If you understand how the human brain makes decisions, you can also predict how your customers will act at a given decision point. And how the right communication can influence the decision in the direction you want. In your job as a marketer, you can use these thumb rules to create understanding, encourage new behaviors and simplify the choice of your products. In short: sell more.
Let’s start with the bias Daniel Kahneman calls Status Quo Bias.
People are creatures of habit. We sit in the same seat at breakfast, take the same route to work, buy the same coffee every week, etc.
Why? Because it makes life easier. Changing routines or habits requires thinking. The more we repeat a habit, the stronger the “autopilot” becomes. Often we’re not even aware of what we’re doing — acting on reflex, even if it sometimes has negative consequences.
People hate change
Status quo bias explains why we eat more when we eat from large plates — we fill them proportionally as to smaller ones. It also explains why we stick with familiar brands in the store. We’ve decided once and for all that we prefer brand X. And so on.
It takes a lot to make us switch. 80% of insurance policies are renewed with the same company, even when premiums increase significantly. Evaluating new options often feels like too much effort.The more complex a decision, the more likely we are to delay it. That’s why up to 50% of all business decisions often drag on — it’s simply easier not to decide now.
This is where default options matter. They have a powerful influence on our decision. Think of electricity contract renewals: when the letter says “You currently have a fixed one-year agreement. If you do nothing, it will continue for another year.” Voilà — problem solved!
Status quo bias for better business
Two simple principles:
- Want to keep customers? Make them feel secure and safe in your relation – so secure they don’t even consider alternatives.
- Want to win new customers? Shake them up – show them it’s worth the trouble to make a new decision. Tip: Start with small, easy decisions – like trying the product for free or attending a seminar. If successful a key step is taken towards a relation and a little nudge is often all they need to go all in.
Status quo bias tool kit
- What automatic behaviors can you initiate or prolong with default options?Can you make people feel the decision is already made by offering an easy choice?
- Can you reinforce rituals (e.g. through smells, sounds, holidays) that cue certain behaviors?
- Win: How can you reduce the effort required to adopt a new behavior, ie to win over a customer from competition? Push a small, easy decision to start with
- Keep: How can you emphasize how tiring or unnecessary it is to change behavior (eg switch suppliers) to block competitors? Maybe to highlight all education needed, risk of failures, etc
Do you want to know more about how to win new customers, just reach out to ulf.vanselius@comprend.com