Congratulations to Professor Richard H. Thaler for winning the 2017 Nobel Memorial Prize in Economic Science!
Last week Richard H. Thaler won the Nobel Memorial Prize in Economic Science for his contributions to the behavioral economics field. Our approach to putting behavioral economics into action is largely built on Thaler’s contributions in economics, and we couldn’t be more excited to see him celebrated. Fiveworx parent company, Lirio, and our sister company in the finance space, Finworx, also rely heavily on Thaler’s work in behavioral economics to drive positive actions and better outcomes through effective communication.
Thaler’s efforts, along with research from other brilliant minds such as Daniel Kahneman and Amos Tversky, have guided how Fiveworx analyzes utilities’ customers preferences, determines their unique energy personas, and tailors communication to address their specific biases. Without the substantial body of behavioral economics research from Thaler and his peers, our highly personalized and relevant communication might not be possible.
But what does his work and behavioral science have to do with utilities? His work has proven that people do not behave the same or in the manner in which we think they will. To understand people and drive them towards real action, we must focus on the individual and find out what truly motivates people to behave in certain ways. Once we understand them, we can develop ways that will help nudge their behavior.
So, when utilities are trying to find ways to influence customers to participate in programs and build real relationships with them, they can’t just look at their account profile or their meter data, they must also look at the person behind the meter. Sending blanket communications to all customers won’t motivate everyone to action and it won’t build real relationships. To be effective, utilities need to look at the factors that influence their customers personally such as income, political affiliation, etc. to help shape communications.
What utilities need is personalized and effective communication that drives people to act. At Fiveworx, we help the utilities get to know their customers through energy personas and we send messaging that nudges customers in ways that truly motivate them. Ultimately sending the right message, to the right person, at the right time.
If Thaler has taught us anything, it’s that people don’t behave the same way. Therefore, we should not communicate the same message when trying to influence behavior.
For more information on some of the factors that drive Fiveworx’s approach to communication, check out our latest white paper: Why Personalization Matters.