the surge toward a behaviourial approach to digital distribution by melaina vinski
TRANSCRIPT
![Page 1: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/1.jpg)
PwC’s Digital Services
The Surge Toward A Behavioural Approach to Digital Distribution
How a behavioural framework can help insurers sell directly
to customers
September, 2017 | Online Distribution Symposium
![Page 2: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/2.jpg)
![Page 3: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/3.jpg)
![Page 4: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/4.jpg)
![Page 5: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/5.jpg)
![Page 6: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/6.jpg)
![Page 7: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/7.jpg)
![Page 8: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/8.jpg)
![Page 9: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/9.jpg)
PwC’s Digital Services
![Page 10: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/10.jpg)
PwC’s Digital Services
![Page 11: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/11.jpg)
PwC’s Digital Services
Behavioural science helps us interpret the data.
Data helps us create targeted solutions for change.
![Page 12: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/12.jpg)
PwC’s Digital Services
The Behavioural Economics Toolkit
![Page 13: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/13.jpg)
PwC’s Digital Services
The Behavioural Economics Toolkit
![Page 14: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/14.jpg)
PwC’s Digital Services
It all starts with the brain.
![Page 15: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/15.jpg)
PwC’s Digital Services
It is the epicenter of what we value, why we behave the way we do, and
how we make decisions.
![Page 16: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/16.jpg)
PwC’s Digital Services
The human brain operates with a very limited processing capacity
![Page 17: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/17.jpg)
PwC’s Digital Services
![Page 18: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/18.jpg)
PwC’s Digital Services
![Page 19: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/19.jpg)
PwC’s Digital Services
As a result, we rely on mental shortcuts to help us navigate everyday life
![Page 20: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/20.jpg)
PwC’s Digital Services
Applied Behavioural Economics is the application of how mental shortcuts lead to biased and
predictable patterns in decision making, attribution of value, judgement, and behaviour.
![Page 21: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/21.jpg)
PwC’s Digital Services
Applied Behavioural Economics is the application of how mental shortcuts lead to biased and
predictable patterns in decision making, attribution of value, judgement, and behaviour.
![Page 22: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/22.jpg)
![Page 23: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/23.jpg)
![Page 24: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/24.jpg)
Overload
ConfidenceFuture
Discounting
![Page 25: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/25.jpg)
Overload
ConfidenceFuture
Discounting
![Page 26: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/26.jpg)
Our tendency to be put off by a lot of information, whether it is complex or not.Overload Biases
![Page 27: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/27.jpg)
Overload
Do you ever read the terms and
conditions when you download an app?
![Page 28: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/28.jpg)
Information Overload
How long does it take you to choose a
movie on Netflix?
![Page 29: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/29.jpg)
People are more likely to purchase an item when offered a limited array of choices –and are more satisfied with their selections.
Overload
Use Case no.1
![Page 30: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/30.jpg)
Restructuring a product around a limited number of options with simple, meaningful attributes leads to a boost in sales.
Overload
Use Case no.2
![Page 31: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/31.jpg)
Overload
Use Case no.5 Expedia lost
$12 million per yearby asking one additional question (company name)
![Page 32: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/32.jpg)
Marketo found that a few non-essential fields were inflating their cost per lead by ~25%
Overload
Use Case no.6
![Page 33: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/33.jpg)
![Page 34: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/34.jpg)
Choice Overload
Use Case no.3
61% of employees participated.
75% of employees participated.
![Page 35: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/35.jpg)
Providing families with auto-filled information from their tax return college enrollment increased by 8%
Friction
Use Case no.4
![Page 36: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/36.jpg)
Making organ donation the default option increased donation sign-up rates by 148% in Ontario
Defaults
Use Case no.5
![Page 37: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/37.jpg)
Makes it difficult to perceive and understand the value proposition of the product.
Overload Biases
![Page 38: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/38.jpg)
Overload Biases
Leads to analysis paralysis, drop-off, or a rush through a process.
![Page 39: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/39.jpg)
Overload Biases
Reduce the number of optionsMaking the difference obviousReduce the clutterLeverage defaults
![Page 40: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/40.jpg)
Overload
ConfidenceFuture
Discounting
![Page 41: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/41.jpg)
Overload
ConfidenceFuture
Discounting
![Page 42: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/42.jpg)
Our tendency to be put off by things that we are not familiar with, or that we don’t know much about.Confidence Biases
![Page 43: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/43.jpg)
Overconfidence
Are you an above average driver?
90%
![Page 44: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/44.jpg)
Overconfidence
Are you an above average leader?
70%
![Page 45: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/45.jpg)
Overconfidence
Are you an above average athlete?
60%
![Page 46: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/46.jpg)
Overconfidence
Doctors that express complete certainty in a diagnosis were wrong 40% of the time
Are you absolutely sure?
![Page 47: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/47.jpg)
![Page 48: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/48.jpg)
Social Guidance
Use Case No. 6
77%88%
![Page 49: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/49.jpg)
35% of Amazon’s revenue comes from the recommendation engine
Social Guidance
Use CaseNo. 7
![Page 50: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/50.jpg)
Makes people feel uncomfortable or uneasy with their decision.
Confidence Biases
![Page 51: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/51.jpg)
Confidence Biases
Leads to analysis paralysis, drop-off, or the dialing of the help center.
![Page 52: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/52.jpg)
Confidence Biases
Make it easy to understandShow what others havepurchasedDemonstrate security
![Page 53: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/53.jpg)
Overload
ConfidenceFuture
Discounting
![Page 54: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/54.jpg)
Overload
ConfidenceFuture
Discounting
![Page 55: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/55.jpg)
Our tendency to overweigh rewards now, and discount the impact of our decisions on our future self.
Future Discounting Biases
![Page 56: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/56.jpg)
Future discounting
Do you go over your monthly data
allowance?
![Page 57: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/57.jpg)
![Page 58: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/58.jpg)
Social Persuasion
Use CaseNo. 8
Including social norms on tax forms increased compliance with due dates by 15%
9/10 people pay their taxes on time
![Page 59: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/59.jpg)
Users who saw their savings wellness scores were lower than their peers saved an average of $600
extra into their savings account
Social Persuasion
Use CaseNo. 10
![Page 60: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/60.jpg)
“How do I compare?” tool increased retirement contributions by 25%
Social PersuasionSocial Persuasion
Use CaseNo. 11
![Page 61: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/61.jpg)
![Page 62: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/62.jpg)
SalienceShowing future prices of household staples like milk and utilities have prompted 60%more people to investigate retirement options and contribute to retirement
Use CaseNo. 12
![Page 63: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/63.jpg)
![Page 64: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/64.jpg)
SalienceIndicating the amount that by which borrower's monthly payment would increase if they did not recertify lead to an 8% increase in certification rates
Use CaseNo. 14
![Page 65: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/65.jpg)
Makes people put things off or procrastinate.
Future Discounting
![Page 66: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/66.jpg)
Future Discounting
Leads to drop-off and a failure to complete the process.
![Page 67: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/67.jpg)
Future Discounting
Make it easy to complete
Benchmark relative to others
Make the future salient
![Page 68: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/68.jpg)
Overload
ConfidenceFuture
Discounting
![Page 69: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/69.jpg)
PwC’s Digital Services
Applied Behavioural Economics is the application of how mental shortcuts lead to biased and
predictable patterns in decision making, attribution of value, judgement, and behaviour.
![Page 70: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/70.jpg)
PwC’s Digital Services
Companies that apply the principles of behavioural economics outperform their peers by 85% in sales growth and 25% in gross margin
GALLOP
![Page 71: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/71.jpg)
![Page 72: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/72.jpg)
![Page 73: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/73.jpg)
![Page 74: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/74.jpg)
![Page 75: The Surge Toward A Behaviourial Approach to Digital Distribution by Melaina Vinski](https://reader034.vdocuments.mx/reader034/viewer/2022051710/5a648c977f8b9a7c568b4aef/html5/thumbnails/75.jpg)