NUDGE me Tender Prepared by : Farshad Alamian

MBA-13-Marketing

Special Thanks : Dr. Asadolahi

Source: Esomar

About Writer :

Small Detail for big Impact

• Car crushed decrease by 38%

Nudge

• What is the Nudge:

Nudge: Improving Decisions about Health, Wealth and HappinessBy : university of Chicago economist Richard H. Thaler and Harvard Law School Professor Cass R. Sunstein.

Cost Benefit vs Emotional

MIND SPACE

NUDGE Support Governments

2009 David Camron Create Nudge Unit

2013 Barak Obama create Nudge squad

Norms & Salience as NUDGE

Using Encourage letter to tax debtor pay tax owed

33% 39%The Payment Rose

An additional solution in policy maker toolboxes Most Public policy aims to change or tailor our behavior to generate good decision for society

1.The Law ( Smoking in public place is forbidden )

2.Financial Incentive ( Increase Tax on Cigarette price )

3.Information ( Smoking kills )

Additional Tool for policy Makers

The French government Challenge

• SGMAP ( Secretariat – General )

is a decree for modernization of French government

1. contributing to maintaining the social Model

2. Restoring public finance

3. Making the economy competitive

Tax return challenge, a deep experience

• In 2012 ,36 million tax return were filed but only 13 million on these were filled online

How we can turning insight into efficient nudge ?

• The behavior change challenge : how to encourage taxpayer to use online service

• Co-Creation with users

• The Nudge lab approach ethnographic inside into effective Nudge in four step

The Nudge lab approach ethnographic inside into effective Nudge in four step

Step1: User journey insights

Step 2 : nudge Lab

How to encourage taxpayer to use more online service for their tax return?

Organize Brain storming session :• On the Client side : site designer , policy brochure creator , Tax campaign coordinator , …

Particularly in the selection phase for final endorsement

• On the agency side : were professional moderate trained methodology , ethnology who conducted the research the serve as input and behavioral expert from the agency .

• On the lead user side :

• At the early stage : how do you help people consider going online?

• During the process : how do you engage and facilitate online use?

• Finally : how do you keep user online and encourage return?

Step 3 : Selection and improvement

• Selection of the nudges to apply according to priority

• Precise description of the condition of execution and determination of success

• Identification of the nudges that would be the subject of a later pre test of generalize application of the population as a whole

Half day Workshop :

to evaluate each participant , of each Pre-selected nudge

A discussion allowing all participant to put forward their points of view

a final selection of nudge to be implemented and of those to be tested prior to implementation

The Nudge Matrix

The different Nudges were position in the Nudge Matrix , this matrix provide a clear and synthetic vision of the nudge portfolio.

The Nudge Matrix

• the target and the behavior each nudge attempts to change

• the behavioral economics principle on which it relies

• the way to implement it

• the potential risks to avoided

• and the conditions required for the nudge to be successful

FIGURE 9 :

Nudge Book Example

Nudge Book Example :• Example : because the current tax form (2013)was implicitly designed

with paper as a difficult , the team revised message and choice architecture the online return becoming the n'1 option , with salience reverting to deadline and messages to suggest online as the default and the extended online filing deadline ( VS paper deadline ) , as the previous year . a media campaign was also orchestrated to drive online filing as the default

( although paper remained an option of course)

See FEGURE 10 –Next page

Text Sent to those who used online tax returns

• Social norm (last year 13.6 million people filed online tax return)

• choice architecture presentation online as a default option

• call to action with salient link to the impot.gouv.fr website and environmental preservation (Ego valorization )

• suggest use of social network to gain visibility

• Not forgetting to the thank people for submitting online tax return

Text Sent to those who used online tax returns

Using Online tax return increased 10% in 2014 VS same 2013 period

Step 4 : Effectiveness Testing

Important

• Nudge is not a solution of all type of problems

• Nudge will not fix major flaws in the marketing mix such as undue pricing or un differentiated offers vs competition

Conclusion Nudge 5 Critical key successes factors

• Ethics

• User experience in situ

• Openness & humility

• Behavioral Evaluation

• Engage Stakeholders