How can behavioural economics be applied to: Customer experience journey planning Call script, guide and real time prompt design Compliance adherence Voice self-service & IVR architecture Advisor interaction skills Quality management Advanced speech & text analytics Self-service strategy.

1. BE Linguistic Lab Application of Behavioural Economic concepts to customer contact Crawford Hollingworth, Jo Davies and Marcus Hickman

2. BE Linguistic Lab – Adding Value to Customer Touch Points Customer touch point needs Customer experience journey planning Call script, guide and real time prompt design Compliance adherence Voice self-service & IVR architecture Advisor interaction skills Quality management Advanced speech & text analytics Self-service strategy BE Linguistic Lab BE Deliverables Applied insights into how you can use BE to increase the desired customer behavioural outcome Specific linguistic changes you can make The provision of a set of behavioural hypotheses of the BE barriers potentially in operation and solutions for tackling these barriers/biases

3. The Power of Behavioural Economics BE provides a science-led understanding of why people behave and think in certain ways, why they do one thing vs. another . Its foundations are a deeper understanding of how our brains are structured or, as we call it, wired in specific ways. This understanding gives us a framework or blueprint from which to think about behaviour. Over the years the behavioural sciences have revealed a whole mass of human cognitive idiosyncrasies [biases] which reveal people to be much more malleable than the old model of rational economic man would suggest. It has been said that this is a great time to be a brain as new insights are uncovered every week! Understanding how someone’s brain is wired, and knowing how these biases can or could be leveraged, allows us not only to see why people may behave one way vs. another but also empowers us to be able to use this understanding to change behaviour and to steer or nudge people in different ways . It also shows us how small changes can make significant differences in behaviour.

4. The Power of Behavioural Economics and Customer Contact Customer contact leaders are under more pressure than ever before to deliver reduced customer effort at lower cost, increase customer satisfaction and NPS, while driving revenue and retention . Balancing these complex objectives requires deployment of the latest techniques. BE provides powerful new tools that can increase efficiency in achieving your customer contact behavioural aims – from driving self service, to more effective complaint management, to reducing call time, to improving IVR architecture, to cross selling, to real time prompts for agents, through to providing directional frameworks which analyse the output from speech analytics.

5. Applying BE to your Challenge – The BE Linguistic Lab Give us a contact centre challenge you’re facing now, share with us some typical dialogue [scripted or unscripted] or give us a set of issues impacting on your desired customer behaviour and we will analyse and provide some directive insights into how you can use BE either to increase the desired behavioural outcome and/or provide a set of behavioural hypotheses of the BE barriers potentially in operation and a set of hypotheses for tackling these barriers/biases. The BE linguistic lab. The Behavioural Architects lab brings together all our global knowledge and cutting edge research into customer behaviour and behavioural change. We have over the last few years built extensive global databases around key BE constructs and monitor key thought leaders on a daily basis. We also have a major BE archive of the ways in which this thinking has been leveraged around the world by companies and governments. Finally, we have consultants with years of commercial experience to apply this IP to action-oriented solutions and ideas. Our offer is also designed to be simple and cost effective. The engagement can be from a virtual transactional one to a deeper level of consultancy. The Behavioural Architects (TBA) have teamed up with Davies Hickman to combine our unique skill sets. TBA pioneering the field of applied behavioural economics and Davies Hickman with their bank of the latest customer communication trends and international expertise in contact centre management.

6. Cognitive Biases Customer behavioural journey – behavioural touch points Social Biases such as in group bias, ego centric, status quo, herd instinct. Memory biases such as rosy retrospection, hindsight, consistency bias, peak end rule. Decision making biases such as discounting the future, anchoring, negativity bias, framing, illusion of control, endowment effect. Probability / belief biases such as availability, authority.

7. Behavioural Nudges Customer behavioural journey – behavioural touch points Change the frame change the impact – form rubbish to landfill! Change the default – from reducing salt to organ donation Herd instinct – the power of social norms – Obama gets elected and IHWSH, to increasing questionnaire response Loss aversion – only one room left at that price! Losses hurt more than gains by a factor of 2 Commitment bias – behaviour first, attitude second from keep Britain tidy to political elections to filling in tax forms Reciprocity bias – starting a positive wave and stopping a – ve one The peak end rule – the power of a big finish. M&S and it ’ s lovely plums Choice architecture and anchors – from navigating complexity to manipulating choice - every choice is relative – bread making, wine lists and potatoes Chunking – the power of mental bites - from five a day to confused.com!

8. BE thought starters …. Think individually but also collectively Using anchoring and adjustment to disarm issue / conflict resolution Using layered commitment bias strategies to encourage new behaviour / or habit e.g saving or on line vs. paper statements Using social norms and scarcity bias / loss aversion to aid up-selling Using social norms to promote online chat rooms Using mental chunking to make a consumer journey seem manageable and give clear feedback Choice architecture and the power of three or five! Also use lower and upper anchors to direct customer towards desired behaviour Gamification in customer contact because it is fun to play and activates similar area of the brain as reward Play to loss aversion - talk what they might lose vs gain. Power of time sensitive offers Use endowment bias – power of get something in their hands ..then they over value it

10. Behavioural Experts Network Global experts network including behavioural economists, social anthropologists, social psychologists, & journalists ‘ Expert Eyes’ throughout a project – from hypothesis development to strategic recommendation

11. Consumer Behavioural Network Global network of BE Spotters Diverse mix of people who have a natural ability to see and decode the context around them.

12. Global Behavioural Database Database of BE examples across categories & countries Examples of how organisations and brands are leveraging BE thinking Stimulus for innovation, brand positioning & communications

13. www.thebearchitects.com www.davieshickman.com For more information please contact: Crawford Hollingworth +44 (0)7802 758011 Marcus Hickman +44 (0)7946 631119