>>Nudge Up! Nudging for a stronger, healthier, wealthier business

BATH, U.K. - Jan. 14, 2015 - PRLog -- This press release is directed towards business leaders who want to take advantage of both significant nudges and marginal gains to improve the all round performance of the company. This includes CEO’s, CFO’s, Sales Directors, Marketing Directors as well as Sales and Marketing Executives. The following sections indicates why nudges work, real life nudges in action and the last section lists nudges and types of nudges that can help businesses become stronger, healthier and wealthier. The total possible improvement is potentially huge, whether it is in revenue, cash flow, marketing responses or employee satisfaction.

Why Nudges Work
The reasons why nudges work can be found in behavioural economics theory, psychology research and practical examples. Some of the most well know publications, written by pre-eminent psychologists, have been used for reference, including; Brainfluence by Roger Dooley, Influencing With Integrity by Genie Z. Laborde, Secrets of Power Persuasion by Roger Dawson, How to Have a Beautiful Mind by Edward de Bono, Nudge by Thaler & Sunstein, Free by Chris Anderson, Switch by Chip & Dan Heath, The Power of Habit by Charles Duhigg, The Chimp Paradox by Prof Steve Peters, Thinking, Fast and Slow by Daniel Kahneman.

Real Life Nudges
- The Driver Vehicle Licensing Agency and the National Health Service in the UK has been boosting numbers agreeing to go on the organ donor register. When people renew or apply for a new driving license online it is compulsory to answer the questions on whether they want to be an organ donor, yes or no. (Easy)

- The sending of personalised text messages to people who owed money to the courts increased payments. If no text was sent, only 5 per cent paid. Texts which were not personalised resulted in 23 per cent of people paying the fines, while 33 per cent of those people who received a personalised text paid. (Conform)

- Reducing plate size and providing social cues on food consumption led to 20% less food waste in a hotel restaurant chain. An example of the latter is a salient sign saying “Welcome back! Again! And again! Visit our buffet many times. That’s better than taking a lot once”. (Perception)

- McDonald’s policy of asking whether you want to super-size your order. (Easy, Emotion)

- 8 out of 10 cats prefer Whiskas. (Conform)

- During the 2010-11 Chicago school year teachers participated in a pay-for-performance program with “gain” and “loss” treatments. The “gain” group received financial incentives at the end of the year in the form of bonuses linked to student achievement. Those teachers in the “loss” group were paid a lump-sum in advance and asked to give back the money if their students did not meet performance targets. This resulted in increases in math test scores for the “loss” condition by an equivalent of increasing teacher quality by more than one standard deviation. The “gain” treatment yielded statistically insignificant results. (Emotion/Instinct)

- Slowing traffic approaching a roundabout by making lines across the road get closer together as the junction gets nearer. (Perception)

- Etching of the image of a housefly into the men’s room urinals at Amsterdam’s Schipol Airport, which is intended to ‘improve the aim’ apparently reduced ‘spillage’ by 80%. (Emotion/Instinct)

- A social conformity nudge is the “Don’t mess with Texas” campaign which reduced litter by 72% across the state over its first six years compared to standard litter signs or ‘Take your litter home’ campaigns, and approximately 95% of Texans are now familiar with this slogan. (Conform)

- House pricing studies show that if a house is priced precisely at £296,300 it would sell quicker and closer to the asking price than if priced at £300,000. (Perception)

- Commuters often have the choice to take the escalator or the stairs. At some metro stations the stairs have been made attractive eg piano keys, or colourful or even a direct message highlighting the health benefits. As a result of this change in the environment, 66% more commuters at these stations chose the stairs over the escalator. (Rationale)

Bringing Social Nudges into the Business World
Most businesses have several nudges in place and most businesses can benefit from adding a few key nudges or removing detrimental ones. There are Behavioural Economics’ Consultants and Business Consultants that can help with a review of a company’s potential for improvements by using nudge techniques in leadership, sales, marketing and finance. These can make ‘tens of percent’ improvement in revenue, cash flow, marketing responses or employee satisfaction.

The nudges that make businesses continue to stand out are the marginal gains, the 1% nudges. Again, several are likely to be in place already. Adding a few 1% nudges each month will aid continual business development.

Reviewing and implementing nudge techniques provide an opportunity to develop a stronger, healthier, wealthier business in the short term and into the future.