Behavioural Economics can provide valuable insights for marketers and explains patterns of customer behaviour. It helps brands to react to consumers' emotional demands and can rationalise seemingly incongruous actions. However, some commentators question how relevant these insights are, given that most of the research focuses on individual, Western responses and does not account for nuances.

Definition

Behavioural economics describes the subconscious drivers of consumer purchase and intent which often contradict conventional economic principles.

Key insights

1. Undertaking a behavioural economics audit of communications can maximise effectiveness

Behavioural science has defined concepts and frameworks that, applied as part of a design process, can significantly improve the impact of everyday communications such as customer letters, and emails, providing simple tools for a more systematic approach to effective communication. To apply behavioural science to optimise everyday communications, consider the following:

  • Define the desired behavioural response to the piece of communication
  • Understand the context in which the comms will be received
  • Conduct a BE audit of the comms – analysing and optimising it using insights from behavioural science and thinking through this 3 step analytical process:
    • What is wrong with the existing comms
    • What is right but could be stronger
    • What behavioural science concepts are not being used and could be
  • Pilot and test the optimised version