will tell you about his three-step framework for negotiating anything, from 9-figure business deals to conversations with kids. [06:14] His motto is, "The best things in life are on the other side of difficult conversations." [07:27] You can empathize without agreeing. [09:29] The thing that drew him to negotiating was psychology. [11:16] Kwame hosted a virtual town hall and expected a couple dozen attendees...over 1,000 people showed up to discuss having difficult conversations about race. [12:19] Race is a difficult conversation, but an important one that we can't ignore anymore. [14:39] There is a fear that often keeps people from saying anything at all. [15:56] The majority of people want to get engaged, but don't know-how. His advice is to do something. Anything! One small thing at a time. [17:01] We have to control the narrative for ourselves. [17:57] There is something you can do. Just find one little thing and do it. [19:15]The Compassionate Curiosity Framework is simple and flexible to use in different difficult situations [20:20] The compassionate part is important because it helps to moderate your tone. [22:01] The IKEA Effect is when we feel much more connected and are willing to overlook the flaws on something we built or created ourselves. [24:09] Take the time and prethink difficult conversations as much as possible. [26:53] He likes to use the gap theory of persuasion. The gap theory is using a compassionate tone but asking questions that show a gap in their understanding. [28:54] Confirmation bias is so powerful, prevalent, and has an incredible impact. [30:02] We often don't do the personal research because we want to avoid the emotional discomfort. [32:06] With our subconscious brain running the show, it is able to process 11 million bits of information per second that it is constantly filtering what is making it to your conscious brain, that can only take 40 bits of information per second. [35:03] You were placed in this system to see what you see from your perspective. [36:05] This awakening doesn't feel good and often people experience that discomfort and pull back, worried it is a sign they are doing something wrong. It is actually a signal of growth. [37:36] An example of the focusing illusion and we hate to see ourselves on video. Shifting your focus can help you find the one small thing you want to do each day. [39:57] Kwame is often asked how to talk to kids about this sensitive topic. If you are not talking to your kids then other people are. [40:36] We can use the Compassionate Curiosity Framework to talk with our kids also.

On today's behavioral economics foundations episode we are going to be talking about the network effect (or perhaps it is more accurate to say "networking effects" because as you will learn throughout the episode, there are multiple kinds and situations for how they can be useful in a business). I am also going to talk about some pitfalls to look out for and how to incorporate behavioral economics into all of that. This episode is related to the topic from last week about subscription models and even more directly to membership groups. I will explain that specifically throughout the episode, and if you haven't listened to that one yet you will want to check it out. It's episode 105 and there is a link for you in the show notes. Today, I'll tell you what the network effect is and how it works, what it is not, some pitfalls to look out for, behavioral economics concepts to keep in mind, and so much more. And before we jump right into the network effect, a quick shout out to Clayton Key, whom you can all thank for today's episode. Clayton and I connected on LinkedIn and in our messenger conversation he recommended the topic of this episode. Do you have a topic or question you'd like to suggest for an upcoming episode? Connect with me (Melina) on the socials using the links below. Show Notes: [01:01] This episode is related to the topic from last week about subscription models and even more directly to membership groups. [03:27] Thank you to Clayton Key for this great episode suggestion. [04:09] In its simplest form, the network effect is when the value of a business increases as the network grows. [05:51] The network effect makes it so new people joining the network increases the value for everyone. [06:51] Ebay, Etsy, Facebook, Twitter, Linkedin, YouTube, PayPal, Uber, Lyft, AirBNB, Google, Wikipedia, Pinterest, and Apple's App store are just a few of the many businesses these days built on the network effect. [08:18] A direct network effect is when an increase in usage and users leads to a direct increase in the product or service's value for other users. [08:59] When you get to a platform business they are a little more complex because there are multiple user groups to consider, which is when you get to a two-sided network effect. [10:37] The key difference from a two-sided network effect and a direct network is that the type of user joining matters. [12:19] In the case of a social network, which is a two-sided network as well, they need to be monitoring their user quality to remain viable and increase value. [13:47] To attract the advertisers and make money, you need good users. [15:14] As each local network grows and increases engagement, the value of the entire network grows along with it. [16:50] People can of course be a part of many groups, and so attracting diverse users who understand all the content they can get access to on the platform is key. [18:19] Network externality is an economics term that is showing how demand increases when other people buy a product. [19:36] A business can have network effects but not be "viral". [21:18] If you are looking to start on a network effect business, you need to understand when you will hit critical mass, what it looks like when you get there, and what you need to do to get there quickly so you can move into that value point. [23:14] So, when setting up this model remember that you need to be able to stick it out for a while up front while it may be costing you money, knowing it will pay off once you hit critical mass. [25:13] This platform model is looking for quality growth. [26:34] Network effects are not quite a house of cards, but being dependent upon users working harmoniously together does make a somewhat precarious beast that needs constant monitoring and attention. [29:07] 5 C's of network effects are connection, communication, collaboration, curation and community. [30:16] Help make it easy for people to feel like they are part of the global community so they can take ownership over their content and be part of quality creation within the platform itself. [32:29] Put effort in to retain the customers you've added. [34:56] You want a platform people actually use so the network effect can grow and thrive. [37:10] Brand extensions are a delicate balance of finding something that is related enough to make some sense for tying it to the original brand, but not so close it feels like it should have been part of the main offering to begin with. Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show. Let's connect: [email protected] The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube More from The Brainy Business: Master Your Mindset Mini-Course Brainy Mindset Course - use code BRAINY to save 10% BE T

Today, we are going to be talking about subscription models and membership groups. I have been thinking about an episode on this for a long time. As many of you know, if you've been listening and following The Brainy Business for a while, I launched a membership group at the beginning of 2020. It's called the BE Thoughtful Revolution, and I'll use examples from my experience of setting that up (as well as others) throughout the episode. At the center of any really strong business is finding the experience people want (the biggest benefit to them) and showcasing the value in a way that makes it easy for them to say yes. Even if you are thinking about creating a subscription or membership now because you think it will benefit your business, solid customer experience has to come first in the design and final decision. You need to think of the people you are creating this for, what they want and what they will be excited to pay for. In this episode I'll talk about the behavioral science concepts behind subscriptions and memberships, how to consider if they are a fit for your business, and then I'll do a Q&A with the actual questions listeners like you posted to me on social media. If you don't yet follow The Brainy Business, you can find me as @thebrainybiz on Facebook, Twitter and Instagram. Links to all the socials below! Show Notes: [01:35] The environment is going to be changing constantly over the coming months (and possibly years) as we all adjust to the impact of coronavirus. [02:24] What we can do is take a look at our businesses and industries to determine how to reinvigorate the offerings we are putting out there, and provide them in a way people want to do business with us instead of what was convenient for us to set up in the past. [04:03] At the center of any really strong business model (subscriptions and memberships included) is finding the experience people want, the biggest benefit to them, and showcasing the value in a way that makes it easy for them to say yes. [05:43] Being inside a business or industry, it is far too easy to get hung up on the specifics of what you do or offer. The problem is then you lose the big picture and in many ways don't see how you are becoming obsolete. [07:23] I remember my professor saying, "People don't want a drill, they want a hole." Such a simple shift, but it completely changed my brain and approach to business at that moment. [09:15] Melina shares a story about Henry Ford from Harvard Business Review. [11:47] Ford put customers first. He found a price where the masses could buy a car and then figured out how to build a business to make it happen. [14:13] Thinking about customer experience is always a great place to start. [15:31] Any business model takes work to create value and be something people want. [17:41] It is important to think through what you will be offering and how it compares to what you do now. [18:04] A subscription is something that people pay for on an ongoing basis and they get access to a product or service. [19:52] Another model for subscriptions that has become very popular is the "free version" and "paid version" models. [21:05] The difference with a membership model is that you are typically paying for the right to have access to things, but you don't necessarily have to take advantage of everything included. [23:24] With a membership, you still have the benefits of a subscription type model, that you can plan for payments to be coming in regularly, and the people who sign up get more for less than what they would pay for single-use or to buy all the things themselves. [25:05] If you are on retainer, someone is prepaying for access to you for a certain number of hours. [26:24] Is a membership or subscription right for you? Walking through a "writing club/coach" example. [28:36] You will need to do the upfront work to set everything up, but eventually, you could hire someone to manage most of the group stuff, so it doesn't take up too much of your time, which frees you up for more time at your $200 an hour rate. [29:54] Taking the risk out makes it an easy yes for people. [31:40] If you do set up a membership group or subscription, consider launching at a discounted price for a very limited time to help set up a foundation of participants. [32:32] People pay for all kinds of things and are happy to do so when they know what the value is. [34:01] The value proposition is clear because there is an established "other option" that is more expensive. [35:07] If you don't consider and establish the comparison point and point it out with the proper high anchor, your selling conversations will be a lot more difficult. [37:06] Framing, anchoring, relativity, and knowing your value are very important in the way you communicate any opportunity. [39:13] Instead of creating an offering that seems like the best fit and offer for your business and then finding a way to sell it to people, start with what they want and find how that can be done by you

Today, I am very excited to introduce you to Brian Ahearn, one of only 20 trainers certified by Robert Cialdini to teach on his behalf in his methods of influence. There are episodes of the podcast on reciprocity and social proof which are concepts featuring some famous studies by Cialdini, which have changed the way we communicate and persuade. In our conversation today, Brian will tell you about his book Influence PEOPLE (for which PEOPLE Is an important acronym). We also discussed a serendipitous moment from about 30 minutes into our pre-call conversation... Brian is a wealth of knowledge and a fantastic guy. There are links to connect with him in the show notes and to check out his book Influence PEOPLE, which is definitely worth the read. Listen up for the Post-It Note study - it will blow your mind! Show Notes: [02:04] In our conversation today, Brian will tell you about his book Influence PEOPLE (for which PEOPLE Is an important acronym). [03:34] Brian's main focus over the last two decades has been working with salespeople, but he also works with business leaders, business coaches, and attorneys. [03:47] Brian's strength is the application of the psychology of persuasion. [04:18] There are only 20 people (including Brian) who are certified around the world to teach the Cialdini method. [07:34] Cialdini was so excited as they shared how they were taking his life's work and using it to better their organization, selves, and relationships. [09:20] The book Influence PEOPLE was created to help people apply this research. [10:16] The book offers very practical examples in short chapters to help readers put the research into action. [11:48] Brian shares a story from the book about a friend named Jim. [12:48] In an email if you reply to the entire group you can often put enough pressure on the members to encourage them to complete a task quickly. [14:48] When using this example you can be general without specifically naming the person you are waiting on. [17:14] Brian really works with people to get them to a point where they feel like they can totally run on their own. [18:08] "There is nothing high or low, but comparing makes it so." [20:01] The PEOPLE acronym stands for Powerful Everyday Opportunities to Persuade, that are Lasting and Ethical. [20:23] It is powerful because it is backed up by research and it is an everyday skill. [21:17] When Briain talks about persuasion he doesn't mean only changing hearts and minds, he also means changing behavior. [22:15] If it is done right, sometimes it can lead to lasting change. [22:21] It all has to be done with an ethical framework. [22:51] Brian shares about the Post-It Note Nudge. [24:10] Using a sticky note will probably get a lot more people to do what you are asking them to do and has many other benefits. [26:56] Brian shares a story about a community that added a sticky note on an info flyer about a bond issue. [28:46] The moment when we need to use these tools most is when our brains are most likely to be overwhelmed. Our subconscious is likely to take over and we are going to revert to what has worked or we have done in the past. [29:25] Always stop and re-read an email before you send it. Ask yourself, "Is there anywhere I could be more persuasive?" [31:01] Ending on a question is so important and it increases response rates. [32:06] Brian learned that if he asked one question at the end of the email, people would often come back with longer, more thorough responses and it increased his personal brand. [34:21] People do business with people they like and want to be associated with. [36:45] Melina always ends really important emails with a question and she has seen it boost response rates. [39:39] Brian shares the story about the photocopy shop and how we are so conditioned by the word "because" as we grow up. [40:41] If you need someone to do something, ask them, say "because" and give them a reason. Also, don't ask on the drop-dead date. [44:52] The Post-it note is able to cut through the subconscious filter and draws attention to something being different [46:05] Next week, in episode 105 we are going to be talking about subscription models, different businesses that apply them, and how to be thinking about them in your business. Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show. Let's connect: [email protected] The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube More from The Brainy Business: Master Your Mindset Mini-Course Brainy Mindset Course - use code BRAINY to save 10% BE Thoughtful Revolution - use code BRAINY to save 10% The 10 Behavioral Economics Concepts You Need To Know (and how to apply them) ebook Connect with Brian: Brian on LinkedIn Brian on Twitter Influence People Websi

Today's episode discusses why every business needs to revisit their lead magnets, freebies, and opt-ins right now. I've mentioned on a couple of recent episodes that I have been working with a lot of clients on lead magnets, most specifically with those in the BE Thoughtful Revolution membership group where we have spent over a month working through updating everyone's lead magnets, opt-ins, freebies, as well as setting up solid drip campaigns. For many, this was an opportunity to create their first lead magnet. Perhaps it was on their to-do list for a very long time, but they never quite got around to it. Now is the perfect time to work on your lead magnet for a couple of reasons. First, the environment has changed. Maybe your old opt-in is outdated and doesn't make sense anymore or maybe it is still relevant but there is something else you could share that would be even more impactful and tie into what matters to people today, while still being true to your brand. One of the reasons I decided to do this episode right now is because this is so important for every business to be successful during COVID and beyond. CLICK HERE FOR YOUR FREE DOWNLOAD! Show Notes: [01:32] Now is the perfect time to work on your lead magnet for a couple of reasons. [03:26] You are giving something away for "free" which is valuable enough that the recipient is willing to reciprocate by giving you their email address and knowing that they will likely be placed onto your larger list. [04:31] Episode 3 was about what a lead magnet is and if you need one (and in general, the answer to that is yes). At any time, businesses can benefit from having at least one opt-in or freebie. [06:42] Just because you started with one lead magnet doesn't mean you need to keep it. I know there was an investment to create it, but if it isn't aligned with what people need today it is time to swap it out. [07:30] There are a few things different today that impact the style and content of what makes a lead magnet desirable. [07:52] Your customer's brain is overwhelmed so quick wins are more important than ever. [08:41] When the podcast started, I began creating freebie worksheets. Most of them are one page and have a few tips and lines to take notes. Some of them are two pages, but they are all very simple to use and apply the learning from a specific concept or topic. [10:42] I created a new freebie (Master Your Mindset Mini-Course) which lets people see where all the courses are housed and get a taste of what a course from The Brainy Business is like. [12:20] If I was looking to create a new lead magnet, I would start by thinking about what people need now. What is keeping them up at night? What expertise do you have to share in a simple, easily digested way so they can get a great quick win and build a positive association with your brand? [14:19] You will feel like whatever you are creating is not enough. That it won't justify the need someone has or feel like it is worth the time or exchange of their email address. [15:29] Too much means no impact on a lead magnet. [15:53] One quick win means it is direct, to the point, and easy to take action on. [16:52] Being instantly accessible is critical to a lead magnet's performance because people don't like to wait for things these days. [18:01] Having an automated response that is less detailed but can be sent within seconds of hitting submit is WAY more important on this initial opt-in item. [19:39] A solid lead magnet will showcase you and your expertise and make them associate you with the items they can hire you to solve. [20:56] Lead magnets are about overall brand awareness and the long game. [22:37] Remember that the lead magnet you set up now, especially if people can't buy from you in your traditional model, is about a long game. You are laying the groundwork today for a future state that could be many months from now. [23:23] There are all sorts of drip campaigns, but whatever you create should have at least three emails and be thoughtful about how it ties in with the lead magnet, customer experience, and the future offers that will be made to them. [26:49] Remember, now is the time for everyone to look at and rethink their lead magnet because you need to make sure it still fits the market. Is this what people need today? What would make it more valuable? [27:02] There are more people online than ever before and they are looking to solve problems that never existed. People are trying out new types of businesses and changing their habits. It is the perfect time for a company to provide value and create new loyal connections. [28:16] Less is more, especially in these times. [28:54] Want to get the full Lead Magnet Course? It's EXCLUSIVE for members of the BE Thoughtful Revolution – use the code BRAINY when you join to save 10% Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the sh

Today, we are going to be covering confirmation bias – I know this sounds like one of those concepts you probably think you "get" and that it might not be necessary to listen to...but believe it or not, that is actually your confirmation bias talking. This episode will help everyone understand just how much confirmation bias is impacting your life and business. I will give examples and tips throughout the episode. In its most basic form, confirmation bias comes down to the brain's desire to be correct and the subconscious filter deciding what gets through and stored...and what gets ignored. Because the subconscious is working from established, proven rules to make these choices, it is looking for stuff that fits those existing rules. While the brain can look and find things that disagree with its perspective, that isn't the natural tendency. The easiest thing to do - the most satisfying thing - is to look for items that confirm what you believe. That makes you feel safe. This is why two people can witness the same event and have completely different interpretations of what happened. You are seeking out different information and retaining different pieces to suit your brain's needs. Some of these are ingrained in us genetically over thousands of years, but many of them are built over our lifetime. Confirmation bias doesn't have to be a bad thing and it can very much work to your advantage in life and business. The flip side of the confirmation bias coin is knowing that your brain naturally does four things and so if you are selective about your goals and what you want to change in your life, you can set up your brain's natural tendencies to align with them. Show Notes: [00:57] This episode will help everyone understand just how much confirmation bias is impacting your life and business. [03:10] The numberless scale (Shapa) we discussed in episode 101 that has the potential to change the way we think about health and wellness. It's a super cool product and you should definitely check it out. [04:28] In its most basic form, confirmation bias comes down to our brains' desire to be correct and the subconscious filter deciding what gets through and stored...and what gets ignored. [06:57] You could see the exact same event as someone else and have a completely different interpretation based on your existing beliefs and confirmation bias. [08:19] Confirmation bias is especially ramped up and more prevalent in circumstances that are tied with emotions. [08:39] Melina shares the four main ways you see confirmation bias. [09:44] Kids' behavior does not get more hyperactive when they have sugar. [12:19] You will seek out information that supports your belief, and be more likely to believe, remember and share those items that support your belief. [15:06] This reinforcing tendency is because of illusory correlation, which is when we overestimate the relationship between two items even when no relationship exists or it is very weakly associated. [16:53] We humans are pretty bad listeners by nature because our brains are processing so much information at any given time. [18:21] For many people in business, if you aren't confident in your offers or pricing, you may end up recommending something smaller than they would actually want or need because it feels better for you in the moment. [19:49] It is important to not start the conversation with a predetermined recommendation before they have had a chance to tell you about their situation. [23:29] If you can convince your brain that it IS worth it and that the price is reasonable, they will be more likely to hear it that way. [24:39] Look at where you may be biased in a way you don't want to be, and try to be more open minded. [25:43] If you are selective about your goals and what you want to change in your life, you can set up your brain's natural tendencies to align with them. [26:15] If you want to set up a new belief (and only pick one at a time until it becomes a habit) then you can eventually reinforce it until you naturally confirm it all the time. [27:18] Eventually, I changed that confirming bias and pushed past that belief and started to think of myself as a runner. [28:20] People who have been injured will often see themselves as a victim, especially while dealing with the legal stuff. [30:12] Being able to run and train up for my half marathon is very important to me, and picking new beliefs that I want to confirm are central to that success. [31:27] Athletes, actors, really successful business people all use visualization techniques and affirmations to help them reach their goals. [33:18] Next week, in episode 103 I am doing an episode dedicated to rethinking your opt-ins and lead magnets during coronavirus and beyond. Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show. Let's connect: [email protected] The Brainy Business® on F

Today's episode features a discussion with Dr. Dan Ariely – you know that name by now right? We talk about the numberless smart scale from the company he co-founded, Shapa, and all the research behind it. I am very excited to introduce you to Dan Ariely, one of the best known behavioral economists in the world whom I have mentioned many times on the first 100 episodes of the show, and I know I will continue to do so after he helped me kick off these next hundred. He wrote Predictably Irrational and several other books and has done some amazing research. As I mentioned in the opening, Dan has worked on a huge amount of projects, and while this conversation could have gone in a million directions, we are specifically talking about Shapa. The company he co-founded showcases a numberless scale that was created to change the way we all think about our health and make it easier to do something that many of us find scary…stepping on the scale. The discussion ties back to a bunch of past episodes (including loss aversion, partitioning, the focusing illusion, herding) as well as on an experiment I did which was influenced by one of Dan's studies from Kenya. We also talk about overall health (emotional, physical, financial) and how it is all related. I hope you enjoy the conversation as much as I did, and thank you again for joining me Dan! CLICK HERE FOR YOUR FREE DOWNLOAD! Show Notes: [02:18] In this episode we are specifically talking about Shapa. A company Dan co-founded for a numberless scale that was created to change the way we all think about our health. [03:26] Shapa has many components. How would a social scientist approach helping people lose weight? [05:04] The struggle for health is a daily struggle. You can't be healthy five days a week. It doesn't work. Your healthy life needs to start in the morning. [07:08] They started studying the bathroom scale. They learned it is a good idea to stand on the scale every morning, not at night. [08:01] The second thing they learned is that weight fluctuates from 2-8 pounds a day. (wow!) [09:38] They also learned that people think their weight will change very fast if they go on a diet. The reality is that it can take 8 days to two weeks to see results. [12:31] A year where nothing bad happens is an amazing year. [12:36] The story of obesity in the U.S. is a story of gaining a little bit throughout the year and not losing - especially in November and December. [13:39] Shapa created this 5 point scale which includes, "congratulations nothing bad happened!" They tested it and the studies were great. [15:34] We are obsessed with absolute levels. People usually want to know how what they are doing is improving their health and they want to be motivated. [16:55] When people go to the doctor they get stressed and their blood pressure goes up. If you go to the doctor and you are the kind of person that gets stressed because you're seeing a doctor, they might prescribe you blood pressure medicine because you are stressed because of the doctor not because you are really stressed usually. [18:29] The way they start the process with Shapa is that they ask people to tell them about their environment. [19:54] Suggestions are sorted by the probability that you will take them and then they give you tips. [20:07] They focus on small changes and do it for two weeks and then add the next one. [22:53] Look with fresh eyes from social science about little things in life and then use the digital revolution to really change things. [24:51] The problem is that the scale has become so negative and the numbers are so depressing. [25:44] How much do you want to be in a race where the best you can do is not that bad? [27:59] We need to change our thinking about finances and health. We need to do more things that give people a sense of success and achievement. [30:34] Finances and health are both long-term and often painful struggles; we need strong motivation to achieve there. [32:17] What are the incentives we can give people to behave in a certain way? [33:30] Shapa has five levels and they each have a different color. [34:39] Mostly we want to have no change with improvements from time to time. [35:12] Focus on the things where you can make the biggest behavioral impact. [37:02] The feeling of success is important to keep people motivated. [39:46] It is time to fix some of the habits we got wrong during the coronavirus crisis. It is time to take care of ourselves and feel better about ourselves. [43:10] It always comes back in this way, and you never know what is around the corner. [43:33] If you are working on a health journey as well, with a Shapa or on your own, let's support each other and do this together - connect with me on social media (links below!). Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show. Links and Resources: [spacer height="20px"]Melina@TheBra

It is amazing to realize that we have been together now for 100 episodes and that by the time this comes out there will be more than 180,000 downloads in over 150 countries. It is a significant understatement to say that the podcast has far exceeded my expectations for what it could be, and leading up to this milestone I have been reflecting a lot and trying to decide the best way to approach this important episode. I thought about doing 100 small tips and insights for 100 episodes (which would have been a very rapid-fire hour to be sure!) But, in the end, I have decided to boil that into the one really big thing that has set me and The Brainy Business apart. Looking back on these 100 episodes and the success I've seen in the podcast (knowing there is always a lot of opportunity to be better and do more) but relative to the "average" podcast, this one does significantly better, and there are many things I have done intentionally and because they are my natural style to help support that. And, that is what I am going to try and articulate for you in this episode, with the hopes that it can bring some increased success for you as well – in whatever corner of the world you may be listening from. This episode includes a lot of stories from my life and experiences that come together over time to show what I think is at the root of the success of the show and the business. CLICK HERE FOR YOUR FREE DOWNLOAD! Show Notes: [02:30] The US still has the most downloads by far, followed by the UK, Canada, Australia and India, which have been in the top for some time. [03:03] California is the state with the most downloads. [05:49] I have always been pretty confident in my abilities and generally stubborn, which has culminated in me having big dreams and ambitions that I expect will work themselves out. [08:13] As legend goes, in 4th grade I walked to my teacher's desk and politely explained that I was sure the assignment had been turned in and asked if I could go through the files to find it. She said yes, I went to the filing cabinet, found the missing assignment, got my grade changed to a 10 out of 10, and went on my merry way. [08:55] I am a classically trained opera singer and have done a lot of national anthems over the years. [10:05] These stories from my childhood showcase some very important characteristics about me, my style, and my nature which have carried into my work and helped to make my business successful. [11:42] I am proud to wear my bossy pants every day and have been my whole life. [13:32] I believe it is important when you are marketing things to understand how everything works and the business comes together, from the warehouse to the sales floor. (With a story of my worst job ever!) [14:52] At the root of all this is a common thread that has carried into The Brainy Business. I believe I will be successful, even if something doesn't work out. Even when something goes wrong I just assume it isn't the end and that it will all work out for me in time. (A lesson from the peak-end rule) [15:51] Networking skills and genuine interest in people have also worked to my advantage in building my career. [16:37] When it came time to start the podcast, having the confidence in myself to know I could do it when I had to go out on a limb was scary, but exciting, and I looked at the silver lining. [18:18] This business is me. I own it and am confident in its potential just like I was as a 5 year old who wouldn't misspell my name. [18:44] Every email, Linkedin connection, Twitter conversation, in person meeting after speaking at an event or person I happen to be seated next to at a conference is an opportunity to learn and engage. [20:01] I have dedicated time each week to have conversations with people who are looking to pursue careers or study behavioral economics or behavioral science to help them feel comfortable in the choices they make. [20:36] The story about how taking the extra step when responding to an email led to a relationship that blossomed with the Human Behavior Lab at Texas A&M University. [23:24] Some people suggest concepts or topics, and then I get to give them a shout out when I cover that topic and it keeps everything moving up in a virtuous cycle. [23:54] Most podcasts don't make money. A lot of them cost businesses money in fact, but The Brainy Business has allowed me to have some amazing connections and clients and be profitable early on. [25:29] Genuine interest in people, and a willingness to give the gift of time to have conversations that may never be more than just a few moments of interaction, but could turn into something amazing. [26:32] Whatever your vision is for the future, whatever you see for yourself, what you think the top of the mountain is, the place where you think you will say that you "made it," that thing out there that you think is a big deal - you aren't thinking big enough. [28:57] THE ULTIMATE LESSON: Be open to the possibilities of tomorrow, be generous and kind wi

Today, we are going to be talking about bikeshedding, also known as Parkinson's Law of Triviality. There is definitely a reason I am talking about this topic right now, as it very much impacts us all at this time of extreme change during the coronavirus pandemic. This is part of a series of sorts in talking about concepts that are relevant to our changing lives and many of us being sequestered at home and doing most everything virtually (some for the very first time). As with most concepts you will hear me talk about on this show, bikeshedding is something we do all the time and don't really realize it is happening. The thing that makes this concept different from a lot of others is how much it is holding us all back ALL THE TIME without our conscious consent. You may call this "being a perfectionist" and many of us ambitious folks struggle with this tendency. The thing is, for the most part people are not suffering from perfectionism in every aspect and possible decision. They tend to get hung up on really tiny details that don't matter so much in the long run. The question is: why do those things get so much of our attention? Why do they feel so important in the moment and like you can't move forward until they are dealt with? More often than not, this is because your brain is bikeshedding (and essentially avoiding a more important topic that makes it scared or nervous). Here's what you can expect in this episode: I will give you an explanation of what bikeshedding is, with some of the most common examples. Then I am going to give you a list of questions that you can ask yourself (and explain why those particular questions matter) to help you shake things up and get out of that bikeshedding mindset so you can actually achieve goals and move forward. Be sure to get your freebie worksheet on bikeshedding to help you overcome this sneaky brain trick. Show Notes: [02:36] Bikeshedding is something we do all the time and don't really realize it is happening. [03:53] The term "bikeshedding" was coined by Cyril Northcoat Parkinson, who came up with the term. [04:22] Parkinson's Law states that work will expand to fit the amount of time allocated to it. [06:05] Just like a goldfish will grow to the size of its bowl, our tasks will take up as much time as we will allow them to. [06:57] Parkinson's Law of Triviality finds that people will waste time focusing on trivial details while ignoring the bigger, more important problems. As a result, those important problems end up with less time than would be optimal. [08:25] We tend to get hung up on really tiny details that don't matter so much in the long run. [09:57] The consequences of picking the wrong shade of blue in your logo (potentially a bikeshedding issue) are not that big, and the mistake could be fixed relatively easily down the road if need be. [10:52] Your brain hates the idea of entering an uncertain territory, so it will make other things seem more important than they are to keep you dwelling on them, and therefore stick in the status quo it loves so much. [11:27] Overcoming bikeshedding is sometimes a battle with yourself and your brain's natural tendencies. It takes conscious effort to say, "No, that's not important right now" and you can only do that if you know your goals and take the time to prioritize what matters. [11:57] When you don't have a plan, your subconscious can run rampant and decide what it wants you to focus on, and its priorities don't always align with your conscious goals. [12:17] Tackling Parkinson's Law of Triviality can help with time management, resource allocation, project management, project planning and general direction for your work, business and life. [13:37] Having a good name for your business is important, but it isn't everything. [15:28] You have to start swinging. Try for things, follow up with things, do some research so you don't look ridiculous, but pick your top outlets and send a personalized pitch. [17:31] You don't want to perfect a course and spend hours and days of your time agonizing over it when you don't even know if people want it. [18:59] In business you have to write the content first. Come up with the plan and write it all out with the least amount of words possible and your designer can come up with something great. [21:06] Will I even remember this 5 years from now? Or even 5 days? [22:19] What is the consequence if I get it wrong? [24:34] Is this decision helping me reach my goals...or keeping me from them? [25:38] Having an accountability buddy that you trust can be really helpful. They can help shine light on things, but don't ask a ton of people advice on every little problem you have. [26:45] Many people get sucked into bikeshedding because they are too worried about what other people think and are trying to please others with their decisions instead of doing what would make them happy or help them achieve their own goals. [27:41] What makes you happy and feeling fulfilled is central to you. Don't

Today, I am very excited to introduce you to Dr. Julie O'Brien, a behavioral scientist applying concepts from behavioral economics in business. In today's episode, we talk about research Julie has done herself or is particularly interested in, both as part of her time as a principal behavioral scientist at the Center for Advanced Hindsight at Duke University (which, for those of you who don't know, is lead by Dan Ariely, one of the best known behavioral economists in the world. He wrote Predictably Irrational and several other books I reference often on the show. Julie is currently the Director of Behavior Change at WW. I so enjoyed talking to Julie about all the amazing work she has been doing on bringing behavioral science out of the lab and testing things within real businesses – and I love all the practical applications of behavioral economics being applied to health and fitness. As many of you know, one of my top 3 goals is centered around health and I have been training up for a half marathon (admittedly, with some gaps recently…but back on the train!) as well as using my Peloton as I mentioned in the show. Julie talks a bit today about some research using the peak-end rule in health and fitness as well as so many other concepts and fascinating applications for behavioral economics. We touch on a lot of concepts in the conversations, and there are links to nearly all of them, including the episodes on memory biases, the peak-end rule, habits, goals, counterfactual thinking, the overwhelmed brain, optimism bias, fundamental attribution error, how to set up your own experiments, and more. We behavioral economists are working to help businesses to use and implement the learnings from the field to have stronger communication, and that is a big reason this podcast exists – to help you understand the concepts on a deeper, and more applicable level so you can try them out. Show Notes: [03:24] Julie is a behavioral scientist with many experiences. [05:17] Julie did many different projects including traditional academic lab studies and applied field interventions at Duke University's Center for Advanced Hindsight. [06:45] They ran an experiment to understand the emotional experiences people have when they are faced with a medical decision. [08:28] They were interested in what happens to people when they learn about the details of this kind of colon cancer surgery. [11:12] They looked at the data and found the disgust emotional reaction that participants had after learning about the colostomy bag is what actually reduced their ability to remember information. [13:04] We probably can't (and shouldn't) remove emotions from medical decisions completely, so we have different strategies to help people make the right choice. [15:16] It raises interesting questions around nudge vs. shove and do we want to be making a judgment about what is actually rational in this case. [16:22] It is all these different pieces of behavioral science. It is never just one concept at play. In this case, we have prefactual thinking, an overwhelmed brain, and different pieces of nudging. [17:18] One of Julie's favorite studies was Zach Zenko and Dan Ariely's study on how to get people to love exercise. [18:04] Zach and Dan's question was how could we reshape the exercise environment to make it more enjoyable or to make it feel more enjoyable so that people would be interested in repeated exercise. [18:16] Often behavioral scientists look at the world as it is now and say if we were to assume that this is not the optimal design, how might we change the design to make it more optimal. [20:37] Just by changing the way that we structure that workout we can actually change the way that people think about the workout which then influences their interest in repeating the workout. [23:27] Julie and her colleagues did a study where they showed you could keep the baseline physiological sensation the same but you could change the way people interpreted that sensation so that it becomes less unpleasant. [24:26] When you don't know exactly what is going on, your brain is conditioned to stop, but that is actually where the transformation happens. [26:07] Often times we talk ourselves into stopping a little bit too soon, and if we could get a little bit further it would work out for us better in the long run. [27:22] Julie is the Director of Behavior Change at WW. She was very excited to come to WW for many reasons. [29:47] Working at WW is very exciting for Julie because it is a strongly mission-driven organization, tech organization and it is one that is based in science and has a very strong commitment to doing things rigorously and with scientific validation. [30:57] There is a huge opportunity with technology to help things like habit formation and overcome challenges in the moment to have a huge impact. [33:03] Any company that is looking to support behavior change has to look at what the science says, what is relevant to consumers, what actually

Imagine any experience, from eating out to buying something online, and consider these questions you have probably heard a lot: "How was everything?" or "How did it go?" How do you answer these questions? More often than not you probably just say "fine" but if you were really going to think through and give the most thoughtful possible answer...how much more effort would you really put into the response and does it actually encompass any more of the truth than the quick reply? This is where the peak-end rule comes into play. The peak-end rule is one of those concepts that is super easy to understand and get your arms around but it can be difficult to overcome and implement the logic in practice. Essentially, the peak-end rule shows us that people do not rate experiences on all of their details…instead, only two points are used to determine the overall opinion of the event: the peak (which can be either positive or negative) and the end. The peak-end rule can have a huge impact on your business. First, start by knowing what type of experience people have with you. This can help determine what peaks you are dealing with, and where they should fall in the overall experience. The best thing to learn from this rule is that while it is important to consider everything in an experience to ensure you don't have any big negative peaks you aren't aware of...At the end of the day, there are only two points that really matter so you can focus on those two things and not have to worry so much about everything else. During the episode, I will talk about how the peak-end rule impacts brand engagement, personal relationships, employee reviews, medical procedures, pricing, and more. Show Notes: [00:43] Today I am talking about the peak-end rule, which ties into how people rate experiences. [02:57] The peak-end rule shows us that people do not rate experiences on all their details instead only two points are used to determine the overall opinion of the event: the peak and the end. [04:48] Your brain is probably exhausted thinking about all the thought that needs to be put into an adequate response about your experience. That is why the peak-end rule, a heuristic or rule of thumb, has been so widely adopted. [05:15] What your brain ends up doing is forgetting about everything except for the peak point and the end point. All the other things sort of fade into the background. [06:50] Having a little time for a negative peak to taper off and not be the final moment makes the entire experience feel better. [08:23] When the peak is negative, you don't want it to line up with the end because it will make the entire experience feel particularly awful. In the opposite situation, when the peak is a really good thing, ending on the peak is actually very valuable. [10:39] So knowing what type of experience people have with you can help determine what peaks you are dealing with, and where they should fall in the overall experience. [11:37] It is important to break this process down into its smallest pieces. The free Master Your Mindset Mini Course has a worksheet that can help a lot with this. [14:16] Whenever possible, don't get bogged down in what you are doing now and try to tweak little by little, instead look at what the experience would be in your ideal state and consider how you would build that out. [15:32] The best thing to learn from this rule is that while it is important to consider everything in an experience to ensure you don't have any big negative peaks you aren't aware of, when there are only two points that matter you can focus on those two things and not have to worry about everything else. [17:28] I'm not suggesting that you should lower the average across all experiences, but you don't have to worry about every single moment and data point so much. [17:49] Unexpected moments of delight drive loyalty and ongoing happiness with your brand. [19:17] Even if you don't have the opportunity to create a positive peak, putting a little effort into ensuring the last moment isn't the worst can have seriously positive benefits on the overall perception of the experience. [20:49] REAL LIFE EXAMPLES starting with customer service experiences. [22:28] Businesses will always benefit from thinking about the long term experience with you. [22:43] When you treat everyone as if they might come back someday (look on the bright side, and don't burn bridges) it can help with overall reputation and memory of working with you. [24:42] We are going to think outside of the box now and consider employee reviews. [25:48] As an employee, it is important to know that most managers will look at the peaks and very recent stuff when working on your review, even though it is supposed to encompass the whole year. The brain has a hard time grabbing all that information. [27:47] When you are tasked with giving an unbiased and holistic review of a giant span of time (like a year) it is important to not be swayed by the peak-end rule, so taking notes durin

I am very excited to bring back Nikki Rausch, from Sales Maven and one of my very favorite people on earth. You have heard Nikki's name on the show before, and even her voice a couple of times – she is the first repeat guest ever on the show…but last time she was here she was doing the interviewing when the brainy pricing course first launched. Now, I'm asking the questions and we are having more of a comfortable conversation about ways to make it easy for people to do business with you. I've had the joy of knowing Nikki for over 5 years now (almost 10? I've lost count!). We were in the same networking group and always got along. When I started doing freelance work while still in a corporate space, Nikki was one of my early clients – she hired me to edit her second book! I'm actually mentioned in the acknowledgements for her book Buying Signals, (though my last name is different). That book is awesome by the way, as is her third book The Selling Staircase. Nikki and I don't study exactly the same thing, but her background in neuro-linguistic programming (NLP) has a lot of similarities to behavioral economics. It is understanding and speaking better to the brain's natural tendencies…so it is no wonder we get along so well. We have an amazing conversation about making it easy for your potential clients to do business with you. Nikki shares tips that are aligned with the principles of NLP that can really make a difference when dealing with clients and potential clients. We talk about how to make it easy for your customer to take the next step, how to make the email about them, and scheduling with the client in mind. Show Notes: [04:43] Nikki is a sales coach, trainer and speaker; her company is Sales Maven. She is also an author and a podcaster with a background in sales and NLP. [05:17] Neuro-linguistic programming (NLP) is the study of communication and the way we process things in our brains. The programming part is about habits and patterns. Nikki has about 1,200 hours in training (compared to the 200 most others in the field have). [08:31] Many of us inadvertently communicate in a way that makes it difficult for customers to buy. [09:18] The easier you make it for someone to take that next step, the more likely they are to follow through. [11:02] Every time you put up a roadblock, you risk the chance of losing that potential client. [12:47] The answer to "tell me when you're available" … is "never." [14:18] You can use the three times technique. Ask if the potential client would like to chat and then give them three ranges of times. A range could be anytime between 9:00 and 3:00 or 8:00 and 8:30. Then follow up with, "Please choose what's best for you. If you prefer something else…" [17:24] Scheduling links are common, but it needs to be framed in a way that doesn't turn off your potential client. Make it easy for them. Don't use "I" statements. Make it for the readers benefit. "Please choose the time that's best for you." Not "These are the times that work for me." [24:27] Make "you" statements and ask questions. "Would you be open to meeting to talk?" [25:30] In a hurry? Don't send that email. It's worth it to slow down and think about how it will be received. [30:10] "What questions come to mind to you?" This phrase sounds better than "does that make sense?" (Melina's personal mission is to remove this phrase from use.) "If" statements can be too much too. [33:31] "Do you have questions?" also isn't an effective phrase. Try "What questions come to mind so far?" instead. [37:18] Let people know what you want instead of having a "go fish" mentality. Have a clear next step when you want someone to take action. Schedule a time to circle back. [45:10] You can find Nikki and her podcast on the Sales Maven. You can also download Closing the Sale for free. Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show. Links and Resources: [email protected] The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram Sales Maven With Nikki Rausch Closing the Sale Free Download Nikki Rausch Sales Maven on Facebook Getting Ghosted By Potential Customers? It May Be Your Email Approach A Starbucks Barista Asked Me This 1 Simple Question, and Using It May Be a Great Way to Boost Your Sales Buying Signals: How to spot the green light and increase sales The Selling Staircase: Mastering the Art of Relationship Selling 66. Ultimate Pricing Confidence with Special Guest Interviewer Nikki Rausch 16. Framing: How You Say Things Matter More Than What You're Saying: A Behavioral Economics Foundations Episode 23. Reciprocity: Give A Little, Get A Lot: A Behavioral Economics Foundations Episode 45. Overview of Personal Biases 95. Hate Being on Camera? Understand Your Brain's Biases To Change Your Mind 11. Anchoring & Adjustment: The 1 Word That Increased Sales 38%: A

There used to be a time when people who were camera shy could mostly avoid being in photos or on video. For better or worse...those days are long gone. A lot of us hate seeing ourselves on camera, and today I'm going to talk about why. Our brains are actually programmed to hate seeing ourselves on camera because of specific biases. I'm going to talk about those biases, how they affect our brain, and give some tips to overcome those biases. In a world of selfies, Instastories and YouTube…it's hard to not be on camera these days. With the coronavirus pandemic (which I covered in episode 91), the world has been flocking to Zoom, which before the end of February had already added more active users than in all of 2019. In the coronavirus episode, I touched on why the brain is wired to react the way it does during a novel and frightening situation like this, and why we all feel inclined to hoard lots of supplies like toilet paper even when we know that is a bit irrational. Today's episode gets into concepts like familiarity bias, confirmation bias, and comparisons that are working to make our brains hate seeing and hearing ourselves from the outside looking in. I talk about what we see and hear and what others see and hear. I explain how these biases affect us. I also share my own experiences with these biases, and share seven tips you can use to convince your brain that being on camera, audio, and video isn't that bad after all. CLICK HERE FOR YOUR FREE DOWNLOAD! Show Notes: [04:32] Not too long ago, any of us who wanted to could pretty much avoid cameras – either video or photos. [08:13] I get it. AND I want to help everyone understand some of the things going on in all our brains that make us less than excited about seeing ourselves on video (or listening to our own voices on a recording) to make it a little easier to do that next one. [08:23] There are a couple of mind tricks conspiring against seeing yourself on camera, including confirmation bias, familiarity bias, and the comparison effect (essentially relativity), and the focusing illusion. [08:55] FAMILIARITY BIAS This is one of those things that is so obvious when you hear it, but not something that people are usually connecting the dots on themselves. [09:19] We see everyone head on, and they see us head-on. The only way we see ourselves is a reflection in the mirror. We actually see the opposite of what everyone else sees. [10:23] This is why our familiarity bias kicks in when we see our image in a photo, and we think that something is off. [10:56] Studies have actually shown people two images – head on and mirror image – to see what people preferred, and it confirmed that friends and partners…everyone else, prefers the "straight on" image of us, and we all prefer our mirror images. [11:13] People could never explain why they didn't like one and why they preferred the mirror image. The conscious can't explain it…but the subconscious knows what it is used to looking at. [11:47] Until you train your brain to see your "real face" more, it will not be familiar and it will feel off. This means putting in the effort to be in more pictures and on video and watching yourself. [12:11] Some smart systems like Zoom actually let you choose if you want to be looking at and recording your "real" face or your "mirror image." (Bonus side note not in the episode - I did a run through of a training using GoToMeeting the day after recording this and saw myself in NOT mirror image for the first time in a while...my brain's immediate reaction was that it was awful! But I was able to use the tips from the episode to get past it and not make it awkward.) [12:42] Help train your brain to get used to the good stuff of the true you. Our brains dial in WAY too closely on things when we are thinking about them. [13:22] You will be focusing on yourself in a way no one else does. So you have two options. First: train yourself to watch the general image and try not to narrow in on one specific item. [14:21] The second option is to know that the focusing illusion will still be happening because your brain is wired to focus on stuff. Focusing on the good stuff will make you happier and smile more. [15:26] Zoom also has a "touch up my appearance" option that gives you a smoothed out look and can be the edge you need to feel more comfortable. [16:50] We actually hear ourselves differently than everyone else, because our voices are reverberating around inside our heads while we speak. Your perception of yourself is biased. [18:26] CONFIRMATION BIAS Familiarity bias combines with confirmation bias to really reinforce the bad stuff deeper into your brain. [19:26] We remember the feedback that aligns with our self esteem more than we remember anything that doesn't align with it. [20:42] Your subconscious is making 99% of the decisions and evaluating tons of information every second to screen out what fits its rules and what doesn't. [22:24] You need to embrace the new positive just make it

I am very excited to introduce you to Dr. Sudy Majd, a behavioral scientist applying concepts from behavioral economics in business. Sudy has always been interested in how people behave. Right out of college, she worked for a consulting firm that enabled her to travel all over the world to study consumer behavior. She then got a PhD in Psychology at Columbia where she focused on consumer decision making. She is now a consultant and on the advisory board of startup Candid™. In today's episode, we talk about a couple of specific projects she did on behalf of Candid™, a company that helps people straighten their teeth with clear aligners without ever having to go into an office. Sudy has been bringing behavioral science out of the lab and academia, and testing things within a real business. She shares how applying behavioral economics principles in a real business setting had unexpected results, and she discovered that the business questions were more complex than she realized. This is that concept of "finding the right answer to the wrong question" you hear me talk about on the show often, and the value of "questionstorming" – which I teach to many of my clients and with the group of members in the BE Thoughtful Revolution. CLICK HERE FOR YOUR FREE DOWNLOAD! Show Notes: [02:23] Dr. Sudy Majd has been interested in how people behave for most of her career. Right out of college, She worked for a consulting firm that enabled her to travel all over the world and observe how people behave to make recommendations to increase sales. [03:03] She then got a PhD in Psychology at Columbia where she focused on consumer decision making. [03:16] This gave her insight into why people make decisions and how to influence those decisions. [03:27] She then started working at tech startup Candid™. She also works with other clients to help incorporate behavioral science into their businesses. [04:08] Sudy shares a story of how consumer behavior ended up being different than she expected it to be. [05:02] Many Candid™ customers didn't return their kits with impressions and photos, so that wouldn't result in a sale. [05:43] They added cards that incorporated behavioral science into the copy, and the return rate became worse (hindsight helps, I offer up a reason it may not have been successful). [07:45] Humans have a lot of conflicting things going on in their lives, one card wasn't enough to push them over the edge. [09:21] They decided to identify psychological traits of customers who were and weren't returning their kits. [10:52] They implemented feedback loops with penalties or rewards. This was a different way of framing the message with loss aversion and incentives. This also included nudging, time discounting, and herding (links to past episodes below). [12:05] The penalty framing worked the best. These customers converted worse but were cheaper to acquire. [14:19] Marketing is to get people interested enough to take the next step. [16:30] They always incorporated customer feedback to figure out why something was happening. [18:17] Have the user see themselves in your brand and use their language to describe the product. [21:18] Sudy thinks the future of behavioral science is testing it in actual businesses. She loves discovering how the physical design of retail spaces influence how people behave. [22:41] She would also like to incorporate behavioral science theories into big data applications. [26:25] Having something that doesn't work teaches you as much as something that does work. [29:17] Testing is key to the growth and success of any business. Keep trying and improving. Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show. Links and Resources: [email protected] The Brainy Business on Facebook The Brainy Business on Twitter The Brainy Business on Instagram Candid™ Sudy Majd, PhD on LinkedIn 51. Time Discounting: The I'll Start Monday Effect – My Favorite Concept!: A Behavioral Economics Foundations Episode 16. Framing: How You Say Things Matter More Than What You're Saying: A Behavioral Economics Foundations Episode 9. Loss Aversion: Why Getting New Stuff Is Not The Same: A Behavioral Economics Foundations Episode 18. Priming: Why You Should Never Have A Difficult Conversation With Someone Holding An Iced Coffee: A Behavioral Economics Foundations Episode 19. Herding: Come On And Listen…Everyone Else Is Doing It: A Behavioral Economics Foundations Episode 36. Incentives – The "N" In NUDGES: A Behavioral Economics Foundations Episode: A Behavioral Economics Foundations Episode 63. How To Set Up Your Own Experiments 87. Social Proof: How to Use Herding to Boost Engagement and Sales 88. Marketing to Mindstates: A Discussion With Author, Will Leach 4. Questions or Answers Join the BE Thoughtful Revolution Forget Brainstorming, Try Questionstorming (Inc Article by Melina)

Have you ever wondered why it's blindly accepted to just do things the same way they've always been done? Have you noticed how a new business can completely disrupt an industry by doing things totally different? Sometimes they put established companies out of business, even though the original business could have implemented the same strategies before the disruptor. A big reason this happens is normalcy bias. Normalcy bias is where the brain believes that everything will be normal and waits for things to be normal again in a time of crisis. This principle not only applies to business, but it very much applies to some of the reasons many people weren't prepared for the coronavirus pandemic even though it had been on the news weeks before the shutdown. This normalcy bias episode is directly influenced by episode 91. Coronavirus and How the Human Brain Responds to Pandemics. If you have not yet listened to that episode…I highly recommend it. There is so much going on right now with new announcements every day of countries taking new and very important precautions to stop the spread of this disease. That episode talks about why the brain is wired to react the way it does during a novel and frightening situation like this, and why we all feel inclined to hoard lots of supplies like toilet paper even when we know that is a bit irrational. Normalcy bias is very much tied in with the situation we all find ourselves in as coronavirus is changing our entire world. It is also a bias that you can overcome to benefit your business. It's also something we are talking about in the BE Thoughtful Revolution. If you're interested in joining the BE Thoughtful Revolution, you can get a 7 day free trial and a 50% discount using the code HALFOFF through March 31, 2020. Show Notes: [03:39] Normalcy bias is the tendency for the brain to believe that everything will be normal – and to wait for things to be normal again in times of crisis or change. This impacts both sides of change. [04:20] It's easy to assume that things will stay the same and remain normal. This combines with availability bias and time discounting. [05:09] We have a hard time preparing for something before it happens. [05:48] Disruptors are able to infiltrate because those in the industry are too close, and their normalcy bias is telling them that things will always be the same. [06:09] Disruptors can see things differently, because they aren't subject to the same constraints of the brain. [07:29] Progressive's head of marketing "fires himself" every 12 to 18 months to reset as if he just got hired. [10:03] Normalcy bias makes it so we all don't properly prepare for or anticipate a big change. The other side of this, is that once change is thrust upon us, while we are in the midst of it…we cling to "normal" more than ever. [10:28] The brain grieves for what used to be, what it was used to, and its inclination is to ride out the storm until things are normal again. [11:12] Our brains love the status quo and what they are used to. [12:02] An example of the finance industry, status quo, and Apple Card. [14:29] The desire to wait and see…to weather the storm when you are in the midst of change…is normalcy bias keeping you stuck. If you aren't careful, it can cause you to miss the boat and your business could be in serious trouble. [15:47] My brain is constantly wanting to say that this is a temporary setback. I can't rely on that being the case. My business model needs to adapt to the possibility that there may only be a few conferences in the coming months. [16:44] This is the time to look at other opportunities: what can be done virtually? [17:33] I also need to make sure that I am investing time and energy into what is the best fit for the market. What do people want, and need and where does that coincide with my expertise? [18:29] Having too much reliance on any particular product line, client, or type of service is always something that should be reviewed. [19:07] If you are listening to this episode right when it comes out or shortly thereafter, coronavirus is presenting the opportunity for you to practice getting out of your own normalcy bias and looking at your business differently. [20:04] If you aren't already a member of the BE Thoughtful Revolution, please do join us now. You can take advantage of a 7 day free trial if you join by March 31, 2020 and use the code HALFOFF to get a 50% discount. [20:41] Normalcy bias is constantly impacting you in life and business. Now is the time your brain wants you to wait and see…and I'm here to tell you that strategy will not suit your business well. Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show. Links and Resources: [email protected] The Brainy Business on Facebook The Brainy Business on Twitter The Brainy Business on Instagram 91. Coronavirus and How the Human Brain Responds t

Fundamental attribution error is another example of a behavioral economics concept with a really terrible name. Similar to my choice to call "hyperbolic time discounting" the "I'll start Monday effect" fundamental attribution error is one where I think we can benefit from a simpler name, I like to call this the "Pot / Kettle Phenomenon." You may be able to tell from that name a little bit about how this concept works, but here's the simple explanation and then we will get into the details. If you have ever heard the phrase, "that's like the pot calling the kettle black" we are basically talking about fundamental attribution error – when you use different criteria to think about yourself and how you are acting than you use to think about and judge others. Today, I explain this concept and share examples that bring it to life. I also give you an actionable five step plan to change the way you react to others and have less instances of this phenomenon. I've received an overwhelmingly positive response from listeners about last week's episode about coronavirus and why our brains react the way they do in pandemics. If you're still wondering why people are hoarding toilet paper, this episode will help explain why. If you're interested in joining the BE Thoughtful Revolution, you can get a 7 day free trial and a 50% discount using the code HALFOFF learn more here. Show Notes: [04:38] FUNDAMENTAL ATTRIBUTION ERROR is another example of a behavioral economics concept with a really terrible name. I prefer to call this the "Pot / Kettle Phenomenon." [05:16] "That's like the pot calling the kettle black" is basically talking about fundamental attribution error. It's using different criteria to think about yourself and how you are acting as opposed to how you would think about others and how they act. [06:16] How do you feel about someone who cuts you off in traffic? How do you feel about yourself when you cut someone else off in traffic? When thinking about yourself, you know you are a good person and this one act doesn't carry over into your interpretation of your entire personality. [07:39] When you hear the story of someone else who you may have labeled as "bad," you'll have empathy for them when you understand their story - like the Wicked Witch of the West. [08:26] Why can't we stop ourselves from doing this and realize how often it impacts our personal and business relationships? [08:39] Even when we know about the rules our brain uses to make sense of our surroundings, it doesn't mean we can just change them. [09:43] You have to use your conscious processing over the top of the thing your subconscious wants you to believe. [10:01] Your brain is biased to think of you (itself) as different and better than others…especially people who are not like you. You don't have to let that immediate reaction form a lasting impression of someone else. [11:01] In the workplace, think about someone who shows up late to your meeting…what is your immediate thought about them? You likely think, "Ugh, he is so rude and disrespectful" this can then combine with the focusing illusion, so that you only notice times where the person in question is doing things that are rude and disrespectful. [12:16] INTRINSIC VS EXTRINSIC The big difference between the way we see others and how we see ourselves is the intrinsic story compared to the extrinsic story. [12:42] If someone's personality or their disposition led to the lateness, it is intrinsic or internal attribution. If it was due to the situational factors, it would be external. [14:37] Steps to change the way you react to others: 1) Decide you want to work on this and understand why it's important to you. 2) Choose an initial group or person to start the process with. 3) Reframe your in-group 4) Consciously adjust to extrinsic attributes for a decent number of total interactions (30 days is a good rule of thumb for people you see often) 5) Move to the next group [16:26] If you have been passed up for a promotion or been told you aren't a team player or feel like everyone is out to get you… fundamental attribution error could be a culprit. [16:44] Fixing your mindset in regards to the way you think about others is about your choice. You can't change them or their responses to situations. [19:43] In the "in-group" perspective shift, it will take a little time at first where you have to consciously remind yourself to not have an "us versus them" mentality. [22:58] Resist the urge to use the same "good thing about them" every time. [24:21] Once you have completed the process with the first group you can move on to the next one. And the good news is, this should get easier over time. Unlike other goals which need to be limited, this can combine and add other groups where you start to use these techniques whenever you are ready. It is a positive snowball. [26:00] I want to talk a little about the flip side of the Pot / Kettle Phenomenon. It's important to look at your own behavior the way oth

Coronavirus (or COVID-19) is everywhere on the news, and everyone's talking about it. The statistics and status of outbreaks are changing rapidly, and there is uncertainty around the virus. I can't answer all of the questions surrounding this issue…(no one can at this point) but I hope this episode will help you understand a little bit more about how the human brain responds to pandemics. I'm going to talk about how the way our brains work affects our reactions in situations like this. We'll start with an example of framing. What do you think of when you hear a "state of emergency" is declared? I live in Washington where we had the first coronavirus death and the first state of emergency declared in the US. California is the second state to have declared a state of emergency. "State of emergency" is a name that doesn't help contain public fear. I understand why it's called this and why it's important to declare it…but…talk about a framing issue. I also talk about the focusing illusion and how focusing on something makes it seem more significant. I'll cover several other concepts that apply to what goes through our minds in times of uncertainty, danger, fear, and panic. I'll also cover opportunities to make the most of things and lots and lots of informative links to help you educate yourself about the current situation. It is important to note that the information about coronavirus specifically is changing rapidly – what I put in my notes and record today will not be accurate by the time this goes live on March 13 and after. Also, there is no judgment or criticism of choices any person or country or entity has made. The intention of this episode is to explain how our brains are wired to work during times of uncertainty, like the coronavirus pandemic. Show Notes: [02:54] I've been reading a lot about coronavirus lately, and it's a big deal. I live in Washington state where we had the first recorded coronavirus death in the US. [03:32] Declaring a state of emergency is definitely a framing issue. When the brain hears this, it doesn't take it lightly. It wonders what the emergency means and creates more panic than is helpful. [03:58] The human brain has a lot of capacity to process information: when given something new and unknown it will run rampant. [04:15] Our brains will over analyze and freak out a little bit. Focusing on something will make it feel more important or significant. This is the focusing illusion. [04:36] Our counterfactual and prefactual thinking will also ramp up and go into overdrive. [04:59] A lack of control is a breeding ground for fear and a brain bonanza. [05:19] New or unknown things are scary, because we can't categorize them using the concept of relativity. We have nothing to compare it to. [06:17] Probability neglect is where we drastically overestimate our own personal risk in a situation. [07:21] We also have a zero risk bias where we would rather eliminate all the risk we can. [08:37] Our inability to properly understand probabilities and aversion to risk AND need for control AND penchant for the status quo all combine in the worst possible way when we are confronted with an unknown, highly contagious disease. [09:05] Availability bias is when our brains believe what we hear most often to be true. [10:47] I want to make sure everyone knows that I know we are talking about real humans – each of those numbers represents a person: mother, father, sister, brother, friend. I do not take this lightly as I share the details throughout the episode. [13:20] Why don't we hear about (or get as scared by) the flu-related deaths that happen every year? It's because we've all had the flu, and it's a known entity. [14:02] Our availability bias says that flu is annoying, but it's not that big of a deal. [14:37] The recommendations to stop the threat of coronavirus are the exact same recommendations to stop influenza. [15:18] Availability bias is a huge culprit in the reaction to the coronavirus. The focus is on the scary stuff. [16:32] The unknown variables of the coronavirus are what make it really scary to the brain. [17:47] We need to maintain these better habits that will keep us healthier and happier well into the future. [18:02] Why is it so difficult to change habits? We are used to habits. We have subconscious rules stuck in our brain. [20:30] Changing habits takes diligence at the beginning, and continued effort to maintain. Conscious processing can only do so much work at the same time. [21:44] Before you react, stop and ask if your behavior is rational or if you need this. Take a moment to breathe and focus. [22:36] One other problem we have when it comes to changing behavior, is our brain's natural risk thermostat. Essentially, when we do one thing good, we feel justified slacking on something else. [23:52] If we can all do only one thing well to fight the spread of viruses, because that one thing has a bunch of hidden steps, we should be focusing on the one thing that is proven to

I am very excited to introduce you to Samuel Salzer, founder of the super awesome resource Habit Weekly. He provides content via a newsletter and LinkedIn every week with lots of great updates in the behavioral world. There are links for job openings in behavioral science around the globe, upcoming conferences, top podcasts and articles of the week – it is a really fantastic resource I recommend everyone subscribe to. Today, we discuss how Samuel became interested in behavioral science and his interest in habit formation. We also talk about not creating content for the sake of creating content. Samuel discovered firsthand that if you create what people actually want, they will ask you for more. This is so applicable in business. Find out what people actually want and give it to them. Put good stuff out into the world and people will want to engage with you. Show Notes: [03:03] Samuel has always been an entrepreneur and started his first business when he was 16. [03:51] He moved from Sweden to Australia to study accounting and economics. He also started doing research on behavioral economics. [04:34] This opened his eyes to the nuance of human decision-making. [05:35] He also wanted to use this knowledge to help his mother establish a meditation habit. [06:38] He started studying the science of habit formation, behavioral science, and psychology. [07:37] Samuel is his first test subject, and he does his share of self-experimentation. [08:44] He helps clients create behavior change for good. [09:31] You are succeeding if you create value for your customers and a solution for their problem. [10:55] Samuel likes to focus on the underlying principles of what he is trying to do. [12:29] Samuel likes the concept of friction: both decreasing and increasing it. [13:16] There are moments when it's beneficial to increase friction. You can strategically increase friction to eliminate negative habits. [16:20] Samuel is fascinated by habits and how they are formed. There are also ways to boost behaviors. Such as loss aversion or framing behaviors to make them more motivating. [17:07] Habits can have a trigger and a reward or consequence. There can be a negative (or positive) consequence after a behavior. [20:25] We often have habits or things we do that are designed to remove a negative. [22:53] The concept of "eating the frog" or doing the hard thing first. [25:43] Samuel started sharing links on LinkedIn. This eventually evolved into Habit Weekly. It's now a mailing list that sends content related to behavioral design on a weekly basis. [28:04] You know you found something that people really want if they are reaching out to you asking you to create a mailing list. [30:09] Samuel works to make sure that anyone interested in behavioral design has the best resources throughout the week. [33:26] Accurate research and due diligence are very important to Samuel. [34:02] Samuel is excited about the future of behavioral design. In his opinion, the field is in the adolescent stage. The mature stage will be more about the process. [36:44] He's excited about being able to take all the tools and components and using them together to accomplish great things. [39:46] Samuel's super power or wish would be to see the world through other people's eyes. That's part of what has drawn him into his work. A good book or movie can show the world from another person's perspective. Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show. Links and Resources: [email protected] The Brainy Business on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brain Science Behind Your Shopping Decisions (watch Melina's TV interview!) Habit Weekly Samuel Salzer Samuel Salzer on LinkedIn Samuel Salzer on Twitter Eat That Frog!: 21 Great Ways to Stop Procrastinating and Get More Done in Less Time 81. How to Finally Change Your Behavior (So it Sticks) 16. Framing: How You Say Things Matter More Than What You're Saying: A Behavioral Economics Foundations Episode 9. Loss Aversion: Why Getting New Stuff Is Not The Same: A Behavioral Economics Foundations Episode 72. Friction – What It Is And How To Reduce It, with Roger Dooley 51. Time Discounting: The I'll Start Monday Effect – My Favorite Concept!: A Behavioral Economics Foundations Episode 58. Partitioning: Why We Eat More Cheetos From A Party-Sized Bag Than A Fun Size: A Behavioral Economics Foundations Episode 32. The Overwhelmed Brain and Its Impact on Decision Making 34. Optimism Bias: The Good And The Bad Of Those Rose-Colored Glasses: A Behavioral Economics Foundations Episode 85. What is BrainyTab? An Interview with the Founders Radu and Raluca Judele 23. Reciprocity: Give A Little, Get A Lot: A Behavioral Economics Foundations Episode 30. Booms and Busts

In a previous episode, I talked about a study on happiness which found that when asked if people thought they would be happier if they were to suddenly be a paraplegic or suddenly win the lottery, most everyone believes they would be happier winning the lottery and significantly less so to lose the use of their limbs. In actuality, these two groups of people – paraplegics and lottery winners, are essentially just as happy as anyone else. Why would this be and why would people predict it incorrectly? It has everything to do with the focusing illusion. When people only focus on one piece of a giant puzzle that piece ends up with far too much weight. Losing the use of your legs or winning the lottery is just one small piece of an entire life. There are so many factors that play into happiness, and while these pieces are significant and impactful in many ways, they don't tend to have an impact on overall happiness like we think they would. This episode is all about the focusing effect and how these principles can be used in your business and your life. I talk about focusing on that one thing and making it incredibly clear to your target market. I also talk about asking yourself what people should focus on when thinking about your brand and what would motivate your ideal customer to take action. Show Notes: [04:44] A study about happiness that illustrates the focusing illusion. [05:47] Kahneman did a test back in 1998 to find out if Californians or Midwesterners were happier with their lives. [06:24] If you said Californians, you would be wrong. A focusing illusion bias puts more weight on things like sunshine and a seemingly laid back lifestyle. People adapt to their surroundings. [07:06] "Nothing in life is quite as important as you think it is while you are thinking about it." - Daniel Kahneman [07:53] Focusing on something, not surprisingly, puts a whole bunch of attention on it. [08:59] Think about decluttering and how you would feel getting rid of something you might need. The focusing illusion is combining with counterfactual and prefactual thinking to maintain your status quo bias and keep you stuck. [09:54] When you are asked to think about how happy someone would be or how angry something would make you or how satisfied you are or would be…your brain will focus WAY too much on a few key aspects and answer in a way that is just not in alignment with reality. [10:47] Social proof. People are more likely to take action based on the thoughts and actions of others. They are also likely to weigh a few key items as the most important indicators of their happiness. [12:32] Our brains are split up into two processing systems: the subconscious is super busy filtering through 11 million bits of data per second, while the conscious can only handle 40 bits per second. Your brain will sort through all of the data to validate what you're focused on. [13:20] Anything you want to believe (or that all important first impression) will be supported by the focusing illusion. [13:36] Another example by Kahneman from Thinking, Fast and Slow using the halo effect. [15:25] Initial traits in a list changed the very meaning of the traits that appear later. The sequence in which we observe characteristics of a person is often determined by chance. Sequence matters, however, because the Halo effect increases the weight of 1st impressions. [16:40] When you are focusing on something, a particular aspect, you build it up in your mind and it changes your perception, expectation, experience, and memory of an experience. [17:20] There's a high likelihood that you will create bias in questions asked on surveys - hire an expert. [18:08] Focusing on finding examples to back up your brain's earlier perceptions is confirmation bias. [19:17] It's good to take a step back and ask yourself if your bias may be guiding your interactions. [19:48] I share the story that was inspiration for this episode. [22:02] Live that truth and focus on that now. Your brain will focus on what you want it to. [23:34] Think about your approach to a project – what you focus on, the way you do things (or the way the company does things). [24:31] The problem that is facing you may not be as big of a deal as it seems – and something you aren't even aware of could create a much bigger impact if you took the time to look for it. [25:36] A story about a detergent company fixing an obvious pain point and communicating it in their advertising. [26:32] Find the one or two points of value and talk about those…all the other features and benefits are extra. [27:12] Focus on that one thing and make it incredibly clear to your target market. [28:12] The mindstate guides the focusing effect and what the subconscious is looking for. Narrowing your messaging makes it more likely to resonate because it aligns with the brain of your customer. The BE Thoughtful Revolution membership group is live! Use the code LAUNCH to lock in your rate and save 60% (ends March 1, 2020). Thanks for l

Companies are getting more savvy about using behavioral economics not only to sell products, but to help consumers make better choices. Will Leach has taken the concepts of behavioral economics and social sciences to the next level with his book Marketing to Mindstates: The Practical Guide to Applying Behavior Design to Research and Marketing. I am very excited to talk with him today. He is the founder of the behavioral consultancy TriggerPoint. Previous to starting his business, Will led behavioral science methods at PepsiCo, and he has won numerous awards for his innovative work in behavioral economics. When reading Will's book, I knew within the first few pages that he needed to come on the podcast. This is even before I realized that he got his master's from Texas A&M University (I talked about the Texas A&M Human Behavior Lab in episode 33 where I interviewed Dr. Marco Palma.) Will and I had a lot of fun talking about the lab and team down there before we jumped into the interview. Will was at A&M before the lab was built, but we have both seen it in person thanks to Dr. Palma. Will does such a great job of breaking down a really complex area of marketing into a formula that any business can follow – from global corporations like PepsiCo to small businesses. One area I know non-marketers (and even many marketing teams to be honest) struggle with is determining their target market and really narrowing it down and then knowing how to properly communicate with them. Will and I talk about his and the concept of the 18 different mindstates and nine motivations. He also shares his step by step process to help you determine which is the best for your company. This is an innovative and mind opening interview. Show Notes: [03:46] For Will, behavioral economics was the classic "I didn't know it existed until I stumbled upon it." [03:56] Will joined the military right out of high school. He then studied classical economics. [04:16] He discovered marketing research through a graduate program and fell in love with it. It wasn't just looking at economics, it was looking at why people do what they do. [04:39] While working at PepsiCo, he discovered behavioral economics and behavioral science. In 2009, PepsiCo invested $20 million in a laboratory to study the neurological impacts of messaging. [05:08] Will was lucky enough to get to run behavioral science experiments, and he loved it so much he started his own business and wrote a book about it. [05:55] His favorite project was working on a brand new snack. It was a healthy baked hummus chip. The brand called Wicked Crisps was designed using purely behavioral sciences. The target market was the owner's daughter (or millennial moms). Will helped design the name, logo, tagline, bag, and website. Behavioral science was behind everything that they designed from fonts to benefits. [11:58] Will studied economics. He didn't want to just talk about theory. He wanted a practical book. [13:02] He conveys specific models through story. [14:01] He also dug into motivational psychology and goal theory. He looked at all six social sciences and found patterns. [16:25] Will thinks of mindstates as moments in time when we are being influenced. We aren't always consistent with our beliefs and attitudes. Our environment changes us. [18:20] His book is about moments in time and why a certain archetype may behave outside of the norm for them. Applying mindstates can help understand beliefs and values and impacts of the environment on these moments. [20:57] Companies now look at how to help customers make better choices. Making their whole life better gives the company permission to sell them more. Brands are getting smarting and taking a holistic approach. [24:46] Will is the most excited about the idea of getting the mindstates out for everyone to use. They want to get more and more people to understand that there is science behind our decisions. There are also emotions around our decisions and just understanding a few small rules is a huge benefit. [25:57] We can sell more with behavioral economics. We can also reduce anxiety levels and create a better society. [26:30] Will is getting more excited about the education side and using these concepts to help understand and overcome biases. [27:02] He uses goal theory to help understand what people are trying to accomplish. Helping people reach their goals can create a better society. [29:39] The nine motivations are achievement, autonomy, belonging, competence, empowerment, engagement, esteem, nurturance, and security. Then find optimistic and cautious examples. [30:28] When guys are asked why they want to lose weight and get healthy the answer is usually so they can walk their daughter down the wedding aisle. [31:20] One reason why a dad would want to do this is nurturance. So a goal is "walk my daughter down the aisle" and the motivation is "nurturance." [32:09] Promotion (or using an optimistic lens) is seeking to maximize losing weight.

Social proof was introduced by Robert Cialdini in his book Influence. It's one of the six principles of persuasion (accompanied by reciprocity, scarcity, authority, consistency, and liking). I talked about social proof in last week's episode on Peloton. I talked about the infamous ad that made Peloton have a dramatic drop in market value, but I also talked about all of the things they were doing right and how they were using availability, priming, stacking and bundling offers, money back guarantees, reciprocity, choice architecture, herding and…of course…social proof. I've heard from many of you who are actually considering getting a Peloton after that episode. That wasn't my intention, but something I love to hear because we have been so happy with ours (and it is an example of the third type of social proof - users). Herding and social proof are closely related. When social proof is present, we are more likely to herd. We also look for social proof because it helps us validate our decisions. I'll talk about the six types of social proof which are expert, celebrity, user, wisdom of the crowd, wisdom of friends, and certification. I'll show how our biased brains are susceptible to social proof, ways it shows up, and how easily it can be implemented in any business – and why it is important to incorporate it. Show Notes: [02:28] Social proof is closely related to herding. [02:39] The concept of social proof was first introduced by Robert Cialdini. Cialdini's 1984 book Influence: The Psychology of Persuasion introduced the concept of social proof as one of the six principles of persuasion (the others are reciprocity, scarcity, authority, consistency and liking). [03:34] Social proof and herding feels a bit like a chicken and the egg situation. We are a herding species, we look for social proof to validate our decisions and be accepted by the group, but when social proof is present…we are more likely to herd. Which came first? [04:31] Having a lot of other people (or the right people) who have made the same choice in the past (regardless of whether or not it is a good one) is the social proof we need to nudge us into making the same choice. [05:01] You may be using social proof in your business or have seen it used in other businesses. Now you have scientific proof that these methods work. [05:19] The six types of social proof are: expert, celebrity, user, wisdom of the crowd, wisdom of friends, and certification. [05:52] Expert social proof would be when someone who is an expert in the industry recommends or speaks on behalf of a product or service. An expert extends a halo effect to the organization who brought them there. [06:37] Be aware of authority bias. People are conditioned to believe those who are in authority. [07:55] In your business, consider who an expert is on a topic, and how you might be able to bring them in to interact with your audience. [08:35] Experts lend credibility and the value of social proof to a brand – they make people feel comfortable about working with you. [08:59] Celebrity: There is a clear value in having a celebrity talk about your product. [10:01] You need to reach the right people in a way that will encourage them to take action. [11:12] Microinfluencers can impact your business by reaching the people who are likely to buy. [11:50] Just because a celebrity is easy to get, doesn't' mean they are a good fit for you or your brand. It is important to be discerning and make sure there is alignment. [12:08] The perceived personality of the celebrity carries over onto the perceived personality of the brand. [12:45] Have a user talk about your product. You could also stack this with a celebrity who used your product. [13:16] Incorporating users includes reviews and testimonials. [13:30] People are more likely to be influenced by those who they consider to be like themselves. This is the herding piece in action, along with our personal biases toward our own in-group. [15:25] Cialdini's towel example shows how incredibly powerful social proof can be. [15:46] A genuine user talking about the product is influential. When you can help people to see that others like them have found value from your business, it is a win. [16:42] I find key moments to mention that I have clients and people do work with me. It helps people to see that others like them work with me. [18:26] For testimonials: you do not need to write out the complete testimonial OR put the name of the person who provided it. [21:51] Understand why you are using the testimonial and why it matters to the person making the decision, and only use the important pieces. [24:16] Wisdom of the crowd is when someone follows you on Twitter and you look at their profile and decide whether to follow back based on the number of followers they have. [25:24] If you have a lot of past customers or clients, or downloads of a podcast, or subscribers to your YouTube channel or whatever it is…that is worth sharing. Showing those numbers (even o

Last year on the show, there were behavioral economics analyses of Apple Card, Costco and Starbucks and this is the first time in 2020 we will be digging into a specific company. I'll talk about the infamous Peloton ad that made the company's market value drop $1.5 billion in three days: what happened in the ad and why it went wrong. Then I'll explain what could have been done better and the behavioral economics concepts that back it up. I also talk about my own personal experience with Peloton. I recently got one and I'm loving it. You'll learn about the behavioral economics of financing options, the 30 day money back guarantee, as well as how they use the concepts of social proof, herding, reciprocity, and more in very smart ways. If you don't have a Peloton, you'll learn a little more about equipment, subscription, and app options. I also talk about some of the really cool things they are doing that align well with behavioral economics – including sharing a bunch of concepts I see in their set up, and we will wrap up with tips for your business based on successes from Peloton. As a note, I don't do any work with Peloton and don't know if they are working with anyone in behavioral economics or if they are familiar with any of these concepts or doing any of this intentionally. The stuff I talk about in this episode are my own thoughts and observations, not from any conversations I have had with anyone at Peloton. If you work there or know someone who does that would like to Connect, please email [email protected] Show Notes: [03:28] Peloton is a fitness company that sells equipment and features live streaming videos on a screen attached to the equipment. [03:52] According to Peloton's website, there now have more than 1.6 million members. They state over 55 million workouts completed in 2019, and in their last fiscal year (which ended in June 2019) the company made $915 million dollars. [04:21] They also have a 94% 12-month retention rate. [04:48] Over the Christmas holidays, they featured an ad about a woman who receives a Peloton from her husband as a gift. We then get to watch her video blog of her entire year riding the bike and she says she didn't realize how much it would change her. [05:38] The internet hated this commercial. There was all kinds of backlash about the husband giving her an exercise bike and how it was sexist. It had negative coverage in all the publications. [06:10] According to Business Insider, Peloton lost 1.5 billion dollars in three days after the release of the ad. [06:33] In my opinion, the ad wasn't as bad as it was made out to be on social media. The real problem is mixed messaging (something many companies struggle with). [07:03] The ads that Peloton makes are clearly directed towards wealthy people. They also only have very fit people in their ads (which is fine if this is a clearly defined niche). [07:34] The other side of their brand is being a community opportunity for everyone to be able to have access to amazing fitness regardless of whether you have access (or time to go) to a gym. [07:49] If you say you are for everyone – a community of all kinds of people coming together to support each other…the ads should reflect that. [08:03] If you are truly only for wealthy people, you should say that. [08:27] There is no reason that any business can't target a high income or high net worth group of individuals. Just make sure that the messaging is clear. [09:15] I think they do want to be inclusive – especially after having the bike for a month now. Their website is "One Peloton" and they share that messaging throughout all the workouts and interactions. They are very focused on their community. [09:24] my recommendations: First the ad needed a teeny tiny back story where everyone knew that the wife actually wanted a Peloton. [10:04] You cannot assume everyone who watches your ad or sees your message is coming from the same place as you. [10:32] When you don't provide the proper context in the backstory, people will fill it in with their own story, which could be loaded with negatives (especially when you're talking about health, diet and fitness). [10:45] Take a step back and look at your message from many perspectives and look for what people would disagree with. [11:17] A noticeable difference in the protagonist from the beginning to the end would have made a big difference. [12:42] If you are going with the inclusive message, it should have closed with a very quick line like "One of the many stories of Peloton" which could then trim down to say "One Peloton". [14:22] Peloton has enough content for a ton of advertising if they take the time to find it within their community. [14:46] Understand your market niche and who you are speaking to. When this is grey you can get into trouble. [14:54] Bring people along with you in your story, you can't assume they know the right context. It is important to share key elements to ensure the right message is being conveyed.

As students of behavioral economics know even when we are aware of our biases, they still exist. Our brains and subconscious act on autopilot and incorporate biases into our decision making process without us even realizing it. If that's the case, how can we make our decisions more rational? Improving our awareness of these biases can help us at least understand how we are being influenced. From there, we can determine opportunities to step back and take a second look at the information at hand. Behavioral economics is a broad subject with a lot of variations of biases and principles. Fortunately, BrainyTab is a tool to help learn about and reinforce some of those biases. I'm excited to have Radu and Raluca Judele on the show today to discuss BrainyTab. Radu and Raluca wanted to create a tool to shine a light on those cognitive biases. They started researching and came up with a browser extension called MyCognitiveBias which has now evolved into BrainyTab. I couldn't resist learning more about a tool set up to share behavioral economics with the world. That's why Radu and Raluca are here today to introduce the extension to you and talk about why they came up with it, how it has helped them, and why it can help you. It's free for everyone, and you can download it from their website. The tabs introduce about 530 concepts, and they are constantly adding new material including relatable, real-life examples. They also have a fun contest where users can get a chance to win $100 worth of books from Amazon. Show Notes: [03:32] Radu was nervous to reach out to The Brainy Business (I'm so glad he did!) He and Raluca wanted to work on a project together. BrainyTab is phase 2. Phase 1 was an extension called MyCognitiveBias which was inspired by the cognitive bias codex. [04:38] A browser extension seemed like a reasonable way to remind users of cognitive bias. [04:51] Raluca did the research. They built the extension together. [05:11] They started thinking about things that were connected to cognitive biases that could improve decision-making. The next step was adding Mental Models. The also thought people should be more aware of Dark Patterns. [06:21] They have received tons of positive feedback. They are focused on growth and what steps to take next. [08:01] They were hoping for 100 users for MyCognitiveBias, but ended up with 3000. [09:04] BrainyTab teaches you a new tidbit each time you open a new browser tab, it will show a random cognitive bias, mental model, or dark pattern. If you like to reinforce one concept over and over (instead of a new one each time) that is an option as well. It also has a bookmark manager. [11:13] Melina had access to the beta version. [12:33] Repetition and loss aversion are some of their favorite principles. We are aware of our bias, yet the reminder helps. [14:01] BrainyTab helps bring awareness to things that exist and identify why our brains are doing something. [17:31] Radu is a marketer, and he has worked in hospitality. As an observer of people he noticed patterns. When he started marketing, he became aware of behavioral economics. [19:17] Raluca had a mini-stroke about 18 months ago. It was stress related and a game-changer for her. She now enjoys her research and what she is doing. In many ways, working on BrainyTab helped retrain her brain and reduce stress. [21:09] Understanding the patterns helps her control stress and emotions. [24:42] They have around 530 concepts on their tabs. They want to make the information relatable and add real-life examples. [27:31] We aren't as rational as we would like to be. Setting a goal ahead of time and removing emotion such as selling a stock at a certain number is a mental model. [29:21] It's Melina's mission to help as many people as possible understand how our brains work and how that applies to our lives. BrainyTab is such an obvious connection point. Melina is excited to help build out the content and sources for BrainyTab (Radu and Raluca are not behavioral economists) to make it more robust). [30:26] Radu and Raluca are having a contest to give free books to users. The BE Thoughtful Revolution membership group is live, and we are digging into live weekly calls in the Brainy Mindset Course next week! Use the code LAUNCH to lock in your rate and save 60% (limit 50). Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show. Links and Resources: BrainyTab BrainyTab on Twitter Radu Judele on Twitter Episode 9. Loss Aversion: Why Getting New Stuff Is Not The Same: A Behavioral Economics Foundations Episode Episode 45. Overview of Personal Biases Episode 60. Surprise and Delight Episode 61. Color Theory: When It Comes To Color, This 1 Thing Matters More Than Anything Else Episode 68. Counterfactual Thinking: Why We 'What If' And 'If Only' (A Behavioral Economics Foundations Episode) Episode 80. Celebrate! It's More Impo

This show is all about how to stack products and services to make them the most appealing to your potential customers. Those of you who've heard me speak, have heard me talk about this before (especially in relation to The Truth About Pricing) and the concepts of anchoring, adjustment, and relativity. I share examples of how certain numbers can get stuck in our subconscious and in comparison to the real price, we feel that we are getting a bargain. I also talk about how infomercials use several combined behavioral economics techniques in their presentations. To show how I practice what I preach, you'll learn about the pricing strategies for the new BE Thoughtful Revolution Membership group. I also give you an actionable example of how you can increase your prices by 10% and feel great about it. As always, this episode is packed with real world information and examples that correlate with behavioral principles you can use in your life and business. I've had listeners asking about a membership group for a while now, and the BE Thoughtful Revolution Membership Group is now open. I'm so excited about this membership and all of the benefits it has to offer. Members get direct access to me for all of your behavioral economics questions in our dedicated Facebook Community. This is where I'll be doing live Q&As, training, and all sorts of other stuff. You'll also get access to The Brainy Courses. The Brainy Mindset Course and Brainy Pricing Course are $399 each. (That's a combined value of $800.) You'll also get exclusive content from The Brainy Business, and members get special discounts on workshops, products, and strategy sessions and will be the first to know when new stuff is coming out. The membership is $99 a month, but the first 50 people to sign up with code LAUNCH get 60% off and will only pay $39 a month. Lock in that price before it's gone! CLICK HERE FOR YOUR FREE DOWNLOAD Show Notes: [05:36] Stacking and bundling products and services. Anchoring, adjustment, and relativity are the real concepts at play in this process. [06:43] Anchoring and adjustment is about our brains being swayed by numbers. [07:11] The Snickers study I share all the time is part of this concept of anchoring. [07:28] The brain latches onto the number and will move up or down from there. [08:15] When an item is limited, people will actually buy more. This is all because of anchoring, and even unrelated numbers can have an impact on this. [09:03] If you throw in a larger number in your description, it makes the price seem smaller. [09:43] The brain kind of glosses over what it hears at any given time because there is a lot going on, but it hears a number and latches onto it for a while. [10:01] Think of these concepts in examples of infomercials. Your brain likely didn't have any preset number for what it thought that random item was worth or what you would pay for it. [12:26] If you ever discount something, or offer a special, make sure you talk about the higher number first. [12:47] When I introduced the group, I talked about the benefits to you first, like "people have been asking for it" which is a combination of herding and priming. [13:08] I mentioned you would get access to the Brainy Mindset Course and Brainy Pricing Course, which are both $399 for a combined value of $800. [14:01] After sharing the value just in the courses being at $800, I shared the regular rate of the group, which is just 99 a month. And THEN I said that the first 50 people could use a code to claim their spot at only $39 a month. (That order was intentional, and it matters) [14:38] You need to spell it out to people in the right order - and know that saying things are "priceless" doesn't help your anchoring case. [15:21] Instead of saying something is priceless, find a way to quantify that value. [16:09] Relativity is where the second number feels lower or higher based on how it compares relative to the first number. [17:16] The way numbers are shared via framing, relativity and anchoring make all the difference in how the customer reacts. [17:36] When you have multiple options available and want to showcase one of them. You don't want to show the least expensive thing first and work your way up. Always start big and work your way down. [18:36] Find the best product that you want to sell and has the most value for clients. Create a high anchor to present before that. Add 10% to the amount that you're going to charge. [25:17] You could also create a totally different third product. You don't have to though. [26:29] You can use the third option when you are selling physical objects like sofas. [28:18] This can make the best option seem like the obvious best choice. It helps customers to feel good about the investment. [29:29] The context and relativity all matters and makes a difference. It takes a little work on the front end to make sure you are presenting the options in the right order to help the customer make their best choice. [30:38] Bundles are gr

Clutter has a negative impact on your brain. It can lead to disorganization, overwhelm, increased stress, and even health issues. That's why organizing your brain and your surroundings is so important. This episode is about the benefits of organization in your life and how it can lead to positive outcomes such as weight loss, decreased stress, increased productivity, and clearing the way to smash through your goals. The benefits of an organized brain are really amazing, and I want to help you get there. This episode walks through a bunch of tips and some of my favorite tools I use to keep organized. This includes a couple of great books that can help eliminate clutter from your physical and digital life, as well as the tools and systems I use to manage all existing commitments while building and scaling The Brainy Business. Tools discussed include: Focus mode on Word, Time Timer, Gmail's Snooze feature, GANTT charts and how I use Trello to get it all done in an organized and sane way. Before diving in, I want to tell you about a really cool article that was posted recently on Bloomberg. It's called Top Jobs for the Next Decade Are Behavioral Scientist, Data Analyst. This is great news for the field, and I am totally not surprised as so many people have been reaching out with questions about getting degrees in behavioral economics or how they can pursue work in the field. More people are also finding the podcast and asking about working together. Look for an upcoming episode with my recommendations and resources for exploring this fascinating and growing field. If you have specific questions you would like included, hit me up on social media. CLICK HERE FOR YOUR FREE DOWNLOAD! Show Notes: [01:49] If you want to be featured on the show – leave a review of the podcast in the app you listen to, and I may talk about you and your business in an upcoming episode. [02:25] This episode is going to cover a lot of resources and things you can consider as you work to organize your brain. If you are already on The Brainy Business list, you get direct links to everything related to each episode…as well as access to the super secret subscriber page with all the freebies. [03:44] Bloomberg recently came out with an article called Top Jobs for the Next Decade Are Behavioral Scientist, Data Analyst. So awesome! [04:05] So many people have been reaching out and asking questions about getting degrees in behavioral economics or how to pursue work in behavioral science. [05:14] When your brain is overwhelmed…which happens a lot quicker than you would think…worse decisions are made. An example would be the chocolate cake study. [06:15] Essentially, when the brain gets overwhelmed – even by a few extra digits – it makes worse decisions. [07:20] Your conscious brain's 40 bits are bogged down with that big number. More things that would normally be handled by the conscious brain are now in the realm of the reward seeking subconscious brain. [07:44] Clutter also increases stress, makes it harder to focus, increases the likelihood you will procrastinate, costs time and money, and can keep you stuck in the past. [09:19] We are loss averse as a species, we don't like to get rid of things. We want them "just in case" and the brain will make reasons for why it needs that extra stuff around. [09:48] If the "things" (physical, mental, emotional, digital) surrounding you aren't well organized and are getting out of hand it is keeping you from reaching your goals. This is why the first step in the Brainy Mindset Course is to work on clutter. [10:10] Even if you aren't consciously paying attention to the clutter, your brain knows it is there and it creates distraction. [11:02] The reverse is that the brain loves organization. Think about when you go on vacation or are looking at awesomely organized spaces. [13:10] Americans waste 9 million hours per day collectively looking for misplaced stuff – 30 minutes per person per day on miscellaneous stuff from keys to remotes to shoes and socks. [13:34] Clutter leads to procrastination, weight gain, stress…all kinds of things keeping you from your goals. [14:31] THE LIFE CHANGING MAGIC OF TIDYING UP by Marie Kondo. When people clear up the clutter in one area of their life they make huge shifts in other areas of their life. [16:08] You go throughout your house and make a huge single pile of everything in the category. You start with clothes – everything you own in one giant pile. Does it spark joy? [19:45] INDISTRACTABLE by Nir Eyal has great tips for eliminating digital clutter. [20:43] NO MORE NOTIFICATIONS - Changing the notifications on your phone is easy and SO freeing. It only takes a few seconds and can help you take control of your life, living in an organized style on your own terms. [22:32] You can also turn off email notifications. [25:13] The next tool I've learned to love is "FOCUS MODE" from Word. If you need to write a lot of content…like me…you spend a lot of time in word and it is eas

I don't know about you…but I am having a hard time believing that it's 2020 already. 2019 was such an amazing year with so many milestones for The Brainy Business. This episode will be digging into the top content from 2019. Links to all of the articles and episodes are below along with a link to the post with the full list. My subscribers will receive all of these links along with over 40 freebies I've given away (if you want to be on the list, download any freebie -- including the Master Your Mindset mini-course -- and you'll be automatically added). I want to take a moment to thank you all for listening, subscribing, sharing, connecting on social media, and reaching out to let me know your wins and the behavioral economics concepts you have applied in your own businesses. These are some of my favorite messages to get – I truly love hearing from you. I've received messages from all over the world, including Poland, Romania, Spain, South Africa, India, Italy, Ireland, and more. Wherever you are, if you love the podcast and behavioral economics, please do reach out through your favorite social app to let me know who you are. I love connecting with each of you, and it really is me responding. I'll kick off this show with sharing the top countries that have downloaded the podcast and then move on to the top shows and articles, and I might throw in a few surprises along the way. CLICK HERE FOR YOUR FREE DOWNLOAD Show Notes: [00:59] I talk about many milestones in this celebration episode 80. Celebrate! It's More Important Than You Think. [01:39] You can also find everything here The Best of The Brainy Business: 2019. [03:58] The top countries downloading The Brainy Business begin with the US and are then followed by the UK, Canada and Australia. [04:23] India has pushed past Germany to claim the number 5 spot. Brazil is still number 7 and Mexico retained its number 8 spot. The Netherlands has made its way into the top 10 claiming the number 9 spot, and South Africa rounds out the list. [04:43] Ireland came in at number 11. [05:12] The top 10 states in reverse order begins with North Carolina at number 10, followed by Colorado, then Georgia, Virginia and Florida at number 6. The state with the fifth most downloads is Illinois, number 4 is New York, then Texas at number 3, Washington is number 2, and California is number 1. [07:07] The top 10 downloads were found by doing a sort of all the downloads of the podcast. [07:53] We begin the countdown with 51. Time Discounting: The I'll Start Monday Effect – My Favorite Concept!: A Behavioral Economics Foundations Episode. [08:05] I also call this the "I'll start Monday" effect, because it is the concept behind all our new diets, exercise plans, failed resolutions…as well as efforts to save more money, quit smoking and generally change behavior. [09:01] Changing behavior doesn't have to be as hard as we make it out to be, and understanding time discounting is a big way to help combat that. [09:34] Two of the top 10 were analyses of businesses, including episode 42. Apple Card: A Behavioral Economics Analysis at number 9 and episode 73. Starbucks: A Behavioral Economics Analysis at number 5. [09:38] I used real world examples and talk about what top companies do in business that outline various concepts from behavioral economics and how you could use the same concepts in your own business. [10:33] Number 8 on the list was episode 59 on the Pain of Paying: Why The First Item In A Purchase Is The Hardest: A Behavioral Economics Foundations Episode. [10:44] This episode was part of a series that talked about partitioning as well, and how adding little barriers can impact behavior. [11:14] Getting someone to buy one thing is the hardest part, but once they have bought something it is easier to add on more items. This is why loss leaders are effective. [12:11] While we are talking about paying for things, I want to give a little shout out for The Truth About Pricing, episode 5, which was a top downloaded episode of all time, but didn't quite make the top 10 in 2019. [13:11] The next episode is 62. Game Theory: Life And Business Are A Game…Do You Know The Rules?: A Behavioral Economics Foundations Episode. This was a really fun episode and so important for understanding negotiations and communication with anyone you know. [13:30] The big tip I will give from this is to understand the difference between playing to win…and playing not to lose. They are not the same thing and result in vastly different outcomes. [14:18] Next, we have episode 45, which was an Overview of Personal Biases, part of the 8-part series on all the biases, and episode 50 on Selective Attention Biases made the top 10 as well, it was actually the third most downloaded episode of the year. [15:23] Next is episode 61 on Color Theory: When It Comes To Color, This 1 Thing Matters More Than Anything Else. This was a topic a lot of listeners asked for and something that comes up so much in branding and marketin

In honor of the new year, today's episode is about how to make behavioral change that sticks. Welcome to 2020 everyone! 2019 was an amazing year here at The Brainy Business, with 52 episodes released, more than 100,000 downloads in 150 countries, a brand new column on Inc.com (which already has 27 articles posted), a white paper on savings behaviors, two courses launched, and lots of engagement with all of you on social media. Next week, I'll dig into all of my top content from 2019. Today, is all about behavior change and narrowing your focus, so you can accomplish what matters most. If you are trying to do too many things at once, you will stay stuck. And, your brain actually wants that. I also talk about the Moment In Time or the Fresh Start Effect (like beginning your new goal or exercise program at the beginning of the year). I also talk about Temptation Bundling, which is combining something you should do (but often neglect) with something you really want to do) to help motivate you. This episode will help you name and claim your goal whether you are using fresh starts or temptation bundling (or ideally both!) to get going. CLICK HERE FOR YOUR FREE DOWNLOAD Show Notes: [06:45] The first thing to do, and something I have been preaching to you for months, is to narrow your focus. [07:09] The brain can't handle too many priorities. If you are trying to do too many things at once, you will stay stuck. [07:19] The human brain likes predictability, it builds your world based on what has happened in the past and it likes to know where its next reward is coming from. [07:51] If you don't take the time to prioritize what really matters, your brain can keep hiding and keeping you stuck. [08:24] Would you rather look back 10 years from now and say, "I made a little bit of progress on a lot of things…but never really completed what I wanted to" or "I completed one thing at a time and built on each success"? [09:23] Now that you understand the importance of limiting your priorities and goals to no more than three, we can talk about how you can set yourself up for the most success for actually achieving what you have set as your priorities. [09:46] There are many ways to tackle goals, and I'm going to share two of my favorites in this episode. [10:54] You can and should throw everything you can at your goals including the tactics of "moments in time" and "temptation bundling." [11:15] The "moment in time" is also known as the first start effect. This is exactly what you get at the beginning of the year (or decade in this case). [11:36] We humans are wired to look at new moments in time as a fresh start. This is a form of mental accounting. These time breaks allow you to look at yourself fresh. [12:27] We also create a new and distinct version of ourselves along with these fresh starts. [15:04] One thing that the fresh start does is it prompts you to stop and, essentially, look up. [15:39] Fresh starts are the opportunity to stop and look around to reevaluate what you've been doing and decide if it's time for a change. [16:11] Anything and every day can be a fresh start. [19:00] Any moment is an opportunity to be better than you were the moment before – an opportunity to reinforce those three goals you are focused on. [21:51] Having an opportunity to step out of the everyday work and realign your priorities and make sure that you are still on track is a benefit to every business and individual. [22:33] This practice can help you to reinvigorate your dedication to your life and commitments, to see what is working and what needs to change. It keeps you tuned in with yourself and your goals. [22:45] Schedule quarterly appointments with yourself. [23:22] If you are someone who sells products or services that align with being better or positive change…you should know when people are most likely to be looking for you and your offerings. [23:40] At your office, align talking about change at times when people are already aligned for change like a holiday or New Year. [24:37] While milestone dates can be beneficial for forming new habits…they also are a key point where you might BREAK habits – for better or worse. [25:14] You can control this. Awareness is key. [26:11] I've talked about bundling tasks and habit stacking in the goals episode. [26:39] Temptation bundling is another way to motivate yourself to have positive behavioral change. You can combine doing something you really want to do with something that you know you should do. [27:19] The only time you get to do the reward is when you are doing the thing that you should do. [29:33] Two thirds of people would prefer to have their possessions locked up to keep them on track. Committing your goal to someone else means you are much more likely to keep it. [31:09] The thing for you to do is think about what you wish you could do – or something where you tend to get distracted from your goals…and combine it so you can ONLY do it when it is helping you achieve your goal. [

Merry and happy holidays to you all – whatever you celebrate or don't, wherever you are in the world…I hope you are surrounded by joy, friends, family and everything else good as we close out 2019. Can you believe it's almost the end of another year? We've hit a milestone here on the podcast with 80 completed episodes. So much to celebrate – and as you'll learn today, it's very important to celebrate…everything. Yes, everything. Big, small, momentus or seemingly mundane…celebration is great for our brains! This is based on a lot of the foundations I shared with you in The Brainy Benefits of Gratitude. Being grateful breeds happiness. It also makes people more creative and even sleep better. Being grateful makes the people around you happier, you perform better in life and work, and have better memory retention and better relationships. It's an all around great thing. Celebrating is very similar to that. Celebrating allows you to slow down – be thoughtful – and reflect on the great things you have done. On the achievement in front of you. Many of us achievers who want to achieve big things in this world, and I'm guessing that's you if you have chosen to listen to this podcast, we tend to keep our eyes on the prize. We haven't "made it" yet, and so every milestone along the way is just a check mark on the road to greatness. But it needs to be more than that. We need to celebrate the big and small accomplishments and the things that we are so very grateful for. In this episode, I kick things off by sharing some of the Brainy things that I am grateful for and celebrating. Show Notes: [04:07] Our brains choose to do what has felt good in the past. Our experiences are shaped by our actions…not the other way around. [04:31] When we celebrate and mark things in our memory as achievements that make us feel good our brain will look for more of those achievements to boost ourselves up and create a more positive outlook on life. [04:42] "Celebrations are the punctuation marks that make sense of the passage of time; without them, there are no beginnings and no endings. Life becomes an endless series of Wednesdays." David Campbell [05:24] I love celebrating and have always been able to find the silver linings as a default. [05:58] If you have employees, celebrate them at their annual review. I encourage my employees to keep track of wins when they came in. This makes a huge list of accomplishments to begin the annual review. [07:19] The BE Thoughtful Notebook is coming out in 2020! Want one? Get on the waitlist. [08:03] This was an amazing year with a lot of great things to celebrate. [08:19] Highlights include: The Brainy Business blew past 100,000 downloads with listeners in over 150 countries. I launched two courses that both made money on their first time out, and we already have people signing up for the 2020 courses. [09:44] I was offered and started a column with Inc.com; went to visit Texas A&M and started doing research with them (so cool), I spoke to audiences around the country and led workshops abroad. I completed my masters in behavioral economics with a published white paper through the Filene Research Institute and walked at a graduation ceremony. I got to go back to Rome and show my husband where I used to live and we wrapped up our visits to all 50 states. There were amazing partnerships and connections and possible working relationships slated for 2020...so many cool projects underway! [10:11] All this amidst a much more balanced family life and bringing some exercise back into the mix, running a 5k in New York with my husband on Thanksgiving, and seeing the Macy's parade in person! [10:38] What can you celebrate from 2019? Celebrate those little wins too. It's not all about the big stuff. Share with me on social media. [12:08] My dad is a captain for American Airlines. He has flown there for nearly 35 years. His last flight will be on December 19th, and I'll be on it. [13:43] Dad, I don't know if you will hear this – I guess this is a test of who really listens to the podcast – ha! – but I am so proud of you and honored to be able to celebrate with you. Congratulations. [14:02] I want to wrap up the year and this mini episode (80 episodes of The Brainy Business podcast!) by saying, thank you to you. Thanks for listening. Thanks for making this year amazing. Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show. Links and Resources: The BIG Brainy Bundle ending SOON! Use the code BRAINY100OFF by December 31st to get all three pieces (a $1200 value) for just $599. I can't wait to have you join us in 2020. Master Your Mindset FREE mini-course Episode 76. The Brainy Benefits of Gratitude Episode 16. Framing: How You Say Things Matter More Than What You're Saying: A Behavioral Economics Foundations Episode Why You Should Celebrate Everything Throw a Party! Why It's So Important to Cele

Holidays are a time filled with traditions and reflecting upon the past, remembering the good ol' days or reliving your childhood…while creating new memories with (and for) those around you. This episode is all about nostalgia and traditions, and it fits in perfectly with the holiday theme. As we dive into the topic of nostalgia, I'll explain nostalgia's Swiss origins in the 1680s and the root of the concept. I talk about how it's not negative or pain inducing, but it can be triggered by a sad or tragic event. There are a lot of benefits of nostalgia and thinking about the good ol' days. It can help increase self-esteem, feelings of belonging, growth on a psychological level, and even make people act more charitably. It can also be a powerful technique for marketing and advertising. People are most likely to become nostalgic at major transitions in life. This is why a midlife crisis is a time where people buy the car they always wanted when they were in high school, or go back to visit their childhood home. Marketing or advertising for these sorts of things at the right time can trigger nostalgia and action in a buyer of a certain age. I'll be talking about all that and why our brains love nostalgia and tradition while also giving a few tips about how to use this in your business – whether it's at the holidays or any other time of year. Show Notes: [02:22] The concept of nostalgia was first introduced in the 1680s. Being far from home caused Swiss soldiers to have all kinds of symptoms. [02:40] The root is from the concepts of "return home" and "pain." [02:55] Everyone can feel nostalgia, and it's not negative in and of itself. [03:11] A sad event may cause us to think about the good old days. There are actually many benefits of nostalgia. It can help increase self-esteem, and feelings of belonging, and encourage psychological growth. It even helps us to remember that our lives can have meaning and value. [03:44] It's also a powerful technique for advertising and marketing. [04:00] Our bodies are made up of constantly changing atoms. Our makeups change every five years. [05:23] Sometimes what feels like a tradition is actually an assumption from the observer. [05:49] Ask a question. If you've always done something a certain way ask why. (Even if it doesn't appear broken...ask.) [06:09] Nostalgia helps us remember our lives have meaning and value. Most of our best memories are from the ages of 10 to 30. This span is called the reminiscence bump. [06:26] This period of time is important, because it's heavily linked to the time that we form a sense of ourselves. [08:45] Children are quite sensitive to effort, and with good reason. Actions speak louder than words. [09:17] Children can differentiate between fantasy and history, evaluate the strength of evidence and prefer claims with scientific framing. Children in many cultures are less likely than adults to appeal to supernatural explanations for unlikely events. [10:09] Feelings of nostalgia are most likely to come up whenever you feel sad or lonely. Nostalgia – remembering important people in your life or key moments – can help you to feel better about yourself. [10:51] People are also most likely to become nostalgic at major transitions in life. This is why a midlife crisis is a time where people buy the car they always wanted when they were in high school, or go back to visit their childhood home. Marketing or advertising for these sorts of things at the right time can trigger nostalgia and action in a buyer of a certain age. [11:16] Finding a trigger that can make someone feel nostalgic can make them feel better and more endeared toward your product. Incorporating all of the senses is also important. [13:03] Studies have shown nostalgia physically warms you up! [13:21] Our brains are also wired to make memories much better than they actually were. Our nostalgic brains build memories up to be better than anything that could possibly be. [14:33] Our brains are nostalgic and brands can and should use this in advertising and marketing when it makes sense to do so. The right memories need to be chosen and triggered properly. Get as close as possible to the context and emotion. [16:32] When you feel nostalgic, ask why that experience meant so much to you. [17:03] The brain does things based on what has felt good in the past. [17:44] There are four key elements of a traditional ritual. This includes 1) a strictly defined time and place, 2) a set of features that are repeated year after year, 3) another set of features that are different from year to year, 4) and a lot of symbols. [18:42] It's psychologically important for the event to contain a lot of sensory information. [19:53] Having enjoyed a happy set of childhood traditions makes parents more likely to give you support and enact effective rituals for their children. It has actually been shown to create more mentally strong kids. [20:34] Traditions have been passed down through story or ritual in cultures a

I am so beyond excited to introduce you to Nir Eyal, author of the fantastic new book Indistractable, which I have mentioned a couple times on the podcast already because..well...I haven't been able to contain myself! I also wrote about some of my learnings from his book in an article from my Inc. column. Nir is awesome, and he was so engaging to talk to. His writing has been featured in Fast Company, Entrepreneur, Forbes, TechCrunch, The Harvard Business Review, Psychology Today, Time and The Huffington Post to name a few. You may have heard of his first book, Hooked, which became an international phenomenon, loved by everyone from Silicon Valley and beyond. He's taught at Stanford and sold a couple tech companies…I could list the accolades for ages, but I think you get the idea. Nir is awesome and I can't wait for you to meet him as we talk about brains, goals and being Indistractable. So without further ado, Nir, welcome to The Brainy Business podcast! CLICK HERE FOR YOUR FREE DOWNLOAD! Show Notes: [03:10] Nir calls himself a behavioral designer. He uses consumer psychology and behavioral economics to change customer behavior through the technology that we use. As well as helping people shape their own behavior by understanding their cognitive characteristics. [03:41] His first book Hooked was all about how to build habit-forming products and create habits. Indistractable is about how to break habits and how to make sure we can get the best out of these technologies without letting them get the best of us. [04:24] Nir writes because he wants to know the answer. With Hooked, he wanted to uncover the techniques that tech companies use to make their product so habit forming. He wanted to allow other industries to use these techniques to help form healthy habits. [05:40] He wrote Indistractable, because the products can be so well made it's hard to stop ourselves from using them. That was the situation he was in. [06:40] He was using an activity book with his daughter. There was a super power question, and he missed his daughter's answer, because he was looking at his phone. She actually left and went outside to play. [07:41] He decided to read everything that was written about this problem. The answer in all the books was to get rid of the tech. So he did. And...he discovered that he still got distracted. [08:35] This is when he realized the problem was much deeper than the technology. The technology was a proximal cause or symptom of a larger dysfunction. [09:48] He decided to find an answer that actually worked. We can find ways to get the best of these tech tools without letting them get the best of us. [11:07] The opposite of distraction is traction. [12:53] The best place to understand distraction is to learn its opposite. Traction is an action that pulls you towards what you want to do. A distraction pulls you away from what you want to do. [15:03] Tech tools aren't bad if you use them on your schedule. We can turn anything into traction as long as we make time for it. [16:42] Nir wanted to get down to the root cause of identifying distraction and knowing what to do about it. [17:11] Find out what prompts towards traction or distraction. What are the triggers? [18:14] Our most common triggers start from within. The real disease is that we are uncomfortable with our emotions, so we let ourselves be distracted. [19:23] Why do we do what we do? Our brain gets us to act by spurring discomfort. [20:25] Motivation is spurred by a desire to avoid discomfort. [21:11] We use distraction as psychological pacification. Time management is pain management unless we learn tactics to cope with discomfort. The first step is to master these internal triggers. [22:50] People can become addicted to anything from exercise to news. It's not about the behavior. It's about what we are escaping from. [27:46] We were not designed by evolution to be happy all the time. Constantly striving and craving is what helped our species to progress. [28:21] We need to channel our uncomfortable sensations towards traction (not distraction). [29:50] Step two to becoming indistractable consists of three steps reimagine the task, reimagine the trigger, and reimagine our temperament. [36:23] Our brain craves simple answers which always get us into trouble. That's what's happening with the boogey man of distraction. [39:04] Gum sales have gone down since the iPhone has come out. We don't need gum to distract ourselves. [40:01] If it's something you are serving instead of it serving you...it's time to disconnect. [41:06] Step number three is to hack back the external triggers. Turn off phone notifications. Hack back the open floor plan office. [42:31] Every copy of Nir's book comes with a sign you can put on your monitor that says that you are currently indistractable. [44:09] Nir's wife wears a concentration crown to let her daughter know that she is working. [44:48] The fourth step is to prevent distraction with pacts or commitments to stay

"How do I raise my prices?" is a question I hear all the time. You all know that pricing is my jam. In fact, I've even created a Brainy Pricing Course that has a module on raising prices. In a recent questionstorming session with my current Brainy Mindset Course group, they asked to focus on getting past mindset blocks about raising prices. That is one of many reasons this episode seemed particularly fitting right now. It is all about raising your prices and learning to get past your own mindset blocks that have always tripped you up in the past (so you can move past them next time). If you are wondering if you can raise your prices...the answer is probably yes. As I've said many times, it's not really about the price. It's about what comes before the price and the framing of that price. I'll get into the importance of understanding your why and the context of the price too. I talk about scarcity and how it can actually validate a higher price. I talk about why it's okay if raising your prices is scary. It is for everyone. It's how you raise the price and why that matters. I also share a secret tip to convey your price to your clients with confidence just like you were telling them the time or the weather. This episode should help give you the tools and encouragement to confidently make a pricing strategy plan. If you do want more pricing help, I have an awesome year end special where you can get the Briany Pricing Course plus the Virtual Workshop Bundle, and you get the Brainy Mindset Course completely free! The BIG BRAINY BUNDLE is a $1200 value for $699, and if you use the code BRAINY100OFF you can get the whole thing for just $599, or 50% off – but that deal is only through December 31 so don't wait. Show Notes: [04:13] If you wonder if you could or can increase your prices or raise your rates…the answer is probably yes. [04:28] Pricing isn't about the price. It's about everything that comes before. If you can't raise your rates the block is often internal. [05:28] When you are working in massive volumes, small changes that are not going to be noticed much by consumers can have a huge impact on the bottom line. [05:53] Another way to look at profitability and prices is to understand what your costs are and how it all ties into the baseline question of why you want to increase the price. [06:48] Before you go through the process of raising your prices, it's important to know that you definitely could do it. [07:09] The next phase is: should you raise your prices and discovering what you are trying to accomplish. [07:18] The reason you want to raise the price is important to understand as you tackle the fears you have about raising prices. [07:36] Someone in the service industry may want to raise their prices because they're too busy. The brain will try to scare you and ask "what if I lose clients?" The answer is, it's okay to lose people because you're trying to reduce your workload. [08:28] The increase in revenue should make up for the people who leave. [08:58] Scarcity helps validate a higher price, so don't always be available. [09:08] Another reason to raise your prices is if you're not making enough profit. You need to sit down and understand your whole strategy behind pricing before you make the adjustment. [10:15] When raising your prices, know that nothing is for everyone and it's okay not to be a fit for someone anymore. [10:52] Don't tell them they can't afford you. It's their job to decide they don't want to work with you anymore. [11:10] People get more value from things that they pay more for. [11:48] Think about jeans and framing. We believe are expensive jeans are better than our cheap jeans. [12:27] Once you know you want to raise your prices and why, don't over explain and draw attention to the fact that you are doing so. [14:21] Apologies aren't necessary when raising your prices. Most people will pay the price, and some people will move on. [16:52] Some of my favorite questions to ask clients: What would happen if you charged 10 times more? What would make people happy to pay 10 times more? [18:18] If your campaign is all about price people will notice. [19:14] You can also charge new clients the new rate and phase in the new pricing for existing clients. [21:02] This can also be a chance to let a few problem clients go. Think through what you will do when people ask for discounts or threaten to leave. [22:33] Look at the competition and understand what others charge, but don't let it dominate your space. [23:10] Have a plan and understand some people won't want to pay your new rates. That's okay. They're not your people anymore. [26:00] You need to understand what is on the shelf next to your product. Consider the context of the price and what people will compare it to. [27:08] Consider search terms your ideal client will use, where your more expensive item can be showcased as the best choice. [28:32] High anchors can make something look more affordable. [29:01] Everyone hates raisin

Happy Thanksgiving! This episode is coming out the day after Thanksgiving, also known as Black Friday – a day of crazy deals and holiday shopping (which I have written a few articles about recently on my Inc column) including, Why Black Friday Is the Perfect Holiday Sale According to Neuroscience, Why Year End Is Actually a Bad Time to Send Gifts to Clients, and Why Offering a Deal at the Holidays Isn't Right for Every Business and Should Always Be Done Thoughtfully. I've also been thoughtful about a year-end deal from The Brainy Business - and we're having one! In honor of this episode, it will be called the Gratitude Discount (details below). Last year at this time, episode 23 was all about reciprocity and the benefits that come from giving gifts. While today's episode is about gratefulness, there is a reason I brought up last year's reciprocity episode to kick us off today. Gratefulness and reciprocity have an important thing in common…a tie that can bond them together…which is a feeling of happiness and joy. Doing things for others, giving things away, can help you to feel happier. And, as you learned in that episode on reciprocity, people want to give something in return; they can feel good from receiving AND from giving. It creates a nice virtuous cycle that I like to extend beyond the holiday season…though this is the perfect time of year to talk about this sort of thing. Reciprocity is the act of helping someone else to be a little happier. Giving away things, even in business, needs to be genuinely about that thing and not what you will get back. This episode explores how our brain filters for gratitude and how those principles can be applied in life and business. Show Notes: [02:07] Check out episode 23 on reciprocity (fab favorite!). [03:25] Gratefulness and giving can help us feel happier. [04:17] Giving away things, even in business, needs to be genuinely about that thing and not what you will get back. [05:13] Dan Gilbert shares what really makes us happy in his TED Talk. He found our brains systematically misjudge what will make us happy. [06:29] Studies found that a year after winning the lottery or becoming a paraplegic people had the same happiness levels. [07:11] People don't know what will make them happy. One of the most important things the human brain does is allow us to synthesize the future. [07:55] Natural happiness is a product of getting what you want. Synthetic happiness is what we get when we DON'T get what we wanted. [08:35] Synthetic happiness – not getting what you want but still being happy about where you are – is just as enduring and every bit as real to the brain as if you got exactly what you wanted (or thought you wanted). [08:57] We really and truly do create our own reality, and understanding how your brain looks at these situations can help you to be happier through a filter of gratitude. [10:30] Our brains reinforce our decisions. [11:27] You can be grateful and appreciate things and have them make you happier even if you don't remember going through the process before. [11:55] There is such a thing as too much choice. "Freedom to choose is the opposite of happiness." [14:31] Not getting what you want can make you just as happy – or happier – than if you had gotten what you set out for. Synthesized happiness is the same as natural happiness. [14:59] Lots of choice and opportunity to ruminate are a recipe for unhappiness. [15:16] Gratefulness comes before happiness. Gratitude is tied to happiness and helps people feel more positive emotions. [16:42] The benefits of gratitude filtering can impact all areas of life in a positive way. [17:34] When you are "filtering for gratitude" as I call it, you are resetting the way your subconscious is looking at the world around you – encouraging it to find good things happening so you will have something to write about at the end of the day or week. [18:08] Students who hand wrote a letter of gratitude had a huge boost in their happiness. [19:27] Our brains pay attention to what we write down, and it allows us to slow down and be thoughtful. [20:26] The BE Thoughtful Notebook will be released in early 2020. Get on the list! [21:01] Gratitude can also improve relationships. Sharing the good makes it easier to share the bad. [22:11] Do you want to be happier? Do you want to sleep better and be more creative? Do you want to make those around you happier, and increase performance on the job and off? Do you want better relationships and memory retention? [22:27] Then it's time to filter for gratitude and start writing down what you are grateful for. [22:49] The year end deal! Claim your spot and get discount pricing before it goes up at the end of the year! [26:09] If you get the pricing course and workshop bundle before the end of the year, which is only $699…you get the Brainy Mindset Course FREE! Use code BRAINY100OFF to get it for $599! Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what

Litter is found just about everywhere you find people. Discarded wrappers and dropped pieces of paper aren't meant to be cluttering up our parks, running trails, and sidewalks. Yet, litter is everywhere. It's a problem that hasn't been solved. Today's guest is someone who looked at this problem and used intuition and research to create a solution. I am so excited to have Michael Manniche, CEO and founder of The Littery as my guest. When I learned about The Littery in a post on LinkedIn, I knew instantly it was a perfect example of behavioral economics being used to create a business to help the planet and people from all countries living on it by turning litter…into lottery tickets. In today's interview, Michael shares how he first invented the name (it contains the problem and the solution). Michael has always felt that litter is totally unnecessary. He also understood that litter was a behavioral problem. The solution would need to be something strong enough to change that behavior. He then shares his research and how he has built a business model that pays people prize money to stop littering. This is a great example of how behavioral economics can be used in business and in making the world better. Show Notes: [03:27] The problem and the solution are in name The Littery. ("litter" + "lottery") [04:07] Michael has always felt that litter is totally unnecessary. [04:52] He wanted to find a motivation strong enough to change the bad behavior of littering. [05:48] Lotteries have been around for over four thousand years and all over the world. [07:44] Michael had a theory that a lottery incentive could stop littering. He did a test in his home country of Sweden and the results were better than he expected. [09:14] It's actually incredibly easy to change behavior with the right driver or motivation. [11:31] To test the concept, Michael went to a movie theater. They had students measure litter on the floor, in bins, and for correct sorting. [14:07] Patrons were offered an opportunity to win €5000 or free movie tickets if they put their trash in the correct place. [15:41] After one month, across four locations, the litter in the bin was now 100% and correctly sorted! [19:35] The success of the test encouraged Michael to leave his job, get investors, and start his company. [20:29] You put an app on your phone. When you open a smart bin and throw something in, you get a digital lottery ticket sent to your phone. [21:38] It's also a goal to sort recyclables correctly. There is a camera in the bin that checks the sorting process. You don't get a ticket if things aren't sorted correctly. [23:33] The AI and image recognition was more difficult than Michael thought it would be. The lighting and things have to be exactly the same as it would look inside of a bin. [30:02] He incorporated in Latvia (and moved to Sweden to support his dream), because he had Latvian investors. [31:02] The next phase will be piloted in the Paris area. In the future they will use the city litter contract money to purchase the bins and pay the lottery prize money. [32:47] The business model depends on procured contracts. Having a new solution is a challenge for procurement. This stage they are also raising funds to help finance the pilot programs. [34:52] Some partners include a large waste management company and Coca-Cola. [35:33] 10% of earnings will go to charity. Winners can also donate to their charity of choice. [41:01] Optimism bias and framing comes into play when you think about how picking up trash can give you a chance to win a lottery. [42:14] Now, when Michael looks at a cigarette butt on the ground, he sees a lottery ticket. Hopefully everyone will have that same opinion soon. [44:31] Humans want to behave as the norm. We are also prone to enjoy competition. Michael has incorporated many of these things into the app. [46:35] If anybody wants to invest reach out to Michael. [49:02] Michael is learning that behavioral science is super intriguing. [50:35] Using incentives to influence the larger group is the plan. [51:41] "When litter hits the bins everybody wins." Thanks for listening. Don't forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show. Links and Resources: The Littery Behavioral Economics Group Episode 16. Behavioral Economics Foundations: Framing Episode 36. Behavioral Economics Foundations: The N in NUDGES – iNcentives Episode 39. Behavioral Economics Foundations: The E in NUDGES – Expect Error Episode 34. Behavioral Economics Foundations: Optimism Bias Episode 23. Behavioral Economics Foundations: Reciprocity Episode 21. Behavioral Economics Foundations: Habits Episode 19. Behavioral Economics Foundations: Herding Episode 8. What is Value? Episode 9. Behavioral Economics Foundations: Loss Aversion