SlideShare a Scribd company logo
1 of 40
Download to read offline
Getting people to do what you want

*Lavender
TC Miles - Planning Director
What is Lavender*
                Brand design
Campaigns       Advertising    SHORT
                                TERM
                Lead systems



                Dialogue
Relationships   1:1 programs           MEDIUM
                                        TERM
                Satisfaction



                Interfaces
Systems of
                Applications                    LONG
interaction                                     TERM
                Communities
Clients
Our Heritage
Direct Marketing
                                            Behavioural
                                            Change
Our Philosophy
Ideas that people want to spend time with
Traditionally the end of the process

           !"#$%&%''(       012#*(3$#&4($%#556(
                             7&4%$'*#&4(8%9(
                          Advertising methodology is focused on:
                        !4:%$.',&;(8%*2/4/5/;6((2#'(
            )&*%$%'*(   3%%&(#3/7*(2/"("%($%5#*%(*/(
                          - how we relate to people
                        <%/<5%(=(>/-7',&;(,&-$%#',&;56(/&(
                        %8/.:%(,&',;2*'(

                          - emotive insights
                        ?$%4,-#*%4(/&(*2%(3%5,%>(*2#*(
            +%',$%(     8/'*(4%-,',/&'(#$%(*2/7;2*(
                        #3/7*(
                          & the belief that most decisions are thought
                          through and have to be prompted
            !-./&(
Most people act first and think later
A different way to look at things

       !"#$%&       4(-&)$5($%(&-$&0"-&

                                          - Most decisions are not thought through

       '()*+(&      6((2&                 - Behaviour is driven by channel as much
                                          as attitudes - what’s happening in the
                                          moment
      ,%-(+()-&     78*%/&
                                          - Focus on the how & not so much the
                                          what

     .*/(01*2*-3&   69-9+(&*%-(%#$%&
The most effective campaigns
understand this




                        2009 Effie Gold Winners
Behavioural Change


           Why do we do things?

            How do we behave?

        What influences our decisions?
A lot of answers lie in “Behavioural Economics”
Am I going to go on that                     How much should I pay for
              second date?                               that cup of coffee?




Should I get another drink?                                        Is it worth saving?




    Shall I ask that person for a                           Am i going to pay for a
               favour?                                         parking ticket?


                                    Am I happy with those
                                           jeans?
Overall finding:
        We are complex people living in a complex world



An innate desire    Bad at making      Influenced by           Hate parting
    to fit in          decisions        surroundings           with things


  Social Norms     Paradox of Choice   Relative Positioning    Loss Aversion
Remember,
every consumer has the option of doing nothing
So how do we help people to do
       what we want?
1. Spend more time appealing to satisficers




              Maximisers                                        Satisficers
    Show-offs, competitive, seeking the best/new   Fitting-in, risk averse, tried & tested. Happier
So do everything you can to minimize risk




 Latest technology
                                                   Tried & Loved
Wide Colour Enhancer
                                                   1 million sold
 Digital Noise Filter
& Reinforce a good decision made or about to be made




                                       !"#$%&'()#*+(#,-)./#$0(*)(#1*00#,*12#
Thousands are coming                      If phones are busy, please
                       testimonials               call back
  back every week
2. If you’re looking to change behaviour appeal to
                    social norms




                                                     Georgetown University
     Saskatchewan Ministry of Health
                                       Drink Consumed – down 12%, men fighting – down 33%
Helping people to compare themselves creates good results




                                              25%
3. Get people to make a decision for the future
         (or take away the pain today)


  What would you like to eat   What would you like to eat
      in a weeks time?                  now?
The Save Tomorrow Pension


10% of any future pay rises go direct to your pension


         200% increase in pension sign-ups
4. Reduce people’s choice




24 to 6 Jars        26 to 15 varieties
 5x sales              +10% sales
Lack of choice also makes you happier
5. Always have a default option



   16gb                           64gb
   WiFi Only                      WiFi & 3g
Help people make the compromise choice



                  Maximum




                                   Rule of 3
                    x

                  Minimum
Never make it a ‘yes’, ‘no’ decision
6. Help people anchor their decisions
If I was to offer you any off the
following at the same price:

- A week in Alberta
- A week in Dawson City
- A week in Dawson City with meals
included
Adjacencies
- chips & dips
- cheese & wine
7. Appeal to people’s values
8. People respond to positive experiences




                         Tested in Glamorgan & Thames Valley police – reduced speeding by 35%
Make it a conversation


                   + 40% Conversion




                   !"#$%&'(
                   )#*&+,%"-(
9. Do someone a favour




Mints – surprise & delight – unprompted 14% increase in tip amount. An extra mint = 23%
.... and in the office....


Always use a post-it note




       69% response rate
and finally if you’re trying to negotiate a pay-rise....




            Your environment really matters
Summary

- Creating action is the most important thing you can do
 - Help people minimize risk
 - Help people fit in
 - Take away the pain of buying
 - Restrict Choices
- Help people anchor their decisions
- Appeal to people’s values
- Make it a positive experience
- Do someone a favour
Further Reading


http://nudges.org/

http://timharford.com/

http://freakonomics.blogs.nytimes.com/

http://danariely.com/
Thank You*




*The agency for the consumer age.

More Related Content

Similar to An introduction to Behavioural Economics

Halverson Group: Six Factors That Drive Every Consumer Choice
Halverson Group: Six Factors That Drive Every Consumer ChoiceHalverson Group: Six Factors That Drive Every Consumer Choice
Halverson Group: Six Factors That Drive Every Consumer ChoiceGina Bazer
 
UX Week 2013: The New Me Generation: Behavior Change as Value Proposition
UX Week 2013: The New Me Generation: Behavior Change as Value PropositionUX Week 2013: The New Me Generation: Behavior Change as Value Proposition
UX Week 2013: The New Me Generation: Behavior Change as Value PropositionChris Risdon
 
Designing for behaviour change
Designing for behaviour changeDesigning for behaviour change
Designing for behaviour changePhil Barrett
 
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural EconomicsNatalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural EconomicsEdge Global Media Group
 
User Experience Doesn’t Happen on a Screen - It Happens in the Mind. Introduc...
User Experience Doesn’t Happen on a Screen - It Happens in the Mind. Introduc...User Experience Doesn’t Happen on a Screen - It Happens in the Mind. Introduc...
User Experience Doesn’t Happen on a Screen - It Happens in the Mind. Introduc...UXPA International
 
Behavioural economics and digital marketing
Behavioural economics and digital marketingBehavioural economics and digital marketing
Behavioural economics and digital marketingVyshnavi Doss
 
The Future of Surveys Smartees Breakfast
The Future of Surveys Smartees BreakfastThe Future of Surveys Smartees Breakfast
The Future of Surveys Smartees BreakfastInSites on Stage
 
Mass affluent lead gen and web based marketing for financial professionals
Mass affluent lead gen and web based marketing for financial professionalsMass affluent lead gen and web based marketing for financial professionals
Mass affluent lead gen and web based marketing for financial professionalsLoic Jeanjean
 
Slides for the day-long Lean Analytics workshop at the 2014 Lean Startup conf...
Slides for the day-long Lean Analytics workshop at the 2014 Lean Startup conf...Slides for the day-long Lean Analytics workshop at the 2014 Lean Startup conf...
Slides for the day-long Lean Analytics workshop at the 2014 Lean Startup conf...Lean Analytics
 
Startup Metrics: The Data That Will Make or Break Your Business by Alistair C...
Startup Metrics: The Data That Will Make or Break Your Business by Alistair C...Startup Metrics: The Data That Will Make or Break Your Business by Alistair C...
Startup Metrics: The Data That Will Make or Break Your Business by Alistair C...Lean Startup Co.
 
The Bright Future of Market Research Smartees Workshop
The Bright Future of Market Research Smartees WorkshopThe Bright Future of Market Research Smartees Workshop
The Bright Future of Market Research Smartees WorkshopInSites on Stage
 
Freemium Decentralized
Freemium DecentralizedFreemium Decentralized
Freemium Decentralizedthmvmnt
 
The Social Side of Behavioural Economics
The Social Side of Behavioural EconomicsThe Social Side of Behavioural Economics
The Social Side of Behavioural EconomicsDavid Perrott
 
Digital Marketing ROI at Blogworld NYC
Digital Marketing ROI at Blogworld NYCDigital Marketing ROI at Blogworld NYC
Digital Marketing ROI at Blogworld NYCChristopher Penn
 
Numu Multimedia Optism permission mobile marketing
Numu Multimedia Optism permission mobile marketingNumu Multimedia Optism permission mobile marketing
Numu Multimedia Optism permission mobile marketingEthos Interact
 
Ed Gillespie, Futerra
Ed Gillespie, FuterraEd Gillespie, Futerra
Ed Gillespie, Futerrawecc2012
 
Awesome Superproblems SAFe Summit Keynote 2019
Awesome Superproblems SAFe Summit Keynote 2019Awesome Superproblems SAFe Summit Keynote 2019
Awesome Superproblems SAFe Summit Keynote 2019Luke Hohmann
 

Similar to An introduction to Behavioural Economics (20)

Halverson Group: Six Factors That Drive Every Consumer Choice
Halverson Group: Six Factors That Drive Every Consumer ChoiceHalverson Group: Six Factors That Drive Every Consumer Choice
Halverson Group: Six Factors That Drive Every Consumer Choice
 
UX Week 2013: The New Me Generation: Behavior Change as Value Proposition
UX Week 2013: The New Me Generation: Behavior Change as Value PropositionUX Week 2013: The New Me Generation: Behavior Change as Value Proposition
UX Week 2013: The New Me Generation: Behavior Change as Value Proposition
 
Designing for behaviour change
Designing for behaviour changeDesigning for behaviour change
Designing for behaviour change
 
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural EconomicsNatalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
 
User Experience Doesn’t Happen on a Screen - It Happens in the Mind. Introduc...
User Experience Doesn’t Happen on a Screen - It Happens in the Mind. Introduc...User Experience Doesn’t Happen on a Screen - It Happens in the Mind. Introduc...
User Experience Doesn’t Happen on a Screen - It Happens in the Mind. Introduc...
 
Jon williams
Jon williamsJon williams
Jon williams
 
Behavioural economics and digital marketing
Behavioural economics and digital marketingBehavioural economics and digital marketing
Behavioural economics and digital marketing
 
The Future of Surveys Smartees Breakfast
The Future of Surveys Smartees BreakfastThe Future of Surveys Smartees Breakfast
The Future of Surveys Smartees Breakfast
 
Succeeding In Today's Multi-Channel Environment!
Succeeding In Today's Multi-Channel Environment!Succeeding In Today's Multi-Channel Environment!
Succeeding In Today's Multi-Channel Environment!
 
Mass affluent lead gen and web based marketing for financial professionals
Mass affluent lead gen and web based marketing for financial professionalsMass affluent lead gen and web based marketing for financial professionals
Mass affluent lead gen and web based marketing for financial professionals
 
Slides for the day-long Lean Analytics workshop at the 2014 Lean Startup conf...
Slides for the day-long Lean Analytics workshop at the 2014 Lean Startup conf...Slides for the day-long Lean Analytics workshop at the 2014 Lean Startup conf...
Slides for the day-long Lean Analytics workshop at the 2014 Lean Startup conf...
 
Startup Metrics: The Data That Will Make or Break Your Business by Alistair C...
Startup Metrics: The Data That Will Make or Break Your Business by Alistair C...Startup Metrics: The Data That Will Make or Break Your Business by Alistair C...
Startup Metrics: The Data That Will Make or Break Your Business by Alistair C...
 
The Bright Future of Market Research Smartees Workshop
The Bright Future of Market Research Smartees WorkshopThe Bright Future of Market Research Smartees Workshop
The Bright Future of Market Research Smartees Workshop
 
Freemium Decentralized
Freemium DecentralizedFreemium Decentralized
Freemium Decentralized
 
The Social Side of Behavioural Economics
The Social Side of Behavioural EconomicsThe Social Side of Behavioural Economics
The Social Side of Behavioural Economics
 
Digital Marketing ROI at Blogworld NYC
Digital Marketing ROI at Blogworld NYCDigital Marketing ROI at Blogworld NYC
Digital Marketing ROI at Blogworld NYC
 
Numu Multimedia Optism permission mobile marketing
Numu Multimedia Optism permission mobile marketingNumu Multimedia Optism permission mobile marketing
Numu Multimedia Optism permission mobile marketing
 
Ed Gillespie, Futerra
Ed Gillespie, FuterraEd Gillespie, Futerra
Ed Gillespie, Futerra
 
Sabram gfh'14
Sabram gfh'14Sabram gfh'14
Sabram gfh'14
 
Awesome Superproblems SAFe Summit Keynote 2019
Awesome Superproblems SAFe Summit Keynote 2019Awesome Superproblems SAFe Summit Keynote 2019
Awesome Superproblems SAFe Summit Keynote 2019
 

More from TC Miles

Brand Transformation Principles
Brand Transformation PrinciplesBrand Transformation Principles
Brand Transformation PrinciplesTC Miles
 
Twitter - Why it's a big deal
Twitter - Why it's a big dealTwitter - Why it's a big deal
Twitter - Why it's a big dealTC Miles
 
Authenticity & Brands
Authenticity & BrandsAuthenticity & Brands
Authenticity & BrandsTC Miles
 
How to engage employees
How to engage employees How to engage employees
How to engage employees TC Miles
 
Insight into Online dating
Insight into Online datingInsight into Online dating
Insight into Online datingTC Miles
 
The trouble with email
The trouble with emailThe trouble with email
The trouble with emailTC Miles
 
How to brand nations
How to brand nationsHow to brand nations
How to brand nationsTC Miles
 
How to make better decisions
How to make better decisionsHow to make better decisions
How to make better decisionsTC Miles
 
Insight into it managers
Insight into it managersInsight into it managers
Insight into it managersTC Miles
 
CEO insight Study & Implications
CEO insight Study & ImplicationsCEO insight Study & Implications
CEO insight Study & ImplicationsTC Miles
 
Why we are & How to be Happy
Why we are & How to be HappyWhy we are & How to be Happy
Why we are & How to be HappyTC Miles
 
How to do direct response advertising
How to do direct response advertisingHow to do direct response advertising
How to do direct response advertisingTC Miles
 
What would Tom Ford do?
What would Tom Ford do?What would Tom Ford do?
What would Tom Ford do?TC Miles
 
How to influence shoppers
How to influence shoppersHow to influence shoppers
How to influence shoppersTC Miles
 
Let’s get social
Let’s get socialLet’s get social
Let’s get socialTC Miles
 
Importance of search
Importance of searchImportance of search
Importance of searchTC Miles
 
How to develop Insights
How to develop InsightsHow to develop Insights
How to develop InsightsTC Miles
 
How to be creative
How to be creativeHow to be creative
How to be creativeTC Miles
 
How ideas spread
How ideas spreadHow ideas spread
How ideas spreadTC Miles
 
Gaming & Marketing
Gaming & MarketingGaming & Marketing
Gaming & MarketingTC Miles
 

More from TC Miles (20)

Brand Transformation Principles
Brand Transformation PrinciplesBrand Transformation Principles
Brand Transformation Principles
 
Twitter - Why it's a big deal
Twitter - Why it's a big dealTwitter - Why it's a big deal
Twitter - Why it's a big deal
 
Authenticity & Brands
Authenticity & BrandsAuthenticity & Brands
Authenticity & Brands
 
How to engage employees
How to engage employees How to engage employees
How to engage employees
 
Insight into Online dating
Insight into Online datingInsight into Online dating
Insight into Online dating
 
The trouble with email
The trouble with emailThe trouble with email
The trouble with email
 
How to brand nations
How to brand nationsHow to brand nations
How to brand nations
 
How to make better decisions
How to make better decisionsHow to make better decisions
How to make better decisions
 
Insight into it managers
Insight into it managersInsight into it managers
Insight into it managers
 
CEO insight Study & Implications
CEO insight Study & ImplicationsCEO insight Study & Implications
CEO insight Study & Implications
 
Why we are & How to be Happy
Why we are & How to be HappyWhy we are & How to be Happy
Why we are & How to be Happy
 
How to do direct response advertising
How to do direct response advertisingHow to do direct response advertising
How to do direct response advertising
 
What would Tom Ford do?
What would Tom Ford do?What would Tom Ford do?
What would Tom Ford do?
 
How to influence shoppers
How to influence shoppersHow to influence shoppers
How to influence shoppers
 
Let’s get social
Let’s get socialLet’s get social
Let’s get social
 
Importance of search
Importance of searchImportance of search
Importance of search
 
How to develop Insights
How to develop InsightsHow to develop Insights
How to develop Insights
 
How to be creative
How to be creativeHow to be creative
How to be creative
 
How ideas spread
How ideas spreadHow ideas spread
How ideas spread
 
Gaming & Marketing
Gaming & MarketingGaming & Marketing
Gaming & Marketing
 

An introduction to Behavioural Economics

  • 1. Getting people to do what you want *Lavender TC Miles - Planning Director
  • 2. What is Lavender* Brand design Campaigns Advertising SHORT TERM Lead systems Dialogue Relationships 1:1 programs MEDIUM TERM Satisfaction Interfaces Systems of Applications LONG interaction TERM Communities
  • 4. Our Heritage Direct Marketing Behavioural Change Our Philosophy Ideas that people want to spend time with
  • 5. Traditionally the end of the process !"#$%&%''( 012#*(3$#&4($%#556( 7&4%$'*#&4(8%9( Advertising methodology is focused on: !4:%$.',&;(8%*2/4/5/;6((2#'( )&*%$%'*( 3%%&(#3/7*(2/"("%($%5#*%(*/( - how we relate to people <%/<5%(=(>/-7',&;(,&-$%#',&;56(/&( %8/.:%(,&',;2*'( - emotive insights ?$%4,-#*%4(/&(*2%(3%5,%>(*2#*( +%',$%( 8/'*(4%-,',/&'(#$%(*2/7;2*( #3/7*( & the belief that most decisions are thought through and have to be prompted !-./&(
  • 6. Most people act first and think later
  • 7. A different way to look at things !"#$%& 4(-&)$5($%(&-$&0"-& - Most decisions are not thought through '()*+(& 6((2& - Behaviour is driven by channel as much as attitudes - what’s happening in the moment ,%-(+()-& 78*%/& - Focus on the how & not so much the what .*/(01*2*-3& 69-9+(&*%-(%#$%&
  • 8. The most effective campaigns understand this 2009 Effie Gold Winners
  • 9. Behavioural Change Why do we do things? How do we behave? What influences our decisions?
  • 10. A lot of answers lie in “Behavioural Economics”
  • 11. Am I going to go on that How much should I pay for second date? that cup of coffee? Should I get another drink? Is it worth saving? Shall I ask that person for a Am i going to pay for a favour? parking ticket? Am I happy with those jeans?
  • 12. Overall finding: We are complex people living in a complex world An innate desire Bad at making Influenced by Hate parting to fit in decisions surroundings with things Social Norms Paradox of Choice Relative Positioning Loss Aversion
  • 13. Remember, every consumer has the option of doing nothing
  • 14. So how do we help people to do what we want?
  • 15. 1. Spend more time appealing to satisficers Maximisers Satisficers Show-offs, competitive, seeking the best/new Fitting-in, risk averse, tried & tested. Happier
  • 16. So do everything you can to minimize risk Latest technology Tried & Loved Wide Colour Enhancer 1 million sold Digital Noise Filter
  • 17. & Reinforce a good decision made or about to be made !"#$%&'()#*+(#,-)./#$0(*)(#1*00#,*12# Thousands are coming If phones are busy, please testimonials call back back every week
  • 18. 2. If you’re looking to change behaviour appeal to social norms Georgetown University Saskatchewan Ministry of Health Drink Consumed – down 12%, men fighting – down 33%
  • 19. Helping people to compare themselves creates good results 25%
  • 20. 3. Get people to make a decision for the future (or take away the pain today) What would you like to eat What would you like to eat in a weeks time? now?
  • 21. The Save Tomorrow Pension 10% of any future pay rises go direct to your pension 200% increase in pension sign-ups
  • 22. 4. Reduce people’s choice 24 to 6 Jars 26 to 15 varieties 5x sales +10% sales
  • 23. Lack of choice also makes you happier
  • 24. 5. Always have a default option 16gb 64gb WiFi Only WiFi & 3g
  • 25. Help people make the compromise choice Maximum Rule of 3 x Minimum
  • 26. Never make it a ‘yes’, ‘no’ decision
  • 27. 6. Help people anchor their decisions
  • 28. If I was to offer you any off the following at the same price: - A week in Alberta - A week in Dawson City - A week in Dawson City with meals included
  • 29. Adjacencies - chips & dips - cheese & wine
  • 30. 7. Appeal to people’s values
  • 31.
  • 32. 8. People respond to positive experiences Tested in Glamorgan & Thames Valley police – reduced speeding by 35%
  • 33.
  • 34. Make it a conversation + 40% Conversion !"#$%&'( )#*&+,%"-(
  • 35. 9. Do someone a favour Mints – surprise & delight – unprompted 14% increase in tip amount. An extra mint = 23%
  • 36. .... and in the office.... Always use a post-it note 69% response rate
  • 37. and finally if you’re trying to negotiate a pay-rise.... Your environment really matters
  • 38. Summary - Creating action is the most important thing you can do - Help people minimize risk - Help people fit in - Take away the pain of buying - Restrict Choices - Help people anchor their decisions - Appeal to people’s values - Make it a positive experience - Do someone a favour
  • 40. Thank You* *The agency for the consumer age.