Animated Insights: Research & Behavioural Insights That Changed the World
The market research and insights industry is often considered a closed and commercial domain. But in fact, many of the technological and intellectual advancements that have grown out of the sector have had a significant impact on society, economics and politics.
In this animated insights video, we investigate three such innovations. We look at the power that nudge theory has held in shaping public behaviours over the past decade, the role of NPS in coalescing corporations and governments around single measures of success, and how loyalty has come to dominate the commercial landscape.
3 Examples of Influence
The first example we investigate is a popular topic in the field of behavioural science – nudge theory. Nudge theory is widely attributed to American scientists Richard H. Thaler and Cass R. Sunstein. The work is concerned with the design of choices and accounting for the reality of human tendencies, which forced behaviour change does not. Exit intent deals, social proof and decoy pricing all borrow elements of this theory. But it has also been used widely in politics to shape public behaviours related to health, recycling, adherence to social norms and more.
We also take a closer look at how the research of customer and brand loyalty has grown from a niche topic to invaluable commercial tool. The modern idea of a brand loyalty scheme was pioneered by Tesco with the launch of the Clubcard in 1994.Within a year of its introduction, customers were shopping at Tesco over 25% more and its closest rivals more than 15% less.
Today, loyalty programmes that mine purchase behaviour data to find personal and aggregated insights are commonplace. Research into brand loyalty attracts heavy investment and firms are determined to find ways to retain customer interest. Brand concepts of loyalty are even seeping into other domains, such as politics, charity and employee retention.
Finally, we consider the impact of the Net Promoter Score (NPS). Developed in 1993, the NPS system was adopted by Bain & Company in the early 2000s. Whether the legacy of this single research question is good or bad is the subject of ferocious debate; but its influence is undeniable.
In early writing, the Net Promoter Score question was referred to as The Ultimate Question. Then, over the next two decades it became a highly valued indicator of revenue growth. Today, firms across the globe have come to rely on it as a single measure of success.
The Animated Insight Series
Our Animated Insight videos take a look under the hood of some of the less explored areas of the research industry. From the history and development of the sector, to recent trends shaping consumer behaviours - we want to present these topics in a fun, engaging and dynamic way. Because, after all, why shouldn't market research be fun?