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Mike Eckersley Anna O’Halloran Steven Johnson

Mike Eckersley Anna O’Halloran Steven Johnsonstorage.capita-software.co.uk/cmsstorage/capita/media/... · ARGOS - Orders placed ... You are part of a Technology Generation Many

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Mike Eckersley

Anna O’Halloran

Steven Johnson

What is Channel Shifting

Google says• Switching to Sky TV from Freeview• Relocating to France• Encouraging customer choice• Changing partners who are selling your goods• Switching perfumes• New gearing technology in the Nissan 350z• A method of ensuring continued wireless connectivity

What is Channel Shifting

Outbound

An opportunity to cost effectively improve your customer relationships through enabling your workforce to

proactively promote your products and services.

Inbound

A means of providing greater choice for customers wishing to interact with your

organisation, products and services which exploits the latest technologies and

reduces costs whilst improving customer services and efficiency

The Governments View

Government ICT Strategy (March 2011) states

• “ICT is critical for the effective operation of government and the delivery of the services it provides to citizens and businesses. It offers key benefits by enabling:

• access to online transactional services, which makes life simpler and more convenient for citizens and businesses; and

• channels to collaborate and share information with citizens and business, which in turn enable the innovation of new online tools and services.”

It also says “ICT can release savings by increasing public sector productivity and efficiency”

However, it misses the possibilities offered to your staff via channel shifting as workers in the latest ICT age

The Governments View

“Many citizens’ expectations have shifted from traditional face-to-face, telephone or paper channels to more responsive 24/7 online personalised services and delivery through mobile devices”

“Government will work to make citizen-focused transactional services ‘digital by default’ where appropriate using Directgovas the single domain for citizens to access public services and government information”

Common Misconceptions

• Channel Shifting is NEW !!!

• Channel Shifting is primarily for the retail industry

• Channel Shifting cannot be used for services

• Technology is not yet sufficiently mature

Where are we in 2015?

All channels must be considered

2010 saw first drop in e-mail address registration since records began and this has continued• The reason – the new generation are using Facebook and Twitter

Facebook will enable you to engage differently with your customers AND staff

Twitter will allow you to message clients (who are ‘following you’) very quickly• It’s FREE• It is not mobile phone number dependant• It can reach a vast community very quickly

Where are we now in 2016?

69% of UK adults use on-line banking

On-line (or e-) Commerce makes up nearly 50% of UK sales

Over 60% of the UK population used social networking sites last year

Over 65% of UK adults own a Smartphone

Over 86% of UK residents have access to the Internet

15% of UK households no longer have a landline number

ARGOS - Orders placed online via mobiles and tablets more than doubled in 2012, and 50% of Argos' business is now done online

The Pace of Change

1971– first e-mail

1981 – IBM Personal Computer launched

1992 – First SMS message sent

1995– Internet commercialised

2004– Facebook launched

2005– YouTube launched

2006– Twitter launched

The Pace of Change – 50 Million Users

Radio – 38 years

Television – 13 years

Internet – 4 years

Facebook – 5 months

Apple iPad – Sold 300,000 on their launch day

Apps – 1.5 BILLION apps downloaded in …………… 12 months

You are part of a Technology Generation

Many of you here are part of a unique generation. Be Proud!

You have witnessed the birth and death of domestic technologies within the same generation – this has not happened before.

All replaced by modern technology, PCs and the Internet.

The pace of change continues to accelerate

Things that won’t exist in the next 10 years…

Traffic Jams!

It’s currently looking like the first driverless

cars will hit the market in 2020. The reality

of completely driverless cities is not too far

off

Credit Cards!

Credit isn’t going anywhere, but

those plastic cards are. Paying f

or things using phones and wea

rables is increasing, and, event

ually, it’s predicted we’ll switch

over entirely to digital payment

methods.

Things that won’t exist in the next 10 years…

Plasters!

Low-level laser pens that can seal incisions

should be available within the next few

years, meaning we should be able to heal

wounds as they happen, with less scarring

than you’d get with stitches.

Delivery People!

A number of companies are

already experimenting with using

drones to deliver packages,

among other things. Given the

increasing need for speedy,

cheap delivery methods, it’s likely

delivery drones will eventually

become commonplace.

Things that won’t exist in the next 10 years…

Remote Controls!

Thanks to the Internet of Things and

wearables, it’s predicted that an extra 17.6

billion devices will be connected to the

internet by 2020. By then, building hardware

whose only function is to act as a remote

control will no longer make any sense.

Offline!

The Internet of Things is the idea that everyday

objects, like clothes, cars, and household

equipment, will all become “smart” and connected

to the internet. Once this is reality, the concept of

“offline” and “logging off” will no longer make sense

, as pretty much everything and everyone we

interact with will be connected – all the time.

Encourage Customers to go online

North Lincs Homes provisioned 4G wireless access for tenants

City West (Westminster) provisioned fibre to all properties

Provide Incentives – cash, more appointments, etc.

Assisted support in the office and at home

Work with other agencies

Approach Telcos and Utility companies

The Landscape

2009/2010

2010/2011

2011/2012

2015

Face 2 Face £8.70 £7.96 £7.91 £8.62

Contact Centre £1.65 £1.59 £1.60 £2.83

Website £0.05 £0.04 £0.03 £0.15

Making the Shift – ROI analysis

Current Costs

Transaction Volume Web % Face % Phone % Total % Web £ Face £ Phone £

Planning App Search

62223 98 1 1 100 £3,062.25 £7,116.60 £264.00

Credit Card 33254 77 21 2 100 £1,279.50 £60,669.40 £1,224.30

Press Releases 20201 98 1 1 100 £908.35 £435.00 £303.60

CRM Contact Database

15462 94 1 5 100 £726.35 £1,331.10 £1,290.00

Understand your transaction volumes and costs !

• Identify high cost areas which are also lower channel volume

• This is a good starting point

The Landscape

0%

25%

50%

75%

100%

Voice Calls Web Site Letter SocialMedia

Mobile

2011 2015

Predicted Channel Uptake 2011/2015

Making the Shift

Simply providing the new services will not increase uptake

Customers and staff alike need to be encouraged

Customers in particular will need support

You need a strategy, business cases inc. ROI and new governance arrangements

Channel shifting is strategic not tactical

You need to market your new service channels

Understand your demographics and customers

Recognise that demand will grow

Review your transactions and define the costs

Review your complaints/compliments to consider key services

REMEMBER – It’s about Choice, Choice and Choice

Making the Shift

Simply providing the new services will not increase uptake

Customers and staff alike need to be encouraged

Customers in particular will need support

You need a strategy, business cases inc. ROI and new governance arrangements

Channel shifting is strategic not tactical

You need to market your new service channels

Understand your demographics and customers

Recognise that demand will grow

Review your transactions and define the costs

Review your complaints/compliments to consider key services

Making the Shift

Current position ‘as is’

• Types, volume and cost of transactions

• Customer and staff demographics – age, ethnicity, etc.

• Current alignment with your business plan and HR policies

Required customer and service

improvements ‘to be’

• Demand both current and predictive

• Define the improvements

• Produce high level ROI statements

• Identify any influences on the corporate business plan

Plan how do we get there

• Segment the plan – 6 months, 12 months, 3 years, 5 years

• Define the governance arrangements and identify sponsors

• Continually challenge the plan

What makes up the strategy

22

Making the Shift

WHO

?

HOW

?WHY?

Insight, Segmentation and Trials – case studies

24

25

26

27

28

Being gas safe:

Developing a

behaviour change

model

29

QUANTIFICATION

WE CREATED FRESH SETS OF

ATTITUDINAL STATEMENTS

ADDED THE STATEMENTS TO

EXISTING CONSUMER SURVEY

FACTOR ANALYSIS

& STATISTICAL CLUSTERING

TO CREATE STATISTICALLY

VALID GROUPS

30

AN ACTIONABLE SEGMENTATION

6 FINAL SEGMENTS

WERE DERIVED

RESULTS

31

June – September 2012, just 6% of Dismissive Sceptic

households in the North West of England claimed they

had had their gas appliances checked

December – March 2013, this proportion increased a

staggering threefold to 18%

Equates to 53,450 homes, representing a 300% increase

Applying the 1:5 rate of unsafe appliances, that

represents over 10k homes potentially at risk of

immediate harm

TV licensing case study

• Our approach delivered £1Bn increase in

revenue collected per annum, 20%

reduction in evasion, 40% reduction in

cost as % of income and 25% reduction

in headcount.

• 61% of all customer transactions are now

self-served through web and IVR

channels from 24% in 06/07

• Web channel focussed has enabled 53%

of contact to be redirected, of which 91%

of workload is automated.

Making the Shift

Inbound calls 60,000

Face to Face transactions 10,000 (head office only)

Moved 30% of calls to the Web

Moved 20% of F2F transactions to the Web

Overall Savings £67,000 p.a. - £201,000 over 3 years

Housing Organisation Example

Saved £172,00 by switching off paper application forms

Making the Shift

Housing Organisation Example

Introduced channel shift focussed upon web transactions

Reduced office space by 30%

Part mobilised an additional 40% of office staff

Introduced home working for 25% of staff

Reduced staff travelling time (green agenda)

Reduced outstanding debt via payments online and Standing Orders

Making the Shift

Housing Organisation Example

Introduced 24 x 7 self-service facilities (not just web)

Faster rent payments

Customer have access to accurate on-line information

Introduced a range of on-line communities and feedback options

On-line rent payments increasing year on year

Predicted savings £200,000 p.a.

Making the Shift

Housing Organisation Example

Engaged with younger customers via Facebook

Promoted a culture of local people influencing services

Contracted two sixth formers to develop the site

Uptake was rapid across the peer group

High traffic topics - homelessness, crime and debate

Currently over 500 ‘Likes’ in 3 months

Making the Shift - a range of other achievements

£200m savings – The NHS will save through a 1% reduction in face to face consultations

£300k savings – achieved by a Council shifting 40% of Council Tax enquiries to the web

£25k savings – achieved by a Council shifting an additional 32% credit card payments

Council - moved all school admissions to the web (saved £101k p.a.)

Council - moved the blue badge scheme to the web (saved £97k p.a.)

JobCentre Plus – Mobile app downloaded over 100,000 times in first 6 months

Channel Shift – Commercially Speaking

Commercially Speaking

The Banks led the way

Commercially Speaking

Retail has followed:

Commercially Speaking

Commercial operators who didn’t follow have faced real problems:

Misconceptions

BEHAVIOURAL INSIGHTS:A SOCIAL HOUSING GAME-CHANGER…?

STEVEN JOHNSON, COLLABORATIVE CHANGE //

[email protected]

What do we mean by

behavioural insights?

WHAT DO WE MEAN BY BEHAVIOURAL INSIGHTS?

BEHAVIOURAL SCIENCE +EXPERIMENTAL VALIDITY

=

EVIDENCE-BASED POLICIES AND SERVICES

BEHAVIOURAL SCIENCE

BEHAVIOURAL ECONOMICS… COGNITIVE NEUROSCIENCE… NETWORK THEORY… DECISION THEORY… GAMIFICATION… SOCIAL INFLUENCE…

Our understanding of human behaviour has accelerated over the

last two decades

We need to assimilate and deploy this new

research and understanding.

NEW SCIENCE = NEW TOOLS

BEHAVIOURAL INSIGHTS

Students in every other seat were given a mug as

a gift. When asked how much the mug was worth

students with the mug estimated its value at twice

that of those without the mug.

BEHAVIOURAL INSIGHTS

Students in every other seat were given a mug as

a gift. When asked how much the mug was worth

students with the mug estimated its value at twice

that of those without the mug.

ENDOWMENT EFFECT

BEHAVIOURAL INSIGHTS

When citizens were told that most people pay

their tax on time, payment rates significantly

increased.

BEHAVIOURAL INSIGHTS

When citizens were told that most people pay

their tax on time, payment rates significantly

increased.

SOCIAL NORMS

BEHAVIOURAL INSIGHTS

Drivers reported having driven around

10% more miles when they signed their

name before filling in an insurance form,

rather than after.

BEHAVIOURAL INSIGHTS

Drivers reported having driven around

10% more miles when they signed their

name before filling in an insurance form,

rather than after.

COMMITMENT DEVICES

BEHAVIOURAL INSIGHTS

When letters to non-payers of car tax

included a picture of the offending vehicle,

payment rates rose from 40 to 49%.

BEHAVIOURAL INSIGHTS

When letters to non-payers of car tax

included a picture of the offending vehicle,

payment rates rose from 40 to 49%.

SALIENCE

THE USE OF BEHAVIOURAL INSIGHTS

ADOPTED WITH GUSTO BY GOVERNMENTS ACROSS THE WORLD.

THE USE OF BEHAVIOURAL INSIGHTS

MADE ACCESSIBLE BY POPULAR LITERATURE

BEHAVIOURAL INSIGHTS

Let’s get things moving

with the Nudge.

“…any aspect of the choice architecture that alters people’s

behavior in a predictable way without forbidding any options

or significantly changing their economic incentives.

To count as a mere nudge, the intervention must be easy and

cheap to avoid. Nudges are not mandates. Putting fruit at eye

level counts as a nudge. Banning junk food does not.”

BEHAVIOURAL INSIGHTS

Re-labeling rubbish bins interrupts habitual

behaviour by removing the option to throw

something ‘away’.

Mirrors in shopping trolleys

lead to healthier choices, by

making it more difficult for

shoppers to deviate from

their good intentions.

A fly painted on urinals at

Schipol Airport reduces

cleaning bills by improving

the ‘aim’ of male users.

ENVIRONMENTAL NUDGES: EXAMPLES

BEHAVIOURAL INSIGHTS

Which brings us nicely onto…

behavioural economics

BEHAVIOURAL INSIGHTS

The

predictable

irrationality

of human

behaviour.

Classical economics

‘Homo Economicus’

How we behave in theory.

Behavioural economics

‘Homer Economicus’

How we behave in reality

BEHAVIOURAL INSIGHTS

Our ability to make rational decisions is

limited by a vast range of systematic errors.Ambiguity effect // Anchoring or focalism // Anthropomorphism // Attentional bias // Automation bias // Availability heuristic // Availability cascade // Backfire effect // Bandwagon effect

// Base rate fallacy or Base rate neglect // Belief bias // Bias blind spot // Cheerleader effect // Choice-supportive bias // Clustering illusion // Confirmation bias // Congruence bias //

Conjunction fallacy // Regressive bias // Conservatism (Bayesian) // Contrast effect // Curse of knowledge // Decoy effect // Denomination effect // Disposition effect // Distinction bias

// Dunning-Kruger effect // Duration neglect // Empathy gap // Endowment effect // Essentialism // Exaggerated expectation // Experimenter's or expectation bias // Focusing effect //

Forer effect or Barnum effect // Framing effect // Frequency illusion // Functional fixedness // Gambler's fallacy // Hard–easy effect // Hindsight bias // Hot-hand fallacy // Hyperbolic

discounting // Identifiable victim effect // IKEA effect // Illusion of control // Illusion of validity // Illusory correlation // Impact bias // Information bias // Insensitivity to sample size //

Irrational escalation // Less-is-better effect // Loss aversion // Mere exposure effect // Money illusion // Moral credential effect // Negativity effect // Negativity bias // Neglect of

probability // Normalcy bias // Not invented here // Observer-expectancy effect // Omission bias // Optimism bias // Ostrich effect // Outcome bias // Overconfidence effect // Pareidolia

// Parkinson's Law of Triviality // Pessimism bias // Planning fallacy // Post-purchase rationalization // Pro-innovation bias // Pseudocertainty effect // Reactance // Reactive

devaluation // Recency illusion // Restraint bias // Rhyme as reason effect // Risk compensation / Peltzman effect // Selective perception // Semmelweis reflex // Social comparison

bias // Social desirability bias // Status quo bias // Stereotyping // Subadditivity effect // Subjective validation // Survivorship bias // Time-saving bias // Unit bias // Weber–Fechner law

// Well travelled road effect // Zero-risk bias // Zero-sum heuristic // // Social biases[edit] // Most of these biases are labeled as attributional biases. // // Name // Actor–observer bias

// Defensive attribution hypothesis // Egocentric bias // Extrinsic incentives bias // False consensus effect // Forer effect (aka Barnum effect) // Fundamental attribution error // Group

attribution error // Halo effect // Illusion of asymmetric insight // Illusion of external agency // Illusion of transparency // Illusory superiority // Ingroup bias // Just-world hypothesis //

Moral luck // Naïve cynicism // Naïve realism // Outgroup homogeneity bias // Projection bias // Self-serving bias // Shared information bias // System justification // Trait ascription

bias // Ultimate attribution error // Worse-than-average effect // // Memory errors and biases[edit] // Main article: List of memory biases // In psychology and cognitive science,

a memory bias is a cognitive bias that either enhances or impairs the recall of a memory (either the chances that the memory will be recalled at all, or the amount of time it takes for

it to be recalled, or both), or that alters the content of a reported memory. There are many types of memory bias, including: // // Name // Bizarreness effect // Choice-supportive bias

// Change bias // Childhood amnesia // Conservatism or Regressive bias // Consistency bias // Context effect // Cross-race effect // Cryptomnesia // Egocentric bias // Fading affect

bias // False memory // Generation effect (Self-generation effect) // Google effect // Hindsight bias // Humor effect // Illusion of truth effect // Illusory correlation // Lag effect // Leveling

and Sharpening // Levels-of-processing effect // List-length effect // Misinformation effect // Modality effect // Mood-congruent memory bias // Next-in-line effect // Part-list cueing

effect // Peak–end rule // Persistence // Picture superiority effect // Positivity effect // Primacy effect, Recency effect &Serial position effect // Processing difficulty effect //

Reminiscence bump // Rosy retrospection // Self-relevance effect // Source confusion // Spacing effect // Spotlight effect // Stereotypical bias // Suffix effect // Suggestibility //

Telescoping effect // Testing effect // Tip of the tongue phenomenon // Travis Syndrome // Verbatim effect // Von Restorff effect // Zeigarnik effect //

It’s behaviour, Jim, but not as we know it…

BEHAVIOURAL INSIGHTS

THE BEHAVIOURAL INSIGHTS APPROACH

Small changesand big impacts

Hard work

BEHAVIOURAL INSIGHTS…

AND SOCIAL HOUSING

STEVEN JOHNSON, COLLABORATIVE CHANGE //

[email protected]

BEHAVIOURAL INSIGHTS AND RENT ARREARS

DATA ANALYSIS:

COST

MODELLING

QUALITATIVE

INSIGHT

INTERVENTION

DESIGN

RIGOROUS

EVALUATION

EVIDENCE-BASED BEHAVIOUR CHANGE

THE BEHAVIOURAL INSIGHTS APPROACH

DATA

ANALYSIS:

SEGMENTATION

THE BEHAVIOURAL INSIGHTS APPROACH

1 2 3 4 5

£??How much do our processes cost?

Which elements deliver VFM?

Which elements do we need to improve?

Which elements could we remove?

Where should we focus our resources?

Where can we have greatest impact?

THE BEHAVIOURAL INSIGHTS APPROACH

We need to segment our communities

in order develop more targeted

interventions and services.

Internally & externally:

tenants, colleagues, ourselves?

Personal: The Individuals

• Knowledge & awareness

• Attitudes and beliefs

• Values and priorities

Social: The community or society

• Community norms

• Peer / social influence

• Wider cultural influences (eg media)

Structural: The system

• Our service / organisation

• Political and economic landscape

• Resources: time, money etc

QUALITATIVE INSIGHT

INTERVENTION DESIGN

Change is complex

and difficult. We need

to build our change

efforts around robust

behavioural models

and theories.

INTERVENTION DESIGN

RIGOROUS EVALUATION

‘GOLD STANDARD’ EVIDENCE

Randomised

Controlled

Trial

RIGOROUS EVALUATION

RCTS

RENT ARREARSWhat will happen if we…:

• Change the colour of our envelopes?

• Refer to residents as ‘tenants’, rather than ‘customers’?

• Tell tenants in arrears how many people in their area have a clear account?

• Include a picture of the tenants home in their arrears letters?

• Get tenants to sign their payment arrangements

• Start thanking tenants for keeping / achieving a clear account?

• Do nothing?

• Issue repayment ‘contracts’ instead of ‘arrangements’

BEHAVIOURAL INSIGHTS & RENT ARREARS

BEHAVIOURAL INSIGHTS & RENT ARREARS

ARREARS: PAYMENT RATES

Slides from this section have

been removed, as they are e

mbargoed until publication of

the Project Report.

BEHAVIOURAL INSIGHTS …

AND CHANNEL SHIFTSTEVEN JOHNSON, COLLABORATIVE CHANGE //

[email protected]

BEHAVIOURAL INSIGHTS …

LET’S GET STARTED!

STEVEN JOHNSON, COLLABORATIVE CHANGE //

[email protected]

1. GET FOCUSSED!

2. CREATE A GOOD PROBLEM

3. UNDERSTAND THE DRIVERS

4. DESIGN THE CHANGE

5. MEASURE THE IMPACT

APPLYING A BEHAVIOURAL INSIGHTS APPROACH

1. GET FOCUSSED!

2. CREATE A GOOD PROBLEM

3. UNDERSTAND THE DRIVERS

4. DESIGN THE CHANGE

5. MEASURE THE IMPACT

APPLYING A BEHAVIOURAL INSIGHTS APPROACH

APPLYING A BEHAVIOURAL INSIGHTS APPROACH

MINDSPACE 3

Messenger

Incentives

Norms

Defaults

Salience

Priming

Affect

Commitments

Ego

http://instituteforgovernment.org.uk

3. Dolan et al, 2010.

4. DESIGN THE CHANGE

MINDSPACE

Messenger

Incentives

Norms

Defaults

Salience

Priming

Affect

Commitments

Ego

We are heavily influenced by who communicates information.

Our responses to incentives are shaped by mental shortcuts

We tend to do what those around us are already doing.

We ‘go with the flow’ of pre-set options.

Our attention is drawn to what is novel and relevant to us.

Our acts are often influenced by sub-conscious cues.

Emotional associations can powerfully shape our actions.

We seek to be consistent with our public promises

We act in ways that make us feel better about ourselves.

MINDSPACE

MESSENGER

MINDSPACE

Messenger

Incentives

Norms

Defaults

Salience

Priming

Affect

Commitments

Ego

We are heavily influenced by who communicates information.

We respond in counter-intuitive ways to incentives

We tend to do what those around us are already doing.

We ‘go with the flow’ of pre-set options.

Our attention is drawn to what is novel and relevant to us.

Our acts are often influenced by sub-conscious cues.

Emotional associations can powerfully shape our actions.

We seek to be consistent with our public promises

We act in ways that make us feel better about ourselves.

MINDSPACE

Messenger

Incentives

Norms

Defaults

Salience

Priming

Affect

Commitments

Ego

We are heavily influenced by who communicates information.

Our responses to incentives are shaped by mental shortcuts

We tend to do what those around us are already doing.

We ‘go with the flow’ of pre-set options.

Our attention is drawn to what is novel and relevant to us.

Our acts are often influenced by sub-conscious cues.

Emotional associations can powerfully shape our actions.

We seek to be consistent with our public promises

We act in ways that make us feel better about ourselves.

MINDSPACE

NORMS

Using social norms to increase tax payments

When people were told in letters from HMRC that most

people pay their tax on time, it increased significantly

payment rates. The most successful message led to a 5

percentage point increase in payments.

MINDSPACE

Messenger

Incentives

Norms

Defaults

Salience

Priming

Affect

Commitments

Ego

We are heavily influenced by who communicates information.

Our responses to incentives are shaped by mental shortcuts

We tend to do what those around us are already doing.

We ‘go with the flow’ of pre-set options.

Our attention is drawn to what is novel and relevant to us.

Our acts are often influenced by sub-conscious cues.

Emotional associations can powerfully shape our actions.

We seek to be consistent with our public promises

We act in ways that make us feel better about ourselves.

MINDSPACE

DEFAULTS

Auto-enrolment into pension schemes

In the first six months after employees in large firms were

automatically enrolled into pension schemes, participation

rates rose from 61 to 83%.

MINDSPACE

Messenger

Incentives

Norms

Defaults

Salience

Priming

Affect

Commitments

Ego

We are heavily influenced by who communicates information.

Our responses to incentives are shaped by mental shortcuts

We tend to do what those around us are already doing.

We ‘go with the flow’ of pre-set options.

Our attention is drawn to what is novel and relevant to us.

Our acts are often influenced by sub-conscious cues.

Emotional associations can powerfully shape our actions.

We seek to be consistent with our public promises

We act in ways that make us feel better about ourselves.

MINDSPACE

SALIENCE

Drawing the attention of those who fail to pay road tax

When letters to non-payers of car tax included a picture of the

offending vehicle, payment rates rose from 40 to 49%.

MINDSPACE

Messenger

Incentives

Norms

Defaults

Salience

Priming

Affect

Commitments

Ego

We are heavily influenced by who communicates information.

Our responses to incentives are shaped by mental shortcuts

We tend to do what those around us are already doing.

We ‘go with the flow’ of pre-set options.

Our attention is drawn to what is novel and relevant to us.

Our acts are often influenced by sub-conscious cues.

Emotional associations can powerfully shape our actions.

We seek to be consistent with our public promises

We act in ways that make us feel better about ourselves.

Priming 1

Exposing people to words relating to the elderly (e.g. “wrinkles‟)

meant they subsequently walked more slowly when leaving the

room and had a poorer memory of the room. In other words, they

had been “primed” with an elderly stereotype and behaved

accordingly.

Priming 2

Asking participants to make a sentence out of scrambled words

such as fit, lean, active, athletic made them significantly more

likely to use the stairs, instead of lifts.

Priming 3

One group was asked to think about football hooligans for five

minutes, and another about university professors. When they

were then given Trivial Pursuit questions, the first set got 42.6%

right, the second 55.6%.66

MINDSPACE

PRIMING

MINDSPACE

Messenger

Incentives

Norms

Defaults

Salience

Priming

Affect

Commitments

Ego

We are heavily influenced by who communicates information.

Our responses to incentives are shaped by mental shortcuts

We tend to do what those around us are already doing.

We ‘go with the flow’ of pre-set options.

Our attention is drawn to what is novel and relevant to us.

Our acts are often influenced by sub-conscious cues.

Emotional associations can powerfully shape our actions.

We seek to be consistent with our public promises

We act in ways that make us feel better about ourselves.

MINDSPACE

Messenger

Incentives

Norms

Defaults

Salience

Priming

Affect

Commitments

Ego

We are heavily influenced by who communicates information.

Our responses to incentives are shaped by mental shortcuts

We tend to do what those around us are already doing.

We ‘go with the flow’ of pre-set options.

Our attention is drawn to what is novel and relevant to us.

Our acts are often influenced by sub-conscious cues.

Emotional associations can powerfully shape our actions.

We seek to be consistent with our public promises

We act in ways that make us feel better about ourselves.

MINDSPACE

COMMITMENTS

Prompting honesty by asking people to sign up front

Drivers reported having driven around 10% more miles

when they signed their name before filling in an insurance

form, rather than after.

MINDSPACE

Messenger

Incentives

Norms

Defaults

Salience

Priming

Affect

Commitments

Ego

We are heavily influenced by who communicates information.

Our responses to incentives are shaped by mental shortcuts

We tend to do what those around us are already doing.

We ‘go with the flow’ of pre-set options.

Our attention is drawn to what is novel and relevant to us.

Our acts are often influenced by sub-conscious cues.

Emotional associations can powerfully shape our actions.

We seek to be consistent with our public promises

We act in ways that make us feel better about ourselves.

4. DESIGN THE CHANGE

RENT ARREARS NUDGES: What will happen if we…

• Change the colour of our envelopes?

• Refer to residents as ‘tenants’, rather than ‘customers’?

• Tell tenants in arrears how many people in their area have a clear account?

• Get tenants to sign their payment arrangements

• Start thanking tenants for keeping / achieving a clear account?

• Do nothing?

• Issue repayment ‘contracts’ instead of ‘arrangements’

OVER TO YOU…!

APPLYING A BEHAVIOURAL INSIGHTS APPROACH

BEHAVIOURAL INSIGHTS …

THE PROGRAMME

STEVEN JOHNSON, COLLABORATIVE CHANGE //

[email protected]

DATA

ANALYSIS

PROCESS

MAPPING

CUSTOMER

INSIGHT

INTERVENTION

DESIGN

INTERVENTION

TRIAL

CAPACITY BUILDING!

DATA

ANALYSIS

PROCESS

MAPPING

CUSTOMER

INSIGHT

INTERVENTION

DESIGN

INTERVENTION

TRIAL

• Highlight and prioritise priority transactions / services

• Analyse service data to understand which customers are

using which channels.

• Profile customers and segmentation against access

behaviours and demographic information.

• Highlight and prioritise target customers

DATA

ANALYSIS

PROCESS

MAPPING

CUSTOMER

INSIGHT

INTERVENTION

DESIGN

INTERVENTION

TRIAL

• Map business process(es) and the customer journey to

identify bottle necks and barriers.

• Model cost of transaction/service delivery as a baseline for

evaluation.

• Map ‘golden moments’ where behavioural intervention can

have greatest impact.

DATA

ANALYSIS

PROCESS

MAPPING

CUSTOMER

INSIGHT

INTERVENTION

DESIGN

INTERVENTION

TRIAL

• Review existing customer insight and ascertain

whether further qualitative research is required.

• Design and deliver qualitative research with

priority tenants / colleagues.

• Analyse qualitative data and report findings,

insights and recommendations.

DATA

ANALYSIS

PROCESS

MAPPING

CUSTOMER

INSIGHT

INTERVENTION

DESIGN

INTERVENTION

TRIAL

• Use behavioural science and Nudge principles

to design a specific intervention for your

organisation.

• Combine community insight, change theory,

behavioural insights and design frameworks to

ensure intervention is evidence-based and

‘best practice’.

DATA

ANALYSIS

PROCESS

MAPPING

CUSTOMER

INSIGHT

INTERVENTION

DESIGN

INTERVENTION

TRIAL

• Launch the intervention and test with robust trials,

ideally a Randomised Control Trial.

• Gather and analyse data to assess impact on revenue,

arrears, operating costs and other KPIs specific to

intervention/target segment.

• Report with outcomes, impacts and process evaluation.

DATA

ANALYSIS

PROCESS

MAPPING

CUSTOMER

INSIGHT

INTERVENTION

DESIGN

INTERVENTION

TRIAL

CAPACITY BUILDING!

WHAT’S IN IT FOR US?

• Reduced costs and increased customer satisfaction

• An best-practice behavioural insights intervention focussing

on a key transaction or service.

• Robust statistical evidence, based on a randomised

controlled trial

• Greater understanding of your ‘cost-to-serve’

• Behavioural insights recommendations for wider Channel

Shift agenda within your organisation.

• New skills and knowledge in relation to behaviour change,

‘nudge’ theory and building evidence base.

• Thought leadership positioning: association with a ground-

breaking sector programme.

WHO WILL WE BE WORKING WITH?

You will be working with:

• Mike Eckersley,

• Anna O’Halloran, Director, O’Halloran Consultants

• Steven Johnson, Behaviour Change specialist, Collaborative Change

WHO CAN PARTICIPATE?

• Places limited to 10 organisations

• Seeking professionals and organisations with the ambition to

innovate and challenge conventional approaches.

• Therefore, participants should be in a position to trigger

change within their organisation, in terms of both operational

practices and culture.

• This could include, but is not restricted to:

• Customer Service Heads

• Director of Transformation

• Heads of ICT

Questions

“To make citizens’ lives simpler and easier, the Government will mandate ‘channel shift’ (move online) in selected government services”

UK Government IT Strategy March 2011 Mike Eckersley07753 300265

@mike_eckersley

Steven Johnson07719 242 795

@Collab4Change

Anna O’Halloran07912 110078

@AnnaEOHalloran