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Optimising contact centre performance using behavioural economics

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Genesis presentation, CCMG Conference 2017
Behavioural economics, which studies human decision-making behaviour, proves to be a powerful tool in optimising contact centre performance. Behavioural economics has been used successfully in the contact centre environment to address a range of customer challenges and behaviours across a range of industries.

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Optimising contact centre performance using behavioural economics

  1. 1. Optimising contact centre performance using behavioural economics “Oh, the Places We Will Go!” Conference 28 August 2017
  2. 2. WHO WE ARE: We're a team of management consultants that specialise in human behaviour and thinking. We help businesses grow and become more profitable by effecting large-scale customer behaviour change using behavioural economics. OUR CLIENTS INCLUDE: 2
  3. 3. Table of Contents Introduction to behavioural economics Behavioural economics around the world Using behavioural to improve contact centre performance Our approach
  4. 4. Which table would you prefer in your dining room? 4
  5. 5. In fact they are identical - this is a visual illusion… 5
  6. 6. Behavioural economics, the convergence of economics, psychology and sociology, studies human decision-making and takes seriously the fact that we often behave in consistent counter-intuitive, or irrational, ways 5 …decision-making has illusions too Would you rather take a certain $80… Or have a 85% chance of winning $100 and a 15% chance of getting nothing? Psychology of preferences
  7. 7. Heuristic example 1 7 Rates of organ donation membership across a sample of European countries (Percentage of the population, 2008) 86% 100%100%100%100% 97% 100% 12% 17% 28% 4% Netherlands Belgium FranceAustriaGermanyDenmark United Kingdom Portugal SwedenPolandHungary Check the box alongside if you want to join the organ donation program Check the box alongside if you DO NOT want to join the organ donation program 1
  8. 8. 16% 0% 84% SCENARIO 2 Heuristic example 2 8 68% 32% SCENARIO 1
  9. 9. 9
  10. 10. Some examples of these patterns include … Source: 1. Cognitive Bias Codex, 2016 10
  11. 11. Table of Contents Introduction to behavioural economics Behavioural economics around the world Using behavioural to improve contact centre performance Our approach
  12. 12. Organisations from around the world have applied behavioural economics… 12 HSBC nudge app Lloyds Bank Money Manager JPMorgan Chase Financial Solutions Lab Barclays Bank Behavioural Finance Unit Discovery Health Vitality The Obama campaign The Behavioural Insights Team The Behavioural Economics Team #ogilvychange AIG Insurance Ipsos AIA Group
  13. 13. …and have achieved demonstrable commercial success 13 The Behavioural Insights Team Lloyds Bank Money Manager AIG Insurance HSBC nudge app JPMorgan Chase Financial Solutions Lab Barclays Bank Behavioural Finance Unit The Obama campaign The Behavioural Economics Team #ogilvychange Ipsos AIA Group The Obama campaign Barclays Bank Behavioural Finance Unit • Addresses the behavioural nature of risk to achieve outcomes that are good for members, society, and insurers • Grows by 18% per year in new business Discovery Health Vitality
  14. 14. Table of Contents Introduction to behavioural economics Behavioural economics around the world Using behavioural to improve contact centre performance Our approach
  15. 15. CASE EXAMPLE 1: Increased short-term insurance sales by optimising the full leads process Proportion of leads that translated into a quote increased by 28%-points (Average transfer-to-quote ratio, 2015) 43,31% 53,92%41,97% 25%-3% 43.1% Overall increase in sales 25% 28% Endowment effect: “Some insurance companies overcharge by as much as 20%” Default effect: “Should we begin with your car, house or contents?” Anchoring: Agents pitch the premium at higher price by loading it at first Reciprocity: Allow one “discount” from the agent and one from the manager 31%16% 1,751,50 2,07 1,58 Average sales increased by 16%-points (Average sales per agent per day, 2015) 16% Historical (Six-month average) Pilot (One-month average) Historical (Six-month average) Pilot (One-month average) Lead warmers1 Sales agents2 TestControl TestControl TestControl TestControl 15
  16. 16. CASE EXAMPLE 2: Three-fold return on investment realised in two months Investment returns X X Total value of sales during pilot Expected value of sales without intervention Y 3.1Y 0,68X Multiple of actual sales from expected sales & ROI multiple The campaign had actual sales more than three times the value that was expected without intervention The client realised a 2.68 return on the investment of the project Project investment A behaviourally-informed script was introduced to an unscripted environment Agents were encouraged to drive conversations & aim for first-call resolution Focus on the structure of inbound calls optimised conversations Tools used for improved cross-sell ability in outbound calls Customer needs established created, analysed and satisfied Agent upskilling and supporting collateral was crucial for correct implementation of the script Examples of behaviourally- informed collateral 16
  17. 17. Applied behavioural techniques to four key decision points throughout the transactional product/forex sales call CASE EXAMPLE 3: Improved the probability of a funded sale within retail bank’s contact centre Achieved a 45% increase in the likelihood of a funded sale with the new behaviourally-informed script The hook: “Are you happy with your current bank fees?” 1 Needs analysis: Understand upfront how the client would like to bank 2 Compliance: Distributed throughout script to limit cognitive strain 3 Product pitch: Value positioned in a way that resonated with clients 4 Test 5.2% 7.5% Control +44.2% Probability of success increased by 44.2% (% of conversations that resulted in a sale, 2014) 17
  18. 18. CASE EXAMPLE 4: Increased software sales in a highly competitive B2B telesales environment Four-step process aimed at improving software telesales performance in a B2B environment Sunk cost effect Default effect Negativity bias Analysed key insights from inbound and outbound calls Designed behavioural toolkit for inbound and outbound calls Interactive training aimed to embed key learnings One-on-one coaching with agents 1 2 3 4 R187 726 +29% Historical R241 273Pilot Performance increased by 30% (Three-month average) Average sales per agent increased by approximately 30% (Rand value of monthly sales per agent, 2014) (One-month average) 18 Selling multiple, complex software products Large and small ticket items Unscripted conversations
  19. 19. CASE EXAMPLE 5: Significantly improved conservation of retirement savings R297 805 R116 767 +155% 3M 0 2M 1M 7M 5M 6M 4M December January FebruaryNovember May The full roll-out of the new script resulted in a 155% increase in Rand amount conserved per day (Daily Rands conserved per agent, 2016) Performance during the pilot indicated that a 139% improvement in conserves in the long-term (Monthly Rands conserved per team, 2015) Control Treatment +139% Historical (Three-month average) New script (Two-month average) Behavioural toolbox Pilot results Roll-out results Expected result Actual result Positive framing Convert the call into a conversation about saving for a happy retirement, rather than being about a withdrawal 1 Anchoring Before telling the client the fund value, anchor the client on the savings value they should accumulate before retirement 2 …and others Herd effect, recency bias, hyperbolic discounting, etc. 3 19
  20. 20. CASE EXAMPLE 6: Increase in self-service channel usage at a large home entertainment provider • The Genesis team sought to change customer behaviour by encouraging customers to make use of self-service channels (such as the website, smartphone app) rather than the contact centre • Behavioural economics was used in scripting and process redesign to achieve a 146% increase in self-service usage Scripting Process redesign 1 2 Personalisation: “Customers like you are solving this query by…” Overall increase in self-service usage: 146% Assisted in breaking-down the learned behaviour of customers calling the contact centre in response to any issue Herd Effect: “Mr Smith, most of our customers are solving this query by…” 20 36% 32% 76% 90% Logins 146% Service queries Payment queries Transactions 100% Account queries Total queries 3
  21. 21. CASE EXAMPLE 7: Increasing sales by combining behavioural economics and big data 21 Process changes Increased campaign priority Four new lead-triggers were added to the three existing triggers, improving lead-quality for all agents Triggers were added to the dialler and made visible to all agents. This provided the agents with more context to the client and the conversation Total insurance sales per team (Monthly sales, 2016) 50 36 0 10 20 30 40 50 JuneMayAprilMarchFebJan ControlTest Pilot Historical underperformance of test team Pilot outperformance of test team Behavioural tools used in scripted conversations Difference in team sales performance per period (Monthly sales, 2016) 36 Control -50% Test 50 36 Control Test +39% Historical Pilot +89% Insights and actions Pilot results Avoid choice-overload by offering only the insurance product associated with the relevant trigger Herd effect: “We are able to find a lower premium for 60% of our clients” Anchoring: “We have two policies for you. The first costs R700 per month, the second is R200 per month” Process changes affected everyone 1 2 Exclusivity: “We are calling because you are an existing client”
  22. 22. Table of Contents Introduction to behavioural economics Behavioural economics around the world Using behavioural to improve contact centre performance Our approach
  23. 23. Our range of services is cumulative in a broader approach Rapid test Big bang 5-10 days 5-10 days 6-8 weeks 3-4 months 1-3 months 2-4 months 12+ months • Decision mapping • Behavioural research & insights • Behavioural analysis & segmentation Behavioural Analysis Behavioural- Change Design • Decision mapping • Behavioural research & insights • Behavioural analysis & segmentation • Nudge design • Loyalty & incentive design • Behavioural economics capability builds • Training in behavioural economics Capability Building Behavioural Prototyping • Nudge design • Loyalty & incentive design • Decision mapping • Behavioural research & insights • Behavioural analysis & segmentation • Field testing & piloting • Channel & campaign optimisation Timelines 23
  24. 24. Boitshepo Gaitate boitshepog@genesis-analytics.com +27 (0)64 753 6538 For more information:

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