Category

All

What is Behavioural Design

By All, Behavioural Science Insights, Citizen Behaviour, Customer Behaviour, Employee behaviour, Personal Behaviour

This blog post is an extended introduction to Behavioural Design. You will get a clear idea about what it is, how you can use it in your professional and personal life to influence minds and shape behaviour, and what you could do to learn more about it. Moreover, this blog post is the perfect entry to most other blogposts we published on the SUE Behavioural Design website.

 

1. Behavioural Design is about influence

How do you influence minds and shape behaviours? How do you change other people’s, as well as your behaviours? How do you help people to make better decisions? Isn’t it strange that the majority of all of our behaviours and communication aims at influencing other people? Yet, at the same time, we have no clue about the principles and laws that govern influence?

 

Behavioural Design is a systematic understanding of how people think and how they make decisions. This understanding forms the basis of thinking about interventions that lead to behavioural change. Maybe you want to influence the behaviour of your partner or children. You might want to influence your colleagues or managers. Some people like to develop a healthy habit for themselves or want to live a more sustainable life. Maybe you want to influence customer behaviour or win elections. No matter what the subject is, you can all think of them as a behavioural design challenge.

 

So what is Behavioural Design? The most pragmatic definition of Behavioural Design we came up with so far is the following:

 

Behavioural Designers combine Psychology, Design, Technology, and Creative Methods to find out why people do the things they do and to figure out through experimentation how to activate them to change their behaviour.

 

2. Behavioural Design is a method

The best way to think about Behavioural Design is to think of it as the combination of Design Thinking with the Science of Influence. Design Thinking is the method through which designers solve problems. Designers start with empathy. Through interviews and observations, they try to “fall in love with the problem”: Why do people do what they do and where could we spot opportunities for improvement? This insight phase forms the groundwork for creativity. First, designers develop as many ideas as possible, and then they prototype the most promising ones. They take the prototypes back to the real world and test them with real people to learn and observe how the prototype influences the targeted behaviour. Design Consultancy Ideo, the godfathers of Design Thinking, explain the process like this:

When you combine the method of design thinking with behavioural science, you will get design thinking on steroids or Behavioural Design Thinking. Because a better understanding of human psychology you will get:

1) Better insights into why people do what they do;
2) Better ideas on where to look for solutions;
3) Better prototypes, because you will have a much sharper understanding of what specific behavioural outcome you’re designing for.

At SUE the essence of what we do is to train the Behavioural Design Method© at our Behavioural Design Academy and at in-company training and we run the Behavioural Design Method© in Behavioural Design Sprints together with our clients.

More about Behavioural Design as method:

Would you like to power up your team or project with behavioural intelligence?

Feel free to contact us. We are happy to tell you more about our consultancy or academy. Helping you innovate, transform or grow levering insights from behavioural science in practice.

Contact us

No worries, no strings attached!

3. The ethics of Behavioural Design

Behavioural Design is dark wisdom. The difference between positive influence and manipulation is a very fragile line. In the end, we have to be aware that Behavioural Design is about using deliberate action and techniques to influence the behaviour of the other in the direction you want.

The problem is that those who want to design for good quite often feel bad about using dark forces. Whereas those who use this dark wisdom to manipulate and mislead are usually much more motivated, advanced, and have fewer scruples about its application. Think about how extreme-right populists exploit fear and uncertainty, or think about how technology companies use our vanities and our desire for social recognition and belonging to the extent that it leads to (social media) addiction.

The world of interaction design is full of “dark patterns“, which are manipulative ways to present choices to us in such a way that they manipulate us into making a specific decision, whether we want it or not.

 

Doctor Evil

At SUE, we are very sensitive to this ethical component. We even encoded it in our mission. The SUE mission is “to unlock the power of behavioural psychology to help people make better decisions in work, life and play”. Our point of departure for designing interventions for behavioural change always starts with the question, “How might we help people to make better choices? Moreover, how could we create products, services, and experiences to contribute to helping people achieve their goals or dreams? Our commitment to this mission is sacred, even to the point that we refuse to accept work that doesn’t match this mission. You can find more about this way of thinking below at “5. Outside-in Thinking“.

More on the ethical side of Behavioural Design:

4. Behavioural Design is about designing choices

Multiple levels of influence
In a certain sense, the term ‘Behavioural Design’ is a little bit misleading. Behavioural change is the outcome we aim for when we design an intervention. When we want to achieve this outcome, we need to create interventions on multiple levels at the same time:

  1. Design attention: How do you make sure something catches people’s attention?
  2. Trigger curiosity: How do you get people to invest time and mental energy to learn more about what you want from them?
  3. Change the perception: how do you get something to stand out as the attractive option between other choices? How do you design the desired perception?
  4. Design the experience: How do you get someone to have a positive feeling? How can you reduce stress or uncertainty?
  5. Trigger the behaviour: How do you trigger the desired behaviour? How can you increase the chance of success that people act upon your trigger?
  6. Change habits: How can you get people to sustain the behaviour? Most behaviours require much more than a one-time action. Think about saving, living healthy, exercising, recycling, collaborating, etc.

Thinking fast and slow

This simple list of influence levels teaches us that:

Behavioural Design is all about how we design choices and how we present those choices.

Behavioural Design has everything to do with human decision-making and how the brain works. The cornerstone of human decision-making is the masterpiece “Thinking Fast and Slow” by Kahneman and Tversky. This book – awarded with the Noble Memorial Prize in Economic Sciences in 2002 – is the fascinating journey of the collaboration between two Israeli psychologists and their discoveries of how the mind works. This book is the ultimate work on thinking about thinking.

Kahneman and Tversky discovered that about 96% of our thinking is automatic and unconscious. Our brain is making most of the decisions for us by taking shortcuts – which they call heuristics -, with the goal of not having to invoke the 4% bandwidth of our slow, rational brain. In a way:

Influencing behaviour comes down to helping people to decide without having to think. Because the more we need to think about something, the more stress we get, the less we end up making choices.

Since 2018, we now have a second psychologist in the ranks of noble prize winners. Richard Thaler built upon the work of Kahneman and Tversky and zoomed in on how to make use of System 1-System2 thinking to nudge people into better decision-making in wealth, health, and happiness.

 

Our hard-wired tendency to persuade

When it comes to our attempts to influence minds and shape behaviours, our biggest fallacy is that we always tend to persuade the other with rational arguments. The problem with persuasion is two-fold:

  1. Persuasion evokes system 2-thinking, and we don’t like that. When you try to persuade someone, you want them to think about your argument. Thinking complicates things.
  2. System 2 is the little slave of system 1: we only accept rational arguments or facts when they align with how we already think about matters. You can only persuade someone who’s already convinced.

The real challenge is to make a decision making extremely easy. More about designing choices:

Want to learn how to design behaviour?

Join our two-day Fundamentals Course and master a hands-on method to use behavioural science to develop ideas that change minds and shape behaviour.

Check out the course

Join the 1.500 forward-thinking professionals who already graduated!

5. Behavioural Designers think ‘outside-in’

When we try to influence minds and shape behaviour, the most common mistake we make is to think inside-out. We take the benefits of our product or service as our point of departure, and we try to figure out how we could pitch those benefits so that people would realize the value of what we have to offer. Behavioural Designers work the other way around.

We take the human behind the customer as our focal point, and we try to figure out what this human needs to be successful.

Which anxieties, doubts, prejudices or bad habits he holds stand in the way of embracing the desired behaviour or which pains or frustrations we could solve for him.

The SUE | Influence Framework©

We developed the SUE | Influence Framework© as a tool to do outside-in thinking systematically,. This model brings all the forces to the surface that influence the behaviour of the people for whom we need to design interventions. The Influence Framework© consists of five questions we need to answer to understand why people do what they do and how to get them to act:

  1. Job-To-Be-Done: What is the underlying goal for which people would have to embrace the new behaviour? How might we align the desired behaviour with goals that matter to them?
  2. Pains: What are possible frustrations and pains in their current behaviour, for which we need to come up with a solution?
  3. Gains: What are the benefits we have, compared with their current solutions?
  4. Anxieties: What are anxieties, doubts, prejudices or other barriers that prevent someone from embracing the new behaviour?
  5. Habits: Which habits keep them locked in their current behaviour?

Finding the answers to these questions will provide you with a blueprint of where to spot opportunities for behavioural change. In this video, you can find a brief explainer of the SUE | Influence Framework©.

 

More about outside-in thinking:

6. Behavioural Designers work with principles from the science of influence

The next step in the Behavioural Design Method© is about turning a deep understanding of the forces that explain people’s behaviours, into ideas for behavioural change.  These are two different games. Whereas the SUE | Influence Framework© uncovers the unconsciousness of people, is this part about applying principles from the science of influence to come up with solutions on how to change behaviour. We have developed a helpful tool for this: the SUE | SWAC Tool©:

It is foremost a very easy-to-use tool. It explains which four pieces of the puzzle you need to solve to create a context that will persuade someone into doing something and to have them keep doing it. What makes the tool so easy to use in practice, is that anytime you want to design for behavioural change, all you have to do is ask yourself four simple questions:

  1. How can we make sure someone WANTS to perform the new behaviour?
  2. How can we make sure someone CAN perform the new behaviour?
  3. How can we SPARK new behaviour at the moments that matter?
  4. How can we activate this new behaviour AGAIN and again?

 

When the new behaviour does not happen, at least one of those four elements is missing. The most important implication of this is that by using the SUE | SWAC Tool© as a guide you can quickly identify what stops people from performing the behaviours that you seek.

If a sufficient degree of capability (CAN) to perform a behaviour is matched with the willingness (WANT) to engage in that behaviour, all that is then needed for the behaviour to occur is to set someone into action (SPARK) at the Moments that Matter.

Maybe you notice that in the tool it says moments that matter. Not one moment, but moments. As we learned, behavioural change doesn’t happen overnight. Most of the times someone needs to be reminded of the desired behaviour more than once for it to happen in the first place. Furthermore, behaviour becomes easier when repeated. Therefore, we have to make sure we SPARK someone AGAIN and again to activate the desired behaviour. So, you need to design several interventions at multiple moments that matter. In practice your intervention strategy will look something like this:

The objective of most intervention strategies is to not only to change behaviour, but to change this new behaviour into a routine behaviour (a habit), so the new behaviour will stick.

Often your desired behaviour is new behaviour for people and that’s why it is important to spark behaviour AGAIN and again. Only then the behaviour will take place, as illustrated above as the BEHAVIOURAL CHANGE THRESHOLD. When your objective is to design repeat behaviour, it almost goes without saying that you have to make sure the desired behaviour is performed repeatedly. If you can make someone perform new behaviour over and over AGAIN, it can become automatic.

7. Behavioural Designers research, prototype, test

The more familiar you get with how the brain works and how influence works, the more you become aware that human behaviour obeys a different kind of logic than formal logic. Rory Sutherland calls this “psycho-logic” in his brilliant book Alchemy.

The way people make decisions is highly context-sensitive. These decisions are full of stories they tell themselves and full of irrational beliefs they hold. Furthermore, even the slightest difference in how something is framed can dramatically affect how people perceive the meaning. When an English native speaker says they think something is “interesting”, it usually means precisely the opposite. Whereas a non-native Dutch audience would think “interesting” means what they think it means.

The importance of doing the research yourself

That’s why research and prototyping are so important. Before you come up with an idea for behavioural change, you first need to fall in love with the problem. You observe or interview humans and try to put yourself in their shoes. You’ll be surprised about how many thoughts and beliefs you hold are projections of your limited worldview onto the world of the target audience you want to influence.

Prototyping and testing are all about finding out which variation of your intervention has the highest potential to design perception, attention, curiosity, experience, behaviour or habit. Even with the clearest of insights, you can still develop an intervention that ultimately misses its desired effect. What you thought your intervention was supposed to trigger sometimes triggers the exact opposite.

More about prototyping and testing:

Want to shape behaviour and decisions?

Then our two-day Fundamentals Course is the perfect training for you. You will learn the latest insights from behavioural science and get easy-to-use tools and templates to apply these in practice right away!

Download the brochure

Go ahead, it’s completely free of charge!

8. Domains of Behavioural Design

The number of applications for Behavioural Design is endless. Because in the end, most of the things we do as humans aim at influencing the behaviour of others. You can apply it from managing teams to the design of products. Or from getting people to buy products to changing the way they perceive a service or experience. And from the creation of financial habits, personal habits and healthy habits till the raising of children. At SUE, we’re particularly fascinated by six specific domains for behavioural change:

  • customer behaviour (product, marketing, sales)
  • citizen behaviour (government/society)
  • financial behaviour (financial independence)
  • voter behaviour (politics and government)
  • self-improvement (personal development)
  • team-behaviour (organisational design)

Most of our blogs and our weekly newsletter “Behavioural Design Digest” is about one of these topics.

 

9. Start to learn more about Behavioural Design

Now you have a deeper understanding about what Behavioural Design and how you can apply the Behavioural Design Method to influence minds and shape behaviour, there’s a couple of next steps you can take to learn more about the method:

  1. Subscribe to our weekly newsletter Behavioural Design Digest, in which we take a closer look at how influence works in daily life.
  2. Subscribe to one of the upcoming editions of our Behavioural Design Academy courses and master the SUE | Behavioural Design Method© to create next-generation, people-centred products, services, campaigns or policies.
  3. Book in-company training for your team and learn the method while applying it to a critical business challenge for your organisation.
  4. Hire SUE to run a Behavioural Design Sprint to fast-track your innovation, transformation or growth by leveraging behavioural science to develop people-centred products, services, campaign or policies with an evidence-based approach.
  5. Book SUE for a keynote or workshop (contact us).
  6. Check or frequently asked questions and discover answers to questions you didn’t even know you had.

How do you do. Our name is SUE.

Do you want to learn more?

Suppose you want to learn more about how influence works. In that case, you might want to consider joining our Behavioural Design Academy, our officially accredited educational institution that already trained 2500+ people from 45+ countries in applied Behavioural Design. Or book an in-company training or one-day workshop for your team. In our top-notch training, we teach the Behavioural Design Method© and the Influence Framework©. Two powerful tools to make behavioural change happen in practice.

You can also hire SUE to help you to bring an innovative perspective on your product, service, policy or marketing. In a Behavioural Design Sprint, we help you shape choice and desired behaviours using a mix of behavioural psychology and creativity.

You can download the Behavioural Design Fundamentals Course brochure, contact us here or subscribe to our Behavioural Design Digest. This is our weekly newsletter in which we deconstruct how influence works in work, life and society.

Or maybe, you’re just curious about SUE | Behavioural Design. Here’s where you can read our backstory.

sue behavioural design

The SUE Influence Framework© explained

By All, Behavioural Science Insights, Citizen Behaviour, Customer Behaviour, Employee behaviour, Personal Behaviour

The SUE | Influence Framework© is a powerful mental model we developed at SUE to analyse the forces that shape behaviour systematically. The framework will provide you with all the human insights you need to develop ideas for behavioural change. A deeper understanding of the forces that prevent people from change or boost behavioural change is essential to influence minds and shape behaviour. In this blog post, we explain the model step-by-step and illustrate it with lots of examples.

 

1. How does influence work?

For a complete overview of the essence of behavioural design, I want to urge you to read our blog “What is behavioural design“. For this blogpost, it suffices to understand that you need three ingredients for successful behavioural change: 

  1. Understand how people think and how they make decisions. (cognitive psychology)
  2. Know how you can analyse the forces that shape people’s behaviour (SUE | Influence Framework©)
  3. Learn how you can come up with ideas for behavioural change 

One of the biggest misconceptions of behavioural design is that it’s limited to this third ingredient. Think about all the persuasion techniques in the field of interface design and UX to boost online sales. Booking.com has turned these techniques into an art form

However, if you don’t consider what happens inside the human mind you try to influence, you can use as many persuasion tactics as you want; you’re not going to be successful. 

Let me illustrate this with an example: You can use all the scarcity, authority, social proof in the world to persuade me to make my next city trip with Flixbus. But as long as you haven’t addressed my (probably irrational) prejudice that travelling by bus coach will be a social nightmare, full of annoying people, my brain will stay locked for every attempt to change my behaviour.

Flixbus

 

2. The forces that shape behaviour

The best way to think of the SUE | Influence Framework© is to think of it as a tool that brings the dynamic forces to the surface that shape behaviour. With this framework:

 

You will understand why people do the things they do and what prevents them from changing their behaviour.

Understanding these forces helps you to spot opportunities for behavioural change. Only when you have armed yourself with these opportunities you can start to come up with ideas. 

To illustrate this with the example from above. Only when you consider that I have anxieties, doubts and prejudices that prevent me from travelling by coach will you have the proper insight to come up with ideas to influence my decision-making. You will ask yourself how we might take away the prejudice that cheap coach travel equals a social nightmare. 

If you want to design a successful strategy for behavioural change, you will have to work outside-in. You start with learning what happens inside people’s minds, and you adapt your intervention to this understanding. 

Would you like to power up your team or project with behavioural intelligence?

Feel free to contact us. We are happy to tell you more about our consultancy or academy. Helping you innovate, transform or grow levering insights from behavioural science in practice.

Contact us

No worries, no strings attached!

The SUE | Influence Framework© has three parts, with a total of seven elements. We will delve into these three parts below.

  1. Part 1: Current and Desired Behaviour 
  2. Part 2: The Job-to-be-Done
  3. Part 3: Pains, Gains, Comforts and Anxieties

3. Current and Desired Behaviour 

The best way to think of behavioural change is that you need to have someone (or yourself) switch from a current to desired behaviour. This sounds obvious but is actually quite challenging. Because people need to stop doing the things they do and start doing something new. Stopping is hard because your current behaviour is full of comforts. You don’t need to think about it, and your behaviour is more than often driven by habits that are difficult to control. 

Furthermore, there are several difficulties associated with new behaviour too: Am I able to do this? Do I want it? Do I trust it? Do I get it? Can I afford it? What will others think of me? 

You immediately sense that, if you want to get someone from A to B, you will have to deal with several forces at work that lock us in our current behaviour and prevent us from switching to the desired behaviour. The SUE | Influence Framework© is nothing more or less than a tool to uncover these forces.  

4. The Job-to-be-Done

If you want to understand why people do the things they do, then the Job-to-be-done framework by Clayton Christensen is essential. In a famous Harvard Business Review paper, Christensen argues that people “hire products and services” for a job that arises in their life. Understanding the “job” or “task” is the key to understanding what motivate people to do the things they do. If you want to know how to get more people to buy milkshakes in a fast-food restaurant, you need to understand the job-to-be-done for which people would come in and “hire” a milkshake. In the famous lecture below, Christensen argues that most people who buy milkshakes at a fast-food restaurant buy them because they have a long and tedious drive to work. They want something to fill their stomach while keeping the commute interesting. The milkshake does this job better than any other product. It keeps you busy for at least 10 minutes, it doesn’t crumble all over you, and you can easily keep it in your hand while steering the car. 

 

Job-to-be-Done thinking unlocks a deeper understanding of the human behind the customer.

A while ago, we discovered in a Behavioural Design Sprint we did for a health tech company that the real Job-to-be-done for people with diabetes is to live everyday life. They want to be reminded as little as possible by their disease. People with diabetes look at every product and service through the prism of this Job-to-be-done. The unconscious question they ask themselves is: Does this product help me to approach my Job-to-be-Done to live a care-free life in which I am bothered as little as possible by my disease? This insight was crucial because, until that point, our client always communicated to people as patients.

Case: Zoku Amsterdam

The founders of Zoku Amsterdam had given themselves more than two years to figure out how they could design the ultimate hospitality experience for people who needed to stay longer in a city because of their job.

 

Zoku Amsterdam - Hotel Room

 

The Job-to-be-done that Zoku took as the critical opportunity for their prototyping is that people want to feel at home. They want to feel part of the community of the city. And this experience is precisely what most hotels don’t offer you. Every hotel reminds you in everything of the fact that you’re just a passenger. Zoku designed the room with this Job-to-be-done in mind. The centrepiece of the room is a dining/working table, not the bed. Lunch and dinner at Zoku are to be consumed at a long communal table. You can invite your customers for meetings, and they have daily activities in which you can participate. More about Job-to-be-Done:

Want to learn how to design behaviour?

Join our two-day Fundamentals Course and master a hands-on method to use behavioural science to develop ideas that change minds and shape behaviour.

Check out the course

Join the 1.500 forward-thinking professionals who already graduated!

5. The forces diagram

We already argued above that the biggest challenge with designing for behavioural change is that people need to stop doing things. Furthermore, they have all kinds of insecurities and discomfort about the new behaviour we want them to perform. We have also argued that the best way to motivate them to embrace new behaviour is to connect with their deeper goals in their life (called Jobs-to-be-done). 

The third and final component of the SUE | Influence Framework© is four dynamic forces that push people towards or pull people away from the desired behaviour. The Influence Framework works with these four forces: 

  1. Pains of the current behaviour
  2. Gains of the desired behaviour
  3. Anxieties, doubts, and other barriers to the desired behaviour 
  4. Comforts of the current behaviour

Force 1: Pains

Pains are what people experience as shortcomings and frustrations related to their current behaviour.

Pains are often the problems to which a behavioural designer designs a solution. Pain and frustration trigger a propensity or willingness for change. The better you can connect with people’s pain, the higher the eagerness to change their behaviour.

In our behavioural design sprints, we often discover that they reward you with their trust if you can articulate people’s pain quite well. They appreciate that you understand their world. Every populist in the world knows that people are not interested in what you want to do. They want to feel instead that you get their pain. It’s a meme in every sales training that the best salesmen sell pain.


Force 2: Gains 

Gains are the positive consequences that people will experience when they perform the new desired behaviour.

Whenever I stay at Zoku, I can at least work in my room if I want. I can eat healthy without having to go out. I can enjoy hanging around in the big co-working living room with my laptop. I can impress my clients with the view, etcetera. These are all gains you will experience if you book at Zoku. 

However, these gains only make sense relative to the Job-to-be-Done. You appreciate the Gain of the design of your room, the shared breakfast table, the healthy food kitchen and the co-working living room because they all contribute to the Job-to-be-done of feeling at home in the city you have to stay in for work. 

Important to remember: Always connect the Pains and Gains with the Job -to-be-done

 

Case: Pains and Gains and travelling by train 

I often need to travel between Amsterdam and Belgium. I have stopped taking the car, and I only go by train these days. My Job-to-be-done is to spend my time as purposeful as possible. The Pain of driving my car is obvious: I can’t answer e-mails, write blogs, or finish reports. I’m utterly exhausted after a six-hour drive, of which I regularly spend two hours in traffic jams (Belgium is a traffic jam inferno). The Gain of travelling by train is also apparent: Travel time equals working time. I can read, write, or answer e-mails. For travellers like me, a power socket and a little table for my laptop are worth a lot.


Force 3: Comforts

Comforts are the routines and habits that get people to stick to their current undesired behaviour.

It’s not that I wouldn’t like to work out more often. And if I’m honest with myself, I do have the time to go to the gym in the morning. My only problem is that I have too many bad habits that stand in the way: I want to wake up slowly. I need to have breakfast. I need to bring my toddler to school (and she adores not cooperating). By the time I dropped her at school, my window of opportunity to go to the gym is closed. It’s already late, my stomach is full, and my mind is already at work. 

You could argue that everything is in place for me to start working out. I desire to have more energy and lose a couple of kilos (my JTBD). I feel the pain of not being fit. I know how much I enjoy the feeling of being healthy (gain), and I only have to walk 200 meters to my gym, so I can’t blame it on an inability to get there. As the co-founder of SUE, I’m pretty free to decide how I run my schedule (no anxieties). I can’t break through my comforts/ habits. What works for me is that my gym organises a 10-minute abs workout every hour. If I can make it in time to join this 10-minute class, I will probably stay a bit longer.


Force 4: Anxieties 

Anxieties are fears, doubts, prejudices and other barriers to the desired behaviour.

Anxieties could be all the things that prevent you from changing behaviour Anxieties could be related to: 

  • The desired behaviour: Too complicated, too hard, too socially uncomfortable, etc. 
  • The supplier: can I trust this supplier? 
  • My own capability: I’m not sure if I can do this or if it matches with my self-image. 
  • My environment: I don’t know what my significant others will think of this behaviour

Taking away Anxieties are often underestimated in a strategy for behavioural change. However, they form a crucial piece of the puzzle. Sometimes taking away anxiety is the last puzzle piece needed to turn an intervention into a success. Like in the Flixbus example I wrote about earlier: taking away my fears and prejudices towards coach travel and address the most critical force between me and the desired behaviour. 

Case: De Porsche Pitch

In The Perfect Pitch, a book by advertising legend Jon Steel about the art of pitching, the author shares the story of a pitch his agency won for the Porsche account. The killer insight that got them to win the agency competition was that advertising doesn’t need to persuade Porsche drivers. It needs te to convince non-drivers that Porsche drivers are not cars for men with a middle-crisis. They called it the “asshole factor” of a Porsche driver. Taking away these anxieties and prejudices towards the Porsche driver became the most genius advertising strategy ever for the brand.

Want to shape behaviour and decisions?

Then our two-day Fundamentals Course is the perfect training for you. You will learn the latest insights from behavioural science and get easy-to-use tools and templates to apply these in practice right away!

Download the brochure

Go ahead, it’s completely free of charge!

6. Working with the SUE | Influence Framework©

 The Influence Framework helps you to build empathy for your target audience. Our Behavioural Design Sprints always kick off with five or six interviews. If you interview five or six people from the target audience, you will be able to fill in your Influence Framework©. For a proper Behavioural Design interview, there’s only one simple rule of thumb:   

Past behaviour never lies

When we conduct interviews, we always try to map human journeys. What we’re looking for is how real humans think, feel and behave. How does a successful journey look like? What about a failed journey? Why did people fail? What made them feel uncertain or uncomfortable? Why didn’t they do the things they wanted to do?  

In 5 or 6 interviews, you’ll get a clear idea about the Jobs-to-be-Done, the Pains and Comforts of their current behaviour and the Gains en Anxieties of the desired behaviour. It can also be gratifying to interview extreme users. Experienced people can tell you a lot about Jobs-to-be-Dones and gains. People who are struggling can teach you a lot about pains, comforts and anxieties. When you have mapped out these forces, you can spot opportunities for behavioural change by asking yourself these five questions: 

  • How might we help people to achieve their goals? (Jobs-to-be-Done)
  • Can we come up with solutions that solve pains or frustrations that people experience (Pain) 
  • Can we break into an existing habit? Or do we need to change a problematic habit? (Comfort)
  • Which anxieties, doubts, prejudices, and other barriers do we need to take away? (Anxiety)
  • What could be the psychological value that we can create for people (Gain)

More about this topic: 

 

7. Examples

  • The best way to think about the success of Uber and Lyft – aside from a nearly unlimited supply of cheap investor capital – is that they successfully eliminated all the pain from the taxi experience. Not knowing when your car is going to arrive, not being confident about whether the cabbie will rip you off or having to negotiate about the price. They brilliantly help you to achieve your job-to-be-done to experience the city. An Uber-Gain is that you never have to worry when you go out: You order an Uber when you leave the club, and within 5 minutes, you’re back on your way home.
  • Airbnb is a much more gratifying way to experience new places. This is the ultimate traveller Job-to-be-done. The pain that is associated with hotels is that they’re anonymous. They make you feel like an outsider-tourist. The Gain of AirBnB on an emotional level is that you can feel at home abroad. This feeling gets even strengthened on a functional level: Since you do your cooking and supermarket shopping, you can feel what it is to live like a local. There are some anxieties Airbnb needs to take away, like whether the place is as good as advertised (that’s why they always demand professional pictures). A relatively new anxiety is the worry that the neighbourhood might be sick and tired of Airbnb tourists.

7. The ethics of Behavioural Design

We have argued above that a successful behavioural design strategy consists of three ingredients:

  1. A deeper understanding of human decision-making.
  2. Understanding the forces that shape behaviour.
  3. Using principles from the science of influence to come up with ideas and interventions for positive behavioural change.

The SUE | Influence Framework© is a powerful mental model for understanding why people do what they do and what prevents them from changing their behaviour. It is also the best guarantee that a strategy for behavioural change will be human-centered.

Behavioural Designers always ask themselves what they can do to help people become more successful at what they do or help them overcome their anxieties or help them break bad habits.

Suppose you take your time to build empathy with your target audience, and you use the Influence Framework to analyse their behaviour. In that case, you will always spot opportunities to design positive choices. 

PS: The mission of SUE is to unlock the potential of behavioural science to help people make better decisions in work, life and play. We use this mission as our guiding principle for everything we do. We’re very conscious that behavioural design can be a ‘dark wisdom’ and that those who master it are often the ones with the worst intentions. We don’t want to be naive that people will abuse this knowledge to manipulate people. Still, we firmly believe that the world would be much better off if we can inspire more people with a better understanding of how influence works and do positive things with this knowledge. Please check out our Behavioural Design Ethics Toolkit here.

BONUS: free cheat card 'The SUE | Influence Framework© explained'

Especially for you we've created a free cheat card 'The SUE | Influence Framework© explained'. For you to keep at hand, so you can start using the insights from this blog post whenever you want—it is a little gift from us to you.

Download cheat card

Go ahead, it’s completely free of charge!

How do you do. Our name is SUE.

Do you want to learn more?

Suppose you want to learn more about how influence works. In that case, you might want to consider joining our Behavioural Design Academy, our officially accredited educational institution that already trained 2500+ people from 45+ countries in applied Behavioural Design. Or book an in-company training or one-day workshop for your team. In our top-notch training, we teach the Behavioural Design Method© and the Influence Framework©. Two powerful tools to make behavioural change happen in practice.

You can also hire SUE to help you to bring an innovative perspective on your product, service, policy or marketing. In a Behavioural Design Sprint, we help you shape choice and desired behaviours using a mix of behavioural psychology and creativity.

You can download the Behavioural Design Fundamentals Course brochure, contact us here or subscribe to our Behavioural Design Digest. This is our weekly newsletter in which we deconstruct how influence works in work, life and society.

Or maybe, you’re just curious about SUE | Behavioural Design. Here’s where you can read our backstory.

sue behavioural design

How to manage a company is a Behavioural Design challenge

By All, Employee behaviour

I have been a full-time entrepreneur for ten years. I can’t say it was my destiny to become one. I somewhat stumbled into it. My dad was a truck driver, and my mom is – to this date – the longest selling Tupperware saleswoman in Europe. And my academic career – A Master in Clinical Psychology – didn’t point in the entrepreneurial direction either. It was a moment of hybris that pulled the trigger for us. One day, about ten years ago, Astrid and I concluded an argument with our former employer in a bar with the words: “…In that case, we’ll quit”. ; The terrifying impact of that impulsive decision only daunted us on the way back home. We had no idea on how to run a company.

 

 

Why we sucked at it

In those ten years, we had to learn how to build and manage a company. And for quite some time, we sucked at it—big time. We were geeks and strategic planners. We figured out how to sell projects and get the work done with a growing staff, but we had no clue what we needed to build a healthy company and high-performance team culture. We were both exhausting our staff and ourselves. We made all the classic startup failures of working too much inside the company instead of working on the company’s growth. We would win a big project, work day and night to finish it, only to realise that we didn’t spend time on marketing or sales in the meantime. Nearly every entrepreneur has probably gone through this manic-depressive cycle between euphoria and despair.

 

The Behavioural Design Challenge

It was only gradually and with much great coaching that we realised that we needed to approach the company as behavioural designers: We needed to figure out which desired behaviours lead to our desired outcomes. We needed to figure out the deeper needs – or Jobs-to-be-Done – of our staff and clients. We had to remove obstacles that prevent the desired behaviours from happening. And we needed to trigger successful behaviours, turn them into habits and hope that these habits would compound.

Let me share some of the behavioural insights that helped us transform SUE from a startup to a healthy scaleup. (read further below the banner)

Want to find out how behavioural science can amplify your impact?

Please contact us for a 'Sixty with SUE': an hour of non-binding advice in which we can see how we can use Behavioural Design to tackle your project challenge or strategic problem.

Book a 'Sixty'

Go ahead, it is free and there are no strings attached!

1. Understanding our client’s Job-to-be-Done

Our clients don’t want behavioural design; they want a successful outcome. They hope for evidence that their new product or service will work. They want a breakthrough in understanding how to connect with their customers. They want a validated strategy to shape the behaviour of their target audience. They are looking for ways to persuade their stakeholders with insights into how real customers reacted to their offering. Some clients want their whole team to use the behavioural design framework as a shared language for understanding their customers. Understanding the jobs they have in their company for hiring us was the key to designing our offering. 

More on Job-to-be-Done Thinking: Here

 

2. Understanding our Staff’s Job-to-be-Done

The people who work for SUE dedicate their talent, time, energy, and creativity to our company. They work incredibly hard to create wow experiences for our clients. In the meantime, they have to deal with creative uncertainty, manage group dynamics, and design and test interventions. That’s quite demanding. For that, they expect something in return from us: respect, belonging, recognition, adventure, protection, growth, excitement, purpose. Only when we do a decent job fulfilling these needs can they feel free, confident, and inspired to do great work. The moments we have everything exactly right are scarce, but we work hard to fulfil these basic needs. Without their talent, energy and dedication, there would be no SUE. 


3. Make desired behaviour easy

Two of the best decisions we ever made were to standardise our process and transform our know-how into a method. We have three training formats and three sprint formats. That’s it. These interventions make it far easier to train our staff; it allows us to scale up when needed, contributing to higher quality output. In a Behavioural Design Sprint, the only thing we need to focus on is the creative output. The rest is taken care of by the Behavioural Design Sprint process. Contrary to what most people think, a well-designed process is a rocket engine for creativity.

 

4. Design a growth habit

The final behavioural design intervention is the design of a growth habit. A growth habit is a disciplined, rhythmic way of working on the four pillars of a healthy organisation: 1) satisfied customers, 2) healthy business metrics, 3) Motivated staff, and 4) future proof roadmap. We now use these four pillars as the basic structure for our weekly Management Team meeting. We assess where we should improve and set up actions to move the needle in the right direction. 

To commit to a growth habit is something we’ve been struggling with for too long. In the early startup phase, it’s hard to be disciplined when you’re playing ten different roles. But gradually, we learned that – just like with getting in shape – building a disciplined growth habit is the key to running a great company. 

Would you like to power up your team with Behavioural Intelligence?

If your team misses Behavioural Design skills, be sure to check out our in-company training. Bringing your talent up-to-speed with the latest in behavioural science and teaching them hands-on methods and tools to apply this in practice right away. Tailormade to your organisation.

Check out in-company training

PS. We've trained many teams already! From leadership to project teams.

More blogs on the link between behavioural design and entrepreneurship:

 

Tom De Bruyne

 

Cover visual by Isaac Smith on Unsplash.

How do you do. Our name is SUE.

Do you want to learn more?

Suppose you want to learn more about how influence works. In that case, you might want to consider joining our Behavioural Design Academy, our officially accredited educational institution that already trained 2500+ people from 45+ countries in applied Behavioural Design. Or book an in-company training or one-day workshop for your team. In our top-notch training, we teach the Behavioural Design Method© and the Influence Framework©. Two powerful tools to make behavioural change happen in practice.

You can also hire SUE to help you to bring an innovative perspective on your product, service, policy or marketing. In a Behavioural Design Sprint, we help you shape choice and desired behaviours using a mix of behavioural psychology and creativity.

You can download the Behavioural Design Fundamentals Course brochure, contact us here or subscribe to our Behavioural Design Digest. This is our weekly newsletter in which we deconstruct how influence works in work, life and society.

Or maybe, you’re just curious about SUE | Behavioural Design. Here’s where you can read our backstory.

sue behavioural design

Behavioural Design Week: Matt Wallaert

By All, Employee behaviour

Our final keynote speaker at Behavioural Design Week 2021 was Baptiste Tougeron. As a Google Research Manager, he is responsible for ad effectiveness. During his session, he presented the most read whitepaper of Google worldwide: Decoding decisions. He talked about the messy decision process and how behavioural science can supercharge the attractiveness of brands. A must-see if you work in branding, marketing and advertising.

Behavioural Design Week: Matt Wallaert

The first speaker on Behavioural Design Week was most certainly not the least. If you are looking for an hour filled with inspiration on applying behavioural science within your organisation, this is the keynote you don’t want to miss. In a wave of unstoppable energy, Matt shares the four steps needed for running a successful behavioural change project. He shares the don’t and don’ts combined with lots of humour—Matt shares how you can genuinely apply behavioural science. Learn from Matt’s experiences and get practical guidelines to get into the action yourself.

How to set-up a Behavioural Change Project
Behavioural Design Week 2021

Matt Wallaert: Our key take-aways

Matt explains there are four steps in a behavioural change project:

Behavioural strategy
What is the desired behaviour? What do you want people to do? Translate this into a Behavioural Statement with clear OKRs (Objectives and Key Results), so you can make people accountable; it is not one person’s task to run a successful behavioural change project. Everyone’s job is behaviour; everything can be linked to behaviour.

Behavioural Insight
Our job is to build a bridge between a world that is and a world that isn’t. We need to understand which bridge to build. Why is this a desirable outcome? Why don’t we already have this outcome (bottlenecks)? You need to look for emerging patterns and need cross-validation. I see this in qualitative research; do you also see this through your quantitative lens.

Behavioural Design
We start imagining interventions. All we do is changing the pressures or the environment and making behaviour easier or harder to do.

Behavioural Impact Evaluation
You need to measure the impact of your interventions. However, we are in applied behavioural science, not academic, behavioural science. You have to have some basic fluidity about the probability. In academia, p can be less than .5. This holds not true in business. If we can find a solution that can save some people’s lives, well, that’s a win. Maybe not scientifically significant, but essential.

Matt Wallaert: Quotes to remember

Science is a process, behaviour is an outcome.

Everyone’s job is behaviour, everything can be linked to behaviour.

Accountability allows for autonomy.

Our job is to build a a bridge between a world that is and a world that isn’t.

You need cross validation. Take a qualitative belief and validate it quantative.

We are not in academic behavioural science but in applied behavioural science.

Matt Wallaert: Further reading

If Matt’s talk inspired you, please make sure to pick up his book ‘Start at the End: How to build products that create change’. We finished reading it in one fellow swoop, and it has become one of our favourite readings.

Hungry for more Behavioural Design Fest?

Please make sure to check out our other videos of other 2021 Keynote speakers on Behavioural Design Week: Tim Versnel on designing behaviour for sustainability and Baptiste Tougeron on using behavioural science for more effective advertising.

Or, check out our upcoming edition of Behavioural Design Fest.

Also, you can find all the videos of the keynotes of Behavioural Design Fest 2018 and Behavioural Design Fest 2019; watch and re-watch here to upgrade your Behavioural Design know-how and boost your inspiration.

Want to shape behaviour and decisions?

Then our two-day Fundamentals Course is the perfect training for you. You will learn the latest insights from behavioural science and get easy-to-use tools and templates to apply these in practice right away!

Download the brochure

Go ahead, it’s completely free of charge!

How do you do. Our name is SUE.

Do you want to learn more?

Suppose you want to learn more about how influence works. In that case, you might want to consider joining our Behavioural Design Academy, our officially accredited educational institution that already trained 2500+ people from 45+ countries in applied Behavioural Design. Or book an in-company training or one-day workshop for your team. In our top-notch training, we teach the Behavioural Design Method© and the Influence Framework©. Two powerful tools to make behavioural change happen in practice.

You can also hire SUE to help you to bring an innovative perspective on your product, service, policy or marketing. In a Behavioural Design Sprint, we help you shape choice and desired behaviours using a mix of behavioural psychology and creativity.

You can download the Behavioural Design Fundamentals Course brochure, contact us here or subscribe to our Behavioural Design Digest. This is our weekly newsletter in which we deconstruct how influence works in work, life and society.

Or maybe, you’re just curious about SUE | Behavioural Design. Here’s where you can read our backstory.

sue behavioural design

Behavioural Design Week: Baptiste Tougeron

By All, Customer Behaviour

Our final keynote speaker at Behavioural Design Week 2021 was Baptiste Tougeron. As a Google Research Manager, he is responsible for ad effectiveness. During his session, he presented the most read whitepaper of Google worldwide: Decoding decisions. He talked about the messy decision process and how behavioural science can supercharge the attractiveness of brands. A must-see if you work in branding, marketing and advertising.

Behavioural Design Week: Baptiste Tougeron

Purchase decision-making is not a linear process. Between the purchase trigger and the purchase, customers are exposed to much information, like reviews or social media. The Google research team tried to uncover how customers process all this information and make decisions between the purchase trigger and the purchase itself. The call it “The messy middle”.

Behavioural Design for Advertising Effectiveness
Behavioural Design Week 2021

Baptiste Tougeron: Our key take-aways

Key-take away 1: Organise the messy middle:
Between the purchase trigger and the purchase, we can identify two ’mental modes’. The Exploration Mode and the Evaluation Mode.

While the Exploration Mode expands our consideration set, the Evaluation Mode narrows down our options. People oscillate through these two mental modes, repeating them as often as they need to make a purchase decision. These two mental processes can run simultaneously or apart, but they are two distinctive processes.

Key Take-Away 2: Supercharge the brand with cognitive biases
Now that there is some order in the messy middle, we need to know how shoppers process the information. During the process of Exploration and Evaluation, cognitive biases shape their behaviour and influence their choice. In the research, six cognitive biases are prioritised:

  1. The Power of Free
  2. Social Norms
  3. Authority Bias
  4. The Power of Now
  5. Category Heuristics
  6. Security Bias 

Important conclusions to keep in mind:

  • Ensure brand presence, simply showing up can impact customer decision making when they are exploring and evaluating. (This is called the Mere Exposure Effect)
  • Intelligently (and responsibly) employ behavioural science principles to influence the decision-making process
  • Close the gap between trigger and purchase.

Baptiste Tougeron: Quotes to remember

“Purchase decision-making is not a linear process”.

“I would like to think of the messy middle as a big spaghetti plate”.

“The cool thing about behavioural science, if you put the theory into practice in different countries, the brain remains to work very similarly.”

“We are not done. We still have to explore ‘exposure’ and ‘experience’, so lookout for new research and results in 2022”.

“Playing with the six cognitive biases is not easy. You cannot choose to supercharge your brand just like that. Some biases you can influence yourself, others need to be acquired”.

Baptiste Tougeron: Further reading

Want to know more about untangling the messy middle? Make sure to read the white paper by Google, which can be found here.

 

Hungry for more Behavioural Design Fest?

Please make sure to check out our other videos of other 2021 Keynote speakers on Behavioural Design Week: Tim Versnel on designing behaviour for sustainability and Matt Wallaert who shares his experience in setting up a Behavioural Change Project within an organisation.

Or, check out our upcoming edition of Behavioural Design Fest.

Also, you can find all the videos of the keynotes of Behavioural Design Fest 2018 and Behavioural Design Fest 2019; watch and re-watch here to upgrade your Behavioural Design know-how and boost your inspiration.

Want to shape behaviour and decisions?

Then our two-day Fundamentals Course is the perfect training for you. You will learn the latest insights from behavioural science and get easy-to-use tools and templates to apply these in practice right away!

Download the brochure

Go ahead, it’s completely free of charge!

How do you do. Our name is SUE.

Do you want to learn more?

Suppose you want to learn more about how influence works. In that case, you might want to consider joining our Behavioural Design Academy, our officially accredited educational institution that already trained 2500+ people from 45+ countries in applied Behavioural Design. Or book an in-company training or one-day workshop for your team. In our top-notch training, we teach the Behavioural Design Method© and the Influence Framework©. Two powerful tools to make behavioural change happen in practice.

You can also hire SUE to help you to bring an innovative perspective on your product, service, policy or marketing. In a Behavioural Design Sprint, we help you shape choice and desired behaviours using a mix of behavioural psychology and creativity.

You can download the Behavioural Design Fundamentals Course brochure, contact us here or subscribe to our Behavioural Design Digest. This is our weekly newsletter in which we deconstruct how influence works in work, life and society.

Or maybe, you’re just curious about SUE | Behavioural Design. Here’s where you can read our backstory.

sue behavioural design

Marketing, Leadership, Design? Everything is applied psychology.

By All, Behavioural Science Insights

I’m a clinical psychologist by training. When I stumbled into the marketing profession about 20 years ago, ‘psychologist’ was something you better kept for yourself. Back then, I’d much better confessed at a party that I rented out some windows in the red light district than to admit I studied psychology. At that time, psychology was considered to be ‘the sinkhole of the university’. But things have changed…

Applied psychology: Things have changed

This perception profoundly changed in the last 10-15 years. The first trigger event was the Nobel Memorial Prize in Economic Sciences for the work of Daniel Kahneman and Amos Tversky. This was the first time that the field of economics fully acknowledged the importance of psychology to understand better how humans make decisions in markets.

 

The second trigger event was the astronomical takeover of Silicon Valley of the world. Tech companies perfectly understood that psychology was the key to world domination. They figured out how to leverage psychology to get people hooked to their apps and services.

/br>

In the slipstream of Kahneman and Tversky’s Prize and their best-seller “Thinking Fast and Slow“, behavioural psychology got reframed brilliantly into Behavioural Economics. A friend of mine, a professor at a Dutch Management School, told me that ever since he changed “psychology” into “behavioural economics” in his research grant proposals, he won every grant for which he applied.

/br>

The insaturable appetite for psychology caused an explosion of books that promised to provide deep insight into turning deep human understanding into persuasive products and services.

/br>

Tech companies perfectly understand that behavioural science is the ultimate competitive edge.

Applied psychology: critical sectors are not using it

And yet, on the other hand, it’s still shocking to observe how many critical domains of society still didn’t get the memo on how the brain works. If you think about it:

 

 

The housing market is a great example. Every time policymakers develop a strategy to stimulate the buying power of starters, the problem gets worse. You don’t need to be a nuclear physicist to understand why: The more bidding power you give in the hands of people, in a market of scarcity, the more people will raise their bid, and the faster prices will rise.

 

Another fascinating example is a particular Covid-policy here in the Netherlands. A weeks ago, the Dutch government did something brilliant. They launched the “Dansen met Janssen” campaign. The campaign proposed an offer young people couldn’t refuse: If they got vaccinated with the Janssen Vaccine – of which you only require one jab – they would be able to go out on the same day with a valid COVID-passport. Youngsters and Young adults took the bait in hordes. The only problem: within three days, we had a couple of ‘super spreading events’ due to young people spreading the virus at parties.

 

The fierce debate today is about whether this proofs that the policy was stupid and irresponsible. We would argue it’s not. People desperately wanted to go out, so many of them who were still a bit sceptic now found a very motivating reason to get a jab. Who cares that the vaccine wasn’t working properly yet  – it takes about two weeks -, and that they still had a pretty good chance to catch the virus. However, the chances that they would up at Intensive Care are not that high.  The policy did a beautiful job in motivating a high-risk group to get vaccinated. The problem is that this is a tough argument to sell to policymakers who think in terms of risks and simple cause and effect relationships. They figure that since the policy caused an outbreak, it must be a bad policy.

Want to learn how to design behaviour?

Join our two-day Fundamentals Course and master a hands-on method to use behavioural science to develop ideas that change minds and shape behaviour.

Check out the course

Join the 1.500 forward-thinking professionals who already graduated!

Summary: Applied psychology

Behavioural Science still has got a long way to conquer the hearts and minds of policymakers, leaders and managers. But given the size and the (intended or unintended) impact of policies on human behaviour, it better start to find its way into the boardroom fast.

 

Tom De Bruyne

Featured cover image by Markus Winkler on Unsplash.

How do you do. Our name is SUE.

Do you want to learn more?

Suppose you want to learn more about how influence works. In that case, you might want to consider joining our Behavioural Design Academy, our officially accredited educational institution that already trained 2500+ people from 45+ countries in applied Behavioural Design. Or book an in-company training or one-day workshop for your team. In our top-notch training, we teach the Behavioural Design Method© and the Influence Framework©. Two powerful tools to make behavioural change happen in practice.

You can also hire SUE to help you to bring an innovative perspective on your product, service, policy or marketing. In a Behavioural Design Sprint, we help you shape choice and desired behaviours using a mix of behavioural psychology and creativity.

You can download the Behavioural Design Fundamentals Course brochure, contact us here or subscribe to our Behavioural Design Digest. This is our weekly newsletter in which we deconstruct how influence works in work, life and society.

Or maybe, you’re just curious about SUE | Behavioural Design. Here’s where you can read our backstory.

sue behavioural design

Case Study: How to get people to separate their organic waste?

By All, Citizen Behaviour

In this guest blog, our Behavioural Design Academy alumnus Ron Ghijssen, founder of ANDC Design shares a fascinating and very well executed intervention strategy he worked on in the Dutch City of Amersfoort. The target of the intervention was to get people to start separating their organic waste. The case demonstrates of the power of behavioural design thinking combined with creativity for designing sustainable behavioural change.

 

The Human Insight

The research phase (i.a. questioning a group of citizens of Amersfoort) led to several exciting insights which formed the base for the campaign strategy. The core of this strategy contained two central elements:

  • Emphasize separating organic waste is normal; it’s a common thing
  • Facilitate citizens in separating organic waste

With this strategy as an essential guideline, we focused a bit more on insights from the research phase. It triggered us that the majority of citizens consider separating waste as an annoying task because it implies effort (this applies not only to people in Amersfoort, former research shows that this applies to the majority of people in the Netherlands). 

And you know what? People are right. It’s so much easier to throw the organic waste in the ‘normal’ household trash can. For separating organic waste the right and efficient way, you need a small organic waste bin that you can place on the kitchen countertop (which people often regard as a stand in the way). People who are motivated to separate organic waste have this kind of bin. But the majority isn’t motivated enough to buy such a bin and place it consequently on their kitchen countertop. So despite the good intentions people have (which they overall really have), these elements form significant barriers to separate organic waste for most people.

 

Do you also want to learn how to apply behavioural science in practice?

We have created a brochure that explains all the ins and outs of the Fundamentals Course. From the program to the former participants. From the investment to the people behind the Academy: it's all in there.

Download the brochure

Go ahead, there are no strings attached!

The solution: Reframe the Organic Waste Bin

We felt we were on the right track with the ‘bin issue’. By discussing this issue more deeply in brainstorms, by physically analyzing our own kitchens and by adding some common sense (where would you be without), we concluded that every kitchen has só many potential organic waste ‘bins’: a pot used during cooking, an empty little mushroom box, an empty salad bowl. In other words, simply every kitchen object where you can put organic waste in will do (I don’t recommend using a little girl’s lunchbox, my daughter didn’t appreciate it).

So we realized that asking ‘Do you have a little bin?’ wasn’t the right question. The right question was: ‘What’s your little bin?’ (in Dutch: ‘Wat is jouw bakkie?’)

 

Behavioural Design In Action

This question reframes almost every cooking object in a little organic waste bin. And it contains a facilitating message to all citizens. After all, suddenly, they see little waste bins all around them in their kitchen. And the best part is: people have freedom of choice and can pick the one they find most suitable. So we just helped people make the first step in desired behaviour by making it easy. Where’s that resistance now?

Another great advantage of this message is that people are being facilitated by this question instead of investing in tangible physical goods. After all, there was no budget to give all citizens their little bin. But why should you, when everyone has more than enough by themselves? So there was no needless time and money wasted (sorry) for getting everyone a particular organic waste bin.

Finally, the question also contains the desired social norm we wanted the campaign to express: everyone has a little bin, what’s yours? 

Campaign Execution

Furthermore, we designed and developed several interventions to stimulate the desired behaviour to reach the target group. We created visuals for an Amersfoort wide (poster) campaign. We asked citizens of Amersfoort to be our ‘models’ because we wanted the question (What’s your little bin?) the target group to ask the question themselves. 

Also, we designed a so-called ‘wheelie bin bingo’. All citizens of Amersfoort with a green wheelie bin (for organic waste) received a brochure in their postbox. This brochure contained, amongst other things, information about the importance of separating waste and tips & tricks regarding the right way to do it. But it also included a sticker upon which people had to write down their house number. By pasting their sticker on their green wheelie bin, all citizens were automatically enrolled in the periodic ‘green wheelie bingo’ (having a chance to win modest but fabulous prizes).

Again, the stickers carry out the social norm when visible on the sidewalks and serve as prompts or reminders for the desired behaviour.

The campaign launched in May 2021, and the city council will monitor the results through an annual analysis of the share of organic waste in residual household waste. One of the most critical desired outcomes is a significant decrease of the organic part in household waste. We hope that our combination of behavioural design and creativity will contribute to this vital goal.

I hope the case of Amersfoort showed you how using insights from solid research, selecting the correct behavioural design principles and techniques ánd adding some creativity can lead to a positive, appealing and hopefully effective campaign.

 

Ron Ghijssen is a SUE Behavioural Design Academy alumnus. He is the founder of  creative agency ANDC.

 

Cover visual by: Joshua Hoehne on Unsplash.

 

How do you do. Our name is SUE.

Do you want to learn more?

Suppose you want to learn more about how influence works. In that case, you might want to consider joining our Behavioural Design Academy, our officially accredited educational institution that already trained 2500+ people from 45+ countries in applied Behavioural Design. Or book an in-company training or one-day workshop for your team. In our top-notch training, we teach the Behavioural Design Method© and the Influence Framework©. Two powerful tools to make behavioural change happen in practice.

You can also hire SUE to help you to bring an innovative perspective on your product, service, policy or marketing. In a Behavioural Design Sprint, we help you shape choice and desired behaviours using a mix of behavioural psychology and creativity.

You can download the Behavioural Design Fundamentals Course brochure, contact us here or subscribe to our Behavioural Design Digest. This is our weekly newsletter in which we deconstruct how influence works in work, life and society.

Or maybe, you’re just curious about SUE | Behavioural Design. Here’s where you can read our backstory.

sue behavioural design

Six rules for designing your happiness

By All, Employee behaviour, Personal Behaviour

If there is one thing we as humans all want more control over, it is our own happiness. Thousands of self-help books have been written, bought and earmarked. Maybe one of the pieces of advice you have come across is this quote: ‘You’re the average of the five people you spend the most time with’. From a behavioural science point of view, this is intriguing, as behaviour is strongly influenced by context. We all act and react to what happens around us. Can we learn from behavioural science what kind of people we must surround ourselves with? How can we influence our context to trigger behaviours that make us flourish as human beings? Or to go beyond this: How do these insights transfer to a business context? Can it help create better performing teams and more motivated talent? This blog post will give some answers from a Behavioural Design point of view.

Happiness: The five people you hang around with

You probably have heard or read it before that we as humans are hard-wired as social animals. When we grow up, we learn the values, norms, and desired behaviours by looking at others and adapting to them. We feel better when we fit in a group. We prefer inertia, but one of the key motivators for us to spring into action is when our group is threatened by another group. That’s why the ‘creating an enemy’ tactic is so vital in getting people on your side in, for instance, winning political votes. At one point or another, we all have been influenced by social proof to buy, book or belief something. From a happiness point of view, this also has a strong effect on us. You could say that:

Our quality of life equals our quality of relationships.

However, there is this interesting paradox. At the same time, we all live in an identity economy. We are constantly searching to answer that one question: ‘Who am I?’ and we repeatedly do and say things to establish our identity. This is not surprising as most of us were raised for autonomy. It is a merit to be independent, make our own decisions, have self-motivation, and have high expectations of our ability to direct our own lives. Happiness isn’t an option anymore; it is a mandate or almost a right to be.

You probably have been looking for ways to be happy yourself once or twice. If that’s the case, I better put it to you straight: behavioural research has shown that looking for happiness has no use at all. Reading all those self-help books, turning inwards, and searching for your inner purpose: Won’t do the trick. This doesn’t mean we cannot be happy; we simply must first understand ourselves a bit better. We need to understand the psychology of happiness.

Designing happiness: predicting our happiness

If we want to be happy, one of the first things we need to look into is our ability to predict what makes us happy. Let me ask you a question: Suppose you won a lottery, and 1 million euros are transferred to your checking account. Now imagine a completely different scenario. This time you had the unfortunate experience to be involved in a traffic accident that made you paralysed from the hips down. After a year, if I ask you what is your level of happiness? Is it the same in both scenarios or is one higher than the other? I suppose, you think your happiness level will look something like this: as a fortunate lottery winner you picture yourself being far happier than as a unfortunate paraplegic.

What if I tell you these are the wrong data? Daniel Gilbert PhD, professor at the Harvard Department of Psychology, researched this, and these were the correct data:

There was hardly any difference in happiness levels after a year. This was a profound insight into the psychology of happiness. Daniel Gilbert discovered that we all have a psychological immune system that helps us handle setbacks and prevents our happiness from being negatively influenced. It shelters us from the worst effects of misfortune.

This is important as this study has shown that we are not good at forecasting our responses to emotional incidents. We typically overestimate how long we will be unhappy after a negative incident, which, in turn, affects our behaviour and decision-making. According to Daniel Gilbert, PhD:

We underestimate how quickly our feelings are going to change in part because we underestimate our ability to change them; this can lead us to make decisions that don’t maximise our potential for satisfaction.

You can see how this may affect our happiness, or as Daniel Kahneman, PhD, who conducts research on decision-making and wellbeing, said:

What people tend to do is either avoid decisions, or they build in securities by over-relying on freedom of choice. If you have more options, this gives us the feeling of having more room to escape. However, behavioural research has also shown that having more options tends to have adverse effects on the quality of our decision-making. We often tend to pay more for more options, but this is a waste of money from a happiness point of view.

Designing happiness: what makes us happy?

But there is more. We now know that we are not good at predicting our happiness, but that doesn’t tell us what makes us happy. Behavioural science has something fascinating to say about this, too, as we have another psychological mechanism know as hedonic adaptation, also known as the hedonic treadmill. It refers to the human inclination to quickly return to a relatively stable level of happiness despite major positive or negative events or life changes.

You can compare it to a treadmill as even if a runner is running, he (or she) stays at the same place. If you do something you love or like the joy you get from it levels out. We all return to our happiness baseline. The mechanism helps us cope with unpleasant experiences but it also is a killer for joy. Happiness doesn’t last.

Maybe, you are now a bit discouraged if you can indeed design a happy life. You can. If there is one element that drives our happiness that researchers found repeatedly, it is curiosity. When we are open to new experiences, when we cherish the unknown, when we are inquisitive, it has been shown that we tend to hover above the happiness baseline for a more extended period. We can even shift our baseline a bit upwards.

Designing happiness: the freedom security paradox

This brings us back to the paradox we started out with our innate need to be socially connected and independent. This paradox starts to make sense when we want to design our happiness. Esther Perel once said we all have two human needs: security and freedom. You could say we all balance between change and stability all the time. You need your freedom as it drives that so much needed imagination, playfulness, curiosity. However, it is much easier to change if you can jump of a stable foundation of people who are committed to your wellbeing.

It is also much easier to be curious if you are inspired by interesting people. In fact, if we get disconnected from people, we can experience all forms of stress: despair, sadness, exhaustion, confusion. Just think back at the Covid lockdown; these were all emotions people have genuinely experienced and suffered from. This leads up to a fascinating Behavioural Design challenge:

How can we design behaviour that makes us feel connected, curious, and playful?

This is also where our personal happiness and work happiness come together: the same behavioural interventions can work for both. In both situations, you are a human in a relationship with other humans. Losing the other is losing yourself.

Want to learn how to design behaviour?

Join our two-day Fundamentals Course and master a hands-on method to use behavioural science to develop ideas that change minds and shape behaviour.

Check out the course

Join the 1.500 forward-thinking professionals who already graduated!

Designing happiness advice 1:
Create an interdependent context.

Maybe the most critical shift we need to make is a shift in our context. We need to design a context that is shaped for inter-reliance or inter-dependence. Make it okay to be dependent on each other. You can be playful and imaginative if you are not afraid that you will be judged. If you can rely on each other this creates collective resilience sparking the willingness to try new things. To accomplish this, you need to design for psychological safety. This is a shared belief held by team members (or partners) that it is safe for interpersonal risk-taking.

Research has shown that this builds team efficacy, learning and performance. But psychological safety also helps to establish stable relationships. It creates the courage to speak up no matter how you feel about yourself, you will open up about your struggles, and it helps you take a step toward what you want. It also helps you propose new plans and experiment together. Some tangible behaviours that lead up to psychological safety:

  • Be understanding: Summarise, use language like ‘Do I understand it correctly that you want.
  • Avoid blaming: Don’t say: ‘Why did this happen?’ or ‘Why did you do this?’, but ‘How can we make sure to make this better next time?’
  • Avoid negative: Don’t use negative words; it creates an interpersonal culture of rejection.
  • Manage speaking time: Making sure everyone can speak in an equal amount.
  • Explain decisions: you don’t need to have a democracy in everything, but it helps to explain a decision.
  • Be engaged: Make eye contact, don’t use phones in conversations, be present.

Designing happiness advice 2:
Surround yourself with complementarity.

This is where the five people that you surround yourself comes in. If you look back at the first intervention, you can imagine that:

Interdepend roles create strength.

So, look around those five people. Are they different from you? Do they complete you? Do you get energy from them, or do they suck the living daylights out of you? It maybe feels safer to hang out with like-minded people, but it can be very inspirational to talk and meet with people with different experiences and opinions. Some tangible behaviours:

  • Plan a meeting with someone who has a different opinion.
  • Make a list of the five people who could compliment you and schedule meetings with them.

Designing happiness advice 3:
Have a prototyping mindset.

What holds us back from being curious is the lack of courage to do new things. We know from behavioural science that it is crucial to believe in yourself. If you don’t have confidence, you struggle in your relationships, and you don’t feel very happy at work, you don’t cope well with stress, which causes you to lack motivation or energy. On the other hand, research has shown that having confidence can help you set boundaries, find balance in your work and private life, improve performance at work through better concentration and commitment to tasks.

This again affects whether we dare to engage in experiences that might feel uncertain or can be risky. Expectations of personal efficacy determine whether coping behaviour will be initiated, how much effort will be expended, and how long it will be sustained in the face of obstacles and aversive experiences. A great behavioural design intervention is to build confidence is to establish a prototyping mindset.

If you look at everything you do as an experiment, you cannot fail only learn.

Everything new is not likely to give us courage but approaching life, and new ventures as one big experiment builds trust in yourself. It’s the fuel for our curiosity engine.

Designing happiness advice 4:
Build respect and recognition.

Most relationships start to fail, both in your work and private life when you don’t feel valued anymore. We all have an innate need for respect and recognition. When we have the feeling we are not valued anymore, we cut ourselves loose. There is a straightforward behavioural intervention to make people feel valued. It is giving compliments.

There is more to it: a study from 2012 suggests that receiving praise helps our brain remember and repeat the skill when we try out a new skill. One-third of participants received compliments for their own performance, one third received for another participant’s performance, and the others received no compliments. The next day, the group that received praise for their own performance performed better on the task than the others.

Another benefit of giving compliments is that it can affirm desired behaviours, which can be helpful not only in your work but also in maintaining stable friendships or romantic relationships.

Designing happiness advice 5:
Be as pleasant at home as you are with your clients.

 

It may seem like an open door but be honest, have you have ever caught yourself changing your behaviour as soon as you got home? Whereas you could be interested, caring and curious in client conversations at home, you stop asking genuine questions to find out how your life partner is doing. You probably have heard about the seven-year itch. Well, in fact, research has shown you are actually dealing with a three-year itch. After three years, we think we know everything about our partner: what he she/likes, what he she/does. But do you? You’re not together for the most part of the day, so your partner does have new experiences, thoughts and dreams, perhaps. A simple behavioural intervention is to keep asking questions. Be interested. Do you have your phone in your hand when you’re talking to an important client or your boss? No. Treat your life partner or teammate with the same respect.

Designing happiness advice 6:
Leave your devices behind.

 

This makes an easy cross-over to this behavioural intervention. If you want to build a meaningful relationship with someone, both at work and at home, make sure you are engaged. Make eye contact, turn off that phone, don’t look at your laptop when you are in a conversation. This builds trust and respect that is needed to get playful, curious and experimental. Looking to improving your sex life? Leave the communication devices out of the bedroom!

Want to shape behaviour and decisions?

Then our two-day Fundamentals Course is the perfect training for you. You will learn the latest insights from behavioural science and get easy-to-use tools and templates to apply these in practice right away!

Download the brochure

Go ahead, it’s completely free of charge!

Summary: How to design happiness

Pursuing happiness is not an abstract matter and, most of all, not a matter of heavy, introspective labour. By using behavioural science, we can carefully design a context that balances our need for freedom and security. Both essential ingredients for a happy life. Our job is to make sure that the pendulum between the two doesn’t snap. We thrive and feel alive in social connection that sparks curiosity. These are the main drivers of our happiness. We need to rely more on each other. If we can stay connected, curious and playful, all our relationships will thrive. Some very simple behavioural interventions can help us design a context that helps us do so. And remember, you cannot always be happy, but you can always be curious.

Astrid Groenewegen

BONUS: free ebook 'Six Rules for Designing your Happiness'

Especially for you we've created a free eBook 'Designing Happiness'. For you to to easily keep the insights in this blog post at hand and use them at will—a little gift from us to you.

Download ebook

Go ahead, it’s completely free of charge!

How do you do. Our name is SUE.

Do you want to learn more?

Suppose you want to learn more about how influence works. In that case, you might want to consider joining our Behavioural Design Academy, our officially accredited educational institution that already trained 2500+ people from 45+ countries in applied Behavioural Design. Or book an in-company training or one-day workshop for your team. In our top-notch training, we teach the Behavioural Design Method© and the Influence Framework©. Two powerful tools to make behavioural change happen in practice.

You can also hire SUE to help you to bring an innovative perspective on your product, service, policy or marketing. In a Behavioural Design Sprint, we help you shape choice and desired behaviours using a mix of behavioural psychology and creativity.

You can download the Behavioural Design Fundamentals Course brochure, contact us here or subscribe to our Behavioural Design Digest. This is our weekly newsletter in which we deconstruct how influence works in work, life and society.

Or maybe, you’re just curious about SUE | Behavioural Design. Here’s where you can read our backstory.

sue behavioural design

Behavioural economics 101: We’re only human.

By All, Behavioural Science Insights

Behavioural economics, maybe you have asked yourself once or twice, what’s all the fuss about? Why is everybody talking about us not being rational and capable of making good decisions all of a sudden? Is Behavioural Design something you should add to your competence gamma, and if yes, why so? This is a short introduction to behavioural economics. Meant to bring you up-to-speed with what everybody seems to be talking about right now in a simple way. In fact, I could summarise what’s in it for you in one sentence: 

If you want more control over successful outcomes, you have to understand you are dealing with humans, not econs. 

 

behavioural Design

The difference between economics and behavioural economics

Okay, I admit this sounds vague without any background. Basically, it comes down to a difference in paradigm on decision-making between economists and psychologists that gave birth to a beautiful cross-over between the two: behavioural economics (also known as behavioural psychology). What is it all about?

Let’s start with a problem we have probably all faced. Many new products, ventures, policies or innovations of any kind fail because they don’t take a deep understanding of human decision-making into account. They are inside-out, not inside-in driven. Therefore, innovations are often technological high-end, make things more cost-effective or offer different unique selling points, but they don’t start at the end. How do people choose for your offering? What psychological effects does pricing have? What’s, is the impact of social influence? Does the way we display products or frame policies affect decision-making? Which unconscious psychological forces influence our decision-making? Do those forces make objective sense?

According to an economist, the answer is:

  • Decision-making is rational.
  • People make a cost-benefit analysis.
  • The utility is a critical driver of any choice we make.

However, if you have ever had any regret after purchase or not making a purchase, you know that economist rule out one crucial factor: emotion. Emotions from within and emotions attached to what we think others think or expect from us. We are not 100% rational (or econs); we are filled with emotions and sometimes make decisions that are a far cry from most optimal for ourselves or our future.

Behavioural economics put emotions into the economic equation.

Bounded rationality: critical concept of behavioural economics

Furthermore, economists propose people always have all information at hand to make informed decisions. But is that true? First of all, we are bombarded with information all day long via multiple channels and media. No sane person can process all this rationally. Secondly, do we truly have all information to make informed decisions, for example, about our future? This is where we really have to make crucial decisions, after all. Buying an ice cream is not so hard but deciding upon your mortgage or pension plan is a whole different ballgame. Do you have all the information at hand to make a 100% rational decision here?

For example, do you know exactly your income level in 5, 10 or 15 years? Do you know what the inflation ratio will be in the same periods? Do you know what your health level will be like? Will you be able to work full-time, part-time or be out of work?

Rationality requires completeness of information, computational abilities, consistency in decision-making and cognitive skills (ability to think through a problem unemotionally). No human scores 100% on all these factors. So, what do we do when faced with a decision? We rely on short-cuts and social cues in our context and past experiences. We are only human, after all.

Taking the human, so-called bounded-rational part of us into the decision equation is what behavioural economics is all about.

Behavioural economists have researched and unlocked these human tendencies for years. Behavioural Designers take this behavioural science to design environments that help shape positive behaviours and choices of people. In fact, by using the exact science and combining it with design and creativity, we can create tangible products, services, policies, or organisations that help people make better decisions for their health, wealth and happiness.

Behavioral Design is applied behavioural economics.

Want to shape behaviour and decisions?

Then our two-day Fundamentals Course is the perfect training for you. You will learn the latest insights from behavioural science and get easy-to-use tools and templates to apply these in practice right away!

Download the brochure

Go ahead, it’s completely free of charge!

Behavioural economics: a game of choice architecture

One final note: How can we design environments that shape positive behaviours and better choices? Often, we think we need disclosure. Make sure you provide people with all the required information to help them make their informed decision. Unfortunately, that again is an econ approach to matters. Even if you help people with the information they need for a particular decision, we as humans often don’t use it. Most of the times, we know what is good for us but don’t act upon it.

For example, we all know exercising is good for us, and I guess we have all made a plan to do some form of exercise one day or the other, but most of us either started and stopped or are still procrastinating. This is known as the planning-action gap or intention-action gap. This is not new, of course, as we see in general three tools being applied to get humans into action:

  1. Restrictions (you cannot buy alcohol under the age of 18)
  2. Incentives (if your child attends school five days a week, you will get more child support)
  3. Selling (convincing people by telling them about benefits or USPs)

Behavioural Designers use another tool: choice architecture. We take humans and a deep understanding of their decision-making processes as a starting point to design a context that triggers better choices and behaviours. We do it using our SUE | Behavioural Design Method©, a highly structured, practical approach to turn human insights into strategies and ideas that influence better choices and shape positive behaviours. Basically, turning the breakthrough science of human behaviour into practical applications. What this results in, you can check out on our success stories page.

Summary: What’s behavioural economics all about

For now, I just want to wrap it up with the three things to remember when designing better choices and behaviours:

  1. You are dealing with humans, not econs
  2. Humans use cues in their context to make decisions
  3. You need to be aware of the intention-action gap

Taking these three principles as starting point already jumpstarts you in thinking as a behavioural designer. And understanding what all the fuss about behavioural economics is about (and how important it is to get a grip on success).

 

Astrid Groenewegen

 

Cover visual by Red with the Red Hat on Unsplash.

BONUS: free ebook 'Behavioural Economics: the Basics'

Especially for you we've created a free eBook 'Behavioural Economics: the basics'. For you to keep at hand, so you can start using the insights from this blog post whenever you want—it is a little gift from us to you.

Download ebook

Go ahead, it’s completely free of charge!

How do you do. Our name is SUE.

Do you want to learn more?

Suppose you want to learn more about how influence works. In that case, you might want to consider joining our Behavioural Design Academy, our officially accredited educational institution that already trained 2500+ people from 45+ countries in applied Behavioural Design. Or book an in-company training or one-day workshop for your team. In our top-notch training, we teach the Behavioural Design Method© and the Influence Framework©. Two powerful tools to make behavioural change happen in practice.

You can also hire SUE to help you to bring an innovative perspective on your product, service, policy or marketing. In a Behavioural Design Sprint, we help you shape choice and desired behaviours using a mix of behavioural psychology and creativity.

You can download the Behavioural Design Fundamentals Course brochure, contact us here or subscribe to our Behavioural Design Digest. This is our weekly newsletter in which we deconstruct how influence works in work, life and society.

Or maybe, you’re just curious about SUE | Behavioural Design. Here’s where you can read our backstory.

sue behavioural design

How to make better financial decisions: mental accounting

By All, Behavioural Science Insights

Did you know we treat money differently depending on where it comes from, where it is kept, or how we label it? In this blog post, I want to introduce you to the concept of mental accounting. A fascinating psychological phenomenon affecting many of our financial behaviours, such as the way we spent and save money or value things for which we’ve paid money. Understanding more about mental accounting could help us design better financial decisions and behaviours. And understand why some people seem to make financial decisions that don’t always seem to make sense or be in their best interest.

Mental accounting: How humans violate the economic theory

Why mental accounting is so fascinating is that it simply explains why 1 euro isn’t always 1 euro. From an economic theory perspective, this might sound foolish. The value of 1 euro and another euro on the same day is equal. We have a whole international money rate system in place that can tell you the exact worth of your euro at any precise point in time. In four digits. Also, economists believe that it shouldn’t matter if you have a 100-euro banknote or five 20-euro banknotes. It is the same amount of money, and you will spend it the same way; after all, they are exchangeable. However, psychological research has shown that humans often violate this rational approach to money. 

This works may be easiest explained by an example described in the landmark paper of Richard Thaler (1), the author of the influential book ‘Nudge‘ and a Nobel prize laureate. Let’s say you have bought a ticket to a concert and it cost you 50 euros. You made your way to the concert venue, you have dressed up nicely, you have arranged a babysitter, and if you say so yourself: you look good. You are more than ready for the evening out that you have anticipated for weeks. You get to the entrance, reach into your pocket to find out that you have seemed to have lost your ticket. After going through all the stages of grief: denial, pain, anger, depression, acceptance, finally, hope kicks in as you see the ticket booth is still open. You quickly head over to the ticket booth to find out you don’t get your ticket reimbursed but have to pay another 50-euro for a new ticket, which is luckily still available.

Okay, same scenario, but just a bit different. You want to see that same concert, again you dress up nicely, sprayed on a bit of cologne because it is a special night out, after all, the same babysitter is there to attend to your kids, and you head over to the concert venue. When you go over to the ticket booth to buy yourself a ticket, you realise the 50-euro banknote you had put in your pocket to pay for the ticket fell out. After almost panicky going through all your pockets, reality sinks in. The 50 euros are gone. Luckily, the time tickets are still available; you have to get out another 50 euros to buy the ticket. 

The interesting question is would you do so in both situations? From an economist perspective, the exact same situation: You have lost 50 euros, and you have to pay another 50 euros to attend the concert. So, there shouldn’t be a difference in the decision you make. However, Thaler’s research found that people in the first scenario are far more likely not to buy a second ticket, whereas people in the second scenario do. 

If you lose cash, it turns out you’re willing to buy a ticket. If you lose a ticket, you do not want to buy a second ticket.

Mental accounting: What is it, and how do people do it?

Mental accounting explains this story. What is mental accounting? It is the idea that people tend to label money. And the moment you label money differently, it gets spent differently. 

People tend to label money. And the moment you label money differently, it gets spent differently.

 So, how do people mentally account? Well, there are several different ways in which people put money into different psychological categories: 

  1. You could mentally account by purpose. You can allocate money to a specific product or service, or objective. This is what happened with the concert ticket. It was assigned to the concert, losing the ticket felt we had lost out on the concert in our mental account. You think you are already in the ‘red’. You are not going to make it worse by spending even more money on the same product. But allocating money to savings is another way to mentally account by purpose.
  2. You could mentally account by time. You could say I will spend X amount per week or budget that many euros each month.
  3. You could mentally account as a function of how you have earned money. If you have put in many hours of hard work to make your money, you will spend it differently if you have earned it by winning a lottery. 

Want to shape behaviour and decisions?

Then our two-day Fundamentals Course is the perfect training for you. You will learn the latest insights from behavioural science and get easy-to-use tools and templates to apply these in practice right away!

Download the brochure

Go ahead, it’s completely free of charge!

Mental accounting: The sunk cost effect

Let’s take a look at another way mental accounting influences our behaviour. Let’s get back to the concert. Let’s say you have the ticket, only this time there is a difference in how you acquired that ticket. In the first scenario, you have prepaid for it; in the second scenario, the ticket was a gift. Imagine this situation, on the evening of the concert, there is this raging blizzard storm, and the concert is a two-hour drive away from your home. Would you go to the concert in both scenarios? If you would rationally think about it, you wouldn’t go in both situations. It is much safer to snuggle up comfortably on your couch. However, most people who have prepaid the ticket will make an effort to drive a few hours through a blizzard storm to attend a concert that they (only) paid $20 for. This is caused by a phenomenon known as sunk cost fallacy

If people have spent effort, time or money on something, they will commit to the behaviour related to it; otherwise, they feel they lose out.

The moment you spend money to consume something in the future, our sunk cost effect of mental accounting kicks in. The moment you prepay, you have a deficit in your account. If you cannot consume, then you have to close your account in red. It’s like making a loss. People don’t like making losses, so they rather get what they paid for than perhaps make a better decision not to consume something. For example, if people spent 60 euros on a four-course dinner, but they are already full at the third course, most of them will eat dessert anyway. I paid for it! It feels like a loss not to go or not finish all your plates.

Another example made famous by Richard Thaler is about a man who joined a tennis club and paid a $300 membership fee for the year. After just two weeks of playing, he develops a case of tennis elbow. Despite being in pain, the man continues to play, saying: ‘I don’t want to waste the $300.’ (2)

The sunk cost effect becomes a huge motivator of consumer behaviour.

However, the intensity of the sunk cost effect isn’t always the same; it depends on how closely the cost and benefit are connected. Let me give you an example of how this works. Let’s say you love skiing and you have booked yourself a trip to the French Alps. You got yourself a four-day ski pass giving you access to all the ski lifts for the four days at the costs of € 160. You enjoyed the first three days, and then all of a sudden, the weather conditions change dramatically: Big snows, fog, heavy winds. No skiing conditions that will bring joy. The same scenario, but now you have bought four separate tickets of € 40 with which you can hit the slopes for four days. In which situation would you go out skiing on the fourth day?

This was researched (3), and it showed that people who bought the one ticket would be more prone to stay in. However, the people who had four separate tickets were far more inclined to go out and ski anyway. They felt the €40 burn in their pocket (cost) and want to experience the benefit (skiing). The all-inclusive ticket is, in fact, a form of price bundling. This leads to a ‘decoupling’ of costs and benefits. The effect being it reduces someone’s attention to sunk costs and decreasing a consumer’s likelihood of consuming a paid-for service. In other words,

Price bundling affects the decision to consume.

Now, it becomes interesting how we can use these insights to design for better choice and positive behaviour.

Mental accounting: Using it for better decision-making

Being aware of the human tendency to engage in mental accounting and being affected by the related sunk costs effect can help us develop behavioural interventions that can help people make better decisions. I want to end this blog post with an example of how this might work. 

A lot of people find it challenging to spend less money than intended. You can make this easier for them by partitioning. How does it work? Let me illustrate this with a real-life example that took place in India. In India, there are quite some low-income households with very little spare cash. Salaries are often paid in cash, making it very easy for family providers to spend it, for instance, in the bar, after a hard days’ work. Still, people also needed money for the children’s upbringing, for example. 

Those households typically earned 670 rupees per week (£6,60 or $11,20), and most families only managed to put aside 5 rupees per week (0,75%) (4). The intervention they did is divide the money into envelopes before handing it over to the beneficiary and partitioning it beforehand. It increased the savings rates to 4% (27 rupees per week)(5). What made it even more successful is putting a visual reminder on the envelopes. So, for example, a picture of their children on the envelope contained money for their upbringing.

You could also use this for yourself. We are also more reluctant to spend money we have already mentally allocated for savings. You can distribute very physically, like the envelopes, but think about labelled jars in which you divide your household money. Viviana Zelizer, a sociologist at Princeton, calls this ‘Tin Can Accounting’ (6). The more digitally savvy translation of this is the digital saving buckets many banks offer nowadays, in which you can allocate your savings to specific goals. It will be harder to withdraw money from an ‘ultimate wedding dress’ or ‘summer family holiday’ bucket than from a general savings account.

Would you like to power up your team or project with behavioural intelligence?

Feel free to contact us. We are happy to tell you more about our consultancy or academy. Helping you innovate, transform or grow levering insights from behavioural science in practice.

Contact us

No worries, no strings attached!

Summary

We, as humans, often make very emotional decisions when it comes to money. It largely depends on how we have earned, labelled or how our money is kept, how we will treat money and how we value what we bought with the money. This largely influences our behaviour. A euro isn’t always a euro, and a dollar not always a dollar. It may sound illogical, but it will make perfect sense once you understand the concepts of mental accounting and the sunk cost effect. We need to take these psychological phenomena into account if we want to help people make better decisions.

Astrid Groenewegen

 

Cover visual by Kelly Sikkema on Unsplash.

BONUS: free ebook 'Mental Accounting: How Money Works in our Mind''

Especially for you we've created a free eBook 'Mental Accounting: How Money Works in our Mind'. For you to keep at hand, so you can start using the insights from this blog post whenever you want—it is a little gift from us to you.

Download ebook

Go ahead, it’s completely free of charge!

How do you do. Our name is SUE.

Do you want to learn more?

Suppose you want to learn more about how influence works. In that case, you might want to consider joining our Behavioural Design Academy, our officially accredited educational institution that already trained 2500+ people from 45+ countries in applied Behavioural Design. Or book an in-company training or one-day workshop for your team. In our top-notch training, we teach the Behavioural Design Method© and the Influence Framework©. Two powerful tools to make behavioural change happen in practice.

You can also hire SUE to help you to bring an innovative perspective on your product, service, policy or marketing. In a Behavioural Design Sprint, we help you shape choice and desired behaviours using a mix of behavioural psychology and creativity.

You can download the Behavioural Design Fundamentals Course brochure, contact us here or subscribe to our Behavioural Design Digest. This is our weekly newsletter in which we deconstruct how influence works in work, life and society.

Or maybe, you’re just curious about SUE | Behavioural Design. Here’s where you can read our backstory.

sue behavioural design