Finder: Subconscious drives 95 per cent of purchasing decisions

Neuromarketing is a must if brands are going to better tap into the minds of consumers, says the online site's marketing leader

google-brain-100664138-orig.jpg
google-brain-100664138-orig.jpg

People’s subconscious drives 95 per cent of their purchasing decisions.

This is not necessarily something marketers want to hear, but true nonetheless, said Arron Child, head of neuromarketing at Finder, at the recent ADMA Global Forum. Understanding the subconscious and how it works can lead to the ability to better predict outcomes, he said, which is where neuromarketing can assist.

Neuromarketing uses insights about the brain and human behaviour to drive marketing strategies and decisions. It uses three lenses: Neuroscience, which shows how the brain has evolved over millions of years and stores and processes information; behavioural economics, which is how the brain finds shortcuts to make decisions; and psychology, which is about feelings and emotions.

“When you use the same insights and data as your competitors, you’re basically using luck. This started a quest to understand how the subconscious processes information, stores information, drives decisions, and why some things are more memorable than others,” Child said.

“What happens is information is interpreted through our subconscious first, and then reinterpreted through our conscious minds. We can’t help but read what’s in the front of us and it take effort for us to make decisions beyond that."

This is because the brain interprets 11 million bits of information every second, but the conscious mind can only interpret 40 bits of information every second. So the way information is presented determines how it is acted upon.

“We know the number of options presented to us impacts the way we make decisions. Something like decision paralysis is caused by the presentation of too many options, because then there can be a lot of wrong answers so people would rather not make a decision at all," Child continued. “We can see this in the price decoy effect, or how limits affect purchasing behaviour. If you put a limit on the amount someone can buy, they buy more than they ordinarily would.

“We know we are not very good at saving money for retirement, it rates about the same as giving money to a stranger as we have no empathy with our future selves. But when researchers aged a photo of a person to 70 years old, and suddenly they could empathise with their future selves and make the right decisions.”

Child said it is important to make an emotional connection because all decisions are made emotionally. In fact, emotional ads outperform rational ads in every single business sector.

“Research shows you have to show a brand four times in 30 second TVC to achieve brand recall. You also need to inject a brand into the ad at the highest point of the emotional journey, which also leads to brand recall.

“There is also the power of associations. We have 100 billion brain cells in our heads, and when you think of something, the brain searches through all that data and comes up with the most relevant answer.”

Child went on to say people feel loss twice as much as wins, and we are hardwired to find and improve social status, and are constantly comparing ourselves with others. That being said, neuromarketing is not a magic cure.   

“We can draw people’s attention and interest towards something, but it’s up to the brand to fulfil that promise. People are savvy.”

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu 

 

 

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Launch marketing council Episode 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

Hi,When online retailers establish their multi channel strategy and they are using or will to use live chatbot to support their customers...

Alice Labs Pte. Ltd.

CMO's top 8 martech stories for the week - 6 May 2021

Read more

Thanks for nice information regarding Account-based Marketing. PRO IT MELBOURNE is best SEO Agency in Melbourne have a team of profession...

PRO IT MELBOURNE

Cultivating engaging content in Account-based Marketing (ABM)

Read more

The best part: optimizing your site for SEO enables you to generate high traffic, and hence free B2B lead generation. This is done throug...

Sergiu Alexei

The top 6 content challenges facing B2B firms

Read more

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Check out tiny twig for comfy and soft organic baby clothes.

Morgan mendoza

Binge and The Iconic launch Inactivewear clothing line

Read more

Blog Posts

Getting privacy right in a first-party data world

With continued advances in marketing technology, data privacy continues to play catchup in terms of regulation, safety and use. The laws that do exist are open to interpretation and potential misuse and that has led to consumer mistrust and increasing calls for a stronger regulatory framework to protect personal information.

Furqan Wasif

Head of biddable media, Tug

​Beyond greenwashing: Why brands need to get their house in order first

Environmental, Social and (Corporate) Governance is a hot topic for brands right now. But before you start thinking about doing good, Craig Flanders says you best sort out the basics.

Craig Flanders

CEO, Spinach

​The value of collaboration: how to keep it together

Through the ages, from the fields to the factories to the office towers and now to our kitchen tables, collaboration has played a pivotal role in how we live and work. Together. We find partners, live as families, socialise in groups and work as teams. Ultimately, we rely on these collaborative structures to survive and thrive.

Rich Curtis

CEO, FutureBrand A/NZ

Sign in