452. Embracing Negative Reviews: Behavioral Economics Insights

The Brainy Business | Understanding the Psychology of Why People Buy | Behavioral Economics

In this episode of The Brainy Business podcast, Melina Palmer dives into the topic of negative reviews and how to approach them with insights from behavioral economics. Melina shares personal anecdotes and expert insights, including a fascinating tidbit from her friend Kurt Nelson and Dr. Robert Cialdini about the ideal star rating sweet spot for conversions. She explores why negative reviews stick with us more than positive ones, touching on psychological concepts like herding instincts, social proof, the focusing illusion, and cognitive dissonance. With practical advice on responding to reviews and understanding your brand's core values, this episode is a must-listen for anyone looking to turn negative feedback into a positive learning experience.

In this episode:

• Learn why negative reviews can be beneficial and how to reframe your perception of them.
• Understand the psychological reasons behind why negative reviews affect us more than positive ones.
• Discover strategies for responding to negative reviews that align with your brand's values.
• Explore the importance of knowing your customer and focusing on those who resonate with your brand.
• Gain insights into how to handle reviews without apologizing unnecessarily.

Show Notes:

00:00:00 - Introduction Melina Palmer introduces the episode's focus on negative reviews and behavioral economics.

00:02:30 - The Sweet Spot for Reviews Melina shares insights from Kurt Nelson and Dr. Cialdini about the ideal star rating for conversions.

00:11:00 - Why Negative Reviews Stick Discussion on psychological factors like herding instincts and the focusing illusion.

00:20:15 - Responding to Reviews Tips on how to respond to reviews thoughtfully and align with your brand's values.

00:30:00 - Knowing Your Customer The importance of focusing on customers who resonate with your brand.

00:40:00 - Apologizing and Acknowledging How to acknowledge feedback without unnecessary apologies.

00:48:47 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.

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Get the Books Mentioned on (or related to) this Episode:

• What Your Customer Wants and Can't Tell You, by Melina Palmer
• Influence, by Robert Cialdini
• Alchemy, by Rory Sutherland
• Nudge, by Richard Thaler & Cass Sunstein
• Metaphors We Live By, by George Lakoff and Mark Johnson

Top Recommended Next Episode: Surprise & Delight (ep 276)

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• The Most Important Step In Applying Behavioral Economics: Understanding the Problem (ep 126)
• Anchoring & Adjustment (ep 394)
• How To Create a Brainy Brand (Refreshed Episode) (ep 230)

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