The Behaviour Business. Richard Chataway

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14,000 people gave up smoking as a direct result of the campaign.20

      This worked spectacularly. Over 100,000 people responded to our 2008 campaign to seek NHS help to quit, and we delivered the 21% target by 2009 – a year early. And it personally inspired me to start applying these principles more regularly in my work, in both the public and private sectors.

      A few months later in 2008, the book Nudge was published. Written by Cass Sunstein, a Harvard law professor, and Richard Thaler, a University of Chicago economics professor, this showed how insights from behavioural economics could be used to encourage better behaviours, through ‘nudging’ or ‘libertarian paternalism’.

      Few books have had such a widespread impact on the practices of governments and beyond. The premise is relatively simple. Using their Spock and Homer analogy, Thaler and Sunstein demonstrated the most effective way to change behaviour is often to ‘nudge’ our desired behaviours – eating better, saving for retirement, donating our organs – because we lack the ability or willpower to achieve this due to our innate biases.

      Rational appeals to our system-2 processes will be ineffective in those situations. In the smoking example, a smoker’s Spock brain knows it is better for them to quit – but Homer stops them doing it.

      The visceral warnings on cigarette packs also qualify as a nudge, because they do not restrict the ability to buy cigarettes, but instead make it more cognitively difficult to buy (less attractive). Similarly, making cigarettes more physically difficult to buy (putting them in an unmarked locked cabinet, for example) is another nudge.

      The approach gained instant favour among government policy-makers. The advantages are clear: firstly, it does not force citizens to change behaviour, as their ability to choose is maintained and their individual liberty is upheld; secondly, changes to choice architecture are typically low-cost, low-impact interventions; and thirdly, by ‘going with the grain’ of peoples’ desired behaviour, nudges are unlikely to cause widespread objection or unrest among citizens.

      As we will explore throughout this book, these are also significant benefits to business. If nudging behaviour is easier, cheaper and reflects sentiment towards the business and brand, then, by definition, it is a more profitable approach than the alternatives. That is, a shove (forcing people into a particular action, such as removing a product from sale) or what Sunstein calls a ‘sludge’ (making it harder for people to achieve a desired outcome, such as making it difficult to unsubscribe from a service).

      In 2009, the Cabinet Office produced a report with The Institute for Government called ‘MINDSPACE’, which sought to guide policy-makers on how to use these principles. Sunstein became a key advisor to the Obama administration, and Thaler was integral to the establishment of the Behavioural Insights Team (BIT) – the new ‘nudge unit’ strategy team created under David Cameron’s government in 2010, led by David Halpern (one of the authors of ‘MINDSPACE’).

      From here, the BIT has grown to have a presence in five countries globally, and the model has been adopted in a widespread fashion elsewhere, with the creation of numerous ‘nudge units’. This growth has been driven by a scientific application of the findings of behavioural science.

      Guided by successes such as the reduction in smoking prevalence, governments have moved from a narrow application of the insights from behavioural science in (social) marketing to a much broader, scientific, outcome-based application. There is much that business can learn from this approach.

      In 2012, I moved to Australia to take up a role as strategy director at the media agency (UM) for the Australian Federal Government.

      As in the UK, smoking was the single biggest preventable cause of death in Australia. And despite a long heritage of effective behaviour change campaigns giving Australia one of the lowest smoking rates in the developed world, smokers continued to smoke despite being aware of the risks. It was clear, as in the UK, that focusing on the desired behavioural outcome (getting people to quit and stay quit) would be more effective at reducing smoking rates than simply giving rational reasons to give up – giving them the how, rather than telling them why. It would also be considerably more efficient (i.e. cheaper) than an expensive advertising campaign – an example of what Thaler calls “making it easy”, his three-word summary of Nudge.

      When I joined, my new colleagues at UM had talked to our government clients about using then-new mobile app technology to help people quit. Bringing insights into effective ways of nudging behaviour – such as the importance of social proof (i.e. seeing that others had successfully quit using the app) and saliency (i.e. providing bespoke information to each user) – we built an app with development partners The Project Factory called My QuitBuddy.

      After launch,

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