Why behavioural economics in b2b marketing will change what you do and how you do it. Insight into how the use of buyer psychology is changing how businesses can influence buyers and prospects throughout the buyer journey. For more information or to talk Behavioural Economics in business-to-business marketing email info@earnest-agency.com

1. Behavioural economics
in B2B marketing
Why it’ll change what you do, and
how you do it.

2. This presentation is about Behavioural Economics
and why it’s important to all those who work in B2B
marketing.
In addition, we outline some key concepts that are
relevant to B2B
● How we decide: two ways of thinking
● Framing
● Perception – and what this means for making decisions
● Choice architecture
● Goal drivers – do we align to something our audience cares about
Overview

3. Context: we’re in the business of persuasion
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“Open this email”
“Come to this event”
“Download this
whitepaper”
“Follow us!”
“Buy my stuff”

4. So how’s that going?
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Too often we miss the
mark
And when something
works, we have no real
idea why it worked…

5. People are really weird
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We try and be rational.
We try to reason with people.
But people are people.
Most of the time, they’re not
rational or even reasonable.

6. Proof: persuasion is predictably unpredictable
Vs
Which works best?
Just evoking a robot smile is bizarrely more
likely to make us slow down (and stay slow)
than the very rational threat of £120.

7. We’re all under
pressure
for accountability
We use DATA to tell
us
WHAT works.
But we still have
nothing that helps us
understand WHY
B2B marketers: we have a problem…

8. What is it?
Behavioural Economics mixes human psychology and
neuro-science to scientifically test what people do under
certain decision-making scenarios, and from this understand
why people do what they do.
This field of study has led to a Nobel Prize (Daniel
Kahneman), and most importantly for us, a scientific
framework to use in marketing – all based on empirical
evidence and the science of how decision-making is
determined.
And what it is not:
● Some bizarre form of human manipulation
● A silver bullet
This is where Behavioural Economics comes in
Other terms
you’ll hear bandied
around
Neuro-marketing
Decision science
Buyer psychology

9. The science: three uncomfortable truths

10. The science: three uncomfortable truths

11. The science: three uncomfortable truths

12. WHY? WHY? WHY?
In 20,000 years of evolution, our
DNA is (nearly) the same. Deep
seated, unconscious thoughts
thousands of years old still govern
our behaviour.
Behavioural economics studies
have proved this, and given real
clarity to how we make decisions
and what our real motivations are.
So if you’re in B2B marketing, why
would you not want to know
more?

13. There is a huge amount of material available
● Research papers
● Books
● Blogs
● Articles
We think there a few key concepts established
by behavioural economics that are particularly
relevant to B2B.
Getting practical: concepts that are relevant to B2B marketing

14. And these are:
Goal drivers:
universal drivers that decide how our marketing is accepted (or not)
Choice architecture:
too much, too little, and we’re lost
Perception:
how we decode the world around us
Framing:
how our objective view is always subjective

15. But underpinning all this – two systems of thinking
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What did you think about
this morning?
What tasks & actions did
you do?
Were they the same?

16. A science-based framework for marketing
Source: D Kahneman. Thinking Fast and Slow

17. This is how our brains like to operate
Source: D Kahneman. Thinking Fast and Slow

18. Some scary stats

19. Which means our top priority is:
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Engage system 1,
not just system 2
Cognitive ease

20. How should we, in marketing, make it easy?

21. Language
‘Descriptively obvious’
headlines, titles etc
Say it once, say it twice,
say it thrice and so on
Being a ‘system 1’ marketer: some things we can all
change tomorrow
Simple clear language actually helps
thought leadership, expert positioning
and consultancy-led selling and
positioning
Follows the language point. But if we
make people think too much, people
skip and move on
Repetition aids believability, reduces
perceived risk and moves a brand or
message into the auto-pilot

24. Answer: use the most important frame available. Your brand!
How can we use framing in marketing?
Brand
Product
Brand
Product
Brand
Product

25. Why is the brand frame of almost unlimited value?
● From our days in the jungle, we’re scared of change.
● Repetitive familiarity breeds trust
● Brands create that repetitive familiarity
● It’s an anchor – allowing us to land new products, services etc
Behavioural economics proving the value of brand investment…?
Cognitive
ease
Buyable!
Brand
Repetition
Familiar

26. Framing and our terrible ability to make decisions
14%
86%
0%
Here’s what
happened when
The Economist
launched three
subscription
packages.

27. Framing and our terrible ability to make decisions
86%
14%
Here’s what
happened when
they removed
the middle one.

28. Choice architecture

29. Choice architecture

30. Goal drivers
“To understand people one needs
to understand what leads them to
act as they do, and to understand
what leads them to act as they do
one needs to know their goals.”

31. Consumer goal driver framework
Source: P Barden. Decoded

32. Consumer example: goal alignment to differentiate product parity
Source: P Barden. Decoded

33. Earnest Goal Matrix: Implicit Goal Drivers in B2B
Progress
Stimulation
Recognition
Avoidance
Obligation
Control
PROMOTIONPREVENTION
I need to do this to get ahead
I need to do this to learn /
because it looks interesting
I need to do this to look good
I need to avoid losing out /
losing something
I need to do this because it’s
expected of me
I need to do this to stay in
control
Gain an advantage over
others; Lead the field
Personal discovery;
Learning experience;
Receive acclaim;
advance career
Be secure; Prevent losses;
Avoid threats
Need to comply; fulfill
promises; Be true to my
word
Stay on top; Maintain
status quo; Be empowered
Go-getter
Status
seeker
Adventurer
Worrier
Controller
Box-ticker
Implicit goals Primary driver Motivations Persona

34. •A scientific input to everything we do
•Less subjective debate
•Do stuff (propositions, brands, campaigns, offers) that actually
work
Or even:
Fundamentally change the perception of marketing?
Summary: why is all this important

35. Conclusion

36. Some further reading
Thinking fast and slow
D Kahnemann
Predictably Irrational
Dan Ariely
Decoded
Phil Barden

37. Interesting?
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@earnestagency
Http://blog.earnest-agency/blog