4 Easy Ways To Get Started Using Behavioral Economics

There is an abundance of theory in behavioral economics which can seem overwhelming. How can Marketing and Customer experience teams start using it today. In this podcast we give you an overview of the big ideas. To do this, Ryan has developed a framework of the four key principles - a summary of the four principles of human behavior. Ryan calls this the 4R’s.

1: Reference points.

Reference points is the idea that people evaluate almost anything by comparing it to something else. If you want to figure out how people are going to evaluate something you need to figure out where they're starting from.

2: Reason

What are the reasons that people have for choosing or not choosing to use your service? What are the reasons people use to for justify their choice? How does Behavioral economics affect this?

3: Resources

All businesses want their experience to be easy. Customer crave this. But why? The reason is because people have a limited amount of cognitive resources to devote to things, a limited amount of attention, a limited amount of patience. Try to consider that when you are trying to anticipate how people are going to make decisions and how they're going to evaluate an experience.

4: Replacement

This is the idea that people like to get ‘stuff’ done and that includes making decisions. If people need to make some certain evaluation with regards to your experience, your product or service. In fact, evaluating the offering on its merits or are they using some heuristic or some substitution to answer your question?

If you would like to find out how you can implement these in your organization, please listen to the podcast to hear Colin & Ryan explain this further. Or please contact us at www.beyondphilosophy.com .

Follow Colin on Twitter @ColinShaw_CX.