Gaining a deep understanding of how firms sell services and customers make purchasing decisions can deliver measurable impacts. While many decision-makers still rely on intuition or anecdotal evidence to guide their strategies, data-driven insights fueled by behavioral data and economic analysis are far more effective and are taking center stage, according to the McKinsey & Company 2025 State of the Consumer report.
From an analytical perspective, this data provides insights into understanding employee and customer behavior. In this article, we examine how behavioral data, and behavioral economics can be applied across various industry sectors to drive growth and enhance decision-making. This will be especially helpful to firms seeking to implement new growth strategies.
According to the Wharton School, “Over the last 30 years, psychologists and economists have collaborated to study how people process information and make decisions, rather than how they would make decisions if they were fully rational and self-interested. The new field that this collaboration has spawned, dubbed behavioral economics, has provided an understanding of how people’s decisions deviate from ‘optimal’ choices as well as the consequences of such deviations for consumers, managers, firms, and policy.”
Defining Behavioral Economics
Let’s first define behavioral economics. According to Investopedia, it is “the study of psychology as it relates to the economic decision-making processes of individuals and institutions. It draws on psychology and economics to explore why people sometimes make irrational decisions, and why and how behavior diverges from the predictions of economic models.”
The Evolution of Decision Making
Consumer choice and decision-making do not always follow a logical path. In fact, most consumers make choices based on the predisposition toward what is familiar or what others are choosing. This might look like a call-to-action on your website that says, “Click Here to Get Your Free Consultation” with a caption that reads, “500 other people seeking legal advice have already made this choice.”
In marketing and behavioral economics, these are sometimes referred to as nudges. Nudges provide cues that influence behaviors in ways that encourage clients and customers to take action. They don’t limit choice, but they do provide timely information.
Depending on the firm’s location and the state’s advertising bar rules, this might look something like, “We have a 98% success rate,” followed by a client quote to emphasize the realized value of the service.
Applying the Rule of Three
When firms showcase how they assist clients, legal marketers can use the rule of three. The rule of three is based on the idea that consumers naturally think in groups of three. “This inclination towards asymmetry is rooted in how our minds process information – trio setups are more easily comprehended and retained than larger or more intricate arrangements,” explains marketing expert Sheraz Durrani.
Consider, for instance, your firm’s tagline. Can it benefit from the rule of three? For example, “Trusted. Experienced. Results-Driven.” or “Secure, Resilient, Represented.”
Then, using nudges, you would say something like, “9 out of 10 of [client peer groups] have used this option and we’ve found great success with it,” because we know consumers tend to choose what has already been chosen by others.
Implementing Internal Data-Driven Strategy
Additionally, firms are starting to use behavioral data to determine who is best suited to attend a pitch meeting, networking event, or large-scale media presentation. Behavioral data gives law firms powerful insights into how potential and current clients interact with their marketing, communications and services.
For example, at the CMO Passle Series Live Conference, which was held in NYC in June 2025, the audience heard case studies from firms like Foley & Lardner, who are using behavioral assessments to better understand team dynamics and match complementary skills, noting that attorneys often score high in autonomy and urgency but lower in empathy and resilience.
Other firms, such as BakerHostetler, are using behavioral data to inform their coaching and training. By analyzing these behavioral patterns, firms can make more informed decisions about client acquisition, retention, and service delivery. Data can demonstrate who is more naturally inclined to be a networker, who is more analytically minded, and who remains calm during an interview with the media. This behavioral data helps shape more effective choices when forming teams; it also exposes areas of potential conflict between team members and areas where people complement each other.
Conclusion
Legal marketers and legal executives should continue to consider behavioral patterns in response to their legal marketing efforts to reduce friction, simplify decision-making, and guide clients toward beneficial actions. Tools like the rule of three and nudges can be helpful mechanisms in influencing human behavior based on psychological principles. Firms can even use behavioral data internally to place attorneys in optimal roles to close business deals and create successful client relationships. By applying behavioral economics, law firms can transition from passive marketing to actively designing client experiences that consistently engage and add value throughout the client journey.
