Introduction to The Behavioural Architects Prepared for KimberlyClark

Introduction to The Behavioural Architects Prepared for: Kimberly-Clark April, 2016

London, Oxford, Shanghai, Sydney Global insight, research and strategic consultancy Using the latest thinking from the behavioural sciences to help organisations better understand influence consumer behaviour Pioneering new approaches alongside reinvigorating traditional methodologies 1

We are an award winning agency We challenge ourselves to find new ways to unlock behavioural insight and drive action The MRS judges said: “We were impressed by The Behavioural Architects’ ability to communicate a difficult subject in such an engaging and compelling way. It has built a strong business model centred on a specialist area that it is passionate about, and its client testimonials show it has made behavioural economics accessible and actionable. With its strong financials and focus on challenging the norm, The Behavioural Architects stood out as a clear winner. ” 2

Some of TBA’s clients who been with us on this journey

Unlocking the power of Behavioural Science!

Why has Behavioural Research become so important over last few years In the last decade we have learnt more about our behaviour than in the last 100 years. Research by psychologists, neuroscientists, anthropologists and sociologists have allowed us to understand more than we ever have about our behaviour, judgement and decision-making Behavioural Sciences and in particular Behavioural Economics have give us new frameworks and understanding to help us make sense of behaviour and to nudge, steer and change it We are in a time which will be known as the age of behavioural enlightenment 5

Behavioural Economics is … A scientific model of human behaviour which acknowledges and embraces the inherent biases and distortions that characterise human judgement and decision making 6

What Behavioural Economics tells us about human behaviour We have different modes of thinking – System One which is intuitive, emotional and System Two which is more effortful, deliberate, reasoned Much of what influences our behaviour is subconscious / below the surface We are hugely influenced by the context around us and use anchors, shortcuts and rules of thumb to navigate and make decisions We are subject to a mass of cognitive biases, such as loss aversion, scarcity bias, the herd instinct… 7

How BE guides our approach We look to reframe a strategic question in terms of a behavioural challenge and outcome. This provides a clear focus throughout a project. Informs the questions we ask & seek to answer Changes the way we approach research design & methodology Provides frameworks & concepts that drive insight & inspire our analysis BE provides: structure, inspiring content & scientific underpinning 8 Delivers behaviourally focused & actionable outputs

TBA Behavioural Models

1. Context Model BE shows us the critical importance of context: where, when & how to look for insight Brand cues & short cuts shaping consumer behaviour Situational drivers of behaviour in-store, online etc. Triggers Barriers Target Consumer Behavioural Journey Behavioural influences in home / other consumption contexts Macro societal trends shaping social norms & behaviours 10

2. Behavioural Journey A model to identify opportunities for brands to connect with and influence behaviour Exploring: actions • thoughts • feelings • triggers • barriers Target Audience Behavioural Journey Behavioural Inflection Points 11

3. Habit Loop A model to help deconstruct habits Tells brain to go into automatic mode and which habit to use Individual carries out a behaviour Repeating the behaviour gradually builds up an automatic habit loop They experience a reward and the brain considers whether this loop is worth remembering Understanding this neurological loop can reveal how to create / reinforce habits 12

BE Frameworks & Concepts help make sense of what we see and inspire action How are anchors driving decision making? What are the habit loops? Can we piggyback existing behaviours? What are the behavioural triggers and barriers What are the key contextual influences? How is system 1 vs. system operating – what are the visual/verbal short cuts? What are the key behavioural inflection points - where we can influence? Behavioural architecture underpinned by science 13

TBA case studies

Case Study 1: Using BE to increase diabetes medicine adherence Behavioural Challenge Type 2 diabetes is a huge problem and adherence to medication is extremely low. People who are diagnosed often do little to improve their diet and lifestyle. We came up with a BE-inspired intervention for the patient’s home that would act as a salient reminder and commitment device 15

Case Study 1: Using BE to increase diabetes medicine adherence BE Inspired Solution Our intervention was a poster for the patient’s home that leveraged key BE principles including: Commitment - a promise contract signed by patients and supporters Salience - including visuals of someone close to them Feedback and Chunking - daily stickers to record and chunk goal of adherence into attainable sub-goals +45% Healthier Diet Healthier lifestyle +51% 7 out of 10 showed increase in drug compliance 16

Case Study 2: Converting heavy sweaters from standard antiperspirant to a clinical strength antiperspirant Our Challenge Our client – a global consumer brand group – was looking to drive penetration of their clinical antiperspirant brand, and reignite growth of the clinical antiperspirant segment The target consumer was someone who sweats more heavily than others and would benefit from use of a more effective product than they are currently using Primary consumer research was required to unlock the behavioural triggers and barriers for these heavy sweaters to buy and use clinical antiperspirant 17

Case Study 2: Converting heavy sweaters to clinical strength antiperspirant BE Inspired Methodology Behavioural hypotheses development session, tapping into existing internal knowledge around clinical and nonclinical antiperspirant behaviour A self-ethnographic online platform to understand the current behaviour of clinical and non-clinical users. This included behavioural disruption to help surface subconscious behavioural triggers and barriers: clinical users were asked to find and use another strong antiperspirant, and non-clinical users were given our client’s clinical antiperspirant brand to use Face-to-face in-home depth interviews with users and non users to help unlock further understanding around the potential triggers and barriers surfaced in the online phase An interactive workshop after the first market was conducted to identify key behavioural triggers and barriers and refine hypotheses before progressing with research in the other markets 18

Case Study 2: Converting heavy sweaters to clinical strength antiperspirant Key Insights and Impact We were able to isolate the different habit loops that fuel antiperspirant usage in those who sweat (or think they sweat) more than other people, ultimately unlocking behavioural footholds for the clinical category, including: • The need to make the segment more salient, both in store and in communications • The need to use verbal primes pull the segment apart from non-clinical antiperspirant • The importance of trial in revealing a genuinely superior product that not only meets the needs of heavy sweaters but also surfaces dissatisfaction around their previous behaviour and solutions • The need to tell a compelling and credible science story to give System 2 support to the benefit • The importance of understanding the multiple habit loops associated with antiperspirant usage – and the different triggers and rewards that drive these different habit loops This fed into the development of a cross-marketing strategy to reignite growth in the clinical segment 19

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