Using behavioural economics to boost biodiversity (and marketing performance)

There are glimmers of hope in the outlook for the environment—a study of 67,000 animal species found that human conservation efforts to bring them back from the brink of extinction are working. But human activity is still driving a biodiversity crisis that threatens the existence of around one million species globally. So what can we do? The answer lies in data (as it often does.)

We caught up with Daniel White, CEO and Co-founder of biodiversity measurement tech company Gentian. In this article, we share some of Daniel’s insight into behavioural economics, explore how Gentian uses them and learn how more marketers can leverage them. (Full disclosure, Gentian is our client and we built their new website.)

How behavioural economics can cut carbon emissions

Daniel shared his whole journey from ecology to entrepreneurship on the podcast. But a pivotal moment was his role in a world-first scientific study. ‘Not everyone cares about the environment,’ Daniel shared, ‘and often the environmental movement falls into the trap of thinking everyone just needs to be led in the right direction.’

The study used behavioural economics, specifically nudge theory, to try and get households to improve their energy usage. Nudge theory suggests that by making changes to a person’s environment, you can influence their decision-making.

In the study, an app showed participating households their energy consumption data and that of their neighbours—the ‘nudge’ to keep up. The study showed that these nudges worked, and people reduced their energy consumption and, therefore, their carbon emissions.

How Gentian uses behavioural economics to protect biodiversity

The outcomes from the household study demonstrated how powerful it can be to equip individuals with data to make more conscientious choices. Gentian’s mission goes further to drive impact at a much larger scale, mapping and measuring biodiversity. Biodiversity data is extremely complex, which is ‘both a blessing and a curse,’ according to Daniel. ‘It’s a blessing because there are enormous amounts of diverse value, but it’s a curse because it’s extremely difficult to pin down and put into a spreadsheet.’

Historically, the only way to measure biodiversity has been to get boots on the ground—sending ecologists to a site to take samples and measurements. Their expertise is invaluable, and there are still use cases where this approach is necessary, but for large and hard-to-traverse areas, it can take weeks or months and an enormous investment.

Gentian’s technology combines high-resolution satellite imagery with artificial intelligence (AI) and remote ecology expertise to solve this problem. Instead of weeks or months, mapping biodiversity with Gentian takes minutes to hours. This acceleration is crucial for organisations trying to protect or improve biodiversity. Gentian makes it easier to gather, analyse, and understand the data and makes it more accessible, providing the information and nudge organisations need to take action for nature.

How marketers can leverage behavioural economics

Our discussion with Daniel focused on the impact of social norms, but he says that there’s much more for marketers to learn using behavioural economics principles. ‘There are lots of data sources that allow us or marketers to understand the difference between correlation and causality… understanding the difference is very important,’ he states.

To demonstrate his point, Daniel referenced the relationship between ice cream sales and drownings in the UK. They’re correlated, but one doesn’t cause the other—they both increase in the summer as the temperature rises and more people go swimming.

When you have the right data, these are some of the most powerful nudges marketers can experiment with:

• Social norms: This was the nudge at play in the household energy study, where neighbours saw each other’s energy usage figures. Social norms are shortcuts for acceptability but also for risk avoidance, so they’re incredibly influential. In a commercial context, providing leads with evidence that many of their peers (especially competitors) use your product or service is an example of using social norms in marketing.
• Defaults: Before GDPR, a common application of defaults was opt-out cookies. Post-GDPR, the new default is opt-in cookies. If users in the EU can access your website, opt-in cookies aren’t negotiable, but you can use defaults in other (ethical) ways. An example could be making your default contact option ‘Book a call’ or making your default offer option ‘Book a free demo’ instead of a free trial. Most people get more value from face-to-face guidance and consultation, so the default benefits them.
• Priming: If you’ve ever tried to sell your house, you may have heard the advice to bake bread or brew fresh coffee for viewings. This is an example of priming, where a stimulus influences a subsequent action. Few marketers can incorporate delicious smells into their funnel, but the principles are the same. If you can create a positive association just before a conversion point, you’re more likely to generate more leads.

Small nudges for big impact

Behavioural economics shows us that the right nudge at the right moment can improve outcomes. As marketers, we have an opportunity to use these tools to sell and to do more good for people and the planet with and on behalf of our customers.

If you’re looking for a strategic partner that balances marketing effectiveness with ethics, allow us to introduce ourselves. We’re Articulate Marketing, a progressive marketing consultancy that builds Difference Engines for our clients. If you’d like to discuss how we can supercharge your marketing machine, get in touch today.