Customer is King but...| Professor Jeff French | The Mindspark
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Learn from Global thought leader on behavioral influence what motivates people and how science is applied to help and influence them, make better decisions in both business and the Public sector. Keynote by Professor Jeff French at the Mindspark Alexandroupolis 2018: "Customer is King but...you can always influence Kings & Queens" Keynote Link: https://youtu.be/frPphlje-nY Professor Jeff French is a global thought leader in the fields of behavioral influence, Social Marketing, social communication and program planning and evaluation. More on Prof Jeff French: https://mindspark.gr/professor-jeff-f... More on the mindspark: www.mindspark.gr
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Customer is King but...| Professor Jeff French | The Mindspark
- 1. Customer is King, but you can always influence Kings and Queens Influencing Behaviour For Profit and Social Good Professor Jeff French
- 4. My thesis • Influencing behaviour is a key goal of all social interactions • We should use science to influence behaviour • It’s not just about awareness. Customers, clients and citizens are Kings and Queens to serve them we need to understand them
- 5. Content 1. What influences our behaviour 2. Traditional ways of influencing behaviour 3. New understanding about influencing behaviour 4. Examples of how to apply the science of behavioural influence
- 6. Content: My problem How to cover thousands of years of learning and multiple sources of knowledge Why have I got 30 minutes? MY
- 7. 7
- 10. Why do we behave as we do? –Genetics –Evolution –Culture and history –Physical environment –Learning –Economic and resource issues –Specific contexts and stimulus
- 13. Behaviour Social and Economic Wealth / Poverty Inequality Tradition / Culture / Religion Social Cohesion Social norms / Relationships Environment Built environment Infrastructure Geography Geo events Weather Temperature Air quality Pollution Biological Disease Infection Somatic state Nutrition Age Gender Race Animal / Plant Interactions Logic Rapid Cognition
- 15. Traditional ways of influencing behaviour
- 16. Legislate Monitoring Police Rules Requirements Enforcement Regulate Incentives Dis-incentivise, The 5 Types of intervention Inform Educate Support Design Control Provide serviceAssist Care Support Advice Advocate Nurture Teach Engage Inspire Build skills (analytical & practical) Critical consciousnessMotivate Mobilise Physical environment ProductsTechnology Systems, Policy, Service de-CIDES influencing behaviour framework© Communicate Remind TriggerMake aware Advise Highlight Signal Treat Screen
- 17. Control
- 18. Control
- 19. Smarter avoidance in Greece! Control
- 20. Can I read your mind? I will spot your card and remove it!
- 21. NO! Inform
- 24. Is your card missing? When I show the deck put up your hand if I have removed your card
- 25. People get distracted and they forget
- 26. Inform
- 28. Norway: ‘Pant’ reward system 97% of plastic bottles in Norway are recycled. The Pant model is based on a small surcharge being paid on every bottle bought. The surcharge, or deposit, is paid back to consumers when bottles are returned via specialised machines located at most supermarkets. The principle is that if drinks firms can get bottles to shops to sell their products, they can also collect those same bottles Design
- 29. Educate Public and Staff Education
- 30. Support
- 33. KIKI BOOBA
- 34. Are we logical people who make sensible decisions? NO
- 35. The neural tug of war 2 1
- 36. Our Preference and Bias • We like – People (Like us) – The new and novel – The easy life – Things to be fair and to share – Feedback and rewards – The familiar – To have our say and be involved – Optimism • We don’t like – Loss – Complexity – Too many choices – The new and challenging – Punishment All can be used to influence behaviour
- 37. : • Positive or only minor penalties • Avoidable • Passive and easy i.e. require little effort • Low cost to both the person and to the organisation utilizing them
- 38. 4 Forms of intervention(French J SMJ Vol 1. No2 20111, P 154 -162) Incentive Reward Disincentive Penalty Active Decision Conscious / Considered Automatic / Unconscious Passive Decision HUG NUDGE SMACK SHOVE
- 39. NUDGE
- 40. HUG
- 41. SMACK
- 42. SHOVE
- 43. We also have new insights about the influence of: 1. Reflective thinking Culture 2. Consciousness raising Engagement 3. Procedural Justice 4. etc...
- 44. Put your hands up generation LX you are the ‘Charmed Generation’ Typically, people born between 1950 and 1970 You want it how you want it
- 46. Citizens and Customers want to be part of the solution I do not believe you I do not trust you Listen to me I am in control now Help me solve the problems
- 47. Co-design Co-delivery Co-production Co-appraisal Co-development Co-testing Co-implementation Co-review Co-evaluation Co-dissemination Co- value creation •Viral marketing •Permission Marketing •Relationship Marketing Co-production
- 48. Evert Gummesson The longer the relationships: 1. More profitable / effective 2. More satisfying for companies & customers
- 50. Creating Social Value and Relationships
- 51. Examples of how to apply the science of behavioural influence
- 52. Status Quo Bias
- 53. EXPLICIT CONSENT OPT IN PRESUMED CONSENT OPT OUT Status quo bias
- 54. Decision Fatigue Do not confront people with too many or complex decisions as they react with inaction
- 55. Too much choice reduces decision making so use ‘choice editing’
- 56. Social Norms
- 57. Social Norms People who eat with one other eat 35% more A group of 4 eat about 75% more Most people prefer product X Everyone is rushing to buy ...
- 59. Social Proof / Social Norms • Robert Cialdini hotel towel reuse experiment. Two messages: • Environmental benefit = 35% • Most people re use = 44%
- 60. Gain and Loss
- 61. Loss and Gain People are very loss averse. A bet: I toss a coin, heads you win € X Tails you lose €100 How much does €X have to be?
- 62. Longer term BENEFITS Turning Into More immediate BENEFITS Short term COSTS Reducing Temporal Discounting
- 64. The Pain of Payment Why do casinos use chips? People paying with cash typically over estimate their spend by 9% Paying with contactless they underestimated by 5% Pre-paid gift cards are one step removed from cash Removing € sign boosts sales by 8% $3.99 considered to be much less than $4
- 65. Perceptions of value can be influenced by the competitor comparisons A £32,000 BMW compared to a £24,000 Ford Mondeo –33% of people think it is good value. When compared to a £119,000 Bentley 47% think the BMW is good value So position as a luxury vehicle not a family vehicle
- 67. Expectancy Theory Wansink’s 2006 brownie experiment 1. Presentation is key 2. Language triggers expectation e.g.: Fresh local succulent beef out sells Fresh beef. 3. Price can increase positive expectation
- 69. Value Attribution • We imbue someone or something with qualities or values • This alters the way we perceive them or it • We are also very reluctant to change our mind • Things and people often live up to the label ! Joshua Bell
- 70. Random acts of kindness and generosity = Relationship building and Affirmation
- 71. Reciprocity The trait of obligation • Reciprocity plays out in most social interactions • Giving someone something or paying forward is a good way to influence their behaviour as it sets up a sense of needing to give something back Moosh Boosh Primacy After Dinner Mints Positive Ending
- 72. Trust & Liking
- 73. Trusted to tell the truth?
- 74. Trust in others members of the community
- 75. Liking and Trust; Pick the right face and voice 1. Open communication style 2. Things in common 3. Complements 4. Active listening
- 76. BRAND A Brand is a Promise backed by a product or service that delivers that promise = Trust + Reduced risk = Liking and Loyalty
- 77. Powerful Brands 1. Build your promise on deep understanding of what people want, need respect and trust 2. Don’t just give facts build a narrative 3. Know how your Brand fits with and enhances the story of peoples lives
- 78. Brand Building is Key: 1. Add consumer perceived value 2. Help with choice making 3. Create difference and distinctiveness
- 79. Priming
- 80. Influencing decision of which wine to purchase 1999 North, Hargreaves and McKendrick
- 81. Offer a salad Make an express line for healthy products Pay cash for desert not accepted on cards Move salad bar away from wall Use glass fruit bowls not stainless steel Hide the ice cream. Close the lid Rename the food Move the broccoli to the start of the queue Shrink the bowl
- 83. Coached, dressed, and positioned to project Authority
- 85. All information goes in through the heart
- 86. Fritz Heider Humans need to develop stories about the world they inhabit to make sense of it The Power of Narrative
- 87. We are story tellers not mathematicians A price cue not the price is what matters A credible story about the good price is what matters e.g. We give you the employees price
- 88. The story: We are cool, we are international, we provide a tailored service + Low cost Big Impact
- 89. Summary
- 90. OK How do we develop programmes that use this understanding?
- 91. Learn as much as you can about behavioural sciences
- 92. Behaviour Social and Economic Factors Environment al Factors Biological Factors Logic Rapid Cognition
- 93. Inform Educate Support Design Control Hug Nudge Shove Smack © Strategic Social Marketing
- 94. Focus on understanding the people we are trying to help More investment in insight, behavioural and programme evaluation
- 95. We need creative flair and risk taking but….. Experiment and track impact
- 96. A more respectful, democratic and empowering way to work
- 97. Professor Jeff French PhD, MBA, MSc, Dip HE, BA, Cert.Ed Jeff.french@strategic-social-marketing.org Many Thanks