Apr 3, 2020
I am very excited to introduce
you to Dr. Sudy Majd, a behavioral scientist applying concepts from
behavioral economics in business. Sudy has always been interested
in how people behave. Right out of college, she worked for a
consulting firm that enabled her to travel all over the world to
study consumer behavior. She then got a PhD in Psychology at
Columbia where she focused on consumer decision making. She is now
a consultant and on the advisory board of startup Candid™.
In today’s episode, we talk
about a couple of specific projects she did on behalf of
Candid™, a company that helps people straighten their
teeth with clear aligners without ever having to go into an office.
Sudy has been bringing behavioral science out of the lab and
academia, and testing things within a real business. She shares how
applying behavioral economics principles in a real business setting
had unexpected results, and she discovered that the business
questions were more complex than she realized.
This is that concept of “finding
the right answer to the wrong question” you hear me talk about on
the show often, and the value of “questionstorming” – which I teach
to many of my clients and with the group of members in the
- [02:23] Dr. Sudy Majd has been interested in
how people behave for most of her career. Right out of college, She
worked for a consulting firm that enabled her to travel all over
the world and observe how people behave to make recommendations to
- [03:03] She then got a PhD in Psychology at
Columbia where she focused on consumer decision making.
- [03:16] This gave her insight into why people
make decisions and how to influence those decisions.
- [03:27] She then started working at tech
startup Candid™. She also works with other clients to help
incorporate behavioral science into their businesses.
- [04:08] Sudy shares a story of how consumer
behavior ended up being different than she expected it to
- [05:02] Many Candid™ customers didn't return their kits with
impressions and photos, so that wouldn't result in a
- [05:43] They added cards that incorporated
behavioral science into the copy, and the return rate became worse
(hindsight helps, I offer up a reason it may not have been
- [07:45] Humans have a lot of conflicting things
going on in their lives, one card wasn't enough to push them over
- [09:21] They decided to identify psychological
traits of customers who were and weren't returning their
- [10:52] They implemented feedback loops with
penalties or rewards. This was a different way of framing the
message with loss aversion and incentives. This also included
nudging, time discounting, and herding (links to past episodes
- [12:05] The penalty framing worked the best.
These customers converted worse but were cheaper to
- [14:19] Marketing is to get people interested
enough to take the next step.
- [16:30] They always incorporated customer
feedback to figure out why something was happening.
- [18:17] Have the user see themselves in your
brand and use their language to describe the product.
- [21:18] Sudy thinks the future of behavioral
science is testing it in actual businesses. She loves discovering
how the physical design of retail spaces influence how people
- [22:41] She would also like to incorporate
behavioral science theories into big data applications.
- [26:25] Having something that doesn't work
teaches you as much as something that does work.
- [29:17] Testing is key to the growth and
success of any business. Keep trying and improving.
Thanks for listening. Don’t
forget to subscribe on
Android. If you like
what you heard, please leave a
review on iTunes
and share what you liked about the