150 teachers in Chicago were either offered a cash incentive up front or after their students’ math test, with better results leading to more money. Subject to results, the money-up-front group would suffer deductions for unmet targets to create a feeling of loss aversion.
Teachers receiving money up front were found to have much better results than those rewarded at the end.
Increase conversion with trial offers. Though some consumers might not be willing to pay the market price for your product, they may pay the market price to avoid it being taken away.
Offer delayed payments to shift consumers’ judgements from paying to get the product to paying to avoid losing it. For instance, a month delay in paying subscription fees. This means that any extra budgetary cost is then re-estimated as a question of how it can be fitted into an existing budget.
Replace faulty products immediately with an identical or superior model (Novemsky & Kahneman, 2005). Doing it quickly will limit the pain of loss aversion, which builds over time (Strahilevitz and Loewenstein, 1998).
23,946 cafe hot drink sales were studied over 14 weeks. For the last 4 weeks, customers were shown a sign stating that “guests are changing their behavior and more and more are switching from the to-go cup to a sustainable alternative. Take part in this: choose a sustainable cup and help to protect the environment.”
Results showed that customers used 17.3% more reusable mugs over to-go cups after dynamic nudging.
Drive change by showing relative growth.
New behaviors tend to start small, so stating absolute percentages isn’t persuasive. Instead, reframe the change as a dynamic movement increasing over time to create a means to 'pre-conform' with this inevitable future (Sparkman & Walton, 2017).
...where new behaviors tend to become the norm once at least a quarter of a group adopt them. Boost change success by recruiting a group of change-makers to create, broadcast and maintain this initial effort.
Combine existing financial nudges with dynamic norms.
The cafe in the study was already charging €0.10 for a takeaway cup but they were able to improve behavior even further with this cheap, efficient and new nudging method...and so can you.
No results right now...
...but we're adding all the time
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