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Contents

About the Author

Preface

What this book is about

Who this book is for

How this book is structured

Foreword by Rory Sutherland

Introduction

Part One: How to Create a Behavioural Business

Chapter 1: Undoing Economics – A New Way of Thinking

Undoing economics

Why is behavioural science important for business?

Two systems of thinking – designing for Homer

How behavioural science changes how we think about business decision-making

Chapter 2: Nudging For Good – How Governments Use Behavioural Science

How to change an irrational behaviour: smoking

Nudging for good

Behavioural government

Nudging through technology: My QuitBuddy

Chapter 3: Test-Tube Behaviours – How to Deliver Marginal Gains Using Behavioural Science

‘Sciencing the shit’ out of problems

Learning from failure

Applying a growth mindset to business challenges

The value of testing

Chapter 4: How to Create a Behavioural Business

What to Do Now

Part Two: Delivering in Digital with Behavioural Science

Chapter 5: How Digital Got its FANGs – the Behavioural Science of Digital Business

‘Making it easy’ in digital

Making search easy: Google

Using data to leverage social proof: Netflix

Creating addictive products: Amazon

Chapter 6: Digital and the Growth Mindset – the Lean Approach to Using Behavioural Science

Testing using behavioural data

How Facebook embeds test-tube behaviours

Applying this approach

Chapter 7: The Dark (and Light) Side of Digital – a Warning About Ethically Influencing Behaviour

Are you using data ethically – and legally?

Are the outcomes of the behaviour positive or negative?

What are the implications of creating an addictive product or service?

Chapter 8: Behavioural Science in Digital

What to Do Now

Part Three: How Behavioural Science Helps Us Better Understand AI, Robots – and People

Chapter 9: Humans Versus Machines – How Behavioural Science Creates Better Products and Services for Humans, and Robots

Monkeys, cucumbers, and grapes

Irrational human behaviour or ‘bugs’?

The AI gold rush

Humans versus algorithms

The limits of AI – a question of trust

Chapter 10: Predicting Behaviour and Eliminating Noise – Behavioural Science and Automation

Prediction machines

Better predictions with behavioural science

Removing ‘noise’

The dangers of inconsistency

Technology, behaviour and data

Chapter 11: Artificial Irrationality – How Behavioural Science Helps Businesses Ethically Use AI and Automation

The importance of distinguishing between human and robot

The ethics of AI and automation

Businesses must take the ethical AI lead

How AI can help identify bias

Better training data – how behavioural science helps businesses ethically use AI and automation

Chapter 12: AI, Automation and Behavioural Science

What to Do Now

Part Four: Boosting Productivity with Behavioural Science

Chapter 13: The Rise of the Machines, and the Future of Work – Behavioural Science and a Changing Workforce

Will a robot be stealing your job?

Psychological solutions will be needed to solve economic problems

Losing your job to a robot may not be a bad thing – if it’s a bad job

Losing work does not lead to bad decisions – but financial (and time) poverty does

What behavioural science tells us about how we view work

Chapter 14: The Science of Motivation – How to Provide Good Work and Nudge the Right Behaviours from Your Teams

What is good work?

More money doesn’t transform bad work into good work

Bad work is bad for business

Creating good habits at work

Think about your environment

Normalising good behaviour and providing positive motivation

Chapter 15: Building Effective Teams Using Behavioural Science – Finding and Maintaining Success

Recruitment: the traditional home of psychology in business

Recruiting the right people for the right reasons

Assessing potential and predicting success

Test-tube recruiting

Training is not enough

Diversity is good for business

Generating psychological safety

Chapter 16: Behavioural Science in the Workplace

What to Do Now

Part Five: Behavioural Science and Your Customers

Chapter 17: The Dangers of Post-rationalisation – How Behavioural Science Demonstrates That Much Market Research is Flawed

The Oval Office and the Press Office

Telling stories in research

We are poor prediction machines

The role for traditional market research

Chapter 18: The Importance of Subconscious Associations – Understanding How People Buy, at Home and in Business

Why are subconscious associations important?

How subconscious associations influence how we buy

We are predictably irrational at work as well as at home

Homer in the city

Focus on satisficers, not maximisers

Helping customers make easy, good enough decisions

Chapter 19: Gaining Advantageous Insights – Techniques and Tools to Better Understand Customers

Recreating context

Knowing if you will be noticed

Subconscious associations – knowing what people really think

Preventing post-rationalisation and improving predictions: observing behaviour

Chapter 20: Behavioural Science and Your Customers

What to Do Now

Part Six: Behavioural Science for Better Marketing

Chapter 21: The Myth of the Rational Consumer – How Behavioural Science Explains How Marketing Works

Homer ignores most marketing

Direct (behavioural) marketing

Focus on what you should measure, not what you can measure

The marketing science heretics

Chapter 22: Brands as Heuristics – What Behavioural Science Tells Us About Brands

Consistent brand assets

Be distinctive

The importance of context: costly signalling

Consistency, distinctiveness and costly signalling: ING Direct

Chapter 23: Marketing Science – How Behavioural Science Delivers Better Marketing (and Combats Marketers’ Biases)

Mental and physical availability

Precision targeting means targeting no one – or only fellow marketers

Focus on light buyers

Physical availability

Chapter 24: Behavioural Science for Better Marketing

What to Do Now

Conclusion

Beating overconfidence – accepting what we don’t know

Innovation is driven by learning from mistakes

Science drives creativity – and vice versa

How to create a behavioural business

Acknowledgements

Publishing details