Views from Richard Shotton, Behavioural Scientist
In today’s rapidly changing business landscape, B2B marketers are constantly seeking new ways to influence buyer behaviour. Whether your company is trying to convert a new client or retain existing accounts, understanding the psychology behind decision-making is crucial. Insights from behavioural science—particularly biases like sunk costs and social proof—offer valuable tools to guide marketers in crafting more effective strategies. These concepts go beyond simple tricks; they help us understand the deep-rooted psychological drivers that shape how customers make decisions.
Sunk Cost Bias: Why Buyers Stick to Their Decisions, Even When It Doesn’t Make Sense
In the world of B2B marketing, understanding biases like sunk cost can give you a competitive edge. The sunk cost effect, which Richard Shotton discusses in his recent appearance on the Places We Go Show, highlights how individuals are more likely to continue with a course of action (even when it’s suboptimal) simply because they’ve already invested time, money, or effort into it. This irrational decision-making is especially prevalent in subscription-based models.
As Shotton explains, “Once you’ve spent that money on a subscription… you’ll go to these ludicrous lengths to try and recoup that investment.” This is why businesses like Amazon Prime have mastered the art of keeping customers engaged. Even if the service doesn’t fully meet their needs, the idea of wasting a subscription drives them to keep buying. For B2B marketers, this bias suggests that getting customers to make even a small initial commitment—whether it’s a trial product, a demo, or a consultation—can increase their likelihood of continued engagement.
For example, consider a SaaS platform. If a client has already invested time in onboarding and paid for an initial subscription, they’re less likely to cancel, even if they’re not entirely satisfied with the service. Marketers can leverage this by ensuring customers start with low-risk, low-investment commitments and continue to build value over time.
The Power of Social Proof: Leveraging the Crowd to Drive Decisions
Social proof, the concept that people tend to follow the behaviour of others, is another powerful tool in the B2B marketer’s toolkit. Shotten points to a classic study by Robert Cialdini, where a simple sign indicating that “most guests in this room have reused their towels” resulted in a 49% compliance rate compared to just 35% with the more environmentally focused message. The difference? Social proof works because it taps into a human need to align with group behaviour.
However, as Shotton also warns, social proof isn’t always beneficial. In some cases, emphasising negative behaviour (e.g., “lots of people don’t vote” or “many businesses still lack diversity”) can actually reinforce those behaviours. A study by Chini et al. (2003) at Petrified Forest National Park showed that telling visitors that “12 tons of wood have been stolen every year” led to a sharp increase in theft. For marketers, this underlines the importance of using social proof strategically. Highlight positive behaviours that align with your brand values, such as testimonials from industry leaders, client success stories, or case studies that showcase how others have benefited from your solution.
In the complex B2B buying journey, social proof can play a critical role. When multiple stakeholders are involved in the decision-making process, their choices are often swayed by the behaviour of their peers. For instance, if one department adopts a new software solution and experiences positive results, other departments will be more likely to follow suit, especially if they perceive that their colleagues have already “proved” its effectiveness.
Cater to Complex Journeys: Account for Multiple Stakeholders and Entry Points
B2B buyers don’t follow a linear path to purchase. In fact, research by Forrester highlights that many B2B journeys involve multiple stakeholders with varying priorities and decision-making processes. Marketers must account for these complexities by creating targeted content and personalised experiences that cater to different entry points.
The journey is rarely straightforward; stakeholders may first interact with your brand through a blog post, later attend a webinar, or get referred by a colleague. Each touchpoint is an opportunity to influence their decision-making. By addressing the specific needs and pain points of each stakeholder—whether a decision-maker, influencer, or end-user—you can increase the likelihood of conversion at every stage of the journey.
This is where understanding behavioural biases like sunk costs and social proof becomes vital. For example, while an executive might be driven by the fear of making a poor investment (sunk cost), a product manager could be swayed by the success stories of similar organisations (social proof). Tailoring content and messaging to address these biases at each touchpoint ensures that every stakeholder feels heard and supported.
Prioritise Metrics by Stage: Aligning Metrics with the Buyer’s Decision-Making Process
To optimise the buyer journey, B2B marketers should focus on metrics that align with each stage of the buyer’s decision-making process. At the top of the funnel, focus on awareness metrics like website traffic and social engagement, where social proof (i.e., likes, shares, and comments) can be a powerful indicator of your brand’s credibility.
As potential clients move further down the funnel, engagement metrics—such as email opens, click-through rates, and webinar attendance—become more important. These metrics help marketers gauge the level of commitment and interest, which ties directly into the sunk cost bias. Once a buyer is engaged, they’re more likely to stay in the funnel, especially if they’ve already invested time or resources.
At the bottom of the funnel, focus on conversion metrics. This is where social proof can have a profound effect. Case studies, testimonials, and reviews from similar businesses can tip the scale toward a decision. For example, sharing how a competitor in the same industry saw a 30% increase in sales after implementing your solution can validate the buyer’s decision-making process and provide the final nudge they need to convert.
Integrate Brand and Demand: Strong Branding Fuels Demand Generation at Every Stage
A key takeaway from the transcript is the importance of integrating brand and demand generation efforts. Shotten stresses that “the great thing about Behavioural Science is… you can apply it today, but you can apply it in 40 years’ time.” This longevity of insights applies not just to individual biases but to how your brand is perceived in the marketplace.
When you build a strong brand, you create a foundation of trust and credibility. This, in turn, fuels demand generation across all stages of the buyer journey. Even if prospects are in the awareness stage, a recognisable, trusted brand will make them more likely to engage. As they move further down the funnel, that brand equity will help overcome objections, validate their choices, and lead to higher conversion rates.
Marketers should see branding and demand generation as two sides of the same coin. A compelling brand is a powerful tool in driving demand, while effective demand generation helps reinforce and amplify the brand’s message.
Conclusion: Behavioural Science as a Key Driver in B2B Marketing Strategy
The insights from behavioural science—such as the sunk cost bias and social proof—provide marketers with the tools to optimise complex B2B journeys. By catering to different stakeholders, aligning metrics with each stage of the decision-making process, and integrating strong branding with demand generation, businesses can ensure they’re creating experiences that resonate with their audience.
For more insights, explore Forrester’s research on the ROI of brand equity in B2B here, and read Harvard Business Review’s articles on non-linear customer journeys here.
Understanding these biases and behaviours—and how to apply them—will allow B2B marketers to craft campaigns that not only drive conversions but also foster long-term relationships with clients. In a crowded marketplace, the brands that stand out are the ones that understand how the human operating system works and use this knowledge to create marketing that feels personal, relevant, and ultimately, irresistible.
