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

In the context of business messaging, frames play a crucial role in shaping the way potential customers perceive products and services. Different frames can evoke distinct emotions or reactions, as well as influence the customers' decision-making process. When applied effectively, framing can make a product or service more appealing, inspiring curiosity and generating positive associations in the minds of potential buyers. Framing can also demonstrate the benefits and value provided by a particular offering, ultimately increasing the chances of conversion. In the podcast, Melina Palmer discusses the importance of framing in marketing and advertising. She emphasizes that the presentation of a message, including the choice of words and phrasing, can have a significant impact on the way it is received and acted upon by the target audience. As such, marketers should carefully consider the use of frames, always taking into account the context in which they communicate their offering. By doing so, they can maximize their chances of resonating with potential customers and increase sales. Insights in this episode will help you to: Grasp the power of framing and its influence on people's perception and communication. Master the art of employing framing tactfully in advertising and marketing campaigns. Adopt ethical framing practices to genuinely benefit consumers. Implement insightful techniques for effective framing in your business messaging. Show Notes: 00:00:00 - Introduction, Melina Palmer introduces the topic of framing and explains why it's essential for anyone looking to apply behavioral economics to their business. 00:03:24 - The Power of Frames, Melina explains how frames impact the way we perceive the world around us and how our subconscious brain evaluates everything very quickly. 00:09:23 - The Nail Salon Example, Melina uses the nail salon example from episode 2 to illustrate how framing can make a difference in how people perceive your business. 00:12:51 - Loss Aversion and Framing, Melina discusses how framing can impact loss aversion and how losses are actually twice as powerful a motivator as gains according to research by Kahneman and Tversky. 00:14:44 - Examples of Framing, Melina provides examples of how framing impacts the way we perceive things, such as labeling food as "90% fat-free" vs. "10% fat" or saying "Serena lost" vs. "Osaka won" in the context of the US Open. 00:17:16 - Importance of Context in Framing, The way a message is framed can impact how someone reacts to it, based on their individual context. For example, promoting a credit card bonus offer may annoy existing cardholders who are not eligible. Therefore, it's crucial to consider the context and placement of messaging when developing marketing strategies. 00:18:15 - Tversky's Studies on Framing, Tversky conducted several studies on framing, including one on the impact of framing on doctors' decisions about lung cancer treatment options. The study showed that framing the same information differently can lead to significantly different outcomes. 00:20:07 - The Disease Problem, The Disease Problem is a classic example of the impact of framing on decision-making. In the study, participants were more likely to choose a risky option when the information was framed positively, as opposed to when it was framed negatively. 00:25:33 - Examples of Verbiage Using Framing, Verbiage such as "Chevron with Techron" or "America's best selling brand" are examples of framing in marketing. The way a message is presented can impact how it's received by the audience, and it's crucial to choose the right framing to achieve desired outcomes. 00:29:43 - The Impact of Naming on Framing, Choosing the right name for a business can impact its success. A poorly framed name such as "Avg Daycare" can negatively impact business, whereas a well-framed name can have a big positive impact. 00:35:39 - The Impact of Framing on Consumer Behavior, Framing can impact the way consumers feel about a product or service. A well-worded frame can help someone appreciate a product or service, while a poorly worded frame can repel them from it. It's important to use framing in a way that helps people see the benefits of a product or service without tricking them. 00:39:27 - The Power of Claiming Ownership, When a company makes a claim, even if it's something their competitors could also claim, it becomes associated with their brand. The power of claiming ownership is evident in BECU's marketing campaign, which made it difficult for other credit unions to use similar messaging (even though it was true for them as well). 00:43:38 - Implementing Framing Strategies, Melina's top three framing strategies to try right now: replacing "if" with "when," using "everyone" instead of "anyone," and ending with a question. Curious why? Listen in... 00:47:22 - Conclusion Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to tr

Dr. Kurt Nelson is a behavioral scientist and founder of the Lantern Group. His expertise involves helping businesses align incentives and motivation to improve sales, productivity, and employee happiness. With a strong focus on incorporating behavioral science principles into goal-setting and motivation strategies, Kurt offers valuable insights for individuals and organizations seeking to enhance their overall success. During the podcast, Melina and Kurt discuss the Great Resignation, Quiet Quitting, keystone goals, incentives, priming, framing, and so much more. Want to reduce turnover rates in your organization? Kurt explains why this requires a holistic approach that addresses multiple aspects of employee engagement and satisfaction. These might include clear communication of goals and expectations, a strong organizational vision, appropriate incentives, a psychologically safe environment, and acknowledging employee contributions. Implementing these elements effectively within the organization can result in a considerable reduction in turnover rates and a more motivated workforce. He shares a case study of a client company that initially had a 42% turnover rate, which is now under 5%. They achieved this by improving communication and creating a clear vision, which involved offering incentives designed to promote desired behaviors rather than instilling fear. Regular town hall meetings and a national employee meeting facilitated better communication and helped everyone stay informed. Additionally, they worked with managers to enhance their communication skills and foster better relationships with their teams. Learn all about this fascinating example and more in this episode, including: Elevate employee engagement through comprehensive strategies for lasting retention. Manage workload effectively and prioritize tasks to minimize burnout. Infuse meaning, purpose, and creativity into your work culture for a thriving environment. Enhance communication, vision, and incentives to diminish staff turnover. Employ behavioral science techniques for successful goal-setting and motivation. Show Notes: 00:00:00 - Introduction, Dr. Kurt Nelson, co-host of Behavioral Grooves and CEO of the Lantern Group, discusses his expertise in employee incentives and motivation in the workplace. 00:03:35 - Employee Experience, Organizations are refocusing on the employee experience and how they can ensure they are doing right by their employees to increase engagement and motivation. 00:08:34 - Human Complexity, Organizations need to understand that humans are complex and are driven by various factors, such as their external environment, social environment, and managerial challenges at work. Employees want a psychologically safe environment where they feel respected and fulfilled. 00:11:23 - Quiet Quitting, Employees are pushing back against the expectation to give 150% effort every day. Organizations should not expect employees to go above and beyond all the time, but they need to create jobs that allow employees to be creative and bring passion into their work. 00:14:22 - Full Self in Work, Employees who bring their full selves into work find more meaning and purpose in their jobs. Organizations need to make sure they are creating an environment that allows employees to find fulfillment at work. 00:15:58 - The Importance of Frontline Managers, Frontline managers are often promoted for their individual job skills rather than their ability to manage. This can lead to a lack of understanding of how to engage and work with employees, causing turnover and "quiet quitting." 00:18:23 - Case Study: Decreasing Turnover Rates, Working with a company that had a 42% turnover rate, Kurt and his team's focus was on improving communication from executive leadership to employees, setting a clear vision and incentives, and training managers on how to communicate and engage with their team. The result was a decrease in salesforce turnover rate to under 5%. 00:22:23 - Priming and Framing, Changing 12 words in an email to incorporate qualified achievement words increased performance by 15% and decreased the need for escalation by 30%. Framing incentives in a gain or loss context can also impact behavior. Psychological safety is important for employees to feel valued and heard. 00:28:46 - How to Be a Better Organization, Align incentives with desired behaviors, create a psychologically safe environment where employees feel valued and heard, and provide tools for managers and employees to break down goals and understand how to engage and motivate teams. Changing behavior is key to achieving success, and incentives are key to that. 00:30:29 - Summary, To decrease turnover rates and create a better organization, focus on aligning incentives, creating a psychologically safe environment, and providing tools for managers and employees. Changing behavior is key to achieving success. 00:31:03 - Lantern Group's Tools, Dr Kurt Nelson talks about the Lantern Gro

In the context of choice architecture, mapping involves organizing options to make them easily comprehensible and help customers make better decisions. By presenting choices in a simple and quick-to-understand manner, customers can avoid getting overwhelmed and make choices they are confident about. It is important, however, to carefully consider how options are presented, as offering too many choices can lead to confusion and regret. For the best results, businesses should strive to make options easy to compare and understand. Melina Palmer explains that mapping is a critical part of structuring complex choices, the "U" and "S" in NUDGES, and can be used to make customer decision-making more accessible and efficient. Proper mapping can result in better outcomes for both the customer and the business. Palmer highlights examples from several industries, including ice cream, hospital treatments, megapixel cameras and product guarantees, to illustrate how mapping concepts can be utilized to guide customers towards the best choice while maintaining their freedom to choose. Understand the role of mapping in choice architecture for superior customer selections. Convert complex choices into approachable, meaningful opportunities. Help people get from where they are to where they want to be in the easiest way possible. Show Notes: 00:00:00 - Introduction, Melina Palmer introduces the topic of the episode, which is the "U" in NUDGES: understanding mapping. She explains that the concept of mapping is important in choice architecture and nudging, which are foundational in behavioral economics. 00:04:03 - What is Mapping?, Mapping refers to the relation between choice and welfare. The example given by Thaler and Sunstein in Nudge is choosing a flavor of ice cream versus choosing a medical treatment. The mapping for choosing ice cream is relatively easy, while the mapping for choosing a medical treatment is much more complex and difficult. 00:07:07 - Five-Step Process to Understanding Mapping, Melina's five-step process to understanding mapping includes: 1) encourage thoughtful review and open-mindedness, 2) break down the options, 3) make it relatable, 4) help them to get there, and 5) call to action. This process is essential in building the map and guiding the customer to the right recommendation. 00:10:22 - Encouraging Thoughtful Review, It's important to understand the biases and mental state of the customer or patient in making big decisions. The best choice architect will encourage thoughtful review and open-mindedness, especially in highly emotional situations. 00:12:08 - Breaking it Down and Making it Relatable, The second and third steps in the five-step process are breaking down the options and making it relatable. This means anticipating the questions and needs of the customer and presenting relatable information in their language. In the example of buying a camera, the mapping will be different for each type of customer and their needs. 00:16:34 - Mapping in a nutshell, Every choice can be broken down into a simple rule of thumb to use. Sticking with the camera example, megapixels are confusing. Saying it can be "billboard" or "poster size" or "web only" means something that can help someone make an informed decision. 00:19:54 - Air Conditioning Mapping Example, To map the seemingly simple choice of buying air conditioning, let's encourage thoughtful review, break it down, make it relatable, help them get there, and set our call to action. 00:27:17 - Mapping in the Restaurant Industry, Mapping in the restaurant industry involves sorting menu items into categories, relatable descriptions, and making it easy to choose. Staff picks, chef specials, bolded options, and images can also help with the mapping process. 00:31:44 - Mapping in the Beauty Industry, Nail salons and other businesses in the beauty industry can learn from mapping practices. Simplify options, categorize services, and provide clear descriptions to help customers make informed choices. 00:32:45 - The Importance of Mapping, Adding more options to a product can cause confusion and overwhelm for the consumer, making it harder for them to make a decision. It is important to provide a map or a clear comparison of options to aid consumers in making a choice. 00:37:12 - The Significance of Incentives in Mapping, Consumers perceive fees differently than rates and how incentives play a role in mapping. Companies should present information in a relatable way to consumers to aid in making better decisions. 00:42:09 - The Importance of Trailers and Descriptions in Mapping, Trailers, reviews, and ratings help customers map their options when it comes to choosing movies to watch. Brands can use visuals, such as commercials that show someone using their product, to help consumers create a mental map and make a decision. 00:44:38 - The Benefits of Trial Periods and Satisfaction Guarantees, Companies can offer trials or guarantees of their products to help con

The core idea of multi-narrative storytelling involves identifying a central message or concept that resonates with the audience and then expanding on it through a series of complementary stories. While each narrative can stand alone, together they create a comprehensive and compelling representation of the brand's identity and message. Two major brands that have successfully utilized multi-narrative storytelling in their marketing campaigns are Nike and Apple. Both brands have managed to create a global impact with their advertisements, encouraging consumers to connect with the brand on a personal level. By using multiple storylines, these giants have enabled their campaigns to resonate with a wide range of individuals, allowing for broader appeal and deeper emotional connections. During the podcast, Melina and Dr. Troy Campbell discuss how both Nike's "Just Do It" and Apple's "Think Different" campaigns are prime examples of effective multi-narrative storytelling. Companies can learn valuable lessons from these successful brands and apply the same techniques to their own business strategies. This episode will help you to: Uncover the power of multi-narrative storytelling in enhancing brand communication. Master the art of crafting a compelling personal brand identity through diverse stories. Grasp the importance of themes, metaphors, and language in creating engaging narratives. Cater to diverse customer groups by implementing a multi-narrative approach. Gain insights from storytelling techniques employed by successful companies. Show Notes: 00:00:00 - Introduction, Dr. Troy Campbell is back on The Brainy Business podcast (one of our few three-peat guests!) to talk about multi-narrative storytelling, building on his background as a former Disney Imagineer and Netflix Consumer Insights employee. 00:05:02 - Shades of Black, Troy talks about how Netflix uses different shades of black to differentiate importance cues on their platform. 00:11:19 - Definition of Multi-Narrative Storytelling, Multi-narrative storytelling involves telling a core story or idea through multiple complementary narratives. Nike and Apple's famous ad campaigns, "Just Do It" and "Think Different," are examples of multi-narrative storytelling. 00:13:48 - Nike and Apple as Examples, The "Think Different" campaign started as a multi-narrative by showcasing the "misfits" and "rebels" who changed the world. 00:15:10 - The Power of Multi-Narrative Storytelling, Multi-narrative storytelling is about getting a core idea across. It involves creating a core story that is the center of your messaging, which is surrounded by different stories that are used to convey your message. This technique involves using narratives that have associations with your brand that the audience will recognize. (As an example in the Apple campaign, showing a picture of Einstein is powerful because of the associations we all have with him and what his image means.) 00:16:52 - Core Idea of Multi-Narrative Storytelling, The core idea of multi-narrative storytelling is to create a cause-and-effect story. It involves telling a story that explains who you are and what you're trying to achieve, and then surrounding that story with other narratives that support your message. You can use existing stories or create original ones. 00:19:15 - Using Existing Stories as Associations, Multi-narrative storytelling can involve using existing stories as associations to convey your message. This technique involves using stories that your audience is already familiar with and borrowing elements of those stories to support your message. This approach makes it easier for your audience to understand and relate to your message. 00:22:28 - The Power of Metaphor and Semiotics, Metaphor, semiotics, and word choice allow for a deeper level of understanding of how to convey messages. Using these techniques and creating a multi-narrative story around them can make the messaging more powerful and effective. 00:30:36 - Multi-Narrative Storytelling, The concept of multi-narrative storytelling involves creating a core story with multiple examples or narratives that support it. This approach allows for flexibility in communication and can be used to convey complex or abstract ideas. Multi-narrative storytelling is useful in branding, marketing, and other areas of business where a clear and compelling message is necessary. 00:32:19 - Just Do It, Nike's "Just Do It" slogan is specific enough to be relatable and broad enough to appeal to a wide range of audiences. This approach can be applied to other branding or marketing efforts by creating a core story that is supported by multiple narratives or examples. 00:38:01 - Branding, Effective branding involves creating a core story that is supported by multiple narratives or examples. This approach allows for flexibility in communication and can help to appeal to a wider range of audiences. The branding of The Brainy Business podcast is an example of this app

Creating brain-friendly experiences involves understanding how human psychology and behavioral principles can be integrated into the design of products and services. By recognizing and leveraging these concepts, brands can establish a stronger emotional connection with their customers and create experiences that resonate long after the interaction has ended. In the podcast, Melina Palmer advocates for infusing behavioral economics concepts into business practices and learning from Disney's approach. She encourages brands to delve into the "why" behind their existence and explore principles like framing, nudges, and nostalgia to foster lasting relationships with customers. The goal is to deliver unforgettable experiences that keep customers coming back for more, just as Disney has managed to do, time and again. Discover the art of blending novelty and nostalgia to create Disney magic. Unravel the secrets behind Disney's scarcity and identity-based marketing techniques. Learn how to improve customer experience during those unavoidable wait times. Implement Mickey's Ten Commandments and Imagineering Team's guiding principles. Uncover brain-friendly storytelling methods that boost revenue generation. Show Notes: 00:00:00 - Introduction, Melina introduces the podcast episode, which is about the behavioral economics of Disney. She talks about how Disney is part of our culture and upbringing and how it is a complex web of companies. 00:06:42 - Disney's Focus on Innovation, Disney's focus on innovation and constantly working to be better has stuck with the company for over 90 years. They balance expectations with surprise and delight in a way that works with the brain's bias for the status quo. 00:09:19 - Nostalgia, Disney embraces nostalgia in its parks, movies, and merchandise. They keep some things static over decades to evoke a feeling of nostalgia and balance it with new adaptations to keep it fresh. 00:12:17 - Novelty and the IKEA Effect, Disney incorporates novelty and the IKEA effect, which is the idea that people value things they helped create. Disney has little surprises throughout its parks, like hidden Mickeys, and Easter eggs in its movies. They also let people create their own experience with the brand, like embroidering names onto Mickey ears. 00:15:00 - Emotional Bonding, Being part of the fun and shaping the experience makes people emotionally bonded to the Disney brand. Helping pick out Mickey ears or discovering hidden Mickeys can prime memories and conversations and helps people like the brand more. 00:16:07 - Scarcity and Buzz, Disney's scarcity of specialty ears creates buzz and excitement among park visitors, who love to follow the crowd. This generates social proof, making the limited item even more popular and highly sought after. It's a stroke of genius by Disney to create scarcity in a way that gets people talking about the brand. 00:19:22 - Thoughtfulness in Experiences, Disney is known for being thoughtful in their experiences, making even the bad moments an experience all their own. By creating fun and engaging interactions including, hidden Mickeys, and themed line experiences, Disney turns waiting in a long line into a dopamine-generating, anticipation-building experience. This thoughtfulness is a gift that people repay with loyalty and fandom. 00:23:18 - Mickey's Ten Commandments, Mickey's Ten Commandments are a set of guiding principles that define Disney's values and handbook. Two commandments that stand out are to "avoid overwhelm" and "tell one story at a time." By simplifying the customer experience, reducing decision fatigue, and thinking through every experience, Disney can remain the happiest place on Earth for over 65 years. 00:28:17 - Imagineering Process, Disney's Imagineering Team goes through a process of asking questions to guide every new project, starting with what could it be and ending with how did we do? By using this process, Disney creates a flexible approach that allows for variety while still maintaining a high level of thoughtfulness and attention to detail. 00:31:03 - Starting with Story, Disney starts by creating a great story and then builds everything around it. This approach is different from the standard approach where a product is created, and then a story is created around it. By starting with a story, Disney ensures that the audience is emotionally invested in the story and the products or services associated with it. 00:31:51 - Brain-friendly Experiences, Brands can benefit from creating brain-friendly experiences by starting with a story. Starting with a story creates a sense of emotional investment and makes the experience more memorable. Incorporating various concepts from behavioral economics, such as framing, nudges, and nostalgia, can help create a more brain-friendly experience. 00:33:36 - Insights and Inspiration, Disney is a master of creating a balance between novelty and nostalgia in their experiences. They recognize that people want to

In order to design effective solutions, businesses need to have a clear understanding of the different types of decisions their customers make. Not all decisions are created equal, and handling them differently ensures better outcomes. Companies should avoid applying a one-size-fits-all approach, instead aiming for a tailored response that addresses the specific needs of each consumer decision. By having a better grasp of decision-making processes, businesses can create products, services, and experiences that truly resonate with their audiences. In this episode of The Brainy Business podcast, Sam Evans emphasizes the importance of diagnosing the decision before prescribing a solution. Instead of providing a standard response to every challenge or query, businesses should seek to comprehend the decision type, the question being asked, and the desired outcomes. Evans highlights that businesses must go beyond just addressing jobs to be done but also consider the deeper aspirations and self-identity of customers. Uncover the pivotal role of the decision-making process in designing impactful solutions. Create a practical decision spectrum to categorize customer decision-making styles. Engage customers effectively while providing answers that direct them to optimal choices. Explore the power of weaving engaging stories and emotions into the decision-making framework. Devise immersive experiences that naturally drive customer engagement without forcefulness. Show Notes: 00:00:00 - Introduction, Sam Evans, founder and CEO of Design for Decision, talks about his background in brand strategy and innovation and his passion for helping teams design products, services, and experiences that change behavior and drive growth. 00:03:40 - From Reputation Management to Behavioral Science, Sam shares how his career has been about designing for behavior change, starting with reputation management and public affairs, then moving to brand strategy and innovation at Pepsi, and eventually launching Design for Decision. 00:07:29 - Design for Decision's Mission, Sam talks about Design for Decision's mission to put the latest science of how people think, decide, and behave into action for the purpose of winning brand positioning, meaningful innovation, and more engaging cross-channel experiences for big brands, non-profits, and startups. 00:09:27 - Connections with Behavioral Science Experts, Sam talks about his connections with behavioral science experts like Robert Cialdini, Steve Wendell, and Nir Eyal, and how he has integrated their ideas into his work at Design for Decision. 00:14:31 - Designing for Decision, Sam explains how designing for decision is more than just designing for the jobs to be done, and how not all decisions are created equal. He talks about the importance of understanding the decision before designing anything and how businesses can do social good by helping people make more confident, effective, and efficient decisions. 00:15:56 - Understanding Different Types of Decisions, Sam Evans emphasizes the need to move away from the assumption that all clients face the same challenges or require the same toolkit to solve their problems. He suggests that different types of decisions should be diagnosed first and then solutions prescribed to answer questions based on the decision-making needs of the customers. 00:18:38 - The Decision Design Spectrum, Sam Evans introduces the idea of a decision design spectrum, which classifies different types of decisions into deliberation, default, and deciding. He explains that depending on where a decision falls on this spectrum, different tactics must be employed for effective engagement. 00:21:08 - Educating vs Engaging, Sam differentiates between educating and engaging customers, citing the success of smoking cessation campaigns that used negative reinforcement instead of education to deter smoking. He recommends engaging customers in ways that inspire and answer their questions instead of educating them on why a product is important. 00:25:18 - The Importance of Translating and Avoiding Math, Sam Evans advises businesses to avoid asking customers to do math and include technical jargon. Instead, communicate in simple language. He suggests providing familiar concepts and translating information to help customers make informed decisions. 00:28:04 - Engaging Customers in the Right Way, Sam Evans highlights the success of brands like Amy's Kitchen in engaging customers through appealing visuals and inviting experiences. He suggests businesses find ways to engage customers based on their decision-making preferences, whether it's System 1 (subconscious) or System 2 (conscious). 00:29:30 - Understanding Decision Making & Behavior, Sam Evans highlights the importance of understanding decision making and behavior. He emphasizes that it is crucial to diagnose the decision before prescribing the solution. He also notes that not all decisions are created equal, and it is essential to consid

Dealing with distractions is a common challenge that many professionals face in their everyday lives. Traction (the opposite of distraction) is the force that drives us towards our goals and objectives, keeping us focused on the tasks that really matter. In order to combat distractions, it's vital to create a plan that outlines the necessary steps for achieving success. This includes setting clear objectives and breaking down goals into manageable tasks, while also allocating specific time for relaxation or personal enjoyment. By doing so, individuals can achieve a balanced life that fosters productivity and happiness. During this conversation with host Melina Palmer, Nir Eyal emphasized the importance of distinguishing between distraction and traction. Contrary to popular belief, the opposite of distraction isn't focus, but rather traction. Eyal explained that distractions are anything that pulls us away from our true goals, while traction is any action that brings us closer to achieving them. He urged listeners to create schedules that align with their values and to stick with them, ensuring that they devote the necessary time and focus to what truly matters. Enhance concentration through gaining traction and structured planning to mitigate distractions. Utilize technology with intention for peak productivity and enriching personal experiences. Overcome internal triggers by comprehending the nature of discomfort and controlling urges. Create value-driven schedules to bolster time management and sharpen focus. Employ tactical tools and approaches to curb the influence of digital distractions. Show Notes: 00:00:00 - Introduction, Melina Palmer introduces the episode and the guest, Nir Eyal, who is a behavioral designer. She talks about how Nir's book, Indistractable, helps people overcome distractions and become more productive. 00:04:30 - Personal Reason for Writing Indistractable, Nir Eyal shares his personal reason for writing Indistractable. He talks about how he was distracted by his phone while spending time with his daughter. Research and personal testing made him realize the problem was much deeper than just technology. He decided to explore the root cause of distraction and find an answer that actually worked. 00:09:40 - Distraction is an Old Problem, Nir talks about how distraction is not a new problem and has been with us for at least the past 2500 years. He explains how people have always blamed various forms of entertainment and technology for distracting them, and how it's lazy thinking to blame technology for distraction without understanding the root cause. 00:11:14 - The Opposite of Distraction is Traction, Nir Eyal explains that the opposite of distraction is not focus, but traction. He defines traction as any action that pulls you towards what you want to do, and distraction as any action that pulls you away from what you plan to do. He emphasizes the importance of understanding the difference between the two. 00:12:27 - Tools for Finding Balance, Nir Eyal talks about the importance of finding balance when it comes to using technology. He shares some tips and tricks anyone can use to help with this (a tiny sample of all the resources in his book). 00:13:47 - Understanding Distractions and Traction, Nir Eyal explains that distraction is anything that pulls us away from what we planned to do and anything can be a distraction. Conversely, anything can be traction if we make time for it and plan it according to our values. Becoming indistractable means living with personal integrity and knowing why we got distracted. 00:18:28 - The Root Cause of Distraction, Eyal identifies the root cause of distraction as our inability to deal with discomfort in a healthy manner. We use distraction as psychological pacification and escape uncomfortable emotions. To become indistractable, we must first learn to deal with the discomfort in a healthy way by fixing the source of discomfort or finding ways to cope. 00:19:48 - Human Motivation, Nir explains that human motivation is not about the pursuit of pleasure and avoidance of pain but rather spurred by discomfort. We have two neural circuits, the liking system and the wanting system. The purpose of the wanting system is to create discomfort to get us to act. Time management is pain management, and to master distractions, we must first master internal triggers. 00:22:21 - Time Management and Addiction, Addiction isn't just about substances or behaviors but is more about our need to escape from discomfort. We must fix the source of discomfort or learn to deal with it in a healthier way. Eyal shares the story of Dr. Zoe Chance, who became temporarily addicted to her pedometer as she was using it to escape her life. 00:27:21 - The Evolution of Internal Triggers, Evolution has made us perpetually perturbed and hardwired for things like hedonic adaptation, rumination, and boredom to keep us searching for more. We are not designed by evolution to be satisfied, but

In today's fast-paced world, attention spans are shorter than ever. By making stories concise, engaging, and to the point, marketers can cater to the needs of overwhelmed audiences while still delivering powerful messages. Short stories leave out unnecessary details while retaining the most critical elements, ultimately making them more memorable and easier to digest. David Paull considers short stories to be particularly useful tools in marketing and communications. He cites the popularity of TED Talks as evidence that people are drawn to concise yet impactful stories. In the podcast, he discusses the importance of refining messages through a careful editing process, distilling them down to their most essential aspects, and making them as powerful and engaging as possible. In this episode: Unleash the potential of behavioral storytelling to revolutionize your branding and marketing efforts. Learn how Dialsmith dials offer an innovative way to non-consciously measure audience reactions. Discover how to implement the RSPCT framework for designing impactful and convincing messages. Realize the significance of concise, emotionally charged stories for capturing your audience's interests. Leverage testimonials and social proof to amplify your persuasion techniques. Show Notes: 00:00:00 - Introduction, Melina Palmer introduces David Paull, CEO of Dialsmith and founder of Lillian Labs. She highlights David's expertise in using storytelling to build brands and introduces his behavioral storytelling framework. 00:04:02 - Dialsmith, David Paull talks about Dialsmith, his insights technology company that develops dials used in focus groups during presidential debates and State of the Union addresses. He also discusses the online version of the dials and the consultancy arm of the company, Lillian Labs. 00:11:56 - Storytelling, David shares his journey in becoming interested in storytelling through his work on strategic communications and messaging. He talks about how he got involved with the Story Conference in Nashville and the experiments and thought exercises he did on cognitive biases and behavioral economics. 00:15:33 - Behavioral Storytelling, David Paul explains how he blends insights and storytelling to create behavioral storytelling. He provides an example of working with clients on climate issues and how they isolate the real problem and test their messaging with the market. The goal is to take the audience on an emotional or intellectual journey that leads to action. 00:19:25 - TEDxPortland, David Paul discusses his involvement with TEDxPortland, the largest indoor TEDx in the world. He talks about the importance of having a diverse group of speakers and how they select the speakers for the event. 00:16:25 - The RSPCT Framework, David Paull discusses his RSPCT Framework, which involves determining the real problem for the target audience, understanding what's at stake if the problem is not solved, identifying the perfect outcome, crafting an effective call to action, and providing testimonials and social proof for added credibility. 00:19:23 - The Danger of Stressing the Problem, Melina Palmer and David Paull discuss how stressing the problem too much can lead to unintentional normalization of the behavior you want to change. Instead, they highlight the importance of including testimonials and social proof to make the audience feel comfortable with the solution being proposed. 00:24:56 - Tips on Delivering a TED Talk, David Paull shares his experience as a speaker coach for TEDxPortland. He emphasizes the importance of keeping talks short, with a focus on big original ideas and tangible takeaways. He also recommends a strong emphasis on editing to distill the message down to its most essential elements. 00:27:38 - The Power of Short Stories, Melina Palmer and David Paull highlight the power of a short story to convey complex ideas in a short amount of time. They use examples from famous TED Talks, including one that was only two minutes and fifty-two seconds long. They emphasize the importance of making every word count to deliver a compelling message that resonates with the audience. 00:30:24 - Make It as Short as Possible, David Paull shares a quote from Albert Einstein about making scientific work. 00:31:51 - Finding the Real Problem, The first step in problem-solving is identifying the real problem. Keep peeling back the layers until you find the underlying issue by asking "why" until there's nowhere else to go. Then determine what's at stake and what the perfect outcome would be if the problem is solved. 00:32:34 - Using Storytelling to Evoke Emotion, Describing the perfect outcome in a way that can be felt is crucial. Storytelling evokes emotion, making it easier for people to make a decision. The call to action should demonstrate how your solution solves the real problem, alleviates what's at stake, and delivers the perfect outcome. 00:33:13 - Testimonials and Social Proof, Sharing testimonials and s

Stories have a tremendous impact on the way we perceive the world and make decisions. They are deeply rooted in our human nature and can be incredibly effective for marketing and brand strategy. Utilizing storytelling in marketing creates an emotional connection with the audience, which is integral for influencing decisions and shaping behavior. Stories have a unique ability to captivate attention, evoke emotions, and create a sense of empathy with the characters, all of which are powerful tools for businesses to reach their target customers. During the podcast, Michelle Auerbach shared the importance of focusing on a specific character or situation when crafting a story, to achieve a strong emotional impact. By providing a relatable context, stories can effectively communicate complex messages and ideas that may get lost or appear less engaging when presented as plain data or statistics. Auerbach emphasized that incorporating storytelling into marketing and brand strategy can be an essential factor for success, as it encourages the audience to connect with the brand and take action that benefits everyone involved. Master the art of storytelling for influencing human behavior and boosting your business potential. Implement the three-point story arc for powerful communication and establishing deeper connections. Trigger emotions through captivating storytelling techniques that drive decision-making and prompt action. Reinforce group cohesion and empathy through genuine and relatable stories. Show Notes: 00:00:00 - Introduction, Melina introduces the episode and its focus on the power of story. She explains that over the next few weeks, there will be guests discussing various aspects of storytelling in life and business. 00:03:14 - Michelle Auerbach's Background, Michelle talks about her childhood and her love for stories, which led her to pursue a degree in literature and a career in teaching that as well as ancient world languages. She then transitioned to organizational change and leadership development, using storytelling to help organizations develop culture and change. 00:06:01 - Story's Role in Change Management, Michelle explains how story impacts change management in several ways. Story has a somatic impact on the brain, helps with co-regulation, facilitates learning, and helps people see possibilities they wouldn't otherwise see. Story also helps people focus and remember information, and it produces cortisol and oxytocin, which encourage pro-social behavior. 00:11:10 - The Power of Story in Marketing and Brand Strategy, Melina and Michelle discuss how storytelling is used in marketing and brand strategy. Michelle explains that storytelling can help organizations connect with their audience by creating empathy and helping people understand the impact of their work. By focusing on one person's story, it can create a powerful emotional response and motivate people to take action. 00:13:29 - The Biology of Storytelling, Michelle explains the biology of storytelling and how it impacts the brain. Story produces cortisol and oxytocin, which help people focus and remember. 00:14:50 - The Importance of Storytelling in Business Michelle shares her expertise in storytelling and how it can be applied to business. She emphasizes the power of story in bridging gaps in communication, sharing scientific information, and even changing perspectives. She also suggests a simple three-part story structure that can be used in presentations, conversations, and even conflict resolution. 00:19:28 - Different Story Structures Michelle talks about the diversity of story structures found in different cultures and how they can be used in storytelling. She gives examples of Japanese and West African story structures and emphasizes the importance of not forcing one's own story structure on others. She also suggests ways to learn about other people's favorite stories and how it can build affinity and rapport. 00:25:06 - Using Story Cubes to Open Up Melina shares her experience using Story Cubes in her workshops to help people open up and share more about themselves. Story Cubes are a fun tool that uses images to trigger memories and stories that people might not have shared otherwise. Michelle also shares her love for Story Cubes and how they can help people tap into different parts of their memories and experiences. 00:27:00 - Priming with Storytelling Michelle talks about the concept of priming and how it can be used in storytelling to set the tone and mood for an event or meeting. She gives examples of how organizations with a strong "why" or Credo can use storytelling to bring that purpose into the room and lead from that place. 00:28:59 - Using Story Cards, Michelle created story cards with pictures from art students to help people tell stories and add visuals to presentations. The details in stories evoke feelings that anchor learning and change. 00:30:25 - Using Visuals in Storytelling, Adding visuals to storytelling evoke

The manner in which we communicate plays an essential role in contributing to or easing microstress. With the proliferation of remote work and numerous communication channels, it is vital to be mindful and intentional in our communication with colleagues and acquaintances. Establishing positive communication norms can alleviate microstress and create a more collaborative and productive work environment. Rob Cross highlighted the need for thoughtful communication in his conversation with Melina Palmer. He shared that teams should establish clear communication norms, such as using bullet points rather than lengthy paragraphs, avoiding unnecessary CC in emails, and refraining from sending messages after a particular time. By adopting such positive communication practices, teams can work towards fostering a supportive workplace culture and minimizing the impact of microstress on all members. Unveil the methods for recognizing and neutralizing everyday workplace microstressors to elevate your work experience. Comprehend the ramifications of toxic relationships on your well-being and establish pathways for transformation. Benefit from Rob Cross's research on the microstress effect and its applications to your personal and professional sphere. Refine your communication skills to address microstress mindfully and cultivate enriching connections. Bring about small alterations that result in remarkable betterment of your holistic well-being. Show Notes: 00:00:00 - Introduction, Host Melina Palmer introduces Dr. Rob Cross, who is the Edward A. Madden Professor of Global Leadership at Babson College and the co-founder and director of the Connected Commons. The episode is about the new book he co-authored with Karen Dillon, The Microstress Effect. 00:03:02 - Background, Rob Cross talks about his background and his work with the Connected Commons, a consortium of over 150 leading organizations that sponsor research into ways of looking at networks and relationships in organizations. 00:06:32 - The Impact of Negative Relationships, Social psychology has shown that the negative interactions we have tend to have 3x to 5x the impact of the positive. Rob Cross shares his thoughts on the best practices for organizations to cultivate relationships that positively impact their employees' wellbeing. 00:08:15 - Resilience and Connections, Resilience is not just about grit and fortitude. It's about how we fall back on others in difficult times. Rob Cross discovered that there are eight predictable things we get from others when we have the connections in our lives. Without these, it's harder to navigate through difficult times. 00:12:23 - Understanding Microstress, Rob Cross shares how he stumbled onto the idea of microstress through his research. He found that there are 14 pretty consistent types of microstress that tend to accumulate around us each day and week at a pace and volume our brains just aren't designed to handle. These microstresses grow behind the scenes in a way that sneaks up on us until they become overwhelming. 00:14:55 - The Impact of Microstress, Rob discusses the impact of microstress on one's life, particularly when they are not aware of it. He talks about how the stress is just beneath the surface of awareness and can be creeping up on us. 00:17:09 - Types of Microstress, Rob explains that microstressors can come from different sources, including emails, instant messaging applications, and team collaborative spaces. He shares that it affects the metabolism differently, and people under this form of stress metabolize their meals differently. 00:22:44 - Cascading Effects of Microstress, Rob shares that microstressors can lead to cascading effects that people don't often think about. For example, a leader or stakeholder that shifts expectations can cause extra work, and employees may have to protect their team and go back into the team to keep engagement high. 00:24:24 - Tips on Dealing with Microstress, Rob suggests a table in the book with the 14 microstressors and categories of people where they come from, and answering three questions around them. He advises people to think about which stressors have become systemic in their lives and what stress they are creating for others. Rob also mentions the importance of finding groups outside of one's profession that they can be an authentic part of. 00:27:15 - Avoiding Getting into the Minutiae, Rob suggests focusing on getting out of the minutiae by finding groups outside one's profession that one can be an authentic part of. He shares that people who are happiest in this work typically have at least two or three groups outside their profession. 00:28:27 - The Impact of Traumatic Events, When experiencing a traumatic health diagnosis or event, people often reflect on what previously seemed important and realize it was insignificant. Those who maintain dimensionality in their life are better equipped to handle such events. Reflecting on interactions and adapting the

Counterfactual thinking (when we mentally "undo" events that have already happened and imagine different outcomes) can contribute to personal and professional growth when applied constructively. This type of thinking is closely related to prefactual thinking, which involves imagining future scenarios, alternatives, and opportunities. Both types of thinking can aid in regulating behavior, problem-solving, and goal setting, ultimately contributing to improved performance and success in life and business. This episode highlights the interplay between counterfactual and prefactual thinking and how both can foster unique perspectives and considerations that set individuals and businesses apart from the competition. There is immense value in adopting a curious, open-minded approach when engaging in these thought processes, which can ultimately lead to personal development, innovation, and cultivating a successful and resilient mindset. Here's some of what you'll get from this episode: Explore the intriguing effects of counterfactual thinking on emotions and behaviors. Identify the fine line between helpful and detrimental counterfactual thoughts. Learn effective tactics for managing counterfactual thinking in tough situations. Uncover the power of combining counterfactual and prefactual thinking for a winning strategy. Master transforming negativity into productive and positive actions. Show Notes: 00:00:00 - Introduction, Melina Palmer introduces the podcast episode (a refresh from one that originally aired in October 2019) focusing on counterfactual thinking and how it is central to being human. She explains the different types of counterfactuals and the impact they can have on our emotions and way of thinking. 00:05:06 - Types of Counterfactuals, Melina explains the difference between upward and downward counterfactuals, omissions and commissions, rumination and undoing, and usual or extreme events. She encourages listeners to reflect on their own types of counterfactuals and how they have impacted them in the past. 00:09:25 - Target of Counterfactuals, Melina discusses how the target of counterfactuals can impact the thought process. She gives an example of how people tend to focus on themselves even when they are not to blame, which can lead to distress and anxiety. 00:13:32 - Example of Unhealthy Counterfactual Thinking, Melina provides an extreme example of unhealthy counterfactual thinking where a woman dwells over a nonevent at work and becomes distressed and angry, constantly dwelling over what the woman in HR did or didn't do and how she could have acted differently. 00:14:50 - Recap, Melina summarizes the key takeaways from the episode so far and encourages listeners to use counterfactual thinking as a tool for setting and achieving goals, while also being mindful of when it becomes unhealthy and causes distress. She reminds listeners to download the free counterfactual thinking worksheet (and get more resources) in the show notes. 00:14:57 - The Impact of Counterfactual Thinking, Counterfactual thinking can lead to spiraling thoughts and negatively impact interactions. Dwelling on negatives can be harmful and counterproductive. It's essential to focus on the present and not dwell on the past. 00:19:07 - A Study on Counterfactual Thinking, A study on counterfactual thinking found that over half of the respondents were undoing a traumatic event in their minds. The distress level and frequency of undoing did not differ based on whether the item being undone was usual or exceptional; omission or commission. 00:25:31 - Focus on Self, Those who were undoing the event in their minds were more focused on their own actions or the actions of their loved ones than the other driver's behavior, even though the other driver was (typically) at fault. This shows how quickly the brain can compartmentalize and can lead to feelings of regret, guilt, and responsibility. 00:28:54 - Recency of Undoing, The recency of the undoing process (note: this is not the recency of the event) impacted distress levels. Those who were still undoing the event were more distressed than those who had never undone or had undone in the past, but stopped. This suggests that undoing may be a distress-driven cognitive process. 00:31:15 - Changing Focus, The action that people actively undo overwhelmingly changes over time. People may focus on themselves and their actions in a particular circumstance, but the specific action that they focus on can vary. The lesson is to focus on the present and not dwell on the past. 00:31:47 - The Effects of Undoing, Continuously undoing can increase distress levels, and guilt is the only negative emotion uniquely related to undoing. Guilt related to controllable events declines over time, but excessive undoing can perpetuate distress. 00:33:21 - Self Esteem and Counterfactual Thinking, People with low self-esteem may focus on their inadequacies in their counterfactuals, leading to more distress. Highly distre

In this episode of the Brainy Business podcast, host Melina Palmer interviews Carlos Hoyos, a behavioral scientist and content creator from Latin America. They discuss the challenges of creating content in a non-English language and the importance of making behavioral science accessible to a wider audience. Hoyos shares his approach to creating content, including his YouTube channel, Behavioral Pills, and his e-learning platform, which offers one-hour sessions on various behavioral science frameworks. The conversation highlights the need for more diverse voices in the behavioral science community and the opportunities for growth and learning in different regions around the world. Show Notes: [00:42] Welcome Carlos Hoyos, Senior Behavioral Designer at BeWay, and Co-Founder at Kestudio. [02:19] Behavioral science is important everywhere. [03:42] Carlos shares about himself, his background, and the work he does in behavioral science. [05:35] In recent years he has dedicated his whole career to developing his knowledge in terms of behavioral science and design and specifically to find ways to apply it in business. [07:15] Carlos was named Content Person of the Year by Habit Weekly. (Merle van den Akker – last week's guest – and I were both finalists as well – congrats Carlos!) [10:15] There are many companies now that are investing in behavioral science in Latin America. [13:12] He sees himself as a content curator because he shares what other good professionals are doing. [14:46] People love to talk about human behavior. It really connects to people. [16:36] He found that there is so much information out there in English. Instead of being just one more, he decided to focus on Spanish because there is so little in Spanish right now. [19:32] Daring to do the thing no one else has done yet is what helps people to stand out. [22:20] Carlos shares some of the work he is doing with BBVA. They have merged behavioral science into day-to-day decision-making. [24:53] One project they worked on at BBVA was with credit cards. People weren't interested in applying for the credit cards because of a lack of trust – they wanted to change that. [27:34] Experimentation and testing are a must in their projects. [29:20] In 2022, they did more than 130 experiments in different areas of the business and that actually represented an extra income of around 45 million euros in the year. [30:46] There are so many little things where behavioral science can make a very big impact in any type of business all around the world. [32:20] There is plenty of opportunity and room for growth in behavioral science – in the US and around the world. [35:16] The stress on the brain when you are trying to hurry and rush leads to problems that have to be fixed down the line. [37:23] Experimenting and testing every decision you want to make will help you make better decisions now and for the future. [38:42] If you torture the data long enough it will confess to anything. [41:34] Carlo's Behavioral Pills are one-hour e-learning sessions where he explains things concepts he considers basic for a behavioral scientist to know. [43:33] Melina's closing thoughts [45:03] Don't be scared of being first. There are lots of people like you who have done this in their own way or their own language. 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. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. 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 Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! Learn and Support The Brainy Business: Check out and get your copies of Melina's Books. Get the Books Mentioned on (or related to) this Episode: Outsmart Your Brain, by Dan Willingham Good Habits, Bad Habits, by Wendy Wood Predictably Irrational, by Dan Ariely Evolutionary Ideas, by Sam Tatam Friction, by Roger Dooley Connect with Carlos: Carlos Website Carlos on LinkedIn Carlos on YouTube Top Recommended Next Episode: How To Set Up Your Own Experiments (ep 63) Already Heard That One? Try These: Saving Peru's Environment One Nudge At A Time with BE OEFA (ep 195) Habit Weekly: A Discussion With Creator Samuel Salzer (ep 284) Dan Ariely Interview: Discussing Shapa, the Numberless Scale (ep 101) Nudges and Choice Architecture (ep 35) How To Change, an interview Dr. Katy Milkman (ep 151) Evolutionary Ideas with Sam

In this episode of The Brainy Business podcast, host Melina Palmer interviews Samuel Salzer, founder of Habit Weekly, a newsletter that curates the latest in behavioral science research and news. Salzer discusses the importance of creating content that people actually want (imagine that!) and the value of putting good things out into the world. He also shares insights on building habits and behavior change, and how businesses can apply these principles to their marketing and customer engagement strategies. Overall, the episode highlights the power of behavioral science in shaping our daily lives and the importance of staying up-to-date with the latest research and trends. Show Notes: [00:40] Today's episode is a refresh of my conversation with Samuel Salzer, founder of Habit Weekly. [02:06] It is so fun to see how much things have grown at Habit Weekly in these three years. They have a full team of people now, and they've been doing their awards for a few years as well. I was honored to have been a winner in the inaugural edition, and a finalist in multiple categories every year. [03:29] Samuel shares about himself, his background, and how he started working in behavioral science. He has always been an entrepreneur and started his first business at 16. [05:02] He found human decision-making fascinating. [06:44] He wanted to learn more about what we can do to support people in making behavioral changes in their lives. [08:42] For his work he focuses on how to scale behavioral change. [09:56] You are succeeding if you help create value for your users and customers, understand them better, and help find a good solution for their problems. [10:38] Whether we like it or not, behavior is quite complex. We are complex beings living in complex environments. [13:06] Most businesses look at reducing friction in their customer journeys. Sometimes increasing friction is a good idea too. [16:06] We are really good at creating stories and narratives in our minds to support whatever thing we really want to do. [18:28] Just the simple shift of taking the word from reward to consequence makes it feel heavier in a way that can change behavior. [19:39] Each individual choice matters. [20:50] We are often trying to do things that remove a negative effect. [23:17] The concept of "eating the frog" is doing the hard thing first. [25:45] Samuel felt like it was hard to stay up on the content and research in the field so he started sharing links on LinkedIn. [26:53] This eventually evolved into Habit Weekly. It's now a mailing list that sends content related to behavioral design on a weekly basis. [28:27] You know you found something people really want if they are reaching out to you asking you to create a mailing list. It doesn't have to be difficult to start an email list if you understand what drives people. [30:27] His goal is to make sure that anyone interested in applying behavior change has the best and latest insights every week. [35:21] This field of behavioral science is still in the adolescent phase. In the near future, it is going to move into this more mature phase that is more about the process and learning more about applying these concepts in the best way. [37:21] Samuel is really excited about the better understanding in the next few years of how any organization can easily start applying these concepts. [40:17] His superpower or wish would be to see the world through other people's eyes. (Melina would like to be able to speak and read every language fluently.) [40:58] He also loves books and movies. A really good book or movie can help show the world from someone else's perspective. [44:44] Many businesses create content people don't want. If you start from a place of sharing, reciprocity will kick in eventually and people will appreciate what you are doing and what to give back to you one way or another. [46:18] Melina's closing thoughts 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. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. 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 Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! More from The Brainy Business: Get your copies of Melina's award-winning books. Get the Books Mentioned on (or related to) this Episode: Friction, by Roger Dooley What Your Customer Wants and Can't Tell You, by Melina Pa

In today's conversation, I am joined by Dr. Merle van den Akker. Merle is a behavioral scientist who has recently completed a Ph.D. at the Warwick Business School, studying the effect of different payment methods on personal finance management. She decided to leave academia to apply behavioral insights in the real world and has become a behavioral science manager at a financial well-being unit in an Australian bank. She continues to research and apply behavioral science to improve financial services and consumer (financial) well-being. Next to this, Merle is a science communicator, running the blog Money on the Mind, and the MoneyPsychologist TikTok account, where she disseminates insights from the intersection of behavioral science and personal finance. Last, to not leave academia behind fully, Merle also still teaches behavioral science as well as courses on fintech developments at top Australian universities. Merle was also a finalist for Content Person of the Year in the Habit Weekly Awards in 2022 along with myself and many other amazing content creators in the space including next week's guest who won the award last year. In today's conversation, we are talking about personal finance – both for individuals and how it applies to any business. Stress at home can impact performance at work, and there are some ways businesses can be helping their employees feel more comfortable -- and do better work -- if they are thoughtful about personal finances and what is going on in the world around them. Even if your company doesn't believe it is impacted by inflation or the massive layoffs that have been happening recently...think again. Merle and I dig in on how social media and other availability-bias- and herding-fueled messaging is impacting everyone, and what companies can be doing to help their employees to feel more secure and less stressed. Show Notes: [00:42] In today's conversation, I am joined by Dr. Merle van den Akker. Merle is a behavioral scientist who has recently completed a Ph.D. at the Warwick Business School studying the effect of different payment methods on personal finance management. [02:21] Stress at home can impact performance at work and there are some ways businesses can help their employees feel more comfortable and do better work. [04:34] Merle shares about herself, her background, and the work she does. She runs the Money on the Mind blog, where she writes about how behavioral science applies to personal finance. [06:42] Spending on a credit card is incredibly different than spending with cash. [07:37] With contactless payments, people tend to spend a bit more and then they actually have a much worse recall of what they spent. [09:32] Mental accounting is expenditure and research tracking in your head. [11:51] It is important to ask thoughtful questions in business and research. [14:25] You have a mental and a physical account for savings and your credit whether you are in debt or not. [16:54] Behavioral science can contribute positively to the cost of living crisis in major ways. When people act out of fear they don't make great decisions. [18:54] Learned helplessness is a very dangerous state to get into. You need to be able to get into a mindset where you are still able to act. [21:50] Having too much pressure on people's time is impacting their ability to do really good, thoughtful work. [24:28] The present bias is a very inconvenient bias and is something you should be aware of. [27:31] As an employee, it is important to know what would and would not work and ask for that from your employer. An employer should be open and expectant to have these conversations. [30:36] There can be more thoughtful and creative solutions for ways employers can help that don't cost them a lot of money. [32:45] You can help be a solution for customers and employees by having this overall awareness of what is happening in the world and how that is going to be impacting behavior. [34:09] If your brain is in overload the last thing it wants is ambiguity. [35:42] You don't want people to act out of fear because they will make decisions that don't benefit anyone in the long run. That is something we should really try to avoid. [37:53] Social media algorithms give you more of what you show interest in. Something may feel like it is everywhere, when in reality the algorithms are just showing it to you a lot. [39:46] Always take the time in stressful moments to breathe and get out of that hot state to look and see what you can do differently. [41:01] It is a win-win situation to have employees that are not just cowering under an enormous load of stress and fear and as a result being rendered almost nonfunctional. [42:34] Melina's closing thoughts. [43:01] If you focus on helping your people with more aspects of their lives then just what feels immediately relative to your bottom line can have really great impacts financially and otherwise. Thanks for listening. Don't forget to subscribe on Apple Podcasts or

You're likely familiar with accounting, so perhaps you can gather that mental accounting is essentially about how we account for things in our mind. But, you may not realize that it isn't just mental math. This is about how we tend to create separate accounts for things in our minds that feel concrete, but often aren't. When I give examples in this episode today, which originally aired in the summer of 2019, you are going to find yourself saying, "Well, obviously that is how it works!" And then when you realize it doesn't have to be that way…it's kind of mind-blowing, but in a good way. Mental accounting is great in a lot of ways. It helps us to save money and prioritize things that we might have a harder time with if everything was all lumped together. But it doesn't mean it is the ONLY way or even the right way. It might just be the best way our brains are doing it right now, and it is always a good thing when you can know the rules your brain is using to make its decisions as well as that of your employees, peers, customers, and more. So, why are we talking about mental accounting today? It's because this Friday I am joined by Dr. Merle van den Akker, an expert on psychology and personal finances who runs the Money on the Mind blog. When she is here on Friday we discuss how the stress of money (fear of losing a job, concern about inflation, and the like) can impact employees. And, we of course take it a step further to unpack what businesses should know about these topics to better support their employees and why, even if a company thinks this doesn't have anything to do with them…it absolutely does. This kind of stress has a lot of economic impact on an organization, and it doesn't have to be difficult to support employees and achieve that win-win. We specifically talk about mental accounting in the episode, making it the perfect time to refresh it and get you set up for success for Friday! Show Notes: [01:21] Our brains make rules all the time. Sometimes they are really valuable — mental accounting is a great thing in a lot of ways. Sometimes, they aren't necessarily serving us well. [03:21] The concept of mental accounting was introduced by Nobel Prize winner Richard Thaler and is based on a human's illogical approach to value in relative terms instead of looking at it as an absolute. [06:00] Three examples of how mental accounting can impact the decisions we make. This concept is very ingrained in our brains. [08:22] Money is commonly labeled as either: expenses, wealth, and income. [10:48] Much like regular accounting in mental accounting, individuals will book and post any occurring or planned transactions to the mental account. However, small items may not be booked in the same way as a big item would be. As long as it is below a certain amount it doesn't have to hit the mental account. [12:38] We often don't look at dollar bills and change the same. [15:31] Similar to the process of rounding up change at the grocery store, adding a small amount to an already large payment doesn't feel the same as having that payment on its own. This is because of decoupling. [17:07] Vacations are enjoyed more when they are prepaid because it feels free. [19:06] There are times when prepayment is necessary and beneficial for the overall enjoyment of an experience. [22:34] When prepayment comes into play the impact of the payment gets completely wiped off the mental accounting sheet so its impact on the sheet becomes zero. [25:11] Instead, internalize how the brain is wired to make its decisions around mental accounting. [27:49] When it comes to wealth in these sorts of categories people are very influenced by paper gains and losses. [29:26] Where you keep the money mentally or physically matters, but it also matters how you came across the money in question. [30:53] The way you receive the dividend impacts your willingness to spend it. [32:17] While it is easier to give cash than gifts, in many cases when the gift given is something someone really likes or enjoys it can have a greater value than giving cash. [34:08] While losses should be lumped together, gains should be separated out to really feel their value. Don't wrap all the Christmas presents in one box. [35:14] Mental accounting affects more than just money. [37:52] Context is important in the way people react. [39:54] Talking on the phone is more enjoyable when you aren't worried about how much it is going to cost you. [41:57] If you struggle with work-life balance and want to make more time for yourself, your family, or date night, consider how the mental accounts for money were set up. [43:47] Try to take a step back and have perspective on what's a waste of time and how you could better allocate your mental time account. [44:25] Melina's closing thoughts 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. I hope you love everyt

In today's conversation, I am joined by Dr. Dan Willingham, a memory expert with a Ph.D. in Cognitive Psychology from Harvard. Dan's new book Outsmart Your Brain (which we discuss today) will change your life. While the book is catered to K-16 learners (for example, it includes chapters on "how to take notes," "how to listen to a lecture," "how to read hard books," and "how to take tests") trust me when I say this book is for you and everyone you know. It is fascinating and will help you with any presentation you may give or meeting you will be in moving forward. Trust me, you're gonna love this. A little more about Dan: His work has appeared in the Washington Post, The New York Times, and many other publications, and he is the author of several books – his writing has appeared in 18 languages! In 2017 he was appointed by President Obama to serve as a Member of the National Board for Education Sciences. Whether you want to be a better learner yourself or if you have kids (including college students) in your life whom you want to help be successful, this episode and book are for you. I can't wait to dive into this one because there is so much great stuff. Show Notes: [00:43] In today's conversation, I am joined by Dr. Dan Willingham. Dan earned his Ph.D. in Cognitive Psychology from Harvard University in 1990. [03:03] Dan shares about himself, his background, and the work he does. He was trained as a cognitive psychologist. [04:04] He shares his transition from basic researcher to applied researcher. [07:02] Often, we assume people know that thing that we know so we miss key things when presenting. That means they don't get value from your talk. [08:41] There are things we know we should do that we find difficult to implement. Sometimes we really don't know what is optimal to do. We tend to do things in the moment that we feel are working and are not that difficult. (But often, the harder/counterintuitive thing will make a much bigger impact.) [11:16] Does cramming work? Dan says, "kind of." It depends on what your goals are. If you do not care about remembering something in the long term then crowding it all in right before you need to perform is actually fine. [12:50] The only way to ensure that you remember things in the long term is if your learning happens over time rather than all crammed together. [15:42] If you are trying to master a new skill or a new topic and you feel like you need to wait to start until you have more than small bits of time, don't wait! The data shows this is actually optimal for learning and retention. [18:2326] Creating that consistent study or work habit by time and not by task is very important. [21:04] We all procrastinate. It is a natural tendency. [22:37] The key thing is you have to give yourself permission to stop if you want to. [24:26] The night of sleep is important in consolidating the memories that were formed during the day. If you don't get much sleep or you get low-quality sleep you are tampering with the learning that you put so much time into the previous day. [25:40] Your intention or your desire to learn contributes nothing to whether or not you will learn something. There are lots of things we want to remember but don't. [27:26] Memory loves meaning. That is the main way we remember. [29:05] You draw memory out the same way that it went in. [30:53] Memories are going to be queued by thoughts or by things in the environment later. The way you are going to be able to draw memories out most successfully is when the queue is a good match for the way you thought about the memory at the time you were trying to remember it. [32:51] When you are storing something away, think to yourself, "How am I likely later to try and remember this?" and make that part of the way it becomes retrievable. [35:48] How do you organize 94 tips in one book? He chose to sort them by task. It is organized by things you would do that entail learning (how to read hard books, how to take notes, etc). [38:45] When there is a hierarchical organization in speeches you are expected to make connections among the different things that you are hearing. Because it is not a narrative it is difficult to make those connections. [41:45] You want to reframe to highlight what you enjoy instead of what is making you procrastinate. Looking at it in this way helps you overcome that. [44:43] Allocate time to different tasks to help you get to the tasks that you tend to procrastinate on. Do the hard task first. [46:40] It is not that what you are doing now is ineffective. It is that it can be slightly tweaked to be significantly more effective. [48:31] What's the simplest tip in the book? Some data shows that chewing gum helps you to focus for 20 minutes. Give it a try if you like gum! [50:328] Melina's closing thoughts [51:39] In understanding how your own brain is wired to learn as well as others, and then how to "outsmart it" every step of the way is pure gold. Thanks for listening. Don't forget to subscri

Memory is a funny thing. We like to think we have these perfect pictures of what really happened in our minds waiting to be retrieved in pristine condition, but that's not at all how it works. It turns out we have all sorts of biases that, well, bias our memories. And that is important to know in our interactions with other people in life and business. The truth is: you can remember something completely different from someone else, and neither of you has to be wrong. Let me say that again, even if you remember something that is completely different than someone else, it doesn't mean that either of you is wrong. Our brains screen for different information than what someone else might be screening for (focusing illusion and confirmation bias). That subconscious filter is sifting through a lot of stuff, and what mattered to you and what you remember is never the full picture. This episode, which originally came out in early 2019, is a quick run through of a bunch of memory biases (part of the 8-part "All the Biases" series). So, why was memory important to refresh today? It is because of the guest I am delighted to introduce you to this coming Friday, Dan Willingham, a memory expert whose book Outsmart Your Brain will change your life (and that of every learner you know). Outsmart Your Brain has chapters on "how to take notes," "how to listen to a lecture," "how to read hard books," "how to take tests," and more. It is fascinating and will help you with any presentation you may give or meeting you will be in moving forward. Trust me, you're gonna love that conversation and Dan's book, so be sure to subscribe to The Brainy Business podcast now (before you forget). (Haha, memory joke!) Show Notes: [00:39] Today's episode is all about memory biases. Memory is a funny thing. [01:16] You can remember something completely different from someone else, and neither of you has to be wrong. [03:41] Today's episode is going to be divided into three sections: general memory stuff, false memories, and tips on how you can use these biases to help you remember things better. [04:45] Our memories are basically inaccurate renditions our brains tell us and every time we access them we change them a little. So the more you think about something the less and less it is like the original version. (Frustrating, but true.) [06:26] Your customers, coworkers, friends, and family all have these same biases, so hopefully learning more about all your brains will help in all sorts of interactions in the future. [07:20] You are the hero of your own story and no one will remember your story as well as you do (but of course even you don't remember your story correctly). The emotions tied to bad memories will fade quicker than the emotions tied to positive events. [10:08] A few well planned surprise and delight moments throughout a relationship can create good peaks (and remember the most recent end holds the most weight). [12:38] A false memory is when we accidentally think something we imagined really happened and misattribute it as a memory. [14:15] Our brains are powerful, but they are easily manipulated too. [15:39] The opposite of a false memory is called cryptomnesia when a real memory is mistaken as imagination because there is not a proper experience of it being a memory. [17:21] We do tend to remember the efforts we had to put in as much higher than they were and toils more difficult as they were in reality. [19:12] Don't feel like you need to remember everything about everything. Instead, remember important things that can't be easily looked up, and don't gunk up your brain with all the trivial information. [20:45] If you want to be able to remember things better and with easier recall, it is best to have repeated exposure over a long span of time instead of trying to cram it all in at the last minute. [22:14] Try to commit things to memory in the context they belong to or multiple contexts so they are less isolated. The mood we are in is also tied to the context. [24:13] If you want to remember things, write them down. [25:51] Visual images are often recalled by our visual subconscious faster and easier than words because of the picture superiority effect. [27:38] We all put so much effort into making things as easy as possible to read and process but in reality due to processing difficulty, stuff that takes longer to read and process is easier to remember. [28:43] We are provided with lists of things all the time and the way those things are presented absolutely impacts memory. [30:15] Due to the next in line effect you are less likely to remember the words people spoke just before you because you were distracted with what you wanted to say. Being a good listener is key to building relationships in life and business. [31:40] Melina's closing thoughts 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. I ho

In today's conversation, I am joined by McDonald's Lauren Kemp and Stephen Springfield from the Aspen Center for Consumer Science. Last fall I saw them give a talk at IIEX Behavior on how they used behavioral science to create an "irrational" loyalty program at Mcdonald's. It was instantly clear they had to be on the show to talk about this project, its insights, and what you can learn from it. It is such a great case study showing how real people inside organizations (and in this case, working with a great consultant), can create a program that infuses behavioral insights in a smart way -- that is often counterintuitive – to find a win-win for the company and its customers. You'll also hear tips from Lauren about how she did her literature review and lots of other great insights. And, do know that while we joke about not loving the term "irrational" as it is popularly used in behavioral science, if there was ever a program that proved a lot of the choices people make aren't exactly rational this would be it. You'll see what I mean as they dig in on the story in the episode… Show Notes: [00:46] In today's conversation, I am joined by Lauren Kemp and Stephen Springfield, whom I first saw while they were giving a presentation at Greenbook's IIEX Behavior last fall. [03:44] Lauren shares about herself and her background. She works in consumer insights at McDonald's on the US team. [04:41] Stephen shares about himself and his background. Stephen is the Founder and Principal at Aspen Center for Consumer Science. [06:43] Novelty and the magic of the irrational attracted Stephen to behavioral science and behavioral economics. [07:35] Behavioral science isn't really about the irrational and the crazy cool stuff. It is about the scientific process applied to understanding behavior. [10:35] Irrationality is where all the profit is. [13:05] Lauren started her career with an internship at Brain Juicer. They were pioneers in the behavioral economic space. McDonald's was one of her main clients there. [15:17] McDonald's global team created the loyalty program so the individual markets had some space to make the program work in their specific market. [17:17] She started with a literature review since loyalty programs were not new to the industry. She wanted to learn what was most important for a loyalty program and how they could design theirs to be successful. [19:45] Top tips for doing your own literature review? Definitely start by bookmarking Google Scholar. [22:11] The program needed to entice customers to engage with the program. They wanted it to be consumer centric. [24:16] They knew it was very important for the program to be transparent enough and easy to understand. Consumers don't like it when they feel they are being tricked or it is clouded. Transparency is so huge in our culture today. [25:57] They found that the value of a loyalty program is engagement with the program itself – not the reward that you get. The reward you get is transactional. [28:27] Lauren spent a week or two on her literature review process and Stephen's team did some additional research. [30:39] It is important to invest the time in research, but it probably doesn't need to take as long as you think. [33:21] There is an aspect of irrationality and that is where the profit is. You have to find a way to offer something of value that is not completely transactional. [36:23] They wanted to find which items would drive trips because the point of the loyalty program is to get to people to visit more often. [37:58] They tested five different point levels from 1 point to 10,000 points. They found that 100 points per dollar was easy and worked best. [40:03] The goal is to get somebody to purchase something now with an eye toward achieving something later. Mental budgeting and being able to do the math towards a simple reward was a game changer. [43:05] They continued coming back to the goal and objective: getting consumers to come to McDonald's because they had rewards, and they want to accumulate more rewards, and at some point they would like to redeem those rewards. [44:56] They found there was some linearity with the value of the item and the trip driving behavior, but there were also outliers drove trips. [46:46] If there are products on the loyalty menu that are a lower cost to produce that would still drive engagement from a customer perspective and trips are a huge win. [49:16] Consumers can't tell you what they would do and why they would do it. [51:35] Key Insight: The thing that drives that behavior doesn't have to be the most expensive thing. [53:18] Science isn't really interested as much in truth as things that are reliably predictive. [56:07] Melina's closing thoughts [57:18] It doesn't need to take eons to incorporate good behavioral science research into your projects. 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

As a Seattle girl, I love me some Starbucks so it is fun to refresh this episode which was one of the first (and most popular) behavioral economics analysis episodes I've ever done. It is currently the 11th most downloaded episode of the show of all time, and with 277 episodes to date, that is a pretty big deal! If you aren't familiar with this format, it is an episode where I talk about a well-known company and their practices to share what concepts from behavioral economics and behavioral science in their work so you can see what you might want to emulate and what isn't a good fit for you in your company. So, why this episode from late 2019, and why now? Well, it is because of the loyalty program and this coming Friday's episode where I am joined by Lauren Kemp and Stephen Springfield to talk about how they created an "irrational" loyalty program at McDonald's during the pandemic. It is a fascinating story with lots of insights for you to learn. Today, I chose to share an episode that showcased another loyalty program doing a lot of smart things that are different from the traditional punch card approach to loyalty. (And, good news, there is a lot more to this episode that I know you're gonna love.) So grab a coffee, and settle in… Show Notes: [00:40] Today's episode is a behavioral economics analysis of Starbucks. [04:01] In this episode we are going to dig into their Star Rewards program, featured drinks, and products, the coveted red cups, their personality, overall brand choices, their logo, locations, social media, and pricing. [04:23] Without the original brand and pricing, Starbucks would be just another coffee shop. [05:57] One of the big aspects Starbucks had to overcome was the pricing anchor. [08:41] Howard Schultz and Starbucks took a step back. They got out of their own way and created a new category which ended up changing the conversation about coffee around the world. Asking good questions can help you get there. [10:19] Price is never about the price. It is all about all the things that come before the price that matters more than the price itself. [12:02] The first big drink Starbucks made famous was the Frappuccino. There is a lot of effort that goes into turning these things into multibillion dollar industries. This created a brand within a brand. [14:27] Most everyone knows that the original PSL started at Starbucks. Pumpkin spice lattes are one of the seasonal drinks Starbucks brings out each year. They are only available for a few weeks or months until they are gone. This is scarcity in action. [17:39] Starbucks changed the game. They created something different and managed to hold a big piece of the market even when imitators arose in every area. [18:28] Starbucks is constantly testing and they are not afraid to have something really popular only available sometimes. [19:24] Making and keeping a tradition alive is something Starbucks does amazingly well. The red cup first debuted in the 1997 holiday season and has been a staple ever since. [20:19] When you become a lifestyle brand you bear the responsibility of being a big part of peoples' lives. Your choices reflect theirs and when you do something out of character, they will tell you about it. This is both good and bad. [22:30] Consistency is key and until you define what you are and are not you can't be whatever it is consistently. When you have your own filters and know what you are about you can shout them from the rooftops and your tribe will resonate with them. [24:49] The value of a brand is more than money and bottom-line sales. It is about the overall experience with the brand at its core. [27:13] Find what people are already talking about and loving and see how you can be part of that conversation. [28:39] The Star Rewards model is built to create habits for users and increase visits. It also encourages users to try new items and has limited-time offers, and customized preferences with an opportunity to get bonus stars. [29:48] Being willing to test, experiment, and learn is something Starbucks does really well. Essentially Star Rewards is a huge testing ground of live field environments. [32:15] Star Rewards is super easy and built-in. You have loss aversion and reciprocity built into the promotions. [33:50] Star Rewards is a smart balance of loss aversion, scarcity, relativity, habits and more all executed through a series of experiments to see what is bringing the most value to the company and its customers. [34:59] Scarcity is a powerful tool when used correctly, especially when properly paired with loss aversion to help people choose your product. [36:31] Melina's closing thoughts [38:39] There is a lot of value and loyalty that comes from delightful, unexpected experiences and a less formal program is perfect for that. 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. I hope you love ever

In today's conversation, I am joined by John Sills. John is Managing Partner at the customer-led growth company, The Foundation. He's been in front-line teams delivering the experience, innovation teams designing the propositions, and global HQ teams creating the strategy. He's been a bank manager during the financial crisis (which he says was not fun), launched a mobile app to millions of people (very fun), and regularly visits strangers' houses to ask very personal questions (incredible fun). He now works with companies across industries and around the world, and before joining The Foundation spent twelve years at HSBC, latterly as Head of Customer Innovation. He regularly writes on Customer Experience and Innovation, and his first book, The Human Experience, just came out and is what we are discussing today. This was a really fun book, and it is chock-full of real life experiences from businesses (both good and bad) that you can learn from. John keeps it light, even when teaching some really important stuff, and helps us to see how we can all benefit from remembering that we are, at the end of the day, humans (and so are our employees and customers). So let's just bring a bit more human-ness back into our companies! Show Notes: [00:43] In today's conversation, I am joined by John Sills. John is the managing partner at the customer lead growth company, The Foundation. [03:24] John shares himself and his background. [05:56] You really need to want to make things better for customers. [08:41] You are closer to your colleagues, business, products, and services, but your customers are really important. We often write things that make sense to us but not to our customers. [11:22] Factfulness is all about helping us challenge our perspectives of the world. It is easy for us to think we are the center of the world. [14:01] Nearly all of the research we have is very inside out. It is all about the company and almost none of it is about the customer and how we can be useful to them. [16:10] Companies should stay close to what matters most to their customers and their lives and then work out how to be useful to them. [19:42] As a CEO if you don't go and experience the other jobs in your company yourself then you never get the visceral connection to what is really mattering for your customers. [23:07] A real sense of responsibility and ownership for the customer is missing in many organizations. [24:09] John shares a wonderful customer experience he had with Swiss Rails. [27:27] Bad customer experiences are really expensive to provide. [29:35] If you give a good experience in the first place your customers will contact you less and everything will be more efficient. [30:23] Failure demand is the demand that is put on your service or organization as a result of failures you made elsewhere in your customer experience or service. [32:50] As humans we are truly loyal to very few things. Very rarely are we truly loyal to companies. [34:02] If you as an organization stay more useful than your competitors then people will stay with you. [35:09] Organizations spend very little time keeping the experience great and essentially ignore endings or make it difficult for customers to leave. [37:35] If as the leaders in an organization, you really understand what matters to people in their lives then your singular job is to understand how you can be most useful to them in their life. [38:30] What is at the heart of great organizations is really understanding their customers and really staying useful to them. [39:55] If you can retain that humanness in your organization and let your people be human then they will understand customers and create things that are useful. [41:43] No one has time to stop and think and it is really dangerous. It feels like it is really important to check things off a to-do list instead of really getting things done well. [43:18] When you don't have the time to step back, bad customer experience abounds. [44:05] When you try to make it look like you know the person you are talking to and then you miss it feels a lot more painful and annoying than if you didn't ask enough. [46:43] Over the last 20 years organizations have done a great job at trying to perfect the functional customer experience, but they have done that at the expense of the emotional and human experience. [48:27] Just be the human you have spent all your life training to be. Speak in a human way, think about what it is like to be on the other end, and take time to understand other people. [50:00] Treat people the way you want your gran to be treated and make your mum proud of the decisions you make. [51:30] Melina's closing thoughts [52:28] If you consider the extreme costs when you have to fix things it is often more cost effective to do it right and more human the first time. 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 ab

Today's episode is all about surprise and delight. Hopefully, the title concept of this episode already has you in a happy and delightful mood (that's priming for you!) and you are ready for some fun. I love thinking about experiences and incorporating fun, delightful moments. It can be with customers or employees and in totally unexpected places (that is the best strategy) like an error page of a website or the legaleze people agree to. Little moments of thoughtfulness are my favorite, and they help us to have fun at work (we should!) as well as help our customers and employees to enjoy interacting with us (which will make them want to do it more). And, while I don't need much of an excuse to talk about surprise and delight, there is a specific reason I chose to refresh this episode from 2019 today, and that is as a lead into this coming Friday's conversation with John Sills on his new book The Human Experience. His book is all about creating better experiences. He features brands that are already doing an amazing job and how companies can make big leaps by remembering their humanness. Great experiences shouldn't be surprising, but sadly they are as too often the experiences with brands are more of a pain than a pleasure. But it doesn't have to be this way! This episode will share why delight is so critical to companies, why surprise matters, what it all has to do with loyalty and profitability and so much more. It's a fun one and I can't wait to share it with you Friday (if you aren't already subscribed to the podcast, take a moment to do so now). And, in the meantime, let's talk about surprise and delight. Show Notes: [00:38] Today's episode is all about surprise and delight. [02:12] Great experiences shouldn't be surprising, but sadly they are as too often the experiences with brands are more of a pain than a pleasure. [04:18] If a customer has an expectation they will either be satisfied or dissatisfied by the level at which that expectation is met or not. Expectation can't lead to delight. [05:15] Ideally you are living in the satisfied territory most of the time with a few delights popping up here and there. Delighting customers takes extra work and it can be expensive, though it doesn't have to be. [05:38] Delight is much more likely to drive loyalty than mere satisfaction. [07:31] It is important to not get stuck in the traps of false loyalty. [10:13] A 5% increase in loyalty can increase your profit by as much as 85%. [11:03] Loyalty is huge for businesses and delight is a big key to earning it. Loyalty isn't the only awesome thing to come out of delighting customers. [11:57] The biggest issue is that there is no standard scale for measuring delight. [14:14] Customers can't tell you what would cause them to be delighted because they have to be surprised. They can't be expecting it or it isn't going to hit the delight scale. [17:46] Finding someone who is influential and loves your brand and then finding a way to work with them can both delight that person and their following. [19:39] If your delights become standard then they become expected. Surprise is key to delight. [22:33] Having a great first encounter helps set the relationship off on a good start. Having a dose of delight every now and then keeps customers happy. [24:09] Empowering employees to help customers and go the extra mile can make a big difference in loyalty scores and profitability. [26:02] Sometimes the most delightful "WoW" moments happen in the blink of an eye. If employees are not empowered and need to cross layers of approval these moments could be lost forever. [28:27] In other businesses this could be as simple as changing the radio station on a loaner car to match the customer's vehicle when it is brought in for repairs, or knowing when a client comes to your office for a meeting drinks chai tea lattes and having one waiting on them when they arrive. Little things can make a big difference and delight your customers. [30:01] Businesses always need to be watching the market to see what the status quo is and how expectations have changed to keep up with delight. [32:33] Melina shares one of her favorite examples of surprise and delight. [34:35] There are countless other ways your company can implement surprise and delight for your customers. [36:34] Listen to customers to understand what's important to them. [38:08] Delight is not something you do one off and hope for the best. It requires time and strategy, but it is absolutely worth it. When you give a little bit to people often they want to give back. [40:45] Don't let herding make you feel like you have to send stuff at the same time as everyone else. That is precisely why you should send something at another time because no one else is. [41:37] Melina's closing thoughts [43:41] It is important to take a step back and look around and disassociate from the current experience. Working with a consultant can be very helpful to bring fresh eyes to the situation. Thanks for l

In today's conversation, I am joined by Richard Shotton. His first book, The Choice Factory, is a best-selling book on how to apply findings from behavioral science to advertising. His new book, The Illusion of Choice: 16 ½ Psychological Biases that Influence Why We Buy, is a phenomenal add to what he has already contributed to the field of behavioral science. This book (and conversation!) are both full of great examples from traditional academic research and from practical application. And, one of my favorite things that Richard does is take research and recreate it. Sometimes it replicates (and does even better than expected) and sometimes it doesn't – whatever the results, they are shared and there are learnings for everyone involved. And, of course, that includes you. Does precision matter? Should you speak in abstract or concrete terms? Tune in and get ready for these amazing lessons and many more… Show Notes: [00:43] In today's conversation, I am joined by Richard Shotton. Richard is the author of The Choice Factory, a best-selling book on how to apply behavioral science to advertising. [02:42] Richard shares himself, his background, and the work he does in behavioral science. [04:06] There are thousands of biases. He covers 25 in The Choice Factory. His new book covers 16 and ½ more. (The half chapter is around the power of precision.) [06:51] Precision is powerful. Generally if someone knows the subject they speak in precision, if not they speak in generalities. [09:30] The precise price tends to be seen as lower than rounded ones. [11:52] If you want to change behavior, remove friction. If you want to boost appreciation of your product, you might want to add some friction. [13:10] The importance of framing the question is key if you are going to use behavioral science practically. [15:42] You have this huge swing in memorability based on whether terms are concrete or abstract. If we can picture a term it becomes very sticky if not it becomes forgettable. [18:02] Increasingly brands talk in abstract terms. It is ineffective to use that language. If you want to communicate one of those abstract objectives you have to translate it into more concrete terminology. [20:43] Academics sometimes make behavioral science more complex than it has to be. Reading modern academic papers is a chore. [22:41] The evidence shows that if you communicate simply you come across as more prestigious and more intelligent. [25:50] People were twice as likely to remember the rhyming than the non rhyming phrases. Alliterating phrases have a boost of believability and memorability. [28:06] We have to make sure that what we do is what our clients want us to do rather than worrying about the kudos that we as individuals get. [30:19] The cafe had a problem that people didn't want to go on a Monday. So if you go on Monday you get to roll the brass dice. If you roll a six everything you have eaten is free. (Love this!) [33:27] If you know that this is the thing on Monday, everyone is going to order a little bit more because they might get it all for free. [36:01] People are not only interested in maximizing the financial benefit of the situation. They also wanted to know that they are being treated well and not being taken advantage of. [38:35] Questions are so important. Questions can give people a pause for thought and influence them more subtly. [41:12] Professionals are just as influenced as consumers with the vast majority of biases. The only difference is they are even more loathe to admit it. [42:43] Podcasts and books are a wonderful way of quickly understanding lots of different experiments. The ones you think are most interesting are worth finding the original paper and exploring further. [44:53] Melina's closing thoughts 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. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. 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 Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! Learn and Support The Brainy Business: Check out and get your copies of Melina's Books. Get the Books Mentioned on (or related to) this Episode: The Choice Factory, by Richard Shotton The illusion of Choice, by Richard Shotton Alchemy, by Rory Sutherland Friction, by Roger Dooley Sludge, by Cass Sunstein Connect with Richard: Richard's Website R

Today I welcome Roger Dooley to The Brainy Business podcast for a refresh of our conversation about his book Friction. Featuring this discussion was inspired by Richard Shotton's new book The Illusion of Choice, which has one chapter about "making it easy" and then another on "making it difficult" (and you'll hear all about it on Friday). This perfectly aligns with Roger's book, Friction, which is all about understanding the psychology of friction and how it can be used to optimize customer experiences. That made it the perfect refresh candidate for this week! While reducing friction is often best and what most businesses need, sometimes there is also value in adding friction in the right places. For example, in What Your Employees Need and Can't Tell You, I suggest introducing a 30 minute waiting period before sending emails can help to avoid mistakes. As you listen today and think about Friction, consider your own experiences — where can they be easier? Where should they be more difficult? I know that seems a bit counterintuitive now, but some thoughtful friction is really valuable in the right places. Listen in to learn how you can use friction in your own business. Show Notes: [00:39] Today's episode is all about friction, specifically, a refresh of the conversation I had with Roger Dooley on his book Friction way back in November 2019. [01:44] As you listen today and think about friction, consider your own experiences — where can they be easier? Where should they be more difficult? [04:04] The cover of Roger's book, Friction, intentionally had a coarse / gritty texture. It was meant to convey a sense of friction. (Priming!) [05:35] Roger shares about himself, his background, and the work he does. [07:40] The interaction of neuroscience, behavioral science, and business has always been fascinating to him. His blogging, podcast, and books have given him a chance to explore that and simplify it for people in business. [09:22] There has been an increase in business interest in behavioral science. [11:46] Change is hard, especially when humans are involved. [12:57] 95% of the time businesses have too much friction in their processes. [13:49] There are times when adding friction helps. In general, it is best to eliminate it. Amazon is a prime example of that. [16:27] Friction is an unnecessary effort to complete a task. [18:29] Amazon makes it so that 99% of the time or more you are simply using the one-click button to ship a product to your home address or office address. That makes it a low-risk transaction. [21:46] People don't look at the cost of the processes they create. When looking at the total time, cost, and effort compared to the amount you would lose, there's no comparison. [23:29] Where there is high trust there is low friction. [25:08] Often we create processes that are designed to make things easier but they don't really work that way. [27:51] How many people are going to be affected by this and how can we make things easier? [30:08] In general, if you are trying to maximize leads or sales, making the process as simple as possible is the way to go. [33:08] By giving them that "out" you relieve the pressure and they are more comfortable complying with the request. [35:54] Buffer took all the friction out of scheduling social media. They made it simple to get started. [38:34] Rather than seemingly correct the person and imply that they didn't work at it hard enough they avoid the word "actually". [40:46] Loyal customers are better and more valuable than new customers. Low-effort experiences drive loyalty. [42:38] They are comparing you against their best, lowest effort customer experiences. [43:57] You are endangering the loyalty of all those customers you can not handle in that instantaneous and efficient manner. [46:54] Sometimes eliminating useless parts of the process is the best way. [48:34] As you look to decrease friction you will start to notice it all around you. [50:27] Melina's closing thoughts [52:41] Remember, you are a human doing business with humans inside your company and with your customers — trust and humanness and a reduction in friction can go a long way in building an amazing 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. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. 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 Join the BE Thoughtful Revolution – o

In today's conversation, I am joined by Dr. Uri Gneezy. Uri's research focus is on putting behavioral economics to work in the real world, where theory can meet application. He is looking for basic research as well as more applied approaches to topics like incentives-based interventions to increase good habits and decrease bad ones, Pay-What-You-Want pricing, and the detrimental effects of small and large incentives. In addition to the traditional laboratory and field studies, he currently works with several firms conducting experiments which use basic findings from behavioral economics to help companies achieve their traditional goals in nontraditional ways. You may be familiar with Uri's name because he coauthored the wildly popular book, The Why Axis with John List, who was on the show last year talking about his book The Voltage Effect. I have a feeling you're going to really enjoy this conversation as it is about a topic people in business are thinking, talking and asking about all the time: incentives. Most specifically, Uri talks about what happens when we mix our messages (it happens a lot more often than you realize) and how that impacts behavior. There are tons of fascinating and practical examples in the book, and we will talk about a few of them today in the episode. Show Notes: [00:42] In today's conversation, I am joined by Dr. Uri Gneezy. Uri's research puts behavioral economics to work in the real world where theory can meet applications. [03:15] Uri shares his background and the work he does in behavioral science. He is a behavioral economist and most of his work is around how incentives really work and how they can change the world. [05:19] When you give the incentives it is not just the money, reward, or recognition that you give, you are also sending a message and telling a story. If you don't really understand how the incentive can shape or change the story you might send the wrong message. [07:03] Incentives are not good, wrong, or bad. It really depends on how you use them. [09:25] By changing the incentives from money to an item like a mug or pen you change the message that supports the signal that you want to send. [11:45] Uri shares about research around donating blood. [14:01] In the late '90s hybrid cars started to pop up. Toyota won the market with the signal they sent. [16:39] Different incentives work on different people. The incentives don't have to apply to everyone. [18:25] The role of incentives should be to push the story in the direction you want. Incentives are going to change the story. [21:27] Quality is much harder to control than value and sometimes it is subjective. How do you incentivize without damaging the quality? [24:30] We really need to be careful about the incentives we give. [27:00] If we want innovation we have to make sure we don't punish failure. [29:59] If you have an incentive in place, try to think about it and see if it really sends the message that you want to send. [30:51] The fact that you tried incentives and they didn't work doesn't mean that incentives don't work. It means that what you tried didn't work and it is time to try something else. [33:26] You need ways to measure your incentives and how they are working. [36:00] He decided to add cartoons to his book because they deliver the message better than just reading a long description and it makes it fun and less boring. [38:48] The Coca-Cola story is a very good example of how the framing of the incentive can give a completely different experience. [40:26] Not all incentives are created equal and you can understand more about them and predict how they will work if you understand the message they are sending. [41:55] Our brains have mental accounts. [44:30] If you find out what your clients care about you can use that to create your incentives. [46:51] The amount of money really sends a signal but gifts send a very different signal and meaning. [49:36] Make incentives simple. If you have many incentives, consolidate them. Make sure you align what you do with the message you want to give. [50:52] Melina's closing thoughts 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. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. 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 Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! Learn and S

Today's episode is all about iNcentives, specifically as they pertain to the concept of NUDGES. This episode first aired as part of a 7-part series I did on NUDGES back in 2019. Why seven parts? Well, "NUDGES" is an acronym for the six types of nudges as introduced by Thaler and Sunstein: iNcentives (which is a bit of a fudge to make it work, but we all forgive them), Understand Mapping, Defaults, Give Feedback, Expect Error and Structuring Complex Choices. That original series included one episode on each, plus an introductory episode into what nudges and choice architecture are to kick things off - so there you have it: seven episodes. This episode on incentives is being refreshed today to help get your brain buzzing on the idea before the wonderful Dr. Uri Gneezy is here on Friday to share about his new book (which just came out today) called Mixed Signals: How Incentives Really Work. It is all about what happens when we mix up our incentives so things don't work as intended, and what we can do to correct those errors before they happen. Digging in on nudging incentives as it pertains to behavioral economics felt like the perfect way to get you ready and in the right mindset for that episode coming out on Friday. (If you haven't already subscribed to the podcast, take a moment to do so now!) Show Notes: [00:38] Today's episode is all about iNcentives, specifically as they pertain to the concept of NUDGES. This episode first aired as part of a 7-part series I did on NUDGES back in 2019. [03:20] We are inundated with choices in our lives and because our brains are lazy we don't put in all the effort required to make the best decision every time. Well structured choice architecture can influence the way someone makes a decision and the choice they make. [04:37] Proper incentives can help encourage sales when you understand how they work. [05:11] Good choice architects understand how to structure the nudges and architecture to do what is best for their business. [06:43] Melina's example - air conditioning! [09:02] In general with air conditioning, it may feel like there isn't really a choice to be had. It looks pretty easy on the surface... [10:30] While air conditioning seems like a simple choice there were actually a lot of variables to be considered. [13:05] Consider who pays, who chooses, who uses, and who profits. [14:06] What happens when there are conflicting incentives? That is where we can really run into problems. [15:47] "Do you want the wi-fi enabled one?" [19:11] Look at how you can align the incentives to find the win-win-win scenario. [21:45] When all you look at is the cost it is easy to base your pricing off of that – but that isn't the best way. [23:52] Salience (or saying something is salient) is the way an item stands out from other items. [25:19] Our human brains have a hard time understanding value and cost over time. [27:03] Breaking down a large payment by year, month, week, or even day can make it a choice easier (or harder!) to make. Context matters. [29:43] Being in sales is basically being a full time choice architect. It is the burden of a salesperson and company to structure choices in a way that customers can quickly understand the value and make a choice. [32:02] Paying for the car is removed from the experience of you using and driving it. [34:00] Think about what you want to bring your customers' attention to (versus what would be a negative experience if you brought their attention to it). [36:23] Points, foreign currency, and tokens are not the same in our mind as "real" money. [38:04] It is important to consider the questions of who uses, who choses, who pays, who profits. [40:44] Surge pricing may seem like a way to nudge people into using less energy, but because this isn't salient in the moment it doesn't do as much as it could. Here's something else that might work better… [41:55] The last example of competing incentives is the US healthcare system. [44:20] Improvements can always be made. [46:30] Melina's closing thoughts [46:35] I find incentives fascinating because there are so many layers to them. It is so important to look at the ripples of choices and incentives, all those little facets that may not come to mind but can actually be really really important when decisions are made. 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. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let's connect: [email protected] The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy

Today, I am joined by Dr. Mindy Weinstein. Mindy is the founder and CEO of Market MindShift and was named one of the top women in digital marketing globally by her peers. She is also a global speaker, trainer, and digital marketing strategist who has worked with and trained companies of all sizes, including Facebook, The Weather Channel, Rosetta Stone, World Fuel Services, Investor's Business Daily, HBO, Fandango, Telemundo, LL Bean, Cisco, Transamerica, and Sportsman's Guide. Other digital marketing agencies come to Mindy to learn the latest trends, concepts, and methodologies. She teaches and leads marketing courses at Columbia Business School, The Wharton School at the University of Pennsylvania, Grand Canyon University, and the University of Denver. Getting introduced to Mindy was fascinating timing. A client asked if there was a book specifically about choosing the right type of scarcity tactics and how to apply them in her business. I let her know there wasn't a perfect fit and recommended What Your Customer Wants and Can't Tell You, as a great place to start. Later that day, I got a LinkedIn message from Brian Ahearn, introducing me to Mindy, who had just published her book, The Power of Scarcity: Leveraging Urgency and Demand to Influence Customer Decisions. And, let me tell you...everyone in business needs to read this. It is so valuable and such a great resource for everyone regardless of industry. Listen in to get some amazing insights on applying scarcity in your business! Show Notes: [00:43] In today's conversation, I am joined by Dr. Mindy Weinstein. Mindy is the founder and CEO of Market Mindshift and was named one of the top women in digital marketing globally by her peers. [02:02] She has a Ph.D. in general psychology with an emphasis on technology and is the author of The Power of Scarcity. [03:07] Everyone in business needs to read this book. It is so valuable and such a great resource for everyone regardless of industry. [04:57] Mindy shares about herself, her background, and the work she does. She has been a marketer for the last two decades. [06:07] As she was digging into all the factors, she realized that scarcity seemed to have the greatest power. It is also one of those factors that have been hardwired into our brain which dates back to our early ancestors. [08:39] "Obsession is a classic side effect of scarcity." [09:24] Mindy shares how scarcity affected her family on their visit to Disney World. [12:06] The Star Wars ride was in high demand and it was difficult to get on. When you are faced with something like that, it becomes urgent and an obsession for your brain. [14:52] Even though we know scarcity works, it can be really challenging to implement in business. [15:08] Scarcity is something you can implement and it always needs to be genuine. If it is authentic and something is truly scarce, why not communicate it? [15:42] As a small business a lot of times it is just your wording that makes a difference. Knowing how to word certain things makes a big difference. [17:22] One of the keys is not being afraid of running out of stock and instead making that an asset to you. Letting customers know items have been restocked triggers demand related scarcity. [19:31] Businesses can show the "best sellers" or "most popular" packages or most popular items that people buy. [20:28] There is a lot you can do from a business and small business standpoint that isn't going to break the bank. [22:14] Luxury goods strive with supply related scarcity when there is only a certain amount of units. [24:47] When you are looking at the scarcity tactic you can still be a large retailer that is making a lot of money and having a lot of customers but be more focused and making sure that the things where you are advertising are going to be working for you instead of being a waste. [26:22] Time related scarcity is any kind of time restrictions like flash sales, coupons, or limited time offers or products. Demand related is where scarcity exists because of high demand. [28:30] Pricing isn't about price. All the stuff that happens before the price matters. [29:10] If there is only so much of something to go around and we are looking at demand you feel like you are in competition. [31:18] Supply related scarcity could be a shortage or an intentional restriction on supply. Supply related scarcity speaks to people that have a need for uniqueness. [33:11] The final type of scarcity is limited edition which is any variation on the original. [35:44] Social media fuels so much of what we know and see about scarcity because words spread really quickly. [38:38] "If you have to make an extra effort to obtain the item, that item has just become more attractive." [39:11] If we are told we can't have something or it is not very simple for us to get it then we start to really think about it and want it more. [40:34] As we think about all these different types of scarcity, be careful about continuing to do the same thing

Today's episode is all about scarcity. This is a term you are familiar with, but I am willing to bet you aren't using it in all the ways it can be leveraged in your life and business. The term gets thrown around a lot and people know some of how it works, but the nuance is so so so much more than you can imagine. This refreshed episode, which originally aired in the fall of 2018, will introduce you to the depth that this topic can have to set you up for this Friday's episode with Mindy Weinstein, author of the book The Power of Scarcity which will absolutely blow your mind. It is so good. Within the book, she includes so much depth and nuance in a way I have never heard anyone else talk about scarcity. It's fascinating. Today is a primer to expand your thoughts about scarcity in a way that will get you ready to continue your learning when that episode comes out on Friday. As you listen, reflect upon times in your own life where you have been pulled in by scarcity, and where you can incorporate it more into your business. Show Notes: [00:39] Today's episode is all about scarcity. This is a term you are familiar with, but I am willing to bet you aren't using it in all the ways it can be leveraged in your life and business. [02:15] In traditional economics, scarcity occurs when an item has limited availability but unlimited desire for that item. This could include natural resources like oil and water or more abstract concepts like time. [02:55] Studies have proven that we see things as more valuable when they are less readily available. [05:55] Scarcity and value are closely tied together. Our crazy brains think less equals more…even when it is kinda weird. When something is scarce it triggers our loss aversion because we don't want to miss out on the opportunity. [08:13] Scarcity can only take effect when items are truly limited. This means not everyone gets one. [10:49] Scarce items can take on a life of their own. [11:37] Scarcity can create a cult following, which means other people do the marketing for you. This makes the brand bigger than anything you can do on your own. [14:57] These examples from Starbucks and Disney are a combination of scarcity and availability. This is essentially capitalizing on something popular and becoming part of the craze. [15:26] If you are going to take a shot at incorporating scarcity, know that not everything will cause an uproar of epic proportions. Sometimes there will be duds and that is ok. The question is what did you learn from them for next time? [16:50] There are some words you can use to trigger scarcity in the brain of your consumer, including: limited time, extended, custom, handcrafted, one of a kind, closeout sales, everything must go, and last chance. These terms can be added to more than products, extending into services as well. [18:27] If you do a promotion or discount, make sure it is short term and remind people when it ends. You can also limit the quantity available and stick with it. [20:16] Contests and giveaways can work really well for you, but there are a lot of rules and you need to make sure you play the game. [21:37] It is easy to sound like a cheesy infomercial when you're using scarcity, so take a step back and don't get too over the top. [23:23] Scarcity and availability are another peanut butter and jelly sort of concept grouping like anchoring and relativity. [26:15] Scarcity is a tactic that works especially when combined with availability. [27:05] If there is not enough value they need to control the supply that is available to keep demand high. [28:12] Melina's closing thoughts 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. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. 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 Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! Learn and support The Brainy Business: Check out and get your copies of Melina's Books. Get the Books Mentioned on (or related to) this Episode: The Power of Scarcity, by Mindy Weinstein What Your Customer Wants and Can't Tell You, by Melina Palmer Influence, by Robert Cialdini What Your Employees Need and Can't Tell You, by Melina Palmer Power of Regret, by Dan Pink Top Recommended Next Episode: Availability Bias (ep 15) Already Heard That One? Try These: The Top 5 Wording Mistakes Businesses Make (ep 2)

In today's conversation, I am joined by Amy Gallo. Amy is an expert in conflict, communication, and workplace dynamics. She combines the latest management research with practical advice to deliver evidence-based ideas on how to improve relationships and excel at work. She has written two books: The HBR Guide to Dealing with Conflict, and her newest which we are discussing today: Getting Along: How to Work with Anyone (Even Difficult People). In her role as a contributing editor at Harvard Business Review, Amy writes about interpersonal dynamics, communicating ideas, leading and influencing people, and building your career. She has contributed to numerous books on feedback, emotional intelligence, and managing others, and is the co-author of the HBR Guide to Building Your Business Case. She is also a co-host of HBR's Women at Work podcast, which is in its eighth season. She has contributed to other books and has taught at both Brown University and UPenn, and is an all-around wonderful person I'm so delighted to have met. It's kind of a fun and serendipitous story as to how Amy ended up on the show today. Listen in to hear all about it! Show Notes: [00:45] In today's conversation, I am joined by Amy Gallo. Amy is an expert in conflict, communication, and workplace dynamics. [01:59] It's kind of a fun and serendipitous story as to how Amy ended up on the show today. [04:21] SXSW is a massive event over 10 days with a film festival, music festival, food festival, comedy festival, and a conference focused on innovation and technology. Amy and I are both speaking at it this year (my talk is on the same day this episode comes out!) [06:40] Amy shares herself, her background, and the work she does. She wears many hats. [08:02] She didn't think she would become an editor (or be at Harvard Business Review), but she always gravitated to writing. [10:08] The HBR Women at Work podcast is still one of her favorite projects that she works on. Her work for HBR started small. [11:41] She loved writing, but never thought she would do anything with it as a career. [14:12] Writing the HBR Management Tip of the Day is what led to her writing the book, because she could see there was so much work being put out there by people in different fields. She let that inform the advice she was giving. [16:07] Knowing a little bit about a lot of things and a lot about a few things is a good balance to being able to make interesting connections. [17:35] Getting Along is about navigating the messiness of human interaction and recognizing that we are not all our best selves all the time, especially at work, and that we need the skills to be able to make the most of these very important relationships. [19:30] We have all had a difficult person at work that we don't get along with. [20:33] Amy shares the emails with "Brad" that she talks about in her book. [23:19] Our brains are so wired to scan for threats that we are so focused on negative things (negativity bias). [25:26] Any time you have a tricky interaction with someone you can't force the person to see it the way you see it. [26:12] When we are interacting with others and we find ourselves triggered or upset, there are many ways to view that situation. You have to own your interpretation as your perspective. [27:50] Your interpretation of what is appropriate behavior at work is not going to be the same as everyone else's. [30:49] There were two main things she wanted to do with this book. First, she wanted to give specific evidence-based advice for the situation they were dealing with. [32:46] The archetypes are really meant to give people a way into the specific advice that they need. They are meant to get the tactics from research that are supposed to work for this type of behavior. [33:22] The second thing she wanted to do with the book was to talk about how identity plays a role both in how we interpret difficult behavior and also in terms of the tactics that we can use and are effective for someone who shares the identity that we have. [35:55] Change is possible. If we really take a close look at what is happening and what could be motivating that behavior, and work on ourselves…then change is possible. It is worth continuing to try to change. [37:58] Amy shares the eight archetypes: the insecure boss, the pessimist, the victim, the passive-aggressive peer, the know it all, the biased co-worker, the tormentor, and the political operator. [40:16] Pessimism is contagious in the same way optimism is. [42:32] Pessimists often don't think they have agency, so giving them agency can really help. You can also give them a formal role to play as the devil's advocate then it is treating it as a benefit to the team. [44:47] We can all find times when can relate to (and likely when we have been) many of the archetypes. [47:02] There is a good chance you are one or more of the archetypes because we all are. [48:06] Having more people as part of your "us" can make a big difference. [49:41] Amy s

Today's episode is all about fundamental attribution error. Why is this the Tuesday Refresh? Well, when contributing editor to the Harvard Business Review, Amy Gallo, is on the show this coming Friday to discuss her book Getting Along: How to Work With Anyone (Even Difficult People) we specifically talk about this concept in detail. Also, upon review, this episode first aired on March 20, 2020…something tells me it hasn't gotten as many listens as it deserves - ha! It is so prevalent in every interaction at work, that this all made it an easy choice for being today's episode. The episode explains what fundamental attribution error is and how you experience it every single day at work and in your personal life. In essence, it is when we give ourselves the benefit of the doubt…but don't give that same benefit to others. This happens because we humans are very tribal by nature. Our brains are constantly sorting people into "us" and "them" categories. When we have people in the "us" world (yourself, your significant other, your family, your best friend, or favorite colleague) they get treated differently than those in a "them" category (people who don't look or sound like you, people in a different department that is always at odds with your own, that person who made you feel dumb at the meeting six years ago). Even if you don't want it to be a factor, it is. Our brains do this, and it is important to understand the bias and how it impacts our behavior (and those around us) so we can properly leverage it — because avoiding it doesn't work. Show Notes: [00:40] Today's episode is all about fundamental attribution error. The episode will get into more detail on what fundamental attribution error is and how you experience it every single day at work and in your personal life. [02:28] As an interesting side note, I was looking back to share when this episode first aired as I always like to make a note of it and the release date was March 20, 2020. I couldn't help but laugh as that date had a pretty visceral reaction for me. I'm guessing it might have for you too. [03:48] I like to call fundamental attribution error the "Pot / Kettle Phenomenon." When you use a different criteria to think about yourself and how you are acting than you use to think about and judge others…it is fundamental attribution error. [04:28] A classic example is when driving. How do you feel about someone who cuts you off in traffic and how do you feel about yourself when you cut someone else off in traffic? When thinking about yourself, you know this is a one-time thing and give yourself the benefit of the doubt (while that other person is labeled a "jerk"). [06:02] We also see this with movies in who is labeled good or bad. The best example is the Wicked Witch in the Wizard of Oz. [09:00] Your brain is biased to think of you as different and better than others, especially people that are not like you. [09:30] You don't have to let that immediate reaction form a lasting impression of someone else. You can put in a little effort once you understand the brain process. This can make all those relationships at work and in your personal life a little more pleasant. [11:12] The big difference between the way we see others and how we see ourselves is the intrinsic story compared to the extrinsic story. Intrinsic is internal and extrinsic is external. [12:48] In general, we are much more likely to say that others' internal attributes or personalities led to their bad behavior, while we see ours as being from external situational circumstances. [13:44] Four ways to change the ways you react to others: 1) Decide you want to work on this and understand why it is 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 30 days or a decent number of total interactions and then move to the next group. [15:42] It is also important to remember that fixing your mindset on the way you think about others is about your choice. You can't change them or their responses to situations. [17:35] If you know what makes you think that way and who's in the "in" group and the "out" group you can look to expand that "in" group so you can be less biased overall. [18:29] When you broaden the circle of the "in" crowd you start to see everyone in a better light. While you might not notice it until you start to open up, it can greatly impact all of your working relationships. [21:00] Conquering your fundamental attribution error to have better relationships with a department means every time you have a negative response you need to check in with yourself and remember they are part of your "in" group. Then think of something positive about them to replace the negative feeling you had initially. [22:11] When you force yourself to look deeper for positives, it can help round them out and build that intrinsic story. [23:00] The easiest way to see someone as your "in" group is to fi

In today's conversation, I am joined by Dr. Tomas Chamorro-Premuzic, an international authority in psychological profiling, talent management, leadership development, and people analytics. His commercial work focuses on the creation of science-based tools that improve organizations' ability to predict performance, and people's ability to understand themselves. He is currently the Chief Innovation Officer at Manpower Group, co-founder of Deeper Signals and Metaprofiling, and Professor of Business Psychology at University College London and Columbia University. He has previously held academic positions at New York University and the London School of Economics and lectured at Harvard, Stanford, and London Business Schools, Johns Hopkins, IMD, and INSEAD, as well as being the co-founder and CEO of BrazenX and the CEO at Hogan Assessment Systems. Dr. Tomas has written 11 books and over 150 scientific papers on the psychology of talent, leadership, innovation, and AI, making him one of the most prolific social scientists of his generation. His work has received awards by the American Psychological Association, the International Society for the Study of Individual Differences, and the Society for Industrial-Organizational Psychology, to which he is a Fellow. Dr. Tomas is also the founding director of University College London's IndustrialOrganizational and Business Psychology program, and the Chief Psychometric Advisor to Harvard's Entrepreneurial Finance Lab. Over the past 20 years, he has consulted to a range of clients. His media career comprises over 100 TV appearances and he is a keynote speaker for the Institute of Economic Affairs. I am so beyond delighted and honored that he is joining me on the show today to discuss his newest book, I, Human. Show Notes: [00:43] In today's conversation, I am joined by Dr. Tomas Chamorro-Premuzic, an international authority in psychological profiling, talent management, leadership development, and people analytics. [01:41] Dr. Tomas has written 11 books and over 150 scientific papers on the psychology of talent, leadership, innovation, and AI. [04:07] Dr. Tomas shares his experience, his work, and how he found himself doing the work he does now. His background is in psychology. [06:37] It is generally more useful to be smarter than not, but there are many other things that contribute to peoples' success in any area of life. [09:33] Very sought after strengths can come with limitations and turn into weaknesses if overused. [12:24] Humans are naturally tribal and we want to construct very coherent identities. With that comes the subjective experience that we belong to some groups and we don't belong to others. [13:21] We also strive to feel very rational and consistent. It is a lot simpler and generally more pleasant to hold attitudes, beliefs, and values that are compatible with each other. [15:07] So much of this world can be changed or modified a little bit if we convince people to spend time with others who don't think like them. [17:34] We tend to pick leaders based on their confidence instead of their competence. (Dunning-Kruger Effect) [18:11] A surplus of confidence really dilutes self awareness. The better you think you are at something the worse you probably are at that thing. [20:39] Instead of blaming women for not behaving overconfidently (more like the often incompetent men who move forward when they don't have the talents to back it up). We should instead stop falling for men who do that. [21:47] If leadership selection was gender blind you would end up with 60-65% of women in charge because of things like emotional intelligence, heart skills, qualifications, and absence of dark side traits. The actual frequency is 80-20 in favor of men. [23:37] Gender diversity and inclusion interventions have become more data driven in the last five years. [26:13] The entire world seems to be talking about Chat GPT. Tomas shares how that relates to his new book, I Human. [29:02] Three avenues to protect and preserve our expertise are to focus more on asking questions, really pick one or two areas of expertise that you invest in, and go from insights to actions. [30:42] Machines and technologies have always pushed us to upgrade ourselves. [33:30] In the book he answers the question of what it means to be human in this day and age when all the focus is on artificial intelligence and machines are clearly evolving and advancing. [34:59] The book has two parts. The first part highlights some of the worst behaviors that we have already seen humans display as a consequence of being so dependent on AI and related technologies. [37:25] The second and last parts of the book are a request for us to rediscover and reclaim the qualities that make us special, unique, and different from machines. [39:45] The shift really needs to be much more prominent from teaching information to teaching skills, behaviors, and ethics. [41:33] Organizations, nonprofits, institutions, governments, and soci

Today's episode is all about the Dunning Kruger Effect, which was the second most downloaded episode of the year in 2022, so in case you missed it I wanted to be sure you had a chance to listen to it like so many of your peers did. :) If you DID hear this episode last year when it came out, I highly recommend you still tune in now because I can guarantee it will hit you differently today than it did back then. You are a different person and you will glean different insights from the episode, I promise. So, why this episode and why today? Well, in Friday's episode with Dr. Tomas Chamorro-Premuzic, we talk explicitly about the Dunning Kruger Effect and how it applies in life and business when he shares about his new, fascinating book I, Human and our discussion is specifically around one of his other books, Why So Many Incompetent Men Become Leaders (And How To Fix It). That book has too good of a title to not be honored with a refresh on the Dunning Kruger Effect, which looks at the relationship between confidence and competence, as you will learn more about today. Show Notes: [00:39] Today's episode is all about the Dunning Kruger Effect, which was the second most downloaded episode of the year in 2022. [02:22] To put the Dunning-Kruger effect into its simplest form, it would say essentially that people who are unskilled tend to overestimate their abilities and those who are very skilled experts will underestimate theirs. [03:15] Think about a kid who graduates from high school and believes they know everything. [03:35] When someone graduates from high school, they are at a point that has come to be known as the "Peak of Mount Stupid." At the peak of mount stupid, someone has lots of confidence, but it isn't built on much competence. They have no idea how much they don't know so they are blissfully unaware of their precarious position and how close they are to falling right off the cliff. When this kid gets to college and realizes they don't know nearly as much as they thought they did, they fall into the "Valley of Despair." [05:51] This is an opportunity to look at the things you don't yet know and begin to research them. This gradual climb is called the "Slope of Enlightenment." You slowly gain confidence as you grow your competence…though you might never get back up to the level of confidence you had way back at the peak of mount stupid. [06:48] If you take a moment now to reflect upon your own life, I am guessing you could pretty easily come up with at least half a dozen examples where the Dunning-Kruger effect reared its ugly overconfident head. [08:17] While you are an expert in one thing, you are way overconfident in something else, where you don't have any idea of the ocean of stuff you don't know. [09:23] How the effort heuristic relates. [11:16] I can live in blissful unawareness of my inadequacies forever and never have it be an issue until I try the thing enough to realize that I should have been a little less confident. [12:30] Have some awareness and don't assume you know better than everyone else. [13:27] There is a flip to this as well. (It isn't all about mount stupid). Remember, there is a point where you become an expert and then grossly underestimate your own abilities. [14:45] You can't do this for everything, but on the things that matter it is worth doing a little Dunning-Kruger evaluation every so often to discover if you are underestimating or overestimating your confidence and competence at this point. [15:41] Look at your own moments where you have high confidence and low competence (or high competence with not enough confidence) to determine if you are showing up in the best way possible. Also, look at others to determine where they are on that Dunning-Kruger scale. [17:08] Another place where the Dunning-Kruger effect is really critical to keep in mind is when you look at coaching or giving advice to members of your team. [18:40] Giving them too many things to change while they are feeling the stress in the "valley" is going to make the problem worse, so you need to be selective on what advice to give them. [19:55] Know that when people have low competence in something, they are likely to be overconfident in their own abilities. Those who are very competent have a tendency to underestimate their own skill or ability. [20:3] There is an interesting point when there is an increase in knowledge where you realize all of what you don't know—that increased competence results in a drastic drop in confidence. [21:17] As you build knowledge, know that you will gradually underestimate your abilities, skills, and all the effort and training that went into what you now know and can do. Just because it is easy for you doesn't mean it isn't of value to someone else. Especially when someone is new, overshare information to help with where you both are on the Dunning-Kruger scale. [22:04] Don't take your spot on the Dunning-Kruger scale as a fixed point. The context is always changing, there a

In today's conversation, I am joined by Dr. Nick Epley, Director of the Center for Decision Research at the University of Chicago Booth School of Business. I was introduced to Nick by the amazing Ayelet Fishbach, who has been on The Brainy Business twice before. Nick studies social cognition—how thinking people think about other thinking people—to understand why smart people so routinely misunderstand each other. He teaches an ethics and well-being course to MBA students called Designing a Good Life (sounds like a perfect fit around here, and we do talk about this in the episode). His research has appeared in more than two dozen empirical journals, been featured by the New York Times, Wall Street Journal, CNN, Wired, NPR, and more. As Nick will share with us today...you may not realize it, but you were born with an extraordinary ability to understand what others think, feel, believe, want, and know. You are a mind reader! It's a sixth sense you use every day, in every personal and professional relationship you have. Today, Nick will share a bit of what scientists have learned about our ability to understand others and the surprising mistakes we so routinely make. Show Notes: [00:45] In today's conversation, I am joined by Dr. Nick Epley, director of The Center of Decision Research at the University of Chicago, Booth School of Business. Nick studies social cognition. [02:52] You may not realize it, but you were born with an extraordinary ability to understand what others think, feel, believe, want, and know. You are a mind reader. [05:02] Nick shares about himself and his background. He is a professor of behavioral science at the University of Chicago. [07:32] There are systematic gaps between our beliefs about someone else and reality. If we can understand what those gaps are we can understand why they exist. [09:38] The quality of our social relationships is a critical determinant of our happiness, probably the most important. Other people are the single biggest source of our happiness as well as our misery. [11:55] One of the big barriers to people being more social in their daily lives is that they underestimate how social others are. [13:35] We get that risk-reward trade-off with other people wrong. We think it is riskier to reach out and engage than it is. [15:05] Failing to realize that other people are social is a barrier to us. [17:43] One of the common things we find is that people are often surprised at how much they learned, how enjoyable the conversation was, and how much they have in common with the other person. [20:22] Conversations have a magnetic quality to them. It draws people together and surprises people. [22:02] If you don't like small talk…stop having it. When you take an interest in other people they reveal interesting stuff and take an interest in you. [24:18] Take an interest in another person - that is how you have good conversations. [26:26] If you care about somebody then you ask them questions that matter to them. Treat other people like they are good friends. [28:09] When people imagine having a meaningful conversation with a stranger, they think the other person is not going to want to hear about it or care about it. When they get into it and open up to each other it generally goes way better than people expect. [29:56] Having a culture where people are open, honest, and willing to engage and connect with one another, they feel connected to the place because they are connected to each other is the kind of culture that every organization wants to have and helps get the job done. [31:56] People's reluctance to reach out and engage with others is exactly the kind of barrier that organizations would want to get rid of. [33:38] The things that basic psychology has to teach people in business is the same thing we have to teach people in their everyday lives. [36:02] If you are bringing people into your organization, think about interviewing with your culture in mind. [38:46] When you make connection activities routine, common, easy, and part of the habits so people aren't thinking about it, you design it with the context so it just happens this way that is how they spread through organizations and you sustain them. [41:30] Often organizations don't choose to make these types of opportunities a priority. [43:52] Typing and texting lack the emotion and the thinking behind those words that you get from a person's voice. [45:32] Share kind thoughts with other people. [46:35] Think about somebody you feel grateful to and write them a note. Try to connect with a stranger. [49:17] Melina's closing thoughts [50:36] Take the time for real human connections, even small ones each day and see what happens. 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. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selecte

Today's episode is all about herding. We humans are a herding species, just like cows and sheep and guppies, and this has a big impact on our behavior. We are tribal and we look to others to help us stay safe and make good decisions. Or, at least, what our subconscious tells us is a good decision. :) This is why things like testimonials are so important. Herding has a dedicated chapter in my first book, What Your Customer Wants and Can't Tell You because they are so important for businesses to understand. The reason I chose to refresh this episode is because of the guest who is joining me this coming Friday, Nick Epley. We talk about the importance of social connection and why we often don't do the things that will help us to be happier because we perceive them as being uncomfortable or awkward or against the social norms in the moment. In the business context, imagine how much value could come from having a simple chat with your colleagues or people at a conference. Most people probably stick to their groups where they are already comfortable and don't strike up a conversation, but what could happen if you did? There is a lot of value in breaking from the herd and having that conversation, even for less than a minute, which we will talk about more on Friday when episode 265 with Dr. Nick Epley comes out. And as you listen today, I encourage you to reflect on all the times you thought about striking up a conversation or asking a question and didn't. What aspects of herding made you feel like you shouldn't and what can you do in the future to engage with others more? It is valuable for you both professionally and personally, I promise. Show Notes: [00:39] Today's episode is all about herding. We humans are a herding species, just like cows and sheep and guppies, and this has a big impact on our behavior. [02:21] In the business context, imagine how much value could come from having a simple chat with your colleagues or people at a conference. [04:07] Humans herd in the same way as other species for most of the same reasons. The main reason animals herd is for protection. [05:41] Herding is in our nature. [08:02] Herding helps us learn by observation. Watching where others go and following the group keeps you safe. [09:38] As humans have evolved, herding behavior has not always served us well. Herding is there to protect individuals, not the group or a complex society as a whole. [11:41] We choose restaurants by online reviews and crowdedness. We think the people must know something we don't. [12:58] People are more likely to leave tips when others have done it. [15:51] Herding mentality is much more likely to come out when people feel vulnerable or are unsure of themselves. [17:23] It is better to be conventionally wrong than unconventionally right. [18:58] Studies have shown that up to 75% of participants will give an answer they know is wrong to go with the group. [21:07] When everyone follows the herd and doesn't take the time to do their own research stocks or companies get artificially inflated by the confidence of others. [23:42] Crypto is absolutely impacted by the herd mentality. [24:16] Always beware if your brain is making you feel anxious to take steps and do something just because everyone is doing it or having your FOMO triggered in a way that makes you want to do less research before investing your time, energy, or other resources. [27:48] People like to be part of the group and this is increased when the other people in the group are comparable and more like you. [28:14] Whatever your business does, you are in the business of solving problems. The only reason people buy anything is to solve a problem. [30:52] Being in a group makes us feel safe and happy because of this release of oxytocin. When we are not part of the group, our brains do whatever they can to get that bliss feeling back by seeking out more group relationships to help us feel safe and warm. [33:28] while we can't change our natural tendency to herd, you do have options to change your behavior. [34:28] Understanding what will trigger herd mentality in your customers for both good and bad can help you to message better and more effectively. [36:52] If you really care about starting a movement, have the courage to follow and show others how to follow. When you find a lone nut doing something great, have the guts to be the first one to stand up and join in. [37:09] Melina's closing thoughts [40:52] Be thoughtful with the numbers you put out into the world, and consider the herding implications for what you want people to do in the long run. [41:59] Consider how social norms and herding instincts may keep you from having conversations with other people. 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. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and

In today's conversation, I am joined by Gina Bianchini, author of the book Purpose: Design a Community and Change Your Life. She's also the CEO and Founder of Mighty, where creators, entrepreneurs, and brands build digital communities and courses with cultural software. Myself included -- the BE Thoughtful Revolution moved to Mighty Networks in 2021. In 2019, Gina launched the Community Design™ Masterclass, where over 8,000 people have learned how to build a community so valuable you can charge for it, and so well-designed it essentially runs itself. Before Mighty, she was the CEO and co-founder of Ning, a pioneering global platform for creating social networks she started with Marc Andreessen in 2004. She has been featured in Fast Company, Wired, Vanity Fair, Fortune, Wall Street Journal, Bloomberg, and The New York Times. She has appeared on CNBC, CNN, and Charlie Rose. She is a wealth of knowledge and I know you will enjoy this conversation as much as I did. Show Notes: [00:43] In today's conversation, I am joined by Gina Bianchini, author of the book Purpose: Design a Community and Change Your Life. [03:00] Gina shares about herself, her background, and how she found herself in this space. [04:05] Mighty is a software platform for people to create new digital cultures around mastering something interesting and important together. [06:15] Gina uses her time, talent, and focus to help people learn to live an extraordinary life. [07:50] Social networks are where we are making connections and building real relationships between people. The network gets more valuable to us with each person that joins and contributes. [08:55] Social media is about building an audience or a following. The goal is to build the biggest audience possible. [10:56] This shift from social networks to a world where we are passive consumers of content as opposed to all the things that allow us to build new and interesting digital cultures. [13:46] Across the board we are not happy and less happy the more time we spend in this system. The average American spends 3 ½ hours a day on social media platforms and report fewer friends and less happiness than 20 years ago. [15:48] We are happiest where we can play, connect, and have flow. [18:31] A network effect is a system where, when someone joins, that new person creates more value for everybody else in the network. [19:47] The new member is able to get a lot more value from your community because of the contributions other members are making (and they add value for everyone else). [21:40] It is so much better for us to play the role of host which is less work and more valuable for everyone involved and also feeds and scales the system. [24:26] We are constantly shifting through our different identities and having the support and finding others like you is so fulfilling. [27:17] We get better rewards and better returns with less risks. The same is true for how we spend our time. [30:07] The highest order is how are you helping other people reach their fullest potential. We need to play the role of helping other people become the hero. [31:40] The role of host is the most important and will continue to be the most valuable role any of us can play in our professional, personal, or social lives through this decade and decades to come. [33:24] A tiny change in the question can change your direction drastically. [35:41] People pay attention to what they pay for. [37:57] We need to build our future story. Gina's Purpose 30 model is 30 minutes, 30 days, with 6 questions (she shares all 6 in the conversation). You have a blank canvas to create the future you want. [40:12] It is very different to spend your time thinking about what is possible and what is positive than the negative thoughts. [41:04] True meaning and true impact come from how you have helped others realize their fullest potential as well. [43:00] It is about clearing your mind so that you can wander and explore. [45:00] Melina's closing thoughts 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. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. 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 Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! Learn and Support The Brainy Business: Check out and get your copies of Melina's Books. Get the Books Mentioned on (or related to)

Today's episode is all about the network effect. This is something I don't talk about all that often as it isn't purely behavioral economics related, but I did the original episode because a listener requested it and it was really timely as at that time early on in the pandemic. This episode first aired in June of 2020 at a time where people were really looking to shift into a virtual presence. And not surprisingly, there is always a bit of a "field of dreams" mentality with these things, so I wanted to be sure to share a bit about the nuance of networks and how they create value, with tips for people to keep in mind to increase their chances of success. So, you may be wondering, if this doesn't come up often...why the heck are you talking about it again now? Well, I am delighted that on this coming Friday's episode, I had a chance to sit down with Gina Bianchini, Founder and CEO of Mighty, which includes Mighty Networks (the platform the BE Thoughtful Revolution has been on since May of 2021). She has a new book out called Purpose, which is all about creating communities and their importance for us as humans. Because of her Silicon Valley background and history of building great communities, we talked about the network effect in the conversation, making it a great opportunity to refresh this episode as you get ready to tune into that conversation on Tuesday. As you listen today, I encourage you to think about communities. What have they meant to you personally in the past? Where do you connect with others? What do you love about your real communities — those in person you have had over your lifetime? Who do you feel closest to, and what is it you bond over? Is any of that present in your business now? What about your social media experiences? Just keep that in mind as you listen to this episode on the network effect today, as it will put you in a really great place for the conversation with Gina in episode 263 which is coming out in just a couple of days. (And if you aren't already subscribed to the podcast, now is a great time to do so!) Show Notes: [00:38] Today's episode is all about the network effect. [01:30] I am delighted that on this coming Friday's episode, I had a chance to sit down with Gina Bianchini, Founder and CEO of Mighty, which includes Mighty Networks, the platform the BE Thoughtful Revolution has been on since 2021. [03:18] Quick shoutout to Clayton Key for recommending the topic of this episode! [04:46] The network effect is when the value of the business increases as the network grows. [06:27] The network effect makes it so new people joining the network increase the value for everyone. [08:49] The three most common types of network effects are: direct, two-sided, and local. 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. [09:55] With the two-sided network effect, when someone from one user group joins the network the value increases for one or more of the other user groups. [11:14] The key difference between a two-sided and a direct network effect is that the type of user joining matters. [14:01] To leverage the full potential of the network, any social platform needs to maintain and monitor the quality of its users to ensure there are not bots and spam accounts. [15:30] The last type of network effect is the local network effect. [18:10] When you're talking about global effects in a network, it means it is impacting everyone across the entire platform. [19:38] Network externalities influence a network effort and they can work hand and hand; they are not the same thing. A business that is not built on the network effort still should be considering those network externalities to increase sales. A network effect is not the same as going viral. [20:57] There are serious hurdles to keep in mind in this kind of model. [22:36] So when setting up this model remember you need to be able to stick it out for a while upfront while it may be costing you money knowing it will pay off once you hit critical mass. [23:44] This platform model is looking for quality growth not just growth. [25:04] Network effects are not quite a house of cards, but being dependent on users working harmoniously together does make a somewhat precarious beast that needs constant monitoring and attention. [27:32] The five C's of network effect are connection, communication, collaboration, curation, and community. [29:11] People like and value things more than they invested in building themselves (IKEA Effect!) so if your users help build the platform, provide feedback, and see it being implemented they will overlook small flaws that would otherwise irritate them because they helped to build it. [30:43] You need to start with a small enough group to get the value for people early. Focus on operational excellence, great branding, and high value so most people who join the network stay for the long haul. [31:41] Those network externa

In today's conversation, I am joined by Dr. Wendy Smith, coauthor of Both/And Thinking: Embracing Creative Tensions to Solve Your Toughest Problems. I don't think we realize it all that much, but our lives are full of paradoxes. Questions like: How can we each express our individuality and be a team player? How do we balance work and life? How can we take care of ourselves while supporting others? How can we manage the core business while innovating for the future? Believe it or not, these are some of the everyday paradoxes that make up our lives. And because our brains tend to default to either/or choices, we choose one option over the other. We deal with uncertainty by asserting certainty. BUT this is not the best way, as you will learn about in today's conversation with Wendy Smith, a co-author of one of my new favorite books: Both/And Thinking. Wendy is the Dana J. Johnson Professor of Management and earned her Ph.D. in organizational behavior at Harvard Business School, where she began her intensive research on strategic paradoxes—how leaders and senior teams effectively respond to contradictory, yet interdependent demands. She is a wealth of amazing information and I can't wait for you to learn from her today. Show Notes: [00:42] In today's conversation, I am joined by Dr. Wendy Smith, coauthor of Both/And Thinking: Embracing Creative Tensions to Solve Your Toughest Problems. [01:46] Wendy is the Dana J. Johnson Professor of Management and faculty director of the Women's Leadership Initiative at the Lerner College of Business and Economics, at the University of Delaware. [03:57] Wendy shares about herself, her background, and the work she does. She is a professor of organizational behavior and business leadership management. [06:27] We all experience these tug of wars in our lives. [09:37] Our decisions really have multiple layers to them. They show up for us as a dilemma - these competing ideas in which you feel like you have to make a decision. [11:37] Underlying our dilemmas are these paradoxical tensions. [14:23] It is not that we are constantly trying to choose between always trying to be super disciplined or always trying to be spontaneous. If we go extreme on one side it becomes problematic in so many ways. [15:36] The goal is to recognize that there is a relationship between discipline and spontaneity and that discipline enables us to be spontaneous as long as we don't go so extreme. Spontaneity enables us to have more structure in our world. [17:08] These tensions drive us into either/or thinking. That kind of thinking is limited at best and detrimental at worst. [19:39] Often when change happens you feel like you have to change significantly and essentially you are throwing out the baby with the bath water by innovating everything. [21:44] Polarization is when you go down a path and you are sure that if you are right about the way you are thinking, someone else must be wrong. [24:35] Businesses should continue to be operationally successful as they move up their S curve. Continue to service your existing customers and be efficient with your existing products and at the same time be scanning, exploring, experimenting, and innovating to figure out what the new S curve looks like. [27:09] The problem isn't the problem. The way we are framing and thinking about the problem is the problem. [28:10] You have to change to stay the same. [30:56] Wendy shares a story about a group that built an inn to honor and value what was key to the culture of Newfoundland. [34:04] To keep what you have, you have to change and we should embrace that. [35:35] Her number one tip for writing a book is just to sit and do it. [38:04] Wendy and her co-author worked together to structure the ideas of the book. [40:38] There is something deeply paradoxical about behavioral economics (and Wendy loves that!) [43:02] Just changing the question will invite you into a whole different way of thinking. [44:02] Melina's closing thoughts [45:55] Embracing paradoxes can have a huge impact. There is so much opportunity there. 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. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. 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 Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! Learn and Support The Brainy Business: Check out

Today's episode is all about confirmation bias. My oh my, what an important topic when it comes to applying behavioral science to life and work. You have likely heard the term "confirmation bias" before, whether you heard this episode when it first aired back in May of 2020 or not, as this is one of those concepts that gets thrown around a bit. It is easy to understand on the surface, but the depth of its importance and impact isn't always realized. Because our brains function largely on predictability and a love for the status quo, confirmation bias is part of our lives and work constantly. Did you know that whether or not you believe someone is difficult or easy to work with, can determine whether or not they are easy or difficult to work with? Kids' performance in school has been found to be tied to the way a teacher was told about them more than on their starting academic ability. Your view of your team or a project or a process can all be a filter that your confirmation bias either uses for good or to keep you stuck. Now, in case you are wondering why I chose to refresh this episode today, it is because of the interview coming up on Friday with Wendy Smith about her book Both/And Thinking which will change your life. It is so good and fantastic. Because of that conversation, it felt like the best thing we could talk about today to set the stage is confirmation bias. As you listen today, think about what your biases are and where you have an "either/or" mindset. Our world is not one of binary choices. There are many opportunities in the both/and space that businesses can benefit from embracing and updating your filters to be set up for them is going to make such a difference. So, keep that in mind as you listen today. Show Notes: [00:39] Today's episode is all about confirmation bias. [01:16] Confirmation bias is part of our lives and work constantly. [03:25] In its most basic form confirmation bias comes down to our brain's desire to be correct and the subconscious filter deciding what gets through and stored and what gets ignored. [03:59] The subconscious brain can do 11 million bits of information per second. The conscious brain can only do 40 bits. [05:44] Stereotypes do go hand and hand with confirmation bias and many of these are taught to us intentionally or not when we are very young. [07:28] The four main ways you will see confirmation bias are: 1) not seeking out objective facts, 2) interpreting information to support your existing belief, 3) only remembering details that upheld your belief, and 4) ignoring information that challenges your belief. [10:33] Studies have shown that seeing facts from an opposing side that contradicts what you believed going in actually has the opposite effect of what they should and can make people double down on their previous beliefs. (This is known as the backfire effect.) [11:18] You are going to seek out information that supports your beliefs and be more likely to believe, remember, and share those items that support your belief. You are also likely to attribute things to beliefs that aren't necessarily true. [14:01] This reinforcing tendency is because of illusory correlation which is when we overestimate the relationship between two items to reinforce our biases even when little or no relationship exists. [15:49] We humans are pretty bad listeners by nature because our brains are processing so much information at any given time. [18:42] It is important to not start the conversation with a predetermined recommendation before they have had a chance to tell you about their situation. Most everyone should have at least two options. [21:35] We can inadvertently talk people out of something they have chosen to get if we aren't careful. [23:24] Confirmation bias doesn't have to be a bad thing and it can very much work to your advantage in life and business. [24:07] Your conscious brain has limited capacity and you can't do everything so don't waste the effort on little unimportant beliefs. [27:17] People who have been injured will often see themselves as victims, especially while they are dealing with all the legal stuff. Many people have a big improvement when their cases are settled because they are able to get out of that victim mindset. This is confirmation bias in action. [28:24] You can change the belief that has been holding you back if you are willing to put in a little effort. [29:46] Melina's closing thoughts [30:40] You need to change YOU before trying to change them. [33:19] Try and find a real human connection point that can help you to get away from just seeing them as "that difficult team member." 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. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn

In today's conversation, I am joined by Sarah Thompson, a behavioral designer at Live Neuron Labs, who has a master's in cognitive semiotics. Don't worry, we are going to have lots of conversation today about what cognitive semiotics is and why it matters. The first thing I want to set the stage on is to get you thinking about metaphor. Now, this isn't the first time we are talking about metaphors (or semiotics) on the show, but today we are talking about how important metaphor really is when it comes to understanding the brain, thought, and decision-making. Metaphor matters because research is starting to show that we don't just use them as colorful language, but we actually think in metaphors. It's how our cognitive system is structured. Sarah will talk about a lot of great resources including a book called Metaphors We Live By, which was written by George Lakoff and Mark Johnson. If, like me, you are ready to go all in on cognitive semiotics and metaphor, this is a book to add to your library immediately. Cognitive semiotics is an emerging field, so we all need to stick together and know who else is researching and working in this space. Get ready to have your mind blown (metaphor) as you listen today! Show Notes: [00:43] In today's conversation, I am joined by Sarah Thompson, a behavioral designer at Live Neuron Labs, who has a master's in cognitive semiotics. [02:08] Cognitive semiotics is an emerging field, so we all need to stick together and know who else is researching and working in this space. [04:29] Sarah shares about herself, her background, and the work she does. She is a behavioral designer. Her job is to apply behavioral science through design to help people make better decisions. [06:10] Cognitive semiotics is how the mind makes meaning. [07:43] One of the biggest insights from cognitive semiotics is that metaphors are incredibly powerful at shaping how we talk, how we think, and how we make decisions. [08:21] Metaphors are something we don't go out of our way to use. It is just something that naturally flows out of us. [10:55] We have this myth that metaphors are just a part of language but metaphors are actually in all other types of communication including gestures. [12:35] Melina talks about metaphor usage in songs, including what happens when something is unexpected. [14:21] In a metaphor we talk about one concept as if it is another concept. [16:50] A lot of studies show that the earlier you can get a metaphor in your conceptualization of an idea the more ability it has to influence how somebody thinks about it. It is not as effective if you add the metaphor at the end. [18:01] You are using metaphors constantly even when you are not thinking about them. [18:24] Sarah shares a study from Stanford University about two researchers who wanted to know if using a metaphor could affect how somebody thought about a complex social issue like crime. [20:07] A single word changed how people thought about a very complex social issue. The metaphor was more powerful at determining people's response than their political affiliation. [23:03] We have primary metaphors which are ones that are deeply rooted and embodied metaphors. We acquire them from interactions with the world at a very young age. [25:36] The war metaphor was a mismatched metaphor for the pandemic. [26:56] Metaphors are a part of our everyday communication. They have the ability to influence us and they structure our thoughts. [29:20] The first key thing in using metaphors is identifying your user's metaphors. [31:44] Once you know what your users are saying you can figure out those higher level conceptual metaphors they have. [33:04] Once you have their metaphors you need to evaluate them and figure out which of their metaphors align with the behavioral outcome we want them to do. [35:44] We have lots of ways where you can go and find what people are actually saying. [37:57] Some metaphors can be empowering, but others can be potentially harmful. [39:19] The next critical piece is that whatever metaphor you use to describe your user's problem you need to use the same metaphor to describe the solution. [40:54] It is important to really think through all the ripples and steps of what a metaphor might mean and the effects it may have. [43:27] With metaphors, it is particularly important to test because metaphors trigger associations or experiences that your users already have. You take a best guess, put it out there, and get feedback. [44:44] Tests are always best! [47:12] There can be so many mixed metaphors in a piece of communication. [48:02] Mixed metaphors are like mixed messages. They increase cognitive load and make it more difficult for someone to make a decision. [49:18] Once you decide what your core metaphor is going to be you take it and try to carry it through the entire communication. [51:01] Go and try and find all the metaphors around you first. Then jot down all the associations you have for it. [53:42] Melina's closi

Today's episode is all about making concepts tangible (what that means and why it matters in life and business). I am so excited to refresh this episode for you today because it shows how I was excited about something I didn't have a word for several years ago, but was already searching for. Now I know this was at the root of my interest in cognitive semiotics, something we are digging into on this coming Friday's episode with Sarah Thompson. Cognitive semiotics may sound super technical, but it is essentially about how the mind makes meaning, and we talk a lot about metaphor in that conversation. These brain associations and the concepts like a blue square or yellow triangle, which I introduce in this episode are from George Lakoff (I read about in his book The Political Mind, which was part of the reading in my master's program. I wish they would have included Metaphors We Live By as that would have changed my entire life if I had encountered it all these years ago, but I think things turned out ok so I'm not too mad about it.) While I didn't realize it at the time, this episode from 2019 was my first real dive into cognitive semiotics and metaphor elicitation. This episode is all about what it means to make a concept "tangible" or a physical manifestation or physical representation of a concept, and why that is important for all kinds of businesses. Listen in for tips on making things more tangible (and making it easier for people to buy from you). Show Notes: [00:38] Today's episode is all about making concepts tangible. [02:43] This isn't really a topic you can look up. There aren't really papers or extensive research on this naming. It is more of an acceptable premise. (As noted in the refreshed intro, the field of cognitive semiotics is a place to start.) [03:21] The brain works on associations. [05:30] The physical shapes and colors of road signs bring a physical presence that can be recalled easier. [07:04] The physical manifestation of the brand makes the business more real in your mind because there is a logo to relate to. [08:18] Physical representation can do two big things for a business. It can make an abstract concept more real and impactful. And, it can tie back to an emotion or memory or other association you want to remember. Abstract concepts are everywhere in business. [10:12] Businesses will say things that are more conceptual but feel tangible. That makes the point more impactful for the customer. [12:50] The physical, tangible representation can be tied to our emotional center and trigger loss aversion. A personal example from DVDs. [13:35] In your business, where could you reverse the process and find a spot to inject a physical form where only a concept exists today to make your business more tangible and sticky for your customers? [16:24] When you take something from conceptual to tangible it makes it easier for the brain to categorize, relate, and remember. [17:04] The second way that physical representation is helpful is that it can help remind you of associations you have made previously or of what is important to you. [19:45] A strong brand is able to live through the lack of words and evoke feelings. They leave an impression even without their name. [21:14] What could your business do to be a constant association and reminder in the brains of your customers? [21:22] One important reminder is to note where the association is taking place and what that says for and about your overall brand. [23:07] You (typically) don't want to be associated with the physical manifestation of a negative concept. [24:47] You can strategically create visuals around what you are wanting to do to help you achieve your goals. What you surround yourself with has a huge impact on your approach to life, business, and success. [25:16] Melina's closing thoughts [25:33] The words and images we use and how we can be more impactful when we are consistent in our metaphor usage, it's just so so important in life and 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. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. 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 Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! Learn and Support The Brainy Business: Check out and get your copies of Melina's Books. Get the Books Mentioned on (or related

In today's conversation, I am joined by Dr. Cassie Holmes. Her fantastic book Happier Hour was named a "must-read" of 2022 by Forbes AND by the Next Big Idea Club. The Washington Post also profiled it as one of their best health books read and recommended by experts in 2022. Cassie is a Professor at UCLA's Anderson School of Management. Her research examines how focusing on time (rather than money) increases happiness, how the meaning of happiness changes over the course of life, and how much happiness people enjoy from extraordinary versus ordinary experiences. Across these inquiries, her findings highlight the joy that stems from interpersonal connection and paying attention to the present moment. Cassie's academic research on the role of time in cultivating well-being has been published in leading academic journals, including Psychological Science, the Journal of Personality and Social Psychology, and the Journal of Consumer Research, and earned her the Early Career Award from both the Association of Consumer Research and the Society of Consumer Psychology. Cassie was identified by Poets & Quants as one of the best 40 business professors under 40, and popular accounts of her research have been featured by NPR, The Economist, The New York Times, The Wall Street Journal, the Financial Times, and Scientific American. Happier Hour is based on her wildly popular MBA course, "Applying the Science of Happiness to Life Design." It is so good and I can't wait to have you hear about some of the insights from her -- it will change your life for the better I'm sure. Show Notes: [00:41] In today's conversation, I am joined by Dr. Cassie Holmes, who you met a few weeks ago when she was on the "panel" episode with Dr. Ayelet Fishbach sharing how to have the best and happiest 2023 possible. [02:45] Her new and widely acclaimed book, Happier Hour: How to Beat Distraction, Expand Your Time, and Focus on What Matters Most, is based on her wildly popular MBA course, "Applying the Science of Happiness to Life Design." [04:18] Cassie shares about herself, her background, and what she does. She studies happiness and in particular the role of time. [05:22] When we feel happier, it makes us better in the work environment. [08:02] She wrote Happier Hour after the success of her course so she could share her learnings with even more people. Readers can apply the insights and experience the benefits just like her students. [10:10] You can have this huge impact from changing a couple of little things if you put a little focused effort forward. [12:21] Our time is so important. Maximize the amount of time that feels worthwhile and minimize the time that feels like a waste. [15:12] Cassie shares a day of her life early in her career when she experienced time poverty. She wanted more time so she could slow down and experience the time she was spending. [17:15] Time poverty is that acute feeling of having too much to do and not enough time to do it. [19:25] With too little discretionary time people are less happy. When we have too much discretionary spent in time that doesn't feel worthwhile, that undermines our sense of purpose and we feel less satisfied. [21:45] It is not about how much time you have available. It is really about how you invest the time you have available. [24:20] Discretionary is what you want to do as opposed to nondiscretionary is something you have to do. [26:35] On average people are most satisfied from social connection. The least happy activities tend to be commuting, work hours, and housework. [28:25] After tracking your time for a week you have a fantastic data set where you can find which activities made you feel most satisfied. [31:05] If it is not something you have to do and you are not enjoying it, that is an opportunity to reallocate that time to things that are worthwhile. [33:49] Simply being outside had its own significantly positive effect. [36:28] Experiencing awe can increase one's sense of time affluence. [38:40] You don't have to have your discretionary time all in one block. [41:14] It is not the amount of time you spend on a particular activity that determines happiness. It is really the quality and your engagement in the activity that determines it. [42:27] Ordinary experiences can bring us as much joy as extraordinary experiences if only we are paying attention and savoring and cherishing them. [44:33] It is not just the amount of time you spend that determines its impact, it is really how you mentally engage in that time. [46:55] The most worthwhile investment is in cultivating relationships. The single biggest predictor of having a satisfied life was having strong supportive relationships with family or friends that feel like family and that requires investment. [49:01] She was living her dream life and she found herself charging ahead because she was in her head thinking about other things she had to do. It was pulling her out of the moment. [51:24] The goal is to pause in those moments a

Habits are foundational to everything we do. When we think about habits we tend to think about the "bad" ones, things we want to change but there is so much more to it. Our brains run on habits, and without them, we couldn't function. Many episodes of this podcast that have been dedicated to habits and related topics throughout the years, and this is the first one, which originally aired in the fall of 2019. Since then, I've interviewed habits expert Wendy Wood and discussed habits with Richard Chataway (links to their episodes in these notes). I included habits heavily in my books and the reason I chose to refresh this episode right now is because of this upcoming Friday's guest. Cassie Holmes, the author of Happier Hour is my guest on Friday, and I thought that some reflection on habits is the best way to set you up to get the most out of that conversation. When you look at your day, what makes you happy? What is serving you and what isn't? What has become a habit and what you should be more thoughtful about? This episode will help you in that process to understand further what a habit is, how they work, and what to keep in mind as you look to reinforce some and change others. The main thing to remember is that we need habits. They aren't inherently bad. Most of them are good. Understanding them and leveraging them is where the opportunity lies. Show Notes: [00:37] Today's episode is all about habits. Habits are foundational to everything we do. [02:45] You have a lot more good habits than bad ones. You just aren't consciously aware of the vast majority of them. [04:27] Sorting by color is a form of habitual purchasing. Even with infrequent purchases, the place you go and look is based on habits. [06:25] The human brain essentially works on many many associations. [09:03] Up to 95% of all buying decisions are habitual. [11:09] Unfortunately the idea that it takes us 21-30 days to create a habit is wrong. [13:33] 21 days is not the magic number for making or breaking a habit. [15:16] A 2009 study from the European Journal of Social Psychology found the average number of days it took to form a habit was 66 days. (But don't let that fool you…the range of data points matters!) [16:58] We approach habit changing all wrong. [18:20] Habits are made up of four phases: cue, craving, response, and reward. [19:31] Habits form because your brain is trying to find predictable ways to get rewards. A cue is a signal to the brain that there is a reward around and that instantly leads to craving/desire/filter for that item. [21:21] If you want to change a habit or start a new one, the cue and reward phases are driving the behavior. [22:44] Cues have been found to fall into one of five categories: location, time, emotional state, other people, and an immediately preceding action. [24:27] You aren't craving the thing, but rather the reward it provides. [27:05] When we know the cue and the reward our brain wants we can work to change the habit. [29:31] One other crazy brain trick is word choice. [31:27] Saying "I don't" is empowering. This was your choice. It affirms the choice you made and makes you feel determined and full of willpower. (This is very different from "I can't.") [33:12] You should be confident that you made this choice so you can firmly say "No, I don't do that." [35:04] We can check our notifications and emails every couple of hours or a couple of times a day (instead of every instant as we get continuous pings, dings and buzzes) and it will be fine. Once the cue is gone, we won't look at our phones as much and we can be more productive. [38:07] Interrupting shoppers' habitual sequence can be a problem depending on your business positioning. [39:05] As the brand leader you don't want to do too much to shake things up or rock the boat. [41:59] The habits of your current and potential customers are important to consider when building out your strategies. [42:28] Melina's closing thoughts [43:29] We are all surrounded by habits all day, they are a huge portion of the 35,000 decisions we all make each day. Understanding the rules of your habits is the first step in identifying which are working well for you and which you might want to let go of because they aren't serving you well. [44:58] You want to focus on the right stuff at the right time and not changes habits that you don't need to. 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. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let's connect: [email protected] The Brainy Business® on Facebook The Brainy Bu

2022 was a great year for me and The Brainy Business. And, being this is a "best of" episode…here are some of my "best" moments from the year. I traveled to Amsterdam to speak at the fantastic IIEX Europe conference (thank you Greenbook!) and launched my second book, What Your Employees Need and Can't Tell You, with an in-person event and book signing. I was honored to be a runner-up in three categories of the Habit Weekly Awards this year and was an honoree on Greenbooks Future List, as well as the ESOMAR Insights250 list. Amazing! I continued teaching and added a class in advanced concepts of behavioral economics to the certificate program, which I'm really proud of and students have really enjoyed. We started testing out a second episode per week. I also got to meet and connect with some amazing people – 46 of them came on the show as guests in 2022 – that meant reading really great books and papers and learning about what is going on in the field, which is one of my favorite aspects of the work I do. I'm so lucky and honored for this life and love every minute of it and am so excited for the books and episodes coming in 2023! BUT before we get fully moving forward into the future, we have to look back and celebrate the best of 2022. Show Notes: [00:45] 2022 was a great year for me and The Brainy Business. And, being this is a "best of" episode…here are some of my "best" moments and memories from the year. [03:33] I also got to meet and connect with some amazing people – 46 of them came on the show as guests in 2022. [06:36] 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. [07:44] In 2022, the show had more than a quarter of a million downloads from 170 countries. Thank you! [08:29] TOP DOWNLOADS BY COUNTRY - US, UK, Canada, Australia, which have remained in the top 4 pretty much since the podcast started. India is fifth, followed by Germany… and then we get into some new territory! South Africa has moved up to being 7th in the world in 2022. We then have Spain in the number 8 spot followed by Mexico, and for the first time in the top 10 we have Taiwan! [10:08] TOP 10 STATES - Virginia, Massachusetts, Georgia, then Florida is 7, and Ohio holding out the # 6 spot again this year. Washington is in our number 5 spot with New York in number 4 and then Illinois with the third most downloads in 2022! Once again, we continue to have Texas at 2, and California still with the top most downloads of 2022. [12:37] With 249 episodes of content to choose from, we get our top 10 of the year, starting with episode 196 and my interview with Priscilla McKinney of Little Bird Marketing. [14:32] If you are interested in human behavior and having better content that really resonates with people, you are going to love this next one, episode 201 – Creating Content People Can't Help But Engage With, featuring Katelyn Bourgoin, is next on our list. [17:43] We are to number eight, which is episode 192 – AI, Blockchain, Machine Learning, with Manuj Aggarwal. The intersection of human behavior and technology – specifically with AI and Machine Learning, has been a big topic of conversation in the past couple of years. [18:51] That brings us to the 7th most downloaded episode of the year, 190 – The Voltage Effect with John List. [21:06] Next on our list, is 187 – Motivation and Incentives at Work, with Kurt Nelson. [22:28] If you have ever taken or considered creating an online course, you must listen to episode 193 – How to Make Online Courses People Enjoy, with Chris Rawlinson of 42Courses. [23:57] Now, moving on to the fourth most downloaded episode of the year, 197 – You Have More Influence Than You Think, with Vanessa Bohns. [25:22] Yale professor Zoe Chance was on in episode 189 sharing about her fantastic book, Influence Is Your Superpower and that episode is the third most downloaded of the year. [26:52] That brings us to the second most downloaded episode of 2022. Our only non-interview in the top 10! This was episode 198 – The Dunning Kruger Effect. [27:24] Essentially, the Dunning Kruger effect looks at the interesting relationship of confidence and competence, and how when we know very little about something (low competence) we have ridiculously high confidence but once we get a little more competence and we start to see all that we don't know…confidence tanks, and it is a slow build back up to build it back as we learn. [30:06] We've made it to the most downloaded episode of the year. Are you ready? It is…186 – Get It Done, with Ayelet Fishbach! [32:11] Considering this episode is coming out right around the time of "Quitter's Day" which is when most people will have given up their resolutions, it seems like a good time to refresh your motivation by listening to this great episode with Ayelet. [34:08] There is a link to all the books featured on the show this past year rig

I love partitioning! It is such an under-discussed concept, which is why I decided to refresh this episode from 2019 for you here today. Partitioning is closely related to friction or sludge, but it isn't exactly the same. While an experience that has partitions may be creating friction/sludge, it isn't just about that. And, it isn't always about reducing it. Sometimes, adding a partition is really useful when you want someone to stop and think. I'll get into that more as we dig into the episode. As you get ready to listen to the episode today, I encourage you to have some experiences in mind. Try and think of a time when you had a great experience with a company, where things were seamless and streamlined or it felt easy. And another where you were part-way through buying and then stopped or when you changed your mind on a project or whatever else. Try and think through what happened along the way and keep that in mind as you consider the idea of partitioning. Where were the unintended partitions and where did the lack of them make a difference? Of course, look to your own experiences in your company as well. If you have a hard time closing deals or lose people partway through an application form keep that in mind too. It can all tie back to partitions. So let's dive in and learn how you can use partitions in your business to create a seamless experience for your customers. Show Notes: [00:37] Today's episode is all about partitioning. I love partitioning! It is such an under-discussed concept. [02:39] Partitioning has shown us that when you put tiny barriers into place it causes a consumer to consider their options and be presented with a new decision point. This can be good or bad on both sides depending on the situation. [04:33] Melina shares a study with bottomless soup bowls. [06:34] Another study found that adding some sort of measurement reminder can help reduce consumption even if the cups are large. [08:45] One study found that once something became common it no longer acted as a partitioning mechanism. [10:21] It isn't just effort that matters but drawing the attention of the conscious brain really matters too. [12:56] It is so easy to be tricked by our brains. [15:07] Those with a high aversion to gambling were significantly impacted by the partitions. [16:24] Partitioning money has also been found to help people save more and spend less. [17:26] Essential with shopping…once you start the process of spending you are more likely to spend again until you hit a partition. [19:07] Any cognitive intervention (something that makes the user stop and think) can trigger partitioning. This can be done using sounds, rhetorical questions, targets, or progress markers. [21:37] It doesn't have to feel bad or negative for the consumer. [23:41] The cashier in an airport store bringing up the price of the almonds and forcing us to rethink our decision multiple times caused anticipated regret and lowered the total amount spent significantly. [25:18] It is easy to talk people out of a sale, make them feel bad about a purchase, or start to regret it even when you are trying to be helpful. [26:07] Setting up targets or progress markers, on the other hand, can be great partitions for a business to set up to keep on the radar of their current, past or potential customers. [27:21] Removing partitions and obstacles can be great for businesses and customers alike. [29:29] Partitions in the selling process are a recipe for getting ghosted. Always schedule circle-back meetings in the moment. [32:03] Make it easy for people to do business with you. Remove unnecessary partitions in the process and everyone will be happier. [32:13] Melina's closing thoughts [32:42] The concept of partitioning can help you to look for opportunities to make it easier to work with you, especially up front. Partitions are particularly dangerous early on and in the selling process. 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. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. 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 Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! Learn and Support The Brainy Business: Check out and get your copies of Melina's Books. Get the Books Mentioned on (or related to) this Episode: What Your Customer Wants and Can't Tell You, by Melina Palmer Fri

You've heard him before discussing the "Science of Cool" in 2021, and I'm thrilled to say that Dr. Troy Campbell is back. And, because it's fun to keep things interesting, Troy and I are flipping the script in today's episode. What does that mean? Troy is here to showcase his Define & Apply Framework, something he does with clients in his role as Chief Scientist at On Your Feet and has done in the past with his work -- including spots he has held with Disney, Netflix, Nike, and as a professor at the University of Oregon. Instead of just telling us about it, though, we are going to walk through and experience it and, he suggested that he be the one doing the interviewing with me as the one answering the questions today. This is the third time we have flipped the script like this on The Brainy Business podcast. You definitely don't want to miss handing over the reins so we can all learn to define and apply together. Show Notes: [00:42] In today's conversation, I am joined by Dr. Troy Campbell, who was on the show back in 2021 talking about the science of cool. [02:25] Troy is taking over the reins as host, and our beloved Melina is the guest on the show today. [02:44] On this episode, we are going to deeply define ideas to be able to powerfully apply them across many areas. We will deeply define one idea from Melina's book What Your Employees Need and Can't Tell You. [04:07] Burnt popcorn is the aspect of priming when we are specifically talking about change management. [07:03] Melina shares an example of a burnt popcorn email she received. [09:52] It is so easy to create burnt popcorn. Burnt popcorn can poison the day (week, month, year…). [12:07] You can guarantee they are going to be looking at the worst possible context of whatever it is that you are saying if you prime and set it up in certain ways. ("Not to be rude, but…" "Don't take this the wrong way, but…") [13:16] These mundane actions can create hours, days, and weeks of stress that can be avoided with a few seconds of better thought. [14:33] There are small things you can easily adjust and very quickly see a positive impact. [16:52] When it comes to a presentation, consider where you want people to be at the end. What is the most important thing you want from this one event? [19:07] Using really good images is important for priming in presentations. [21:03] You can tell a lot in 90 seconds. [24:13] Anchoring on something really bad to make the thing you are sharing seem better can definitely be burnt popcorn. The "not true" thing you said will not dissipate. [26:28] If you give the brain a focus and then try to change that focus, it is still going to be stuck on that thing in most situations. [29:45] Take the time to do the research and know who you are talking to. [31:44] We do really weird stuff that can come off as burnt popcorn. [34:42] Through the book writing process there are glimmers of fun that Melina and other authors like to include. [37:39] When you are not great with humor, many people lean toward self-deprecating humor. Melina advises against that…especially if you are trying to build authority. [39:14] She shares the Wizard of Oz reference from her book and what she meant by, "Glinda may have been a good witch, but she was a terrible manager." [41:29] Knowing where people are, where they are going, and the right points where you can be giving those nudges of encouragement, feedback, or support before they entered into a scary forest is something you can be doing as a manager to help. [43:57] So many things become easier when you are thoughtful about how you present information. [46:11] It doesn't take a lot to make it so that things are better for those around you and yourself. [48:57] It is one thing to go to Disneyland and it is another thing to build Disneyland. [49:56] Melina's closing thoughts [51:45] Troy's define and apply process is about teasing out what you do in a particular area and figuring out why it works. Get to the details about what makes it special and then expand it into other areas that may seem unrelated but are so relevant when you stop and make the effort. 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. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. 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 Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation

Today's episode is all about priming. This is something I talk about all the time, so if you have heard me speak or have read my books, or have been listening to the podcast for a while, chances are this isn't the first time you are hearing about this concept. Next to framing it is probably the thing I talk about the most. While framing's lesson is that how you say something matters more than what you say, priming shows us that whatever happens just before a moment of decision or action is very important in influencing the decision that is made. Yes, there are many examples as we get into the episode, so I won't get into it too much right now. In the "It's Not About the Cookie" framework, priming is the scent of the cookies or the burnt popcorn when we are talking about change management like in my second book, What Your Employees Need and Can't Tell You. At the core of priming, we have the way that the brain filters information and how we make associations. These can be very literal like how we see an apple in the grocery store and are reminded of the company, and that can influence behavior or it can be more of a filter that impacts how we see people or think about a product or service. We can be primed to buy using all of our senses, and it is important to consider them all as you think about your own messaging. As you listen to the episode today, I want you to consider all the senses and how they can impact behavior. Taking a step back and thinking holistically about your experience and looking for opportunities that are outside the norm, are great ways to incorporate priming and all the senses into your messaging. It may seem silly, but I encourage you to think with all your senses and wonder, "What might that look like? (or taste like or smell like...) Show Notes: [00:37] Today's episode is all about priming. This is something I talk about all the time, so if you have heard me speak or have read my books, or have been listening to the podcast for a while, chances are this isn't the first time you are hearing about this concept. [01:56] We can be primed to buy using all of our senses, and it is important to consider them all as you think about your own messaging. [03:24] One of my favorite ways to start a foundations show is with a game or a series of questions to help you see how the concept works before I start explaining and today's episode is no different. [05:33] Your brain is lazy and incredibly busy, so it takes these shortcuts all the time. [07:45] The effects of priming wear off quickly as our brain is quickly churning through information. Primes are everywhere and it's not just about anchoring and adjustment. [09:05] Priming is about more than just numbers. It can also be done with words. [12:43] Melina shares the results of a university study where people were primed with polite and rude words. [15:25] Prime yourself and psych yourself up before you take any test. The brain can be very easily primed. An amazing example from Olympians. [17:11] The first step of visualization is to know what you want. Next, describe your vision in detail. Step three is to start visualizing and creating the emotions. Step four is to take daily action and step five is to have grit and preserve. [18:31] We can be primed with physical objects as well. Melina share's a study about students holding an iced versus hot coffee. [19:48] Always drink hot tea or coffee and get hot drinks for people you want to make a good impression on. [21:48] Everything you do and say matters and similarly whatever was said or done right before everything you do or say matters. [22:34] You can't control everything. It is worth looking at the things you can control. Take the extra step to evaluate if you are spending the money and buying things. [24:29] Small things, just a few simple words, can make a huge difference. [26:35] You are priming your brain to take on the traits of those outside influences. [28:01] In all these studies, people said they were not influenced by the items, words, or numbers or that they didn't even see them. It may not register on a conscious level but it is getting in there even if people don't realize it. [29:00] Marketing and advertising takes dedication and focus, consistent presence and messaging to break through the clutter, and making sure you are using the right primes to keep things moving in the proper direction instead of derailing the whole thing. Know your brand and who you are in the most simplest form. [29:35] Melina's closing thoughts [31:24] One more thing that is so important to consider with priming, is to know that this isn't exacting and you should not expect the results to be fully generalizable. 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. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by m

In today's conversation, I am joined by Dr. Mike Rucker, author of the brand new book, The Fun Habit, which just came out a couple of days ago on January 3, 2023. Mike is an organizational psychologist and charter member of the International Positive Psychology Association whose work has been published in the International Journal of Workplace Health Management and Nutrition Research. His ideas about fun and health have been featured in The Wall Street Journal, The Washington Post, Fast Company, The Telegraph, Psychology Today, Forbes, Vox, Thrive Global, Mindbodygreen, and more. He was named one of ten digital changemakers by the Healthcare Information and Management Systems Society, and currently serves as a senior leader at Active Wellness. And, not surprisingly, today's conversation is all about fun! We also talk about framing and word choice and how fun and change really do go together. It's a great chat that I can't wait to share with you. Show Notes: [00:41] In today's conversation, I am joined by Dr. Mike Rucker, author of the brand new book The Fun Habit. [02:32] Mike shares about himself and his background. He is an organizational psychologist by trade but focuses more on behavioral science. [02:44] His new book, The Fun Habit looks at living a life more joyfully through actively pursuing the activities you engage in rather than pursuing happiness. [04:04] From 2009-2016 he optimized his life and tried to extrapolate as much happiness as he could. [06:33] He found out that the more he tried to chase happiness the unhappier he was and he wanted to figure out why. [09:08] We can have more longevity with certain tasks if we add a component that makes it pleasurable for us. We do mundane things – with a little creativity, we can reframe them. [12:07] If we take control over how we spend our time and we bias it towards fun things, ultimately we are going to perceive the world in a more positive and optimistic light. [14:41] If you don't take time off the table for yourself you are not showing up as the best version of yourself. [16:42] When our lives are overly habituated and we are always doing the same stuff we store those memories as single units. [18:58] Most people live this habituated life and that becomes comfortable, but you forget that you can have a little bit of time for yourself. [20:42] Disruption is a great opportunity for change. [21:42] The initial step is to sit down and brainstorm what you would like to do more for fun. This could include past hobbies, things you authentically feel connected to, and things you long to do. Par your list down to 8-15 things so it is actionable. [23:34] An important second step is to make sure it is not an exercise of adding things to your already busy life. Mike suggests doing a time audit. [26:16] We need to swap out the "low-hanging fruit" activities for ones that light us up more. [27:15] First create space in your schedule. Once you have that, use the list you made to integrate things that are more fun into your life. [28:29] A lot of times the biggest impact is looking for a way to change an activity so it is better, or adding something on. [30:56] When you hear about fun interventions at work you need to make sure everyone can come in and have fun at the activity in a safe place. Leaders need to be setting an example. [33:07] Fun in the workplace generally unites you around a common goal. Cohesion comes from wanting to accomplish something together. [35:16] Because our brains work in micro-moments and microdecisions, we really need to be looking at the little things. (Change is more than just the big stuff that requires a project team.) [38:00] People who have a best friend at work are more loyal, happier, engaged, and better employees. Helping to incorporate fun and allowing people to connect is valuable. [40:45] You can either empower the individual so that they can have more fun and more vitality when they come back to the office or you can create it from an empathic standpoint where you are creating opportunities for organic fun. [41:37] Fun is not the same for everyone. [42:56] If the outcome of whatever you are trying to do can still be the same but allow people to do it in a way that feels comfortable to them, you are going to have more fun every time. [44:10] Melina's closing thoughts [44:54] We are a species that is meant to have fun. We should take the time and make the effort to bring fun back into our lives. 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. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensa

Today's episode is all about temptation bundling, and before we talk about what that is, can we take a minute to celebrate the milestone that is this episode?! This is the 250TH EPISODE of The Brainy Business podcast!!! What an amazing way to kick off 2023. I would love to say that I planned it that way, but it was more serendipitous than anything (I think that's how we know it was meant to be). One thing that has allowed me to write, record and set up 250 episodes (along with everything else I do each week) is temptation bundling, which is the focus of today's episode. This one originally aired as number 136 in January 2021, and there is a reason I chose to have it back again to kick off the year. Temptation bundling is a great way to help you reach goals by making something mundane, boring or hard more enjoyable and likely to be completed. Don't get me wrong, I love creating the podcast. It is fun to learn and share and I do enjoy it. However, it has plenty of mundane stuff that needs to be done to keep it moving, so a little temptation bundling is very helpful in getting this and so many other aspects of my life and work moving forward when it might be easier or more tempting to put it off. Listen in for all the ins and outs of temptation bundling and how you can use it for your own life and work. Show Notes: [00:39] Today's episode is all about temptation bundling, but first, we must celebrate 250 episodes! [01:49] Temptation bundling is a great way to help you reach goals by making something mundane, boring or hard more enjoyable and likely to be completed. [02:54] One of my favorite things about temptation bundling is how simple it is. [04:42] Temptation bundling is taking something you should do but may have a longer-term reward and may not be super appealing at the moment…and bundling it with something you really want to do right now. [06:53] A slight change in routine can upend newly formed habits and make it hard to start up again if you aren't careful. [08:11] Pretty much anything can be a candidate for the bundle. What you set up doesn't need to be what someone else would want or need. [09:46] Temptation bundling uses a "now" activity to achieve a longer-term goal and overcome time discounting. [10:16] Don't feel like you need to bundle things simultaneously. Most multitasking doesn't work well. [11:05] Start by looking for something you love to do in your spare time. If you had a free day, what would be at the top of your list? [12:52] It is important to have that reward tied to the action you need to take now to be successful. [13:39] Temptation bundling is everywhere. You just have to find the cheese to your own personal life broccoli and you will be achieving goals left and right. [13:49] Melina's closing thoughts [14:33] It doesn't matter if this is in the "manufactured happiness' category. Our brains look at natural happiness and manufactured or synthetic happiness in pretty much the same way. [15:08] One of my other favorite things about temptation bundling, is that it allows you to get more done. 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. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. 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 Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! Learn and Support The Brainy Business: Check out and get your copies of Melina's Books. Get the Books Mentioned on (or related to) this Episode: How To Change, by Katy Milkman Get It Done, by Ayelet Fishbach Happier Hour, by Cassie Holmes Indistractable, by Nir Eyal The Fun Habit, by Mike Rucker Top Recommended Next Episode: How To Change, an interview Dr. Katy Milkman (ep 151) Already Heard That One? Try These: Get It Done: Surprising Lessons from the Science of Motivation with Ayelet Fishbach (ep 186) How to Make 2023 Your Best Year Ever with Ayelet Fishbach and Cassie Holmes (ep 249) How to Set, Achieve & Exceed Brainy Goals (ep 248) The Brainy Benefits of Gratitude (ep 236) Bikeshedding (ep 99) Time Discounting (ep 51) Optimism Bias (ep 34) Negativity Bias (ep 223) Framing (ep 16) Loss Aversion (ep 9) How to Organize Your Brain with Behavioral Economics (ep 83) Other Important Links: Brainy Bites - Melina's LinkedIn Newsletter Holding the Hunger Games Hostage at the Gym: An Evaluation of Temptation Bundling Katy Milkman on Twitter

Happy (almost) New Year! This is the last episode of 2022, coming out on December 30 – and what a year it has been! My second book, What Your Employees Need and Can't Tell You came out in October, and I got to do a book signing at the Sam's Club Auditorium which was amazing! I also got to speak at some amazing conferences, including travel to Amsterdam and for multiple groups in Latin America, had students from around the world in the certificate program at Texas A&M, got to work with amazing clients and so much more. I can't wait to see what 2023 has in store. One of the things I am most excited about is speaking at SXSW in Austin in March. Well, speaking of 2023 being an amazing year, that's what this episode is all about. I've done something a little bit different in this episode by bringing on two guests to do a panel of sorts. One of them you have met before, Ayelet Fishbach, Professor of Behavioral Science and Marketing at the University of Chicago and author of Get It Done, which came out earlier this year. Our other panelist, Cassie Holmes, is a professor at UCLA who wrote the new book Happier Hour, which is so beyond fantastic. She specializes in the science of happiness and talks about time poverty and so many other amazing things. (Don't worry, we have a full interview that is all about Cassie and her work coming out in early 2023.) In today's episode, that topic is having the best, happiest year by understanding the science of motivation, goals, achievement, happiness, mindset, and more. Listen in to find out how you can make 2023 your best year yet! Show Notes: [00:06] In today's episode, I am excited to welcome Ayelet Fishbach and Cassie Holmes to discuss how you can have the best year ever. [01:15] Forty-six different guests have joined me on the show this year including those in today's interview. We also started testing out releasing two episodes a week. [04:51] Today I have brought together two people from different universities studying somewhat different (but arguably related) topics to have a discussion about how their work compliments (or contradicts) one another. Today's topic is having the best happiest year by understanding the science of motivation, goals, achievement, happiness, mindset, our thoughts towards time, and more. [06:21] Ayelet shares about herself, her background, and what she does. She is a motivational scientist. [07:47] Cassie shares about herself, her background, and what she does. She is a professor that studies happiness and life satisfaction. [10:25] We are talking about how to help people have better, more successful years in 2023. [11:24] Around the time the year ends and the new year begins, people are thinking about what they want to achieve. However, there is a likelihood that you will forget about your resolution. [13:27] You have a wonderful opportunity to reflect back on the prior year. [16:08] When we feel like we are constantly rushing or hurrying, we are more reactive in how we invest our time instead of proactive and investing in those things that really matter. [19:02] Looking back is often a way to reaffirm your commitment. [21:58] Set goals that you can see yourself doing right now and what will make you feel good right now. [22:41] A year is not the right time frame for many goals. A year has a very long middle. Often weekly and monthly goals are better. [24:57] Folks who take a broader perspective of time report greater meaning and satisfaction and are happier in their days. [26:44] Invest time in ways that are worthwhile. The particular activity you are engaging in and also how you are engaging in that activity are what makes the activity worthwhile. [28:37] You constantly need to navigate the motivation and priorities of your goals. [30:42] We often get stuck on the little stuff that doesn't really matter instead of focusing on the most important things that help us to move forward on a bigger goal. A to-do list can be a distraction from our higher-value goals. [32:56] Melina shares four things that work against us: optimism bias, time discounting, planning fallacy, and bikeshedding. [34:12] Progress is motivating – progress feels good – which is why we often love our to-do lists. [36:18] You want to ask why you are doing the thing you are doing. You also want to ask how questions. [39:29] Those who treated their weekend like a vacation were significantly happier when they returned to work and enjoyed the weekend more. Our weekends are meant to be breaks so we can return feeling refreshed and motivated. [41:26] We need to be intentional and carve out spaces for true breaks during the week – at least once, ideally more. [46:20] It is important to create the right balance between our goals and the activities that help us achieve the goals. [49:31] Restructure your day in a way that makes more sense for the goals that you have for yourself for the week and year. [51:32] It is often harder to learn when you are working from home and not with other

Today's episode is all about brainy goals — how to set them and think about them to put you on a path to success, instead of inadvertently setting yourself up to fail. Now, you would never intentionally set up goals that won't work out, but our brains are programmed in a way that makes it so we consistently stack the cards against ourselves. We try to do too much, spread ourselves too thin, rely on willpower to get us through, and don't understand the importance that tiny habits play in our ability to accomplish big things. At this time of year (this is the second to last episode before we close out 2022) most people are thinking about planning and what the next year will bring for them. How things will be different, what they want to accomplish, what habits they want to change if they will plan resolutions (and if so...what they are), and the like. That's why I decided to refresh this episode from 2019 right now. It felt like the perfect way to end the year, especially in light of this coming Friday's topic! That episode is a panel of sorts that incorporates expert advice on how to have a happier 2023 and set your year up for success. So to get you in the right mindset preparing for that, and just because it is probably something you are already thinking about right now, it felt like the right time to talk about goals. I get a lot done — two podcast episodes a week, a weekly newsletter, two books in less than two years, teaching and creating my courses for Texas A&M, speaking, consulting, and still having time for an enjoyable life with my family. The only way that is possible is by tackling and thinking about goals in a brainy way. Listen in to hear all my tips and tricks. Show Notes: [00:23] Today's episode is all about brainy goals — how to set them and think about them to put you on a path to success, instead of inadvertently setting yourself up to fail. [05:17] We all have goals and are all optimistic that we will achieve them someday. The truth is that if you don't set your goals up correctly there is a good chance life will move too fast and you won't achieve what you are capable of. [05:52] There are three main tips for setting and achieving brainy goals. Define your goals and limit them to know more than three. Break down the path to achieving those goals into small steps. Say no to everything else. [07:11] The opposite of distraction is traction. [09:55] Step one is to limit and set your goals. You first need to list out every goal you would like to accomplish in the next 5, 10, or 50 years. [10:48] Now you have to pick three. If they make sense to combine and make the goal a little more amazing that's okay but make sure it's logical. [12:07] Your brain doesn't like change. It is scared of it. Keeping you stuck and dwelling on making things perfect or being really sure are tactics by your brain to delay change. [14:06] It is important to declare and own those top goals so that everyone in your life knows what is most important and is on board with that. [16:47] Melina shares a story about her taking a walk with her husband to the mailbox and Puerto Vallarta. [19:25] We are sticking with goals and priorities we set in a cold state because they are what matter in our life. [20:53] Once you know what those top three are the next step is to break each of those three goals into the small steps it will take to get there. [22:54] You can't do it all at once. There are a few ways you can break those down. One way I recommend is breaking the big lifetime into subgoals for the year. [24:33] Start small with the thing that is impossible to justify not doing. [26:17] Every goal is reached in lots of small steps. Goals are the sum of all the effort it took to get there. If you don't plan for the small steps they won't happen. [26:49] Remind your brain of the top three as much as possible in as many different ways as you possibly can. [28:17] You need to be incredibly particular about what you surround yourself with in your life, in your life, and everywhere. [30:49] Reminding your subconscious of your goals as often as possible will help keep you on track. [31:14] Determine what three things are really important to you. Shout them from the rooftops and put every single egg in their baskets. [27:41] Melina's closing thoughts 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. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let's connect: [email protected] The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Bus

In today's conversation, I am joined by Dr. Dolly Chugh. Dolly is a social psychologist and management professor at the New York University Stern School of Business where she teaches MBA courses in leadership and management. Dolly is well-known for her teaching and facilitation skills. She was one of six professors chosen from thousands at New York University to receive the Distinguished Teaching Award in 2020 and one of five to receive the Dr. Martin Luther King Jr. Faculty Award in 2013. Dolly's research focuses on "bounded ethicality," which she describes as the "psychology of good people." Her work has been published in leading psychology, economics, and management journals, and cited by many books and authors. Prior to becoming an academic, Dolly worked at Morgan Stanley, Merrill Lynch, Sibson and Company, Scholastic, and Time Inc. Dolly attended Cornell University where she majored in psychology and economics for her undergraduate degree and Harvard University for her MBA and Ph.D. As you will hear in the episode, this is a really personal one for me that hits home for a reason that I haven't really talked about much on the show. Hopefully, it is well received and you understand why I brought it up today, and why I intend to talk about it more in the future. Show Notes: [00:43] In today's conversation, I am joined by Dr. Dolly Chug. Dolly is a social psychologist and management professor at the New York University Stern School of Business where she teaches MBA courses in leadership and management. [02:54] This is a really personal one for me that hits home for a reason that I haven't really talked about much on the show. [04:35] Dolly shares about herself, her background, and her work. She is currently a professor. Her research focuses on the psychology of good people. [06:36] People didn't understand how her double majors went together but they were both about human behavior. [09:19] She shares how her book, A More Just Future came about. [12:20] After reading the Little House on the Prairie series with her children, on a family trip to visit the area she had many realizations about the history and time period. She pushed it aside at the time, but it kept coming up down the road. [13:45] She decided she wanted to better understand our relationship with our past as well as our emotional relationship with our country. She wanted to leverage what social psychologists and other social scientists know to offer us tools so we just don't push them aside. [16:09] We see the past as farther away and blurrier than the future. [17:12] Understanding today requires me to understand yesterday. [19:44] When we are in a hot emotional state we are more action-oriented. [21:40] Our minds unconsciously invest in the status quo even when it doesn't benefit us. It protects the default. [23:08] On almost every meaningful outcome that you can think of there is a racial disparity in the United States. [24:22] Our brains will justify the systems around us. That is the system justification theory or what she calls the "Good Guys Win Mindset." It leads us to accept things as they are. [26:23] The cognitive task of accepting that two contradictory statements can both be true is incredibly important. [28:13] The paradox mindset is a really powerful tool that we can use when we are trying to understand all these contradictions in our past and present. [29:27] What is the one little thing you can do right now that might be the spark of something new and being able to make that change? [30:07] The book was a very deep personal journey for Melina. She shares more about her journey (and that of her family) being Alaska Native (Tlingit and Tsimshian). [32:19] The past isn't that far away. [33:18] There are a lot of ways that the past spills into the present through our word, our beliefs, and our trauma. [35:52] Melina shares how important preserving her native culture is for her and what she is doing with her son to preserve their culture. [37:25] Dolly's book has helped Melina to take steps forward in preserving the culture instead of letting it simmer in her own mind. [39:21] We all have some family history that we either cherish, don't know, or are embarrassed by. Understanding how that lives in the present is very interesting and we absolutely bring that to work with us. [42:02] Check out Dolly's newsletter, Dear Good People. [43:24] Melina's closing thoughts 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. I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let's connect: Melina@TheBrainyBusiness