Behavioural economics in marketing: how to do it right
We like to think we’re rational. That we weigh our options. Compare features. Read the small print.
But then we buy the more expensive wine because it’s on the right of the menu. We go with the product that has more five-star reviews, never mind that the cheaper one works just as well. We click the red button, because it feels more urgent.
And suddenly, “rational” looks more like a story we tell ourselves after we’ve already made the choice.
The hidden forces behind every click
Behavioural science has taught us what economists always suspected but couldn’t prove: People don’t always choose what’s best, they choose what’s easiest, most familiar, or most emotionally satisfying in the moment.
Enter loss aversion. Framing effects. Social proof. Tools that let marketers shape choices without ever forcing them. This isn’t manipulation. It’s just… smart marketing. Until it’s not.
The mirror and the manipulator
Here’s the line: using behavioural insights to help people eat better, save money or make more confident decisions? That’s value.
Using the same tools to convince someone with no savings to take out a high-interest loan or place a bet they can’t afford? That’s not clever. That’s not “data-driven.” That’s just being an asshole. And we all know this.
The trick isn’t knowing the tactic, it’s knowing when to stop or never to start at all.
How to use irrationality well
The real power of behavioural insights is in designing better defaults. Simplifying complexity. Reducing friction. Making decisions feel more confident, not more anxious.
Want more signups? Show social proof, yes but make sure the value is clear too. Want fewer abandoned carts? Use urgency but ground it in actual availability. Want people to switch to a sustainable option? Reframe the norm, not the guilt.
These aren’t tricks. They’re recognitions of how people really decide: in context, under pressure, with half their attention and most of their emotion.
When used with care, behavioural science doesn’t just make marketing more effective. It makes products easier to choose, services easier to trust, and brands easier to remember.
