Stripping it back to behaviour. CRM for charity communicators conference, 2 December 2014

Copyright © 2014 Prime Decision

Breakout A: Stripping it back to behaviour

Natalie Horne, Strategy Director

[email protected]

prime-decision.com | @primedecision


What does Prime Decision do?

We help organisations find new and

unexpected solutions to old challenges.

How? By focusing on behaviour.


Client partners:


Academic collaborators:


The space we play in

� Research and data analysis

� Insight and assessments

� Strategy and planning

� Optimisation and experimentation

� Experience design

� Innovation & co-creation

� Behavioural economics workshopsScript

SocialStory

Sync

Sense Scenario

Structure


Supporters

StaffVolunteers

Public Service-users

Challenging boundaries

Seeing existing behaviours as a resource


� 224 million Twitter

mentions

� 1.2 billion global

impressions

Awareness


� 5 years, 46 Fellows, minimum gift of £100,000 each

� 50% are now participating actively as volunteers

Engagement


Services


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


The best option:

a. 40% chance of winning £22.50 gain £9

b. 5% chance of winning £180.00 gain £9

c. 65% chance of winning £15.40 gain £10

d. 25% chance of winning £36.00 gain £9

e. 80% chance of winning £11.25 gain £9


Get ready!


More winsor losses?


X 4

X 6

More wins or losses?


What did behavioural economists discover?

� We are bad at judging probabilities

� We are good at judging frequencies

+ many other patterns


Key insight:We’re much less

rational than we

might imagine!


5 classics: Defaults

80% 20%


5 classics: Defaults

(Johnson & Goldstein, 2003)


5 classics: Endowment

(Knetsch, 1992)


5 classics: Endowment

(Knetsch, 1992)


� Web subscription £59

� Print plus web £125

� Web subscription £59

� Print only £125

� Print plus web £125

52%

increase

68%

32%

16%

0%

84%

5 classics: Framing


5 classics: Anchoring

� 90% survival rate

vs.

� 10% mortality rate

£99 paid off

£175 paid off

On a monthly bill of £435…

Copyright © 2014 Prime Decision(Hershfield et al., 2011)

5 classics: Hyperbolic discounting


Counter intuitive or common sense?

� Primacy effect

� Priming effects

� Hyperbolic discounting

� Status quo bias

� Conjunction bias

� Conformity effects

� Affect heuristic

� Omission effects

� Availability heuristic

� Risk aversion

� Loss aversion

� Framing effects

� Anchoring

� Confirmation bias

� Endowment effect

� Social norms

� Peak end rule

� Asymmetric dominance

� Leniency bias

� Mental accounting

� Salience

� Social proof

� Misattribution

� Reciprocity


Prospect Theory (1974) Amos Tversky & Daniel Kahneman


System 1

� Automatic

� Fast

� Intuitive

� Emotional

System 2

� Effortful

� Deliberate

� Logical

� Rational


A creative, experimental

approach to understanding

and changing behaviour

Behavioural science =

Strategic Tactical


3 deceptively simple questions:

1. What are people doing?

2. What could they do differently?

3. What could this change be worth?


+9%# donations

+5%Total £ raised

Buy antibiotics for an African child to stop them dying of TB, with just £1

�

Buy antibiotics for an African child to stop them dying of TB

Target behaviour: Optimise donations


1. Promoting digital self-service

Automotive example


The story in a nutshell

Reliance on voice is a customer habit.

But it’s also an internal habit. Right now, people are

being driven towards voice by default, not by design.


Granular analysis:

X% of calls are asking for

standard information

X% of calls are asking for or

amending personal

information

X% are completing an

action that could have

been done digitally X% require support on a

more complex task


Why humans not robots?

Big picture:


Where to focus?

Remove

Migrate

Improve

Neutralise

the need

Change the

channel

Enhance the

experience


Redesigning touch-points:

� Web chat optimisation

� Agent co-creation

� Social media review

� Website and contact page

� Collateral CTAs

� Welcome pack amendment

…etc.


2. Preventing opportunistic fraud

Insurance sector


Prosecute

criminals

Raise

premiums

Design experiences

which promote honesty

and accuracy


Behaving honestly = a balancing act

Maintaining a positive view of myself

Cheating for my own benefit

According to psychologists and behavioural economists

(Ariely, 2011)


Behaving honestly = a balancing actAccording to psychologists and behavioural economists

(Ariely, 2011)


Depletion

Moral

reminders

Format


Depletion, time-pressure and self-control

(Mead et al, 2009)

(Shalvi et al, 2012)


Intervention: Commitment device

C.

Control

No opportunity to cheat

Opportunity

Cheating is possible

B.A.

Pledge

Agree to act honestly/morally

I recognise that I have moral obligation to complete this task honestly.


Experiment: Results

0%

1%

2%

3%

4%

5%

6%

7%

8%

Control Opportunity HonestyPledge

75%decrease in

high claims

95%

Decrease in

maximum

claims

I recognise that I have moral obligation to complete this task honestly.


� What would a customer journey look like which was

designed to promote honesty and accuracy?

Claims processes

Marketing touch-points Customer communications

Investigation and EUO

Preventing opportunistic fraud


3. Boosting brand engagement

Customer-facing approach


Red Bull: Giving wings to the science of focus


Digital content, fuelled by behavioural insight


Analysing behaviours: The Seven Lenses

Script

SocialStory

Sync

Sense Scenario

Structure(One of Prime Decision’s proprietary analytical frameworks –contact for cheat sheet)








The Seven Lenses – Breakout D

Script

SocialStory

Self

Sense Scenario

Structure(A proprietary analytical framework –contact for cheat sheet)


Conclusions and questions

� Use a behavioural perspective to

challenge organisational siloes

� Remember the ‘silent factors’

� Be resourceful

� Connect insight with action

� Experiment!


Hopefully see you for Breakout D!The Seven Lenses: mini masterclass

Email: [email protected]

Twitter: @natalie_horne

LinkedIn: /nataliehorne

Date post:	15-Jul-2015
Category:	Government & Nonprofit
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Stripping it back to behaviour. CRM for charity communicators conference, 2 December 2014

Government & Nonprofit