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MRS Speaker Evening - Better Customer Communications with Behavioural Economics
- 1. Better Customer Communications with Behavioural Economics Emma Williams – Barclays Jamie Halliday – The Behavioural Architects
- 3. Everyone needs banking, no-one needs a bank Designing empathetic experiences Creating emotionally valuable products Enabling mutually beneficial relationships
- 4. Customer perspective ≠ your perspective Crucial to step back and think about the subject via the customer’s eyes Customer • Are immersed in the background & context of the situation • Can take a ‘legalistic’ approach – if it’s written down, we’ve told them • Use ‘jargon’ and complex terminology day-to-day • Probably haven’t even thought about it before today • Don’t always pick up on every point, especially in ‘wordy’ emails • Need simple explanations of terminology Internal team It’s easy to lose sight of how the customer thinks, feels & behaves
- 5. Here comes the science…
- 6. A model of thinking that acknowledges the inherent biases and distortions that characterise human judgment and decision-making The latest learning from the behavioural sciences and psychology applied to consumer behaviour Behavioural Economics is…
- 7. #1. Much of what influences behaviour is subconscious / below the surface What Behavioural Science tells us about human behaviour
- 8. “The estimate from neuroscientists is that our five senses are taking in 11 million pieces of information every second. And how many of those are we processing consciously? A mere 40!” Source: Weinschenk, 2009
- 9. When asked: (1) “How happy are you with your life in general?” and (2) “How many dates did you have last month?” There was no significant correlation between the two answers... But there was a correlation when the order was reversed with another sample! Changing the order of two questions can radically impact the response Priming
- 10. Priming – test yourself Priming
- 11. Priming – test yourself Priming
- 12. Are we using the right words, images (+ anything else) to put customers in the right mood for the desired behaviour? Applying Priming
- 13. #1. Much of what influences behaviour is subconscious / below the surface #2. We have different modes of thinking – System One & System Two What Behavioural Science tells us about human behaviour
- 14. SYSTEM 1 Automatic, quick, intuitive, emotional... SYSTEM 2 Conscious, effortful, logical, deliberate... Limited processing capacity, just 40 ‘bits’ per second! High processing capacity – ~11 million ‘bits’ per second Two systems of the mind
- 15. A question of production… If it takes 5 machines 5 minutes to make 5 widgets… How long does it take 100 machines to make 100 widgets?
- 16. Another simple question… Jamie drives the 400 miles from London to Edinburgh at 60 mph The next day he drives back at 40 mph What is his average speed?
- 17. #1. Much of what influences behaviour is subconscious / below the surface #2. We have different modes of thinking – System One & System Two #3. We are hugely influenced by the context around us and use anchors, shortcuts and rules of thumb to navigate this context and make decisions What Behavioural Science tells us about human behaviour
- 19. Anchors & reference points for communications - influence how we perceive & value content Media coverage Competitors Other comparable service providers
- 20. Small changes in how information is presented can dramatically change the resulting decision or behaviour Framing Framing
- 21. Different ways to frame the same info Framing
- 22. How can you reframe messages to feel more positive to a customer? Applying Framing
- 23. #1. Much of what influences behaviour is subconscious / below the surface #2. We have different modes of thinking – System One & System Two #3. We are hugely influenced by the context around us and use anchors, shortcuts and rules of thumb to navigate this context and make decisions #4. We are subject to a host of biases that significantly impact our behaviour What Behavioural Science tells us about human behaviour
- 24. We have limited resources of conscious awareness “Inattentional blindness” Can you spot the clues?
- 25. Priming Framing Power of Now Social Norms Authority Bias Loss Aversion Endowment bias Egocentric Bias Chunking Peak End Rule Reciprocity Bias Anchoring A range of psychological biases influence response to comms, e.g.:
- 26. That’s all very interesting, but so what?
- 27. The Power of BE… BE gives us a framework and concepts to understand customer behaviour and how to nudge and steer it
- 28. Our Challenge: Improving Premier Comms With its customer-centric culture, Barclays is always looking at new and innovative ways to better engage with customers and improve their experiences of interacting with Barclays. Led by the Premier Insight and Engagement teams, in collaboration with The Behavioural Architects, Barclays has been pioneering a programme that cements Behavioural Economics at the centre of communication development, affecting real cultural and behavioural change. Within Barclays, Premier customers are a key segment. These customers are affluent, with sophisticated and complex financial needs, and high expectations to match. As a cohort they have many demands for their attention and energy. Prior to commissioning this project, Barclays had identified an opportunity to optimise the effectiveness of their communications (letters & emails) with Premier customers & ensure that principles of best practice were applied consistently across all communications. Barclays commissioned TBA to review their approach to customer communications at a strategic level with the specific aim of applying behavioural science principles to inform & optimise the development of communications for Barclays’ Premier customers. More effective communications will ultimately drive value for the business by ensuring that customers perform the desired behavioural outcomes. The subject matter of the communications they receive is frequently technical and subject to legal and compliance requirements. Communications also vary in complexity, depending on the specific objective at hand, and a range of customer behavioural outcomes may be desired, including: Ensuring customers understand and absorb key messages Ensuring customers act on information as required Driving customer engagement
- 29. Our challenge: Better conversations with our customers. • Ensuring customers understand and absorb the information we give them. • Making it easy for customers to take appropriate action.
- 31. 3. TOOLS FOR BEHAVIOURAL INSIGHT Seek insight into the drivers of real behaviour (not just what people tell us) 2. THE ‘ECOSYSTEM’ OF BEHAVIOURAL INFLUENCES Apply models & concepts from a behavioural science 1. THE BEHAVIOURAL CHALLENGE Identify the specific behaviour(s) that we want to happen. Anchors the whole approach around a behaviour Provides a behavioural science foundation for all activities Uncovers what people do & feel, not what they think they do The TBA philosophy: place behaviour at the heart of the project
- 32. We started by developing hypotheses about what drives effective communications 30 example communications Audit with a BE-lens Hypothesise areas of improvement Build initial ‘BE’ framework for analysing communications
- 33. Making the research context as real as possible - at home, at a time that is convenient to them Reveals customer reactions that we cannot predict e.g. Areas of confusion? What are customers’ anchors? What does a customer value about a service? Rich & powerful video feedback More considered analysis (System 2) after had time to digest Instant response – evidence of BE biases in action
- 34. Cognitive Ease Cognitive Strain System 2 mobilized – high effort, problematic More likely to: - Be vigilant - Be suspicious - Make errors System 1 active – intuitive, low effort, automatic More likely to: - Be in a good mood - Like what you see - Believe what you hear Positively affects how someone perceives, understands and experiences something Less pleasant state – can lead to tiredness, stress and snap judgments✔ Cognitive strain occurs when more rigorous thinking is required and System 2 is engaged. It can lead to negative emotions. Key concept: Cognitive Ease vs. Cognitive Strain
- 35. BE in Action
- 36. BE tell us how to play to biases… How to create cognitive ease… “I think the email is excellent, it is brief with straight forward bullet points… it was clear where to go from there.” “The letter was clear enough, I think putting the "headlines" on page one and then elaborating about them on page two worked well.”Chunking Salience “Sometimes I only skim read letters like that from the bank to see if they relate to me – so the title needs to grab my attention.”
- 37. …which translates into detailed, practical guidelines
- 38. …which is then developed into a formal structure & socialised COMMS TOOLKIT • Communications development tool • Checklist of BE principles • A BE Handbook - easy reference guide • Before and after examples BESPOKE TRAINING COURSE • Worked example of applying the communications toolkit • Internal & external comms professionals BE
- 39. Success to date A FRAMEWORK to audit communications and develop hypotheses about behavioural outcomes. Communications TOOLKIT with key Behavioural Economics concepts brought to life with feedback from actual customers for use in communication development A bespoke TRAINING COURSE for Barclays staff and support agencies to embed the concepts A PREMIER FORUM for approving all Premier customer communications through a Behavioural Economics lens ROLL-OUT of process to other businesses within Barclays Improvements in key CUSTOMER engagement and satisfaction measures
- 40. I want to learn more! Coursera https://www.behavioraleconomics.com http://www.thebearchitects.com/behavioural-economics/what-is-be/