How Nudge is changing behaviours and lives
As great as Financial Education is, the ‘proof in the pudding’ is Action – how are the behaviours of the Nudge Community changing as a result of the Nudge service.
Our solution is based on Nudge Theory for which there is lots of evidence that small changes in communication and positioning can make big differences in interpretation and action.
Some of the ways that we are encouraging and facilitating action include:
Most people don’t know what they don’t know so by showing them how people like them are managing their money, we are immediately providing context, impetus and guidelines on how to save more, spend less or get more organised.
In his book, ‘Inside the Nudge Unit’, Behavioural scientist Dr David Halpern says that providing ‘People Like You’ context increases actions by 4.5%.
As an employer, you are in a unique position to help your people. You know who they are and how much they earn and probably provide the lion’s share of their finances.
Nudge uses this data to provide your people with personalised learning recommendations, benchmarks and actions. Halpern’s research suggests this increases action by 11%.
For every extra input a user is expected to complete, 15% of them will drop-out. In user terms, this is friction and a real killer for engagement and ultimately action.
Through personalisation and single sign-on (SSO), Nudge is configured to get employees to the content they need in just one click. Halpern says this accounts for 20% engagement. Our research suggests closer to 30%.
Our Nudgenomics show us that the most effective learning experience is in the context of real life events and aspirations.
At the end of each of the Nudge ‘Dreams & Goals’ workflows, employees receive a personalised Action List according to their own personal circumstances.