Jun 4, 2021
Today I am excited to share a
favorite analogy I came up with while writing my book,
What Your Customer Wants and
Can’t Tell You. It has
also been awesome to see how well this is resonating with readers,
at speaking engagements, and in the interviews I’ve done so far. It
is one of those great comparisons that people just
get. Which I love!
I know a lot of people have been
asking questions like “How do I start applying behavioral economics
in my business?” or “What is the best approach?” or “Where do I
This idea of behavioral baking
is my answer. Because it has resonated so well, I felt it needed
its own dedicated episode, so here we are.
- [00:06] Today’s episode is all
about behavioral baking.
- [02:21] Once you have an
understanding of some key concepts in behavioral economics, it is
time to start combining them for application.
- [03:18] Understanding the
ingredients is important as you get started. A very basic knowledge
can get you ready for some easy recipes. You will probably start
out with something simple like a boxed mix as you establish a
- [04:56] Each new step presents
another opportunity to learn, but you will grow as you rise to each
- [05:19] Lesson: even when you
are trying to copy something, it is harder than it looks and will
take a little practice to master that new technique.
- [05:52] The ingredients you
learn about individually at first are the concepts. They are your
butter, sugar, flour, and eggs.
- [07:28] You don’t need every
single ingredient every single time, and you don’t need to be too
heavy-handed with any ingredient. What you DO need to know before
you jump in is…what are you making!?
- [08:04] This is the part where
most businesses go wrong, not spending enough time really
understanding the problem before jumping into solution
- [10:23] An example where I used
this in my corporate work.
- [11:53] Choices are relative
and heavily context-dependent.
- [12:25] Working with the brain
will make it easier to understand and solve problems in your
business. But if you don’t take the time up front to understand
what you are trying to accomplish, you will still be throwing
noodles at the wall.
- [13:49] With the consequences
so distant, it is easy to ignore and not change behavior. And
still, your logical brain’s approach would likely be to go with
logical arguments for why this matters.
- [15:50] Your brain is
programmed to wonder what could be (optimism bias) and fear for
what might happen if you choose to leave it there and it was a
winner (loss aversion).
- [17:12] Change doesn’t have to
be hard. Changing the natural rules of the subconscious brain that
have been developing for generations is hard. Understanding them
and working with those habits can make seemingly insurmountable
changes become easy.
- [18:38] The result is often more important than the
path to get there.
- [19:56] Understanding the
result you want to help your customer, member, or client experience
is so important.
- [20:29] Remember that your
brain will want to educate and feel like throwing in some extra
logic “couldn’t hurt,” but it absolutely can.
- [22:02] Trying to force
education can actually backfire and cause people to make worse
decisions in multiple areas of life. Once their brain is calmer
they may have the bandwidth to learn more and build on the
- [24:03] Behavioral baking is a
way of thinking that can help you use behavioral economics to get
to that outcome.
- [26:25] I’ve been a big baker
my whole life. Listeners have suggested it might be fun to have me
share recipes from The Brainy Business and what I’m baking (to keep
the behavioral baking concept going)...what do you think? Good idea
or weird? Let me know using the links below.
- [27:21] The result is often
more important than the path to get there.
- [30:19] Melina’s first
book, What Your Customer
Wants and Can’t Tell You is officially available on Amazon, Bookshop, Barnes &
Noble, Book Depository, and Booktopia.
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what you heard, please leave a
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