Behavioural economics: Understanding the human factor
Behavioural economics blends psychology and economics to understand how people make decisions. It acknowledges that individuals aren't always rational actors and that cognitive biases, emotions, and social influences play a significant role in our choices.
Hiring a freelance behavioural economist can provide valuable insights into your target audience, optimise your products and services, and ultimately drive better business outcomes.
What to look for in a freelance behavioural economist
When searching for a freelancer with expertise in behavioural economics, consider the following:
- Academic background: Look for a strong foundation in economics, psychology, or a related field. A postgraduate degree is often a good indicator of advanced knowledge.
- Practical experience: Seek out freelancers who have applied their knowledge in real-world settings. Experience in market research, user experience (UX) design, or policy analysis can be particularly valuable.
- Analytical skills: A strong grasp of statistical analysis and research methodologies is crucial for interpreting data and drawing meaningful conclusions.
- Communication skills: The ability to explain complex concepts clearly and concisely is essential for effectively communicating insights to stakeholders.
Main expertise areas to inquire about
Behavioural economics encompasses a range of specialisations. When interviewing potential freelancers, explore their expertise in areas such as:
- Choice architecture: Designing environments that nudge individuals towards desired behaviours.
- Cognitive biases: Understanding and mitigating the impact of cognitive biases on decision-making.
- Pricing strategies: Optimising pricing models to maximise revenue and customer satisfaction.
- Risk perception: Analysing how individuals perceive and respond to risk.
- Behavioural change interventions: Developing strategies to promote positive behavioural change.
Relevant interview questions
Here are some questions to ask potential freelancers:
- Can you describe a project where you applied behavioural economics principles to solve a business problem?
- How do you stay up-to-date with the latest research in behavioural economics?
- What are some common cognitive biases that influence consumer behaviour, and how can they be addressed?
- Explain your approach to designing a behavioural experiment.
- How would you communicate your findings and recommendations to a non-technical audience?
Tips for shortlisting candidates
- Review portfolios and case studies to assess the freelancer's practical experience.
- Look for evidence of successful projects and a clear understanding of behavioural economics principles.
- Check testimonials and client reviews to gauge their professionalism and communication skills.
Potential red flags
Be wary of freelancers who:
- Overpromise or guarantee unrealistic results.
- Lack a strong understanding of research methodologies.
- Cannot provide clear examples of their previous work.
- Struggle to explain complex concepts in a simple way.
Typical complementary skills
Behavioural economics often works well with skills like:
- Data analysis
- Market research
- UX design
- Copywriting
What problems can a freelance behavioural economist solve?
Hiring a freelance behavioural economist can help you:
- Improve conversion rates: By understanding the psychological drivers of customer behaviour, you can optimise your website, marketing materials, and sales processes to increase conversions.
- Develop more effective marketing campaigns: Apply behavioural insights to craft persuasive messaging that resonates with your target audience.
- Design better products and services: Incorporate behavioural principles into the design process to create products and services that meet the real needs and desires of your users. For example, a subscription service might use 'loss aversion' by highlighting what users stand to lose if they cancel.
- Increase customer loyalty: Use behavioural economics to build stronger relationships with your customers and encourage repeat business. A loyalty programme that uses points and rewards leverages several behavioural principles.
- Make better business decisions: By understanding how cognitive biases can affect decision-making, you can make more informed and rational choices.
By understanding the nuances of human behaviour, a skilled behavioural economist can provide valuable insights that drive positive change within your organisation. Whether you're looking to improve marketing effectiveness, boost customer engagement, or optimise your product development process, a freelance behavioural economist can be a valuable asset to your team.
