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155. What is Behavioral Baking?

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 start?” 

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. 

Show Notes:

  • [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 comfort zone.
  • [04:56] Each new step presents another opportunity to learn, but you will grow as you rise to each challenge. 
  • [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 mode.
  • [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 foundation. 
  • [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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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.

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