Our behavioural biases impact our decision making. We might not always say what we think and we might not always do what we say. Theories of strategy, innovation and conventional economics have previously worked on the assumption that people are rational beings. Yet, when it comes to how we make decisions, and what influences our behaviour, we do not always seem to be as rational as we might have once thought. So why is this significant? And what can we do about it?
We know that companies are investing in technology and asking consumers what they think about new products and services. This is a vital part of any company’s strategy. They invest heavily in exploring and delivering products and services that consumers have said they like, intend to buy and use. Yet, once on the market, only 20% prove to be a success and 80% of the time, they fail to meet expectations. Why is that? What goes wrong? Is it that consumers have collectively been lying to us? Just asking consumers what they want is one thing, but, unfortunately, consumers do not always think and decide in the same way. Perhaps we have simply been asking the wrong questions to consumers.
By mixing strategy and innovation with breakthrough knowledge of behavioural science, we will learn how to achieve better success rates. This will provide a fresh perspective on understanding and transforming people’s behaviour, both consumers and employees. This combination offers us a powerful framework for better understanding and influencing people’s actions. When companies actively pursue the benefits of behavioural science, in relation to their employees, consumers, leadership teams and other actors, the payoff can be huge.