BE Linguistic LabApplication of Behavioural Economic concepts to customer contact

Crawford Hollingworth, Jo Davies and Marcus Hickman

BE Linguistic Lab – Adding Value to Customer Touch Points

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Customer touch point needs

Customer experience journey planning

Call script, guide and real time prompt design

Compliance adherence Voice self-service & IVR architecture

Advisor interaction skills

Quality management Advanced speech & text analytics

Self-service strategy

BE Linguistic Lab

BE Linguistic Lab

BE Deliverables

Applied insights into how you can use BE to increase the desired customer behavioural outcome

Specific linguistic changes you can make

The provision of a set of behavioural hypotheses of the BE barriers potentially in operation and solutions for tackling these barriers/biases

The Power of Behavioural Economics

BE provides a science-led understanding of why people behave and think in certain ways, why they do one thing vs. another. Its foundations are a deeper understanding of how our brains are structured or, as we call it, wired in specific ways. This understanding gives us a framework or blueprint from which to think about behaviour.

Over the years the behavioural sciences have revealed a whole mass of human cognitive idiosyncrasies [biases] which reveal people to be much more malleable than the old model of rational economic man would suggest. It has been said that this is a great time to be a brain as new insights are uncovered every week!

Understanding how someone’s brain is wired, and knowing how these biases can or could be leveraged, allows us not only to see why people may behave one way vs. another but also empowers us to be able to use this understanding to change behaviour and to steer or nudge people in different ways. It also shows us how small changes can make significant differences in behaviour.

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The Power of Behavioural Economics and Customer Contact

Customer contact leaders are under more pressure than ever before to deliver reduced customer effort at lower cost, increase customer satisfaction and NPS, while driving revenue and retention. Balancing these complex objectives requires deployment of the latest techniques.

BE provides powerful new tools that can increase efficiency in achieving your customer contact behavioural aims – from driving self service, to more effective complaint management, to reducing call time, to improving IVR architecture, to cross selling, to real time prompts for agents, through to providing directional frameworks which analyse the output from speech analytics.

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Applying BE to your Challenge – The BE Linguistic Lab

Give us a contact centre challenge you’re facing now, share with us some typical dialogue [scripted or unscripted] or give us a set of issues impacting on your desired customer behaviour and we will analyse and provide some directive insights into how you can use BE either to increase the desired behavioural outcome and/or provide a set of behavioural hypotheses of the BE barriers potentially in operation and a set of hypotheses for tackling these barriers/biases.

The BE linguistic lab. The Behavioural Architects lab brings together all our global knowledge and cutting edge research into customer behaviour and behavioural change. We have over the last few years built extensive global databases around key BE constructs and monitor key thought leaders on a daily basis. We also have a major BE archive of the ways in which this thinking has been leveraged around the world by companies and governments. Finally, we have consultants with years of commercial experience to apply this IP to action-oriented solutions and ideas.

Our offer is also designed to be simple and cost effective. The engagement can be from a virtual transactional one to a deeper level of consultancy.

The Behavioural Architects (TBA) have teamed up with Davies Hickman to combine our unique skill sets. TBA pioneering the field of applied behavioural economics and Davies Hickman with their bank of the latest customer communication trends and international expertise in contact centre management.

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Cognitive Biases

Customer behavioural journey – behavioural touch pointsCustomer behavioural journey – behavioural touch points

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Social Biases such as in group bias, ego centric,

status quo, herd instinct.

Social Biases such as in group bias, ego centric,

status quo, herd instinct.

Memory biases such as rosy retrospection, hindsight,

consistency bias, peak end rule.

Memory biases such as rosy retrospection, hindsight,

consistency bias, peak end rule.

Decision making biases such as discounting the future, anchoring, negativity bias,

framing, illusion of control, endowment effect.

Decision making biases such as discounting the future, anchoring, negativity bias,

framing, illusion of control, endowment effect.

Probability / belief biases such as availability,

authority.

Probability / belief biases such as availability,

authority.

Behavioural Nudges

Customer behavioural journey – behavioural touch pointsCustomer behavioural journey – behavioural touch points

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Change the frame change the impact – form rubbish to

landfill!

Change the frame change the impact – form rubbish to

landfill!

Change the default – from reducing salt to organ donation

Change the default – from reducing salt to organ donation

Herd instinct – the power of social norms – Obama gets elected

and IHWSH, to increasing

questionnaire response

Herd instinct – the power of social norms – Obama gets elected

and IHWSH, to increasing

questionnaire response

Loss aversion – only one room left at that price! Losses hurt more than gains by a factor of 2

Loss aversion – only one room left at that price! Losses hurt more than gains by a factor of 2

Commitment bias – behaviour first, attitude

second from keep Britain tidy to political elections to filling

in tax forms

Commitment bias – behaviour first, attitude

second from keep Britain tidy to political elections to filling

in tax forms

Reciprocity bias – starting a

positive wave and stopping a – ve

one

Reciprocity bias – starting a

positive wave and stopping a – ve

one

The peak end rule – the power of a big finish. M&S and it’s

lovely plums

The peak end rule – the power of a big finish. M&S and it’s

lovely plums

Choice architecture and anchors– from navigating complexity to manipulating choice - every choice is relative – bread making, wine

lists and potatoes

Choice architecture and anchors– from navigating complexity to manipulating choice - every choice is relative – bread making, wine

lists and potatoes

Chunking – the power of mental bites - from five a

day to confused.com!

Chunking – the power of mental bites - from five a

day to confused.com!

BE thought starters …. Think individually but also collectively

Using anchoring and adjustment to disarm issue

/ conflict resolution

Using anchoring and adjustment to disarm issue

/ conflict resolution

Using layered commitment bias

strategies to encourage new behaviour / or habit e.g saving or on line vs.

paper statements

Using layered commitment bias

strategies to encourage new behaviour / or habit e.g saving or on line vs.

paper statements

Using social norms and scarcity bias /

loss aversion to aid up-selling

Using social norms and scarcity bias /

loss aversion to aid up-selling

Using social norms to promote online chat

rooms

Using social norms to promote online chat

rooms

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Using mental chunking to make a consumer journey

seem manageable and give clear feedback

Using mental chunking to make a consumer journey

seem manageable and give clear feedback

Choice architecture and the power of three or five! Also

use lower and upper anchors to direct customer towards

desired behaviour

Choice architecture and the power of three or five! Also

use lower and upper anchors to direct customer towards

desired behaviour

Gamification in customer contact because it is fun to play and activates similar

area of the brain as reward

Gamification in customer contact because it is fun to play and activates similar

area of the brain as reward

Play to loss aversion - talk what they might lose vs

gain. Power of time sensitive offers

Play to loss aversion - talk what they might lose vs

gain. Power of time sensitive offers

Use endowment bias – power of get something

in their hands ..then they over value it

Use endowment bias – power of get something

in their hands ..then they over value it

Our intelligenceAppendix

Behavioural Experts Network

Global experts network including behavioural

economists, social anthropologists, social

psychologists, & journalists

‘Expert Eyes’ throughout a project –

from hypothesis development to

strategic recommendation

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Consumer Behavioural Network

Global network of BE Spotters

Diverse mix of people who have a

natural ability to see and decode the

context around them.

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Global Behavioural Database

Database of BE examples across

categories & countries

Examples of how organisations and

brands are leveraging BE thinking

Stimulus for innovation, brand positioning &

communications

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www.thebearchitects.comwww.davieshickman.com

For more information please contact:Crawford Hollingworth +44 (0)7802 758011

Marcus Hickman +44 (0)7946 631119