Little actions. Big influence.
Why watching a fictional character die would make share prices drop 11%
Happy Sunday Bold Behaviourists 👋🏽
Small actions can create little waves. That's the theory behind the butterfly effect.
Little actions like watching a TV show, or moving a cola bottle could be a $ billion dollar impact... and yet you will be making millions of little actions all week, without a thought to how it might impact the world around you.
I'm going to show you why this happens and a simple tool to maximise the influence you have in your interactions this week.
I've even started using this newsletter to test the behavioural science I'm sharing. Using one of the principles, I've set up a control title, and an experiment title to see what works.
I'll let you know next week what the results are.
Illogical behaviour of the week.
I was reminded that on Friday (14th June) it was the anniversary of that amazing incident at some football press conference when Ronaldo tanked Coca-Cola's Press conference in under 10 seconds flat.
That was a real event.
After that, a fictional character managed to influence a share price drop by dropping dead after using their product.
Logical? No.
Behavioural? Yes.
And that's why we are here.
You will have influence over people in a way that is utterly illogical over the course of this week.
So I thought for fun, let's look at the science behind these events and how your actions could cause a ripple effect across other people's thinking.
Cristiano Ronaldo’s Coca-Cola Moment
He sat down. Picked up the cola bottles, and pushed them out of shot.
Then, he held up a bottle of water, and gave it a wiggle towards the camera.
A simple gesture, but given his profile and visibility he had a profound impact—Coca-Cola’s share price dropped by a mere $4 billion... I wouldn't have liked to have been in the sponsorship meeting that followed.
The science... Why did this happen?
- Social Proof: Ronaldo is a role model for millions. He is high profile. So when he rejects a product, people take notice. There will be people who you notice too, role models that you may not even be aware of.
- Priming: His action primed viewers to associate Coca-Cola with negativity, even if subconsciously.
- Emotional Contagion: Ronaldo’s facial expression communicated a subtle but powerful message that influenced consumer emotions.
Mr. Big’s Death and Peloton’s Plunge
On a Thursday morning in the U.S., and evening in the U.K. the first episode of a hotly anticipated show "And Just like that" aired.
The main character's on-again-off-again-beau is on his peloton, gets a heart attack and dies.
By 11.53am EST on that same Thursday, shares in Peloton Interactive were trading down 8.2 % on Nasdaq.
They closed at 40.7 on the Thursday, a drop of 11.35%.
Yikes.
What flumoxed me at the time was that whilst Cristiano was a real live boy, this event was entirely fictional.
In reality... poor leadership in play, stocks were already declining post-pandemic and for some reason, the leadership team decided to agree to have their product appear without knowing what context.
I imagine a seasoned marketing team wouldn't have agreed, but what do I know?
The science... Why did this happen?
- Anchoring: Viewers anchored the tragic event to the Peloton brand, associating the bike with negative outcomes. Usually, brands use the positive association.
- Availability Heuristic: The vividness of the scene made it easily recallable, causing people to overestimate the risks associated with using Peloton bikes.
- Emotional Impact: The emotional weight of losing a beloved character translated into real-world concern and scepticism towards the product involved.
So what's the magic formula that gives small actions a big impact??
I was having a BIG (fnar) think about this. Your profile plays a role in people's decisions. How they see you will get in the way (or support) their trust in you.
How they feel will also be involved.
So, here is a simple equation to consider the impact you have on other people's decisions.
Influence = (Visibility × Reputation) + Emotional Impact
- Visibility: How prominently you are seen in your field
- Reputation: The respect and trust you have earned*
- Emotional Impact: The strength of the emotional response your actions elicit (e.g., a compelling story, a dramatic gesture).
When these elements combine, they significantly affect how people make decisions related to your business.
*Don't forget the power of who you hang out with, the halo effect of being seen by other respected personal brands in your business can increase your reputation 3 fold.
The takeaway for you: Your Influence does matter
No matter what you might feel at the moment - as you step into this week remember that your actions will influence decision making in clients, colleagues, and even broader industry perceptions.
So, the question is, how will you use it?
Your BOLD challenge for the week
Here's how to put that equation into use:
-
Increase Your Visibility:
- Share a compelling story or a powerful visual related to your cause or decision.
- Use your social media platforms, team meetings, or a well-crafted email to get your message across.
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Leverage Your Reputation:
- Highlight your expertise or experience related to the cause or decision.
- Make friends with respected figures that align with your values to strengthen your message.
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Create an Emotional Impact:
- Craft your message to evoke the desired emotion. Use vivid imagery, personal anecdotes, or data that resonates emotionally with your audience.
- Engage directly with your audience by asking for their opinions or support.
In business, it’s essential to remember that even the tiniest actions can create huge ripples.
By understanding the behavioural science behind these impacts, you can better navigate behaviours and reactions that are holding you back at work.
Until next time bellas,
Go. Be Bold. Change minds.
Alex
P.S. Is this newsletter good enough yet to share on your socials?
