Stripping it back to behaviour. CRM for charity communicators conference, 2 December 2014

Copyright © 2014 Prime Decision
Breakout A:
Stripping it back to behaviour
Natalie Horne, Strategy Director
natalie.horne@prime-decision.com
prime-decision.com | @primedecision

What does Prime Decision do?
We help organisations find new and
unexpected solutions to old challenges.
How? By focusing on behaviour.

Client partners:

Academic collaborators:

The space we play in
Research and data analysis
Insight and assessments
Strategy and planning
Optimisation and experimentation
Experience design
Innovation & co-creation
Behavioural economics workshops
Script
SocialStory
Sync
Sense Scenario
Structure

Supporters
StaffVolunteers
Public Service-users
Challenging boundaries
Seeing existing behaviours as a resource

224 million Twitter
mentions
1.2 billion global
impressions
Awareness

5 years, 46 Fellows, minimum gift of £100,000 each
50% are now participating actively as volunteers
Engagement

Services

homo economicus
Optimal,
Normative
Realistic,
Descriptive

Get ready!

Which is the best option?
a. 40% chance of winning £22.50
b. 5% chance of winning £180.00
c. 65% chance of winning £15.40
d. 25% chance of winning £36.00
e. 80% chance of winning £11.25

The best option:
a. 40% chance of winning £22.50 gain £9
b. 5% chance of winning £180.00 gain £9
c. 65% chance of winning £15.40 gain £10
d. 25% chance of winning £36.00 gain £9
e. 80% chance of winning £11.25 gain £9

More wins
or losses?

X 4
X 6
More wins
or losses?

What did behavioural economists discover?
We are bad at judging probabilities
We are good at judging frequencies
+ many other patterns

Key insight:
We’re much less
rational than we
might imagine!

5 classics: Defaults
80% 20%

5 classics: Defaults
(Johnson & Goldstein, 2003)

5 classics: Endowment
(Knetsch, 1992)

Web subscription £59
Print plus web £125
Web subscription £59
Print only £125
Print plus web £125
52%
increase
68%
32%
16%
0%
84%
5 classics: Framing

5 classics: Anchoring
90% survival rate
vs.
10% mortality rate
£99 paid off
£175 paid off
On a monthly bill of £435…

(Hershfield et al., 2011)
5 classics: Hyperbolic discounting

Counter intuitive or common sense?
Primacy effect
Priming effects
Hyperbolic discounting
Status quo bias
Conjunction bias
Conformity effects
Affect heuristic
Omission effects
Availability heuristic
Risk aversion
Loss aversion
Framing effects
Anchoring
Confirmation bias
Endowment effect
Social norms
Peak end rule
Asymmetric dominance
Leniency bias
Mental accounting
Salience
Social proof
Misattribution
Reciprocity

Prospect Theory (1974)
Amos Tversky &
Daniel Kahneman

System 1
Automatic
Fast
Intuitive
Emotional
System 2
Effortful
Deliberate
Logical
Rational

A creative, experimental
approach to understanding
and changing behaviour
Behavioural science =
Strategic Tactical

3 deceptively simple questions:
1. What are people doing?
2. What could they do differently?
3. What could this change be worth?

+9%
# donations
+5%
Total £ raised
Buy antibiotics for an African child to
stop them dying of TB, with just £1
Buy antibiotics for an African child to
stop them dying of TB
Target behaviour: Optimise donations

1. Promoting digital self-service
Automotive example

The story in a nutshell
Reliance on voice is a customer habit.
But it’s also an internal habit. Right now, people are
being driven towards voice by default, not by design.

Granular analysis:
X% of calls are asking for
standard information
X% of calls are asking for or
amending personal
information
X% are completing an
action that could have
been done digitally X% require support on a
more complex task

Why humans not robots?
Big picture:

Where to focus?
Remove
Migrate
Improve
Neutralise
the need
Change the
channel
Enhance the
experience

Redesigning touch-points:
Web chat optimisation
Agent co-creation
Social media review
Website and contact page
Collateral CTAs
Welcome pack amendment
…etc.

2. Preventing opportunistic fraud
Insurance sector

Prosecute
criminals
Raise
premiums
Design experiences
which promote honesty
and accuracy

Behaving honestly = a balancing act
Maintaining a
positive view
of myself
Cheating for my
own benefit
According to psychologists and behavioural economists
(Ariely, 2011)

Behaving honestly = a balancing act
According to psychologists and behavioural economists
(Ariely, 2011)

Depletion
Moral
reminders
Format

Depletion, time-pressure and self-control
(Mead et al, 2009)
(Shalvi et al, 2012)

Intervention: Commitment device
C.
Control
No opportunity
to cheat
Opportunity
Cheating is
possible
B.A.
Pledge
Agree to act
honestly/morally
I recognise that I have moral obligation to complete this task honestly.

Experiment: Results
0%
1%
2%
3%
4%
5%
6%
7%
8%
Control Opportunity Honesty
Pledge
75%
decrease in
high claims
95%
Decrease in
maximum
claims
I recognise that I have moral obligation to complete this task honestly.

What would a customer journey look like which was
designed to promote honesty and accuracy?
Claims processes
Marketing touch-points Customer communications
Investigation and EUO
Preventing opportunistic fraud

3. Boosting brand engagement
Customer-facing approach

Red Bull: Giving wings to the science of focus

Digital content, fuelled by behavioural insight

Analysing behaviours: The Seven Lenses
Script
SocialStory
Sync
Sense Scenario
Structure(One of Prime Decision’s
proprietary analytical frameworks –
contact for cheat sheet)

The Seven Lenses – Breakout D
Script
SocialStory
Self
Sense Scenario
Structure(A proprietary
analytical framework –
contact for cheat sheet)

Conclusions and questions
Use a behavioural perspective to
challenge organisational siloes
Remember the ‘silent factors’
Be resourceful
Connect insight with action
Experiment!

Hopefully see you for Breakout D!
The Seven Lenses: mini masterclass
Email: natalie.horne@prime-decision.com
Twitter: @natalie_horne
LinkedIn: /nataliehorne

Stripping it back to behaviour. CRM for charity communicators conference, 2 December 2014

Stripping it back to behaviour. CRM for charity communicators conference, 2 December 2014

Recommended

Recommended

More Related Content

Viewers also liked

Viewers also liked (17)

Similar to Stripping it back to behaviour. CRM for charity communicators conference, 2 December 2014

Similar to Stripping it back to behaviour. CRM for charity communicators conference, 2 December 2014 (20)

More from CharityComms

More from CharityComms (20)

Recently uploaded

Recently uploaded (20)

Stripping it back to behaviour. CRM for charity communicators conference, 2 December 2014