How ‘system 1’ thinking can lead to your next business breakthrough and unlock innovation through the power of emotion
Glyn Luckett CMRS
Insight 250 Award winning MRS Certified Insights Professional | 25+ Ys Exp in Design + Delivery of Customer/Employee (Exp, Sat, CES, Gap Analysis) + Stakeholder Research | Exp Research Bus Growth | More in About section
The modern business world is in a constant state of disruption.
Where once an organisation could rest happily on its laurels provided that their core services were good enough, in the present day the ability to innovate swiftly and successfully, offers vital competitive advantage - and organisations that aren’t able to innovate quickly get left behind.
Organisations have traditionally used research methods to capture customer sentiment and work out their best next move.
The growing issue, however, is that modern research methodologies are simply not up to the task of capturing the emotional and instinctive reasoning that customers are using when making purchasing decisions.
They are not getting to the real drivers of that buying behaviour!
In this paper and attached materials, we outline what we believe is a better way of conducting research in the modern world. ?A new methodology that actually allows you to get to the base of what customers are feeling but might not be saying. To truly drive innovation, by tapping into a clearer, deeper understanding of consumer behaviour by applying ‘system 1’ thinking.
Open our PowerPoint to see more about driving innovation through system 1’ thinking
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What is ‘System 1’ thinking?
Popularised by Nobel laureate Daniel Kahneman in his book ‘Thinking, Fast and Slow’, at its heart ‘System 1’ thinking is our brain’s fast, automatic, emotional response to problems which contrasts with ‘System 2’; our slower, more deliberate and logical thought processes. In the context of research, traditional methodologies have up to now only been capturing ‘System 2’ data (the decisions and behaviours that respondents are able to tell us about at a conscious level).
‘System 1’ techniques, however, are designed to tap into quick, subconscious reactions – and help us to find groundbreaking insights that are often more predictive of actual behaviour than the rationalised responses typically gathered through traditional methods.
Why does this matter?
Innovation demands an understanding of what customers and consumers need before they even articulate it!
When businesses look to develop new products or services, they often struggle to identify what really resonates with consumers.
Relying solely on ‘System 2’-based research, which involved asking customers directly about their preferences, is extremely limiting because respondents tend to overthink their answers, focusing on what they believe sounds logical or socially acceptable.
The challenge businesses face, lies in the fact that many consumer choices and preferences are not driven by rational analysis but by emotions and instincts.
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What does this mean for you and your innovation?
Businesses that really want to innovate and keep ahead of their competitors need to integrate ‘System 1’ research techniques such as…
These can enable organisations to explore and test innovations in ways that uncover deeper, often unspoken drivers of behaviour and understand consumer desires before they are verbalised.
What does this look like in practice?
In a recent case study involving a major beverage brand, IAT was used to explore reactions to several potential new flavours. While traditional surveys indicated a preference for flavours associated with health and wellness, implicit tests revealed a strong, subconscious preference for more indulgent and familiar options, which ultimately helped steer product development toward flavours that consumers genuinely desired, even if they couldn't consciously express it.
In another instance, a global automotive company wanted to understand how they could increase EV sales and employed System 1 techniques in the research.
While respondents’ verbal feedback suggested that battery range anxiety is the No.1 issue for nearly a third of consumers, followed by the availability of public charging points for one in five consumers. This is despite research from the Department for Transport demonstrating that nearly all (98%) of car journeys are less than 50 miles – easily within the range of all EVs on the market.
System 1 research revealed a more humanised emotional response which provides a superb foundational starting point for identifying opportunities to emotionally connect with consumers who are considering an EV as their next new car through understanding what success really feels like.
The ideal electric car has a stronger foundation of contentment but with new emotions around continuously improving innovation (Hopeful), which meets and enables personal needs to be active and change behaviour (Stimulating).
The need for personal support has diminished and been replaced by a sense of consumers feeling they are making a smart and wise choice (Intelligent), which creates a strong belief of personally thriving and self-accomplishment (Happy).
These are powerful emotions and manufacturers who can develop innovation and communication that are wrapped in these deeper emotional benefits are more likely to make instant connections with consumers and influence their behaviour
This ability to really see the underlying emotions behind purchasing decision can save organisations vast sums of development time, money and avoid innovating in a way that will not be received by customers.
Aligning the emotional and the functional
As we’ve seen, ‘System 1’ techniques offer an advantage by measuring how consumers truly react to innovation, without overreliance on rationalised feedback. This is especially important because emotions often drive purchasing decisions, even if consumers aren't aware of it. This is especially important when testing new concepts.
Refining innovation requires the balancing the novelty of a new concept with the emotional comfort of familiarity. System 1 research helps businesses ensure that their innovations strike this balance, by identifying areas where consumer emotions may be at odds with the functional benefits of a product.
In a case of a multinational food company testing a new line of healthier snacks for example, traditional focus groups produced confusing results. Consumers praised the product’s health benefits but were not eager to purchase it. Using System 1 methods, the company discovered that while health was important, it was subconsciously associated with a lack of indulgence or satisfaction. As a result, they refined the product's branding and messaging to emphasise both health and indulgence, which aligned with the emotional needs of consumers, leading to a successful product launch.
‘Bridging the gap’
The examples above illustrate how ‘system 1’ research techniques are powerful tools in the innovation process. By focusing on the intuitive, emotional responses of their customers businesses can:
Innovation is a key differentiator, understanding and leveraging the emotional drivers behind consumer behaviour is more critical than ever. ‘System 1’ research offers a path to deeper insights and, ultimately, more valuable innovation.
If you would like to know more - please message me.