Download LEO Pharma nudging April 2016

THOMAS CHRISTENSEN
• Has designed, helped and performed behavioural
analysis for Miljøstyrelsen, Novo Nordisk and Siemens
• Co founder of Behavioural Economics
Network Copenhagen
• Areas of expertise in The Nudging Company:
Analysis, research and experiment design
BEHAVIOURAL
DESIGN
NUDGING
An attempt to influence people’s choices and
behaviour in a predictable way
… by constructing an
architecture around their
choices, that guides them
in the desired direction.
… without limiting
their choices.
THE DIFFERENCE…
BEHAVIOURAL
DESIGN
NUDGING
Intentions of the
organisation
(freedom to limit choices)
Peoples own intentions
(no limitation of choices)
The theory is the same.
ISN’T NUDGING BASICALLY
JUST(…)
FLOORPLAN OF HUSTON AIRPORT
DUAL PROCESS THEORY
TWO SYSTEMS
TWO SYSTEMS
SYSTEM 1:
• Fast
• Automatic
• Intuitive
• Unconscious
TWO SYSTEMS
SYSTEM 1:
• Fast
• Automatic
• Intuitive
• Unconscious
SYSTEM 2:
• Slow
• Reflective
• Controlled
HOW MANY
ANIMALS OF EACH
KIND,
DID NOAH
MOSESTAKE
TAKE
ON THE ARK?
SYSTEM 2 GETS TIRED…
WHICH IS WHY
SMART PEOPLE
CONSERVE THEIR
ENERGY
CONSEQUENCE#1:
WE THINK IN SHORT-TERM
BENEFITS
• Action films vs. Drama films ?
• Right NOW, I haven’t stopped smoking
CONSEQUENCE #2:
FRAMING TRUMPS SUBSTANCE
Are there more or
less than 5000
traffic accidents
yearly in Europe?
Are there more or less
than 200,000 traffic
accidents yearly in
Europe?
How many resulted
in fatalities?
CONSEQUENCE #2:
FRAMING TRUMPS SUBSTANCE
197,742 died
9,854 died
CONSEQUENCE #2:
FRAMING TRUMPS SUBSTANCE
CONSEQUENCE #3:
ACTION BEFORE OPINION
Random behaviour
+
Rationalisation
=
Opinion
SYSTEM 2
1
SYSTEM 1 AND 2
GIVES US NEW OPPORTUNITIES
TO DISCUSS BEHAVIOUR
IF INFORMATION WAS THE KEY
WE WOULD ALL BE BILLIONAIRES
WITH PERFECT ABS
RATIONALISATION:
!
I am a good
student
!
!
!
Rationalisation
!
!
!
I don’t have the
time to do this
homework
QUIZ
You own a coffee shop and would like to develop
a discount card to attract loyal customers:
Which of the following options would be
most convincing?
A) A discount card where the graphic layout is very
modern and where the 10th cup of coffee is free..
B) A discount card where the 10th cup of coffee is
free – and where you have already crossed the
two first cups of coffee off the card.
C) A discount card where the 8th cup of coffee is free.
#1: CONSISTENCY
Dellande, Stephanie, and Prashanth U. Nyer. "Public Commitment Leads to Weight
Loss." Advances in Consumer Research 36 (2009).
#1: CONSISTENCY
• Sales: Get a ’free chapter’
• Management: New or old strategy?
• Efficiency : Gordon’s restaurant:
”Will you please call, if you have to
cancel the reservation [pause…]”
CONSISTENCY : WE DO, WHAT WE
COMMIT OURSELVES TO
Therefore, you must get your recipient to
commit. Better to ask for something small, than
something big, however, make sure that they
commit themselves orally, in writing or in
public. You can also show them, how they have
already started.
QUIZ
You are sending a letter to tax debtors. Which kind
of communication would be the most efficient if
you want them to pay the taxes they owe back?
A) Write that they will get a fine, if they do not pay the
taxes back immediately.
B) Write that most people pay their taxes back when
they are asked to do so.
C) Write about all the good things that taxes are used
for, i.e. schools, hospitals, police and so forth.
#2: SOCIAL PROOF
Tax debts and Social Proof
Team, Behavioural Insights. "Applying behavioural insights to
reduce fraud, error and debt." Cabinet Office, London (2012).
#2: SOCIAL PROOF
• Campaign: Getting people to turn off
the lights
• Enviroment: Getting people to reuse towels
SOCIAL PROOF:
‘WE DO LIKE OTHERS’
Therefore, you must communicate what the
norm is and present it in a way, so that I can
identify with it.
QUIZ
What’s the best selling fruit globally?
A) Apples
B) Bananas
C) Oranges
#3: PATH OF LEAST
RESISTANCE
Denmark: ~86% voted at the ‘folketingsvalg’
USA: ~57% voted at the presidential election
#3: PATH OF LEAST RESISTANCE
• Sustainability: Insulating ceilings
• Campaigns: Mobile voting bus
• Consumer information: EU energy
PATH OF LEAST RESISTANCE:
WE DO WHAT SEEMS EASIEST
Therefore, you must always make sure to
remove as much friction as possible between
your recipient and the desired behaviour - and
lessen both the physical and the mental burdens
the desired behaviour entails.
THERE IS NO MAGIC SOLUTION…
METHODS
U
UNDESIRABLE
BEHAVIOUR
BARRIERERS
DESIRABLE
BEHAVIOUR
HOW TO FRAME THE DESIRABLE
BEHAVIOUR:
Be precise:
• Time
• Place
• Actions(what do you want people to do?)
POOR FRAME
Employees must declare their holiday on time .
BETTER FRAME
80% of employees must report their holiday seven days before the deadline.
The remaining 20% must report one day before or on the day.
Everyone should do it via the intranet, i.e no mails, text messages etc.
QUESTIONS?
Thomas Christensen
[email protected]
Tel. 40 80 51 06