AQ #01: From Bias to Brilliance - The Art of Unlearning ❣

Read time: 5 minutes

Last year witnessed hordes of corporate employees quit their jobs and switch careers, in a world reeling from the pandemic. It was the Great Exit.

And then came devastating mass layoffs, one after another, mostly by the big tech companies. Within one year the cycle is complete.

However, today we’re getting neither into the nuances of the Great Exit nor into the morality of mass layoffs.

What you see in these recent examples is a very common yet often ignored phenomenon - Argumentum ad populum or in easy words the bandwagon effect.

Felt FOMO while scrolling through your Instagram feed?

Felt a sudden surge of YOLO while watching Youtube videos?

We’re all easy prey to fallacies, oftentimes without even realizing it. Advertising often uses fallacies to its advantage in crafting persuasive communications.

And that’s what our debut edition is about - common marketing fallacies and how to avoid them.

Modern marketers deal with rapid changes and challenges such as insane amounts of data to process in digital marketing, whether AI is the new foe or friend, etc.

It is important to be aware of our misplaced notions and inherent biases to be able to think clearly and make the right decisions.

Let’s see some of the most common yet dangerously ignored fallacies that marketers usually fall prey to.

1. Sunk Cost Fallacy

The more we invest in something, the more difficult it is for us to abandon it midway.

Past expenses, efforts and time are all sunk costs, and can’t be recovered simply by continuing. But we still keep throwing good money after bad, usually in a bid to “make the most of it”.

What it looks like?

Suppose you spent $10000 on social media marketing. The outcomes clearly indicate that Instagram is not driving sales though you’ve amassed a large (vanity) following because of quirky content.

In the quarterly review, you decide to continue spending on Instagram because it would seem wasteful to ignore your new-found following.

Decision makers often continue pumping resources into campaigns that go nowhere, brand ambassadors who add nothing, or features no one cares about.

The Supersonic Concorde debacle is an interesting cautionary tale of how devastating this can be.

How to avoid it?

• define and measure KPIs

• set effective goals and checkpoints

• conduct regular reviews

• make data-backed decisions

• course correct and pivot when needed

2. Incentive Super-response Tendency

While incentives can be effective in certain circumstances, they are not always the best solution.

For instance, offering a discount on a product may lead to short-term sales, but it may not be the best long-term strategy for building brand loyalty.

It is important to ensure that incentive programs align with your marketing and business goals and don't have any unintended consequences.

What it looks like?

In a study by Dan Ariely, offering incentives for blood donation led to a decrease in donations. People who donate blood purely to help out others felt demotivated and stopped volunteering.

Wells Fargo incentivized their employees to open more bank accounts, which led to a massive scandal when it was discovered that employees were opening millions of fake accounts without customers' knowledge or consent.

How to avoid it?

• consider your audience's motivation and what drives them to take action

• weigh it against your desired outcome and check if both align

3. Consistency signifies credibility

While consistency is important, it should not be the sole indicator of credibility.

What it looks like?

Every other “personal branding expert” on social media takes advantage of this misconception and advises to do so too. Yet, those who provide value to their readers, not just consistency, are the ones who stand out in the long run.

A brand that sends spam emails may be consistent in its behavior but that does not make it credible.

How to avoid it?