Thanks to the brave and brilliant contributions of one renegade, economic theory as we know it has been changed forever.
Richard Thaler, the world-renowned behavioral economist who has long challenged the standard economic model, was awarded the Nobel Memorial Prize earlier this month. His work, which Nobel Prize committee member Peter Gärdenfors simplified as “[making] economics more human,” has influenced our education system as well as government policy.
Thaler joins a small list of behavioral economists to win the award. Robert J. Shiller was among the winners in 2013, and Thaler’s longtime collaborator and friend, Daniel Kahneman, shared the award in 2002. Though they won before him, it is Thaler who is widely credited with bringing behavioral economic theories to the mainstream.
Thaler has dedicated his life to helping people understand how individuals make choices so that they can be led to make better ones. His best-selling book, Nudge, was the culmination of decades of behavioral science research, and was written to prevent people from making mistakes that can negatively affect their individual and collective well-being. That’s an inspiring mission, and one that resonates with all of us here at DiMassimo Goldstein.
We use behavioral change marketing to drive growth in brands and businesses that change lives for the better. We study the work of behavioral pioneers like Thaler to become experts at providing our clients with the strategies they need to drive profound behavioral change in the areas of healthy, wealthy and wise. Understanding human behavior is key to empowering brands to provide their consumers with a self-actualizing experience, — and that experience is what will ultimately inspire them to make better decisions and form more empowering habits.
This has been our mission for 21 years, and it’s never been more important than it is today.
We applaud people like Thaler for continuing to push the conversation forward, and for persuading more people to pay attention to human behavior. To read more about Thaler and his work, check out this article in The New York Times.
Congratulations on the honor, Richard, and keep up the good work!
Brands and businesses are stubborn.
And why wouldn’t they be? They’re run by humans, and we’re the most stubborn species of all.
We don’t just hate change, we loathe it. We run the other way and resist it at all costs.
And businesses, like humans, are also creatures of habit. They love their routines, and when successful, they love them even more. In these routines, they’re safe – so they repeat them until they become automatic.
But this behavior is dangerous, and for businesses, it’s downright deadly.
By nature, CEO’s and CMO’s fixate on control, and change is the antithesis of control. It brings upon the very thing they work so hard to avoid: uncertainty. It can mean abandoning the strategies and practices that got them where they are today – and worst of all, it almost always means more work.
But the world is changing, and to be successful, your brand and business must change with it.
It’s how IBM, a company that was selling cheese slicers 106 years ago is now leading the conversation on Artificial Intelligence.
It’s how Marvel, a comic book company that went bankrupt in 1996, now has two of the top ten highest grossing films of all time.
It’s how our inspiring client, Weight Watchers, transformed from a weight loss brand to a vibrant community of empowered members to achieve seven straight seasons of growth.
And it’s how The New York Times, a publication founded in 1851, is topping the podcast charts with its sponsored program, The Daily.
You may call these companies game changers, and that’s fine – but the truth is they didn’t change the game, they just reacted more quickly than their competitors when the game itself changed.
So how’d they do it?
They took actions. Brave and courageous actions in the face of discomfort. They opened doors their competitors wouldn’t – and most of those competitors are still locked out.
They hired planners – planners who became obsessed with the future. They examined trends and thought flexibly. They kept their eye on the bigger picture, when everyone else was focused on the smaller portraits of the present.
The unknown isn’t safe, but it’s where you need to play if you want to win.
So think ahead. Imagine possibilities that seem decades and decades away. The way you think consumers make decisions today will be different than the way they make decisions tomorrow.
Become a leading brand of 2020.
Take action. Define the alternative future you exist to prevent.