Genesis presentation, CCMG Conference 2017
Behavioural economics, which studies human decision-making behaviour, proves to be a powerful tool in optimising contact centre performance. Behavioural economics has been used successfully in the contact centre environment to address a range of customer challenges and behaviours across a range of industries.
2. WHO WE ARE:
We're a team of management
consultants that specialise in human
behaviour and thinking.
We help businesses grow and become
more profitable by effecting large-scale
customer behaviour change using
behavioural economics.
OUR CLIENTS INCLUDE:
2
3. Table of Contents
Introduction to behavioural economics
Behavioural economics around the world
Using behavioural to improve contact centre performance
Our approach
5. In fact they are identical - this is a visual illusion…
5
6. Behavioural economics, the convergence of economics, psychology and sociology, studies human decision-making and takes seriously
the fact that we often behave in consistent counter-intuitive, or irrational, ways
5
…decision-making has illusions too
Would you rather
take a certain
$80…
Or have a 85% chance
of winning $100 and a
15% chance of getting
nothing?
Psychology
of
preferences
7. Heuristic example 1
7
Rates of organ donation membership across a sample of European countries
(Percentage of the population, 2008)
86%
100%100%100%100%
97%
100%
12%
17%
28%
4%
Netherlands Belgium FranceAustriaGermanyDenmark United
Kingdom
Portugal SwedenPolandHungary
Check the box alongside if you
want to join the organ
donation program
Check the box alongside if you DO NOT want
to join the organ donation program
1
10. Some examples of these patterns include …
Source: 1. Cognitive Bias Codex, 2016
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11. Table of Contents
Introduction to behavioural economics
Behavioural economics around the world
Using behavioural to improve contact centre performance
Our approach
12. Organisations from around the world have applied behavioural economics…
12
HSBC nudge
app
Lloyds Bank
Money Manager
JPMorgan
Chase Financial
Solutions Lab
Barclays Bank
Behavioural
Finance Unit
Discovery Health
Vitality
The Obama
campaign
The Behavioural
Insights Team
The Behavioural
Economics Team
#ogilvychange
AIG
Insurance
Ipsos
AIA Group
13. …and have achieved demonstrable commercial success
13
The Behavioural
Insights Team
Lloyds Bank
Money Manager
AIG
Insurance
HSBC nudge
app
JPMorgan
Chase Financial
Solutions Lab
Barclays Bank
Behavioural
Finance Unit
The Obama
campaign
The Behavioural
Economics Team
#ogilvychange
Ipsos
AIA Group
The Obama
campaign
Barclays Bank
Behavioural
Finance Unit
• Addresses the behavioural nature of risk to achieve
outcomes that are good for members, society, and insurers
• Grows by 18% per year in new business
Discovery Health
Vitality
14. Table of Contents
Introduction to behavioural economics
Behavioural economics around the world
Using behavioural to improve contact centre performance
Our approach
15. CASE EXAMPLE 1:
Increased short-term insurance sales by optimising the full leads process
Proportion of leads that translated into a quote
increased by 28%-points
(Average transfer-to-quote ratio, 2015)
43,31% 53,92%41,97%
25%-3%
43.1%
Overall increase in sales
25%
28%
Endowment effect:
“Some insurance
companies overcharge
by as much as 20%”
Default effect:
“Should we begin with
your car, house or
contents?”
Anchoring:
Agents pitch the
premium at higher price
by loading it at first
Reciprocity:
Allow one “discount” from
the agent and one from
the manager
31%16%
1,751,50
2,07
1,58
Average sales increased by 16%-points
(Average sales per agent per day, 2015)
16%
Historical
(Six-month average)
Pilot
(One-month average)
Historical
(Six-month average)
Pilot
(One-month average)
Lead warmers1 Sales agents2
TestControl TestControl TestControl TestControl
15
16. CASE EXAMPLE 2:
Three-fold return on investment realised in two months
Investment returns X X
Total value of sales
during pilot
Expected value of sales
without intervention
Y
3.1Y
0,68X
Multiple of actual sales from expected sales & ROI multiple
The campaign had actual
sales more than three
times the value that was
expected without
intervention
The client realised a 2.68 return
on the investment of the project
Project
investment
A behaviourally-informed script was introduced to an unscripted environment
Agents were encouraged to drive conversations & aim for first-call
resolution
Focus on the structure of inbound calls optimised conversations
Tools used for improved cross-sell ability in outbound calls
Customer needs established created, analysed and satisfied
Agent upskilling and supporting
collateral was crucial for correct
implementation of the script
Examples of
behaviourally-
informed
collateral
16
17. Applied behavioural techniques to four key decision
points throughout the transactional product/forex sales call
CASE EXAMPLE 3:
Improved the probability of a funded sale within retail bank’s contact centre
Achieved a 45% increase in the likelihood of a funded
sale with the new behaviourally-informed script
The hook:
“Are you happy with your current bank fees?”
1
Needs analysis:
Understand upfront how the client would like to bank
2
Compliance:
Distributed throughout script to limit cognitive strain
3
Product pitch:
Value positioned in a way that resonated with clients
4
Test
5.2%
7.5%
Control
+44.2%
Probability of success increased by 44.2%
(% of conversations that resulted in a sale, 2014)
17
18. CASE EXAMPLE 4:
Increased software sales in a highly competitive B2B telesales environment
Four-step process aimed at improving software telesales performance in a B2B environment
Sunk cost effect
Default effect
Negativity bias
Analysed key insights
from inbound and
outbound calls
Designed
behavioural toolkit
for inbound and
outbound calls
Interactive training
aimed to embed key
learnings
One-on-one
coaching with
agents
1 2 3 4
R187 726
+29%
Historical
R241 273Pilot
Performance increased by 30%
(Three-month average)
Average sales per agent increased by approximately 30%
(Rand value of monthly sales per agent, 2014)
(One-month average)
18
Selling multiple, complex
software products
Large and small ticket
items
Unscripted conversations
19. CASE EXAMPLE 5:
Significantly improved conservation of retirement savings
R297 805
R116 767
+155%
3M
0
2M
1M
7M
5M
6M
4M
December January FebruaryNovember May
The full roll-out of the new script resulted in a 155%
increase in Rand amount conserved per day
(Daily Rands conserved per agent, 2016)
Performance during the pilot indicated that a 139%
improvement in conserves in the long-term
(Monthly Rands conserved per team, 2015)
Control Treatment
+139%
Historical
(Three-month average)
New script
(Two-month average)
Behavioural toolbox
Pilot results Roll-out results
Expected result
Actual result
Positive framing
Convert the call into a conversation about saving
for a happy retirement, rather than being about
a withdrawal
1 Anchoring
Before telling the client the fund value, anchor
the client on the savings value they should
accumulate before retirement
2 …and others
Herd effect, recency
bias, hyperbolic
discounting, etc.
3
19
20. CASE EXAMPLE 6:
Increase in self-service channel usage at a large home entertainment
provider
• The Genesis team sought to change customer behaviour by encouraging customers to make use of self-service channels (such
as the website, smartphone app) rather than the contact centre
• Behavioural economics was used in scripting and process redesign to achieve a 146% increase in self-service usage
Scripting
Process redesign
1
2
Personalisation:
“Customers like
you are solving
this query by…”
Overall increase in self-service usage: 146%
Assisted in breaking-down the
learned behaviour of
customers calling the contact
centre in response to any issue
Herd Effect:
“Mr Smith, most of our
customers are solving
this query by…”
20
36%
32%
76%
90%
Logins 146%
Service queries
Payment queries
Transactions
100%
Account queries
Total queries
3
21. CASE EXAMPLE 7:
Increasing sales by combining behavioural economics and big data
21
Process changes
Increased campaign priority
Four new lead-triggers were added to the three
existing triggers, improving lead-quality for all
agents
Triggers were added to the dialler and made visible
to all agents. This provided the agents with more
context to the client and the conversation
Total insurance sales per team
(Monthly sales, 2016)
50
36
0
10
20
30
40
50
JuneMayAprilMarchFebJan
ControlTest
Pilot
Historical underperformance
of test team
Pilot outperformance
of test team
Behavioural tools used in scripted conversations
Difference in team sales performance per period
(Monthly sales, 2016)
36
Control
-50%
Test
50
36
Control Test
+39%
Historical Pilot
+89%
Insights and actions
Pilot results
Avoid choice-overload by
offering only the insurance
product associated with the
relevant trigger
Herd effect: “We are able
to find a lower premium for
60% of our clients”
Anchoring: “We have two
policies for you. The first
costs R700 per month, the
second is R200 per month”
Process changes
affected everyone
1 2
Exclusivity: “We are
calling because you
are an existing client”
22. Table of Contents
Introduction to behavioural economics
Behavioural economics around the world
Using behavioural to improve contact centre performance
Our approach
23. Our range of services is cumulative in a broader approach
Rapid test
Big bang
5-10 days 5-10 days 6-8 weeks
3-4 months 1-3 months 2-4 months
12+ months
• Decision mapping
• Behavioural research
& insights
• Behavioural analysis
& segmentation
Behavioural
Analysis
Behavioural-
Change Design
• Decision mapping
• Behavioural research
& insights
• Behavioural analysis
& segmentation
• Nudge design
• Loyalty & incentive
design
• Behavioural
economics capability
builds
• Training in behavioural
economics
Capability
Building
Behavioural
Prototyping
• Nudge design
• Loyalty & incentive
design
• Decision mapping
• Behavioural research
& insights
• Behavioural analysis
& segmentation
• Field testing & piloting
• Channel & campaign
optimisation
Timelines
23
Alternative approach to visual illusion: When audience members are not measuring the tables on an A5 piece of paper
IWZ004: Sales Test & Learn
Genesis Analytics was retained by a large insurance company to demonstrate how behavioural economics techniques can be used in their contact centre teams to increase the volume of new sales
The volume of outbound sales is largely driven by two things:
Lead warmer’s ability to transfer quotable leads
Sales agent’s ability to convert a quote into a sale
Lead warmer nudges:
Endowment effect: “Some insurance companies overcharge clients by as much as 20%”
Default effect: “Should we begin with your car, house or contents?”
Herd effect: “We value all 17 million of our clients”
This increased transfer-to-quote conversions of the test team relative to the control team by 28%-points
Sales agent nudges:
Anchoring: Pitch premium at higher price by loading it at first
Reciprocity: Allow one “discount” from the agent and one from the manager
Framing: “Will you be able to make a decision today?”
Mirroring: Repeat customer’s words throughout call
This increased average daily sales of the test team relative to the control team by 16%-points
Overall, by optimising the full leads value-chain, we increased sales by 25% over the testing period
SPL004: Call centre scripting using the principles of behavioural economics
Genesis Analytics was commissioned to apply behavioural economic to the unscripted environment in order to create a scripting and tools pack to assist agents to optimise their inbound and outbound calls
The team’s objective was to increase outbound sales by developing and implementing an improved outbound call structure and script
To achieve this, behavioural insights were used to design a customer centric call structure and script
The agents were trained to focus on surfacing, solving for, and satisfying each client’s unique set of needs
Total expected sales without the intervention: R237 418
Sales during pilot: R737 780
The pilot saw a 3.1 times actual sales value from what was expected (737780/237 418)
Investment – R187 000, we added R500 362 more than they expected. This is a 2.68 return on investment within two months
The agents within the telesales environment were unscripted, handle both inbound and outbound calls, sell both large and small ticket items and deal with multiple, complex products which require significant product knowledge. The Genesis Analytics team went through a multi-step process whereby they first listened to calls and engaged with the agent, quality control function and team management to better understand the nature of the environment and the calls. The next step was to formulate the tools to assist the agents by applying behavioural economic tenets and finally a process of training, agent coaching and change management was engaged in to ensure the learnings were ingrained with each of the agents. The team were also able to add value by providing advice in the following areas: team culture, team structure redesign, the on-boarding process and the incentive structure.
NED032: BE call centre - transactional product and forex sales
In this project we worked with a retail bank’s contact centre sales team to increase the number of:
Transactional product sales; and
Forex sales.
The outcome of statistical analysis suggests that the odds of a successful call increased by 45% using the new behaviorally informed script.
This was achieved by applying behavioural economics to key decision points within the sales call.
These key decision points included (not exhaustive):
Hook: “Are you happy with the amount you are spending on bank fees?” (self-generation effect)
Needs analysis: The questions centred on understanding how the client would like to bank
Compliance: Compliance within a script is frequently burdensome. It was split throughout the script to make it less cumbersome.
Product pitch: The value was positioned in a way that resonated with clients
SPL001: Behavioural economics call centre scripting
The agents within the telesales channel of a large software company:
Having unscripted conversations
Handling both inbound and outbound calls
Selling both large and small ticket items
Dealing with multiple, complex products which require significant product knowledge
The objective of the engagement was to increase sales figures by ensuring a greater number of quotes were converted into actual sales
The following are some of the key behavioural economic tenets applied:
Sunk cost effect: Increase cross-selling in the initial purchase
Default effect: Increase the uptake of a service agreement and assist in closing a sale
Negativity bias: Enhance customer satisfaction and loyalty
Performance improved by almost 30%
Relative to historical performance, the Rand value of sales increased by 29% over the one-month pilot period
OMG003 and OMG007 (Phase 1): Improving retentions in corporate exits
When leaving their employer (resignation, retrenchment, etc.), corporate customers are given the option to either withdraw their retirement savings in cash or reinvest with Old Mutual
Objective was to get corporate customers to reinvest (a greater portion) their retirement savings with Old Mutual
A primary insight gained by the team was what we might call the “lottery effect”:
Given the nature by which retirement deductions take place (before salary is paid each month), most customers are unaware of how much they have saved;
The customers being called have just left their employer and are most likely in an uncertain space;
When learning that they have this relatively large sum of money saved up, the customer feels like they have won the lottery, forgets the actual purpose of the savings fund (retirement) and starts mentally spending the money
Working in the contact centre, the team focused on repositioning this conversation by:
Reminding the customer that this money is intended for retirement; and
Adjusting the customer’s perception of value
Two primary nudges used:
Positive framing: Convert the call into a conversation about saving for a happy retirement, rather than being about a withdrawal
Anchoring: Before telling the client the fund value, anchor the client on the savings value they should accumulate before retirement
Other nudges, including herd effect, recency bias and hyperbolic discounting were also used
The new, behaviourally-informed script was first rolled-out in a pilot environment
Pilot results indicated a 139% increase in Rand value conserved
When rolled-out across the contact centre team, results showed a 155% increase in Rand value conserved per agent
MUL001a: Improving self service channel usage (and customer satisfaction) from within the call centre
Voice over on project context:
A large home entertainment provider had, over time, incrementally improved their call centre allowing them to achieve high customer satisfaction in this environment
They quickly became victims of their own success, when, over time, this led to a large increase in call volumes and hence an increasing drag on the budget
Voice over on nudges used:
Primarily herd effect (social proof)
Voice over on results:
146% increase in self-service usage