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#Ogilvychange case-studies 2013-14


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#Ogilvychange case-studies 2013-14

  2. 2. INTRODUCTION P.T.O. Sometimes it really is the small things that matter. Reducing the choice overload to one of three options. Letting people know how many items are left to buy. Priming people to participate. Chunking up hard to read emails. Telling people what the most popular choice is. Painting babies’ faces onto shop shutters. Our priority is delivering results that really matter to our clients. ROI of £257 for every £1 spent. Improving customer retention rates by a third. Over 40 million metres run. 47% more responses at no extra cost. Doubling of sales. An 18% reduction in anti-social behaviour. At #ogilvychange we’re proving that behavioural science can change behaviour for the better, not by thinking big, but by starting small. At #ogilvychange, we dare to be trivial. Web: Twitter: follow us @OgilvyChange
  3. 3. BEHAVIOURAL CHALLENGE Faced with the rise in free newspapers and now competing with tablets and apps on the daily commute, The Times recognised they needed a new business model and help to sell it. #ogilvychange were briefed to design new choice architecture that helped nudge people into buying the higher priced annual print and tablet subscriptions to The Times and The Sunday Times. Behavioural e-Merchandising THE SOLUTION #ogilvychange developed 4 little nudges that worked together to increase subscriptions. The key nudge used the principles of relativity1 and framing2 to create a psychological discount of £2. This choice architecture works by capitalising on the mental shortcuts the brain makes when adding up the features within the differences between the Digital, Classic and Ultimate Pack and nudges people to the right and the higher priced packs. THE RESULTS The total sales of the ‘Ultimate Pack’ were over double the amount that was forecasted. The ROI was an astonishing £257 for every £1 spent on re-engineering the choice architecture. Sources: News UK 2012 Academic References: 1 Azar, O.H. (2011). Relative thinking in consumer choice between differentiated goods and services and its implications for business strategy. Judgment and Decision Making, 6 (2), 176-185. 2 Tversky, A., & Kahneman, D. (1981). The Framing of Decisions and the Psychology of Choice. Science, 211 (4481), 453-458. Nudging people to BUY an ‘Ultimate’ subscription to The Times newspaper
  4. 4. BEHAVIOURAL CHALLENGE For The Times and the Sunday Times, their call centre is their shop front; the one place they can communicate with customers person-to-person. However, phone calls were cut short and opportunities missed because call centres workers did not speak to people on the right psychological level; their inner Homer. THE SOLUTION The Times’ call centre agents underwent an intensive two day immersion course with Choice Architects; after the interactive training they were equipped with principles of behavioural science to apply selectively to each and every call. Four key principles were emphasised: Social norms1 – it is reassuring to know that others are buying the same pack or having the same problems. Loss aversion2 – people are more motivated by what they could “miss out” on than what they could gain. Positivity – framing the more boring parts of the call, e.g. data and terms & conditions, in the best possible light. Simplicity – using language and explaining the packs in ways the customer could understand. THE RESULTS Analysis revealed that a call using one or more nudges was three times more likely to be successful than a call without. A test to determine the statistical significance of the result gave a 0.0002 p score. This means that the chance of these results occurring by chance was 1 in 5000. Sources: News UK 2014 Academic References: 1 Nolan, J.M., Schultz, P.W., Cialdini, R.B., Goldstein, N.J. & Griskevicius, V. (2008). Normative Social Influence is Underdetected. Personality and Social Psychology Bulletin, 34, 913-923. 2 Tversky, A. & Kahneman, D. (1991). Loss Aversion in Riskless Choice: A Reference-Dependent Model. The Quarterly Journal of Economics, 106 (4), 1039-1061. Making phone calls to The Times three times more successful with behavioural training Customer Service and Experience
  5. 5. BEHAVIOURAL CHALLENGE Public Health England were in the process of developing a mobile app for their ‘Couch to 5K’ running plan. The challenge for #ogilvychange was to encourage people to try it out and continue to use it. Behavioural Programmes THE SOLUTION A shortlist of 26 nudges were created to bake behavioural principles into the app’s choice architecture and page design. For example, priming1 occurs when sub-conscious cues strongly influence behaviour without our awareness. Using this insight we recommended placing imagery across the app to nudge users to replicate the pictured activity. Incentives were used to promote continued use by establishing a gold star reward mechanism for completion of each stage. To increase effectiveness of this the goal gradient effect2 was applied, which states the closer we are to achieving a goal, the more motivated we are to continue. Users were immediately rewarded with a gold star for downloading the app, thus making them feel closer to their end goal and increasing likelihood of completion. THE RESULTS To date the app has inspired users to run over 40 million metres. Sources: Public Health England 2013 Academic References: 1 Bargh, J.A., Chen, M., & Burrows, L. (1996). Automaticity of Social Behavior: Direct Effects of Trait Construct and Stereotype Activation on Action. Journal of Personality and Social Psychology, 71 (2), 230-244. 2 Nunes, J.C., & Drèze, X. (2006). The Endowed Progress Effect: How Artificial Advancement Increases Effort. Journal of Consumer Research, 32 (4), 504-512. Nudging people off the couch to START an exercise routine
  6. 6. BEHAVIOURAL CHALLENGE BT Business wanted to increase sales of their Complete broadband and phone package without resorting to spending money on expensive advertising. #ogilvychange were briefed to review the BT Complete sign-up journey and make behavioural adjustments to the email sent to potential new business customers. Customer Service & Experience THE SOLUTION After conducting a behavioural e-merchandising analysis of the existing email content, BT rolled out a split test of two small behaviourally informed tweaks to the email copy and layout. The first copy change applied the principle of social norms1 which states that our subconscious decision- making is strongly influenced by our perception of others’ behaviour. We therefore added text to highlight that thousands of businesses were already using BT Complete. The second applied research which shows that a large amount of text can be cognitively effortful to decipher so people choose not to read it. We therefore set about making the existing email text easier to read by chunking2 it up into clearly titled sections. THE RESULTS Altogether 47,000 BT Business customers received the behaviourally adapted emails. Interestingly, results from the norming test showed minimal uplift whereas results the chunking test delivered 47% more responses. Sources: BT 2012 Academic References: 1 Schultz, P.W., Nolan, J.M., Cialdini, R.B., Goldstein, N.J., & Griskevicius, V. (2007). The Constructive, Destructive, and Reconstructive Power of Social Norms. Psychological Science, 18 (5), 429-434. 2 Miller, G.A. (1956). The Magical Number Seven, Plus or Minus Two: Some Limits on Our Capacity for Processing Information. Psychological Review, 63 (2), 81-97. Nudging 47% more businesses to SIGN-UP to the Complete package
  7. 7. BEHAVIOURAL CHALLENGE The Good & Proper Tea Co. tasked #ogilvychange with increasing sales of tea and crumpets from their van in Kings Cross. Behavioural Merchandising THE SOLUTION Several nudges were implemented, including ‘Tea of the day’ recommendations by Emilie, the resident expert on tea and therefore the best messenger.1 Signs and recent press to demonstrate the company’s beginnings with Kickstarter, which acts as social proof2 as there were hundreds of backers. Reducing the number of different types of tea available on a given day to reduce choice overload3 , making it easier to choose. THE RESULTS Despite a difficult sales period as the weather got colder, day-to-day sales were massively influenced by the nudges. The sales of Ceylon tea doubled with the sign: “53% of customers yesterday chose Ceylon”. Sources: Good & Proper Tea 2013 Academic References: 1 Castledine, G. (1996). Nursing’s image: It is how you use your stethoscope that counts. British Journal of Nursing, 5 (14), 882- 822. 2 Herrmann, A. (2011). The impact of mimicry on sales. Journal of Economic Psychology, 32 (3), 502-514. 3 Iyengar, S.S., & Lepper, M.R. (2000). When choice is demotivating: can one desire too much of a good thing? Journal of Personality and Social Psychology, 79 (6), 995-1006. Nudging people to BUY more Good & Proper Tea
  8. 8. BEHAVIOURAL CHALLENGE Following the London riots in 2011, the Royal Borough of Greenwich was still affected by continued crime and antisocial behaviour. Greenwich Council needed to find a way to stop the problem minority destroying their own community. Behavioural Movements THE SOLUTION A simple yet powerful intervention was created - the faces of local babies were spray painted on to the shop shutters of one street. This uses the principle of affect1 , as babies’ faces produce an innate caring response, therefore reducing antisocial behaviour. As they were local babies, this also creates a greater sense of community, ownership and therefore social responsibility2 . THE RESULTS A year later, police have reported a correlation between the painting of the shutters and an 18% reduction in antisocial behaviour in the area. The project is now being trialled around the world to understand the causal effects of babies’ faces. Sources: The Royal Borough of Greenwich 2012 Academic References: 1 Glocker, M.L., Langleben, D.D., Ruparel, K., Loughead, J.W., Gur, R.C., & Sachser, N. (2009). Baby Schema in Infant Faces Induces Cuteness Perception and Motivation for Caretaking in Adults. Ethology, 115 (3), 257-263. 2 Newman, O. (1972). Defensible Space. New York: Macmillan. STOPPING the rise of anti-social behaviour using the Power of Cute
  9. 9. The #ogilvychange Team Rory Sutherland Marina Clement Dan Bennett Juliet Hodges Jez Groom Pete Dyson Rebecca Faulkner Cíosa Garrahan