Achieving Behaviour Change

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Will Shuckburgh, Nectar: Achieving Behaviour Change

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  • Recyclebank Currently operating in the Royal Borough of Windsor and Maidenhead, Halton Borough and London Borough of Lambeth Local Green Points Local Green Points is a means with which local authorities can incentivise residents and communities to lead sustainable, healthy lives and reward them for so doing Actions are monitored and measured and rewards given based upon individual or community performance. Behaviour is tracked using: RFID Chip and on-vehicle weighing Bespoke Stickers Bar code tags Green Points can then be redeemed in ways relevant to the demographics of the individual or community and include (but are not limited to): Discount or full payment for eco-products and services Free or discounted access to council owned health facilities Discounts or payments for other accredited goods and service Currently operating in Bexley, London Points for Life Pilot aimed to test new ways to help people eat and act more healthily. The idea was to reward people for healthy choices, so people would build up points for all the healthy foods they bought and the exercise they did. These points could then be traded in for prizes. Manchester City Council, NHS Manchester and the Department of Health all put resources towards testing this approach. Decided not to launch points for life Pounds for Pounds Pilot scheme piloted in Kent in which participants will be given a £1 ASDA shopping voucher for every pound they shed Among the 100 who completed the course, the average weight loss over the year was 25lb. Two-thirds of the volunteers failed to reach their weight loss target.
  • Achieving Behaviour Change

    1. 1. Achieving Behaviour Change15th March 2012Will ShuckburghClient Services DirectorNectarw.shuckburgh@loyalty.co.uk
    2. 2. Agenda • Introduction to Nectar • A history of changing behaviours in the private sector • Is this relevant for the public sector? • What makes a successful behaviour change programme? 2
    3. 3. Aimia is a global leader in loyalty management, andoperates loyalty solutions across twenty markets COALITION PROPRIETARY LOYALTY LOYALTY LOYALTY ANALYTICS Aimia owns and Aimia manages over Aimia enables operates mass market 100 loyalty companies to gain multi-participant programmes for insight from their data loyalty programmes clients across the and make better on behalf of clients globe, in a variety of decisions sectors 3
    4. 4. Nectar is the UK’s largest loyalty programme reaching over 50% of households Nectar penetration in the UKNote: Nectar penetration at Nov 2011 4Source: Nectar Monthly Statistics
    5. 5. The Nectar coalition brings together leading brandsand engages over 18.5M active Collectors Points Issuing Partners Nectar Collectors Rewards Partners Nectar marketing channels Nectar Business partners ► Nectar data & analytics 5
    6. 6. Agenda • Introduction to Nectar • A history of changing behaviours in the private sector • Is this relevant for the public sector? • What makes a successful behaviour change programme? 6
    7. 7. Aren’t points just used to encourage repeat purchase? "These channels are delivering high value customers and the Nectar scheme is helping to shape customer behaviour, with more customer now submitting meter reads online, moving to paperless billing and choosing to pay by Direct Debit, with the incentive of receiving additional loyalty rewards."Source: marketingmagazine, July 2011 7
    8. 8. Do they work? Paperless Billing Bags used (indexed) registration (indexed) 100 100% 200% 160 150 -28% +60% 100 80 100 72 50 0 Bag Bag + Nectar + + Nectar Points incentive improved bag Nectar Points incentive successfully drivenre-usage by c. 30% in the 4 months after launch Collector sign up to paperless billing 8
    9. 9. Points can even make you go that further mile… Rob Courtney joined Fitbug inAverage number of monthly steps taken (Indexed) March 2010 and lost a stone in six10,000 140 weeks 8,000 120 +14% “All of this [lifestyle change] has been down to 2 things 1: having a tough yet achievable target set by Non-Nectar Fitbug. 2: knowing youre getting rewarded with Nectar points and weight loss for your efforts.” Neil Harrison 6,000 100 has slimmed down a total of 2 stone with Nectar and Fitbug 4,000 80 Jan 2010 Jun 2010 "I feel so much better since joining Fitbug. [...] I also love collecting the Nectar points - 240 so far this month just by topping 12,000 steps every day!” 9
    10. 10. Indeed, consumers increasingly expect to be rewardedfor more than just their purchase behaviour Collect points on your Collect points for everyday web searches watching advertisements, responding to surveys and visiting websites 10
    11. 11. Why use points not cash? Cash discount (20%) vs. Triple Points (3%) Similar response rates = lower cost per response with Nectar 100% £5 off £25 shop Triple Points on £25 = 20% rebate shop = 150 Points = £0.75 = 3% rebate 80% -67% 60% Offer cost Very similar 40% response rates 20% Mailing cost Cash discount 0% Triple points Cash discount Triple points Higher spend... ...and greater retention for Nectar respondents 70% 90% 60% 50% +4% 80% 40% +15% 30% 70% 20% 10% 0% 60% Cash discount Triple points Cash discount Triple points 11
    12. 12. Agenda • Introduction to Nectar • A history of changing behaviours in the private sector • Is this relevant for the public sector? • What makes a successful behaviour change programme? 12
    13. 13. Local authorities are being encouraged to adopt newmethods to drive positive behaviour change “The traditional tools of Government have proven to be less successful in "The building of a bigger, stronger addressing behavioural problems. We society will not be done by government need to think about ways of but by citizens" supplementing the more traditional tools of government, with policy that helps to David Cameron encourage behaviour change” Gus O’Donnell, Cabinet Office “We could easily make people both wealthier and healthier by devising friendlier choice environments, or “Where individuals change their architectures.” behaviour to the benefit of society they should be rewarded.” Richard H. Thaler, Co-Author of “Nudge: Improving Decisions about Health, Wealth Mike Freer, Conservative Member of and Happiness” Parliament for Finchley and Golders Green 13
    14. 14. Local authorities are beginning to incentivise positivebehaviour change amongst residents 14
    15. 15. Recently Nectar has proven the ability to change behaviour in the Public Sector Recycling Leisure • 100 Bonus Points for • 100 Bonus Points for registering to collect Nectar registering to collect Nectar points for recycling points for leisure centre visits • 25 Points for each recycling • 100 Bonus points for new collection member sign-up • 100 Bonus points for registering to pay for membership by direct debit • 25 Points per leisure centre visit Results so far Results so far • 25% of eligible households • Consistent increase in have registered for the Nectar frequency of leisure centre recycling offer visits and new member sign- ups • 9% of households who didn’t recycle paper/card before are now doing so regularly 15Note: results after 4 months
    16. 16. Agenda • Introduction to Nectar • A history of changing behaviours in the private sector • Is this relevant for the public sector? • What makes a successful behaviour change programme? 16
    17. 17. Key things to consider when designing andimplementing a behaviour change programme Create awareness through effective marketing to ensureAwareness Measurable Ensure you can prove the ROI that residents are aware of the scheme Ensure the incentive is Ensure the incentive and the powerful enough to drive EffectiveRelevancy rewards are relevant for the consistent and lasting Incentive resident behaviour change The proposition should be Costs should be manageable easy to understand ManageableSimplicity and sustainable to ensure the It should be easy to register costs longevity of the programme for and to earn and redeem points 17
    18. 18. Many schemes look to utilise data. How you do this iscentral to how the public will react THE NEW DATA VALUES TRANSPARENCY ADDED VALUE CONTROL TRUST 18 18
    19. 19. Thank you!Will ShuckburghClient Services DirectorNectarw.shuckburgh@loyalty.co.uk 19

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