Everyone knows the average person is subjected to a ridiculous amount of information daily. As a result, our brain needs to subconsciously prioritise what’s important and look for clever ways to process information more efficiently. This is particularly true in human decision-making. Our minds often take shortcuts, leading to patterns of thinking that subtly nudge us away from pure objectivity. These mental tendencies, known as cognitive biases, play a significant role in shaping our perceptions, judgments, and ultimately, our choices. Becoming aware that this process is going on in the background of other people’s minds is crucial for anyone seeking to improve their persuasion efforts.
Consider this: as a small business owner, have you ever found yourself favouring information that supports your existing business strategies, perhaps overlooking warning signs that challenge your chosen path? Alternatively, as a corporate professional, have you ever made decisions based on the initial piece of information you encountered, only to realise later that your judgment might have been anchored to that first impression?
These scenarios are not mere quirks; they are manifestations of cognitive biases that influence us all. By becoming familiar with common biases, we can develop the power to craft messages and strategies that resonate with the intricacies of the human minds of our target audience members. It is akin to unlocking the secret code of human behaviour.
Confirmation Bias
Our first example is probably one of the better-known types of psychological bias. Confirmation bias is a powerful cognitive tendency where individuals seek, interpret, and remember information in a way that confirms their pre-existing beliefs.
Let’s consider a hypothetical example. Two colleagues, Alex and Taylor, are discussing strategies for a new project. Alex believes that adopting a more conservative approach is the key to success, emphasising thorough planning and risk mitigation. Alternatively, Taylor favours a more adventurous strategy, advocating for innovation and taking bold risks.
Alex and Taylor come across an industry report that contains information supporting their respective viewpoints. Alex notices sections highlighting the success stories of companies that took a more cautious approach, reinforcing the belief that a careful strategy is the way to go. Simultaneously, Taylor focuses on portions of the report that showcase innovative companies thriving in the market, affirming the benefits of bold decision-making.
In this scenario, both Alex and Taylor interpret the same information in a way that aligns with their existing beliefs. This selective interpretation reinforces their initial viewpoints, illustrating how confirmation bias can influence individual perceptions and decision-making processes.
There are ways you can make confirmation bias work for you.
Imagine you are launching a new product or service for your business. By understanding the established bias of your target customers, you can tailor your marketing messages to align with the existing beliefs and preferences of your target audience. You might do this by:
- Highlighting aspects of your offering that resonate with their established viewpoints, makes it more likely for them to perceive your product or service in a positive light.
- Crafting marketing materials that subtly affirm the values and choices your audience already holds, creates a sense of familiarity and connection.
Confirmation bias can help your ideas and proposals gain traction in a typical corporate environment. By subtly weaving data and arguments that confirm the existing beliefs of your colleagues or superiors, you can build consensus and support for your proposals. Consider your next presentation and think about how you can align your ideas with what your colleagues want to believe. However, it’s crucial to balance this strategy with a commitment to presenting objective and relevant information to avoid veering into manipulation.
Anchoring Bias
Another great example is the anchoring bias. This occurs when individuals become overly reliant on the first piece of information they encounter (the “anchor”) when making decisions. For this reason, it is crucial to set a positive initial tone when attempting to persuade someone. For example, presenting a compelling fact at the outset can serve as an anchor, influencing how subsequent information is perceived.
A classic example of this can be seen in pricing. When determining a pricing strategy, a business owner may decide to display the original price (higher) alongside the discounted price during a limited-time promotion. This decision is rooted in the anchoring bias. By showcasing the higher original price as the anchor, customers perceive the discounted price as a significant savings opportunity. The initial high price creates a mental reference point (anchor) that influences customers’ perception of value. This anchoring technique can lead customers to perceive the discounted price as more favourable than if it were presented in isolation. Of course, the original price needs to be reasonable, if it was overly exaggerated consumers will see straight through it as a cheap marketing trick.
Similarly, a manager may use anchoring bias during negotiations. For instance, when discussing budgets for a project, the manager could start with a higher proposed budget before settling on the actual, more reasonable budget. The initial higher figure serves as an anchor, making the final proposed budget appear more acceptable in comparison.
Loss Aversion
Loss aversion is the tendency to prefer avoiding losses over acquiring equivalent gains. Persuasion efforts that emphasise potential losses or missed opportunities can tap into this bias, encouraging individuals to take desired actions to avert perceived losses.
Imagine someone has invested in stocks. They purchase a particular stock, and soon after, its value starts to decline. They then face a decision: they can sell the stock at a loss and reinvest in a potentially more profitable option, or they can hold onto the declining stock with the hope that its value will eventually rise. In this scenario, loss aversion might influence the decision. Even if selling the declining stock and moving the investment elsewhere could potentially lead to gains, the fear of realising a loss might make our investor reluctant to sell. They might choose to hold onto the stock, hoping that its value will recover, driven by the desire to avoid the immediate loss associated with selling at a lower price. In this way, loss aversion can lead individuals to make choices that, from a purely rational standpoint, might not maximise their gains but are driven by the instinct to avoid losses.
Now imagine an e-commerce store strategically applying loss aversion in their marketing tactics. For instance, they offer a limited-time promotion where customers receive a special discount after making a certain number of purchases. The fear of missing out on the exclusive discount creates a sense of loss aversion, encouraging customers to make additional purchases to secure the discount (even though they end up spending more than they “saved” by securing the discount).
A manager might also use loss aversion to motivate their team members. For example, during a project, the manager could highlight the potential missed opportunities or setbacks if the team doesn’t meet a specific deadline. The emphasis on what could be lost, whether it’s a competitive advantage, a market opportunity or even a bumper end-of-year bonus, taps into the psychological principle of loss aversion to drive motivation and productivity.
The Bandwagon Effect
Another great example of a cognitive bias is the bandwagon effect. This is the inclination to adopt certain behaviours or beliefs because others are doing so. This phenomenon can be seen all around us from fashion trends to diets and health fads, even to people ploughing their life savings into the latest crypto meme coin. In persuasion, leveraging the bandwagon effect usually involves highlighting the popularity or widespread acceptance of a particular idea, product, or course of action, making it more appealing to the audience.
While this form of cognitive bias is often associated with popular trends even a small, independent coffee shop could use it to enhance their marketing strategy in their local community. They might start by introducing a limited-time offer for a new, unique blend of coffee. To generate a buzz, they could encourage early adopters among their regular customers to share their experience on social media using a specific hashtag, perhaps something catchy like #LocalBrewTrend. As more customers try and share their positive experiences online, it creates social proof that this new blend is not only delicious but also trendy. Others in the community, seeing their peers enjoying and recommending the coffee, become curious and want to be part of the trend. Finally, to turn it up a notch, the coffee shop could market the new blend as a limited for a short period of time. This scarcity creates a sense of urgency, encouraging more customers to jump on the bandwagon before they miss out.
On a larger scale, a similar strategy was employed by Prime energy drinks, creating an enormous amount of energy and obsession around their beverages.
The bandwagon effect can also be observed in corporate decision-making. If a particular strategy or technology gains widespread adoption within the industry, companies may be more inclined to follow suit, even if they haven’t thoroughly evaluated its suitability for their specific needs. It’s not uncommon to hear about a company purchasing a new product or software only to discover upon implementation that it is wholly unsuitable for their business. The fear of being left behind or missing out on the perceived benefits creates a bandwagon effect, where businesses join the trend without independent validation of the decision’s merit. A professional can deploy the power of this effect by highlighting how their ideas and proposals align with cutting-edge industry best practices.
Hindsight Bias
Finally, we have hindsight bias. This involves the inclination to see events as having been predictable after they have already occurred. A great example of this is the millions of armchair coaches who proudly preach what they would have done differently after a professional sports match has already concluded. After all, it’s easy to say “I wouldn’t have kept that player on the pitch” when you already know they had a terrible game.
In persuasion, crafting messages that subtly imply foresight or inevitability can enhance the persuasiveness of the narrative. The trick for a small business owner or corporate professional trying to persuade others is to align their proposals with certain outcomes that have already happened. For example, an investment manager might pitch a new product and highlight how it shares characteristics with another product that enjoyed tremendous success.
Conclusion
In conclusion, there are several ways you can tap into cognitive bias to strengthen your persuasive efforts. The next time you sit down write a marketing plan for your products or services or create a strategy for how you plan to convince colleagues and superiors to support your idea, have a read through this list and see if you can get a helping hand from the built-in biases that we all have.