Embed Size (px)
Citation preview
1 1
Nudge
Helping Marketers
Gently Change Behaviors Shopper Brain
Conference
June 22, 2017
2
What is Nudge?
…in a non-conventional but predictable way
A gentle help to influence people’s behaviors…
Please dispose of trash
in receptacles Litter reduced 46%
3
How to Reduce the Number of Road Accidents?
Decreased Accidents By 36%
Chicago’s Lake Shore Drive
4
What is Nudge?
It is grounded in Behavioral Economics
We are not rational agents maximizing self-interest…
… but only fallible humans driven by impulse, habits, and context.
5
The 4 Implicit Forces Which Drive Our Behavior
We Are…
EMOTIONAL
CONTEXTUAL SOCIAL
ILLOGICAL
6
Nudge Leverages Irrational Decision-Making
Donations to Help Hunger Victims:
• 2 options to raise money:
◦ “Help 3,000,000 children”
◦ “Help Rokia” – whose picture was shown
Donations were more than double for the one girl
Would you like to help Rokia?
Increasing Staff’s Hand Washing:
• Added the smell of lemon to area outside of ORs
Compliance increased from 15% to 47%
7
Using Nudge to Help a Brand and Save Lives!
8
How to Reduce Electricity Consumption?
A Change in the Utility Bill Led to Millions in Savings!
9
How to Encourage Soup Consumption?
OPTION 1: 79¢ / can
No purchase limit
OPTION 2: 79¢ / can
LIMIT 12 cans / person
3.3 cans / person
QUANTITY SOLD 7.1 cans / person
Promotional Price Reduction: From 89¢ To 79¢
10
Applying Nudge to Marketing
The goal is BEHAVIORAL CHANGE
Rational approaches have PROVEN LIMITS
CONSUMER wants to do the new behavior (A “Win-Win” situation)
Adopting New Usage Occasions (Developing New Habits)
Encouraging Compliance (Reinforcing Positive Habits)
Category-Level Behavior (Not Brand Preference)
11
How to Encourage Mindful Snacking?
• Even those interested in “healthful eating” are unaware of “right” portion
◦ most Smarties buyers eat the entire pack at once.
• Mindless munching leads to obesity
• Smarties can be a responsible snack
12
How to Encourage Mindful Alcohol Consumption?
13
Our Proprietary NudgeLab Process
14
Uncovering “Levers” & “Micro-Barriers”
Second
Moment of
Truth 2
0
Zero Moment
of Truth
WEB
MOBILE SOCIAL
INDIVIDUAL
SHOPPER
USER
REPUTATION
MEDIA
PACK
WOM
PRODUCT
1
First Moment
of Truth
15
Inspiration-Based Nudge Ideation Workshop
1- Reminder of the principle of Nudging with examples: to immerse participants in a new way of thinking and show them the type of solutions that are expected.
2- Synthesis of the ethno stage results in a creative way: to favor the creation of solutions drawing on the explicit and implicit barriers and levers identified
3- Stimuli / Projection using the Nudge cards: to promote the emergence of Nudges at the different touchpoints, drawing inspiration from existing Nudges adapted to the desired behavior.
4- Formulation of the Nudges: for a concrete and operational output, which represents the basis of the future NudgeBook.
16
Prioritizing Nudges Based on Matrix Position
An evaluation based on 7 criteria and 2 reading axis
Internal acceptability: Ability of the Nudge to be accepted by internal
individuals (rules, …)
Consumer risk: Risk of non-acceptability by the individual.
Cost: Financial cost of the Nudge implementation.
Simplicity: Simplicity of the Nudge implementation.
Efficacy : Expected efficacy for encouraging the desired
behavior.
Size of the target: Number of people affected by the Nudge.
OPPORTUNITY
FEASIBILITY
Long term effect: Ability to affect behavior in the long term
Mapping the Nudge Matrix, indicating the prioritization
17
Assessing Nudge Performance
BEFORE NUDGE IMPLEMENTATION
2. Concurrently
Measurement of significant differences (quantitative)
Measurement of minor/major gap (qualitative) Modify / Select
AFTER NUDGE IMPLEMENTATION
AREA WITH NUDGE
IMPLEMENTATION
AREA WITHOUT NUDGE
IMPLEMENTATION
1. Sequentially
18
We’ve Conducted “Nudge” Studies for Leading Marketers...
…Addressing a Wide Range of Challenges & Desired Behavioral Changes.
19 19
How Can We “Nudge” People To Brush Their
Teeth More Often?
20 20
How Can We “Nudge” People
To Use Margarine for
Baking?
21 21
How Can We “Nudge” People To Adopt a New
Form of Pest Control?
22 22
How Can We “Nudge”
Compliance of Daily
Supplements?
23
Our Nudge Process Can Be Focused More Narrowly
“Full” Nudge “Shopper” Nudge
For Strategic Initiatives Involving the Full Consumer Experience
(ZMOT, FMOT & SMOT)
For More Tactical Initiatives Focused on the FMOT
(Impacting Shopper Behavior)
24 24
How Can We “Nudge”
Additional Items in the Ethnic Aisle?
25
ShopperNudge
A Workshop with PRS IN VIVO Nudge Specialists, Cross-Functional Client Teams & Creative Consumers
26
Let’s Discuss Your Nudge Opportunities!
27
Let’s Discuss Your Nudge Opportunities!
Jonathan Asher Executive Vice President
T: 201.720.2724
Most people immediately think of at least 3 applications for Nudge after hearing this
presentation – what are yours?
Please Visit www.prs-invivo.com
