Economics is about understanding consumer behaviour. But we often need a deeper understanding of behaviour and how to change it. This is the role of behavioural economics.
Blending economics with behavioural science, we provide a sophisticated toolkit with which to study customer decisions. Behavioural science helps us explore what drives customer behaviour: the subconscious, the emotions and the power of context. Economics helps identify and prioritise the behaviours to target. That is, what are the behaviours that reduce costs or drive revenue. And what is the best way to change those behaviours.
To change behaviour in a targeted way we always start with a thorough diagnosis of what people are doing and why. We combine behavioural sciences and economics to get a richer picture of what really motivates customers, rather than what they say motivates them, and identifies the priority behaviours to change.
With a clear idea of what is driving customers’ behaviour, we think about how to target them. We work with clients to create solutions that pull the levers that drive behaviour. The solutions can be wide-ranging: new products, different styles of communication, improving website language and layout, or implementing innovative customer service models.
We’ve learnt that subtle differences often make a big difference. This is why we invest time in testing (and learning from) ideas. We design tests that deliver clear evidence, as well as supporting the analysis of the results, before solutions are delivered and refined.