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crisizuweaajktl-630x427Key take-away(s)

A bike manufacturer had consistently high damage rates to their bike deliveries, resulting in costly returns and replacement and unsatisfied customers.

They tested printing the image of huge flat-screen TV on the packages to reduce the damage rate.

Results

From the article, they saw a reduction in damage by around 70-80%.

Comments

The behavior change they achieved by using the picture of a flat-screen TV on the package seems to be the results of providing the delivery employees a salient clue as to the fragility of the object being delivered. They then used this clue to modify their behavior based on their set of incentives, which presumably includes some costs in case they damage deliveries too frequently.

This behavior change may be labelled a Nudge by some, but really is simply a change in the incentives set of the delivery employees.

Further analysis based on the ICH Framework (link)

Note: only sections relevant to this case study are mentioned below. Please look at the complete ICH Behavior Analysis Framework to understand how they fit in a systematic behavioral analysis.

Incentives

Risks (negative & uncertain)

  • The only (real) change here is that delivery employees consider the packages more fragile if they contains a flat-screen TV than if they contain a bike. Presumably, they think they can get away with being less careful if it’s a bike, so why wouldn’t they? They must have some incentives structure in place that reward them (or punish them) in case the damage rate of their deliveries is too high. They simply respond to a change in their perceived incentives structure, namely that they face a higher risk of damage with a TV than with a bike and they need to be careful to avoid any negative incentives.

Choice Architecture

Contextual persuasion and copy

  • It would be interesting to further test a simple (large) text specifying the package contains a TV. This would make it possible to determine how much more impact the concrete picture has over simple text, slaient in both cases.

Source

Bike manufacturer sees huge reduction in delivery damage by printing TV on the box – Cycling Weekly

Image credit: Twitter/@jasongay

2016-09-21T15:55:46+00:00

About the Author:

Julien Le Nestour
Applied behavioral scientist & international consultant — I am using the results and latest advances from the behavioral sciences—specifically behavioral economics—to help companies solve strategic issues. I am working with both start-ups and Fortune 500 groups, and across industries, though I have specific domain knowledge in banking, asset management, B2B and consumer IT, SAAS and e-commerce industries.

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