Monday, May 21, 2012

Who is using behavioural economics?

A question I am often asked is "who is using behavioural economics?".  The question is not surprising given we tend look to what others are doing to help decide what we should do, so rather than publish my client list I thought I'd provide a brief run down on some businesses who have been publicly acknowledged to have utilised strategies from the behavioural economics playbook.  

Lloyds and Barclays banks

With the guidance of Procter research, the bank call centers were behaviourally tweaked through scripting and call pathways. Result?  Sales increase of 20%, satisfaction up 7%, conversion growth of almost 12% and staff confidence up nearly 18%. More on Procter's trial 

Westpac NZ
Used the behavioural insight that we spend on impulse to create a new App that allows impulsive saving.  Unfortunately the money still needs to be yours, but you can't have everything!  More on Westpac's App

Always an adventure to shop in this monolithic retailer, the floor plan is crafted to disorient and stimulate purchase by weakening your sense of externally anchored prices.   More on Ikea

Overcoming our dislike of risk and ambiguity when buying a car extends to what the re-sale value is likely to be. Hyundai tell their customers so that their fear of the unknown is eliminated.  More on Hyundai 

Domino's Pizza
Is a 2-for-1 offer better at driving behaviour than a free bottle of soft drink?  Domino's in the UK have engaged their media agency to use behavioural economics in the planning process to optimise customer incentives. More on Domino's

Birmingham Airport

Turned an airport website from a cost centre to profit centre by simplifying the decision making process for customers. As a result, traffic and conversion for Parking, Travel and Newsletter sign ups were all impressively improved.  More on Birmingham Airport

Celebrated for their use of behavioural economics to influence healthier eating by staff.  How? Healthier foods were easier to get to, smaller plates were provided and food choices were colour coded to indicate their nutritional credentials.  More on Google's cafeteria

US Cellular
Holes punched in the wall of an outlet by an angry customer triggered an overhaul of US Cellular's customer loyalty program using behavioural economics. More on US Cellular via Tibco (video)

Amp Financial Advisors
Teamed with the great Dan Ariely of Duke University (and author of the best selling "Predictably Irrational"), Amp's App for financial advisors used behavioural economics in its design to gain an average 76% conversion. More on Amp

But that's not all.  Given marketing is really about behavioural change, behavioural economics is also being utilised extensively by advertising agencies. Some of the leading agencies include Ogilvy UK, M&C Saatchi, BBDO, Draft FCB and Naked Communications.

From this quick run down you can see that behavioural economics has been applied across various industries and for a range of purposes; interface design, customer service, sales conversion and customer engagement, so the field offers great flexibility and delivers great results.  Sounds like a great opportunity for your business!

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1 comment:

  1. @ Thanks for your Post; it really provides me lot information regarding my work.