We recommend nudges and other strategies to encourage customers to better decisions.

ABOUT BEHAVIORAL ECONOMICS 

MAP YOUR CUSTOMER JOURNEY

We test nudges to ensure they will create a measurable impact on ROI.  

What is BE?


Unlike traditional economics, which assumes that people make decisions with the logic and rationality of Mr. Spock, BE combines psychology and economics to show how people make decisions in real life. When faced with complex financial choices, people tend to act more like Homer Simpson than Mr. Spock. They get swept away by emotion, they rely on intuition and hunches, and they take mental shortcuts that lead them astray.

Behavioral scientists have discovered the existence of dozens of mental blind spots, known as cognitive biases, that cause people to make irrational decisions. Examples of these cognitive biases include:


  • Status quo bias. When faced with difficult decisions, inertia sets in and people tend to stick with the status quo.
  • Loss aversion. People dislike losing twice as much as they like winning, and they avoid selling items at a loss.
  • Present bias. People tend to prefer to receive smaller payments now than significantly larger payments in the future.
  • Choice overload. When faced with too many choices, people tend to become overwhelmed and freeze.


Over time, behavioral scientists have developed subtle cues -- nudges -- to encourage consumers to overcome these cognitive biases and make better choices. Nudges are a means of altering behavior in predictable ways by making subtle suggestions, using indirect incentives and by framing choices in ways that will encourage better decision making. Nudges should be easy and cheap to avoid, without making any choice mandatory.



NUDGES AND OTHER SOLUTIONS

BEHAVIORAL ECONOMICS

We use Behavioral Economics to take your product and services to the next level. 

We use BE to map your customers' journey and conduct a comprehensive service audit.

LAB RESEARCH and EXPERIMENTATION