The Psychology Of Money: 4 Take-Aways from Breakfast and Brainfood

UK Director at Vested

Katie Spreadbury

UK Director

Earlier this week, we held our latest Breakfast and Brainfood event in London. Simon Moore, Chief Psychologist at InnovationBubble, led us through the inner workings of our mind–but more importantly, the minds of the audiences we’re helping our clients to reach day-in and day out. The early morning start brought together communications and marketing professionals from across the financial services industry to understand more about how our brains work,  which enables us to be better communicators.

The event’s lively debate definitely gave us food for thought, so we’re excited to share what we learned.

We make over 35,000 decisions every day and less than 1 percent of these are made consciously.

For those of you that have read Nobel Prize-winning book ‘Thinking Fast and Slow” by Daniel Kahneman, you will know that the brain uses two systems to process information and make decisions; system one being subconscious and system two being conscious. Only 70-100 of those 35,000 decisions we make use system two, which means that when we’re communicating with clients, we’re dealing with their subconscious decision-making process.  It is this kind of thinking that exposes us to their cognitive and motivational biases, which brings us to our next two points.

It’s emotions that persuade, not facts

Emotions are 400 percent more impactful on decisional outcomes than facts and figures. Great news for those of us that an industry like ours that relies on facts and figures in our communication! Facts activate memory and categorisation (20 percent of the brain’s attention), whereas stories activate emotions (80 percent of the brain’s attention).

Your brain gives four times more weighting to negative information

It’s so often the case that clients will talk to you about the new product that their teams are creating, or what they think the industry needs. However, when it comes to keeping customers happy, it’s often the small, incremental improvements to their existing products and service experience keeps them happy – and most importantly reduces any negative experiences they might have.

People want a frictionless experience, not a frictionless brand

We’ll often hear clients talk about becoming a “frictionless brand,” but according to science, people like friction – it makes them feel important. Being somebody who has solved a problem plays to everybody’s ego. Think of when you’re booking a holiday – most people like searching through hotels, villas and looking for nearby beaches. They also like telling their friends about the great deal they found, or the cute untouched part of a well-Instagrammed city they were able to discover. The need for no friction comes when it’s time to book. It’s the experience that needs to be frictionless, not the brand.

If this sort of psychological debate and investigation as to what works for audiences is what gets you out of bed in the morning please get in touch. It’s the sort of topic we love to debate and will be the subject of future events you could join.