We get it. As financial services marketers, we worship the data gods. Bounce rates, clickthroughs, conversions – the numbers don’t lie. We’ve been told to always follow the data. Test. Optimise. Repeat.
But that data probably isn’t telling us the full story, right? Relying solely on analytics ignores the ‘why’ behind consumer behaviour. And without understanding the why, we can’t actually ‘innovate’ – a word that gets thrown around like a frisbee in the marketing world, but can be achieved with the right balance of creativity and understanding your customer intentions.
So, how do we uncover the why? From our experience, it’s best when we look beyond the data and embrace behavioural psychology.
The Power of Behavioural Psychology
Behavioural psychology provides unique insights into the cognitive biases, motivations and social influences that drive human behaviour to explain why people make certain decisions. For instance, it reveals that humans have:
- Loss aversion – we hate losing more than we like gaining
- Herd mentality – we follow the crowd
- A self-serving bias – we attribute positive events and successes (like financial status) to our own character or actions, but blame negative results on external factors unrelated to our character
These innate biases inevitably impact financial decisions. A behavioural insight exposes the invisible drivers shaping your customers’ choices – which traditional data tracking misses.
With this understanding, we can create more resonant messaging and shape future behaviour – rather than just optimising based on past data.
Take our recent work with behavioural science experts IB for the launch of My Home Move Conveyancing. Through stakeholder interviews and employee surveys, we were able to uncover deep psychological insights around their customers’ emotional drivers, such as the significance of moving home causing a deep psychological tension around choosing the right conveyancer, and therefore choosing companies who give them a sense of reassurance and control – with trust generally trumping price. As a result, we were able to inspire a brand completely different from any in the market to better connect with homebuyers.
Feel, Don’t Follow
Many marketers question whether logic and emotion play equal roles. But we think it’s a no-brainer that the two are intrinsically linked.
Neuropsychology shows that 95% of thought, emotion and learning occur in the subconscious mind. We actually feel first and think second. So, while you may be tracking the logical data, you’re missing the power of emotion that’s guiding your customer’s decisions.
Lean into that. Don’t be afraid to appeal to emotion alongside reason. Help customers feel understood through messaging that addresses their deeper motivations and insecurities.
Innovate with Insight
We know you’re probably thinking: understanding emotions and psychology sounds great, but at the end of the day, we need to drive results and ROI.
We agree. That’s why we think behavioural psychology and innovation go hand-in-hand. Once you uncover the ‘why,’ you can create truly customer-centric products that deliver on unmet needs. Gain really great insights, and you can develop something that really connects.
For example, in a proposition workshop with LV=, we found that their sales thrived when discussing tailored product features with advisers. So we developed the LV= Protection Matchmaker: a digital tool that empowers advisers to customise protection discussions, addressing client needs and risks by considering factors like age, occupation, family and finances – providing value to the client while aligning with LV=’s core value proposition.
When you lead with behavioural insights, innovation follows. And those innovations are grounded in genuine consumer understanding – which will ultimately drive growth.
It All Connects
At its core, behavioural psychology helps you rediscover your humanity as a brand. It provides a refreshed perspective that reconnects you to the people you serve.
But importantly, it also enables marketing that drives results. When you know what truly moves consumers, you can create stand-out messaging and products that fulfil unmet needs.
So don’t just follow the data. Uncover the invisible forces shaping your customers’ financial decisions. Don’t rely on cold numbers alone. Appeal to emotion alongside reason. And lean on behavioural insights to drive innovation that combines ROI with authenticity.