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Using Behavioral Science to Influence Consumer Behavior

Global insight, research, and consultancy using the latest thinking from the behavioral sciences to help companies better understand and influence consumer behavior.

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Using Behavioral Science to Influence Consumer Behavior

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  1. Working with The Behavioural ArchitectsPrepared for Alex Alder December 2017

  2. TBA & Barclays

  3. London, Oxford, Shanghai, Sydney Global insight, research and consultancy Using the latest thinking from the behavioural sciences to help companies better understand and influence consumer behaviour Reinvigoratingtraditional research methodologies alongside pioneering new approaches

  4. The Power of BE… BE gives us a framework and concepts to understand customer behaviour and how to nudge and steer it

  5. How BE guides our approach We look to reframe a strategic question in terms of a behavioural challenge and outcome. This provides a clear focus throughout a project. Informs the questions we ask & seek to answer Changes the way we approach research design & methodology Delivers behaviourally focused & actionable outputs Provides frameworks & concepts that drive insight & inspire our analysis BE provides: structure, inspiring content & scientific underpinning

  6. Working with Barclays since 2015

  7. Through this journey we’ve developed frameworks for applying BE to Barclays customers, e.g.: Step 1: Define the audience & strategic communications objective Step 2: Define the desired behavioural outcomes Step 3: Apply BE principlesto develop structure & content &nudgedesired behaviour What do we want the customer to: Framing Loss Aversion FEEL? DO? Authority Bias Priming AVOID? THINK? Put the customer at the heart of the communication Where they are now Shape the customer communication journey Where they need to be Develop the framework for an effective communication How they will get there

  8. And we’ve developed some key takeways for understanding how to help colleagues to apply BE in their roles Demonstrated a process forupskilling employees and embedding BE across different levels within Barclays Applying BE to one challenge empowers staff to use it more broadly It’s important to target BE interventions at the right time & with a focus Imbedding BE more broadly requires careful consideration of the needs of less engaged audiences

  9. A few things in the pipeline... • Mortgage Online Rate Switch Journey– online journey audit & workshop • Sarah Resch • SmartBusiness Dashboard –optimising the registration & onboarding journey • Gemma Wayne-Wright, Matt Clinkard (and James Strachan?) • SmartBusiness Insights – BE insights to assist re-launch as a fee paying offer • Lee Brumwell • Accessibility & vulnerable customers – build process to develop accessible communications • Lee Brumwell

  10. Barclays Core Team SIAN DAVIES FOUNDER • Sian has over 25 years experience as a marketing consultant and researcher. • Sian has led The Behavioural Architect’s work with Barclays over the past few years, addressing a wide range of communications challenges across a different business functions KATE JONES ASSOCIATE DIRECTOR • Kate joined The Behavioural Architects in January 2016. • Kate has worked on a number of projects for Barclays including Communicare, Current Account On-Boarding communications and the auditing re-mortgaging communications. JAMIE HALLIDAY DIRECTOR • Jamie has 10 years experience in strategic marketing and marketing research and a degree in psychology. • Jamie has played a lead role on various TBA projects for Barclays, including the Premier communications toolkit. CAMILLA COOPER ASSOCIATE DIRECTOR Camilla recently joined TBA from Acacia Avenue, and has nine years experience working in qualitative research and consultancy Camilla has worked extensively with Barclays on projects such as: the annual State of the Nation, creative development, product propositions, & digital adoption.

  11. Supporting team HYWEL REED HEAD OF BRAND STRATEGY & CULTURAL INSIGHT Hywel has extensive experience of everything from NPD, to comms strategy, to service experience with brands like RBS & HSBC SARAH DAVIES FOUNDER Sarah has over 20 years experience as a qualitative researcher and strategic consultant. She has supported on various projects for Barclays OLIVER CARY, STRATEGICCONSULTANT Since joining The Behavioural Architects in 2015, Ollie has worked on a range of projects for Barclays including the student migration journey & improving retention in home insurance, and for Prudential on communications optimisation Ollie graduated from the University of Roehampton in 2014, having studied Anthropology. CONNIE WROE, STRATEGICCONSULTANT Since starting her career she’s worked across multiple sectors. Her finance experience includes creative development for Visa and Barclays life cover Connie graduated from the University of York in 2015, having studied Sociology with Social Psychology.

  12. Behavioural Science and the Financial Sector

  13. Examples of the application of behavioural economics in action are popping up across the consumer finance industry

  14. BE provides fresh thinking for current challenges in the sector (1) How should we respond to regulatory initiatives to use BE with integrity? Use this framework for applying the right biases & concepts in the right ways & at the right times 1. Nudging 2. Creating clarity Encouraging customers to TAKE DETRIMENTAL DECISIONS by playing to inbuilt BIASES CONFUSING & hiding the truth from customers Bad BE Vs Vs PLAY TO BIASES that encourage BEHAVIOURS in the customer’s best interest ALIGN the customer experience with HOW WE PROCESS INFORMATION Good BE

  15. BE provides fresh thinking for current challenges in the sector (2) How can we support customers to make better financial decisions? Use knowledge of perceptual & decision-making biases to proactively ’de-bias’ & help customers make informed decisions Power of Now Discountingthe Future Framing Social Norms Mental Accounting Optimism Bias

  16. BE provides fresh thinking for current challenges in the sector (3) How do we leverage the power of the Open Banking revolution effectively? Create customer-centric solutions aligned with real behavioural journeys & ‘jobs to be done’ Play to System 2 at the right time to create ‘positive friction’ and grab attention Finding the right customer-centric language (framing) to communicate benefits of new propositions Build trust, e.g. through leveraging Authority Bias, to support with safety & security

  17. BE provides fresh thinking for current challenges in the sector (4) How do we tailor touchpoints to be accessible for vulnerable customers? Behavioural Economics literature highlights startpointsfor optimisation

  18. The TBA Offer

  19. TBA Offer: 3 key areas for Banking & Finance Unlocking behaviours & building new habits • Inspiring & shaping behavioural architecture • Choosing & using products & services • Switching + retention behaviour • Cross-selling • Long-term behavioural change • Optimising existing propositions • New proposition development • Online vs offline vs multi-channel Behaviour change Customer journey optimisation • Connecting with • the customer perspective • Comms strategy • Materials & touchpoints • Toolkits & training Communications development

  20. TBA offer consultancy services to build BE-capabilities internally • Consultancy services • Capacity building • Audits • Training • Toolkits & frameworks Behaviour change Customer journey optimisation • Conferences & whitepapers • Expert commentary Communications optimisation • Newsletters • Knowledge hubs & databases • Employee behaviour change

  21. Example Case Studies Behaviour change

  22. Case Study, Behaviour Change:Communications strategy to drive app usage KEY INSIGHTS AND IMPACT BEHAVIOURAL OBJECTIVE How can we use triggers to encourage switching and drive app habit formation for a search app. Old habits die hard - muscle memory of competitor app usage is strong and there is no reason to switch Context is king – most frequently used apps sit on home screen On boarding currently requires too much cognitive effort Early repeat usage is key to surface rewards and drive habit – continual messaging required to nudge consumers Global tech company THE TBA APPROACH • Behavioural hypothesis development – esp. the Hook Model of habit development • Stakeholder reviews • Digital consumer self-ethnography • Interactive debrief workshop to build comms strategy This allowed us to identify key strategic priorities, as well as executional guidelines for both communications and product development.

  23. Case Study, Behaviour Change:Redeeming credit card rewards KEY INSIGHTS AND IMPACT BEHAVIOURAL OBJECTIVE … what would encourage our various types of customers to redeem their credit card points? Customers lack mental bandwidth to understand rewards and knowledge about redemption knowledge is particularly hazy Customers conceptualise their rewards in different ways –message framing & behaviour nudges can be tailored to different segments US Bank THE TBA APPROACH • Behavioural hypothesis development & data analytics • Customer behaviour deep dive – online research ‘blog’ • In-home immersions to bring to life archetypes • BE-Inspired analysis TBA developed 6 customer archetypes, with tailored recommendations on how to frame messages and drive redemption. These insights are being implemented to help the client form a more meaningful connection with their customers around rewards

  24. Case Study, Behaviour Change:Getting people swimming KEY INSIGHTS AND IMPACT BEHAVIOURAL OBJECTIVE … how can we get people to go swimming more regularly (at all stages of the journey)? Swimming lacks salience – people ANCHOR to childhood lessons and lanes which feel irrelevant. They are not PRIMED to swimming as it is less visible than other sports The HABIT LOOP is weak – e.g. uninviting environments and conflicting interests in the pool undermine the swimming ‘Reward’ THE TBA APPROACH • Behavioural hypothesis development • Swimming memories journey mapping • Swimming notebook / diary • Behavioural Immersions • Creative sessions with consumers • TBA developed a 3 Frontiers Framework: • Frontier 1: Increase salience of swimming • Frontier 2: Improve the overall experience • Frontier 3: Tailor the offer • The client built their new consumer-centric strategy around this framework.

  25. Example Case Studies Customer journey optimisation

  26. Case Study, Customer Journey Optimisation:Driving online loans applications KEY INSIGHTS AND IMPACT BEHAVIOURAL OBJECTIVE … how do we increase conversion through the online loans application process? Understanding consumer mindsets pre-journey – two different consumer mindsets – THINKING and DOING – need to speak to both types of consumers Key frustrations in existing journeys – specific, actionable areas to improve site usability – such as improving cognitive ease – were brought to life through consumer videos Retail bank THE TBA APPROACH • Behavioural hypothesis development • Stakeholder interviews • Competitive context review • Consumer self-ethnography • Consumer immersion • Interactive workshop Behavioural-based ideas to nudge consumers – co-created a long list of quick wins and strategic projects to transform the way consumers approach and navigate the application process These ideas are now being tested and implemented across their brands

  27. Case Study, Customer Journey Optimisation:Increasing the uptake of mortgage protection KEY INSIGHTS AND IMPACT How do we ensure mortgage protection products are considered & chosen through the mortgage journey? BEHAVIOURAL OBJECTIVE Customers do not have mental bandwidth to consider insurance during the mortgage interview Cover is not front of mind when they arrive Sense of ownership grows during the mortgage journey – Life Insurance feels more relevant later on Key to tailor comms for different stages of the journey THE TBA APPROACH • Map mortgage journey & build hypotheses about challenges & opportunities • Mortgage Adviser observed interactions & call listening • Customer behavioural journey deep dive • Behavioural Activation workshop Behavioural Activation workshop with a cross-functional team identified short-term & longer term activation ideas to make protection more salient at key points in the journey These initiatives are being implemented by a number of different teams across the Business

  28. Example Case Studies Communications development

  29. Case Study, Customer Journey Optimisation:Optimising Customer Communications KEY INSIGHTS AND IMPACT How do we ensure customers can make informed choices about their retirement decisions? BEHAVIOURAL OBJECTIVE Communications must be grounded in customer experience, against a clear behaviour goal & create cognitive ease. Language must be carefully crafted in that context. Key to apply BE in an ethical way, i.e. nudging behaviours in customer’s own interest versus creating clarity around their choices THE TBA APPROACH • Stakeholder interviews • Communications Audit & development of BE-led analysis framework • In-context customer research – existing & BE-optimised comms • Voice audit • Workshops & toolkit development A toolkit & bespoke training course has been produced to support the ongoing application of the communication development framework. These tools are being implemented across the business, integrated with a new tone of voice Customer satisfaction scores on one piece of communication jumped from c. 3/5 to 4.9/5

  30. Thank you! jamie@thebearchitects.com camilla@thebearchitects.com

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