Feb 21, 2023
Today’s episode is all about herding. We humans are a herding
species, just like cows and sheep and guppies, and this has a big
impact on our behavior. We are tribal and we look to others to help
us stay safe and make good decisions. Or, at least, what our
subconscious tells us is a good decision. :) This is why things
like testimonials are so important.
Herding has a dedicated chapter in my first book, What Your
Customer Wants and Can’t Tell You because they are so important for
businesses to understand.
The reason I chose to refresh this episode is because of the
guest who is joining me this coming Friday, Nick Epley. We talk
about the importance of social connection and why we often don’t do
the things that will help us to be happier because we perceive them
as being uncomfortable or awkward or against the social norms in
the moment.
In the business context, imagine how much value could come from
having a simple chat with your colleagues or people at a
conference. Most people probably stick to their groups where they
are already comfortable and don’t strike up a conversation, but
what could happen if you did? There is a lot of value in breaking
from the herd and having that conversation, even for less than a
minute, which we will talk about more on Friday when episode 265
with Dr. Nick Epley comes out.
And as you listen today, I encourage you to reflect on all the
times you thought about striking up a conversation or asking a
question and didn’t. What aspects of herding made you feel like you
shouldn’t and what can you do in the future to engage with others
more? It is valuable for you both professionally and personally, I
promise.
Show Notes:
- [00:39] Today’s episode is all about herding. We humans are a
herding species, just like cows and sheep and guppies, and this has
a big impact on our behavior.
- [02:21] In the business context, imagine how much value could
come from having a simple chat with your colleagues or people at a
conference.
- [04:07] Humans herd in the same way as other species for most
of the same reasons. The main reason animals herd is for
protection.
- [05:41] Herding is in our nature.
- [08:02] Herding helps us learn by observation. Watching where
others go and following the group keeps you safe.
- [09:38] As humans have evolved, herding behavior has not always
served us well. Herding is there to protect individuals, not the
group or a complex society as a whole.
- [11:41] We choose restaurants by online reviews and
crowdedness. We think the people must know something we
don’t.
- [12:58] People are more likely to leave tips when others have
done it.
- [15:51] Herding mentality is much more likely to come out when
people feel vulnerable or are unsure of
themselves.
- [17:23] It is better to be conventionally wrong than
unconventionally right.
- [18:58] Studies have shown that up to 75% of participants will
give an answer they know is wrong to go with the group.
- [21:07] When everyone follows the herd and doesn’t take the
time to do their own research stocks or companies get artificially
inflated by the confidence of others.
- [23:42] Crypto is absolutely impacted by the herd
mentality.
- [24:16] Always beware if your brain is making you feel anxious
to take steps and do something just because everyone is doing it or
having your FOMO triggered in a way that makes you want to do less
research before investing your time, energy, or other
resources.
- [27:48] People like to be part of the group and this is
increased when the other people in the group are comparable and
more like you.
- [28:14] Whatever your business does, you are in the business of
solving problems. The only reason people buy anything is to solve a
problem.
- [30:52] Being in a group makes us feel safe and happy because
of this release of oxytocin. When we are not part of the group, our
brains do whatever they can to get that bliss feeling back by
seeking out more group relationships to help us feel safe and
warm.
- [33:28] while we can’t change our natural tendency to herd, you
do have options to change your behavior.
- [34:28] Understanding what will trigger herd mentality in your
customers for both good and bad can help you to message better and
more effectively.
- [36:52] If you really care about starting a movement, have the
courage to follow and show others how to follow. When you find a
lone nut doing something great, have the guts to be the first one
to stand up and join in.
- [37:09] Melina’s closing thoughts
- [40:52] Be thoughtful with the numbers you put out into the
world, and consider the herding implications for what you want
people to do in the long run.
- [41:59] Consider how social norms and herding instincts may
keep you from having conversations with other people.
Thanks for listening. Don’t forget to subscribe on Apple
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If you like what you heard, please leave a
review on iTunes and share what you liked about the
show.
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