Introduction to Behavioural Economics - Wednesday Wisdom
As part of today’s Wednesday Wisdom, I took the team through a number of behavioural economics principles.
As a loyalty Account Manager here at Stream Loyalty, it is vital that I understand the reasons why our clients customers engage with their brand, remain loyal whilst also proving that our programmes contribute to their customers retention/ growth of the share of wallet.
Part of this is understanding human behaviour. Why do customers engage with a brand? What can you do to change behaviour? What intrinsic reward can you include in the programme to make it desirable?
The learnings that I apply are what I have learnt from my studies into behavioural economics.
When taking the team through today’s Wednesday Wisdom, I learned that a number of my colleagues actually have been taken in by some of the behaviour principles such as the loss principles.
Loss principles state that as a customer, you have a fear of missing out. Argos utilise this very well by showing that x number of people are also looking at the same product as you which prompts you to buy the product using emotion, rather than rationalising whether this product is the correct one you would like purely so that you don’t miss out.
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