WHAT IS BEHAVIOURAL ECONOMICS?

Behavioural Economics is about carrying over the reality in the economic analysis.

Thereby the apparent irrationality of human behaviour is incorporated for the first time and by using effects and nudges is explained and influenced.

The results are lively and illuminating economic analyses based on realistic assumptions about how people behave in the real world.

WHY BEHAVIOURAL ECONOMICS?

In the traditional economic view, real life – as it really is – is generally portrayed as too simple because of its complexity, or false assumptions are made regarding the real situation.

Unrealistic or even false assumptions lead to weak and unfounded analysis of the reality and thereby to false and misleading recommendations.

This simplicity was necessary until now, due to the complexity of the reality, as there weren’t any models or tools which realistically incorporate this.

With Behavioural Economics, it’s now possible to map out this complex reality and the irrational human behaviour and to utilise it.

WHAT CAN BEHAVIOURAL ECONOMICS DO?

With Behavioural Economics (BE) the (apparent) irrational behaviour of customers becomes predictable and controllable. Even more though: We can actively use this knowledge about effects and patterns for better and successful products and services.

With BE we can:

  • Explain how certain customer behaviour occurs, what happens and why this is the case.
  • Expose patterns and explain the needs behind them.
  • Utilise patterns actively to develop more successful products and services or for improving existing ones.

HOW CAN I USE BEHAVIOURAL ECONOMICS FOR MY COMPANY? 

The knowledge about how your customers “tick” and which behavioural patterns are relevant for selecting your product in the end is decisive for the success of your products and services.

With Behavioural Economics you can:

  1. Identify which key buttons need to be pressed (or not) for success (or for failure).
  2. Systematically strengthen strengths and systematically weaken weaknesses.
  3. Speed up the decision with behavioural strategies.
  4. Create desired customer behaviour and minimise undesired behaviour.
  5. Arm your products and services with BE triggers to create ideal product and customer experiences for retaining your customers on a long-term basis.

Do you too want to gain from Behavioural Design? Then get in touch!

“I hear and I forget,
I see and I remember,
I do and I understand”

Konfuzius