Behavioral Science is the study of how humans behave and why they do what they do. It is a broad domain that combines insights from a wide range of interdisciplinary fields and considers numerous factors such as economic, social, geographic, cultural, and psychological to draw a conclusion.
The human brain is one of the most complex structures in the world and behavioral science helps you understand how it works. This allows brands to understand the needs of consumers in a better way to create and deliver solutions that will fulfill those needs. Moreover, it also helps them in establishing their brand identity and boosting brand perception.
If businesses want to get inside the head of their customers and know what they think about their products and how they make purchase decisions, they will have to learn the consumer instincts and implement the aspects of behavioral science in their business processes. If you are still not sure whether you should take behavioral science and psychological factors seriously while making business decisions, then this article will help you learn why it is a better idea…
In this article, you will learn about seven solid reasons why integrating behavioral science elements into your business can accelerate business growth.
Why do you Need to Integrate Behavior Science in your Business Strategy?
1 Gain a Competitive Advantage
Despite its many benefits, very few companies take advantage of behavioral sciences. Even those who do, limit it to Consulting Strategists or Agencies. You might not find many companies implementing Behavioral Science in a corporate environment. This means that there are no Behavioral Scientists in those companies.
If you can leverage behavioral science, it can give you a competitive edge over your peers. In today’s highly competitive business environments, that can prove to be a big differentiator which can make your business stand out from the crowd and get noticed. You will suddenly start to get more media attention and steal the limelight. Make sure you wrest that competitive advantage quickly before other companies jump on behavioral science bandwagon.
2 Change Your Mindset
One of the first differences you will notice when you incorporate behavioral science is, change in the approach and the mindset of the customers. Your business will start to see things from a different perspective.
For instance, instead of following the traditional approach of creating a product first and see how customers respond to it, you will focus more on understanding user pain points and create a product that fulfills user needs. By putting the customer first, your products will perform much better because they are designed with customer needs in mind.
3 Develop Good Business Habits
Did you know that acquiring a new customer costs businesses five times more than retaining the existing customers? That is why businesses want to build a loyal customer base which keeps purchasing their products and keep using their services.
Hence, to build a loyal client base, you will have to induce your target customers forming a habit of consuming your product and behavioral science can help you with that.
That is the reason why popular brands have started hiring Product Managers with a major in Psychology. The advantage of this practice is that if your business growth is stagnant or slowing down, they easily mend the situation through customer-centric product ideas.
4 Attract and Retain Customers
While we are on the topic of attracting and retaining customers, let’s have a look at how behavioral science can help your brand in attracting and retaining customers.
By developing a deeper understanding of how your target audience behaves and considering psychological factors related to consumer behavior, you can design a hyper-targeted marketing campaign and advertisement materials that can strike the right chord, persuading them to take the desired action you want. App development engineers can also use these tactics to build user-friendly products.
Most importantly, you can create different marketing strategies for each type of customer segmentation or even market based on their behavior and preferences. For example, you can offer exclusive incentives to your loyal customers and make them feel special or attract new customers by offering irresistible deals for first-time buyers or new customers.
5 Keep Customers Hooked
With attention spans of users hitting an all-time low, brands are not only struggling to grab the attention of their target audience, but they are also finding it difficult to keep them engaged. The more you know about your customer’s preferences and behavior, there is a better chance for you to keep them engaged.
You can design ads, visuals, and design a digital marketing campaign that can immediately grab their attention and keep them hooked. This allows you to reduce the bounce rate and increase the conversion rate.
6 Develop a Positive Brand Perception
What you want your customers to think about your brand is usually different from what customers think about your brand. This disconnection can be the main reason if you fail to have a positive brand image. With psychology and behavioral sciences, you can understand what your audience values the most and can tailor your brand identity based on that.
For instance, if your target audience values trust and long-term relationships more than everything else, your brand should invest time and money in building trust and relationships. This will change your brand perception from negative to positive. Behavioral science also lets you zero in on factors that influence the purchase decision of your consumers.
7 Deliver Personalized Experiences
Last but certainly not least is creating personalized experiences for your users. Every user is different and they have their unique needs. Behavioral science gives you an in-depth perspective of how each user is different and helps the brands cater to their unique needs. This allows them to create exotic customer experiences and streamline communication.
Whether it is a personalized email message offering a solution to our biggest problem or a social media post directly addressing our biggest concerns, personalized messaging tend to outperform any form of marketing. The same goes true for online shopping. If your E-commerce store offers a personalized shopping experience, products will fly off your shelves.
Sometimes big results are brought in by small actions. Implementing the best practices of behavioral science in your business can prove to be one such action. Human behavior is the single most important attribute that has a disproportionate effect on the success of your business. If your employees are motivated their productivity increases by 12-25% depending on various factors and the industries they serve.
How do you think that you can use behavioral science in business?