26/06/22 Copyright © 2013 PrimeDecision Copyright © 2013 PrimeDecision Behavioural Economics Natalie Horne Strategy Director, Prime Decision [email protected] prime-decision.com | @natalie_horne
Natalie Horne - OTE London - Behavioural Economics
May 13, 2015
Topic: Behavioural Economics
Key Takeaways:
How to hone in on human behaviour to market your product
Shaping communications to psychological decision-making tendencies
Improve ROI by becoming more effective at influencing choices to engage, act and buy
Key Takeaways:
How to hone in on human behaviour to market your product
Shaping communications to psychological decision-making tendencies
Improve ROI by becoming more effective at influencing choices to engage, act and buy
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Transcript
30/09/2013
Copyright © 2013 PrimeDecisionCopyright © 2013 PrimeDecision
Behavioural Economics
Natalie Horne
Strategy Director, Prime Decision
prime-decision.com | @natalie_horne
Who is Prime Decision?Marketing strategy with a behavioural edge
Copyright © 2012 PrimeDecisionCopyright © 2012 PrimeDecision
What is Behavioural Economics?
homo economicus
Optimal,Normative
Realistic,Descriptive
Get ready!
Which is the best option?
a. 40% chance of winning £22.50
b. 5% chance of winning £180.00
c. 65% chance of winning £15.40
d. 25% chance of winning £36.00
e. 80% chance of winning £11.25
a. 40% chance of winning £22.50 £9
b. 5% chance of winning £180.00 £9
c. 65% chance of winning £15.40£10
d. 25% chance of winning £36.00 £9
e. 80% chance of winning £11.25 £9
Correct =
Get ready!
WINLOSS
LOSS
LOSS
LOSS
LOSS
LOSS
WINWINWIN
More wins or losses?
More wins or losses?
X 4
X 6
What did behavioural economists discover?
We are bad at judging probabilities We are good at judging frequencies
+ many other patterns
Primacy effect Defaults Endowment effect Framing Availability heuristic
Social norms/approval Anchors Priming Commitment devices Hyperbolic discounting
Codifying human tendencies
Availability heuristic
Framing effects
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Print plus web$125
52%increase
68%
32%
16%
0%
84%
Priming
Primacy effect Defaults Endowment effect Framing Availability heuristic
Social norms/approval Anchors Priming Commitment devices Hyperbolic discounting
Codifying human tendencies
Copyright © 2012 PrimeDecisionCopyright © 2012 PrimeDecision
Applied BE
A creative approach to solving problems
Behavioural science:
Strategy
Tactics
Copyright © 2012 PrimeDecisionCopyright © 2012 PrimeDecision
Prosecute criminals
Raise premiums
Typical approach:
Copyright © 2012 PrimeDecisionCopyright © 2012 PrimeDecision
Target behaviour:
Get people to be more honest during the claim processes
Depletion
Moral reminders
Format
Proximity
Supervision
Experiment: Easter Bonus
I recognise that I have moral obligation to complete this task honestly.
Contro
l
Oppor
tunit
y
Hones
ty P
ledge
0%
2%
4%
6%
8%
75%decrease in high claims
95%Decrease in maximum
claims
Potential to scale
What would an insurance process look like that was designed to promote honesty?
Claims process
Marketing touch-pointsCustomer communications
There is a tremendous scope to apply psychological insights to reduce fraud
The Seven Lenses
Script
SocialStory
Sync
Sense Scenario
Structure
Our proprietary framework
Story: What do people
say? What do they not
say? How do they justify
their choices?Script: What are the habits? How could these be
strengthened/ disrupted?
Which other scripts could be mimicked/leveraged?
Social: What are others
doing? Are they aware of
this? What form
does/could this awareness take?Sense:
What are the stimuli? How/are they
perceived? How does this affect
their experience/choices?
Structure: Which choices are
presented? How are they
framed? What is the
rationale for the order/defaults?
Scenario: Which external or
emotional/personal factors could feature?
Is there scope to modify/personalise?
Sync: What are our own
biases? Have we tested our
assumptions? Have we missed alternative contexts?
Questions to ask:
Script
SocialStory
Sync
Sense Scenario
Structure
Copyright © 2012 PrimeDecisionCopyright © 2012 PrimeDecision
Typical approach:drive
more
traffic
Copyright © 2012 PrimeDecisionCopyright © 2012 PrimeDecision
Target behaviour:
Get (more) people to donate (more)
during the online booking process
Script
SocialStory
Sync
Sense Scenario
Structure
“Just £1”
In summary:
Copyright © 2012 PrimeDecisionCopyright © 2012 PrimeDecision
Define target behaviours
(measurable actions in specific contexts)
#1
Interrogate
(hypothesise, prioritise)
#2Script
SocialStory
Sync
Sense Scenario
Structure
Copyright © 2012 PrimeDecisionCopyright © 2012 PrimeDecision
Experiment!
#3
30/09/2013
Copyright © 2013 PrimeDecisionCopyright © 2013 PrimeDecision
Get in touchNatalie Horne
Strategy Director
prime-decision.com
@natalie_horne
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