Expert Mode: The Overlooked Competitive Advantage Hiding in Human Psychology
This article was based on the interview with Phill Agnew, Host of Nudge Podcast at Nudge Podcast by Greg Kihlström, AI and MarTech keynote speaker for The Agile Brand with Greg Kihlström podcast. Listen to the original episode here:
As marketing leaders, we live and breathe the language of optimization. Our days are a whirlwind of platform evaluations, data dashboards, budget allocations, and the ever-present, all-consuming question of how to best integrate AI into our workflows. We’ve become masters of the MarTech stack, fluent in the dialects of CTR, LTV, and MQLs. This relentless focus on technology and data is essential; it’s the price of admission in today’s competitive landscape. But in our quest for the perfect algorithm or the most efficient campaign, we risk overlooking a far more foundational and enduring competitive advantage: a deep, practical understanding of the human brain.
The technology changes, the platforms evolve, but the underlying operating system of our customers remains remarkably consistent. The cognitive biases, evolutionary traits, and psychological triggers that guided human decisions centuries ago are still very much at the helm today. This isn’t an argument to abandon technology, but rather to augment it. By making the study of behavioral science a strategic priority—not just a “nice-to-have” for the creative team—we can build more resilient brands, craft more persuasive messaging, and create customer experiences that resonate on a fundamentally human level. To explore this, we turn to the insights of Phill Agnew, a marketer and host of the UK’s number one marketing podcast, Nudge, who has dedicated his work to bridging the gap between academic psychology and real-world marketing application.
Make the Abstract Concrete
Enterprise marketing often suffers from a peculiar affliction: a love for the abstract. We talk about “innovative quality,” “cutting-edge technology,” and “synergistic solutions.” While these terms sound impressive in a boardroom, they are functionally useless in the mind of a customer because they can’t be visualized. Steve Jobs was a master of avoiding this trap, translating technical specifications into tangible, human-centric benefits. This wasn’t just a stylistic choice; it was a deliberate application of a core psychological principle.
“Steve Jobs comes into the MP3 market with the iPod, and he famously says, 1,000 songs in your pocket. Extremely concrete way of talking about something which could otherwise be quite abstract… He found that the concrete phrases were about eight times more memorable than the abstract phrases. So being concrete in your language can be very powerful. A lot of enterprise bands forget this.”
Agnew highlights a crucial lesson here. The competition for the first MP3 players was describing their products with abstract data points like “253 megabytes of storage.” It’s technically accurate but mentally inert. “1,000 songs in your pocket,” however, paints a vivid picture. You can feel the weight of it, imagine the soundtrack to your life, and immediately grasp the value proposition. For enterprise leaders, the directive is clear: audit your messaging for abstract jargon. Instead of saying your software provides “unparalleled efficiency,” try something like, “We give your team back five hours every week.” Instead of boasting about your platform’s “robust data processing capabilities,” explain that “we analyze enough data every second to fill a library.” Find the “1,000 songs in your pocket” for your brand. It’s the difference between being understood and being forgotten.
The Counterintuitive Power of Flaunting a Flaw
The default posture for any brand is perfection. Our products have no downsides, our services are seamless, and our customer support is flawless. We spend millions crafting this image of invulnerability. Yet, psychology tells us this might be precisely the wrong approach. The Pratfall Effect, a principle studied since the 1960s, demonstrates that revealing a small flaw can make a person—or a brand—more likable and trustworthy. It humanizes the entity, making it more relatable and approachable.
“There is something in human psychology that makes us attracted to people, to objects, to brands, that aren’t completely perfect… A classic example in the States is Avis, who were the famous second number one car, sorry, the famous second car rental brand. They said, ‘We’re number two, so we try harder,’ incredibly successful campaign for them… By embracing their flaw, they benefit from that Pratfall effect, they actually become more likeable than brands that don’t have a flaw at all.”
This is a profoundly uncomfortable idea for most marketers, yet its power is undeniable. Avis didn’t hide their secondary market position; they turned it into their core strength. Guinness didn’t try to speed up the slow pour of their stout; they celebrated it with the slogan, “Good things come to those who wait.” For enterprise brands, this doesn’t mean advertising software bugs. It means being strategically transparent. It could be admitting your product is not the cheapest, but explaining that the premium price is because you invest three times more in security. It could be acknowledging that your platform has a steeper learning curve, but framing it as a reflection of its power and customizability. In an age of deep-seated consumer skepticism, a little-acknowledged weakness can be your most believable strength.
The Quantifiable ROI of Reciprocity
Reciprocity—the idea that we feel compelled to return a favor—is one of the most well-known principles of influence. Marketers apply it daily through free trials, content downloads, and webinars. But we often underestimate the power of its simplest and most personal applications. A recent study from a South Korean e-commerce store provides a stunningly clear, quantifiable example of how a small, seemingly insignificant gesture can drive substantial business results, proving that even “soft” touches can have a hard ROI.
“They found that just sending that thank you note increased future sales by $29 on average for that type of customer compared to the control. But then there was an extra variant… they would have one member of the staff handwrite that thank you note… And what they found when they sent that handwritten variant is it increased future sales for that customer on average by $52.”
The delta between doing nothing, sending a printed note, and sending a handwritten one is astonishing. A $52 increase in future sales from a simple, personalized gesture. What’s particularly relevant for enterprise leaders is the follow-up finding: a printed note that looked handwritten and was simply signed by a human had nearly the same effect. This demonstrates that the principle is scalable. For high-value B2B clients, a genuine handwritten note could be the small nudge that solidifies a multi-million dollar relationship. For broader B2C applications, a personalized, human-feeling touchpoint automated through your CRM can still tap into this powerful psychological driver. It’s a reminder that in our push for automation, we should be looking for ways to automate humanity, not just efficiency.
Navigating the Catch-22 of AI
No discussion of modern marketing is complete without addressing AI. The promise is immense: hyper-personalization at scale, predictive analytics, and content generation that frees up our teams for more strategic work. However, as we rush to adopt these tools, behavioral science offers a critical note of caution. The perceived effort and human touch behind a creation are intrinsically linked to its value. When that human element is removed, the value can plummet.
“This is the catch 22 when it comes to marketing with AI, is that I think we can get very effective marketing with AI… But as soon as they found out, or if they were ever to sort of assume that maybe I’m using AI… they’ll value my work less. They won’t appreciate the email as much… if our customers figure out that it is written by AI, it’ll become far less effective.”
This presents a genuine dilemma for marketing leaders. AI can create a perfectly optimized email, but if the recipient suspects it’s from a machine, its persuasive power may be neutralized or even reversed. This doesn’t mean we should shun AI. It means we must be strategic about its deployment. AI is an incredible tool for research, data analysis, first drafts, and identifying patterns. It can be the ultimate assistant. But the final product, the final voice that reaches the customer, must retain a stamp of human authenticity and effort. In a world where everyone has access to the same AI tools, the new competitive advantage may well be the discernible presence of a thoughtful human in the loop.
The path to building a more agile and effective marketing organization isn’t paved exclusively with more advanced technology. It requires a dual fluency: one in the language of machines and data, and another in the timeless language of human psychology. The principles of behavioral science are not fleeting trends; they are foundational truths about how your customers think, decide, and act. They have remained constant through every technological revolution and will continue to do so.
Therefore, the challenge for us as leaders is to treat this knowledge with the same seriousness we afford our MarTech investments. Encourage your teams to run experiments based on these principles. Build a culture that values psychological insight as much as it values data analytics. By layering a deep understanding of human behavior onto our powerful technological stacks, we don’t just become better marketers. We build brands that are more resonant, more trusted, and ultimately, more human—a quality that technology can augment, but never fully replace.
