Behaviourlab Product Feature Development – first direct Case Study

Proposition Performance

By considering the behavioural outcome of product uptake alongside the perception results, we provide a comprehensive picture of the performance of each incentive strategy. 

Whilst two strategies yielded positive results from the switcher cohort, with stronger uptake and satisfactory perceptions, the inert non-switchers were hard to impress.  None of the strategies that offered the same monetary value as the control (strategies 1-5) improved uptake or perceptions. The only success came in strategies 6 and 7 which offered a substantially higher monetary reward, incurring a much greater cost. 

Overall, the new incentive strategies didn’t perform as well as expected – failing to attract the tough non-switcher audience in a cost-effective manner. 

Decision Driver

To explain the lacklustre performance, we looked at another pre-coded set of outcome metrics. The Price Comparison Website environment aTo explain the lacklustre performance, we looked at an additional outcome metric. Our Price Comparison Website table allows participants to sort products by each attribute. More people sorted by ‘interest rate’ and ‘account fee’ than ‘switching incentive’, indicating that incentive might not be as important a driver. 

Competitor Reference

Further evidence came from the performance of competitor products. Further evidence came from the performance of competitor products. The best performing competitor – Nationwide – offered the best interest rate but an inferior switching incentive. Barclays provided no switching incentive and still managed stronger uptake than first direct on the strength of its brand.