Grand Opportunity

Human Behaviour

Navigating through the technology hype

What is the grand opportunity?

Understanding human behaviour through knowledge gained from pioneering experiments in the psychology of behavioural economics (BE) is changing the way that companies design and market their products and provide their services. These advances enable implementing strategies for influencing positive behaviour, and improving safety and security. Companies are adapting both digital and physical business processes to take advantage of insights from BE to improve customer engagement, satisfaction, and retention. Digital implementations of these insights also make use of advances in technology, such as gamification, AI, and AR/VR. CamIn will help you grab the human behaviour opportunities through new technologies to enter new industries, markets, and implement new business models.
16

Million pound average increase in working capital per gas utility when adopting behavioural economics in the redesign of collection letters to reduce the rate of non-payment by 52%

270

Percent average ROI found for organization's investments in data privacy, though the highest performing organizations were found to have the potential to earn even more.

Which Industries Will Benefit The Most From Human Behavioural Sciences?

Download our latest insight identifying which industries will benefit the most from the behavioural sciences over the next two years.
Which Industries Will Benefit The Most From Human Behavioural Sciences?

Behavioural Economics

Gamification

Humans love games.  This fundamental aspect of human psychology is the basis for gamification – a technique of connecting game-like interactions, based on BE, with business processes. For example, walkers derive health benefits from feedback from their smart watches and fitness wearables can record how many steps a user has taken each day. Apps relying on these records can then encourage users to pursue more ambitious goals in future workouts, as achieving these goals is designed to feel like winning a “game”. Gamified phone apps with structured incentives are also proving very effective for improving outcomes such as employees’ levels of motivation and customer loyalty.

Loss aversion

Loss aversion research shows customers feel the pain of a loss more than twice as strongly as they feel the enjoyment of an equivalent gain.  This psychological finding has deep implications for online commerce – and is part of what drives adoption of digital technologies such as blockchain and enhanced encryption security – technologies for protecting money, transactions, and information.  Effectively communicating the psychological benefits of security technology is an important part of comprehensive digital strategy targeted at consumers.

Consumer Psychology

Nudge Theory

Nudge Theory in BE is the application of small interventions that can consistently direct the consumers behaviour in a beneficial direction.  A classic example is replacing unhealthy snacks with healthier food near the cash register, “nudging” shoppers to make healthier choices.  This paradigm of product placement also applies online. Companies utilizing nudge theory are testing sales strategies with detailed experiments to gather data on consumer buying preferences, which often vary by region, country, and culture.

Bounded Rationality

Bounded rationality (BR) research explains how humans make often with suboptimal decisions due to limited information or tight deadlines. Detailed understanding of BR, based on careful experiments, has provided insights into strategies that can improve decision-making under bounded conditions. One example of BR in action is designing effective messaging and sign placement for influencing crowd behaviour at sporting events and at airports, accounting for visitors’ limited ability to process information in the midst of unfamiliar environments and crowds. Similar concepts apply to optimising users’ online shopping experience, related to how much product information is shown – and at what stage – in addition to the amount of time allotted to completing the purchase.

Data Privacy and Ethics

Anchors

An anchor is a value that individuals assign to a good or service that creates a persistent bias regarding its appropriate price. Anchors become psychological reference points that individuals use when evaluating whether future prices for something seem high or low. For example, consumers “anchor” to a sense of what their personal data is worth, and this influences their decision to grant access. Strategies that respect users’ anchor values for the privacy and security of their data are crucial to launching new lines of business.

General Data Protection Regulation

The General Data Protection Regulation (GDPR) in the European Union establishes legal principles governing data privacy in for healthcare data, for data used in research work, and for data collected from users through their online activity. This set of regulations establishes important requirements for digital interactions between consumers and businesses, and ensuring business processes respect these regulations will be important for all existing and new lines of business.

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